HBA-LJP C.S.H.B. 2005 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2005 By: Corte Natural Resources 4/12/2001 Committee Report (Substituted) 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. In 1990, the Texas Natural Resource Conservation Commission designated the Trinity Aquifer, including areas in Bexar County, as a Priority Groundwater Management Area to address the critical or future critical water shortage in the area. C.S.H.B. 2005 creates the Trinity Glen Rose Groundwater Conservation District, subject to voter approval at a confirmation election, in Bexar 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. ANALYSIS C.S.H.B. 2005 creates the Trinity Glen Rose Groundwater Conservation District (district), subject to voter approval at a confirmation election (SECTION 1). The bill provides that the district is governed by a board of directors, one from each of five single-member voting districts, and sets forth provisions regarding the composition and administration of the board and the appointment, qualifications, and terms of the directors as well as the names of the temporary directors. The bill sets forth provisions regarding an election to confirm the establishment of the district (SECTIONS 612). The bill authorizes the district to impose either a fee or a tax to use as a regulatory mechanism or a revenueproducing mechanism. The bill sets forth provisions for an operation and maintenance tax, a fee on each nonexempt well in the district, a regulatory fee for a retail public utility, and a lien on property with a well (SECTIONS 13 and 16). The bill prohibits the district from imposing a fee or tax on a person who provides water to a municipality, at least 50 percent of which is annually obtained from a source other than the Trinity Aquifer, or a resident of or other water user within the municipality that obtains water from such a person (SECTION 17). The bill sets forth the expenditures of the collected fees and authorizes the district to expend the fees independently or in conjunction with other natural resource programs in the district. The bill requires the board no later than December 1, 2003 to adopt rules issuing appropriate recharge credits to persons in the district who pay fees or taxes to the district and who enhance, supplement, improve, or prevent pollution of recharge of the Trinity Aquifer. The bill also requires the board to adopt rules regarding the fee rates, the manner and form for filing reports of fees, and the manner of collecting fees (SECTION 13). The bill prohibits the district from: _selling, donating, leasing, or otherwise granting rights to underground water located in the district unless the action has been approved by a majority vote of the residents of the district; _engaging in any action to purchase, sell, transport, and distribute surface water or groundwater for any purpose other than aquifer storage and recovery; _assessing an ad valorem tax in excess of three cents for each $100 valuation; or _imposing a tax on or charging a fee to any person in the district who does not obtain water from the Trinity Aquifer (SECTION 15). The bill provides that under certain conditions, a public water supply well is exempt from regulation by the district and from payment of fees to the district. The bill requires the owner of a public water supply well to register the well with the district and submit reports to the district and provides that the public water supply well is subject to the district's prohibitions on the waste of groundwater. The bill prohibits the district from requiring a construction or operating permit for a public water supply well approved by the Texas Natural Resource Conservation Commission (SECTION 16). The bill authorizes the board to require all or certain types of wells to be registered with the district. The bill sets forth which acts the district is authorized to carry out and sets forth provisions relating to exempt wells (SECTION 14). The bill prohibits the district from issuing bonds before September 1, 2004 (SECTION 18). The bill authorizes any part of a municipality, a part of which is included within the boundaries of one or more groundwater conservation districts created by the 77th Legislature, and is confirmed with a subsequent election called for that purpose, to hold no later than August 31, 2004 an election to choose the groundwater conservation district of which it will be a part. The bill sets forth provisions regarding the confirmation of a district and the subsequent election of the municipality to determine the reconfirmation of the district if the district has not issued bonds secured by ad valorem taxes (SECTION 19). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2005 modifies the original to specify the names of the temporary directors of the board of the Trinity Glen Rose Groundwater Conservation District (district) (SECTION 8). The substitute requires the board to adopt rules issuing appropriate recharge credits to persons in the district who pay fees or taxes to the district and improve or prevent pollution of recharge of the Trinity Aquifer (SECTION 13). The substitute prohibits the district from issuing bonds before September 1, 2004 (SECTION 18). The substitute sets forth provisions regarding the election by any part of a municipality that is included within the boundaries of one or more groundwater conservation districts to choose the groundwater conservation district of which it will be a part and the election to reconfirm the district if the district has not issued bonds secured by ad valorem taxes (SECTION 19).