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 creation of the Bolivar Management District; 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 Bolivar Management District (District) with the powers and duties of a standard county development district under Local Government Code Chapter 383.

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: a corporation under Chapter 505, Local Government Code; a housing finance corporation under Chapter 394, Local Government Code; an entity described in Chapters 284 and 441, Transportation Code; and a district governed by Subchapters E and M, Chapter 60, Water Code, and Section 61.116, Water Code; the board by resolution may authorize the creation of a nonprofit corporation to assist and act for the District in implementing a project or providing a service authorized by this chapter.
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 an organization that: enjoys tax-exempt status under Section 501(c)(3), (4), or (6), Internal Revenue Code of 1986, as amended; and performs a service or provides an activity consistent with the furtherance of a District purpose; 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; Section 375.243, Local Government Code, requiring a petition for bond election, does not apply to the District; 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, note, or other obligation of the District.
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.
 
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.