TO:	Honorable Jim Keffer, Chair, House Committee on Natural Resources
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB4207 by Morrison (Relating to the creation of the Aransas County Groundwater Conservation District; providing authority to issue bonds and impose a tax; providing general law authority to impose fees and surcharges.), As Introduced

The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined that:
 
House Bill 4207, as authored by Representative Geanie Morrison, would create, subject to a confirmation election, the Aransas County Groundwater Conservation District (District) in Aransas County with the powers and duties of Water Code, Chapter 36 related to the general law for groundwater conservation districts (GCDs). The boundaries of the District are coextensive with the boundaries of Aransas County. 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.  
 
Population - The Aransas GCD will be comprised of Aransas County.  In the 2010 Census the total population of Aransas County is estimated to be 23,158.
     
The Aransas County population projections approved for the 2016 Region N Water Plan projects the population to be 24,463 in 2020, 24,991 in 2030 and 24,937 in 2040.
     
Location - The proposed district would be composed of all territory within Aransas County upon a successful confirmation election within the county.
 
Comments on Powers/Duties Different from Similar Types of Districts - Unlike general law GCDs, the Commissioners Court of Aransas County shall, within 10 days of September 1, 2015, appoint five temporary directors with one from each of the four commission precincts and one at-large who resides in the District. The temporary directors are required to have an organizational meeting as soon as practicable after all have qualified to elect officers. Before January 1, 2016, the temporary directors are required to order a District confirmation election and hold the election on a uniform election date in May 2016. If creation of the District is confirmed at the election, the temporary directors become the initial directors and will draw lots for two- and four-year terms. On the November uniform election date of the first even-numbered year after the confirmation election, and every two years afterward, a directors' election will be held using the commissioners precinct method with one elected from each of the four precincts and one from the county elected at-large. The directors will serve staggered four-year terms. Under the Water Code, general law GCD directors are elected by the single-precinct method.
 
Unlike general law GCDs, the District may not exercise the power of eminent domain or impose an ad valorem tax that exceeds one cent on each $100 of assessed valuation. Under the Water Code, general law GCDs may exercise the power of eminent domain and may impose a voter-approved ad valorem tax that does not exceed fifty cents on each $100 of assessed valuation to pay for operation and maintenance expenses.
 
Overlapping Services - The boundaries of the District are coextensive with the boundaries of Aransas County. GCD functions do not conflict with services provided by other types of water districts or utilities.
 
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.
 
Water Use - HB 4207 specifies that "the district has all of the rights, powers, privileges, authority, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution".
 
Within Aransas County, 12 percent of the total water use was groundwater (Gulf Coast Aquifer) in 2012. Ninety-three percent of all the groundwater pumping was for municipal use.