HBA-NMO H.B. 3399 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3399 By: Puente Natural Resources 4/11/1999 Introduced BACKGROUND AND PURPOSE Current law requires landowners to provide for the plugging of an abandoned or deteriorated water well on their property. The Texas Department of Licensing and Regulation's Water Well Drillers Certification Division estimates the existence of approximately 150,000 abandoned water wells in this state. Additionally, abandoned and deteriorated water wells contribute to groundwater contamination. However, no mechanism exists to fund the plugging of abandoned water wells located on land for which the owner cannot be located or does not have sufficient funds. H.B. 3399 creates a water well plugging account administered by the Texas Department of Licensing and Regulation (department) to fund the plugging of abandoned or deteriorated water wells for which the landowner cannot be located or does not have sufficient funds . This bill requires the department to assess a fee on each new well drilled to fund the account. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Department of Licensing and Regulation in SECTION 2 (Section 32.0175, Water Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Reenacts and amends Section 32.014(b), Water Code, as amended by Chapters 333 and 1077, Acts of the 75th Legislature, Regular Session, 1997, as follows: (b) Requires that all money collected by the Texas Department of Licensing and Regulation (department) under this chapter (Water Well Drillers), except as provided by Section 32.0175, be deposited to the credit of the water well drillers fund account in the general revenue fund and authorizes its use only to administer this chapter. Requires the department to allocate not more than 20 percent of the money in the account to cover administrative costs of the department. SECTION 2. Amends Chapter 32, Water Code, by adding Section 32.0175, as follows: Sec. 32.0175. WATER WELL PLUGGING ACCOUNT. (a) Requires the department to assess a fee for each new well drilled in an amount determined by department rule for the purpose of plugging abandoned or deteriorated wells. (b) Requires the department to deposit a fee assessed under this section to the credit of the water well plugging account. Provides that the water well plugging account is an account in the general revenue fund and authorizes that it be appropriated to the department only for the purpose of plugging abandoned or deteriorated wells. Provides that the account is exempt from the application of Section 403.095 (Use of Dedicated Revenue), Government Code. (c) Authorizes the department to use money in the account to plug an abandoned or deteriorated well only if the department determines that the landowner or other person possessing the well cannot be located or does not have sufficient assets to plug the well as determined by criteria established by department rule. SECTION 3. Emergency clause. Effective date: upon passage.