H.B. 1760 78(R) BILL ANALYSIS
H.B. 1760
By: Hilderbran
Land & Resource Management
Committee Report (Unamended)
BACKGROUND AND PURPOSE
The condemnation of land for its groundwater imposes multiple burdens on
rural areas. Not only is the economic use of the water itself removed from
the district, but the community also loses potential for other private use
or development of the land, and ad valorem taxes. Even though a landowner
can no longer produce crops when water is condemned, he or she may still
be able to raise livestock, conduct eco-tourism, hunting, or other
recreational operations, or sell the land for residential development.
Municipalities should not receive those additional economic benefits when
they condemn groundwater especially given the fact that they do not
receive those benefits when they condemn surface water.
H.B. 1760 prevents a municipality or municipal water supplier from abusing
the power of eminent domain within the boundaries of a district for the
purpose of acquiring groundwater for municipal use.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution.
ANALYSIS
SECTION 1.Amends Subsection 251.001(a), Local Government Code, to make
conforming changes required by the addition of the new Section 11.033 and
Section 36.003, Water Code.
SECTION 2.Amends Subsection 402.012(c), Local Government Code, to make
conforming changes required by the addition of the new Section 11.033 and
Section 36.003, Water Code.
SECTION 3.Amends Subsection 402.013(c), Local Government Code, to make
conforming changes required by the addition of the new Section 11.033 and
Section 36.003, Water Code.
SECTION 4.Amends Subsection 402.019(d), Local Government Code, to make
conforming changes required by the addition of the new Section 11.033 and
Section 36.003, Water Code.
SECTION 5.Amends Section 11.033, Water Code as follows:
Defines "municipal water supplier" to mean any legal entity other than a
municipality that supplies water to a municipality for municipal use and
has the right under other law to exercise the power of eminent domain).
Defines "municipality" to have the meaning assigned by Section 1.005,
Local Government Code.
Prohibits a municipality or municipal water supplier from exercising the
power of eminent domain to acquire a water supply for municipal use unless
the water supply is essential for maintaining public health or safety
(drinking, bathing, sewage disposal, fire protection, or other basic
domestic needs).
Authorizes a municipality or municipal water supplier to purchase water
for other purposes from a willing seller.
Requires a municipality or municipal water supplier to show that it cannot
meet essential domestic needs through conserving its existing supplies or
through diverting water from nonessential use in the municipality to
essential domestic use before it exercises the power of eminent domain.
Makes conforming changes.
SECTION 6.Amends Subchapter A, Chapter 36, Water Code, by adding Section
36.003, as follows:
Defines "municipal water supplier" to mean any legal entity other than a
municipality that supplies water to a municipality for municipal use and
has the right under other law to exercise the power of eminent domain).
Defines "municipality" to have the meaning assigned by Section 1.005,
Local Government Code.
Prohibits a municipality or municipal water supplier from exercising the
power of eminent domain to acquire a water supply for municipal use unless
the procedures of this section are followed and the water supply is
essential for maintaining public health or safety (drinking, bathing,
sewage disposal, fire protection, or other basic domestic needs).
Requires a municipality or municipal water supplier to show that it cannot
meet essential domestic needs through conserving its existing supplies or
through diverting water from nonessential use in the municipality to
essential domestic use before it exercises the power of eminent domain.
Prohibits a municipality or municipal water supplier from condemning land
within the boundaries of a district for the purpose of acquiring
groundwater supplies.
Authorizes a municipality or municipal water supplier to condemn the right
to capture a quantified number of acre-feet of water annually and to
acquire only as much land as is necessary for well sites, pipelines, and
other water conveyance infrastructure.
Prohibits the amount of water condemned from exceeding the production
limits set by district rules.
Authorizes a landowner whose groundwater is condemned to choose to be
compensated in annual payments instead of a lump-sum.
Mandates that if a municipality or municipal water supplier does not
produce groundwater before the 10th anniversary of the date of issuance of
the permit:
The right of capture acquired reverts to the landowner;
Any land acquired reverts to the landowner; and
Any annual payments being made cease.
Requires a municipality of municipal water supplier to furnish water to a
landowner if the amount of groundwater condemned prevents the affected
landowner from having a sufficient supply of water to meet the landowner's
domestic and livestock needs.
SECTION 7.Amends Section 67.011, Water Code, to make conforming changes
required by the addition of the new Section 11.033 and Section 36.003,
Water Code.
SECTION 8.Act prospective
SECTION 9.Effective date.
EFFECTIVE DATE
September 1, 2003, unless it receives the requisite number of votes for
immediate effect.