HBA-JEK H.B. 3642 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3642 By: Counts Natural Resources 4/4/2001 Introduced 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. House Bill 3642 creates the Lower Seymour Groundwater Conservation District, subject to approval at a confirmation election, to manage Jones 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 3642 creates the Lower Seymour Groundwater Conservation District (district) in Jones County, subject to voter approval at a confirmation election (SECTIONS 1-3). The bill provides that the district is governed by a board of five directors and sets forth provisions regarding the election, qualifications, and terms of the directors as well as the names of the five temporary directors. The bill sets forth provisions regarding an election to confirm establishment of the district (SECTIONS 610). The bill authorizes the board of directors to change the district's name when the district annexes territory (SECTION 13). H.B. 3642 authorizes the district to assess general production fees, solicit and accept grants from any public or private source and to assess a transfer fee on water exported from the district. The bill authorizes the district, subject to voter approval, to impose an ad valorem tax of not more than five cents for each $100 of taxable value of property in the district to pay the maintenance and operating costs of the district (SECTION 11). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.