LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 1, 2011 TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1730 by Ritter (Relating to the vested ownership interest in groundwater beneath the surface and the right to produce that groundwater.), As Introduced No fiscal implication to the State is anticipated. The bill would amend the Water Code to grant a landowner, or the landowners lessee or assign a vested interest and the right to produce groundwater below the surface of the landowners real property, except as the rights and interests may be reasonably limited by a groundwater and conservation districts rules. The bill would prohibit a districts rules from discriminating between a property owner or the owners lessee or assign, whose land is irrigated for production or was previously irrigated for production and is now participating in a federal conservation program. The board of a groundwater conservation district would be required to consider and protect the rights and interests, defined by Section 36.002 of the Water Code, while reviewing the management plans. Local Government Impact According to the Live Oak Underground Water Conservation District and the Bee Groundwater Conservation District, there could be a significant fiscal impact, but it would vary depending on the number of lawsuits filed that could result from the provisions of the bill. The districts also noted that there is no way to determine the impact of the bill; it could cost $0 or it could cost $500,000 or more. Source Agencies:580 Water Development Board LBB Staff: JOB, TP, SZ LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 1, 2011 TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1730 by Ritter (Relating to the vested ownership interest in groundwater beneath the surface and the right to produce that groundwater.), As Introduced TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE: HB1730 by Ritter (Relating to the vested ownership interest in groundwater beneath the surface and the right to produce that groundwater.), As Introduced Honorable Allan Ritter, Chair, House Committee on Natural Resources Honorable Allan Ritter, Chair, House Committee on Natural Resources John S O'Brien, Director, Legislative Budget Board John S O'Brien, Director, Legislative Budget Board HB1730 by Ritter (Relating to the vested ownership interest in groundwater beneath the surface and the right to produce that groundwater.), As Introduced HB1730 by Ritter (Relating to the vested ownership interest in groundwater beneath the surface and the right to produce that groundwater.), As Introduced No fiscal implication to the State is anticipated. No fiscal implication to the State is anticipated. The bill would amend the Water Code to grant a landowner, or the landowners lessee or assign a vested interest and the right to produce groundwater below the surface of the landowners real property, except as the rights and interests may be reasonably limited by a groundwater and conservation districts rules. The bill would prohibit a districts rules from discriminating between a property owner or the owners lessee or assign, whose land is irrigated for production or was previously irrigated for production and is now participating in a federal conservation program. The board of a groundwater conservation district would be required to consider and protect the rights and interests, defined by Section 36.002 of the Water Code, while reviewing the management plans. Local Government Impact According to the Live Oak Underground Water Conservation District and the Bee Groundwater Conservation District, there could be a significant fiscal impact, but it would vary depending on the number of lawsuits filed that could result from the provisions of the bill. The districts also noted that there is no way to determine the impact of the bill; it could cost $0 or it could cost $500,000 or more. Source Agencies: 580 Water Development Board 580 Water Development Board LBB Staff: JOB, TP, SZ JOB, TP, SZ