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TEXAS COMMISSION on ENVIRONMENTAL QUALITY Protecting Texas by Reducing and Preventing Pollution

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TEXAS COMMISSION on ENVIRONMENTAL QUALITY Protecting Texas by Reducing and Preventing Pollution Jon Niermann, Chairman Emily Lindley, Commissioner Bobby Janecka, Commissioner Toby Baker, Executive Director TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Protecting Texas by Reducing and Preventing Pollution May 6, 2021 The Honorable Dade Phelan Texas House of Representatives Capitol Station PO Box 2910 Austin, Texas 78768-2910 Re: Responsibility of the Texas Commission on Environmental Quality (TCEQ) Pursuant to Article XVI, Section 59(d), Texas Constitution House Bill (HB) 4638, as Filed by Representative John Bucy III - Relating to the creation of the City of Leander Municipal Management District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes. Dear Speaker Phelan: The following comments are provided pursuant to the Constitutional requirements referenced above. Under those requirements, the TCEQ must submit, to the Governor, Lieutenant Governor and Speaker of the House of Representatives, the TCEQ's recommendations on specific legislation affecting water districts. We recommend that these comments be considered in the evaluation of the proposed legislation. Sincerely, Cari-Michel La Caille, Director Water Supply Division cc: Honorable Philip Cortez, Chairman, House Urban Affairs Committee Representative John Bucy III, Texas House of Representatives Enclosure HB 4638, as Filed by Representative John Bucy, III Texas Commission on Environmental Quality's Comments 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 City of Leander Municipal Management District No. 1 (District) with the powers and duties of a standard municipal management district under Local Government Code Chapter 375. Comments on Powers/Duties Different from Similar Types of Districts: The District may provide for water, wastewater, drainage, road, and recreational facilities for the District and promote and secure expanded and improved transportation and pedestrian facilities and systems. A director may not receive compensation for service on the board. A director is entitled to reimbursement for necessary and reasonable expenses incurred in carrying out the duties and responsibilities of the board. The total amount of expenses for each director in one year may not exceed the amount approved by the board. The City of Leander (City), the owner of the majority of the land in the district, and any other entities the City determines are necessary to the agreement may execute a development agreement if approved by the City. The board may not take any action or exercise any power granted under this chapter other than to hold an initial organizational meeting until the development agreement is approved by the City and executed by the parties to the agreement. A District improvement project or service authorized under this Chapter or 375, Local Government Code must comply with any City zoning and subdivision requirements and city codes and ordinances. The District may not provide, conduct, or authorize an improvement project on any street, highway, right-of-way, or easement owned or controlled by the City unless the governing body of the City by resolution consents to the improvement. An improvement project may be located in the District or in an area outside the District if the project is for the purpose of extending a public infrastructure improvement beyond the District’s boundaries to a logical terminus. The District may undertake an improvement project or service that confers a special benefit on a definable area in the District and levy and collect a special assessment on benefited property in the District in accordance with Chapter 372, Local Government Code or Chapter 375, Local Government Code. The District may contract to provide law enforcement services in the District for a fee. The bill allows the District to create economic development programs and exercise economic development powers under Chapter 380, Local Government Code. The District may acquire, lease, construct, develop, own, operate, and maintain parking facilities. The bill specifies that the District may add or exclude land as provided by Subchapter J, Chapter 49, Water Code. The District may add or remove territory only if the governing body of the City by ordinance or resolution consents to the addition or removal. The District may not impose an impact fee, assessment, tax, or other charge on property owned by the City, the county, or other political subdivision or on property exempted under this section except as provided by Subchapter H, Chapter 375, Local Government Code. The District may not exercise the power of eminent domain. The District may impose an assessment to pay the cost of burying, relocating, or removing electrical power lines, telephone lines, cable or fiber-optic lines, or any other type of electrical or optical line, removing poles and any elevated lines using the poles, and reconnecting the lines to the buildings or other improvements to which the lines were connected. The assessment may not be imposed on the property, including the equipment, rights-of-way, easements, facilities, or improvements, of a telecommunications provider as defined by Section 51.002, Utilities Code, or a cable service provider or video service provider as defined by Section 66.002, Utilities Code, unless the property is used as office space. The District may acquire, operate, or charge fees for the use of the District conduits for another person’s telecommunications network, fiber-optic cable, or electronic transmission line, or for any other type of transmission line or supporting facility. The District may not require a person to use a District conduit. The bill specifies that Section 375.208, Local Government Code, which requires TCEQ approval of bonds to provide water, sewage, or drainage facilities, does not apply to bonds issued under this section. The City may dissolve the District in the manner provided by Section 375.263, Local Government Code, only if the City also complies with any dissolution procedures in the development agreement. In the case of a conflict between Section 375.263, Local Government Code, and the development agreement, the development agreement controls. 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. LETTER OF TRANSMITTAL HOUSE OF REPRESENTATIVES STATE OF TEXAS HB 4638 Bill Number TO: The Honorable Governor of Texas SUBJECT: A Bill Relating to a Conservation and Reclamation District This is to transmit to you and the Texas Commission on Environmental Quality copies of a bill relating to a conservation and reclamation district and copies of the notice of intention to introduce the bill. One copy is for your files and one for you to forward to the Texas Commission on Environmental Quality, under Section 59(d), Article XVI, Constitution of the State of Texas. 4/15/2021 Date transmitted to Chief Clerk Governor's Office House of Representatives TO: Texas Commission on Environmental Quality SUBJECT: A Bill Relating to a Conservation and Reclamation District This is to forward to you a copy of a bill relating to conservation and reclamation district and a copy of the notice of intention to introduce the bill. April 16, 2021 Date transmitted to Governor Texas Commission on Environmental Quality TO: The Honorable Speaker of the House The Honorable President of the Senate The Honorable Governor of Texas SUBJECT: A Bill Relating to a Conservation and Reclamation District Attached are recommendations of the Texas Commission on Environmental Quality in compliance with Section 59(d), Article XVI, Constitution of the State of Texas. Texas Commission on Environmental Quality 87R HB 04638.
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