BILL ANALYSIS Senate Research Center S.B. 1055 89R5944 SCR-D By: Nichols Water, Agriculture and Rural Affairs 4/11/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The Southeast Texas Groundwater Conservation District (district) was created, authorized, and enacted by the passage of S.B. 1888 during the 78th Legislature, Regular Session, 2003. The district consists of four countiesJasper, Newton, Hardin, and Tylerand covers approximately 3,685 square miles. It is estimated to be the 11th largest groundwater district in Texas. Since the district began collecting production fees, which is the source of revenue, it has maintained a rate of $0.07 per thousand gallons. Only recently has the district increased the production fee rate, which will begin in the fourth quarter 2022. The new rate will be 1 cent per 1,000 gallons the maximum it can charge. It cannot levy a tax. The district has only one full-time employee and no part-time employees. S.B. 1055 would allow the Southeast Texas Groundwater Conservation District to raise the production fee rate from 1 cent per 1,000 gallons to 7 cents per 1,000 gallons. Other groundwater conservation districts throughout the state have production fees as high as 22 cents per 1,000 gallons. Nearby groundwater conservation districts have higher production fees (actual current fees - not maximum allowed by legislation): Southeast Texas GCD currently 0.7 cents per 1,000 gallons maximum 1 cent Pinewoods GCD currently 2.5 cents per 1,000 gallons maximum 2.5 cents Lower Trinity GCD currently 4.0 cents per 1,000 gallons maximum 5 cents Lone Star GCD currently 8.5 cents per 1,000 gallons maximum no max limit Bluebonnet GCD currently 4.5 cents per 1,000 gallons maximum 17 cents Brazoria County GCD currently 3.0 cents per 1,000 gallon maximum 17 cents Prairielands GCD currently 20 cents per 1,000 gallons maximum 30 cents Upper Trinity GCD currently 22 cents per 1,000 gallons maximum 30 cents As proposed, S.B. 1055 amends current law relating to permit fees for groundwater wells imposed by the Southeast Texas Groundwater Conservation District. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 8868.153(c), Special District Local Laws Code, to prohibit the fee on a well in the Southeast Texas Groundwater Conservation District from exceeding seven cents, rather than one cent, per thousand gallons of groundwater withdrawn for any purpose. SECTION 2. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1055
89R5944 SCR-D By: Nichols
Water, Agriculture and Rural Affairs
4/11/2025
As Filed
Senate Research Center
S.B. 1055
89R5944 SCR-D
By: Nichols
Water, Agriculture and Rural Affairs
4/11/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The Southeast Texas Groundwater Conservation District (district) was created, authorized, and enacted by the passage of S.B. 1888 during the 78th Legislature, Regular Session, 2003. The district consists of four countiesJasper, Newton, Hardin, and Tylerand covers approximately 3,685 square miles. It is estimated to be the 11th largest groundwater district in Texas.
Since the district began collecting production fees, which is the source of revenue, it has maintained a rate of $0.07 per thousand gallons. Only recently has the district increased the production fee rate, which will begin in the fourth quarter 2022. The new rate will be 1 cent per 1,000 gallons the maximum it can charge. It cannot levy a tax. The district has only one full-time employee and no part-time employees.
S.B. 1055 would allow the Southeast Texas Groundwater Conservation District to raise the production fee rate from 1 cent per 1,000 gallons to 7 cents per 1,000 gallons.
Other groundwater conservation districts throughout the state have production fees as high as 22 cents per 1,000 gallons. Nearby groundwater conservation districts have higher production fees (actual current fees - not maximum allowed by legislation):
Southeast Texas GCD currently 0.7 cents per 1,000 gallons maximum 1 cent
Pinewoods GCD currently 2.5 cents per 1,000 gallons maximum 2.5 cents
Lower Trinity GCD currently 4.0 cents per 1,000 gallons maximum 5 cents
Lone Star GCD currently 8.5 cents per 1,000 gallons maximum no max limit
Bluebonnet GCD currently 4.5 cents per 1,000 gallons maximum 17 cents
Brazoria County GCD currently 3.0 cents per 1,000 gallon maximum 17 cents
Prairielands GCD currently 20 cents per 1,000 gallons maximum 30 cents
Upper Trinity GCD currently 22 cents per 1,000 gallons maximum 30 cents
Southeast Texas GCD
currently 0.7 cents per 1,000 gallons
maximum
1 cent
Pinewoods GCD
currently 2.5 cents per 1,000 gallons
maximum
2.5 cents
Lower Trinity GCD
currently 4.0 cents per 1,000 gallons
maximum
5 cents
Lone Star GCD
currently 8.5 cents per 1,000 gallons
maximum
no max limit
Bluebonnet GCD
currently 4.5 cents per 1,000 gallons
maximum
17 cents
Brazoria County GCD
currently 3.0 cents per 1,000 gallon
maximum
17 cents
Prairielands GCD
currently 20 cents per 1,000 gallons
maximum
30 cents
Upper Trinity GCD
currently 22 cents per 1,000 gallons
maximum
30 cents
As proposed, S.B. 1055 amends current law relating to permit fees for groundwater wells imposed by the Southeast Texas Groundwater Conservation District.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 8868.153(c), Special District Local Laws Code, to prohibit the fee on a well in the Southeast Texas Groundwater Conservation District from exceeding seven cents, rather than one cent, per thousand gallons of groundwater withdrawn for any purpose.
SECTION 2. Effective date: upon passage or September 1, 2025.