HBA-LJP C.S.H.B. 3625 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3625 By: Green Natural Resources 4/16/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Texas faces a difficult challenge to develop water policies that serve both 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. 3625 ratifies the creation of the Hays Trinity Groundwater Conservation District, subject to voter 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. ANALYSIS C.S.H.B. 3625 ratifies the creation of the Hays Trinity Groundwater Conservation District (district), 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 from five single-member districts and sets forth provisions regarding the qualifications, election, and terms of the directors. The bill sets forth provisions regarding an election to confirm the establishment of the district and provides that any other elections held by the district must be scheduled to coincide with a general election in May or November (SECTIONS 7-11, and 14). The bill prohibits the district from entering property to inspect an exempt well without the property owner's permission or adopting standards for the construction of a residential well that are more stringent than state standards for a residential well. The bill also authorizes the Hays County Commissioners Court (court) by resolution to require an election to affirm or reverse a decision by the board of directors not later than six months after the date of the decision (SECTION 4). The bill provides that a well used for domestic purposes by a single private residential household producing less than 25,000 gallons per day and a well used for conventional farming and ranching activities, excluding such intensive operations as aquaculture, livestock feedlots, or poultry operations is exempt from requirements relating to groundwater conservation districts. The bill prohibits the district from requiring a permit to construct exempt wells (SECTION 5). The bill authorizes the court to request a general audit of the performance of the district or an audit of only one or more district matters and requires the county auditor to audit the performance of the district at the written request of the court (SECTION 6). Except for water utilities that have surface water as the sole source of water, the bill authorizes the district to levy and collect a water utility service connection fee not to exceed $300 for each new water service connection made. The bill authorizes the district to require a permit for the construction of each new well and to charge and collect a construction permit fee not to exceed $300. The bill prohibits the district from imposing a tax or assessing or collecting any additional fees (SECTION 12). The bill provides that if the creation of the district is not confirmed at the election, this Act expires September 1, 2003 (SECTION 14). EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3625 modifies the original to provide that the five directors of the governing board of the Hays Trinity Groundwater Conservation District are elected from five single-member districts and to remove provisions regarding the residency requirements and the appointment of the directors. The substitute sets forth additional provisions regarding the qualifications, the election, and terms of the directors (SECTIONS 7-10). The substitute provides that any other elections held by the Hays Trinity Groundwater Conservation District (district) must be scheduled to coincide with a general election in May or November (SECTION 11). The substitute prohibits the district from imposing a tax or assess or collect any additional fees (SECTION 12). The substitute also removes a provision from the original which authorized the district to limit or prohibit the transfer of groundwater out of the district.