BILL ANALYSIS

C.S.H.B. 3903

By: Isaac

Natural Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Interested parties contend that legislation is needed relating to the Hays Trinity Groundwater Conservation District in regard to director elections, new well construction approval, and fees charged for new well construction and water utility service connections. C.S.H.B. 3903 seeks to address these issues.

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

C.S.H.B. 3903 amends the Special District Local Laws Code to revise and establish provisions applicable to the Hays Trinity Groundwater Conservation District. The bill increases from two years to four years the term of a district director, moves the directors' election from the uniform election date in May of each year to the uniform election date in November of each even-numbered year, and adjusts the length of terms of certain directors as necessary to provide for the transition of directors' terms from staggered two-year terms to staggered four-year terms.

C.S.H.B. 3903 removes the district's general authority to require a permit for the construction of a new well completed after September 1, 2001, and to charge and collect a construction permit fee of up to $300 for a well for which the district requires such a permit. The bill instead requires a landowner to notify the district before the construction of a new well that is to be completed after September 1, 2013, and authorizes the district to charge and collect a new well construction fee of up to $1,000 for a new well and to charge and collect a permit renewal application fee of up to $400. The bill increases from $300 to $1,000 the maximum amount of the water utility service connection fee that the district is authorized to levy and collect for each new water service connection and makes the higher cap applicable to each new water service connection made after September 1, 2013.

C.S.H.B. 3903 removes an exemption from the requirements of statutory provisions relating to groundwater conservation districts previously granted to certain wells and specifies that those wells' exemption from regulation, permitting, or metering by the Hays Trinity Groundwater Conservation District applies to groundwater withdrawals from those exempt wells. The bill clarifies that the exemption for groundwater withdrawals from wells producing less than 25,000 gallons per day for domestic use by a single private residential household applies to withdrawals from wells that are incapable of producing more than that volume of water gallons per day. The bill removes a provision prohibiting the district from requiring a permit to construct a well used for conventional farming and ranching activities and instead prohibits the district from charging or collecting a well construction fee for such a well. The bill requires a well owner to obtain a permit and pay any required fees, including a well construction fee, before using any groundwater withdrawn from a well for purposes other than those specifically exempted.

C.S.H.B. 3903 repeals a provision relating to the Hays County Commissioners Court's authority to require an election for the purpose of affirming or reversing a decision of the district's board of directors and provisions relating to the requirement that the county auditor audit the district's performance at the commissioners court's written request.

C.S.H.B. 3903 repeals Sections 8843.102 and 8843.155, Special District Local Laws Code.

EFFECTIVE DATE

September 1, 2013.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 3903 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner than indicates the substantial differences between the introduced and committee substitute versions of the bill.

INTRODUCED	HOUSE COMMITTEE SUBSTITUTE
SECTION 1. Section 8843.051(b), Special District Local Laws Code, is amended.	SECTION 1. Same as introduced version.
SECTION 2. Section 8843.053, Special District Local Laws Code, is amended.	SECTION 2. Same as introduced version.
No equivalent provision.	SECTION 3. Section 8843.103, Special District Local Laws Code, is amended to read as follows: Sec. 8843.103. WELL CONSTRUCTION NOTIFICATION [PERMIT]. Notwithstanding Section 8843.104, a landowner must notify the district before [Except as provided by Sections 8843.104(b) and (c), the district may require a permit for] the construction of a new well that is to be completed after September 1, 2013 [2001].
SECTION 3. Section 8843.104(a), Special District Local Laws Code, is amended to read as follows: (a) The following wells are exempt from the requirements of Chapter 36, Water Code, and may not be regulated, permitted, or metered by the district: (1) a well used for domestic use by a single private residential household and producing not more [less] than 15,000 [25,000] gallons per day; and (2) a well used for conventional farming and ranching activities, including such intensive operations as aquaculture, livestock feedlots, or poultry operations. No equivalent provision. No equivalent provision.	SECTION 4. Section 8843.104, Special District Local Laws Code, is amended by amending Subsections (a) and (b) and adding Subsection (b-1) to read as follows: (a) Groundwater withdrawals from the [The] following wells [are exempt from the requirements of Chapter 36, Water Code, and] may not be regulated, permitted, or metered by the district: (1) a well used for domestic use by a single private residential household and incapable of producing more [less] than 25,000 gallons per day; and (2) a well used for conventional farming and ranching activities, including such intensive operations as aquaculture, livestock feedlots, or poultry operations. (b) The district may not charge or collect a well construction fee for [require a permit to construct] a well described by Subsection (a)(2). (b-1) A well owner must obtain a permit and pay any required fees, including a well construction fee, before using any groundwater withdrawn from a well for purposes other than those exempted by this section.
SECTION 4. Subchapter C, Chapter 8843, Special District Local Laws Code, is amended by adding Section 8843.107 to read as follows: Sec. 8843.107. HIGH VOLUME WELLS. (a) In this section, "high volume well" means a well that is capable of producing more than 15,000 gallons a day for any use. (b) An application for a permit to operate in the district a high volume well that is not exempt under Section 8843.104 must include: (1) the name and mailing address of all persons who own property within one-quarter mile of the well site; and (2) proof that the owner or operator requesting the permit has provided notice to all persons listed in Subdivision (1) according to the form prescribed by the board.	No equivalent provision.
SECTION 5. Section 8843.151, Special District Local Laws Code, is amended to read as follows: Sec. 8843.151. WELL CONSTRUCTION PERMIT FEE. The district may charge and collect a construction permit fee not to exceed $1,000 [$300] for a well for which the district requires a permit under Section 8843.103.	SECTION 5. Section 8843.151, Special District Local Laws Code, is amended to read as follows: Sec. 8843.151. WELL CONSTRUCTION [PERMIT] FEE. The district may charge and collect a new well construction [permit] fee not to exceed $1,000 [$300] for a new well [for which the district requires a permit under Section 8843.103].
No equivalent provision.	SECTION 6. Subchapter D, Chapter 8843, Special District Local Laws Code, is amended by adding Section 8843.1515 to read as follows: Sec. 8843.1515. PERMIT RENEWAL APPLICATION FEE. The district may charge and collect a permit renewal application fee not to exceed $400.
SECTION 6. Section 8843.152(b), Special District Local Laws Code, is amended to read as follows: (b) The district may levy and collect a water utility service connection fee not to exceed $1,000 [$300] for each new water service connection made after September 1, 2001.	SECTION 7. Section 8843.152(b), Special District Local Laws Code, is amended to read as follows: (b) The district may levy and collect a water utility service connection fee not to exceed $1,000 [$300] for each new water service connection made after September 1, 2013 [2001].
SECTION 7. Sections 8843.102 and 8843.155, Special District Local Laws Code, are repealed.	SECTION 8. Same as introduced version.
SECTION 8. Not later than three months after the effective date of this Act, the board of directors of the Hays Trinity Groundwater Conservation District shall adopt rules to implement Section 8843.107, Special District Local Laws Code, as added by this Act.	No equivalent provision.
No equivalent provision.	SECTION 9. Section 8843.151, Special District Local Laws Code, as amended by this Act, applies only to a well for which construction begins on or after the effective date of this Act. A well for which construction begins before that date is governed by the law in effect when the construction began, and that law is continued in effect for that purpose.
No equivalent provision.	SECTION 10. The change in law made by Section 8843.1515, Special District Local Laws Code, as added by this Act, applies only to an application for the renewal of a permit submitted to the Hays Trinity Groundwater Conservation District after September 1, 2013. An application submitted before that date is governed by the law in effect on the date the application was submitted, and the former law is continued in effect for that purpose.
SECTION 9. To establish staggered four-year terms of office as required by Sections 8843.051(b) and 8843.053, Special District Local Laws Code, as amended by this Act, a director elected in November 2012 shall serve a term expiring December 1, 2014, and a director elected in November 2013 shall serve a term expiring December 1, 2016.	SECTION 11. Same as introduced version.
SECTION 10. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.	SECTION 12. This Act takes effect September 1, 2013.