HBA-EDN C.S.H.B. 2572 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2572
By: McReynolds
Natural Resources
4/3/2001
Committee Report (Substituted)

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.  C.S.H.B. 2572 creates the Pineywoods
Groundwater Conservation District, subject to approval at a confirmation
election, to manage Angelina and Nacogdoches counties' 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

C.S.H.B. 2572 creates the Pineywoods Groundwater Conservation District
(district) in Angelina and Nacogdoches counties, subject to approval at a
confirmation election (SECTION 1).   

C.S.H.B. 2572 provides that the district is governed by a board of seven
directors (board) and sets forth provisions regarding the administration of
the board and the qualifications and terms of the directors.  The bill
requires the Angelina and Nacogdoches County commissioners courts to each
appoint two directors and jointly appoint one director, the Lufkin City
Council to appoint one director, and the Nacogdoches City Council to
appoint one director (SECTIONS 6-8).   

C.S.H.B. 2572 authorizes the district, by rule, to require a person to
obtain a permit for the transfer of groundwater out of the district and to
regulate the terms on which a permit holder may conduct such a transfer.
The bill provides that a retail public utility is not required to obtain a
permit to transfer groundwater out of the district.  The district is
prohibited from requiring a permit for a well incapable of producing more
than 25,000 gallons of groundwater a day.   

The bill prohibits the board from imposing a tax to pay the maintenance and
operating expenses of the district until the tax is approved by a majority
of the voters at an election held in the district for that purpose. The
bill provides that such an election must be held on the first Tuesday after
the first Monday in November of an even-numbered year, but prohibits the
election from being held concurrently with an election to confirm the
establishment of the district.  The bill authorizes the board, by rule, to
impose fees on each well for which a permit is issued and which is not
exempt from regulation by the district, but prohibits any fee from
exceeding $0.01 per thousand gallons for groundwater withdrawn for any
purpose.  The bill also prohibits the district from exercising the power of
eminent domain or purchasing, selling, transporting, or distributing
surface water or groundwater (SECTION 5).      

The bill sets forth provisions regarding an election to confirm
establishment of, and the addition of other counties to, the district
(SECTIONS 10 and 11). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 
 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2572 modifies the original to provide that the board may impose a
tax to pay the maintenance and operating expenses of the district if the
tax is approved by a majority of the voters at an election held in the
district for that purpose.  The substitute deletes provisions prohibiting
the district from levying or collecting taxes in the district and from
issuing and selling any type of tax-supported bonds or notes in the name of
the district.