BILL ANALYSIS
H.B. 2294
By: Yost
3-27-95
Committee Report (Amended)
BACKGROUND
Title 2 of the Water Code (State Water Administration) contains
several chapters governing the administration of water in Texas.
Chapter 52, Water Code, (which is located in Title 4 -- General Law
Districts) governs the regulation of groundwater. Unlike surface
water, which is owned by the state, groundwater is owned by the
land-owner. Therefore, groundwater is not subject to appropriation
by the Texas Natural Resource Conservation Commission (TNRCC) under
Title 2, Water Code. Some parts of the state have experienced
localized problems with their groundwater supply, usually caused by
excessive groundwater production. Subchapters B and C of Chapter
52 require the TNRCC to study these areas and either designate
groundwater management areas or critical areas. In many of these
areas the state has created local water districts to regulate the
spacing of wells or the production of groundwater. These local
districts are the only method of regulating groundwater in Texas.
As local, regulatory agencies, these districts operate differently
than other water districts that primarily provide wholesale and
retail water supplies. These differences lead to confusion when
groundwater districts must meet requirements designed for water
supply districts. It is believed that separating Chapter 52 into
two chapters located in the Water Administration title of the Water
Code, will greatly reduce this confusion and allow groundwater
districts to operate more efficiently. One of the chapters should
govern the TNRCC duties to study groundwater issues, and the other
should govern the creation, administration, operation, and duties
of groundwater districts.
PURPOSE
This bill consolidates the provisions governing groundwater
districts into a new Chapter 36, Water Code. This bill also
creates a new Chapter 35, Water Code, governing the duties of state
agencies toward designation of groundwater management areas and
critical areas.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the TNRCC at Section
2, page 5, lines 11-14, of the bill (subsection (d) of proposed
Section 35.004 of the Water Code).
Rulemaking authority is expressly granted to the TNRCC at Section
2, page 9, lines 4-9, of the bill (subsection (a) of proposed
Section 35.008 of the Water Code).
SECTION BY SECTION ANALYSIS
SECTION 1. Amends the caption of Title 2, Water Code.
SECTION 2. Amends Title 2, Water Code, by adding Subtitle E,
Groundwater Management, as follows:
SUBTITLE E. GROUNDWATER MANAGEMENT
CHAPTER 35. GROUNDWATER STUDIES
Sec. 35.001. PURPOSE
Sec. 35.002. DEFINITIONS
Sec. 35.003. SURFACE WATER LAWS NOT APPLICABLE
Sec. 35.004. DESIGNATION OF MANAGEMENT AREAS
Sec. 35.005. PETITION TO DESIGNATE A GROUNDWATER MANAGEMENT
AREA
Sec. 35.006. NOTICE FOR DESIGNATION OF MANAGEMENT AREA
Sec. 35.007. IDENTIFYING, DESIGNATING AND DELINEATING
CRITICAL AREAS
Sec. 35.008. PROCEDURES FOR DESIGNATION OF CRITICAL AREAS
Sec. 35.009. NOTICE AND HEARING
Sec. 35.010. CONSIDERATION OF THE CREATION OF A DISTRICT OR
ADDITION OF LAND IN A CRITICAL AREA TO AN EXISTING DISTRICT
Sec. 35.011. NOTICE OF HEARING TO CREATE DISTRICT OR ADD
CRITICAL AREA TO EXISTING DISTRICT
Sec. 35.012. COMMISSION ORDER
Sec. 35.013. ADDING CRITICAL AREA TO EXISTING DISTRICT
Sec. 35.014. COSTS OF ELECTIONS
Sec. 35.015. STATE ASSISTANCE
Sec. 35.016. EXEMPTION FROM CHAPTER
Sec. 35.017. STATE-OWNED LAND
Sec. 35.018. JOINT PLANNING IN A MANAGEMENT AREA
CHAPTER 36. GROUNDWATER CONSERVATION DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 36.001. DEFINITIONS
Sec. 36.002. OWNERSHIP OF GROUNDWATER
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 36.011. METHOD OF CREATING DISTRICT
Sec. 36.012. COMPOSITION OF DISTRICT
Sec. 36.013. PETITION TO CREATE DISTRICT
Sec. 36.014. NOTICE AND HEARING ON DISTRICT CREATION
Sec. 36.015. FINDINGS
Sec. 36.016. APPOINTMENT OF TEMPORARY DIRECTORS
Sec. 36.017. CONFIRMATION AND DIRECTORS ELECTION
Sec. 36.018. INCLUSION OF MUNICIPALITY
Sec. 36.019. CONFIRMATION ELECTION IN DISTRICT INCLUDING
LAND IN MORE THAN ONE COUNTY
Sec. 36.020. BOND AND TAX PROPOSAL
Sec. 36.021. NOTIFICATION OF COUNTY CLERK
SUBCHAPTER C. ADMINISTRATION
Sec. 36.051. BOARD OF DIRECTORS
Sec. 36.052. OTHER LAWS NOT APPLICABLE
Sec. 36.053. QUORUM
Sec. 36.054. OFFICERS
Sec. 36.055. SWORN STATEMENT, BOND AND OATH OF OFFICE
Sec. 36.056. GENERAL MANAGER
Sec. 36.057. MANAGEMENT OF DISTRICT
Sec. 36.058. CONFLICTS OF INTEREST
Sec. 36.059. GENERAL ELECTIONS
Sec. 36.060. FEES OF OFFICE; REIMBURSEMENT
Sec. 36.061. POLICIES
Sec. 36.062. OFFICES AND MEETING PLACES
Sec. 36.063. NOTICE OF MEETINGS
Sec. 36.064. MEETINGS
Sec. 36.065. RECORDS
Sec. 36.066. SUITS
Sec. 36.067. CONTRACTS
Sec. 36.068. EMPLOYEE BENEFITS
SUBCHAPTER D. POWERS AND DUTIES
Sec. 36.101. RULE-MAKING POWER
Sec. 36.102. ENFORCEMENT OF RULES
Sec. 36.103. IMPROVEMENTS AND FACILITIES
Sec. 36.104. PURCHASE, SALE, TRANSPORTATION, AND
DISTRIBUTION OF WATER
Sec. 36.105. EMINENT DOMAIN
Sec. 36.106. ENGINEERING SURVEYS
Sec. 36.107. PLANNING
Sec. 36.108. RESEARCH PROJECTS
Sec. 36.109. COLLECTION OF INFORMATION
Sec. 36.110. PUBLICATION OF PLANS AND INFORMATION
Sec. 36.111. RECORDS AND REPORTS
Sec. 36.112. DRILLERS' LOGS
Sec. 36.113. PERMITS FOR WELLS
Sec. 36.114. PERMIT: APPLICATION AND HEARING
Sec. 36.115. DRILLING OR ALTERING A WELL WITHOUT PERMIT
Sec. 36.116. REGULATION OF SPACING AND PRODUCTION
Sec. 36.117. EXCEPTIONS; LIMITATIONS
Sec. 36.118. OPEN OR UNCOVERED WELLS
Sec. 36.119. ILLEGAL DRILLING AND OPERATION OF WELL;
CITIZEN SUIT
Sec. 36.120. INFORMATION
SUBCHAPTER E. DISTRICT FINANCES
Sec. 36.151. EXPENDITURES
Sec. 36.152. FISCAL YEAR
Sec. 36.153. ANNUAL AUDIT
Sec. 36.154. ANNUAL BUDGET
Sec. 36.155. DEPOSITORY
Sec. 36.156. INVESTMENTS
Sec. 36.157. REPAYMENT OF ORGANIZATIONAL EXPENSES
Sec. 36.158. GRANTS
SUBCHAPTER F. BONDS AND NOTES
Sec. 36.171. ISSUANCE OF BONDS AND NOTES
Sec. 36.172. MANNER OF REPAYMENT OF BONDS AND NOTES
Sec. 36.173. ADDITIONAL SECURITY FOR BONDS AND NOTES
Sec. 36.174. FORM OF BONDS OR NOTES
Sec. 36.175. PROVISIONS OF BONDS AND NOTES
Sec. 36.176. REFUNDING BONDS
Sec. 36.177. BONDS AND NOTES AS INVESTMENTS
Sec. 36.178. BONDS AND NOTES AS SECURITY FOR DEPOSITS
Sec. 36.179. TAX STATUS OF BONDS AND NOTES
Sec. 36.180. ELECTION
Sec. 36.181. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
COMPTROLLER
SUBCHAPTER G. DISTRICT REVENUES
Sec. 36.201. LEVY OF TAXES
Sec. 36.202. BOARD AUTHORITY
Sec. 36.203. TAX RATE
Sec. 36.204. TAX APPRAISAL, ASSESSMENT AND COLLECTION
Sec. 36.205. AUTHORITY TO SET FEES
SUBCHAPTER H. JUDICIAL REVIEW
Sec. 36.251. SUIT AGAINST DISTRICT
Sec. 36.252. SUIT TO BE EXPEDITED
Sec. 36.253. TRIAL OF SUIT
Sec. 36.254. SUBCHAPTER CUMULATIVE
SUBCHAPTER I. DISSOLUTION OF DISTRICT
Sec. 36.301. DISSOLUTION
Sec. 36.302. NOTICE OF HEARING
Sec. 36.303. INVESTIGATION
Sec. 36.304. ORDER OF DISSOLUTION
Sec. 36.305. CERTIFIED COPY OF ORDER
Sec. 36.306. APPEALS
Sec. 36.307. ASSETS ESCHEAT TO STATE
SUBCHAPTER J. ADDING TERRITORY TO DISTRICT
Sec. 36.321. ADDING LAND BY PETITION OF LANDOWNER
Sec. 36.322. ASSUMPTION OF BONDS
Sec. 36.323. HEARING AND DETERMINATION OF PETITION
Sec. 36.324. RECORDING PETITION
Sec. 36.325. ADDING CERTAIN TERRITORY BY PETITION
Sec. 36.326. HEARING ON PETITION
Sec. 36.327. RESOLUTION TO ADD TERRITORY
Sec. 36.328. ELECTION TO RATIFY ANNEXATION OF LAND
Sec. 36.329. NOTICE AND PROCEDURE OF ELECTION
Sec. 36.330. LIABILITY OF ADDED TERRITORY
Sec. 36.331. ANNEXATION OF NONCONTIGUOUS TERRITORY
SUBCHAPTER K. CONSOLIDATION OF DISTRICTS
Sec. 36.351. CONSOLIDATION OF DISTRICTS
Sec. 36.352. TERMS AND CONDITIONS OF CONSOLIDATION
Sec. 36.353. NOTICE AND HEARING ON CONSOLIDATION
Sec. 36.354. ELECTIONS TO APPROVE CONSOLIDATION
Sec. 36.355. GOVERNING CONSOLIDATED DISTRICTS
Sec. 36.356. DEBTS OF ORIGINAL DISTRICTS
Sec. 36.357. ASSESSMENT AND COLLECTION OF TAXES
Sec. 36.358. VOTED BUT UNISSUED BONDS
Sec. 36.359. FILING OF ORDER WITH COUNTY CLERK AND
EXECUTIVE DIRECTOR
SECTION 3. Amends Section 151.003(b), Water Code to make
conforming amendments.
SECTION 4. Amends Section 151.005(a), Water Code, to make
conforming amendments.
SECTION 5. Amends Section 151.005(c), Water Code, to make
conforming amendments.
SECTION 6. Repeals Chapter 52, Water Code.
SECTION 7. Emergency Clause.
EXPLANATION OF AMENDMENTS
Committee Amendment No.1:
Sections "(1)" and "(3)" of Committee Amendment No.1 allow the
commission to designate a separate groundwater reservoir even
though there may be a "measurable" effect of withdrawing water
from a separate subdivision. Current technology may be able to
detect measurable effects that do not rise to the level of an
appreciable effect.
Sections "(2)" and "(4)" of Committee Amendment No.1 move the
section regarding joint management plans from the proposed
Chapter 35 to the proposed Chapter 36. Although this section
addresses commission action when districts disagree over the
management of an aquifer, because it more directly addresses the
district's requirement to adopt a plan, that section should be in
Chapter 36. Also, because proposed Section 35.016 exempts active
districts from the requirements of Chapter 35, the section on
joint planning would not apply to any active district if left in
Chapter 35.
Section "(5)" makes it clear that the district may perform
surveys without being required to engage a professional
registered engineer for that purpose. Most groundwater surveys
are conducted by groundwater hydrologists, not engineers.
Committee Amendment No.2:
Section "(1)" of Committee Amendment No.2 removes the definition
of "waste" from the proposed Chapter 35, Water Code. That
chapter as drafted never uses the term "waste" nor references the
usage of that term in any other chapter. The definition is
therefore unnecessary.
Sections "(2)", "(8)", "(10)", "(15)", "(16)", "(17)", and "(19)"
are all drafting corrections.
Sections "(3)", "(5)", and "(6)", all replace cumbersome language
with the term "political subdivision". This does not change the
affect or intent of the legislation, it merely utilizes an
already defined term.
Section "(4)" allows the ballot proposition to only include
language relating to district debt if the district actually has
any debt. The current version requires the ballot proposition to
include the debt approval even if there is no debt to approve.
Sections "(7)" removes the reference to an undefined term and
replaces it with a specific statutory reference in the proposed
Chapter 36.
Section "(9)" removes cumbersome and repetitive language.
Section "(11)" substitutes the term "storage" for "microfilming"
to clarify that any form of electronic or physical storage is
governed by Chapter 201, Local Government Code.
Section "(12)" changes the benefits section to simply reference
the retirement provisions in Chapter 810, Government Code.
Section "(13)" allows districts to provide copies of rules in any
format requested, and removes the requirement to publish the
rules in a book format.
Section "(14)" inserts a new section 36.121 that is identical to
the current law found at Section 52.1511. This section was added
to Chapter 52 during the 72nd Legislature and has very limited
effect. No attempt was made to improve the cumbersome language
or grammatical errors in this section.
Section "(18)" clarifies that the administrative remedies before
the district must be exhausted before a declaratory action or any
other suit may be filed against a groundwater district.
SUMMARY OF COMMITTEE ACTION
H.B.2294 was considered by the committee in a public hearing on
March 27, 1995.
The following persons testified in favor of the bill:
Mr. C.E. Williams, representing Panhandle Ground Water
Conservation District #3;
Mr. Allan Lange, representing himself and Lipan-Kickapoo
Water Conservation District;
Mr. Lee Arrington, representing himself and South Plains
Underground Water Conservation District;
Mr. Richard Bowers, representing himself and North Plains
Ground Water Conservation District #2;
Mr. Scott Holland, representing Irion County Water
Conservation District;
Mr. Dennis Clark, representing Emerald Underground Water
Conservation District;
Mr. Gregory M. Ellis, General Counsel, Harris-Galveston
Coastal Subsidence District.
The following persons testified against the bill: None (0).
The following persons testified on the bill: None (0).
The committee considered two (2) amendments to the bill. Each of
the two (2) amendments was adopted without objection.
The bill was reported favorably as amended, with the
recommendation that it do pass and be printed, by a record vote
of 8 ayes, 0 nays, 0 pnv, and 1 absent.