TO:	Honorable Cody Harris, Chair, House Committee on Natural Resources
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	SB1359 by Parker (Relating to the creation, powers, duties, and financing of the Wise Regional Water District; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose fees; creating a criminal offense.), As Engrossed

The Legislative Budget Board, in cooperation with the Texas Commission on Environmental Quality (TCEQ) and the Texas Water Development Board, has determined that:

This bill creates Wise Regional Water District (the “District”) with the powers and duties of a district under Water Code Chapters 49 and 54.

Population: SB 1359 states that the boundaries of the proposed district are coextensive with the boundaries of Wise County. The 2020 Census population for Wise County was 68,632. The Wise County population projections adopted for the 2027 State Water Plan project the population to be 92,085 in 2030 and 125,921 in 2040.

Location: The proposed district's area is approximately 923 square miles, and the proposed boundaries of the district are coextensive with the boundaries of Wise County.

Comments on Powers/Duties Different from Similar Types of Districts: 
Engrossed:
The engrossed version of the bill does not make any changes that impact TCEQ rules or policies.

Senate Committee Substitute:
In addition to the impact in the introduced summary below, the District may enter into contracts with a water district considered necessary in the exercise of the powers and purposes of the District.

Introduced:
The District may not levy or collect ad valorem taxes. The District may exercise a limited power of eminent domain. The District may adopt and enforce rules to protect water quality in and flowing to or from the areas in or surrounding the lakes, reservoirs, and other sources of water supply owned, operated, or controlled by the District. The District may enter into contracts with the United States, an agency of the United States, a municipality, or another public or private person considered necessary in the exercise of the powers and purposes of the District. To provide for the orderly development of water, wastewater, and other services of the District in its boundaries and to prevent unnecessary duplication of facilities, the District may create subdistricts.

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: Within Wise County, 55% of the total water use was supplied by groundwater (Trinity Aquifer), and municipal was the largest volume water use category comprising 58% of the county total water use in 2022. The water source the proposed district might pursue is unknown.