EDN H.B. 3655 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3655 By: Kolkhorst Natural Resources 7/18/2001 Enrolled 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. House Bill 3655 creates the Bluebonnet Groundwater Conservation District, subject to approval at a confirmation election, to manage groundwater resources in Grimes, Washington, Waller, Austin, and Walker counties. 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 House Bill 3655 creates the Bluebonnet Groundwater Conservation District in Grimes, Washington, Waller, Austin, and Walker counties, subject to approval at a confirmation election (SECTION 1). The bill provides that the district is governed by a board composed of not fewer than 8 or more than 20 directors and sets forth provisions regarding the composition and administration of the board and the appointment, qualifications, and terms of the directors. The bill sets forth provisions regarding an election to confirm the establishment of the district (SECTIONS 12-15). The bill provides that the district does not have the authority to exercise the power of eminent domain or levy taxes. The bill authorizes the board by rule to impose fees on each well for which a permit is issued by the district and which is not exempt from regulation by the district. The bill authorizes a fee to be based on the size of column pipe used by the well or on the actual, authorized or anticipated amount of water to be withdrawn from the well. The bill prohibits such fees from exceeding one dollar per acre foot payable annually for water used for agriculture or 17 cents per thousand gallons for water used for any other purpose. The bill authorizes the district to impose a reasonable fee or surcharge for an export fee on groundwater from a well that is produced for transport outside the district (SECTIONS 5 and 6). The bill sets forth provisions regarding permits for wells and exemptions from such permits (SECTIONS 7 and 10). EFFECTIVE DATE September 1, 2001.