HBA-NMO C.S.H.B. 3848 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3848 By: Flores Natural Resources 5/5/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE The Texas Constitution provides for the creation of conservation and reclamation districts. C.S.H.B. 3848 creates the Red Sands Groundwater Conservation District in Hidalgo County, subject to voter approval. 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. CREATION. Creates the Red Sands Groundwater Conservation District (district), in Hidalgo County, subject to approval at a confirmation election under Section 8. Provides that the district is a governmental agency and a body politic and corporate. Provides that the district is created under Section 59 (Conservation and Development of Natural Resources; Conservation and Reclamation Districts), Article XVI, Texas Constitution. SECTION 2. DEFINITION. Defines "district"as the Red Sands Groundwater Conservation District. SECTION 3. BOUNDARIES. Sets forth the territory of the district. SECTION 4. FINDING OF BENEFIT. Sets forth finding of benefit. SECTION 5. POWERS. Provides that the district, except as provided by this Act, has all of the rights, powers, privileges, authority, functions, and duties provided by the general law of this state applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. Provides that this Act prevails over any provision of general law that is in conflict or inconsistent with this Act. Provides that Chapter 49 (Provisions Applicable to All Districts), Water Code, does not apply to the district. Sets forth specific sections of the Water Code that prevail over a conflicting or inconsistent provision of this Act, notwithstanding Subsection (a) of this section. SECTION 6. BOARD OF DIRECTORS. Provides that the district is governed by a board of five directors, each elected at-large to one of five numbered places. Sets forth the director qualifications. Provides that permanent directors serve staggered three-year terms. Provides that a director serves until the director's successor has qualified. Sets forth the procedure for filling a vacancy in the office of director. Provides that an appointed director is eligible to run for election to the board. SECTION 7. TEMPORARY DIRECTORS. Sets forth the composition of the temporary board. Provides that the temporary directors are not required to meet the eligibility requirements of permanent directors. Provides that temporary directors serve until permanent directors are elected at the confirmation election under Section 8 of this Act. SECTION 8. CONFIRMATION AND INITIAL DIRECTORS' ELECTION. Sets forth the procedure for the confirmation and initial directors' election. SECTION 9. ELECTION OF PERMANENT DIRECTORS. Sets forth the procedure for the election of permanent directors. SECTION 10. ELIGIBLE DISTRICT VOTERS. Provides that any person qualified to vote under the Election Code is an eligible voter in the district. Provides that nonresidents of the district who own real property in the district are eligible to vote. SECTION 11. TAXATION AUTHORITY. Requires the board of directors to impose taxes in accordance with the procedures under Subchapter G (District Revenues), Chapter 36, Water Code. Authorizes the board of directors to annually impose an ad valorem tax at a rate not to exceed two cents on each $100 of assessed valuation, unless a higher rate is approved by a majority of the voters of the district voting at an election called and held for that purpose. SECTION 12. TRANSPORTATION OF GROUNDWATER. Authorizes the board of directors to adopt rules requiring a permit to transport district groundwater outside the district. Requires the board of directors to authorize the transportation of groundwater for use outside the district if the board determines that the use is in the public interest. Authorizes the board of directors to designate uses of water that are in the public interest and establish criteria for permits issued under the rules. Authorizes the continuance of transportation projects for the use of groundwater outside the district that began before the effective date of this Act without a permit if the use of groundwater is on land contiguous to the district's boundaries and is for domestic or livestock purposes. SECTION 13. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. Sets forth findings relating to procedural requirements. SECTION 14. EFFECTIVE DATE. Effective date: September 1, 1999. SECTION 15. EMERGENCY. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original in SECTION 5 (Powers) by removing language that would have subjected the rights, powers, privileges, authority, functions, and duties of the district to the continuing right of supervision of the state to be exercised by and through the Texas Natural Resource Conservation Commission. The substitute differs from the original in SECTION 8 (Confirmation and Initial Directors' Election) by providing that this Act expires on the second, rather than fourth, anniversary of the effective date of this Act if the establishment of the district has not been confirmed at an election before that date.