The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined that:
 
The bill creates the Harrison County Groundwater Conservation District (District) in Harrison County with the powers and duties of Water Code, Chapter 36 related to general law for groundwater conservation districts (GCDs). The purpose of the District is to benefit property by providing for the conservation, preservation, protection, recharging, and prevention of waste of groundwater, and to control subsidence caused by the withdrawal of groundwater under powers conferred by Article XVI, Section 59 of the Texas Constitution. Creation of the District is subject to a confirmation election.

The bill adds provisions to require the District to add at least one other county by September 1, 2013, and for the TCEQ to dissolve the District on that date if the District had not added another county.

1)  Population- The 2000 Census population of Harrison County was 62,110.  The Texas State Data Center estimates the January 1, 2008 population to be 64,285 people.  The 2020 projected population is 72,390.

2)  Location- The boundaries of the proposed district are coextensive with the boundaries of Harrison County.  Harrison County is located in the northeast corner of the state.  Cities included in Harrison County are Marshall, Hallsville, Waskom, Nesbitt, and Scottsville.
 
3)  Comments on Powers/Duties Different from Similar Types of Districts – Unlike general law GCDs, the bill provides that the District has county-appointed temporary directors to represent varied water user groups and then be governed by five directors elected by the commissioners precinct method. Directors may not receive fees of office that exceed $50 a day or $3,000 a year. The District may not purchase, sell, transport or distribute surface water or groundwater for any purpose, or exercise the power of eminent domain. The District is subject to more stringent requirements for cooperation with other GCDs within the same groundwater management area. The District’s initial well production fees may not exceed $0.25 per acre-foot of water used for agricultural irrigation and $0.0425 per 1,000 gallons for water used for any other purposes and the fees may be increased at a cumulative rate not to exceed three percent per year. The District may not levy a tax that exceeds $0.015 per $100 assessed valuation and may not exceed bond or note indebtedness of $500,000. The District would be dissolved on December 31, 2014, if it is not confirmed by this date, and temporary provisions in Chapter 8819, Subchapter A-1 would expire on September 1, 2014.
 
4)  Overlapping Services – There are no other GCDs in Harrison County. GCD functions do not conflict with services provided by other types of water districts or utilities.
 
5)  TCEQ’s Supervision – As with general law GCDs, the TCEQ will have general supervisory authority, including bond review authority and authority as it is related to the District’s development and implementation of a management plan; the District would not have to comply with TCEQ financial auditing requirements. 

6)  Water Use- Within Harrison County, 8.17 percent of the total water use was groundwater in the year 2004.  Around 89 percent of the groundwater use was for municipal use.  Groundwater is primarily pumped from the Carrizo-Wilcox aquifer (94 percent), while the rest (6 percent) is pumped from the Queen City aquifer.