HBA-LJP C.S.H.B. 3543 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3543 By: Hilderbran Natural Resources 4/10/2001 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 conservation districts to plan, develop, and regulate the use of water. The Headwaters Underground Water Conservation District was created by the Texas Legislature in 1991 to oversee the groundwater issues in Kerr County. C.S.H.B. 3543 renames the Headwaters Underground Water Conservation District as the Headwaters Groundwater Conservation District (district) and provides for other modifications to conform the district with other groundwater districts. 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 C.S.H.B. 3543 amends law to modify the name of the Headwaters Underground Water Conservation District to the Headwaters Groundwater Conservation District (district). The bill authorizes, rather than requires, the district to contract with Kerr County or certain river authorities for services available from the county or river authority. The bill provides that the district is governed by a board of directors and sets forth provisions regarding the election, residency, qualifications, and terms of the directors. The bill provides that the board is composed of five directors, one from each of the county commissioners precincts and one from the entire district. The bill sets forth provisions regarding the implementation of this Act. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3543 modifies the original to remove provisions regarding the authorization of the Headwaters Groundwater Conservation District (district) to charge a production fee for water transported out of the district and the requirement of the attorney general to represent the district in a state court or any court of the United States. The substitute restores current law which prohibits the district from selling, donating, leasing, or otherwise granting rights to underground water located in the district. The substitute provides that to be eligible to serve on the board of directors of the district, a person must have been a resident of the district for at least one year before the date the person takes office as a director.