HBA-LJP H.B. 3543 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3543 By: Hilderbran Natural Resources 3/26/2001 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. The Headwaters Underground Water Conservation District was created by the Texas Legislature in 1991 to oversee the groundwater issues in Kerr County. House Bill 3543 renames the Headwaters Underground Water Conservation District as the Headwaters Groundwater Conservation District (district) and provides for other modifications to conform the district with other groundwater districts. 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 3543 amends law to modify the name of the Headwaters Underground Water Conservation District to the Headwaters Groundwater Conservation District (district). The bill provides that the district is governed by a board of directors and sets forth provisions regarding the election, qualifications, and terms of the directors. The bill provides that the board is composed of five directors, one from each of the county commissioners precincts and one from the entire district. The bill authorizes, rather than requires, the district to contract with Kerr County or certain river authorities for services available from the county or river authority. The bill also authorizes a district to charge a production fee for water transported out of the district, based on local aquifer storage and recovery project costs, for the introduction of water into the local aquifers or other conservation programs. The bill requires the attorney general to represent the district in a state court or any court of the United States, at the request of the district, and to provide legal assistance as required by the district. The bill repeals the prohibition on the district to sell, donate, lease, or otherwise grant rights to underground water located in the district. The bill sets forth provisions regarding the implementation of this Act. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.