HBA-LJP H.B. 2432 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2432 By: Cook Natural Resources 3/13/2001 Introduced BACKGROUND AND PURPOSE Texas faces a difficult challenge to develop water policies that serve state, regional, rural, and urban water interests. The Texas Constitution authorizes the creation of groundwater conservation districts to plan, develop, and regulate the use of water. Currently, the Bastrop and Lee County area is dependent of the waters of the Carrizo-Wilcox underground aquifer for most of its water supply. Although there are other surface water sources in and around these two counties, in this rural area, the residents are highly dependent on well water for survival. The entire Carrizo-Wilcox aquifer is threatened by over production and potential pollution that may devastate the health, the lifestyles, and the economic well-being of every citizen in the region. As the population of these counties and the entire area grows, the dependence and demand on water will continue to increase. House Bill 2432 ratifies the creation of the Lost Pines Groundwater Conservation District, subject to voter approval at a confirmation election, to manage the groundwater resources of Bastrop and Lee counties. 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 2432 amends law to ratify the creation of the Lost Pines Groundwater Conservation District (district), subject to voter approval at a confirmation election. The bill prohibits the district from imposing a tax. The district is authorized to assess a regulatory pumping fee for water produced in or exported from the district and provides that the regulatory pumping fee for agricultural use is not to exceed 20 percent of the fee rate for municipal use. The bill provides fee caps for regulatory pumping fees that are based on the amount of water withdrawn from a well. The bill also prohibits the district from requiring a permit for, imposing a fee on, or restricting the production of a well that is not capable of producing more than 50,000 gallons of groundwater a day. The bill provides that the Railroad Commission of Texas (commission) has exclusive jurisdiction over groundwater wells that are drilled or operated within the district under permits issued by the commission and exempts these groundwater wells from the regulation by the district. The bill sets forth provisions that establish the relationship between groundwater wells under the jurisdiction of the commission and the district. H.B. 2432 provides that the district is governed by a board of ten directors and requires the county judge of Bastrop County to appoint five directors from Bastrop County and the county judge of Lee County to appoint five directors from Lee County. The bill sets forth provisions regarding the administration of the board and the appointment, qualifications, and terms of the directors. The bill sets forth provisions regarding an election to confirm establishment of the district. The district is required to participate in any coordinating council or board that is established to coordinate activities with other districts in Management Area No. 4, as designated by the Texas Natural Resource Conservation Commission or its successor, and of which the district is a member. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.