HBA-NMO H.B. 2237 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2237 By: Cook Natural Resources 3/15/1999 Introduced BACKGROUND AND PURPOSE Current law provides for the creation of groundwater conservation districts to plan, develop, and regulate the use of water resources. The people of Bastrop and Lee Counties depend on the CarrizoWilcox aquifer as their principal source of water. However, the aquifer is threatened by over-use and potential pollution. H.B. 2237 creates the Bastrop-Lee Counties Groundwater Conservation District, subject to approval at a confirmation election. 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. SECTION BY SECTION ANALYSIS SECTION 1. Creates the Bastrop-Lee Counties Groundwater Conservation District, subject to a confirmation election as provided by Section 9 of this Act. Provides that the district is created under and is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution (Conservation and Development of Natural Resources; Conservation and Reclamation Districts). SECTION 2. DEFINITION. Defines "district" as the Bastrop-Lee Counties Groundwater Conservation District. SECTION 3. Provides that the boundaries of the district are coextensive with the boundaries of Bastrop and Lee counties. SECTION 4. FINDING OF BENEFIT. Sets forth finding of benefit. SECTION 5. POWERS. (a) Provides that the district, with exception, has all the rights, powers, privileges, authority, functions, and duties provided by the general law of this state, including Chapter 36 (Groundwater Conservation Districts), Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. Provides that Chapter 49 (Provisions Applicable to All Districts), Water Code, does not apply to the district. Provides that this Act prevails over any provision of general law that is in conflict or inconsistent with this Act. Provides that the rights, powers, privileges, authority, functions, and duties of the district are subject to the continuing right of supervision of the state to be exercised by and through the Texas Natural Resource Conservation Commission (TNRCC). Prohibits the district from levying or collecting taxes. Prohibits the district from requiring a permit for, imposing a fee on, or restricting production of a well that is not capable of producing more than 50,000 gallons of groundwater a day. Provides that certain sections of the Water Code prevail over a conflicting or inconsistent provision in this Act. SECTION 6. WATER EXPORT RULES. (a) Requires the board of directors of the district (board), by rule, to define "export line" to mean the outer perimeter of the area that extends five miles from the outer perimeter of the combined area described or delineated in certificates of convenience and necessity issued by TNRCC, in effect on January 1, 1999, and held by certain water supply corporations and municipalities (retail public utilities). (b) Authorizes the board, by rule, to require person to obtain a permit from the district to transfer groundwater outside the export line. Provides that the rules must be consistent with Section 36.122 (Transfer of Groundwater Out of District), Water Code, except that the export line is substituted for the district boundaries. (c) Provides that this section does not affect the right of a retail public utility listed in Subsection (a) to contract to provide wholesale or bulk water to a customer who resells water for consumption within the export line without regard to whether that water is provided under a certificate of convenience and necessity. (d) Provides that this section does not restrict a retail public utility listed in Subsection (a) of this section from transporting water outside the export line for emergency purposes for a period not to exceed 90 days. Authorizes the transportation of water outside the export line under this subsection to be voluntary or directed by TNRCC. (e) Requires each retail public utility listed in Subsection (a), on or before the 30th day after the effective date of this Act, to file with the district the certificate of convenience and necessity held by that utility and in effect on January 1, 1999. SECTION 7. Authorizes the board, by rule, to impose reasonable fees on the owner, operator, or both of each well in the district, regardless of the date on which the well was drilled or began producing, if a permit is issued for the well by the district and the well is not exempt from regulation by the district. Authorizes the district to use all fees collected for the purposes necessary to carry out the purposes of this Act and the powers granted by Chapter 36, Water Code, as the district considers necessary for the district's protection, conservation, and regulation of groundwater, including administrative and operating expenses. Prohibits a fee that is based on the amount of water to be withdrawn from a well from exceeding the limits set by Section 36.205(c), Water Code (one dollar per acre foot for water used for agricultural crop irrigation or 17 cents per thousand gallons for water used for any other purpose). SECTION 8. BOARD OF DIRECTORS. Provides that the district is governed by a board of 10 directors. Sets forth the appointment procedures for and terms of directors. Prohibits a director from receiving compensation for serving on the board but entitles a director to reimbursement for actual reasonable expenses incurred in performing duties as director. Requires the governing body of the entity that appointed a director, if that director vacates the board, to appoint a director to serve the remainder of the term. SECTION 9. ORGANIZATIONAL MEETING. Requires the directors, as soon as practicable after the initial directors are appointed and have qualified as provided by this Act, to hold the organizational meeting of the board. Requires the directors to hold the meeting at a location within the district agreeable to a majority of the directors or at the Bastrop County Courthouse if the directors cannot agree on a location. SECTION 10. CONFIRMATION ELECTION. Requires the initial board of directors to call and hold an election in each of the two counties, individually, to confirm the establishment of the district. Provides that Section 41.001(a) (Uniform Election Dates), Election Code, does not apply to this confirmation election. SECTION 11. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. Sets forth findings related to procedural requirements. SECTION 12.Emergency clause. Effective date: upon passage.