By Yost H.B. No. 2294
74R7546 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of groundwater.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. The caption of Title 2, Water Code, is amended to
1-5 read as follows:
1-6 TITLE 2. <STATE> WATER ADMINISTRATION
1-7 SECTION 2. Title 2, Water Code, is amended by adding
1-8 Subtitle E, as follows:
1-9 SUBTITLE E. GROUNDWATER MANAGEMENT
1-10 CHAPTER 35. GROUNDWATER STUDIES
1-11 Sec. 35.001. PURPOSE. In order to provide for the
1-12 conservation, preservation, protection, recharging, and prevention
1-13 of waste of the groundwater, of groundwater reservoirs or their
1-14 subdivisions, and to control subsidence caused by withdrawal of
1-15 water from those groundwater reservoirs or their subdivisions,
1-16 consistent with the objectives of Article XVI, Section 59, of the
1-17 Texas Constitution, groundwater management areas may be created as
1-18 provided by this chapter.
1-19 Sec. 35.002. DEFINITIONS. In this chapter:
1-20 (1) "District" means any district or authority created
1-21 under Article III, Section 52 or Article XVI, Section 59 of the
1-22 Texas constitution that has the authority to regulate the spacing
1-23 of water wells, the production from water wells, or both.
1-24 (2) "Commission" means the Texas Natural Resource
2-1 Conservation Commission.
2-2 (3) "Executive director" means the executive director
2-3 of the commission.
2-4 (4) "Executive administrator" means the executive
2-5 administrator of the Texas Water Development Board.
2-6 (5) "Groundwater" means water percolating below the
2-7 surface of the earth.
2-8 (6) "Groundwater reservoir" means a specific
2-9 subsurface water-bearing reservoir having ascertainable boundaries
2-10 containing groundwater.
2-11 (7) "Subdivision of a groundwater reservoir" means a
2-12 definable part of a groundwater reservoir in which the groundwater
2-13 supply will not be measurably affected by withdrawing water from
2-14 any other part of the reservoir, as indicated by known geological
2-15 and hydrological conditions and relationships and on foreseeable
2-16 economic development at the time the subdivision is designated or
2-17 altered.
2-18 (8) "Waste" means any one or more of the following:
2-19 (A) withdrawal of groundwater from a groundwater
2-20 reservoir at a rate and in an amount that causes or threatens to
2-21 cause intrusion into the reservoir of water unsuitable for
2-22 agricultural, gardening, domestic, or stock raising purposes;
2-23 (B) the flowing or producing of wells from a
2-24 groundwater reservoir if the water produced is not used for a
2-25 beneficial purpose;
2-26 (C) escape of groundwater from a groundwater
2-27 reservoir to any other reservoir or geologic strata that does not
3-1 contain groundwater;
3-2 (D) pollution or harmful alteration of
3-3 groundwater in a groundwater reservoir by salt water, other
3-4 deleterious matter admitted from another stratum, or from the
3-5 surface of the ground;
3-6 (E) wilfully or negligently causing, suffering,
3-7 or allowing groundwater to escape into any river, creek, natural
3-8 watercourse, depression, lake, reservoir, drain, sewer, street,
3-9 highway, road, or road ditch, or onto any land other than that of
3-10 the owner of the well; or
3-11 (F) groundwater pumped for irrigation that
3-12 escapes as irrigation tailwater onto land other than that of the
3-13 owner of the well unless permission has been granted by the
3-14 occupant of the land receiving the discharge.
3-15 (9) "Use for a beneficial purpose" means use for:
3-16 (A) agricultural, gardening, domestic, stock
3-17 raising, municipal, mining, manufacturing, industrial, commercial,
3-18 recreational, or pleasure purposes;
3-19 (B) exploring for, producing, handling, or
3-20 treating oil, gas, sulphur, or other minerals; or
3-21 (C) any other purpose that is useful and
3-22 beneficial to the user.
3-23 (10) "Subsidence" means the lowering in elevation of
3-24 the land surface caused by withdrawal of groundwater.
3-25 (11) "Board" means the board of directors of a
3-26 district.
3-27 (12) "Director" means a member of a board.
4-1 (13) "Management area" means an area designated and
4-2 delineated by the commission as an area suitable for management of
4-3 groundwater resources.
4-4 (14) "Critical area" means an area designated and
4-5 delineated by the commission as an area that is experiencing or is
4-6 expected to experience critical groundwater problems.
4-7 (15) "Political subdivision" means a county,
4-8 municipality, or other body politic or corporate of the state,
4-9 including a district or authority created under Article III,
4-10 Section 52 or Article XVI, Section 59, of the Texas Constitution, a
4-11 state agency, or a nonprofit water supply corporation created under
4-12 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
4-13 (Article 1434a, Vernon Texas Civil Statutes).
4-14 Sec. 35.003. SURFACE WATER LAWS NOT APPLICABLE. The laws
4-15 and administrative rules relating to the use of surface water do
4-16 not apply to groundwater.
4-17 Sec. 35.004. DESIGNATION OF MANAGEMENT AREAS. (a) On its
4-18 own motion from time to time, or on receiving a petition, the
4-19 commission may designate groundwater management areas. Each
4-20 management area shall be designated with the objective of providing
4-21 the most suitable area for the management of the groundwater
4-22 resources. To the extent feasible, the management area shall
4-23 coincide with the boundaries of an groundwater reservoir or a
4-24 subdivision of an groundwater reservoir. The commission also may
4-25 consider other factors, including the boundaries of political
4-26 subdivisions.
4-27 (b) On the request of any person interested in the petition,
5-1 or on the request of the commission, the executive director shall
5-2 prepare available evidence relating to the configuration of a
5-3 groundwater management area. Before making the designation, the
5-4 commission shall consider the evidence prepared by the executive
5-5 director and other evidence submitted at the hearing.
5-6 (c) The commission may alter the boundaries of designated
5-7 management areas as required by future conditions and as justified
5-8 by factual data. An alteration of boundaries does not invalidate
5-9 the previous creation of any district.
5-10 (d) The commission shall designate groundwater management
5-11 areas using the procedures applicable to rule making under the
5-12 Administrative Procedure Act, Subchapter B, Chapter 2001,
5-13 Government Code.
5-14 Sec. 35.005. PETITION TO DESIGNATE A GROUNDWATER MANAGEMENT
5-15 AREA. (a) A petition may be submitted to the commission for the
5-16 sole purpose of requesting that the commission designate a
5-17 management area for all or part of one or more counties.
5-18 (b) A petition filed pursuant to this section must be signed
5-19 by:
5-20 (1) a majority of the landowners in the proposed
5-21 management area; or
5-22 (2) if there are more than 50 landowners in the
5-23 proposed management area, the petition must be signed by at least
5-24 50 of those landowners.
5-25 (c) A petition filed pursuant to this section must contain
5-26 the following statement:
5-27 "Petitioners request that the Texas Natural Resource
6-1 Conservation Commission designate a groundwater management area to
6-2 include all or part of ______________ County (counties). The
6-3 management area shall be designated with the objective of providing
6-4 the most suitable area for the management of groundwater resources
6-5 of the part of the state in which a district is to be located.
6-6 Petitioners understand that this petition requests only the
6-7 designation of a management area, but that all or part of the land
6-8 in the management area designated may later be added to an existing
6-9 groundwater conservation district or become a new groundwater
6-10 conservation district, as provided by Chapter 36 of the Water
6-11 Code."
6-12 (d) A petition shall include a map that shows the location
6-13 of the proposed management area and may include any other
6-14 information desired by the petitioners concerning the proposed
6-15 management area.
6-16 (e) The petitioners shall file the petition with the
6-17 executive director for review in accordance with the rules of the
6-18 commission. The petitioners shall supply any additional
6-19 information requested by the commission or the executive director.
6-20 (f) The commission shall act on the petition within a
6-21 reasonable amount of time.
6-22 Sec. 35.006. NOTICE FOR DESIGNATION OF MANAGEMENT AREA. (a)
6-23 In addition to the notice required under the Administrative
6-24 Procedure Act, Section 2001.023, Government Code, the petitioners
6-25 shall have notice published in at least one newspaper with general
6-26 circulation in the county or counties in which the proposed
6-27 management area is to be located. Notice must be published not
7-1 later than the 30th day before the date set for the commission to
7-2 consider the designation of the management area.
7-3 (b) The notice must include:
7-4 (1) a statement of the general purpose and effect of
7-5 designating the proposed management area;
7-6 (2) a map generally outlining the boundaries of the
7-7 proposed management area or notice of the location at which a copy
7-8 of the map may be examined or obtained; and
7-9 (3) the time and place at which the commission will
7-10 consider the designation of the management area.
7-11 (c) If the commission designates a management area on its
7-12 own motion, the commission shall give the same notice as required
7-13 by the petitioner under this section.
7-14 Sec. 35.007. IDENTIFYING, DESIGNATING AND DELINEATING
7-15 CRITICAL AREAS. (a) The executive director and the executive
7-16 administrator shall meet at least once a year to identify those
7-17 areas of the state that are experiencing or that are expected to
7-18 experience, based on information available to the commission and
7-19 the Texas Water Development Board, within the immediately following
7-20 20-year period, critical groundwater problems including shortages
7-21 of surface or groundwater, land subsidence resulting from
7-22 groundwater withdrawal, and contamination of groundwater supplies.
7-23 (b) If the executive director concludes that an area of the
7-24 state should be considered for designation as a critical area, the
7-25 executive director shall prepare a report to the commission.
7-26 (c) The executive director shall begin preparation of a
7-27 critical area report by requesting a study from the executive
8-1 administrator. The study must include an appraisal of the
8-2 hydrogeology of the area and matters within the Texas Water
8-3 Development Board's planning expertise relevant to the area. The
8-4 study must be completed and delivered to the executive director on
8-5 or before the 90th day following the date of the request. If the
8-6 study is not delivered within this 90-day period, the executive
8-7 director may proceed with the preparation of the report.
8-8 (d) The report shall include:
8-9 (1) the recommended delineation of the boundaries of
8-10 any proposed critical area in the form of a rule to be considered
8-11 for adoption by the commission;
8-12 (2) the reasons and supporting information for or
8-13 against designating the area as a critical area;
8-14 (3) a recommendation regarding whether a district
8-15 should be created in the critical area or whether the critical area
8-16 should be added to an existing district;
8-17 (4) any other information that the executive director
8-18 considers helpful to the commission.
8-19 (e) The executive director must complete the report and file
8-20 it with the commission on or before the 210th day following the
8-21 date on which the executive administrator was requested to produce
8-22 a study. The executive director shall make the report available
8-23 for public inspection by providing a copy of the report to at least
8-24 one library in each county in which the proposed critical area is
8-25 located.
8-26 (f) To carry out this section, the executive director may
8-27 make necessary studies, hold hearings, solicit and collect
9-1 information, and use information already prepared by the executive
9-2 director or the executive administrator for other purposes.
9-3 Sec. 35.008. PROCEDURES FOR DESIGNATION OF CRITICAL AREAS.
9-4 (a) The commission shall designate critical areas using the
9-5 procedures applicable to rule making under the Administrative
9-6 Procedure Act, Subchapter B, Chapter 2001, Government Code, but if
9-7 procedures required by this chapter are in conflict with that Act,
9-8 this chapter controls.
9-9 (b) The designation of a critical area may not be appealed
9-10 nor may it be challenged under the Administrative Procedure Act,
9-11 Section 2001.038, Government Code.
9-12 Sec. 35.009. NOTICE AND HEARING. (a) In addition to the
9-13 notice required for rule making under the Administrative Procedure
9-14 Act, Sec. 2001.023, Government Code, the commission shall have
9-15 notice published in at least one newspaper with general circulation
9-16 in the county or counties in which the proposed critical area is to
9-17 be located. Notice must be published not later than the 30th day
9-18 before the date set for the commission to consider the designation
9-19 of the critical area.
9-20 (b) The notice must include:
9-21 (1) a statement of the general purpose and effect of
9-22 designating the proposed critical areas;
9-23 (2) a map generally outlining the boundaries of the
9-24 proposed critical area or notice of the location at which a copy of
9-25 the map may be examined or obtained;
9-26 (3) a description or the name of the locations at
9-27 which the commission has provided copies of the executive
10-1 director's report to be made available for public inspection; and
10-2 (4) the date, time, and place at which the commission
10-3 will consider the designation of the critical areas.
10-4 Sec. 35.010. CONSIDERATION OF THE CREATION OF A DISTRICT OR
10-5 ADDITION OF LAND IN A CRITICAL AREA TO AN EXISTING DISTRICT. (a)
10-6 Following its designation of a critical area, the commission may
10-7 call a hearing to consider:
10-8 (1) whether a district should be created over all or
10-9 part of a critical area; or
10-10 (2) whether all or part of the land in the critical
10-11 area should be added to an existing district.
10-12 (b) Evidentiary hearings shall be held at a location in one
10-13 of the counties in which the critical area is located or in the
10-14 nearest convenient location if adequate facilities are not
10-15 available in the critical area.
10-16 (c) At the hearing, the commission shall hear testimony and
10-17 receive evidence from all interested parties. The commission shall
10-18 consider the executive director's report and supporting information
10-19 and the testimony and evidence received at the hearing. If the
10-20 commission considers further information necessary, it may request
10-21 it from any source.
10-22 Sec. 35.011. NOTICE OF HEARING TO CREATE DISTRICT OR ADD
10-23 CRITICAL AREA TO EXISTING DISTRICT. (a) The commission shall have
10-24 notice of the hearing published in a newspaper with general
10-25 circulation in the county or counties in which the area being
10-26 considered for district creation or addition to an existing
10-27 district is located. Notice must be published not later than the
11-1 30th day before the date of the hearing.
11-2 (b) The notice must include:
11-3 (1) a general statement of the nature and purpose of
11-4 the district that may be created in the critical area;
11-5 (2) if applicable, a statement that all or part of the
11-6 land in the critical area could be added to an existing district;
11-7 (3) a map generally outlining the boundaries of the
11-8 critical area being considered for district creation or addition to
11-9 an existing district or notice of the location at which a copy of
11-10 the map may be examined or obtained;
11-11 (4) a statement that the full executive director's
11-12 report concerning the critical area in question is available at the
11-13 commission's main office in Austin, Texas, and that the report is
11-14 available for inspection during regular business hours;
11-15 (5) the name and address of each library in the
11-16 proposed critical area to which the commission has provided copies
11-17 of the executive director's report; and
11-18 (6) the date, time, and place of the hearing.
11-19 (c) The commission also shall give written notice of the
11-20 date, time, place, and purpose of the hearing to the governing body
11-21 of each county, city, and district created under Article III,
11-22 Sections 52(b)(1) and (2), or Article XVI, Section 59, of the Texas
11-23 Constitution, all or part of which is located in the critical area.
11-24 The notice must be given before the 30th day preceding the date set
11-25 for the hearing.
11-26 Sec. 35.012. COMMISSION ORDER. (a) At the conclusion of
11-27 its hearing and considerations, the commission shall issue an order
12-1 stating its findings and conclusions.
12-2 (b) If the commission finds that the land and other property
12-3 in the critical area would benefit from the creation of one or more
12-4 districts, that there is a public need for one or more districts,
12-5 and that the creation of one or more districts would further the
12-6 public welfare, the commission shall issue an order stating that
12-7 the creation of one or more districts is needed.
12-8 (c) During the period between the date of issuance of a
12-9 commission order under subsection (b) and one year after the close
12-10 of the next regular session of the legislature following the
12-11 issuance of the order, the landowners in the critical area may:
12-12 (1) create one or more districts under Subchapter B of
12-13 Chapter 36;
12-14 (2) have the area annexed to a district that adjoins
12-15 the area; or
12-16 (3) create one or more districts through the
12-17 legislative process.
12-18 (d) The commission shall identify the areas subject to the
12-19 order of the commission issued under subsection (b) that have not,
12-20 in the period provided by subsection (c), been incorporated into a
12-21 district, and shall delineate proposed boundaries of a district to
12-22 include those areas. If the commission proposes the creation of
12-23 one or more districts, the commission shall begin the procedures
12-24 for creation of a district provided in Subchapter B, Chapter 36.
12-25 (e) If the commission fails to find that the district would
12-26 be a benefit to the land and other property within the critical
12-27 area, that there is a public need for the district, or that
13-1 creation of the district will further the public welfare, the
13-2 commission shall issue an order stating that a district should not
13-3 be created within the boundaries of the critical area.
13-4 (f) An order of the commission issued under this section may
13-5 not be appealed.
13-6 Sec. 35.013. ADDING CRITICAL AREA TO EXISTING DISTRICT. (a)
13-7 If land in a critical area is located adjacent to one or more
13-8 existing districts, the commission, instead of issuing an order
13-9 under Section 35.012, may issue an order recommending that the
13-10 critical area be added to the existing district designated by the
13-11 commission. In its order, the commission must find that the land
13-12 and other property in the critical area and the land in the
13-13 existing district will benefit from the addition of the area, that
13-14 there is a public need to add the critical area to the existing
13-15 district, and that the addition of the land to the existing
13-16 district would further the public welfare.
13-17 (b) If the executive director recommends that the critical
13-18 area be added to an existing district or if the commission
13-19 considers it possible to add the critical area to an adjacent
13-20 existing district, the commission shall give notice to the board of
13-21 the existing district recommended by the executive director or
13-22 considered by the commission to possibly serve the area and to any
13-23 other existing districts adjacent to the critical area.
13-24 (c) The commission shall submit a copy of the order to the
13-25 board of the district to which it is recommending the critical area
13-26 be added. The board shall vote on the addition of the critical
13-27 area to the district and shall advise the commission of the
14-1 outcome.
14-2 (d) If the board votes to accept the addition of the
14-3 critical area to the district, the board shall call an election
14-4 within the critical area as delineated by the commission to
14-5 determine if the critical area will be added to the district. In
14-6 the order calling the election, the board shall designate election
14-7 precincts and polling places for the elections.
14-8 (e) The board shall give notice of the election and the
14-9 proposition to be voted on. The board shall publish notice of the
14-10 election at least one time in one or more newspapers with general
14-11 circulation within the boundaries of the critical area. The notice
14-12 must be published before the 30th day preceding the date set for
14-13 the election.
14-14 (f) The ballots for the election shall be printed to provide
14-15 for voting for or against the proposition: "The inclusion of
14-16 __________ (briefly describe critical area) in the __________
14-17 District and assumption by the described area of a proportional
14-18 share of the outstanding indebtedness of the district."
14-19 (g) Immediately after the election, the presiding judge of
14-20 each polling place shall deliver the returns of the election to the
14-21 board, and the board shall canvass the returns for the election
14-22 within the critical area and declare the results. If a majority of
14-23 the voters in the critical area voting on the proposition vote in
14-24 favor of the proposition, the board shall declare that the critical
14-25 area is added to the district. If a majority of the voters in the
14-26 critical area voting on the proposition vote against adding the
14-27 critical area to the district, the board shall declare that the
15-1 critical area is not added to the district. The board shall file a
15-2 copy of the election results with the commission.
15-3 (h) If the voters approve adding the critical area to the
15-4 district, the board of the district to which the critical area is
15-5 added shall provide reasonable representation on that board
15-6 compatible with the district's existing scheme of representation.
15-7 (i) If the proposition is defeated, another election to add
15-8 the critical area to an existing district may not be called before
15-9 the first anniversary of the date on which the election on the
15-10 proposition was held.
15-11 Sec. 35.014. COSTS OF ELECTIONS. (a) The costs of an
15-12 election to create a district at which a district is authorized to
15-13 be created shall be paid by the district.
15-14 (b) The costs of an election to add a critical area to an
15-15 existing district at which the voters approve adding the critical
15-16 area to the district shall be paid by the existing district.
15-17 (c) The costs of an election to create a district or add a
15-18 critical area to an existing district at which the proposition
15-19 fails shall be paid by the commission.
15-20 Sec. 35.015. STATE ASSISTANCE. (a) A city, county, or
15-21 district created under Article III, Section 52(b)(1) and (2), or
15-22 Article XVI, Section 59, of the Texas Constitution located in or
15-23 that has within its boundaries an area or part of an area
15-24 delineated as a critical area, and in which the qualified voters
15-25 fail to approve the creation of a district or to join an existing
15-26 district, shall not be eligible to receive any financial assistance
15-27 from the state under Chapters 15, 16 or 17 for use within that
16-1 portion of the critical area not covered by a district.
16-2 (b) A city, county, or district created under Article III,
16-3 Section 52, or Article XVI, Section 59, of the Texas constitution
16-4 located in an area delineated as a critical area, and in which
16-5 qualified voters approve the creation of a district or annexation
16-6 into an existing district, shall be given consideration to receive
16-7 financial assistance from the state under Chapter 17 for funds to
16-8 be used in addressing issues identified in the critical area report
16-9 in the manner provided by Sections 17.124 and 17.125 except that
16-10 the board is not required to make the finding set out in Section
16-11 17.125(a)(2).
16-12 Sec. 35.016. EXEMPTION FROM CHAPTER. (a) This chapter does
16-13 not apply to any active groundwater conservation district or to
16-14 land within an active groundwater conservation district.
16-15 (b) In this section, "active groundwater conservation
16-16 district" has the same meaning as the term is defined in Section
16-17 36.301(c).
16-18 Sec. 35.017. STATE-OWNED LAND. If state-owned land or a
16-19 portion of state-owned land is located in a critical area, the
16-20 state agency that has management and control over that land under
16-21 the constitution or by statute may elect by written agreement with
16-22 the commission and the district to include the state-owned land in
16-23 the district. The agreement shall be entered into as provided by
16-24 the Texas Intergovernmental Cooperation Act, Chapter 741,
16-25 Government Code, and may include provisions for the payment by the
16-26 state agency of reasonable fees to the district. If the state does
16-27 not elect to enter into the agreement to include the state-owner
17-1 land in the district, the state agency must establish a groundwater
17-2 management plan that will conserve, protect, and prevent the waste
17-3 of groundwater on that state-owned land.
17-4 Sec. 35.018. JOINT PLANNING IN A MANAGEMENT AREA. (a) If
17-5 two or more districts are located within the boundaries of the same
17-6 management area, each district shall prepare a comprehensive
17-7 management plan as required by Section 36.107 covering that
17-8 district's respective territory. On completion of the plan, each
17-9 district shall forward a copy of the new revised management plan to
17-10 the other districts in the management area.
17-11 (b) The board of directors of each district in the
17-12 management area may, by resolution, call a joint meeting with the
17-13 boards of directors of the other districts in the management area
17-14 to review the management plans and accomplishments for the
17-15 management area. The boards shall meet to consider the plans
17-16 individually and shall compare them to other management plans then
17-17 in force in the management area. In reviewing the management
17-18 plans, the boards shall consider:
17-19 (1) the goals of each management plan and its impact
17-20 on planning throughout the management area;
17-21 (2) the effectiveness of the measures established by
17-22 each management plan for conserving and protecting groundwater and
17-23 preventing waste and the effectiveness of these measures in the
17-24 management area generally; and
17-25 (3) any other matters that the boards consider
17-26 relevant to the protection and conservation of groundwater and the
17-27 prevention of waste in the management area.
18-1 (c) A joint meeting of the boards of directors must be held
18-2 in accordance with the Open Meetings Act, Chapter 551, Government
18-3 Code. Notice of the meeting shall be given in accordance with the
18-4 requirements for notice of district board of directors meetings
18-5 under that Act. In addition, notice of the meeting shall be
18-6 published not later than the 30th day before the date of the
18-7 scheduled meeting in a newspaper with general circulation in each
18-8 county in the management area.
18-9 (d) A district in the management area may file a petition
18-10 with the commission requesting an inquiry if the petitioner
18-11 district believes that:
18-12 (1) another district in the management area has failed
18-13 to adopt rules;
18-14 (2) the groundwater in the management area is not
18-15 adequately protected by the rules adopted by another district; or
18-16 (3) the groundwater in the management area is not
18-17 adequately protected due to the failure of another district to
18-18 enforce substantial compliance with its rules.
18-19 (e) Not later than the 90th day after the date the petition
18-20 is filed, the commission shall review the petition and either:
18-21 (1) dismiss it if it finds that the evidence is not
18-22 adequate to show that any of the conditions alleged in the petition
18-23 exist; or
18-24 (2) select a review panel as provided below.
18-25 (f) The commission may appoint a review panel consisting of
18-26 a chairman and four other members. A director or general manager
18-27 of a district located outside the management area that is the
19-1 subject of the petition may be appointed to the review panel. The
19-2 commission may not appoint more than two members of the review
19-3 panel from any one district. The commission also shall appoint a
19-4 disinterested person to serve as a nonvoting recording secretary
19-5 for the review panel. The recording secretary may be an employee
19-6 of the commission. The recording secretary shall record and
19-7 document the proceedings of the panel.
19-8 (g) Not later than the 120th day after appointment, the
19-9 review panel shall review the petition and any evidence relevant to
19-10 the petition and, in a public meeting, prepare a report to the
19-11 commission. The commission may direct the review panel to conduct
19-12 public hearings at a location in the management area to take
19-13 evidence on the petition. The review panel may attempt to
19-14 negotiate a settlement or resolve the dispute by any lawful means.
19-15 (h) In its report, the review panel shall include:
19-16 (1) a summary of all evidence taken in any hearing on
19-17 the petition;
19-18 (2) a list of any actions, including approval of a
19-19 settlement, that it finds are appropriate for the commission to
19-20 take and the reasons it finds those actions appropriate or, if it
19-21 finds that no action by the commission is necessary, the reasons
19-22 why it so finds; and
19-23 (3) any other information the panel considers
19-24 appropriate.
19-25 CHAPTER 36. GROUNDWATER CONSERVATION DISTRICTS
19-26 SUBCHAPTER A. GENERAL PROVISIONS
19-27 Sec. 36.001. DEFINITIONS. In this chapter:
20-1 (1) "District" means any district or authority created
20-2 under Article III, Section 52 or Article XVI, Section 59 of the
20-3 Texas constitution that has the authority to regulate the spacing
20-4 of water wells, the production from water wells, or both.
20-5 (2) "Commission" means the Texas Natural Resource
20-6 Conservation Commission.
20-7 (3) "Executive director" means the executive director
20-8 of the commission.
20-9 (4) "Executive administrator" means the executive
20-10 administrator of the Texas Water Development Board.
20-11 (5) "Groundwater" means water percolating below the
20-12 surface of the earth.
20-13 (6) "Groundwater reservoir" means a specific
20-14 subsurface water-bearing reservoir having ascertainable boundaries
20-15 containing groundwater.
20-16 (7) "Subdivision of a groundwater reservoir" means a
20-17 definable part of a groundwater reservoir in which the groundwater
20-18 supply will not be measurably affected by withdrawing water from
20-19 any other part of the reservoir, as indicated by known geological
20-20 and hydrological conditions and relationships and on foreseeable
20-21 economic development at the time the subdivision is designated or
20-22 altered.
20-23 (8) "Waste" means any one or more of the following:
20-24 (A) withdrawal of groundwater from a groundwater
20-25 reservoir at a rate and in an amount that causes or threatens to
20-26 cause intrusion into the reservoir of water unsuitable for
20-27 agricultural, gardening, domestic, or stock raising purposes;
21-1 (B) the flowing or producing of wells from a
21-2 groundwater reservoir if the water produced is not used for a
21-3 beneficial purpose;
21-4 (C) escape of groundwater from a groundwater
21-5 reservoir to any other reservoir or geologic strata that does not
21-6 contain groundwater;
21-7 (D) pollution or harmful alteration of
21-8 groundwater in a groundwater reservoir by salt water, other
21-9 deleterious matter admitted from another stratum, or from the
21-10 surface of the ground;
21-11 (E) wilfully or negligently causing, suffering,
21-12 or allowing groundwater to escape into any river, creek, natural
21-13 watercourse, depression, lake, reservoir, drain, sewer, street,
21-14 highway, road, or road ditch, or onto any land other than that of
21-15 the owner of the well; or
21-16 (F) groundwater pumped for irrigation that
21-17 escapes as irrigation tailwater onto land other than that of the
21-18 owner of the well unless permission has been granted by the
21-19 occupant of the land receiving the discharge.
21-20 (9) "Use for a beneficial purpose" means use for:
21-21 (A) agricultural, gardening, domestic, stock
21-22 raising, municipal, mining, manufacturing, industrial, commercial,
21-23 recreational, or pleasure purposes;
21-24 (B) exploring for, producing, handling, or
21-25 treating oil, gas, sulphur, or other minerals; or
21-26 (C) any other purpose that is useful and
21-27 beneficial to the user.
22-1 (10) "Subsidence" means the lowering in elevation of
22-2 the land surface caused by withdrawal of groundwater.
22-3 (11) "Board" means the board of directors of a
22-4 district.
22-5 (12) "Director" means a member of a board.
22-6 (13) "Management area" means an area designated and
22-7 delineated by the commission under Chapter 35 as an area suitable
22-8 for management of groundwater resources.
22-9 (14) "Critical area" means an area designated and
22-10 delineated by the commission under Chapter 35 as an area
22-11 experiencing or expected to experience critical groundwater
22-12 problems.
22-13 (15) "Political subdivision" means a county,
22-14 municipality, or other body politic or corporate of the state,
22-15 including a district or authority created under Article III,
22-16 Section 52 or Article XVI, Section 59, of the Texas Constitution, a
22-17 state agency, or a nonprofit water supply corporation created under
22-18 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
22-19 (Article 1434a, Vernon Texas Civil Statutes).
22-20 Sec. 36.002. OWNERSHIP OF GROUNDWATER. The ownership and
22-21 rights of the owners of the land and their lessees and assigns in
22-22 groundwater are hereby recognized, and nothing in this code shall
22-23 be construed as depriving or divesting the owners or their lessees
22-24 and assigns of the ownership or rights, subject to rules
22-25 promulgated by a district.
22-26 (Sections 36.003-36.010 reserved for expansion
22-27 SUBCHAPTER B. CREATION OF DISTRICT.
23-1 Sec. 36.011. METHOD OF CREATING DISTRICT. (a) A
23-2 groundwater conservation district may be created under and subject
23-3 to the authority, conditions, and restrictions of Article XVI,
23-4 Section 59, of the Texas Constitution.
23-5 (b) The commission has exclusive jurisdiction over the
23-6 delineation of management areas and the creation of districts.
23-7 Sec. 36.012. COMPOSITION OF DISTRICT. (a) A district may
23-8 include all or part of one or more counties, cities, districts, or
23-9 other political subdivisions.
23-10 (b) A district may not include territory located in more
23-11 than one county except on a majority vote of the voters residing
23-12 within the territory in each county sought to be included in the
23-13 district at an election called for that purpose.
23-14 (c) The boundaries of a district must be coterminous with or
23-15 inside the boundaries of a management area or a critical area.
23-16 (d) The areas of which a district is composed do not have to
23-17 be contiguous but may consist of separate bodies of land separated
23-18 by land not included in the district.
23-19 (e) A majority of the voters in a segregated area must
23-20 approve the creation of the district before that area may be
23-21 included in the district.
23-22 Sec. 36.013. PETITION TO CREATE DISTRICT. (a) A petition
23-23 requesting creation of a district must be filed with the executive
23-24 director for review and submission to the commission.
23-25 (b) The petition filed pursuant to this section must be
23-26 signed by:
23-27 (1) a majority of the landowners within the proposed
24-1 district, as indicated by the county tax rolls; or
24-2 (2) if there are more than 50 landowners in the
24-3 proposed district, the petition must be signed by at least 50 of
24-4 those landowners.
24-5 (c) The petition must include:
24-6 (1) the name of the proposed district;
24-7 (2) the area and boundaries of the proposed district,
24-8 including a map generally outlining the boundaries of the proposed
24-9 district;
24-10 (3) the purpose or purposes of the district;
24-11 (4) a statement of the general nature of any projects
24-12 proposed to be undertaken by the district, the necessity and
24-13 feasibility of the work, and the estimated costs of those projects
24-14 according to the persons filing the projects if the projects are to
24-15 be funded by the sale of bonds or notes; and
24-16 (5) any additional terms or conditions that restrict
24-17 the powers of the district from those provided in this chapter.
24-18 (d) If a part of the proposed district is not included
24-19 either within a management area or a critical area, the petition to
24-20 create a district may also contain a request to create a management
24-21 area. A request to create a management area must comply with the
24-22 requirements for a petition in Section 35.005, and may be acted on
24-23 by the commission separately from the petition to create the
24-24 district.
24-25 Sec. 36.014. NOTICE AND HEARING ON DISTRICT CREATION. (a)
24-26 The notice of hearing on a petition must include a statement of the
24-27 nature and purpose of the proposed district and the date, time, and
25-1 place of hearing.
25-2 (b) The notice must be posted on the bulletin board used for
25-3 posting legal notices in each county in which all or part of the
25-4 proposed district is to be located.
25-5 (c) Notice of the hearing shall be published in a newspaper
25-6 with general circulation in the county or counties in which the
25-7 proposed district is to be located. Notice must be published no
25-8 later than the 30th day before the date of the hearing.
25-9 (d) If the petition contains a request to create a
25-10 management area in all or part of the proposed district, the notice
25-11 must also be given in accordance with the requirements in Section
25-12 35.006 for the designation of management areas.
25-13 Sec. 36.015. FINDINGS. (a) If the commission finds that a
25-14 district is feasible and practicable, that it would be a benefit to
25-15 the land in the district, and that it would be a public benefit or
25-16 utility, the commission shall issue an order containing these
25-17 findings granting the petition.
25-18 (b) If the commission finds that a district is not feasible
25-19 and practicable, that it would not be a benefit to the land in the
25-20 district, that it would not be a public benefit or utility, or that
25-21 it is not needed, the commission by order shall deny the petition.
25-22 (c) The commission may adjust the boundaries of the proposed
25-23 district to exclude any land that would not be benefited by
25-24 inclusion in the district and is not necessary to the district for
25-25 proper regulation of the groundwater reservoir.
25-26 (d) If the commission grants the petition to create the
25-27 district, it shall direct in its order creating the district that
26-1 an election be called by the temporary directors to confirm the
26-2 creation of the district and to elect permanent directors.
26-3 (e) The refusal to grant a petition to create a district
26-4 does not invalidate or affect the designation of any management
26-5 area requested in the same petition.
26-6 (f) The commission shall act on the petition within a
26-7 reasonable amount of time.
26-8 Sec. 36.016. APPOINTMENT OF TEMPORARY DIRECTORS. (a) If
26-9 the commission grants a petition to create a district, it shall
26-10 appoint five temporary directors who shall serve until the initial
26-11 directors are elected and have qualified for office or until the
26-12 voters fail to approve the creation of the district.
26-13 (b) If an appointee of the commission fails to qualify or if
26-14 a vacancy occurs in the office of temporary director, the
26-15 commission shall appoint an individual to fill the vacancy.
26-16 (c) As soon as all temporary directors have qualified, the
26-17 directors shall meet, take the oath of office, and elect a chairman
26-18 and vice-chairman from among their membership. The chairman shall
26-19 preside at all meetings of the board and, in the chairman's
26-20 absence, the vice-chairman shall preside.
26-21 Sec. 36.017. CONFIRMATION AND DIRECTORS ELECTION. (a) Not
26-22 later than the 60th day after the date all temporary directors have
26-23 been appointed and have qualified, the temporary directors shall
26-24 meet and order an election to be held within the boundaries of the
26-25 proposed district to approve the creation of the district and to
26-26 elect permanent directors.
26-27 (b) In the order calling the election, the temporary
27-1 directors shall designate election precincts and polling places for
27-2 the election. In designating the polling places, the temporary
27-3 directors shall consider the needs of all voters for conveniently
27-4 located polling places.
27-5 (c) The temporary directors shall publish notice of the
27-6 election at least one time in at least one newspaper with general
27-7 circulation within the boundaries of the proposed district. The
27-8 notice must be published before the 30th day preceding the date of
27-9 the election.
27-10 (d) The ballot for the election must be printed to provide
27-11 for voting for or against the proposition: "The creation of
27-12 the ____________ Groundwater Conservation District." If the
27-13 district levies a maintenance tax for payment of its expenses, the
27-14 proposition shall include the following language: "and the levy of
27-15 a maintenance tax at a rate not to exceed ______ cents for each
27-16 $100 of assessed valuation."
27-17 (e) Immediately after the election, the presiding judge of
27-18 each polling place shall deliver the returns of the election to the
27-19 temporary board, and the board shall canvass the returns and
27-20 declare the result. The board shall file a copy of the election
27-21 result with the commission.
27-22 (f) If a majority of the votes cast at the election favor
27-23 the creation of the district, the temporary board shall declare the
27-24 district created and shall enter the result in its minutes.
27-25 (g) If a majority of the votes cast at the election are
27-26 against the creation of the district, the temporary board shall
27-27 declare the district defeated and shall enter the result in its
28-1 minutes.
28-2 (h) If the majority of the votes cast at the election are
28-3 against the creation of the district, the district shall have no
28-4 further authority, except that any debts incurred shall be paid and
28-5 the organization of the district shall be maintained until all the
28-6 debts are paid.
28-7 Sec. 36.018. INCLUSION OF MUNICIPALITY. (a) If part of the
28-8 territory to be included in a district is located in a
28-9 municipality, a separate voting district may not be established in
28-10 the municipality for the purpose of determining whether the
28-11 municipality as a separate area is to be included in the district.
28-12 (b) If for any other reason the territory in a municipality
28-13 is established as a separate voting district, the failure by the
28-14 voters in the municipal territory to confirm the creation of the
28-15 district or the annexation of territory to a district does not
28-16 prevent the territory in the municipality from being included in
28-17 the district.
28-18 Sec. 36.019. CONFIRMATION ELECTION IN DISTRICT INCLUDING
28-19 LAND IN MORE THAN ONE COUNTY. A district, the major portion of
28-20 which is located in one county, may not be organized to include
28-21 land in another county unless the election held in the other county
28-22 to confirm and ratify the creation of the district is approved by a
28-23 majority of the voters of the other county voting in an election
28-24 called for that purpose.
28-25 Sec. 36.020. BOND AND TAX PROPOSAL. (a) At an election to
28-26 create a district, the temporary directors may include a
28-27 proposition for the issuance of bonds or notes, the levy of taxes
29-1 to retire all or part of the bonds or notes, and the levy of a
29-2 maintenance tax. The maintenance tax rate may not exceed 50 cents
29-3 on each $100 of assessed valuation.
29-4 (b) The board shall include in any bond and tax proposition
29-5 the maximum amount of bonds or notes to be issued and their maximum
29-6 maturity date.
29-7 Sec. 36.021. NOTIFICATION OF COUNTY CLERK. Within 30 days
29-8 following the creation of a district or any amendment to the
29-9 boundaries of a district, the board of directors shall file with
29-10 the county clerk of each county in which all or part of the
29-11 district is located a certified copy of the description of the
29-12 boundaries of the district. Each county clerk shall record the
29-13 certified copy of the boundaries in the property records of that
29-14 county.
29-15 (Sections 36.022-36.050 reserved for expansion
29-16 SUBCHAPTER C. ADMINISTRATION
29-17 Sec. 36.051. BOARD OF DIRECTORS. (a) The governing body of
29-18 a district is the board of directors, which shall consist of not
29-19 fewer than five and not more than 11 directors elected for
29-20 four-year terms. The number of directors may be changed as
29-21 determined by the board when territory is annexed by the district.
29-22 (b) A member of a governing body of another political
29-23 subdivision is ineligible for appointment or election as a
29-24 director. A director is disqualified and vacates the office of
29-25 director if the director is appointed or elected as a member of the
29-26 governing body of another political subdivision. This subsection
29-27 does not apply to any district with a population less than 50,000.
30-1 (c) Vacancies in the office of director shall be filled by
30-2 appointment of board. If the vacant office is not scheduled for
30-3 election for longer than two years at the time of the appointment,
30-4 the board shall order an election for the unexpired term to be held
30-5 as part of the next regularly scheduled director's election. The
30-6 appointed director's term shall end upon qualification of the
30-7 director elected at that election.
30-8 Sec. 36.052. OTHER LAWS NOT APPLICABLE. Other laws
30-9 governing the administration or operations of districts created
30-10 under Article III, Section 52 or Article XVI, Section 59 of the
30-11 Texas constitution shall not apply to any district governed by this
30-12 chapter. This chapter prevails over any other law in conflict or
30-13 inconsistent with this chapter, except any law governing a specific
30-14 district shall prevail over this chapter.
30-15 Sec. 36.053. QUORUM. A majority of the membership of the
30-16 board constitutes a quorum for any meeting, and a concurrence of a
30-17 majority of the entire membership of the board is sufficient for
30-18 transacting any business of the district.
30-19 Sec. 36.054. OFFICERS. (a) After a district is created and
30-20 the directors have qualified, the board shall meet, elect a
30-21 president, vice-president, secretary, and any other officers or
30-22 assistant officers as the board may deem necessary and begin the
30-23 discharge of its duties.
30-24 (b) After each directors election, the board shall meet and
30-25 elect officers.
30-26 (c) The president is the chief executive officer of the
30-27 district, presides at all meetings of the board, and shall execute
31-1 all documents on behalf of the district. The vice-president shall
31-2 act as president in case of the absence or disability of the
31-3 president. The secretary is responsible for seeing that all
31-4 records and books of the district are properly kept and shall
31-5 attest the president's signature on all documents.
31-6 (d) The board may appoint another director, the general
31-7 manager, or any employee as assistant or deputy secretary to assist
31-8 the secretary, and any such person shall be entitled to certify as
31-9 to the authenticity of any record of the district, including but
31-10 not limited to all proceedings relating to bonds, contracts, or
31-11 indebtedness of the district.
31-12 (e) After any election or appointment of a director, a
31-13 district shall notify the executive director within 30 days after
31-14 the date of the election or appointment of the name and mailing
31-15 address of the director chosen and the date that director's term of
31-16 office expires. The executive director shall provide forms to the
31-17 district for such purpose.
31-18 Sec. 36.055. SWORN STATEMENT, BOND AND OATH OF OFFICE. (a)
31-19 As soon as practicable after a director is elected or appointed,
31-20 that director shall make the sworn statement prescribed by the
31-21 constitution for public office.
31-22 (b) As soon as practicable after a director has made the
31-23 sworn statement, and before beginning to perform the duties of
31-24 office, that director shall take the oath of office prescribed by
31-25 the constitution for public officers.
31-26 (c) Before beginning to perform the duties of office, each
31-27 director shall execute a bond for $10,000 payable to the district
32-1 and conditioned on the faithful performance of that director's
32-2 duties. All bonds of the directors shall be approved by the board
32-3 and paid for by the district.
32-4 (d) The sworn statement, bond, and oath shall be filed with
32-5 the district and retained in its records. A duplicate original of
32-6 the sworn statement and the oath shall also be filed with the
32-7 secretary of state within 10 days after their execution and need
32-8 not be filed before the new director begins to perform the duties
32-9 of office.
32-10 Sec. 36.056. GENERAL MANAGER. (a) The board may employ or
32-11 contract with a person to perform such services as general manager
32-12 for the district as the board may from time to time specify. The
32-13 board may delegate to the general manager full authority to manage
32-14 and operate the affairs of the district subject only to orders of
32-15 the board.
32-16 (b) The board may delegate to the general manager the
32-17 authority to employ all persons necessary for the proper handling
32-18 of the business and operation of the district and to determine the
32-19 compensation to be paid all employees other than the general
32-20 manager.
32-21 (c) Except in a district that is composed of the territory
32-22 of more than one county, a director may be employed as general
32-23 manager of the district. The compensation of a general manager who
32-24 also serves as a director shall be established by the other
32-25 directors.
32-26 Sec. 36.057. MANAGEMENT OF DISTRICT. (a) The board shall
32-27 be responsible for the management of all the affairs of the
33-1 district. The district shall employ or contract with all persons,
33-2 firms, partnerships, corporations, or other entities, public or
33-3 private, deemed necessary by the board for the conduct of the
33-4 affairs of the district, including, but not limited to, engineers,
33-5 attorneys, financial advisors, operators, bookkeepers, tax
33-6 assessors and collectors, auditors, and administrative staff.
33-7 (b) The board shall set the compensation and terms for
33-8 consultants.
33-9 (c) In selecting attorneys, engineers, auditors, financial
33-10 advisors, or other professional consultants, the district shall
33-11 follow the procedures provided in the Professional Services
33-12 Procurement Act, Subchapter A, Chapter 2254, Government Code.
33-13 (d) The board shall require an officer, employee, or
33-14 consultant who collects, pays, or handles any funds of the district
33-15 to furnish good and sufficient bond, payable to the district, in an
33-16 amount determined by the board to be sufficient to safeguard the
33-17 district. The bond shall be conditioned on the faithful
33-18 performance of that person's duties and on accounting for all funds
33-19 and property of the district. Such bond shall be signed or
33-20 endorsed by a surety company authorized to do business in the
33-21 state.
33-22 (e) The board may pay the premium on surety bonds required
33-23 of officials, employees, or consultants of the district out of any
33-24 available funds of the district, including proceeds from the sale
33-25 of bonds.
33-26 (f) The board may adopt bylaws to govern the affairs of the
33-27 district to perform its purposes. The board may, by resolution,
34-1 authorize its general manager or other employee to execute
34-2 documents on behalf of the district.
34-3 (g) The board shall also have the right to purchase all
34-4 materials, supplies, equipment, vehicles, and machinery needed by
34-5 the district to perform its purposes.
34-6 Sec. 36.058. CONFLICTS OF INTEREST. A director of a
34-7 district is subject to the provisions of Chapter 171, Local
34-8 Government Code, relating to the regulation of conflicts of
34-9 officers of local governments.
34-10 Sec. 36.059. GENERAL ELECTIONS. (a) All elections shall be
34-11 generally conducted in accordance with the Election Code except as
34-12 otherwise provided for by this chapter. Write-in candidacies for
34-13 any district office shall be governed by Subchapter C, Chapter 146,
34-14 Election Code.
34-15 (b) The directors of the district shall be elected according
34-16 to the precinct method as defined by Chapter 12, page 1105, Special
34-17 Laws, Acts of the 46th Legislature, Regular Session, 1939. To be
34-18 qualified to be elected as a director, a person must be a
34-19 registered voter in the precinct that the person represents. If
34-20 any part of a municipal corporation is a part of one precinct, then
34-21 no part of the municipal corporation shall be included in another
34-22 precinct, except that a municipal corporation having a population
34-23 of more than 200,000 may be divided between two or more precincts.
34-24 In a multi-county district, not more than two of the five precincts
34-25 may include the same municipal corporation or part of the same
34-26 municipal corporation.
34-27 Sec. 36.060. FEES OF OFFICE; REIMBURSEMENT. (a) A director
35-1 is entitled to receive fees of office of not more than $100 a day
35-2 for each day the director actually spends performing the duties of
35-3 a director. The fees of office may not exceed $6,000 per annum.
35-4 (b) Each director is also entitled to receive reimbursement
35-5 of actual expenses reasonably and necessarily incurred while
35-6 engaging in activities on behalf of the district.
35-7 (c) In order to receive fees of office and to receive
35-8 reimbursement for expenses, each director shall file with the
35-9 district a verified statement showing the number of days actually
35-10 spent in the service of the district and a general description of
35-11 the duties performed for each day of service.
35-12 Sec. 36.061. POLICIES. (a) Subject to the law governing
35-13 the district, the board shall adopt the following in writing:
35-14 (1) a code of ethics for district directors, officers,
35-15 employees, and persons who are engaged in handling investments for
35-16 the district;
35-17 (2) a policy relating to travel expenditures;
35-18 (3) a policy relating to district investments that
35-19 ensures that:
35-20 (A) purchases and sales of investments are
35-21 initiated by authorized individuals, conform to investment
35-22 objectives and regulations, and are properly documented and
35-23 approved; and
35-24 (B) periodic review is made of district
35-25 investments to evaluate investment performance and security;
35-26 (4) policies and procedures for selection, monitoring,
35-27 or review and evaluation of professional services;
36-1 (5) policies that ensure a better use of management
36-2 information including:
36-3 (A) budgets for use in planning and controlling
36-4 cost;
36-5 (B) an audit or finance committee of the board;
36-6 and
36-7 (C) uniform reporting requirements that use
36-8 "Audits of State and Local Governmental Units" as a guide on audit
36-9 working papers and that uses "Governmental Accounting and Financial
36-10 Reporting Standards."
36-11 (b) The state auditor may audit the financial transactions
36-12 of any district if the state auditor determines that the audit is
36-13 necessary.
36-14 Sec. 36.062. OFFICES AND MEETING PLACES. (a) The board
36-15 shall designate from time to time and maintain one or more regular
36-16 offices for conducting the business of the district and
36-17 maintaining the records of the district. Such offices may be
36-18 located either inside or outside the district's boundaries as
36-19 determined in the discretion of the board.
36-20 (b) The board shall designate one or more places inside or
36-21 outside the district for conducting the meetings of the board.
36-22 Sec. 36.063. NOTICE OF MEETINGS. Notice of meetings of the
36-23 board shall be given as set forth in the Open Meetings Act,
36-24 Chapter 551, Government Code. Neither failure to provide notice of
36-25 a regular meeting nor an insubstantial defect in notice of any
36-26 meeting shall affect the validity of any action taken at the
36-27 meeting.
37-1 Sec. 36.064. MEETINGS. (a) The board shall hold regular
37-2 meetings at least quarterly. It may hold meetings at other times
37-3 as required for the business of the district.
37-4 (b) Meetings shall be conducted and notice of meetings
37-5 shall be posted in accordance with the Open Meetings Act, Chapter
37-6 551, Government Code. A meeting of a committee of the board, or a
37-7 committee composed of representatives of more than one board, where
37-8 less than a quorum of any one board is present is not subject to
37-9 the provisions of the Open Meetings Act, Chapter 551, Government
37-10 Code.
37-11 Sec. 36.065. RECORDS. (a) The board shall keep a complete
37-12 account of all its meetings and proceedings and shall preserve its
37-13 minutes, contracts, records, notices, accounts, receipts, and other
37-14 records in a safe place.
37-15 (b) The records of each district are the property of the
37-16 district and are subject to the Open Records Act, Chapter 552,
37-17 Government Code.
37-18 (c) The preservation, microfilming, destruction, or other
37-19 disposition of the records of each district is subject to the
37-20 requirements of Chapter 201, Local Government Code, and rules
37-21 adopted thereunder.
37-22 Sec. 36.066. SUITS. (a) A district may sue and be sued in
37-23 the courts of this state in the name of the district by and through
37-24 its board. All courts shall take judicial notice of the creation
37-25 of the district and of its boundaries.
37-26 (b) Any court in the state rendering judgment for debt
37-27 against a district may order the board to levy, assess, and collect
38-1 taxes or assessments to pay the judgment.
38-2 (c) The president or the general manager of any district
38-3 shall be the agent of the district on whom process, notice, or
38-4 demand required or permitted by law to be served upon a district
38-5 may be served.
38-6 (d) Except as provided in subsection (e), no suit may be
38-7 instituted in any court of this state contesting:
38-8 (1) the validity of the creation and boundaries of a
38-9 district;
38-10 (2) any bonds or other obligations issued by a
38-11 district; or
38-12 (3) the validity or the authorization of a contract
38-13 with the United States by a district.
38-14 (e) The matters listed in subsection (d) may be judicially
38-15 inquired into at any time and determined in any suit brought by the
38-16 State of Texas through the attorney general. The action shall be
38-17 brought on good cause shown, except where otherwise provided by
38-18 other provisions of this code or by the Texas Constitution. It is
38-19 specifically provided, however, that no such proceeding shall
38-20 affect the validity of or security for any bonds or other
38-21 obligations theretofore issued by a district if such bonds or other
38-22 obligations have been approved by the attorney general.
38-23 (f) A district shall not be required to give bond for
38-24 appeal, injunction, or costs in any suit to which it is a party and
38-25 shall not be required to deposit more than the amount of any award
38-26 in any eminent domain proceeding.
38-27 (g) If the district prevails in any suit it may, in the same
39-1 action, recover reasonable fees for attorneys, expert witnesses,
39-2 and other costs incurred by the district before the court. The
39-3 amount of the attorney's fees shall be fixed by the court.
39-4 Sec. 36.067. CONTRACTS. (a) A district shall contract, and
39-5 be contracted with, in the name of the district.
39-6 (b) A district may purchase property from any other
39-7 governmental entity by negotiated contract without the necessity of
39-8 securing appraisals or advertising for bids.
39-9 Sec. 36.068. EMPLOYEE BENEFITS. (a) The board may provide
39-10 for and administer a retirement, disability, and death compensation
39-11 fund for the employees of the district and may adopt a plan or
39-12 plans to effectuate the purpose of this section, including the
39-13 forms of insurance and annuities considered advisable by the board.
39-14 The board, after notice to the employees and a hearing, may change
39-15 any plan, rule, or regulation.
39-16 (b) All money provided from the compensation of the
39-17 employees participating in the fund and plan authorized by this
39-18 section and by the district for the retirement, disability, and
39-19 death compensation fund, after the money has been received by the
39-20 district, shall be invested as the board from time to time
39-21 considers advisable. The money may be invested in the following
39-22 manner:
39-23 (1) in bonds issued by:
39-24 (A) the United States;
39-25 (B) the State of Texas;
39-26 (C) any county, city, or other political
39-27 subdivision of this state; or
40-1 (D) any agency of the United States in which the
40-2 payment of principal and interest is guaranteed by the United
40-3 States;
40-4 (2) in life insurance policies, endowment or annuity
40-5 contracts, or interest-bearing certificates of legal reserve life
40-6 insurance companies authorized to write the contracts in the State
40-7 of Texas; and
40-8 (3) in other qualified plans approved by the Pension
40-9 Review Board.
40-10 (c) A sufficient amount of the money shall be kept on hand
40-11 to meet the immediate payment of amounts likely to become due each
40-12 year out of the fund as determined by the board.
40-13 (d) The recipients or beneficiaries from the fund shall not
40-14 be eligible for any other pension, retirement fund, or direct aid
40-15 from the State of Texas, unless the fund is released to the State
40-16 of Texas as a condition precedent to receiving the other pension,
40-17 aid, or joining of any other system.
40-18 (e) The board may include hospitalization and medical
40-19 benefits to its employees as part of the compensation currently
40-20 paid to the officers and employees and may adopt any plan, rule, or
40-21 regulation in connection with it and amend or change the plan,
40-22 rule, or regulation as it may determine.
40-23 (Sections 36.069-36.100 reserved for expansion
40-24 SUBCHAPTER D. POWERS AND DUTIES
40-25 Sec. 36.101. RULE-MAKING POWER. (a) A district may make
40-26 and enforce rules to provide for conserving, preserving,
40-27 protecting, and recharging of the groundwater or of a groundwater
41-1 reservoir or its subdivisions in order to control subsidence or
41-2 prevent waste of groundwater and to carry out the powers and duties
41-3 provided by this chapter.
41-4 (b) After notice and hearing, the board shall adopt and
41-5 enforce rules to implement this chapter, including rules governing
41-6 procedure before the board. Notice in this section shall include
41-7 publication of the agenda of the hearing in one or more newspapers
41-8 of general circulation in the county or counties in which the
41-9 district is located.
41-10 (c) The board shall compile its rules in a book and make
41-11 them available for use and inspection at the district's principle
41-12 office.
41-13 Sec. 36.102. ENFORCEMENT OF RULES. (a) A district may
41-14 enforce this chapter and its rules by injunction, mandatory
41-15 injunction, or other appropriate remedy in a court of competent
41-16 jurisdiction.
41-17 (b) The board may set reasonable civil penalties for breach
41-18 of any rule of the district that shall not exceed the jurisdiction
41-19 of a justice court as provided by Section 27.031, Government Code.
41-20 (c) A penalty under this section is in addition to any other
41-21 penalty provided by the law of this state and may be enforced by
41-22 complaints filed in the appropriate court of jurisdiction in the
41-23 county in which the district's principal office or meeting place is
41-24 located.
41-25 (d) If the district prevails in any suit to enforce its
41-26 rules, it may, in the same action, recover reasonable fees for
41-27 attorneys, expert witnesses, and other costs incurred by the
42-1 district before the court. The amount of the attorney's fees shall
42-2 be fixed by the court.
42-3 Sec. 36.103. IMPROVEMENTS AND FACILITIES. (a) A district
42-4 may build, acquire, or obtain by any lawful means any property
42-5 necessary for the district to carry out its purpose and the
42-6 provisions of this chapter.
42-7 (b) A district may:
42-8 (1) acquire land to erect dams or to drain lakes,
42-9 draws, and depressions;
42-10 (2) construct dams;
42-11 (3) drain lakes, depressions, draws, and creeks;
42-12 (4) install pumps and other equipment necessary to
42-13 recharge a groundwater reservoir or its subdivision; and
42-14 (5) provide necessary facilities for the purpose, sale
42-15 transportation, and distribution of water.
42-16 Sec. 36.104. PURCHASE, SALE, TRANSPORTATION, AND
42-17 DISTRIBUTION OF WATER. A district may purchase, sell, transport,
42-18 and distribute surface water or groundwater for any purpose.
42-19 Sec. 36.105. EMINENT DOMAIN. (a) A district may exercise
42-20 the power of eminent domain to acquire by condemnation a fee simple
42-21 or other interest in property if that property interest is
42-22 necessary to the exercise of the authority conferred by this
42-23 chapter.
42-24 (b) The power of eminent domain authorized in this section
42-25 may not be used for the condemnation of land for the purpose of
42-26 acquiring rights to groundwater, surface water or water rights.
42-27 (c) The district must exercise the power of eminent domain
43-1 in the manner provided by Chapter 21, Property Code, but the
43-2 district is not required to deposit a bond as provided by Section
43-3 21.021(a), Property Code.
43-4 (d) In a condemnation proceeding brought by a district, the
43-5 district is not required to pay in advance or give bond or other
43-6 security for costs in the trial court, to give bond for the
43-7 issuance of a temporary restraining order or a temporary
43-8 injunction, or to give bond for costs or supersedeas on an appeal
43-9 or writ of error.
43-10 (e) In exercising the power of eminent domain, if the
43-11 district requires relocating, raising, lowering, rerouting,
43-12 changing the grade, or altering the construction of any railroad,
43-13 highway, pipeline, or electric transmission or distribution,
43-14 telegraph, or telephone lines, conduits, poles, or facilities, the
43-15 district must bear the actual cost of relocating, raising,
43-16 lowering, rerouting, changing the grade, or altering the
43-17 construction to provide comparable replacement without enhancement
43-18 of facilities after deducting the net salvage value derived from
43-19 the old facility.
43-20 Sec. 36.106. ENGINEERING SURVEYS. A district may employ
43-21 registered professional engineers to make surveys of the
43-22 groundwater reservoir or subdivision and surveys of the facilities
43-23 for development, production, transportation, distribution, and use
43-24 of the water, in order to determine the quantity of water available
43-25 for production and use and to determine the improvements,
43-26 development, and recharging needed by a reservoir or its
43-27 subdivision.
44-1 Sec. 36.107. PLANNING. (a) Following notice and hearing,
44-2 the district shall develop a comprehensive management plan for the
44-3 most efficient use of the groundwater, for controlling and
44-4 preventing waste of groundwater, and for controlling and preventing
44-5 subsidence. The plan may be reviewed annually but must be reviewed
44-6 by the board at least once every five years.
44-7 (b) The district shall specify in the management plan, in as
44-8 much detail as possible, the acts, procedures, performance, and
44-9 avoidance that are or may be necessary to effect the plan,
44-10 including specifications and proposed rules. The district shall
44-11 adopt rules that are necessary to implement the management plan.
44-12 The district shall file a copy of the management plan and the rules
44-13 with the commission.
44-14 Sec. 36.108. RESEARCH PROJECTS. A district may carry out
44-15 any research projects deemed necessary by the board.
44-16 Sec. 36.109. COLLECTION OF INFORMATION. A district may
44-17 collect any information the board deems necessary, including
44-18 information regarding the use of groundwater, water conservation,
44-19 and the practicability of recharging a groundwater reservoir.
44-20 Sec. 36.110. PUBLICATION OF PLANS AND INFORMATION. A
44-21 district may publish its plans and the information it develops,
44-22 bring them to the attention of the users of groundwater in the
44-23 district, and encourage the users to adopt and use them.
44-24 Sec. 36.111. RECORDS AND REPORTS. The district shall
44-25 require that records be kept and reports be made of the drilling,
44-26 equipping, and completing of water wells and of the production and
44-27 use of groundwater.
45-1 Sec. 36.112. DRILLERS' LOGS. A district shall require that
45-2 accurate drillers' logs be kept of water wells and that copies of
45-3 drillers' logs and electric logs be filed with the district.
45-4 Sec. 36.113. PERMITS FOR WELLS. A district shall require
45-5 permits for the drilling, equipping, or completing of wells, or for
45-6 substantially altering the size of wells or well pumps. Permits
45-7 may be issued subject to the rules promulgated by the district and
45-8 subject to terms and provisions with reference to the drilling,
45-9 equipping, completion, or alteration of wells or pumps that may be
45-10 necessary to conserve the groundwater, prevent waste, minimize as
45-11 far as practicable the drawdown of the water table or the reduction
45-12 of artesian pressure, lessen interference between wells, or control
45-13 and prevent subsidence.
45-14 Sec. 36.114. PERMIT: APPLICATION AND HEARING. The district
45-15 shall promptly consider and pass on each application for a permit.
45-16 If, within 20 days after the date it is submitted, an application
45-17 has not been passed on or set for a hearing on a specific date, the
45-18 applicant may petition the district court of the county where the
45-19 land is located for a writ of mandamus to compel the district to
45-20 act on the application or set a date for a hearing on the
45-21 application. A hearing shall be held within 35 days after the
45-22 setting of the date and the district shall act on the application
45-23 within 35 days after the date of the hearing.
45-24 Sec. 36.115. DRILLING OR ALTERING A WELL WITHOUT PERMIT.
45-25 (a) No person, firm or corporation may drill a well without first
45-26 obtaining a permit from the district.
45-27 (b) No person, firm or corporation may alter the size of a
46-1 well or well pump such that it would bring that well under the
46-2 jurisdiction of the district without first obtaining a permit from
46-3 the district.
46-4 (c) No person, firm or corporation may operate a well
46-5 without first obtaining a permit from the district.
46-6 (d) A violation occurs on the first day the drilling,
46-7 alteration or operation begins and continues each day thereafter
46-8 until the appropriate permits are approved.
46-9 Sec. 36.116. REGULATION OF SPACING AND PRODUCTION. In order
46-10 to minimize as far as practicable the drawdown of the water table
46-11 or the reduction of artesian pressure, to control subsidence, or to
46-12 prevent waste, a district may provide for the spacing of water
46-13 wells and may regulate the production of wells.
46-14 Sec. 36.117. EXCEPTIONS; LIMITATIONS. (a) A district may
46-15 not require a permit for:
46-16 (1) drilling or producing from a well either drilled,
46-17 completed, or equipped so that it is incapable of producing more
46-18 than 25,000 gallons of groundwater a day;
46-19 (2) the drilling or alteration of the size of a well
46-20 or to restrict the production of a well if the water produced or to
46-21 be produced from the well is used or to be used to supply the
46-22 domestic needs of 10 or fewer households and a person who is a
46-23 member of each household is either the owner of the well, a person
46-24 related to the owner or a member of the owner's household within
46-25 the second degree by consanguinity, or an employee of the owner;
46-26 (3) the drilling or alteration of the size of a well
46-27 or to restrict the production from the well if the water produced
47-1 or to be produced from the well is used or to be used to provide
47-2 water for feeding livestock and poultry connected with farming,
47-3 ranching, or dairy enterprises;
47-4 (4) water wells to supply water for hydrocarbon
47-5 production activities, regardless of whether those wells are
47-6 producing, that are associated with any well permitted by the
47-7 Railroad Commission of Texas drilled before September 1, 1985; or
47-8 (5) jet wells used for domestic needs.
47-9 (b) The board shall adopt rules determining the
47-10 applicability of Subsection (a)(3) to facilities used primarily for
47-11 feeding livestock.
47-12 (c) The district shall not deny the owner of a tract of
47-13 land, or his lessee, who has no well equipped to produce more than
47-14 25,000 gallons a day on the tract, either a permit to drill a well
47-15 on his land or the privilege to produce groundwater from his land,
47-16 subject to the rules of the district.
47-17 (d) A district may not restrict the production of any well
47-18 equipped to produce 25,000 gallons or less a day.
47-19 (e) Nothing in this chapter applies to wells drilled for
47-20 oil, gas, sulphur, uranium, or brine, or for core tests, or for
47-21 injection of gas, salt water, or other fluid, or for any other
47-22 purpose, under permits issued by the Railroad Commission of Texas.
47-23 A district may not require a permit to drill a well to supply water
47-24 for drilling any of these wells permitted by the Railroad
47-25 Commission of Texas. Any well that ceases to be used for these
47-26 purposes and is then used as an ordinary water well is subject to
47-27 the rules of the district.
48-1 (f) Water wells exempted under this section shall be
48-2 equipped and maintained so as to conform to the district's rules
48-3 requiring installation of casing, pipe, and fittings to prevent the
48-4 escape of groundwater from a groundwater reservoir to any reservoir
48-5 not containing groundwater and to prevent the pollution or harmful
48-6 alteration of the character of the water in any groundwater
48-7 reservoir.
48-8 (g) A district shall require water wells exempted under this
48-9 section to be registered with the district. All exempt water wells
48-10 shall be equipped and maintained so as to conform to the district's
48-11 rules requiring installation of casing, pipe, and fittings to
48-12 prevent the escape of groundwater from a groundwater reservoir to
48-13 any reservoir not containing groundwater and to prevent the
48-14 pollution or harmful alteration of the character of the water in
48-15 any groundwater reservoir.
48-16 Sec. 36.118. OPEN OR UNCOVERED WELLS. (a) A district may
48-17 require the owner or lessee of land on which an open or uncovered
48-18 well is located to keep the well permanently closed or capped with
48-19 a covering capable of sustaining weight of at least 400 pounds,
48-20 except when the well is in actual use.
48-21 (b) As used in this section, "open or uncovered well" means
48-22 an artificial excavation dug or drilled for the purpose of
48-23 exploring for or producing water from the groundwater reservoir and
48-24 is not capped or covered as required by this chapter.
48-25 (c) If the owner or lessee fails or refuses to close or cap
48-26 the well in compliance with this chapter in accordance with
48-27 district rules, any person, firm, or corporation employed by the
49-1 district may go on the land and close or cap the well safely and
49-2 securely.
49-3 (d) Reasonable expenses incurred by the district in closing
49-4 or capping a well constitute a lien on the land on which the well
49-5 is located.
49-6 (e) The lien is perfected by filing in the deed records of
49-7 the county where the well is located an affidavit, executed by any
49-8 person conversant with the facts, stating the following:
49-9 (1) the existence of the well;
49-10 (2) the legal description of the property on which the
49-11 well is located;
49-12 (3) the approximate location of the well on the
49-13 property;
49-14 (4) the failure or refusal of the owner or lessee,
49-15 after notification, to close the well within 10 days after the
49-16 notification;
49-17 (5) the closing of the well by the district, or by an
49-18 authorized agent, representative, or employee of the district; and
49-19 (6) the expense incurred by the district in closing
49-20 the well.
49-21 (f) Nothing in this section affects the enforcement of
49-22 Subchapter A, Chapter 756, Health and Safety Code.
49-23 Sec. 36.119. ILLEGAL DRILLING AND OPERATION OF WELL; CITIZEN
49-24 SUIT. (a) Drilling a well without a required permit or operating
49-25 a well at a higher rate of production than the rate approved for
49-26 the well is declared to be illegal, wasteful per se, and a
49-27 nuisance.
50-1 (b) A person who has an estate in land adjacent to the land
50-2 on which the well is located, or a part that lies within one-half
50-3 mile of the well, may sue in a court of competent jurisdiction to
50-4 restrain or enjoin the illegal drilling or operation, or both. The
50-5 suit may be brought with or without the joinder of the district.
50-6 (c) The aggrieved party may also sue for damages for
50-7 injuries suffered by reason of the illegal operation and for other
50-8 relief to which they may be entitled. In a suit for damages, the
50-9 existence or operation of a well in violation of the rules of the
50-10 district is prima facie evidence of illegal drainage.
50-11 (d) The suit may be brought in the county where the illegal
50-12 well is located or in the county where all or part of the affected
50-13 land is located.
50-14 (e) The remedies provided by this section are cumulative of
50-15 other remedies available to the individual or the district.
50-16 (f) A suit brought under this section shall be advanced for
50-17 trial and determined as expeditiously as possible. The court shall
50-18 not grant a postponement or continuance, including a first motion,
50-19 except for reasons considered imperative by the court.
50-20 Sec. 36.120. INFORMATION. On request of the executive
50-21 director or the executive administrator, the district shall make
50-22 available information that it acquires concerning the groundwater
50-23 resources within its jurisdiction. The district shall also provide
50-24 information to the commission and Texas Water Development Board
50-25 concerning its plans and activities in conserving and protecting
50-26 groundwater resources. On request of a district, the executive
50-27 director and the executive administrator shall provide information
51-1 they acquire concerning the groundwater resources within the
51-2 district's jurisdiction.
51-3 (Sections 36.121-36.150 reserved for expansion
51-4 SUBCHAPTER E. DISTRICT FINANCES
51-5 Sec. 36.151. EXPENDITURES. (a) A district's money may be
51-6 disbursed only by check, draft, order, or other instrument.
51-7 (b) Disbursements shall be signed by at least a two
51-8 directors, except the board may by resolution allow the certain
51-9 employees of the district, or a combination of employees and
51-10 directors, to sign disbursements on behalf of the board.
51-11 (c) The board may by resolution allow disbursements to be
51-12 transferred by federal reserve wire system to accounts in the name
51-13 of the district.
51-14 Sec. 36.152. FISCAL YEAR. (a) The district shall be
51-15 operated on the basis of a fiscal year established by the board.
51-16 (b) The fiscal year may not be changed during a period in
51-17 which revenue bonds of the district are outstanding or more than
51-18 once in a 24-month period.
51-19 Sec. 36.153. ANNUAL AUDIT. (a) Annually, the board shall
51-20 have an audit made of the financial condition of the district.
51-21 (b) The annual audit and other district records must be open
51-22 to inspection during regular business hours at the principal office
51-23 of the district.
51-24 Sec. 36.154. ANNUAL BUDGET. (a) The board shall prepare
51-25 and approve an annual budget.
51-26 (b) The budget shall contain a complete financial statement,
51-27 including a statement of:
52-1 (1) the outstanding obligations of the district;
52-2 (2) the amount of cash on hand to the credit of each
52-3 fund of the district;
52-4 (3) the amount of money received by the district from
52-5 all sources during the previous year;
52-6 (4) the amount of money available to the district from
52-7 all sources during the ensuing year;
52-8 (5) the amount of the balances expected at the end of
52-9 the year in which the budget is being prepared;
52-10 (6) the estimated amount of revenues and balances
52-11 available to cover the proposal budget; and
52-12 (7) the estimated tax rate or fee revenues that will
52-13 be required.
52-14 (c) The annual budget may be amended on the board's
52-15 approval.
52-16 Sec. 36.155. DEPOSITORY. (a) The board shall name one or
52-17 more banks to serve as depository for the district funds.
52-18 (b) District funds, other than those transmitted to a bank
52-19 for payment of bonds issued by the district, shall be deposited as
52-20 received with the depository bank and shall remain on deposit.
52-21 This subsection does not limit the power of the board to place a
52-22 portion of the district's funds on time deposit or to purchase
52-23 certificates of deposit.
52-24 (c) To the extent that funds in the depository are not
52-25 insured by the Federal Deposit Insurance Corporation, they shall be
52-26 secured in the manner provided by law for the security of funds by
52-27 the Public Funds Collateral Act, Chapter 2257, Government Code.
53-1 Sec. 36.156. INVESTMENTS. (a) Funds of the district may be
53-2 invested and reinvested in accordance with the provisions of the
53-3 Public Funds Investment Act, Chapter 2256, Government Code.
53-4 (b) The board, by resolution, may provide that an authorized
53-5 representative of the district may invest and reinvest the funds of
53-6 the district and provide for money to be withdrawn from the
53-7 appropriate accounts of the district for investments on such terms
53-8 as the board considers advisable.
53-9 Sec. 36.157. REPAYMENT OF ORGANIZATIONAL EXPENSES. (a) A
53-10 district may pay all costs and expenses necessarily incurred in the
53-11 creation and organization of a district, including legal fees and
53-12 other incidental expenses, and may reimburse any person for money
53-13 advanced for these purposes.
53-14 (b) Payments may be made from money obtained from the sale
53-15 of bonds first issued by the district or out of maintenance taxes
53-16 or other revenues of the district.
53-17 Sec. 36.158. GRANTS. A district may make or accept grants,
53-18 gratuities, advances, or loans in any form to or from any source
53-19 approved by the board, including any governmental entity, and may
53-20 enter into contracts, agreements, and covenants in connection with
53-21 grants, gratuities, advances or loans that the board considers
53-22 appropriate.
53-23 (Sections 36.159-36.170 reserved for expansion
53-24 SUBCHAPTER F. BONDS AND NOTES
53-25 Sec. 36.171. ISSUANCE OF BONDS AND NOTES. (a) The board
53-26 may issue and sell bonds and notes in the name of the district for
53-27 any lawful purpose of the district. A district may not issue bonds
54-1 unless the commission determines that the project to be financed by
54-2 the bonds is feasible and issues an order approving the issuance of
54-3 the bonds. This section does not apply to refunding bonds.
54-4 (b) A district may submit to the commission a written
54-5 application for investigation of feasibility. An engineer's report
54-6 describing the project, including the data, profiles, maps, plans,
54-7 and specifications prepared in connection with the report, must be
54-8 submitted with the application.
54-9 (c) The executive director shall examine the application and
54-10 the report and shall inspect the project area. The district shall,
54-11 on request, supply the executive director with additional data and
54-12 information necessary for an investigation of the application, the
54-13 engineer's report, and the project.
54-14 (d) The executive director shall prepare a written report on
54-15 the project and include suggestions, if any, for changes or
54-16 improvements in the project. The executive director shall retain a
54-17 copy of the report and send a copy of the report to both the
54-18 commission and the district.
54-19 (e) The commission shall consider the application, the
54-20 engineer's report, the executive director's report, and any other
54-21 evidence allowed by commission rule to be considered in determining
54-22 the feasibility of the project.
54-23 (f) The commission shall determine whether the project to be
54-24 financed by the bonds is feasible and issue an order either
54-25 approving or disapproving, as appropriate, the issuance of the
54-26 bonds. The commission shall retain a copy of the order and send a
54-27 copy of the order to the district.
55-1 (g) Notwithstanding any provision of this code to the
55-2 contrary, the commission may approve the issuance of bonds of a
55-3 district without the submission of plans and specifications of the
55-4 improvements to be financed with the bonds. The commission may
55-5 condition the approval on any terms or conditions considered
55-6 appropriate by the commission.
55-7 Sec. 36.172. MANNER OF REPAYMENT OF BONDS AND NOTES. The
55-8 board may provide for the payment of principal of and interest on
55-9 the bonds and notes in any one of the following manners:
55-10 (1) from the levy and collection of ad valorem taxes
55-11 on taxable property within the district;
55-12 (2) from fees;
55-13 (3) by pledging all or any part of the designated
55-14 revenues from the ownership or operation of the district's works,
55-15 improvements, and facilities and from the sale, transportation, and
55-16 distribution of water; or
55-17 (4) from any combination of these sources.
55-18 Sec. 36.173. ADDITIONAL SECURITY FOR BONDS AND NOTES. (a)
55-19 The bonds and notes may be additionally secured by a deed of trust
55-20 or mortgage lien on part or all of the physical properties of the
55-21 district and rights appurtenant to those properties, vesting in the
55-22 trustee power to sell the properties for payment of the
55-23 indebtedness, power to operate the properties, and all other powers
55-24 necessary for the further security of the bonds and notes.
55-25 (b) The trust indenture, regardless of the existence of the
55-26 deed trust or mortgage lien on the properties, may contain
55-27 provisions established by the board for the security of the bonds
56-1 and notes and the preservation of the trust estate, may make
56-2 provisions for amendment or modification, and may make provisions
56-3 for investment of funds of the district.
56-4 (c) A purchaser under a sale under the deed trust or
56-5 mortgage lien shall be absolute owner of the properties and rights
56-6 purchased and may maintain and operate them.
56-7 Sec. 36.174. FORM OF BONDS OR NOTES. (a) A district may
56-8 issue its bonds or notes in various series or issues.
56-9 (b) Bonds or notes may mature serially or otherwise not more
56-10 than 50 years from their date and shall bear interest at any rate
56-11 permitted by the constitution and laws of this state.
56-12 (c) A district's bonds, notes and interest coupons, if any,
56-13 are investment securities under the terms of Chapter 8 of the
56-14 Business & Commerce Code, and may be issued registrable as to
56-15 principal or as to both principal and interest and may be made
56-16 redeemable before maturity, at the option of the district, or may
56-17 contain a mandatory redemption provision.
56-18 (d) A district's bonds and notes may be issued in the form,
56-19 denominations, and manner and under the terms, conditions, and
56-20 details, and shall be signed and executed as provided by the board
56-21 in the resolution or order authorizing their issuance.
56-22 Sec. 36.175. PROVISIONS OF BONDS AND NOTES. (a) In the
56-23 orders or resolutions authorizing the issuance of bonds or notes,
56-24 including refunding bonds, the board may provide for the flow of
56-25 funds, the establishment and maintenance of the interest and
56-26 sinking fund, the reserve fund, and other funds. The board may
56-27 make additional covenants with respect to bonds or notes, pledged
57-1 revenues, and the operation and maintenance of those works,
57-2 improvements, and facilities, of which the revenue is pledged.
57-3 (b) The orders or resolutions of the board authorizing the
57-4 issuance of bonds or notes may also prohibit the further issuance
57-5 of bonds, notes, or other obligations payable from the pledged
57-6 revenue or may reserve the right to issue additional bonds or notes
57-7 to be secured by a pledge of and payable from the revenue on a
57-8 parity with or subordinate to the lien and pledge in support of the
57-9 bonds or notes being issued.
57-10 (c) The orders or resolutions of the board issuing bonds or
57-11 notes may contain other provisions and covenants as the board may
57-12 determine.
57-13 (d) The board may adopt and have executed any other
57-14 proceeding or instruments necessary and convenient in the issuance
57-15 of bonds or notes.
57-16 Sec. 36.176. REFUNDING BONDS. (a) A district may issue
57-17 bonds to refund all or any part of its outstanding bonds or notes,
57-18 including matured but unpaid interest coupons.
57-19 (b) Refunding bonds shall mature serially or otherwise not
57-20 more than 50 years from their date and shall bear interest at any
57-21 rate or rates permitted by the constitution and laws of the state.
57-22 (c) Refunding bonds may be payable from the same source as
57-23 the bonds or notes being refunded or from other additional sources.
57-24 (d) The refunding bonds must be approved by the attorney
57-25 general as in the case of other bonds or notes and shall be
57-26 registered by the comptroller on the surrender and cancellation of
57-27 the bonds or notes being refunded.
58-1 (e) The orders or resolutions authorizing the issuance of
58-2 the refunding bonds may provide that they be sold and the proceeds
58-3 deposited in the place or places at which the bonds or notes being
58-4 refunded are payable, in which case the refunding bonds may be
58-5 issued before the cancellation of the bonds or notes being
58-6 refunded. If refunding bonds are issued before cancellation of the
58-7 other bonds or notes, an amount sufficient to pay the principal of
58-8 and interest on the bonds or notes being refunded to their maturity
58-9 dates, or to their option dates if the bonds or notes have been
58-10 duly called for payment prior to maturity according to their terms,
58-11 shall be deposited in the place or places at which the bonds or
58-12 notes being refunded are payable. The comptroller shall register
58-13 the refunding bonds without the surrender and cancellation of bonds
58-14 or notes being refunded.
58-15 (f) A refunding may be accomplished in one or in several
58-16 installment deliveries. Refunding bonds and their interest coupons
58-17 are investment securities under Chapter 8 of the Business &
58-18 Commerce Code.
58-19 (g) In lieu of the method set forth in Subsection (a)-(f), a
58-20 district may refund bonds, notes, or other obligations as provided
58-21 by the general laws of the state.
58-22 Sec. 36.177. BONDS AND NOTES AS INVESTMENTS. District bonds
58-23 and notes are legal and authorized investments for:
58-24 (1) banks;
58-25 (2) savings banks;
58-26 (3) trust companies;
58-27 (4) savings and loan associations;
59-1 (5) insurance companies;
59-2 (6) fiduciaries;
59-3 (7) trustees;
59-4 (8) guardians; and
59-5 (9) sinking funds of cities, counties, school
59-6 districts, and other political subdivisions of the state and other
59-7 public funds of the state and its agencies, including the permanent
59-8 school fund.
59-9 Sec. 36.178. BONDS AND NOTES AS SECURITY FOR DEPOSITS.
59-10 District bonds and notes are eligible to secure deposits of public
59-11 funds of the state and cities, counties, school districts, and
59-12 other political subdivisions of the state. The bonds or notes are
59-13 lawful and sufficient security for deposits to the extent of their
59-14 value when accompanied by all unmatured coupons.
59-15 Sec. 36.179. TAX STATUS OF BONDS AND NOTES. Since a
59-16 district governed by chapter this chapter is a public entity
59-17 performing an essential public function, bonds and notes issued by
59-18 the district, any transaction relating to the bonds and notes, and
59-19 profits made in the sale of the bonds and notes, are free from
59-20 taxation by the state or by any city, county, special district, or
59-21 other political subdivision of the state.
59-22 Sec. 36.180. ELECTION. (a) Bonds or notes secured in whole
59-23 or in part by taxes may not be issued by the district until
59-24 authorized by a majority vote of the qualified voters of the
59-25 district at an election called for that purpose.
59-26 (b) The board may order an election, and the order calling
59-27 the election shall state the nature and the date of the election,
60-1 the hours during which the polls will be open, the location of the
60-2 polling places, the amount of bonds or notes to be authorized, and
60-3 the maximum maturity of the bonds or notes.
60-4 (c) At an election to authorize bonds or notes payable
60-5 wholly from ad valorem taxes, the ballots must be printed to
60-6 provide for voting for or against the proposition: "The issuance
60-7 of (bonds or notes) and the levy of taxes for payment of the (bonds
60-8 or notes)." At any election to authorize bonds or notes payable
60-9 from both ad valorem taxes and revenues, the ballots must be
60-10 printed to provide for voting for or against: "The issuance of
60-11 (bonds or notes) and the pledge of net revenues and the levy of ad
60-12 valorem taxes adequate to provide for the payment of the (bonds or
60-13 notes)."
60-14 (d) The board shall canvass the returns and declare the
60-15 results of the election. If a majority of the votes cast at the
60-16 election favor the issuance of the bonds or notes, the bonds or
60-17 notes may be issued by the board, but if a majority of the votes
60-18 cast at the election do not favor issuance of the bonds or notes,
60-19 the bonds or notes may not be issued.
60-20 Sec. 36.181. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
60-21 COMPTROLLER. (a) Bonds and notes issued by a district must be
60-22 submitted to the attorney general for examination.
60-23 (b) If the attorney general finds that the bonds or notes
60-24 have been authorized in accordance with law, he shall approve them,
60-25 and they shall be registered by the comptroller.
60-26 (c) After the approval and registration of bonds or notes,
60-27 the bonds or notes are incontestable in any court or other forum,
61-1 for any reason, and are valid and binding obligations in accordance
61-2 with their terms for all purposes.
61-3 (Sections 36.182-36.200 reserved for expansion
61-4 SUBCHAPTER G. DISTRICT REVENUES
61-5 Sec. 36.201. LEVY OF TAXES. (a) The board may annually
61-6 levy taxes to pay the bonds issued by the district that are payable
61-7 in whole or in part by taxes.
61-8 (b) the board may annually levy taxes to pay the maintenance
61-9 and operating expenses of the district at a rate not to exceed 50
61-10 cents on each $100 of assessed valuation.
61-11 Sec. 36.202. BOARD AUTHORITY. (a) The board may levy taxes
61-12 for the entire year in which the district is created.
61-13 (b) If territory is added to or annexed by the district, the
61-14 board may levy taxes in the new territory for the entire year in
61-15 which the territory is added or annexed.
61-16 (c) The board shall levy taxes on all property in the
61-17 district subject to district taxation.
61-18 Sec. 36.203. TAX RATE. In setting the tax rate, the board
61-19 shall take into consideration the income of the district from
61-20 sources other than taxation. On determination of the amount of tax
61-21 required to be levied, the board shall make the levy and certify it
61-22 to the tax assessor-collector.
61-23 Sec. 36.204. TAX APPRAISAL, ASSESSMENT AND COLLECTION. (a)
61-24 The Tax Code governs the appraisal, assessment, and collection of
61-25 district taxes.
61-26 (b) The board may provide for the appointment of a tax
61-27 assessor-collector for the district or may contract for the
62-1 assessment and collection of taxes as provided by the Tax Code.
62-2 Sec. 36.205. AUTHORITY TO SET FEES. (a) A district may set
62-3 fees for administrative acts of the district, such as filing
62-4 applications. Fees set by a district may not unreasonably exceed
62-5 the cost to the district of performing the administrative function
62-6 for which the fee is charged.
62-7 (b) A district shall set and collect fees for all services
62-8 provided outside the boundaries of the district.
62-9 (Sections 36.206-36.250 reserved for expansion
62-10 SUBCHAPTER H. JUDICIAL REVIEW
62-11 Sec. 36.251. SUIT AGAINST DISTRICT. A person, firm,
62-12 corporation, or association of persons affected by and dissatisfied
62-13 with any provision or with any rule or order made by a district is
62-14 entitled to file a suit against the district or its directors to
62-15 challenge the validity of the law, rule, or order. The suit shall
62-16 be filed in a court of competent jurisdiction in any county in
62-17 which the district or any part of the district is located.
62-18 Sec. 36.252. SUIT TO BE EXPEDITED. A suit brought under
62-19 this subchapter shall be advanced for trial and determined as
62-20 expeditiously as possible. No postponement or continuance shall be
62-21 granted except for reasons considered imperative by the court.
62-22 Sec. 36.253. TRIAL OF SUIT. The burden of proof is on the
62-23 petitioner, and the challenged law, rule, order, or act shall be
62-24 deemed prima facie valid. The review on appeal is governed by the
62-25 substantial evidence rule as defined by Section 2001.174,
62-26 Government Code.
62-27 Sec. 36.254. SUBCHAPTER CUMULATIVE. The provisions of this
63-1 subchapter do not affect other legal or equitable remedies that may
63-2 be available.
63-3 (Sections 36.255-36.300 reserved for expansion
63-4 SUBCHAPTER I. DISSOLUTION OF DISTRICT
63-5 Sec. 36.301. DISSOLUTION. (a) After notice and hearing,
63-6 the commission may dissolve a district that:
63-7 (1) has been inactive for a period of three
63-8 consecutive years; and
63-9 (2) has no outstanding bonded indebtedness.
63-10 (b) A district composed of territory entirely within one
63-11 county may be dissolved even if it has outstanding indebtedness
63-12 that matures after the year in which the district is dissolved,
63-13 whereupon the commissioners court shall levy and collect taxes on
63-14 all taxable property in the district in an amount sufficient to pay
63-15 the principal of and interest on the indebtedness when due. The
63-16 taxes shall be levied and collected in the same manner as county
63-17 taxes.
63-18 (c) A district is considered active if:
63-19 (1) the district has a board as required by Subchapter
63-20 D;
63-21 (2) the board holds regularly scheduled meetings and
63-22 has on file minutes of its meetings;
63-23 (3) the district has developed and filed with the
63-24 commission a management plan for the district;
63-25 (4) the district has copies of drillers' logs on file;
63-26 (5) the district has on file well permits issued by
63-27 the district; and
64-1 (6) the district has on file annual district audits.
64-2 Sec. 36.302. NOTICE OF HEARING. (a) The commission shall
64-3 give notice of the dissolution hearing which briefly describes the
64-4 reasons for the proceeding.
64-5 (b) The notice shall be published once each week for two
64-6 consecutive weeks before the day of hearing in some newspaper
64-7 having general circulation in the county or counties in which the
64-8 district is located. The first publication shall be 30 days before
64-9 the day of the hearing.
64-10 (c) The commission shall give notice of the hearing by first
64-11 class mail addressed to the directors of the district according to
64-12 the last record on file with the executive director.
64-13 Sec. 36.303. INVESTIGATION. The executive director shall
64-14 investigate the facts and circumstances of the district to be
64-15 dissolved and the result of the investigation shall be included in
64-16 a written report.
64-17 Sec. 36.304. ORDER OF DISSOLUTION. The commission may enter
64-18 an order dissolving the district at the conclusion of the hearing
64-19 if it finds that the district has performed none of the functions
64-20 for which it was created for a period of five consecutive years
64-21 before the day of the proceeding and that the district has no
64-22 outstanding bonded indebtedness.
64-23 Sec. 36.305. CERTIFIED COPY OF ORDER. The commission shall
64-24 file a certified copy of the order of dissolution of the district
64-25 in the deed records of the county or counties in which the district
64-26 is located. If the district was created by a special Act of the
64-27 legislature, the commission shall file a certified copy of the
65-1 order of dissolution with the secretary of state.
65-2 Sec. 36.306. APPEALS. (a) Appeals from a commission order
65-3 dissolving a district shall be filed and heard in the district
65-4 court of any of the counties in which the land is located.
65-5 (b) The trial on appeal shall be de novo and the substantial
65-6 evidence rule shall not apply.
65-7 Sec. 36.307. ASSETS ESCHEAT TO STATE. Upon the dissolution
65-8 of a district by the commission, all assets of the district shall
65-9 escheat to the State of Texas. The assets shall be administered by
65-10 the state treasurer and shall be disposed of in the manner provided
65-11 by Chapter 72, Property Code.
65-12 (Sections 36.308-36.320 reserved for expansion
65-13 SUBCHAPTER J. ADDING TERRITORY TO DISTRICT
65-14 Sec. 36.321. ADDING LAND BY PETITION OF LANDOWNER. The
65-15 owner of land contiguous to a district may file with the board a
65-16 notarized petition requesting that the owner's land be included in
65-17 the district. The petition must describe the land by legal
65-18 description or by metes and bounds or by lot and block number if
65-19 there is a recorded plat of the area to be included in the
65-20 district.
65-21 Sec. 36.322. ASSUMPTION OF BONDS. If the district has
65-22 bonds, notes, or other obligations outstanding or bonds payable in
65-23 whole or in part from taxation that have been voted but are
65-24 unissued, the petitioner shall assume its share of the outstanding
65-25 bonds, notes, or other obligations and any voted but unissued tax
65-26 bonds of the district, and the property shall be assessed an ad
65-27 valorem tax at the same rate as that set for the existing district
66-1 to pay for outstanding bonds and for the maintenance and operation
66-2 of the district.
66-3 Sec. 36.323. HEARING AND DETERMINATION OF PETITION. (a)
66-4 The board shall hear and consider the petition and may add to the
66-5 district the land described in the petition if it is considered to
66-6 be to the advantage of the petitioner and to the existing district.
66-7 (b) If the district has bonds payable in whole or in part
66-8 from taxation that are voted but unissued at the time of the
66-9 annexation, the board may issue the voted but unissued bonds even
66-10 though the boundaries of the district have been altered since the
66-11 authorization of the bonds.
66-12 Sec. 36.324. RECORDING PETITION. A petition that is granted
66-13 which adds land to the district shall be recorded in the office of
66-14 the county clerk of the county or counties in which the land is
66-15 located and the county or counties in which the existing district's
66-16 principal office is located.
66-17 Sec. 36.325. ADDING CERTAIN TERRITORY BY PETITION. (a)
66-18 Landowners of a defined area of territory not already in a district
66-19 may file with any district a petition requesting inclusion in that
66-20 district.
66-21 (b) The petition must be signed by:
66-22 (1) a majority of the landowners in the territory;
66-23 (2) at least 50 landowners if the number of landowners
66-24 is more than 50; or
66-25 (3) the commissioners court of the county in which the
66-26 area is located if the area is identified as a critical area or
66-27 includes the entire county. The petition must describe the land by
67-1 legal description or by metes and bounds or by lot and block number
67-2 if there is a recorded plat of the area to be included in the
67-3 district.
67-4 Sec. 36.326. HEARING ON PETITION. The board by order shall
67-5 set the time and place of separate hearings on the petition to
67-6 include the territory in the district. At least one hearing shall
67-7 be held in the existing district and one hearing shall be held in
67-8 the territory to be added.
67-9 Sec. 36.327. RESOLUTION TO ADD TERRITORY. If the board
67-10 finds after the hearing on the petition that the addition of the
67-11 land would benefit the district and the territory to be added, it
67-12 may add the territory to the district by resolution. The board
67-13 does not have to include all the territory described in the
67-14 petition if it finds that a modification or change is necessary or
67-15 desirable.
67-16 Sec. 36.328. ELECTION TO RATIFY ANNEXATION OF LAND. (a)
67-17 Annexation of the territory is not final until ratified by a
67-18 majority vote of the voters in the territory to be added. An
67-19 election in the existing district accepting the addition of land is
67-20 not required.
67-21 (b) The ballots for the election shall be printed to provide
67-22 for voting for or against the proposition: "The inclusion of
67-23 (briefly describe additional area) in the __________ District." If
67-24 the district levies a property tax for payment of its maintenance
67-25 and operating expenses, the proposition shall include the following
67-26 language: "and the levy of a tax on property at a rate not to
67-27 exceed _____ cents on each $100 of assessed valuation for payment
68-1 of maintenance and operating expenses of the district."
68-2 (c) The amount of the tax included in the proposition shall
68-3 be the maximum amount that the district is authorized to levy. If
68-4 the district has outstanding or authorized bonded indebtedness, the
68-5 proposition shall include language providing for the assumption by
68-6 the additional area of a proportional share of the bonded
68-7 indebtedness of the district.
68-8 Sec. 36.329. NOTICE AND PROCEDURE OF ELECTION. The notice
68-9 of the election, the manner and the time of giving the notice, the
68-10 manner of holding the election, and qualifications of the voters
68-11 are governed by the Election Code.
68-12 Sec. 36.330. LIABILITY OF ADDED TERRITORY. The added
68-13 territory shall bear its pro rata share of indebtedness or taxes
68-14 that may be owed, contracted, or authorized by the district to
68-15 which it is added.
68-16 Sec. 36.331. ANNEXATION OF NONCONTIGUOUS TERRITORY. Land
68-17 not contiguous to the existing boundaries of a district may not be
68-18 added to or annexed to a district unless the land is located either
68-19 within the same management area, critical area, or a groundwater
68-20 subdivision designated by the commission or its predecessors.
68-21 (Sections 36.332-36.350 reserved for expansion
68-22 SUBCHAPTER K. CONSOLIDATION OF DISTRICTS
68-23 Sec. 36.351. CONSOLIDATION OF DISTRICTS. (a) Two or more
68-24 districts may consolidate into one district.
68-25 (b) Adjacent districts may consolidate portions of either
68-26 district if one district relinquishes land within that district to
68-27 the jurisdiction of the other district.
69-1 (c) A consolidation under this subchapter occurs if the
69-2 board of each involved district adopts a resolution containing the
69-3 terms and conditions of the consolidation.
69-4 Sec. 36.352. TERMS AND CONDITIONS OF CONSOLIDATION. (a)
69-5 The terms and conditions for consolidation shall include:
69-6 (1) adoption of a name for the district;
69-7 (2) the number and apportionment of directors to serve
69-8 on the board;
69-9 (3) the effective date of the consolidation;
69-10 (4) an agreement on finances for the consolidated
69-11 district, including disposition of funds, property, and other
69-12 assets of each district;
69-13 (5) transfer of all permits issued in the area that is
69-14 the subject of the consolidation to the consolidated district; and
69-15 (6) an agreement on governing the districts during the
69-16 transition period, including selection of officers.
69-17 (b) The terms and conditions for consolidation may include:
69-18 (1) assumption by each district of the other
69-19 district's bonds, notes, voted but unissued bonds, or other
69-20 obligations;
69-21 (2) an agreement to levy taxes to pay for bonds;
69-22 (3) any other terms of conditions agreed upon by the
69-23 board of each district.
69-24 Sec. 36.353. NOTICE AND HEARING ON CONSOLIDATION. (a) Each
69-25 board shall publish notice and hold a public hearing within that
69-26 district on the terms and conditions for consolidation of the
69-27 districts.
70-1 (b) After the hearing, the board may, by resolution, approve
70-2 the terms and conditions for consolidation and enter an order
70-3 consolidating the districts.
70-4 Sec. 36.354. ELECTIONS TO APPROVE CONSOLIDATION. (a) An
70-5 election to ratify the consolidation is required unless the
70-6 districts to be consolidated meet the following requirements:
70-7 (1) the districts have not authorized or issued bonds
70-8 and do not levy or assess taxes; or
70-9 (2) the consolidation would not result in any
70-10 additional taxing or bonding authority for any of the districts,
70-11 and would not require any district to contribute to the debt
70-12 payments of any other district.
70-13 (b) The board shall order an election in each district to be
70-14 consolidated only after the board of each district has agreed on
70-15 the terms and conditions of consolidation. The directors of each
70-16 district shall order the election to be held on the same day in
70-17 each district. The election shall be held and notice given in the
70-18 manner provided by the Election Code.
70-19 (c) The ballots for the election shall be printed to provide
70-20 for voting for or against the proposition: "The consolidation of
70-21 (names of the districts to be consolidated) in the __________
70-22 District." If the district levies a property tax for payment of
70-23 its bonded indebtedness, the proposition shall include the
70-24 following language: "and the levy of a tax on property at a rate
70-25 not to exceed _____ cents on each $100 of assessed valuation for
70-26 payment of bonds." If the district levies a property tax for
70-27 payment of its maintenance and operating expenses, the proposition
71-1 shall include the following language: "and the levy of a tax on
71-2 property at a rate not to exceed _____ cents on each $100 of
71-3 assessed valuation for payment of maintenance and operating
71-4 expenses of the district."
71-5 (d) A district may be consolidated only if a majority of the
71-6 electors in each district vote in favor of the consolidation. If
71-7 more than two districts are consolidating, failure of any one
71-8 district to ratify the consolidation shall not prevent the
71-9 consolidation of the other districts.
71-10 Sec. 36.355. GOVERNING CONSOLIDATED DISTRICTS. (a) After
71-11 two or more districts are consolidated, they become one district
71-12 and are governed as one district.
71-13 (b) During the transition period, the officers of each
71-14 district shall continue to act jointly as officers of the original
71-15 districts to settle the affairs of their respective districts.
71-16 (c) If the consolidated district elects directors, directors
71-17 for the consolidated district shall be elected in the same manner
71-18 and for the same term as directors elected at a confirmation
71-19 election. The directors election shall be set for the next regular
71-20 election.
71-21 Sec. 36.356. DEBTS OF ORIGINAL DISTRICTS. (a) After two or
71-22 more districts are consolidated, the consolidated district shall
71-23 protect the debts of the original districts and shall assure that
71-24 the debts are not impaired. If the consolidated district has
71-25 taxing authority, the debts may be paid by taxes levied on the land
71-26 in the original districts as if they had not consolidated or from
71-27 contributions from the consolidated district on terms stated in the
72-1 consolidation agreement.
72-2 (b) If the consolidated district has taxing authority and
72-3 assumes the bonds, notes, and other obligations of the original
72-4 districts, taxes may be levied uniformly on all taxable property
72-5 within the consolidated district to pay the debts.
72-6 Sec. 36.357. ASSESSMENT AND COLLECTION OF TAXES. If the
72-7 consolidated district has taxing authority, the district shall
72-8 assess and collect taxes on property on all property in the
72-9 district for maintenance and operation of the district.
72-10 Sec. 36.358. VOTED BUT UNISSUED BONDS. If either district
72-11 has voted but unissued bonds payable in whole or in part from
72-12 taxation assumed by the consolidated district, the consolidated
72-13 district may issue the voted but unissued bonds in the name of the
72-14 consolidated district and levy a uniform tax on all taxable
72-15 property in the consolidated district to pay for the bonds.
72-16 Sec. 36.359. FILING OF ORDER WITH COUNTY CLERK AND EXECUTIVE
72-17 DIRECTOR. A consolidation order issued by the board shall be kept
72-18 in the records of the consolidated district, recorded in the office
72-19 of the county clerk in each of the counties in the consolidated
72-20 district, and filed with the executive director.
72-21 SECTION 3. Section 151.003(b), Water Code, is amended to
72-22 read as follows:
72-23 (b) Except as provided in this subsection, an adjoining
72-24 county may be added to the district on application of the
72-25 commissioners court of the adjoining county and by complying with
72-26 the procedures provided in Subchapter K, Chapter 36 <Sections
72-27 55.730-55.744 of this code, to the extent those provisions are
73-1 applicable>. Any county added under this subchapter is subject to
73-2 the jurisdiction of the board and this chapter, and two members
73-3 shall be added to the board. One shall be chosen by the
73-4 commissioners court of the county added to the district and one
73-5 shall be chosen by the mayor of the city that has the largest
73-6 population in the county that is added. The two new members shall
73-7 draw lots to establish staggered terms of office.
73-8 SECTION 4. Section 151.005(a), Water Code, is amended to
73-9 read as follows:
73-10 (a) The district has all of the rights, powers, privileges,
73-11 authority, functions, and duties provided by the general law of
73-12 this state, including Chapter 36 <Chapters 50 and 52 of this code>,
73-13 applicable to groundwater <underground water> conservation
73-14 districts created under Article XVI, Section 59, of the Texas
73-15 Constitution.
73-16 SECTION 5. Section 151.005(c), Water Code, is amended to
73-17 read as follows:
73-18 (c) Sections 36.104, 36.114, 36.117, 36.201, 36.202, 36.203,
73-19 and 36.204 <52.1511, 52.156, 52.167, 52.168, 52.170, and 52.173 of
73-20 this code> and Subchapter I, Chapter 36 <Subchapters B, C, H, I, J,
73-21 and K of Chapter 52 of this code> do not apply to the district.
73-22 SECTION 6. Chapter 52, Water Code, is repealed.
73-23 SECTION 7. The importance of this legislation and the
73-24 crowded condition of the calendars in both houses create an
73-25 emergency and an imperative public necessity that the
73-26 constitutional rule requiring bills to be read on three several
73-27 days in each house be suspended, and this rule is hereby suspended.
74-1 COMMITTEE AMENDMENT NO. 1
74-2 Amend H.B. No. 2294 as follows:
74-3 (1) On page 2, line 14, strike "measurably" and substitute
74-4 "appreciably".
74-5 (2) On page 17, beginning on line 5, strike proposed Section
74-6 35.018.
74-7 (3) On page 20, line 21, strike "measurably" and substitute
74-8 "appreciably".
74-9 (4) On page 44, strike lines 5 through 19, and substitute
74-10 the following:
74-11 "Sec. 36.107. RESEARCH AND PLANNING. (a) A district may
74-12 carry out any research projects deemed necessary by the board.
74-13 (b) Following notice and hearing, the district shall develop
74-14 a comprehensive management plan for the most efficient use of the
74-15 groundwater, for controlling and preventing waste of groundwater,
74-16 and for controlling and preventing subsidence. The plan may be
74-17 reviewed annually but must be reviewed by the board at least once
74-18 every five years.
74-19 (c) The district shall specify in the management plan, in as
74-20 much detail as possible, the acts, procedures, performance, and
74-21 avoidance that are or may be necessary to effect the plan,
74-22 including specifications and proposed rules. The district shall
74-23 adopt rules necessary to implement the management plan. The
74-24 district shall file a copy of the management plan and the rules
74-25 with the commission.
74-26 Sec. 36.108. JOINT PLANNING IN A MANAGEMENT AREA. (a) If
74-27 two or more districts are located within the boundaries of the same
75-1 management area, each district shall prepare a comprehensive
75-2 management plan as required by Section 36.107 covering that
75-3 district's respective territory. On completion of the plan, each
75-4 district shall forward a copy of the new revised management plan to
75-5 the other districts in the management area.
75-6 (b) The board of directors of each district in the
75-7 management area may, by resolution, call a joint meeting with the
75-8 boards of directors of the other districts in the management area
75-9 to review the management plans and accomplishments for the
75-10 management area. The boards shall meet to consider the plans
75-11 individually and shall compare them to other management plans then
75-12 in force in the management area. In reviewing the management
75-13 plans, the boards shall consider:
75-14 (1) the goals of each management plan and its impact
75-15 on planning throughout the management area;
75-16 (2) the effectiveness of the measures established by
75-17 each management plan for conserving and protecting groundwater and
75-18 preventing waste, and the effectiveness of these measures in the
75-19 management area generally; and
75-20 (3) any other matters that the boards consider
75-21 relevant to the protection and conservation of groundwater and the
75-22 prevention of waste in the management area.
75-23 (c) A joint meeting of the boards of directors must be held
75-24 in accordance with the Open Meetings Act, Chapter 551, Government
75-25 Code. Notice of the meeting shall be given in accordance with the
75-26 requirements for notice of district board of directors meeting
75-27 under that Act. In addition, notice of the meeting shall be
76-1 published not later than the 30th day before the date of the
76-2 scheduled meeting in a newspaper with general circulation in each
76-3 county in the management area.
76-4 (d) A district in the management area may file a petition
76-5 with the commission requesting an inquiry if the petitioner
76-6 district believes that:
76-7 (1) another district in the management area has failed
76-8 to adopt rules;
76-9 (2) the groundwater in the management area is not
76-10 adequately protected by the rules adopted by another district; or
76-11 (3) the groundwater in the management area is not
76-12 adequately protected due to the failure of another district to
76-13 enforce substantial compliance with its rules.
76-14 (e) Not later than the 90th day after the date the petition
76-15 is filed, the commission shall review the petition and either:
76-16 (1) dismiss it if it finds that the evidence is not
76-17 adequate to show that any of the conditions alleged in the petition
76-18 exist; or
76-19 (2) select a review panel as provided in Subsection
76-20 (f).
76-21 (f) The commission may appoint a review panel consisting of
76-22 a chairman and four other members. A director or general manager
76-23 of a district located outside the management area that is the
76-24 subject of the petition may be appointed to the review panel. The
76-25 commission may not appoint more than two members of the review
76-26 panel from any one district. The commission also shall appoint a
76-27 disinterested person to serve as a nonvoting recording secretary
77-1 for the review panel. The recording secretary may be an employee
77-2 of the commission. The recording secretary shall record and
77-3 document the proceedings of the panel.
77-4 (g) Not later than the 120th day after appointment, the
77-5 review panel shall review the petition and any evidence relevant to
77-6 the petition and, in a public meeting, prepare a report to the
77-7 commission. The commission may direct the review panel to conduct
77-8 public hearings at a location in the management area to take
77-9 evidence on the petition. The review panel may attempt to
77-10 negotiate a settlement or resolve the dispute by any lawful means.
77-11 (h) In its report, the review panel shall include:
77-12 (1) a summary of all evidence taken in any hearing on
77-13 the petition;
77-14 (2) a list of findings and recommended actions
77-15 appropriate for the commission to take and the reasons it finds
77-16 those actions appropriate; and
77-17 (3) any other information the panel considers
77-18 appropriate."
77-19 (5) On page 43, strike lines 24 and 25, and substitute the
77-20 following:
77-21 "Sec. 36.106. SURVEYS. A district may make surveys of the"
77-22 Lewis of Orange
77-23 COMMITTEE AMENDMENT NO. 2
77-24 Amend H.B. No. 2294 as follows:
77-25 (1) On page 2, strike lines 19 through 27, and on page 3,
77-26 strike lines 1 through 23.
77-27 (2) On page 4, line 24, strike "an" and substitute "a", and
78-1 on line 25 strike "an" and substitute "a".
78-2 (3) On page 119, strike lines 22 through 24, and substitute
78-3 the following:
78-4 "of each political subdivision located either partially or
78-5 entirely in the critical area.".
78-6 (4) On page 14, strike lines 18 and 19, and substitute the
78-7 following:
78-8 'District." If the district has issued bonds, the
78-9 proposition shall include the following language: "and assumption
78-10 by the described area of a proportional share of the outstanding
78-11 indebtedness of the district."'.
78-12 (5) On page 15, strike lines 21 through 23, and substitute
78-13 the following:
78-14 "Sec. 35.015. STATE ASSISTANCE. (a) A political
78-15 subdivision located in or".
78-16 (6) On page 16, strike lines 3 and 4, and substitute the
78-17 following:
78-18 "(b) A political subdivision".
78-19 (7) On page 16, strike lines 16 through 18, and substitute
78-20 the following:
78-21 "(b) A district is considered active if it meets the
78-22 requirements in Section 36.301(c).".
78-23 (8) On page 17, line 1, strike "state-owner" and substitute
78-24 "state-owned" and on line 24 insert a comma following "waste".
78-25 (9) On page 23, strike lines 19 and 20, and substitute the
78-26 following:
78-27 "(d) A district may consist of separate bodies of land
79-1 separated".
79-2 (10) On page 30, line 5, between "appointment of" and
79-3 "board" insert "the"; and on line 16, between "except any" and "law
79-4 governing" insert "special".
79-5 (11) On page 37, line 21, strike "microfilming," and
79-6 substitute "storage,".
79-7 (12) On page 39, line 12, strike the proposed Section 36.068
79-8 and substitute the following:
79-9 "Sec. 36.068. EMPLOYEE BENEFITS. (a) The board may provide
79-10 for and administer retirement, disability, and death compensation
79-11 funds for the employees of the district.
79-12 (b) The board may establish a public retirement system in
79-13 accordance with the provisions of Chapter 810, Government Code.
79-14 The board may also provide for a deferred compensation plan
79-15 described by Section 457 of the Internal Revenue Code of 1986 (26
79-16 U.S.C. Section 457).
79-17 (c) The board may include hospitalization and medical
79-18 benefits to its employees as part of the compensation paid to the
79-19 officers and employees and may adopt any plan, rule, or regulation
79-20 in connection with it and amend or change the plan, rule, or
79-21 regulation as it may determine."
79-22 (13) On page 41, line 14, strike "in a book".
79-23 (14) On page 51, strike line 7 and substitute the following:
79-24 "Sec. 36.121. LIMITATION ON RULE-MAKING POWER OF DISTRICTS
79-25 OVER WELLS IN CERTAIN COUNTIES. Except as provided by Section
79-26 36.117, a district that is created under this chapter on or after
79-27 September 1, 1991, shall exempt from regulation under this chapter
80-1 a well and any water produced or to be produced by a well that is
80-2 located in a county that has a population of 14,000 or less if the
80-3 water is to be used solely to supply a municipality that has a
80-4 population of 115,000 or less and the rights to the water produced
80-5 from the well are owned by a political subdivision that is not a
80-6 municipality, or by a municipality that has a population of 93,000
80-7 or less, and that purchased, owned, or held rights to the water
80-8 before the date on which the district was created, regardless of
80-9 the date the well is drilled or the water is produced. The
80-10 district may not prohibit the political subdivision or municipality
80-11 from transporting produced water inside or outside the district's
80-12 boundaries.
80-13 (Sections 36.122-36.150 reserved for expansion"
80-14 (15) On page 39, line 11, strike "a" and on line 12 strike
80-15 the second occurrence of "the".
80-16 (16) On page 59, line 20, strike the first occurrence of
80-17 "chapter".
80-18 (17) On page 61, line 12, strike "the board" and substitute
80-19 "The board".
80-20 (18) On page 62, line 21, following the period at the end of
80-21 the sentence add the following:
80-22 "The suit may only be filed after all administrative appeals
80-23 to the district are final."
80-24 (19) On page 64, line 24, strike "five" and substitute
80-25 "three".
80-26 Lewis of Orange