BILL ANALYSIS

H.B. 3818

By: Geren

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The Northern Trinity Groundwater Conservation District is a recently created groundwater conservation district in Tarrant County that is funded by fees assessed on the production of groundwater by non-exempt wells.  While many surrounding groundwater conservation districts are allowed to assess fees on the production of groundwater at a rate not to exceed 30 cents per thousand gallons for non-agricultural uses, interested parties contend that the Northern Trinity Groundwater Conservation District can adequately perform the duties for which it was created with a lower fee rate for such uses.  H.B. 3818 seeks to address the district funding issue by establishing provisions relating to limitations on production fees on groundwater withdrawals assessed by the district. 

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

H.B. 3818 amends the Special District Local Laws Code to prohibit a production fee assessed by the Northern Trinity Groundwater Conservation District on the amount of groundwater authorized by a permit to be withdrawn from a well or the amount of groundwater actually withdrawn from exceeding $1 for each acre-foot of groundwater permitted for or used in a year solely for agricultural use or 20 cents for each 1,000 gallons of groundwater permitted for or used in a year for any purpose other than agriculture.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.