HBA-BSM H.B. 2362 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2362 By: Hope Natural Resources 3/15/2001 Introduced BACKGROUND AND PURPOSE Texas faces a difficult challenge in developing 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 2362 creates the Lone Star Groundwater Conservation District, subject to approval at a confirmation election, to manage Montgomery 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 2362 creates the Lone Star Groundwater Conservation District (district) in Montgomery County, subject to voter approval at a confirmation election (SECTIONS 1 and 3). The district is authorized to assess production fees based on the amount of water authorized by permit to be withdrawn from a well or the amount actually withdrawn. The bill provides that the district does not have the authority to issue bonds or notes or levy taxes. The bill prohibits the district from regulating the production of water or assessing fees against the transfer of water that is produced in an area of a municipal utility district that is located inside the district boundaries and transferred to an area within the municipality district that is located outside the district boundaries (SECTION 11). The bill requires the district to coordinate with all adjacent groundwater conservation districts to provide regional continuity in groundwater resource management (SECTION 13). H.B. 2362 provides that the district is governed by a board of nine directors and sets forth provisions regarding the composition and administration of the board and the appointment, qualification, and terms of the directors (SECTIONS 6-9 and 10). The bill also sets forth provisions regarding an election to confirm the establishment of the district (SECTION 10). EFFECTIVE DATE September 1, 2001.