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.