HBA-EDN C.S.H.B. 2572 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2572 By: McReynolds Natural Resources 4/3/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Texas faces a difficult challenge to develop water policies that serve state and regional interests. The Texas Constitution authorizes the creation of groundwater conservation districts to plan, develop, and regulate the use of water. C.S.H.B. 2572 creates the Pineywoods Groundwater Conservation District, subject to approval at a confirmation election, to manage Angelina and Nacogdoches counties' 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 C.S.H.B. 2572 creates the Pineywoods Groundwater Conservation District (district) in Angelina and Nacogdoches counties, subject to approval at a confirmation election (SECTION 1). C.S.H.B. 2572 provides that the district is governed by a board of seven directors (board) and sets forth provisions regarding the administration of the board and the qualifications and terms of the directors. The bill requires the Angelina and Nacogdoches County commissioners courts to each appoint two directors and jointly appoint one director, the Lufkin City Council to appoint one director, and the Nacogdoches City Council to appoint one director (SECTIONS 6-8). C.S.H.B. 2572 authorizes the district, by rule, to require a person to obtain a permit for the transfer of groundwater out of the district and to regulate the terms on which a permit holder may conduct such a transfer. The bill provides that a retail public utility is not required to obtain a permit to transfer groundwater out of the district. The district is prohibited from requiring a permit for a well incapable of producing more than 25,000 gallons of groundwater a day. The bill prohibits the board from imposing a tax to pay the maintenance and operating expenses of the district until the tax is approved by a majority of the voters at an election held in the district for that purpose. The bill provides that such an election must be held on the first Tuesday after the first Monday in November of an even-numbered year, but prohibits the election from being held concurrently with an election to confirm the establishment of the district. The bill authorizes the board, by rule, to impose fees on each well for which a permit is issued and which is not exempt from regulation by the district, but prohibits any fee from exceeding $0.01 per thousand gallons for groundwater withdrawn for any purpose. The bill also prohibits the district from exercising the power of eminent domain or purchasing, selling, transporting, or distributing surface water or groundwater (SECTION 5). The bill sets forth provisions regarding an election to confirm establishment of, and the addition of other counties to, the district (SECTIONS 10 and 11). 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. 2572 modifies the original to provide that the board may impose a tax to pay the maintenance and operating expenses of the district if the tax is approved by a majority of the voters at an election held in the district for that purpose. The substitute deletes provisions prohibiting the district from levying or collecting taxes in the district and from issuing and selling any type of tax-supported bonds or notes in the name of the district.