TO:	Honorable Jim Murphy, Chair, House Committee on Special Purpose Districts
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB1455 by Bohac (Relating to the creation of the Harris County Municipal Utility District No. 552; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.), As Introduced

 The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined that:
 
This bill creates Harris County Municipal Utility District No. 552 (the "District") with the powers and duties of a standard municipal utility district under Water Code Chapters 49 and 54.
 
Population -The very specific description of the proposed boundaries does not allow staff to develop precise population estimates. Based on the Original Texas Land Surveys mentioned in HB 1455, staff was unable to determine a population estimate.      

Population growth in the specific area since the 2010 census is unknown. The 2010 population estimate for areas of Harris County served by small systems or private wells ('County-Other') is 204,630. The Harris County-Other population projections approved for the 2017 State Water Plan projects the population to grow to 245,944 in 2020, 291,438 in 2030 and 311,968 in 2040.

Location - The Proposed district's initial boundaries are described with a combination of Original Texas Land Surveys, Harris County Real Property Records and metes and bounds. Due to the complexity of these boundaries for the various sub areas of the district, staff is able to determine only the general location of the proposed district.

The proposed district's area is approximately 0.23 square miles in west central Harris County, located within the city limits of Houston, near the intersection of Clay Rd and Gessner Rd.  The proposed district does not appear to overlap any existing Certificate of Convenience and Necessity (CCN) boundary.

Comments on Powers/Duties Different from Similar Types of Districts:  This bill grants the District authority for road projects; the District may exercise road powers without submitting a petition to or obtaining approval from the TCEQ, required by Section 54.234, Water Code; the District may not undertake a road project authorized by Section 7978.103, Special District Local Laws Code, unless plans and specifications of a road project have been approved by the municipality or county that will operate and maintain the road, or the Texas Transportation Commission has approved the plans and specifications of the road project, if the state will operate and maintain the road; the bill grants the District limited use of eminent domain; the District may not exercise the power of eminent domain outside the District to acquire a site or easement for road projects authorized by Section 7978.103, Special District Local Laws Code, or recreational facilities as defined by Section 49.462, Water Code; the bill specifies that at the time of issuance, the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes may not exceed one-fourth of the assessed value of real property in the District; if the bill does not receive a two-thirds vote of all members elected to each house, the District may not exercise the power of eminent domain.
 
Overlapping Services:  TCEQ does not have mapping information for water and/or wastewater providers because this function was transferred from the TCEQ to the Public Utility Commission on September 1, 2014.  As a result, TCEQ is unaware of possible overlapping service providers.
 
TCEQ's Supervision:  As with general law districts, the TCEQ will have general supervisory authority, including bond review authority and review of financial reports.
 
Water Use - HB 1455 specifies that "the district has the powers and duties provided by the general law of the state, including Chapters 49 and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution".

Within Harris County, 26 percent of the total water use was groundwater (Gulf Coast and other Aquifers) in 2014. Eighty two percent of all the groundwater pumping was for municipal use. The water source of the proposed district might pursue is unknown.