SRC-TAG H.B. 3035 78(R)BILL ANALYSIS


Senate Research CenterH.B. 3035
By: Cook, Robby (Armbrister)
Natural Resources
5/24/2003
Committee Report (Amended)


DIGEST AND PURPOSE

Section 36.116 of the Texas Water Code, in part, authorizes groundwater
conservation districts (districts) to regulate, by rule, water well
spacing and production to minimize "draw-down" of the water table or the
reduction of artesian pressure, to control subsidence, to prevent
interference between wells, to prevent degradation of water quality, or to
prevent waste.  H.B. 3035 grants a groundwater conservation district the
power to regulate the spacing of water wells and the production of
groundwater. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Reenacts Section 36.116, Water Code, as amended by Chapters
966 and 1164, Acts of the 77th Legislature, Regular Sessions, 2001, and
amends it as follows: 

(a)  Requires a  groundwater conservation district to regulate the spacing
of water wells by taking certain actions, including limiting the amount of
water produced based on contiguous acreage.   

(d)  Requires a district, in regulating the production of groundwater, to
select a method under Subsection (a)(2) that is appropriate based on the
hydrogeological conditions of the aquifer or aquifers in the district. 

SECTION 2.  Provides that to the extent of any conflict, this Act prevails
over another Act of the 78th Legislature, Regular Session, 2003, relating
to nonsubstantive additions and corrections in enacted codes.  

SECTION 3.  Effective date: September 1, 2003.

SUMMARY OF COMMITTEE CHANGES

Committee Amendment No. 1

Amend H.B. 3035 as follows:

On page 2, line 23, strike "a district shall select a method under
Subsection (a)(2) that is appropriate based on the hydrogeological
conditions of the aquifer or aquifers in the district" and substitute "and
selecting an appropriate method under Subsection(a)(2), a district shall
select the hydrogeological conditions of the aquifer or aquifers in the
district." 
    

Committee Amendment No. 2

Amends HB 3035 by inserting new SECTIONS 2 through 13 as follows and
renumbering the remaining sections accordingly: 
 
"SECTION 2.  Section 1.03, Chapter 626, Acts of the 73rd Legislature,
Regular Session, 1993, is amended by adding Subdivision (28) to read as
follows: 
 (28) "Recharge facility" means a dam, reservoir, or other recharge
project, and associated facilities, structures, or works.  
 
 SECTION 3.  Section 1.07, Chapter 626, Acts of the 73rd Legislature,
Regular Session, 1993, is amended to read as follows: 
 Sec. 1.07.  OWNERSHIP OF UNDERGROUND WATER.  The ownership and rights of
the owner of the land and the owner's lessees and assigns, including
holders of recorded liens or other security interests in the land, in
underground water and the contract rights of any person who purchases
water for the provision of potable water to the public or for the resale
of potable water to the public for any use are recognized.  However,
action taken pursuant to this Act may not be construed as depriving or
divesting the owner or the owner's lessees and assigns, including holders
of recorded liens or other security interest in the land, of these
ownership rights or as impairing the contract rights of any person who
purchases water for the provision of potable water to the public or for
the resale of potable water to the public for any use, subject to the
rules adopted by the authority or a district exercising the powers
provided by Chapter 36 [52], Water Code.  The legislature intends that
just compensation be paid if implementation of this article causes a
taking of private property or the impairment of a contract in
contravention of the Texas or federal constitution.  
 SECTION 4.  Subsection (a), Section 1.08, Chapter 626, Acts of the 73rd
Legislature, Regular Session, 1993, is amended to read as follows: 
 (a)  The authority has all of the powers, rights, and privileges
necessary to manage, conserve, preserve, and protect the aquifer and to
increase the recharge of, and prevent the waste or pollution of water in,
the aquifer.  The authority has all of the rights, powers, privileges,
authority, functions, and duties provided by the general law of this
state, including Chapters 36, 49, and [50,] 51, [and 52, ] Water Code,
applicable to an authority created under Article XVI, Section 59, of the
Texas Constitution.  This article prevails over any provision of general
law that is in conflict or inconsistent with this article regarding the
area of the authority's jurisdiction.   
 SECTION 5.  Section 1.09, Chapter 626, Acts of the 73rd Legislature,
Regular Session, 1993, is amended by adding Subsection (i) to read as
follows: 
 (i)  To be eligible to be elected or appointed as a voting member of the
board, a person must have resided continuously in the authority
single-member election district from which the person seeks to be elected
or appointed for six months immediately preceding the following date: 
  (1)  for a candidate for election, the 60th day before the general
election date; or 
  (2)  for a candidate for appointment, the date the appointment is made.
 
 SECTION 6.  Section 1.11, Chapter 626, Acts of the 73rd Legislature,
Regular Session, 1993, is amended by amending Subsection (f) and adding
Subsection (h) to read as follows: 
 (f)  The authority may contract with a person who uses water from the
aquifer for the authority or that person to own, finance, design,
construct, operate, or [own, finance, and] maintain recharge [water
supply] facilities.  [Management fees or special fees may not be used for
purchasing or operating these facilities.  For the purpose of this
subsection, "water supply facility" includes a dam, reservoir, treatment
facility, transmission facility, or recharge project.] 
 (h)  Notwithstanding any other provision of law, the authority has no
duty, responsibility, or authority relating to the protection of water
quality.  The commission is the agency of the state with responsibility
and authority relating to the protection of water quality within the
boundaries of the authority. 
 
 SECTION 7.  Subsections (b) and (c), Section 1.14, Chapter 626, Acts of
the 73rd Legislature, Regular Session, 1993, are amended to read as
follows: 
 (b)  Except as provided by Subsections (d), (f), and (h) of this section
and Section 1.26 of this article,  beginning January 1, 2008 [for the
period ending December 31, 2007], the amount of permitted withdrawals from
the aquifer under regular permits may not exceed 450,000 acre-feet of
water for each calendar year. 
 (c)  Except as provided by Subsections (d), (f), and (h) of this section
and Section 1.26 of article, beginning January 1, 2010 [for the period
beginning January 1, 2000], the amount of permitted withdrawals from the
aquifer under regular permits may not exceed 400,000 acre-feet  of water
for each calendar year. 
 
 SECTION 8.  Section 1.16, Chapter 626, Acts of the 73rd Legislature,
Regular Session, 1993, is amended by adding Subsection (i) to read as
follows: 
 (i)  The authority shall process as administratively complete all
declarations of historical use received by the authority on or before
February 16, 1997, and shall consider any such declaration as timely
filed. 
 
 SECTION 9.  Section 1.21, Chapter 626, Acts of the 73rd Legislature,
Regular Session, 1993, is amended by amending Subsection (c) and adding
Subsections (d) and (e) to read as follows" 
 (c)  If, before [on or after] January 1, 2008, the aggregate [overall]
volume of water authorized to be withdrawn from the aquifer under regular
permits is greater than 450,000 [400,000] acre-feet a year or greater than
the adjusted amount determined under subsection (d) of Section 1.14 of
this article, not later than October 1, 2007, the board shall issue an
order to be effective on January 1, 2008, proportionately adjusting the
[maximum] authorized withdrawal amount of each regular permit [shall be
immediately reduced by an equal percentage] as is necessary to reduce
aggregate authorized withdrawals under regular permits [overall maximum
demand] to 450,000 [400,000] acre-feet a year or the adjusted amount, as
appropriate.  [The amount reduced may be restored, in whole or in part, as
other appropriate measures are implemented that maintain overall demand at
or below the appropriate amount.] 
 (d) If before January 1, 2010, the aggregate volume of water authorized
to be withdrawn from the aquifer under regular permits is greater than
400,000 acre-feet a year or greater than the adjusted amount determined
under Subsection (d) of Section 1.14 of this article, the board, not later
than October 1, 2009, shall issue an order to be effective January 1,
2010, proportionally adjusting the authorized withdrawal amount of each
regular permit as is necessary to reduce aggregate authorized withdrawals
under regular permits to 400,000 acre-feet a year or the adjusted amount,
as appropriate. 
 (e) Proportional adjustments under this section and for purposes of
satisfying the requirements of Section1.14 of this article and this
section shall be applied on the same terms and conditions to all permits
issued under Section 1.16 of this article. 
 
 SECTION 10.  Subsection (b), Section 1.28, Chapter 626, Acts of the 73rd
Legislature, Regular Session, 1993, is amended to read as follows: 
 (b)  The authority may issue revenue bonds to finance:
  (1)  the purchase of land;
  (2)  [or] the purchase, construction, or installation of facilities or
equipment, including recharge dams and associated facilities structures or
works; or 
  (3)  the retirement of permits under Sections 1.21 and 1.22 of this
article.  [The authority may not allow for any person to construct,
acquire, or own facilities for transporting groundwater out of Uvalde or
Medina County.] 
 
 SECTION 11.  Article 1, Chapter 626, Acts of the 73rd Legislature,
Regular Session, 1993, is amended by adding Section 1.331 to read as
follows: 
 Sec. 1.331.  EXEMPTION FOR FEDERAL FACILITIES; TRANSFER OF OWNERSHIP OF
APPLICATION.  (a) Federal facilities which are immune from regulation
under the doctrine of sovereign immunity, are exempt from the requirements
of this article and any rules adopted under this article. 
 (b) A person may obtain an initial regular permit based on an application
voluntarily filed by a federal facility if, before September 1, 2003, the
authority approves the transfer of ownership of the application for an
initial regular permit from the federal facility to the person seeking the
permit.  If, after the date a transfer is approved by the authority,
groundwater subject to the transfer continues to be withdrawn by the
federal facility making the transfer, the authority shall condition the
authorized withdrawal amount of the transferee's interim authorization or
initial regular permit on the reduction in the amount equal to the federal
facility withdrawals. 
 
 SECTION 12.  Subsection (c), Section 1.34, Chapter 626, Acts of the 73rd
Legislature, Regular Session, 1993, is amended to read as follows: 
 (c)  Subject to the rules of the authority, a [A] permit holder may
transfer a regular permit  or interim authorization [lease permitted water
rights, but a holder of a permit for irrigation use may not lease more
than 50 percent of the irrigation rights initially permitted.  The user's
remaining irrigation water rights must be used in accordance with the
original permit and must pass with transfer of the irrigated land]. Fifty
percent of the groundwater withdrawal amount initially permitted for
irrigation may be used only for irrigation. 
 
 SECTION 13.  Section 1.35, Chapter 626, Acts of the 73rd Legislature,
Regular Session, 1993, is amended by adding Subsection (f) to read as
follows: 
 (f) A person who transfers a permit or interim authorization to withdraw
groundwater from the San Antonio pool to a well that draws from the Uvalde
pool may not transport groundwater withdrawn under the transferred permit
or interim authorization out of the county in which the well that draws
from the Uvalde pool is located." 
Committee Amendment No. 3

 Amend H.B. 3035 (House Engrossment) as follows:      
 (1) Insert a new SECTION of the bill to read as follows:
 SECTION _____. Section 36.101, Water Code, is amended by adding
Subsection (d) to read as follows: 
 (d)  The commission has principal and exclusive authority as to the
control, regulation, or abatement of nonpoint source pollution of water or
other regulation of water quality in terms of limiting a landowner's
ability to develop or use that land in the jurisdiction of any water
district or authority with regional management and regulatory authority
over groundwater withdrawals within all or part of at least five counties. 
   (2) Insert a new SECTION of the bill to read as follows:  
 SECTION ______.  This section supersedes any other provision of this Act
to the extent of any conflict. Section 36.101(d), Water Code, as added by
this Act, supersedes any other applicable law or action taken under that
law to the extent of any conflict.  Any rule or order of an applicable
district or authority purporting to regulate water quality as described by
the change in law made by this Act to Section 36.101, Water Code, may not
be enforced regardless of whether the adoption date of the rule order is
before, on, or after the effective date of this Act.