LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
85TH LEGISLATIVE REGULAR SESSION
 
April 27, 2017

TO:
Honorable Jim Murphy, Chair, House Committee on Special Purpose Districts
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB4286 by Faircloth ( Relating to the creation of the Bolivar Management District; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.), Committee Report 1st House, Substituted

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 Bolivar Management District (District) with the powers and duties of a standard county development district under Local Government Code Chapter 375.
 
Population - The description of the proposed boundaries does not allow staff to develop precise population estimates. Based on the Galveston County Abstracts mentioned in HB 4286, staff is unable to determine a population estimate.
     
Population growth in the specific area since the 2010 census is unknown. The 2010 population estimate for Galveston County is 291,309. The Galveston County population projections approved for the 2017 State Water Plan projects the population to grow to 343,570 in 2020, 377,373 in 2030 and 403,820 in 2040.
 
Location - The Proposed district's initial boundaries are described with Galveston County Real Property Records. Staff is able to determine only the general location of the proposed district.
 
The proposed district is located adjacent to the Bolivar Peninsula in Galveston County, with all or a portion of the proposed district lying within the Intracoastal Waterway.
 
Comments on Powers/Duties Different from Similar Types of Districts:  The District is to be governed by a board of five voting directors that are appointed by the governing body of the City of Galveston (City); the bill specifies that the District may exercise powers given to the following: Improvement projects and services authorized under Chapter 375 located inside or outside the district; Road projects under section 52; conveyances and approval for road projects to a municipality, county or the state, and shall operate and maintain a road project unless the district agrees in writing with a municipality, county or the state; development corporation powers un Chapter 505 of the Local Government Code; the board may by resolution authorize the creation of a  nonprofit corporation assist in projects; enter in agreements and/or accept gift, grant or loan. The District may contract with the county or the city to provide law enforcement services in the District for a fee; Section 375.221, Local Government Code, relating to the waiver of the competitive bid requirement, applies to the district, but only for a contract that has a value greater than $15,000; the District may join and pay dues to a non-profit organization; the District may establish and provide for the administration of one or more programs to promote state or local economic development and to stimulate business and commercial activity in the District. The district may transfer or disperse money if the resolution is established by the appropriate number of district directors; Section 375.243, Local Government Code, requiring a petition for bond election, does not apply to the District; the District may impose an annual ad valorem tax on taxable property in the district for the maintenance and operation of the district and the provision of service; the board may impose an assessment for any purpose authorized in the chapter; the district may not finance a service or improvement with assessments unless written permission is filed by the board; the District may not impose an impact fee or assessment on the property, including the equipment, rights-of-way, facilities, or improvements, of:  an electric utility or a power generation company as defined by Section 31.002, Utilities Code; a gas utility as defined by Section 101.003 or 121.001, Utilities Code; a telecommunications provider as defined by Section 51.002, Utilities Code; or person who provides to the public cable television or advanced telecommunications services; the county is not required to pay a bond. The district may issue bonds or other obligations.  The county is not required to pay the districts obligations. The district may grant a tax abatement consistent with Chapter 312 of the tax code. The bill specifies that the board may vote to dissolve while the District has debt. If the vote is in favor of dissolution, the District shall remain in existence solely for the limited purpose of discharging its debts. The dissolution is effective when all debts have been discharged. Section 375.264 of the Local Government Code do not apply to this district.
 
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 4286 specifies that "the district has the powers and duties provided by the general law of the state, including Subchapter E and M of Chapter 60, Water Code, applicable to management districts created under Section 59, Article XVI, Texas Constitution"
 
Within Galveston County, 99 percent of the total water use was surface water in 2014. Fifty seven percent of all surface water use was for municipal purposes.


Source Agencies:
580 Water Development Board, 582 Commission on Environmental Quality
LBB Staff:
UP, SZ