Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Walker                                       H.B. No. 3226

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to groundwater production fees charged by groundwater

 1-3     conservation districts.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 36.205, Water Code, is amended to read as

 1-6     follows:

 1-7           Sec. 36.205.  Authority to Set Fees.  (a)  a district may set

 1-8     and assess fees based on the amount of groundwater granted in a

 1-9     permit, on the amount of groundwater actually withdrawn from a

1-10     well, or on the well capacity.  These fees must be set annually,

1-11     following notice and hearing, by resolution of the board.

1-12           (b)  A district may set fees for administrative acts of the

1-13     district, such as filing applications.  Fees set by a district may

1-14     not unreasonably exceed the cost to the district of performing the

1-15     administrative function for which the fee is charged.

1-16           [(b)]  A district may [shall] set and collect fees for all

1-17     district services provided outside the boundaries of the district.

1-18           (c)  Fees based on the amount of water permitted to be

1-19     withdrawn or actually withdrawn from a well shall not exceed:

1-20                 (1)  one dollar per acre foot for water used for the

1-21     purpose of irrigating agricultural crops; or

1-22                 (2)  17 cents per thousand gallons for water used for

1-23     any other purpose.

1-24           (d)  A district affected by Subsection (c)(2) that also may

 2-1     assess a water use fee against a specific municipality shall assess

 2-2     an amount not to exceed 60 percent of the total funding of the

 2-3     district received from water use fees assessed against that

 2-4     municipality and other nonexempt users in the district.  This

 2-5     subsection shall take precedence over all prior enactments.

 2-6           (e)  Subsection (c) does not apply to the following

 2-7     districts:

 2-8                 (1)  the Edwards Aquifer Authority;

 2-9                 (2)  the Fort Bend Subsidence District; or

2-10                 (3)  the Harris-Galveston Coastal Subsidence District.

2-11           SECTION 2.  This Act takes effect September 1, 1997.

2-12           SECTION 3.  The importance of this legislation and the

2-13     crowded condition of the calendars in both houses create an

2-14     emergency and an imperative public necessity that the

2-15     constitutional rule requiring bills to be read on three several

2-16     days in each house be suspended, and this rule is hereby suspended.