HBA-LJP C.S.H.B. 2046 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2046 By: Hawley Natural Resources 4/3/2001 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. 2046 ratifies the creation of the Refugio Groundwater Conservation District (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. 2046 ratifies the creation of the Refugio Groundwater Conservation District (district), subject to voter approval at a confirmation election. The bill provides that the district is governed by a board of directors and sets forth provisions regarding the administration of the board and the election, qualifications, and terms of the directors. The bill provides that the board is composed of five members, one from each of the county commissioners precincts and one member from the entire district. The bill sets forth provisions regarding an election to confirm the establishment of the district. The bill authorizes the district to impose fees for administrative acts of the district, services provided outside the boundaries of the district, and the production of water, including water produced for injection into a geological formation for the recovery of oil or natural gas. Production fees may not exceed one dollar per acre foot for water used for agriculture or ten dollars per acre foot per annum for water used for any other purpose. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2046 modifies the original to authorize the Refugio Groundwater Conservation District (district) to impose certain fees and set forth provisions relating to those fees. The substitute removes the requirement of the district to prohibit the sale of groundwater outside the district as well as prohibiting the district from forbidding the sale of groundwater outside the district by Refugio County.