BILL ANALYSIS Senate Research Center S.B. 2660 89R12404 ANG-F By: Perry Water, Agriculture and Rural Affairs 4/11/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 2660 amends the enabling legislation of the Hays Trinity Groundwater Conservation District (HTGCD), which was created and ratified by the Texas Legislature in 1999 and 2001 to manage, protect, and regulate pumping from the Trinity Aquifer in the western half of Hays County. From its inception, HTGCD has been hamstrung in doing its job because of an inadequate and unreliable funding structure and special-interest provisions in its enabling statute that deviate from the standard provisions of Chapter 36, Water Code, and other general law governing groundwater conservation districts in Texas. Hays County is among the fastest growing counties in the nation, which has placed tremendous pressure on the Trinity Aquifer. S.B. 2660 is intended to equip HTGCD to properly manage the aquifer and protect the property rights of Hays County landowners. S.B. 2660 authorizes HTGCD to assess pumpage fees under Chapter 36, Water Code, on permitted wells, such as public water supply system, commercial, and industrial wells. The pumpage fees are capped using the same fee cap that the legislature approved last session for the eastern half of Hays County that is located in the Barton Springs Edwards Aquifer Conservation District, so that everyone in Hays County is on equal footing with regard to the cost per unit of producing groundwater from the Trinity Aquifer. This bill prohibits HTGCD from assessing production fees on wells used for agricultural use or domestic and household wells that are exempt from the requirement to obtain a permit. Secondly, by repealing a number of provisions that deviate from Chapter 36 and other general laws applicable to groundwater conservation districts, the bill gives HTGCD the same standard management and regulatory authority applicable to most groundwater conservation districts in Texas, so that it can do the job of managing the aquifer that the legislature created it to do. As proposed, S.B. 2660 amends current law relating to the Hays Trinity Groundwater Conservation District and authorizes a fee. 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 8843.153, Special District Local Laws Code, as follows: Sec. 8843.153. New heading: TAXES PROHIBITED. Deletes existing text prohibiting Hays Trinity Groundwater Conservation District (district), notwithstanding Section 8843.101 (Groundwater Conservation District Powers and Duties) or Subchapter G (District Revenues), Chapter 36 (Groundwater Conservation Districts), Water Code, from assessing or collecting any fees except as authorized by certain sections. Makes nonsubstantive changes. SECTION 2. Amends Subchapter D, Chapter 8843, Special District Local Laws Code, by adding Section 8843.1511, as follows: Sec. 8843.1511. PRODUCTION FEE. (a) Authorizes the district to assess a production fee as provided by Section 36.205 (Authority to Set Fees), Water Code. (b) Prohibits a fee assessed under this section from exceeding the greater of 38 cents per 1,000 gallons of groundwater withdrawn or the raw surface water cost of other wholesale water suppliers providing water to customers in the district. (c) Authorizes the district to use revenues generated by fees assessed under this section for any lawful purpose. (d) Provides that this section does not apply to a well used exclusively for an agricultural use, as defined by Section 36.001 (Definitions), Water Code, or a well that is exempt under district rules. SECTION 3. Repealers: Sections 8843.055 (Board Vacancy) and 8843.057 (Compensation; Expenses), Special District Local Laws Code. Repealers: Sections 8843.103 (Well Construction Notification) and 8843.104 (Exempt Wells), Special District Local Laws Code. Repealers: Sections 8843.105 (Standards for Residential Wells) and 8843.106 (Elections Other Than Directors' Elections), Special District Local Laws Code. Repealer: Section 8843.154 (Budget), Special District Local Laws Code. SECTION 4. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2660
89R12404 ANG-F By: Perry
Water, Agriculture and Rural Affairs
4/11/2025
As Filed
Senate Research Center
S.B. 2660
89R12404 ANG-F
By: Perry
Water, Agriculture and Rural Affairs
4/11/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
S.B. 2660 amends the enabling legislation of the Hays Trinity Groundwater Conservation District (HTGCD), which was created and ratified by the Texas Legislature in 1999 and 2001 to manage, protect, and regulate pumping from the Trinity Aquifer in the western half of Hays County. From its inception, HTGCD has been hamstrung in doing its job because of an inadequate and unreliable funding structure and special-interest provisions in its enabling statute that deviate from the standard provisions of Chapter 36, Water Code, and other general law governing groundwater conservation districts in Texas. Hays County is among the fastest growing counties in the nation, which has placed tremendous pressure on the Trinity Aquifer. S.B. 2660 is intended to equip HTGCD to properly manage the aquifer and protect the property rights of Hays County landowners.
S.B. 2660 authorizes HTGCD to assess pumpage fees under Chapter 36, Water Code, on permitted wells, such as public water supply system, commercial, and industrial wells. The pumpage fees are capped using the same fee cap that the legislature approved last session for the eastern half of Hays County that is located in the Barton Springs Edwards Aquifer Conservation District, so that everyone in Hays County is on equal footing with regard to the cost per unit of producing groundwater from the Trinity Aquifer. This bill prohibits HTGCD from assessing production fees on wells used for agricultural use or domestic and household wells that are exempt from the requirement to obtain a permit.
Secondly, by repealing a number of provisions that deviate from Chapter 36 and other general laws applicable to groundwater conservation districts, the bill gives HTGCD the same standard management and regulatory authority applicable to most groundwater conservation districts in Texas, so that it can do the job of managing the aquifer that the legislature created it to do.
As proposed, S.B. 2660 amends current law relating to the Hays Trinity Groundwater Conservation District and authorizes a fee.
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 8843.153, Special District Local Laws Code, as follows:
Sec. 8843.153. New heading: TAXES PROHIBITED. Deletes existing text prohibiting Hays Trinity Groundwater Conservation District (district), notwithstanding Section 8843.101 (Groundwater Conservation District Powers and Duties) or Subchapter G (District Revenues), Chapter 36 (Groundwater Conservation Districts), Water Code, from assessing or collecting any fees except as authorized by certain sections. Makes nonsubstantive changes.
SECTION 2. Amends Subchapter D, Chapter 8843, Special District Local Laws Code, by adding Section 8843.1511, as follows:
Sec. 8843.1511. PRODUCTION FEE. (a) Authorizes the district to assess a production fee as provided by Section 36.205 (Authority to Set Fees), Water Code.
(b) Prohibits a fee assessed under this section from exceeding the greater of 38 cents per 1,000 gallons of groundwater withdrawn or the raw surface water cost of other wholesale water suppliers providing water to customers in the district.
(c) Authorizes the district to use revenues generated by fees assessed under this section for any lawful purpose.
(d) Provides that this section does not apply to a well used exclusively for an agricultural use, as defined by Section 36.001 (Definitions), Water Code, or a well that is exempt under district rules.
SECTION 3. Repealers: Sections 8843.055 (Board Vacancy) and 8843.057 (Compensation; Expenses), Special District Local Laws Code.
Repealers: Sections 8843.103 (Well Construction Notification) and 8843.104 (Exempt Wells), Special District Local Laws Code.
Repealers: Sections 8843.105 (Standards for Residential Wells) and 8843.106 (Elections Other Than Directors' Elections), Special District Local Laws Code.
Repealer: Section 8843.154 (Budget), Special District Local Laws Code.
SECTION 4. Effective date: upon passage or September 1, 2025.