HBA-SEP, BSM C.S.H.B. 1784 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1784 By: Cook Natural Resources 3/20/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Texas faces a difficult challenge to develop water policies that serve both state and regional interests. The Texas Constitution authorizes the creation of groundwater districts to plan, develop, and regulate the use of water. C.S.H.B. 1784 creates the Brazos Valley Groundwater Conservation District, the Post Oak Savannah Groundwater Conservation District, and the Mid-East Texas Groundwater Conservation District. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Brazos Valley Groundwater Conservation District C.S.H.B. 1784 amends law to ratify the creation of the Brazos Valley Groundwater Conservation District in Robertson and Brazos counties, subject to voter approval at a confirmation election (SECTION 2.01). The bill authorizes the district to issue bonds and notes up to $500,000 total indebtedness at any time (SECTION 2.05). The bill prohibits the district from purchasing, selling, transporting, or distributing surface water or groundwater for any purpose (SECTION 2.06). The board of directors of the district is authorized, by rule, to impose fees on each well for which a permit is issued by the district and that is not exempt from regulation by the district. The bill sets forth provisions regarding how the fee is to be based and prohibits the initial fee from exceeding 25 cents per acre foot for water used for irrigating agricultural crops or operating existing steam electric stations, or 4.25 cents per thousand gallons for water used for any other purpose (SECTION 2.07). A groundwater well drilled or operated within the district under a permit issued by the Railroad Commission of Texas is exempt from regulation by the district, however, the district is authorized to impose a pumping fee or export fee on groundwater that is used for municipal purposes or by a public utility (SECTION 2.08). The bill sets forth certain district requirements to promote regional cooperation (SECTION 2.09). The bill provides that the district is governed by a board of eight directors and sets forth provisions regarding the composition and administration of the board and the appointment, qualification, and terms of the directors (SECTIONS 2.10-2.12). The bill sets forth provisions regarding an election to confirm establishment of the district (SECTION 2.13). Post Oak Savannah Groundwater Conservation District House Bill 1784 creates the Post Oak Savannah Groundwater Conservation District in Milam and Burleson counties, subject to voter approval at a confirmation election (SECTION 3.01). The bill authorizes the board of directors of the district by rule to impose fees on each well for which a permit is issued by the district and that is not exempt from regulation by the district. The bill sets forth provisions regarding how the fee is to be based and prohibits the initial fee from exceeding $1 per acre foot for water used for irrigating agricultural crops, or 17 cents per thousand gallons for water used for any other purpose (SECTION 3.05). A groundwater well drilled or operated within the district under a permit issued by the Railroad Commission of Texas is exempt from regulation by the district, however, the district is authorized to impose a pumping fee or export fee on groundwater that is used for municipal purposes or by a public utility (SECTION 3.06). The bill sets forth certain district requirements to promote regional cooperation (SECTION 3.07). The bill provides that the district is governed by a board of 10 directors and sets forth provisions regarding the composition and administration of the board and the appointment, qualification, and terms of the directors (SECTIONS 3.08-3.10). The bill sets forth provisions regarding an election to confirm establishment of the district (SECTION 3.11). The Mid-East Texas Groundwater Conservation District House Bill 1784 creates the Mid-East Texas Groundwater Conservation District in Leon, Madison, and Freestone counties, subject to voter approval at a confirmation election (SECTION 4.01). The bill authorizes the board of directors of the district, by rule, to impose fees on each well for which a permit is issued by the district and that is not exempt from regulation by the district. The bill sets forth provisions regarding how the fee is to be based and prohibits the initial fee from exceeding $1 per acre foot for water used for irrigating agricultural crops, or 17 cents per thousand gallons for water used for any other purpose (SECTION 4.05). A groundwater well drilled or operated within the district under a permit issued by the Railroad Commission of Texas is exempt from regulation by the district, however, the district is authorized to impose a pumping fee or export fee on groundwater that is used for municipal purposes or by a public utility (SECTION 4.06). The bill sets forth certain district requirements to promote regional cooperation (SECTION 4.07). The bill provides that the district is governed by a board of nine directors and sets forth provisions regarding the composition and administration of the board and the appointment, qualification, and terms of the directors (SECTION 4.08-4.10). The bill sets forth provisions regarding an election to confirm establishment of the district (SECTION 4.11). EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1784 removes all provisions from the original relating to the Central Carrizo-Wilcox Coordinating Council. The substitute also removes provisions regarding exemptions from permit requirements, mining exemptions, and provisions for mitigation assistance from each groundwater conservation district. The substitute adds a definition of a "designated management area" (SECTIONS 2.02, 3.02, and 4.02). The substitute adds new language to exempt a groundwater well drilled or operated within the districts under a permit issued by the Railroad Commission of Texas from regulation by the districts, however, a district is authorized to impose a pumping fee or export fee on groundwater that is used for municipal purposes or by a public utility (SECTION 2.08, 3.06, and 4.06). The bill sets forth certain district requirements to promote regional cooperation (SECTION 2.09, 3.07, and 4.07). The substitute modifies the original to change the name of the Milam Burleson Groundwater Conservation District to the Post Oak Savannah Groundwater Conservation District and to change the name of the Leon, Madison, and Freestone Groundwater Conservation District to the Mid-East Texas Groundwater Conservation District.