HBA-RBT C.S.H.B. 3808 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3808 By: Hilderbran Natural Resources 5/4/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, Kendall County does not have a groundwater conservation district despite determination by the Texas Natural Resource Conservation Commission that it is a "priority groundwater management area." C.S.H.B. 3808 provides for the creation and administration of a groundwater conservation district in Kendall County. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. CREATION. Creates a groundwater conservation district, to be known as the Bergesland Groundwater Conservation District (district), in Kendall County, subject to approval at a confirmation election under Section 9 of this Act. Provides that the district is a governmental agency and a body politic and corporate. Provides that the district is created under and is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. Authorizes the district to develop and implement regulatory, conservation, and recharge programs that preserve and protect underground water resources located in the district. SECTION 2. DEFINITIONS. Defines "district," "retail public utility," and "well." SECTION 3. BOUNDARIES. Provides that the boundaries of the district are coextensive with the boundaries of Kendall County. SECTION 4. FINDING OF BENEFIT. Provides finding of benefit. SECTION 5. POWERS. Provides that except as provided by this Act, the district has all of the rights, powers, privileges, authority, functions, and duties provided by the general law of this state, including Chapter 36 (Groundwater Conservation District), Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. Provides that this Act prevails over any provision of general law that is in conflict or inconsistent with this Act. SECTION 6. ELECTION OF DIRECTORS. Requires the directors of the district to be elected according to the commissioners precinct method as provided by this Act. Sets forth the manner of election of the directors. SECTION 7. BOARD OF DIRECTORS. Provides that the district is governed by a board of five directors. Sets forth the qualifications of directors and the procedure to follow in the event of a vacancy. SECTION 8. TEMPORARY DIRECTORS. Names the temporary board of directors. Provides that if a temporary director fails to qualify for office, the temporary directors who have qualified shall appoint a person to fill the vacancy. Requires the Texas Natural Resource Conservation Commission to appoint the necessary number of persons to fill all vacancies on the board if at any time there are fewer than three qualified temporary directors. SECTION 9. CONFIRMATION ELECTION. Requires the temporary board of directors to call and hold an election to confirm establishment of the district. Provides that Section 41.001(a) (Uniform Election Dates), Election Code, does not apply to a confirmation election held as provided by this section. Sets forth the required actions which must be performed following the election. Provides that Section 36.017(a), Water Code, does not apply to the district. Provides that except as provided by this section, a confirmation election must be conducted as provided by Sections 36.017(b)-(h), Water Code, and the Election Code. SECTION 10. INITIAL DIRECTORS. Sets forth the procedures to be followed in the event the district is created. SECTION 11. SERVICE OF DIRECTORS. Sets forth the terms of the temporary directors and the permanent directors. SECTION 12. ELECTION OF PERMANENT DIRECTORS. Requires, beginning in the second year after the year in which the district is authorized to be created at a confirmation election, an election to be held in the district on the first Saturday in May every two years to elect the appropriate number of directors to the board. SECTION 13. ADDITIONAL AUTHORITY. Authorizes the district to contract with one or more state agencies or other governmental bodies, including a county, a river authority, or another district to carry out any function of the district. Authorizes, except for public water supply wells owned by retail public utilities, the district to require a drilling permit before a new well is drilled or an existing well is substantially altered. Provides that notwithstanding an exemption for a well under Section 36.117, Water Code, written authorization granted by the district must be received before a new well is drilled or an existing well is substantially altered. Authorizes the district to participate in the construction, implementation, and maintenance of best management practices for water resource management in the district and may engage in and promote the acceptance of best management practices through education efforts sponsored by the district. Provides that construction, implementation, and maintenance of best management practices must address water quantity and quality practices such as brush management, prescribed grazing, recharge structures, water and silt detention and retention structures, plugging of abandoned wells, and other treatment measures for the conservation of water resources. Authorizes, except for public water supply wells owned by retail public utilities, reasonable fees, as determined by the district, to be imposed on an annual basis on each nonexempt well. Requires the district to adopt any rules necessary for the assessment and collection of fees under this subsection. Authorizes the district to use money collected from fees in any manner necessary for the management and operation of the district, to pay all or part of the principal of and interest on district bonds or notes, and for any purpose consistent with the district's certified water management plan, including making grants, loans, or contractual payments to achieve, facilitate, or expedite the development or distribution of alternative water supplies or reductions in groundwater pumping. Authorizes the district to grant an exemption or other relief from ad valorem taxes on property on which a water conservation initiative has been implemented. Requires the district to adopt rules to implement this subsection. Provides that a retail public utility shall receive the same exemption or relief from ad valorem taxes on property as any other customer of the district would receive. SECTION 14. PROHIBITED ACTS. Prohibits the district from imposing an ad valorem property tax for administrative, operation, or maintenance expenses that exceeds the lesser of the rate approved by the majority of the qualified voters voting in the election authorizing the tax, or three cents per $100 valuation; requiring the owner of a well used solely for domestic or livestock purposes to install a meter or measuring device on the well; requiring a drilling, operating, or any other permit for a public water supply well if the Texas Natural Resource Conservation Commission approves the plan submitted for the installation of the well and the well is drilled and completed in accordance with the approved plan; selling, transporting, or exporting groundwater outside of the district; or entering into any contract or engaging in any action to supply water to any person in the service area of any municipality or retail public utility located in the district, except with the consent of the municipality or retail public utility. SECTION 15. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. Provides that the proper and legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished by the constitution and other laws of this state, including the governor, who has submitted the notice and Act to the Texas Natural Resource Conservation Commission. Provides that the Texas Natural Resource Conservation Commission has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time. Provides that all requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 16. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original by renaming the district the Bergesland Groundwater Conservation District, rather than the Kendall County Groundwater Conservation District. The substitute differs from the original in SECTION 5 by deleting Subsection (b) relating to supervision by the Texas Natural Resources Conservation Commission. The substitute differs from the original in SECTION 6 by deleting Subsection (d) relating to the first election after the county commissioners precincts are redrawn. The substitute differs from the original by setting the maximum ad valorem tax a district can impose at 3 cents per $100 valuation, rather than 5 cents per $100 valuation in the original.