BILL ANALYSIS

C.S.H.B. 1699

By: King, Tracy O.

Natural Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE

With limited exceptions, the current statutory cap on an export fee charged by the Evergreen Underground Water Conservation District on water transferred out of the district is 2.5 cents per thousand gallons. That cap has not been raised in over 20 years. Due to the increasing demand for groundwater, the district board has determined that a fee increase is necessary to fulfill their statutory duties. C.S.H.B. 1699 seeks to authorize the district to impose certain fees and sets a cap on the amount of a production and export fee at 20 cents for each thousand gallons of exported water.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 1699 amends Chapter 197, Acts of the 59th Legislature, Regular Session, 1965, to authorize the board of directors of the Evergreen Underground Water Conservation District to impose the following fees:

· a combined production and export fee on water exported from the district in an amount not to exceed 20 cents for each thousand gallons of water exported from the district; and

· other fees authorized under statutory provisions governing groundwater conservation districts.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 1699 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute establishes a combined production and export fee on water exported from the district, whereas the introduced authorized an export fee and capped that fee at 150 percent of the maximum wholesale water rate charged by the San Antonio Water System.