HBA-LJP H.B. 1038 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1038 By: Cook Natural Resources 2/15/2001 Introduced BACKGROUND AND PURPOSE Texas faces a difficult challenge to develop water policies that serve both state and regional interests. The Texas Constitution authorizes the creation of groundwater conservation districts to plan, develop, and regulate the use of water. House Bill 1038 creates the Coastal Bend Groundwater Conservation District to manage Wharton County's groundwater resources. 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. ANALYSIS House Bill 1038 creates the Coastal Bend Groundwater Conservation District (district) in Wharton County, subject to voter approval at a confirmation election (SECTIONS 1, 3, and 10). To pay for the maintenance and operating costs of the district, the bill authorizes the district to: impose stipulated ad valorem taxes; assess general production fees; solicit and accept grants from any public or private source; and assess a transfer fee on water exported from the district (SECTION 12). The bill requires the district to adopt rules to: require the permitting of all stipulated water wells; provide for the prevention of certain waste; provide for timely capping or plugging of abandoned wells; and require a report with specified information to be filed with the district on all new, nonexempt water wells. The bill also requires the district to complete certain procedures and coordinate with adjacent districts to provide regional continuity in groundwater resource management (SECTION 6). H.B. 1038 provides that the district is governed by a board of five directors and sets forth provisions regarding the composition and administration of the board and the election, qualification, and terms of the directors (SECTIONS 7, 8, 9, 10 and 11). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.