The bill would repeal sections of the Water Code relating to a groundwater conservation district's authority, including authority to purchase, sell, transport, and distribute surface water or groundwater for any purpose and the power to exercise eminent domain. The changes would not affect contracts entered into prior to the effective date of the bill, nor would the changes affect eminent domain actions initiated before the effective date.

The bill would take effect September 1, 2003.

According to the Texas Groundwater Conservation Association, the Harris-Galveston Coastal Subsidence District, and the Bee Groundwater Conservation District, there would be little or no fiscal impact as a result of implementation of the provisions of the bill. The Edwards Aquifer Authority, however, indicated unknown but significant costs associated with the repeal of powers of eminent domain.