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


Office of House Bill AnalysisC.S.H.B. 3024
By: Chisum
Natural Resources
4/11/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, the Panhandle Groundwater Conservation District
(district) is prohibited from engaging in the sale or distribution of
surface or groundwater for any purpose.  In addition, the  district is 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.
C.S.H.B. 3024 r 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

C.S.H.B. 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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3024 modifies the original bill by providing that the provisions
relating to water control and improvement districts do not apply to the
Panhandle Groundwater Conservation District (district).  The substitute
modifies the original bill by authorizing the district to impose a
reasonable fee on water transported out of the district, not to exceed an
amount equal to $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 substitute adds new language to  provide that a conservation and
reclamation district that provides water to five or municipalities outside
the district and holds a permit granted before March 1, 2001, is not
required pay the fee set forth by the district 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.  The
substitute sets forth the applicability of such a fee or amount on the
effective date of the Act.  The substitute makes technical corrections
regarding the State Board of Water Engineers.