HBA-KDB H.B. 3024 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3024
By: Chisum
Natural Resources
7/19/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, the Panhandle Groundwater Conservation
District (district) was prohibited from engaging in the sale or
distribution of surface or groundwater for any purpose.  In addition, the
district was not authorized to impose a fee on water transported out of the
district. However, if such a fee were imposed, the revenues could be used
to conduct detailed hydrological and predictive modeling studies and
analyses.  House Bill 3024  removes the provision that prohibits the
district from engaging in the sale or distribution of surface or
underground water for any purpose and authorizes the district to impose a
reasonable fee on water transported out of the district. 

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 3024 amends law to remove the provision that prohibits the
Panhandle Groundwater Conservation District (district) from engaging in the
sale or distribution of surface or underground water for any purpose.  The
bill authorizes the district to impose a reasonable fee on water
transported out of the district, not to exceed the amount negotiated
between the district and the  transporter of the water or an amount equal
to either the district's maximum tax rate per $100 of valuation for each
1,000 gallons of water transported out of the district or $0.025 per
thousand gallons of water if the district assesses a tax rate of less than
$0.025 per hundred dollars of valuation.    The bill provides that a
conservation and reclamation district that provides water to five or more
municipalities outside the district and holds a permit granted before March
1, 2001, is not required pay such a fee but is required to pay the district
an amount equal to 60 percent of the district's annually set tax rate per
$100 valuation for each 1,000 gallons of water the conservation and
reclamation district delivers to a municipality located entirely outside
the district beginning on the effective date of the Act.  

EFFECTIVE DATE

September 1, 2001.