1-1 By: Yost (Senate Sponsor - Armbrister) H.B. No. 2294
1-2 (In the Senate - Received from the House May 5, 1995;
1-3 May 8, 1995, read first time and referred to Committee on Natural
1-4 Resources; May 19, 1995, reported favorably, as amended, by the
1-5 following vote: Yeas 7, Nays 0; May 19, 1995, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Armbrister
1-7 Amend H.B. No. 2294 as follows:
1-8 (1) In SECTION 2 of the bill, in proposed Section 36.201,
1-9 Water Code (House Engrossment, page 59, between lines 16 and 17),
1-10 insert the following:
1-11 (c) The board may not levy a tax to pay the maintenance and
1-12 operating expenses of the district under this section until the tax
1-13 is approved by a majority of the electors voting at an election in
1-14 the district held for that purpose. The district may:
1-15 (1) hold an election for approval of the tax at the
1-16 same time and in conjunction with an election to authorize bonds,
1-17 following the procedures applicable to a bond election; or
1-18 (2) hold a separate election for approval of the tax
1-19 in accordance with Subsection (d).
1-20 (d) An order calling a separate election for approval of a
1-21 tax under this section must be issued at least 15 days before the
1-22 date of the election, and the election notice must be published at
1-23 least twice in a newspaper of general circulation in the district.
1-24 The first publication of the notice must be at least 14 days before
1-25 the date of the election.
1-26 (2) Add the following section, appropriately numbered, and
1-27 renumber the subsequent sections of the bill accordingly:
1-28 SECTION ____. An election conducted by a district formerly
1-29 governed by Chapter 52, Water Code, on August 14, 1993, at which
1-30 voters in the district approved the levy of taxes for the
1-31 district's maintenance and operating expenses, is validated in all
1-32 respects as of the date on which the election occurred. A
1-33 district's levy and collection of taxes, as approved by that
1-34 election, and a district's subsequent acts and proceedings may not
1-35 be held invalid on the ground that the district was not authorized
1-36 to levy the taxes or conduct the election.
1-37 A BILL TO BE ENTITLED
1-38 AN ACT
1-39 relating to the regulation of groundwater; granting the power of
1-40 eminent domain.
1-41 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-42 SECTION 1. The caption of Title 2, Water Code, is amended to
1-43 read as follows:
1-44 TITLE 2. <STATE> WATER ADMINISTRATION
1-45 SECTION 2. Title 2, Water Code, is amended by adding
1-46 Subtitle E to read as follows:
1-47 SUBTITLE E. GROUNDWATER MANAGEMENT
1-48 CHAPTER 35. GROUNDWATER STUDIES
1-49 Sec. 35.001. PURPOSE. In order to provide for the
1-50 conservation, preservation, protection, recharging, and prevention
1-51 of waste of the groundwater, and of groundwater reservoirs or their
1-52 subdivisions, and to control subsidence caused by withdrawal of
1-53 water from those groundwater reservoirs or their subdivisions,
1-54 consistent with the objectives of Section 59, Article XVI, Texas
1-55 Constitution, groundwater management areas may be created as
1-56 provided by this chapter.
1-57 Sec. 35.002. DEFINITIONS. In this chapter:
1-58 (1) "District" means any district or authority created
1-59 under Section 52, Article III, or Section 59, Article XVI, Texas
1-60 Constitution, that has the authority to regulate the spacing of
1-61 water wells, the production from water wells, or both.
1-62 (2) "Commission" means the Texas Natural Resource
1-63 Conservation Commission.
1-64 (3) "Executive director" means the executive director
1-65 of the commission.
1-66 (4) "Executive administrator" means the executive
1-67 administrator of the Texas Water Development Board.
1-68 (5) "Groundwater" means water percolating below the
2-1 surface of the earth.
2-2 (6) "Groundwater reservoir" means a specific
2-3 subsurface water-bearing reservoir having ascertainable boundaries
2-4 containing groundwater.
2-5 (7) "Subdivision of a groundwater reservoir" means a
2-6 definable part of a groundwater reservoir in which the groundwater
2-7 supply will not be appreciably affected by withdrawing water from
2-8 any other part of the reservoir, as indicated by known geological
2-9 and hydrological conditions and relationships and on foreseeable
2-10 economic development at the time the subdivision is designated or
2-11 altered.
2-12 (8) "Subsidence" means the lowering in elevation of
2-13 the land surface caused by withdrawal of groundwater.
2-14 (9) "Board" means the board of directors of a
2-15 district.
2-16 (10) "Director" means a member of a board.
2-17 (11) "Management area" means an area designated and
2-18 delineated by the commission as an area suitable for management of
2-19 groundwater resources.
2-20 (12) "Critical area" means an area designated and
2-21 delineated by the commission as an area that is experiencing or is
2-22 expected to experience critical groundwater problems.
2-23 (13) "Political subdivision" means a county,
2-24 municipality, or other body politic or corporate of the state,
2-25 including a district or authority created under Section 52, Article
2-26 III, or Section 59, Article XVI, Texas Constitution, a state
2-27 agency, or a nonprofit water supply corporation created under
2-28 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
2-29 (Article 1434a, Vernon's Texas Civil Statutes).
2-30 Sec. 35.003. SURFACE WATER LAWS NOT APPLICABLE. The laws
2-31 and administrative rules relating to the use of surface water do
2-32 not apply to groundwater.
2-33 Sec. 35.004. DESIGNATION OF MANAGEMENT AREAS. (a) On its
2-34 own motion from time to time, or on receiving a petition, the
2-35 commission may designate groundwater management areas. Each
2-36 management area shall be designated with the objective of providing
2-37 the most suitable area for the management of the groundwater
2-38 resources. To the extent feasible, the management area shall
2-39 coincide with the boundaries of a groundwater reservoir or a
2-40 subdivision of a groundwater reservoir. The commission also may
2-41 consider other factors, including the boundaries of political
2-42 subdivisions.
2-43 (b) On the request of any person interested in the petition,
2-44 or on the request of the commission, the executive director shall
2-45 prepare available evidence relating to the configuration of a
2-46 groundwater management area. Before making the designation, the
2-47 commission shall consider the evidence prepared by the executive
2-48 director and other evidence submitted at the hearing.
2-49 (c) The commission may alter the boundaries of designated
2-50 management areas as required by future conditions and as justified
2-51 by factual data. An alteration of boundaries does not invalidate
2-52 the previous creation of any district.
2-53 (d) The commission shall designate groundwater management
2-54 areas using the procedures applicable to rulemaking under the
2-55 Administrative Procedure Act, Subchapter B, Chapter 2001,
2-56 Government Code.
2-57 Sec. 35.005. PETITION TO DESIGNATE A GROUNDWATER MANAGEMENT
2-58 AREA. (a) A petition may be submitted to the commission for the
2-59 sole purpose of requesting that the commission designate a
2-60 management area for all or part of one or more counties.
2-61 (b) A petition filed pursuant to this section must be signed
2-62 by:
2-63 (1) a majority of the landowners in the proposed
2-64 management area; or
2-65 (2) if there are more than 50 landowners in the
2-66 proposed management area, at least 50 of those landowners.
2-67 (c) A petition filed pursuant to this section must contain
2-68 the following statement:
2-69 "Petitioners request that the Texas Natural Resource
2-70 Conservation Commission designate a groundwater management area to
3-1 include all or part of ______________ County (counties). The
3-2 management area shall be designated with the objective of providing
3-3 the most suitable area for the management of groundwater resources
3-4 of the part of the state in which a district is to be located.
3-5 Petitioners understand that this petition requests only the
3-6 designation of a management area, but that all or part of the land
3-7 in the management area designated may later be added to an existing
3-8 groundwater conservation district or become a new groundwater
3-9 conservation district, as provided by Chapter 36 of the Water
3-10 Code."
3-11 (d) A petition shall include a map that shows the location
3-12 of the proposed management area and may include any other
3-13 information desired by the petitioners concerning the proposed
3-14 management area.
3-15 (e) The petitioners shall file the petition with the
3-16 executive director for review in accordance with the rules of the
3-17 commission. The petitioners shall supply any additional
3-18 information requested by the commission or the executive director.
3-19 (f) The commission shall act on the petition within a
3-20 reasonable amount of time.
3-21 Sec. 35.006. NOTICE FOR DESIGNATION OF MANAGEMENT AREA. (a)
3-22 In addition to the notice required under the Administrative
3-23 Procedure Act, Section 2001.023, Government Code, the petitioners
3-24 shall have notice published in at least one newspaper with general
3-25 circulation in the county or counties in which the proposed
3-26 management area is to be located. Notice must be published not
3-27 later than the 30th day before the date set for the commission to
3-28 consider the designation of the management area.
3-29 (b) The notice must include:
3-30 (1) a statement of the general purpose and effect of
3-31 designating the proposed management area;
3-32 (2) a map generally outlining the boundaries of the
3-33 proposed management area or notice of the location at which a copy
3-34 of the map may be examined or obtained; and
3-35 (3) the time and place at which the commission will
3-36 consider the designation of the management area.
3-37 (c) If the commission designates a management area on its
3-38 own motion, the commission shall give the same notice as required
3-39 of the petitioner under this section.
3-40 Sec. 35.007. IDENTIFYING, DESIGNATING, AND DELINEATING
3-41 CRITICAL AREAS. (a) The executive director and the executive
3-42 administrator shall meet at least once a year to identify those
3-43 areas of the state that are experiencing or that are expected to
3-44 experience, based on information available to the commission and
3-45 the Texas Water Development Board, within the immediately following
3-46 20-year period, critical groundwater problems, including shortages
3-47 of surface or groundwater, land subsidence resulting from
3-48 groundwater withdrawal, and contamination of groundwater supplies.
3-49 (b) If the executive director concludes that an area of the
3-50 state should be considered for designation as a critical area, the
3-51 executive director shall prepare a report to the commission.
3-52 (c) The executive director shall begin preparation of a
3-53 critical area report by requesting a study from the executive
3-54 administrator. The study must include an appraisal of the
3-55 hydrogeology of the area and matters within the Texas Water
3-56 Development Board's planning expertise relevant to the area. The
3-57 study must be completed and delivered to the executive director on
3-58 or before the 90th day following the date of the request. If the
3-59 study is not delivered within this 90-day period, the executive
3-60 director may proceed with the preparation of the report.
3-61 (d) The report shall include:
3-62 (1) the recommended delineation of the boundaries of
3-63 any proposed critical area in the form of a rule to be considered
3-64 for adoption by the commission;
3-65 (2) the reasons and supporting information for or
3-66 against designating the area as a critical area;
3-67 (3) a recommendation regarding whether a district
3-68 should be created in the critical area or whether the critical area
3-69 should be added to an existing district;
3-70 (4) any other information that the executive director
4-1 considers helpful to the commission.
4-2 (e) The executive director must complete the report and file
4-3 it with the commission on or before the 210th day following the
4-4 date on which the executive administrator was requested to produce
4-5 a study. The executive director shall make the report available
4-6 for public inspection by providing a copy of the report to at least
4-7 one library in each county in which the proposed critical area is
4-8 located.
4-9 (f) To carry out this section, the executive director may
4-10 make necessary studies, hold hearings, solicit and collect
4-11 information, and use information already prepared by the executive
4-12 director or the executive administrator for other purposes.
4-13 Sec. 35.008. PROCEDURES FOR DESIGNATION OF CRITICAL AREAS.
4-14 (a) The commission shall designate critical areas using the
4-15 procedures applicable to rulemaking under the Administrative
4-16 Procedure Act, Subchapter B, Chapter 2001, Government Code, but if
4-17 procedures required by this chapter are in conflict with that Act,
4-18 this chapter controls.
4-19 (b) The designation of a critical area may not be appealed
4-20 nor may it be challenged under the Administrative Procedure Act,
4-21 Section 2001.038, Government Code.
4-22 Sec. 35.009. NOTICE AND HEARING. (a) In addition to the
4-23 notice required for rulemaking under the Administrative Procedure
4-24 Act, Section 2001.023, Government Code, the commission shall have
4-25 notice published in at least one newspaper with general circulation
4-26 in the county or counties in which the proposed critical area is to
4-27 be located. Notice must be published not later than the 30th day
4-28 before the date set for the commission to consider the designation
4-29 of the critical area.
4-30 (b) The notice must include:
4-31 (1) a statement of the general purpose and effect of
4-32 designating the proposed critical areas;
4-33 (2) a map generally outlining the boundaries of the
4-34 proposed critical area or notice of the location at which a copy of
4-35 the map may be examined or obtained;
4-36 (3) a description or the name of the locations at
4-37 which the commission has provided copies of the executive
4-38 director's report to be made available for public inspection; and
4-39 (4) the date, time, and place at which the commission
4-40 will consider the designation of the critical areas.
4-41 Sec. 35.010. CONSIDERATION OF CREATION OF DISTRICT OR
4-42 ADDITION OF LAND IN CRITICAL AREA TO EXISTING DISTRICT. (a)
4-43 Following its designation of a critical area, the commission may
4-44 call a hearing to consider:
4-45 (1) whether a district should be created over all or
4-46 part of a critical area; or
4-47 (2) whether all or part of the land in the critical
4-48 area should be added to an existing district.
4-49 (b) Evidentiary hearings shall be held at a location in one
4-50 of the counties in which the critical area is located or in the
4-51 nearest convenient location if adequate facilities are not
4-52 available in the critical area.
4-53 (c) At the hearing, the commission shall hear testimony and
4-54 receive evidence from all interested parties. The commission shall
4-55 consider the executive director's report and supporting information
4-56 and the testimony and evidence received at the hearing. If the
4-57 commission considers further information necessary, it may request
4-58 it from any source.
4-59 Sec. 35.011. NOTICE OF HEARING TO CREATE DISTRICT OR ADD
4-60 CRITICAL AREA TO EXISTING DISTRICT. (a) The commission shall have
4-61 notice of the hearing published in a newspaper with general
4-62 circulation in the county or counties in which the area being
4-63 considered for district creation or addition to an existing
4-64 district is located. Notice must be published not later than the
4-65 30th day before the date of the hearing.
4-66 (b) The notice must include:
4-67 (1) a general statement of the nature and purpose of
4-68 the district that may be created in the critical area;
4-69 (2) if applicable, a statement that all or part of the
4-70 land in the critical area could be added to an existing district;
5-1 (3) a map generally outlining the boundaries of the
5-2 critical area being considered for district creation or addition to
5-3 an existing district or notice of the location at which a copy of
5-4 the map may be examined or obtained;
5-5 (4) a statement that the full executive director's
5-6 report concerning the critical area in question is available at the
5-7 commission's main office in Austin, Texas, and that the report is
5-8 available for inspection during regular business hours;
5-9 (5) the name and address of each library in the
5-10 proposed critical area to which the commission has provided copies
5-11 of the executive director's report; and
5-12 (6) the date, time, and place of the hearing.
5-13 (c) The commission also shall give written notice of the
5-14 date, time, place, and purpose of the hearing to the governing body
5-15 of each political subdivision located either partially or entirely
5-16 in the critical area. The notice must be given before the 30th day
5-17 preceding the date set for the hearing.
5-18 Sec. 35.012. COMMISSION ORDER. (a) At the conclusion of
5-19 its hearing and considerations, the commission shall issue an order
5-20 stating its findings and conclusions.
5-21 (b) If the commission finds that the land and other property
5-22 in the critical area would benefit from the creation of one or more
5-23 districts, that there is a public need for one or more districts,
5-24 and that the creation of one or more districts would further the
5-25 public welfare, the commission shall issue an order stating that
5-26 the creation of one or more districts is needed.
5-27 (c) During the period between the date of issuance of a
5-28 commission order under Subsection (b) and one year after the close
5-29 of the next regular session of the legislature following the
5-30 issuance of the order, the landowners in the critical area may:
5-31 (1) create one or more districts under Subchapter B,
5-32 Chapter 36;
5-33 (2) have the area annexed to a district that adjoins
5-34 the area; or
5-35 (3) create one or more districts through the
5-36 legislative process.
5-37 (d) The commission shall identify the areas subject to the
5-38 order of the commission issued under Subsection (b) that have not,
5-39 in the period provided by Subsection (c), been incorporated into a
5-40 district, and shall delineate proposed boundaries of a district to
5-41 include those areas. If the commission proposes the creation of
5-42 one or more districts, the commission shall begin the procedures
5-43 for creation of a district provided in Subchapter B, Chapter 36.
5-44 (e) If the commission fails to find that the district would
5-45 be a benefit to the land and other property within the critical
5-46 area, that there is a public need for the district, or that
5-47 creation of the district will further the public welfare, the
5-48 commission shall issue an order stating that a district should not
5-49 be created within the boundaries of the critical area.
5-50 (f) An order of the commission issued under this section may
5-51 not be appealed.
5-52 Sec. 35.013. ADDING CRITICAL AREA TO EXISTING DISTRICT. (a)
5-53 If land in a critical area is located adjacent to one or more
5-54 existing districts, the commission, instead of issuing an order
5-55 under Section 35.012, may issue an order recommending that the
5-56 critical area be added to the existing district designated by the
5-57 commission. In its order, the commission must find that the land
5-58 and other property in the critical area and the land in the
5-59 existing district will benefit from the addition of the area, that
5-60 there is a public need to add the critical area to the existing
5-61 district, and that the addition of the land to the existing
5-62 district would further the public welfare.
5-63 (b) If the executive director recommends that the critical
5-64 area be added to an existing district or if the commission
5-65 considers it possible to add the critical area to an adjacent
5-66 existing district, the commission shall give notice to the board of
5-67 the existing district recommended by the executive director or
5-68 considered by the commission to possibly serve the area and to any
5-69 other existing districts adjacent to the critical area.
5-70 (c) The commission shall submit a copy of the order to the
6-1 board of the district to which it is recommending the critical area
6-2 be added. The board shall vote on the addition of the critical
6-3 area to the district and shall advise the commission of the
6-4 outcome.
6-5 (d) If the board votes to accept the addition of the
6-6 critical area to the district, the board shall call an election
6-7 within the critical area as delineated by the commission to
6-8 determine if the critical area will be added to the district. In
6-9 the order calling the election, the board shall designate election
6-10 precincts and polling places for the elections.
6-11 (e) The board shall give notice of the election and the
6-12 proposition to be voted on. The board shall publish notice of the
6-13 election at least one time in one or more newspapers with general
6-14 circulation within the boundaries of the critical area. The notice
6-15 must be published before the 30th day preceding the date set for
6-16 the election.
6-17 (f) The ballots for the election shall be printed to provide
6-18 for voting for or against the proposition: "The inclusion of
6-19 __________ (briefly describe critical area) in the __________
6-20 District." If the district has issued bonds, the proposition shall
6-21 include the following language: "and assumption by the described
6-22 area of a proportional share of the outstanding indebtedness of the
6-23 district."
6-24 (g) Immediately after the election, the presiding judge of
6-25 each polling place shall deliver the returns of the election to the
6-26 board, and the board shall canvass the returns for the election
6-27 within the critical area and declare the results. If a majority of
6-28 the voters in the critical area voting on the proposition vote in
6-29 favor of the proposition, the board shall declare that the critical
6-30 area is added to the district. If a majority of the voters in the
6-31 critical area voting on the proposition vote against adding the
6-32 critical area to the district, the board shall declare that the
6-33 critical area is not added to the district. The board shall file a
6-34 copy of the election results with the commission.
6-35 (h) If the voters approve adding the critical area to the
6-36 district, the board of the district to which the critical area is
6-37 added shall provide reasonable representation on that board
6-38 compatible with the district's existing scheme of representation.
6-39 (i) If the proposition is defeated, another election to add
6-40 the critical area to an existing district may not be called before
6-41 the first anniversary of the date on which the election on the
6-42 proposition was held.
6-43 Sec. 35.014. COSTS OF ELECTIONS. (a) The costs of an
6-44 election to create a district at which a district is authorized to
6-45 be created shall be paid by the district.
6-46 (b) The costs of an election to add a critical area to an
6-47 existing district at which the voters approve adding the critical
6-48 area to the district shall be paid by the existing district.
6-49 (c) The costs of an election to create a district or add a
6-50 critical area to an existing district at which the proposition
6-51 fails shall be paid by the commission.
6-52 Sec. 35.015. STATE ASSISTANCE. (a) A political subdivision
6-53 located in or that has within its boundaries an area or part of an
6-54 area delineated as a critical area, and in which the qualified
6-55 voters fail to approve the creation of a district or to join an
6-56 existing district, shall not be eligible to receive any financial
6-57 assistance from the state under Chapter 15, 16, or 17 for use
6-58 within that portion of the critical area not covered by a district.
6-59 (b) A political subdivision located in an area delineated as
6-60 a critical area, and in which qualified voters approve the creation
6-61 of a district or annexation into an existing district, shall be
6-62 given consideration to receive financial assistance from the state
6-63 under Chapter 17 for funds to be used in addressing issues
6-64 identified in the critical area report in the manner provided by
6-65 Sections 17.124 and 17.125, except that the board is not required
6-66 to make the finding set out in Section 17.125(a)(2).
6-67 Sec. 35.016. EXEMPTION FROM CHAPTER. (a) This chapter does
6-68 not apply to any active groundwater conservation district or to
6-69 land within an active groundwater conservation district.
6-70 (b) A district is considered active if it meets the
7-1 requirements in Section 36.301(c).
7-2 Sec. 35.017. STATE-OWNED LAND. If state-owned land or a
7-3 portion of state-owned land is located in a critical area, the
7-4 state agency that has management and control over that land under
7-5 the constitution or by statute may elect by written agreement with
7-6 the commission and the district to include the state-owned land in
7-7 the district. The agreement shall be entered into as provided by
7-8 the Texas Intergovernmental Cooperation Act, Chapter 741,
7-9 Government Code, and may include provisions for the payment by the
7-10 state agency of reasonable fees to the district. If the state does
7-11 not elect to enter into the agreement to include the state-owned
7-12 land in the district, the state agency must establish a groundwater
7-13 management plan that will conserve, protect, and prevent the waste
7-14 of groundwater on that state-owned land.
7-15 CHAPTER 36. GROUNDWATER CONSERVATION DISTRICTS
7-16 SUBCHAPTER A. GENERAL PROVISIONS
7-17 Sec. 36.001. DEFINITIONS. In this chapter:
7-18 (1) "District" means any district or authority created
7-19 under Section 52, Article III, or Section 59, Article XVI, Texas
7-20 Constitution, that has the authority to regulate the spacing of
7-21 water wells, the production from water wells, or both.
7-22 (2) "Commission" means the Texas Natural Resource
7-23 Conservation Commission.
7-24 (3) "Executive director" means the executive director
7-25 of the commission.
7-26 (4) "Executive administrator" means the executive
7-27 administrator of the Texas Water Development Board.
7-28 (5) "Groundwater" means water percolating below the
7-29 surface of the earth.
7-30 (6) "Groundwater reservoir" means a specific
7-31 subsurface water-bearing reservoir having ascertainable boundaries
7-32 containing groundwater.
7-33 (7) "Subdivision of a groundwater reservoir" means a
7-34 definable part of a groundwater reservoir in which the groundwater
7-35 supply will not be appreciably affected by withdrawing water from
7-36 any other part of the reservoir, as indicated by known geological
7-37 and hydrological conditions and relationships and on foreseeable
7-38 economic development at the time the subdivision is designated or
7-39 altered.
7-40 (8) "Waste" means any one or more of the following:
7-41 (A) withdrawal of groundwater from a groundwater
7-42 reservoir at a rate and in an amount that causes or threatens to
7-43 cause intrusion into the reservoir of water unsuitable for
7-44 agricultural, gardening, domestic, or stock raising purposes;
7-45 (B) the flowing or producing of wells from a
7-46 groundwater reservoir if the water produced is not used for a
7-47 beneficial purpose;
7-48 (C) escape of groundwater from a groundwater
7-49 reservoir to any other reservoir or geologic strata that does not
7-50 contain groundwater;
7-51 (D) pollution or harmful alteration of
7-52 groundwater in a groundwater reservoir by saltwater or by other
7-53 deleterious matter admitted from another stratum or from the
7-54 surface of the ground;
7-55 (E) wilfully or negligently causing, suffering,
7-56 or allowing groundwater to escape into any river, creek, natural
7-57 watercourse, depression, lake, reservoir, drain, sewer, street,
7-58 highway, road, or road ditch, or onto any land other than that of
7-59 the owner of the well unless such discharge is authorized by
7-60 permit, rule, or order issued by the commission under Chapter 26;
7-61 (F) groundwater pumped for irrigation that
7-62 escapes as irrigation tailwater onto land other than that of the
7-63 owner of the well unless permission has been granted by the
7-64 occupant of the land receiving the discharge; or
7-65 (G) for water produced from an artesian well,
7-66 "waste" has the meaning assigned by Section 11.205.
7-67 (9) "Use for a beneficial purpose" means use for:
7-68 (A) agricultural, gardening, domestic, stock
7-69 raising, municipal, mining, manufacturing, industrial, commercial,
7-70 recreational, or pleasure purposes;
8-1 (B) exploring for, producing, handling, or
8-2 treating oil, gas, sulphur, or other minerals; or
8-3 (C) any other purpose that is useful and
8-4 beneficial to the user.
8-5 (10) "Subsidence" means the lowering in elevation of
8-6 the land surface caused by withdrawal of groundwater.
8-7 (11) "Board" means the board of directors of a
8-8 district.
8-9 (12) "Director" means a member of a board.
8-10 (13) "Management area" means an area designated and
8-11 delineated by the commission under Chapter 35 as an area suitable
8-12 for management of groundwater resources.
8-13 (14) "Critical area" means an area designated and
8-14 delineated by the commission under Chapter 35 as an area
8-15 experiencing or expected to experience critical groundwater
8-16 problems.
8-17 (15) "Political subdivision" means a county,
8-18 municipality, or other body politic or corporate of the state,
8-19 including a district or authority created under Section 52, Article
8-20 III, or Section 59, Article XVI, Texas Constitution, a state
8-21 agency, or a nonprofit water supply corporation created under
8-22 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
8-23 (Article 1434a, Vernon's Texas Civil Statutes).
8-24 Sec. 36.002. OWNERSHIP OF GROUNDWATER. The ownership and
8-25 rights of the owners of the land and their lessees and assigns in
8-26 groundwater are hereby recognized, and nothing in this code shall
8-27 be construed as depriving or divesting the owners or their lessees
8-28 and assigns of the ownership or rights, subject to rules
8-29 promulgated by a district.
8-30 (Sections 36.003-36.010 reserved for expansion
8-31 SUBCHAPTER B. CREATION OF DISTRICT
8-32 Sec. 36.011. METHOD OF CREATING DISTRICT. (a) A
8-33 groundwater conservation district may be created under and subject
8-34 to the authority, conditions, and restrictions of Section 59,
8-35 Article XVI, Texas Constitution.
8-36 (b) The commission has exclusive jurisdiction over the
8-37 delineation of management areas and the creation of districts.
8-38 Sec. 36.012. COMPOSITION OF DISTRICT. (a) A district may
8-39 include all or part of one or more counties, cities, districts, or
8-40 other political subdivisions.
8-41 (b) A district may not include territory located in more
8-42 than one county except on a majority vote of the voters residing
8-43 within the territory in each county sought to be included in the
8-44 district at an election called for that purpose.
8-45 (c) The boundaries of a district must be coterminous with or
8-46 inside the boundaries of a management area or a critical area.
8-47 (d) A district may consist of separate bodies of land
8-48 separated by land not included in the district.
8-49 (e) A majority of the voters in a segregated area must
8-50 approve the creation of the district before that area may be
8-51 included in the district.
8-52 Sec. 36.013. PETITION TO CREATE DISTRICT. (a) A petition
8-53 requesting creation of a district must be filed with the executive
8-54 director for review and submission to the commission.
8-55 (b) The petition filed pursuant to this section must be
8-56 signed by:
8-57 (1) a majority of the landowners within the proposed
8-58 district, as indicated by the county tax rolls; or
8-59 (2) if there are more than 50 landowners in the
8-60 proposed district, at least 50 of those landowners.
8-61 (c) The petition must include:
8-62 (1) the name of the proposed district;
8-63 (2) the area and boundaries of the proposed district,
8-64 including a map generally outlining the boundaries of the proposed
8-65 district;
8-66 (3) the purpose or purposes of the district;
8-67 (4) a statement of the general nature of any projects
8-68 proposed to be undertaken by the district, the necessity and
8-69 feasibility of the work, and the estimated costs of those projects
8-70 according to the persons filing the projects if the projects are to
9-1 be funded by the sale of bonds or notes; and
9-2 (5) any additional terms or conditions that restrict
9-3 the powers of the district from those provided in this chapter.
9-4 (d) If a part of the proposed district is not included
9-5 within either a management area or a critical area, the petition to
9-6 create a district may also contain a request to create a management
9-7 area. A request to create a management area must comply with the
9-8 requirements for a petition in Section 35.005, and may be acted on
9-9 by the commission separately from the petition to create the
9-10 district.
9-11 Sec. 36.014. NOTICE AND HEARING ON DISTRICT CREATION. (a)
9-12 The notice of hearing on a petition must include a statement of the
9-13 nature and purpose of the proposed district and the date, time, and
9-14 place of hearing.
9-15 (b) The notice must be posted on the bulletin board used for
9-16 posting legal notices in each county in which all or part of the
9-17 proposed district is to be located.
9-18 (c) Notice of the hearing shall be published in a newspaper
9-19 with general circulation in the county or counties in which the
9-20 proposed district is to be located. Notice must be published not
9-21 later than the 30th day before the date of the hearing.
9-22 (d) If the petition contains a request to create a
9-23 management area in all or part of the proposed district, the notice
9-24 must also be given in accordance with the requirements in Section
9-25 35.006 for the designation of management areas.
9-26 Sec. 36.015. FINDINGS. (a) If the commission finds that a
9-27 district is feasible and practicable, that it would be a benefit to
9-28 the land in the district, and that it would be a public benefit or
9-29 utility, the commission shall issue an order containing these
9-30 findings granting the petition.
9-31 (b) If the commission finds that a district is not feasible
9-32 and practicable, that it would not be a benefit to the land in the
9-33 district, that it would not be a public benefit or utility, or that
9-34 it is not needed, the commission by order shall deny the petition.
9-35 (c) The commission may adjust the boundaries of the proposed
9-36 district to exclude any land that would not be benefited by
9-37 inclusion in the district and is not necessary to the district for
9-38 proper regulation of the groundwater reservoir.
9-39 (d) If the commission grants the petition to create the
9-40 district, it shall direct in its order creating the district that
9-41 an election be called by the temporary directors to confirm the
9-42 creation of the district and to elect permanent directors.
9-43 (e) The refusal to grant a petition to create a district
9-44 does not invalidate or affect the designation of any management
9-45 area requested in the same petition.
9-46 (f) The commission shall act on the petition within a
9-47 reasonable amount of time.
9-48 Sec. 36.016. APPOINTMENT OF TEMPORARY DIRECTORS. (a) If
9-49 the commission grants a petition to create a district, it shall
9-50 appoint five temporary directors who shall serve until the initial
9-51 directors are elected and have qualified for office or until the
9-52 voters fail to approve the creation of the district.
9-53 (b) If an appointee of the commission fails to qualify or if
9-54 a vacancy occurs in the office of temporary director, the
9-55 commission shall appoint an individual to fill the vacancy.
9-56 (c) As soon as all temporary directors have qualified, the
9-57 directors shall meet, take the oath of office, and elect a chairman
9-58 and vice chairman from among their membership. The chairman shall
9-59 preside at all meetings of the board and, in the chairman's
9-60 absence, the vice chairman shall preside.
9-61 Sec. 36.017. CONFIRMATION AND DIRECTORS' ELECTION. (a) Not
9-62 later than the 60th day after the date all temporary directors have
9-63 been appointed and have qualified, the temporary directors shall
9-64 meet and order an election to be held within the boundaries of the
9-65 proposed district to approve the creation of the district and to
9-66 elect permanent directors.
9-67 (b) In the order calling the election, the temporary
9-68 directors shall designate election precincts and polling places for
9-69 the election. In designating the polling places, the temporary
9-70 directors shall consider the needs of all voters for conveniently
10-1 located polling places.
10-2 (c) The temporary directors shall publish notice of the
10-3 election at least one time in at least one newspaper with general
10-4 circulation within the boundaries of the proposed district. The
10-5 notice must be published before the 30th day preceding the date of
10-6 the election.
10-7 (d) The ballot for the election must be printed to provide
10-8 for voting for or against the proposition: "The creation of
10-9 the ____________ Groundwater Conservation District." If the
10-10 district levies a maintenance tax for payment of its expenses, the
10-11 proposition shall include the following language: "and the levy of
10-12 a maintenance tax at a rate not to exceed ______ cents for each
10-13 $100 of assessed valuation."
10-14 (e) Immediately after the election, the presiding judge of
10-15 each polling place shall deliver the returns of the election to the
10-16 temporary board, and the board shall canvass the returns and
10-17 declare the result. The board shall file a copy of the election
10-18 result with the commission.
10-19 (f) If a majority of the votes cast at the election favor
10-20 the creation of the district, the temporary board shall declare the
10-21 district created and shall enter the result in its minutes.
10-22 (g) If a majority of the votes cast at the election are
10-23 against the creation of the district, the temporary board shall
10-24 declare the district defeated and shall enter the result in its
10-25 minutes.
10-26 (h) If the majority of the votes cast at the election are
10-27 against the creation of the district, the district shall have no
10-28 further authority, except that any debts incurred shall be paid and
10-29 the organization of the district shall be maintained until all the
10-30 debts are paid.
10-31 Sec. 36.018. INCLUSION OF MUNICIPALITY. (a) If part of the
10-32 territory to be included in a district is located in a
10-33 municipality, a separate voting district may not be established in
10-34 the municipality for the purpose of determining whether the
10-35 municipality as a separate area is to be included in the district.
10-36 (b) If for any other reason the territory in a municipality
10-37 is established as a separate voting district, the failure by the
10-38 voters in the municipal territory to confirm the creation of the
10-39 district or the annexation of territory to a district does not
10-40 prevent the territory in the municipality from being included in
10-41 the district.
10-42 Sec. 36.019. CONFIRMATION ELECTION IN DISTRICT INCLUDING
10-43 LAND IN MORE THAN ONE COUNTY. A district, the major portion of
10-44 which is located in one county, may not be organized to include
10-45 land in another county unless the election held in the other county
10-46 to confirm and ratify the creation of the district is approved by a
10-47 majority of the voters of the other county voting in an election
10-48 called for that purpose.
10-49 Sec. 36.020. BOND AND TAX PROPOSAL. (a) At an election to
10-50 create a district, the temporary directors may include a
10-51 proposition for the issuance of bonds or notes, the levy of taxes
10-52 to retire all or part of the bonds or notes, and the levy of a
10-53 maintenance tax. The maintenance tax rate may not exceed 50 cents
10-54 on each $100 of assessed valuation.
10-55 (b) The board shall include in any bond and tax proposition
10-56 the maximum amount of bonds or notes to be issued and their maximum
10-57 maturity date.
10-58 Sec. 36.021. NOTIFICATION OF COUNTY CLERK. Within 30 days
10-59 following the creation of a district or any amendment to the
10-60 boundaries of a district, the board of directors shall file with
10-61 the county clerk of each county in which all or part of the
10-62 district is located a certified copy of the description of the
10-63 boundaries of the district. Each county clerk shall record the
10-64 certified copy of the boundaries in the property records of that
10-65 county.
10-66 (Sections 36.022-36.050 reserved for expansion
10-67 SUBCHAPTER C. ADMINISTRATION
10-68 Sec. 36.051. BOARD OF DIRECTORS. (a) The governing body of
10-69 a district is the board of directors, which shall consist of not
10-70 fewer than five and not more than 11 directors elected for
11-1 four-year terms. The number of directors may be changed as
11-2 determined by the board when territory is annexed by the district.
11-3 (b) A member of a governing body of another political
11-4 subdivision is ineligible for appointment or election as a
11-5 director. A director is disqualified and vacates the office of
11-6 director if the director is appointed or elected as a member of the
11-7 governing body of another political subdivision. This subsection
11-8 does not apply to any district with a population less than 50,000.
11-9 (c) Vacancies in the office of director shall be filled by
11-10 appointment of the board. If the vacant office is not scheduled
11-11 for election for longer than two years at the time of the
11-12 appointment, the board shall order an election for the unexpired
11-13 term to be held as part of the next regularly scheduled director's
11-14 election. The appointed director's term shall end on qualification
11-15 of the director elected at that election.
11-16 Sec. 36.052. OTHER LAWS NOT APPLICABLE. Other laws
11-17 governing the administration or operations of districts created
11-18 under Section 52, Article III, or Section 59, Article XVI, Texas
11-19 Constitution, shall not apply to any district governed by this
11-20 chapter. This chapter prevails over any other law in conflict or
11-21 inconsistent with this chapter, except any special law governing a
11-22 specific district shall prevail over this chapter.
11-23 Sec. 36.053. QUORUM. A majority of the membership of the
11-24 board constitutes a quorum for any meeting, and a concurrence of a
11-25 majority of the entire membership of the board is sufficient for
11-26 transacting any business of the district.
11-27 Sec. 36.054. OFFICERS. (a) After a district is created and
11-28 the directors have qualified, the board shall meet, elect a
11-29 president, vice president, secretary, and any other officers or
11-30 assistant officers as the board may deem necessary and begin the
11-31 discharge of its duties.
11-32 (b) After each directors' election, the board shall meet and
11-33 elect officers.
11-34 (c) The president is the chief executive officer of the
11-35 district, presides at all meetings of the board, and shall execute
11-36 all documents on behalf of the district. The vice president shall
11-37 act as president in case of the absence or disability of the
11-38 president. The secretary is responsible for seeing that all
11-39 records and books of the district are properly kept and shall
11-40 attest the president's signature on all documents.
11-41 (d) The board may appoint another director, the general
11-42 manager, or any employee as assistant or deputy secretary to assist
11-43 the secretary, and any such person shall be entitled to certify as
11-44 to the authenticity of any record of the district, including but
11-45 not limited to all proceedings relating to bonds, contracts, or
11-46 indebtedness of the district.
11-47 (e) After any election or appointment of a director, a
11-48 district shall notify the executive director within 30 days after
11-49 the date of the election or appointment of the name and mailing
11-50 address of the director chosen and the date that director's term of
11-51 office expires. The executive director shall provide forms to the
11-52 district for such purpose.
11-53 Sec. 36.055. SWORN STATEMENT, BOND, AND OATH OF OFFICE. (a)
11-54 As soon as practicable after a director is elected or appointed,
11-55 that director shall make the sworn statement prescribed by the
11-56 constitution for public office.
11-57 (b) As soon as practicable after a director has made the
11-58 sworn statement, and before beginning to perform the duties of
11-59 office, that director shall take the oath of office prescribed by
11-60 the constitution for public officers.
11-61 (c) Before beginning to perform the duties of office, each
11-62 director shall execute a bond for $10,000 payable to the district
11-63 and conditioned on the faithful performance of that director's
11-64 duties. All bonds of the directors shall be approved by the board
11-65 and paid for by the district.
11-66 (d) The sworn statement, bond, and oath shall be filed with
11-67 the district and retained in its records. A duplicate original of
11-68 the sworn statement and the oath shall also be filed with the
11-69 secretary of state within 10 days after their execution and need
11-70 not be filed before the new director begins to perform the duties
12-1 of office.
12-2 Sec. 36.056. GENERAL MANAGER. (a) The board may employ or
12-3 contract with a person to perform such services as general manager
12-4 for the district as the board may from time to time specify. The
12-5 board may delegate to the general manager full authority to manage
12-6 and operate the affairs of the district subject only to orders of
12-7 the board.
12-8 (b) The board may delegate to the general manager the
12-9 authority to employ all persons necessary for the proper handling
12-10 of the business and operation of the district and to determine the
12-11 compensation to be paid all employees other than the general
12-12 manager.
12-13 (c) Except in a district that is composed of the territory
12-14 of more than one county, a director may be employed as general
12-15 manager of the district. The compensation of a general manager who
12-16 also serves as a director shall be established by the other
12-17 directors.
12-18 Sec. 36.057. MANAGEMENT OF DISTRICT. (a) The board shall
12-19 be responsible for the management of all the affairs of the
12-20 district. The district shall employ or contract with all persons,
12-21 firms, partnerships, corporations, or other entities, public or
12-22 private, deemed necessary by the board for the conduct of the
12-23 affairs of the district, including, but not limited to, engineers,
12-24 attorneys, financial advisors, operators, bookkeepers, tax
12-25 assessors and collectors, auditors, and administrative staff.
12-26 (b) The board shall set the compensation and terms for
12-27 consultants.
12-28 (c) In selecting attorneys, engineers, auditors, financial
12-29 advisors, or other professional consultants, the district shall
12-30 follow the procedures provided in the Professional Services
12-31 Procurement Act, Subchapter A, Chapter 2254, Government Code.
12-32 (d) The board shall require an officer, employee, or
12-33 consultant who collects, pays, or handles any funds of the district
12-34 to furnish good and sufficient bond, payable to the district, in an
12-35 amount determined by the board to be sufficient to safeguard the
12-36 district. The bond shall be conditioned on the faithful
12-37 performance of that person's duties and on accounting for all funds
12-38 and property of the district. Such bond shall be signed or
12-39 endorsed by a surety company authorized to do business in the
12-40 state.
12-41 (e) The board may pay the premium on surety bonds required
12-42 of officials, employees, or consultants of the district out of any
12-43 available funds of the district, including proceeds from the sale
12-44 of bonds.
12-45 (f) The board may adopt bylaws to govern the affairs of the
12-46 district to perform its purposes. The board may, by resolution,
12-47 authorize its general manager or other employee to execute
12-48 documents on behalf of the district.
12-49 (g) The board shall also have the right to purchase all
12-50 materials, supplies, equipment, vehicles, and machinery needed by
12-51 the district to perform its purposes.
12-52 Sec. 36.058. CONFLICTS OF INTEREST. A director of a
12-53 district is subject to the provisions of Chapter 171, Local
12-54 Government Code, relating to the regulation of conflicts of
12-55 officers of local governments.
12-56 Sec. 36.059. GENERAL ELECTIONS. (a) All elections shall be
12-57 generally conducted in accordance with the Election Code except as
12-58 otherwise provided for by this chapter. Write-in candidacies for
12-59 any district office shall be governed by Subchapter C, Chapter 146,
12-60 Election Code.
12-61 (b) The directors of the district shall be elected according
12-62 to the precinct method as defined by Chapter 12, page 1105, Special
12-63 Laws, Acts of the 46th Legislature, Regular Session, 1939. To be
12-64 qualified to be elected as a director, a person must be a
12-65 registered voter in the precinct that the person represents. If
12-66 any part of a municipal corporation is a part of one precinct, then
12-67 no part of the municipal corporation shall be included in another
12-68 precinct, except that a municipal corporation having a population
12-69 of more than 200,000 may be divided between two or more precincts.
12-70 In a multicounty district, not more than two of the five precincts
13-1 may include the same municipal corporation or part of the same
13-2 municipal corporation.
13-3 Sec. 36.060. FEES OF OFFICE; REIMBURSEMENT. (a) A director
13-4 is entitled to receive fees of office of not more than $100 a day
13-5 for each day the director actually spends performing the duties of
13-6 a director. The fees of office may not exceed $6,000 a year.
13-7 (b) Each director is also entitled to receive reimbursement
13-8 of actual expenses reasonably and necessarily incurred while
13-9 engaging in activities on behalf of the district.
13-10 (c) In order to receive fees of office and to receive
13-11 reimbursement for expenses, each director shall file with the
13-12 district a verified statement showing the number of days actually
13-13 spent in the service of the district and a general description of
13-14 the duties performed for each day of service.
13-15 Sec. 36.061. POLICIES. (a) Subject to the law governing
13-16 the district, the board shall adopt the following in writing:
13-17 (1) a code of ethics for district directors, officers,
13-18 employees, and persons who are engaged in handling investments for
13-19 the district;
13-20 (2) a policy relating to travel expenditures;
13-21 (3) a policy relating to district investments that
13-22 ensures that:
13-23 (A) purchases and sales of investments are
13-24 initiated by authorized individuals, conform to investment
13-25 objectives and regulations, and are properly documented and
13-26 approved; and
13-27 (B) periodic review is made of district
13-28 investments to evaluate investment performance and security;
13-29 (4) policies and procedures for selection, monitoring,
13-30 or review and evaluation of professional services;
13-31 (5) policies that ensure a better use of management
13-32 information, including:
13-33 (A) budgets for use in planning and controlling
13-34 cost;
13-35 (B) an audit or finance committee of the board;
13-36 and
13-37 (C) uniform reporting requirements that use
13-38 "Audits of State and Local Governmental Units" as a guide on audit
13-39 working papers and that uses "Governmental Accounting and Financial
13-40 Reporting Standards."
13-41 (b) The state auditor may audit the financial transactions
13-42 of any district if the state auditor determines that the audit is
13-43 necessary.
13-44 Sec. 36.062. OFFICES AND MEETING PLACES. (a) The board
13-45 shall designate from time to time and maintain one or more regular
13-46 offices for conducting the business of the district and
13-47 maintaining the records of the district. Such offices may be
13-48 located either inside or outside the district's boundaries as
13-49 determined in the discretion of the board.
13-50 (b) The board shall designate one or more places inside or
13-51 outside the district for conducting the meetings of the board.
13-52 Sec. 36.063. NOTICE OF MEETINGS. Notice of meetings of the
13-53 board shall be given as set forth in the Open Meetings Act,
13-54 Chapter 551, Government Code. Neither failure to provide notice of
13-55 a regular meeting nor an insubstantial defect in notice of any
13-56 meeting shall affect the validity of any action taken at the
13-57 meeting.
13-58 Sec. 36.064. MEETINGS. (a) The board shall hold regular
13-59 meetings at least quarterly. It may hold meetings at other times
13-60 as required for the business of the district.
13-61 (b) Meetings shall be conducted and notice of meetings
13-62 shall be posted in accordance with the Open Meetings Act, Chapter
13-63 551, Government Code. A meeting of a committee of the board, or a
13-64 committee composed of representatives of more than one board, where
13-65 less than a quorum of any one board is present is not subject to
13-66 the provisions of the Open Meetings Act, Chapter 551, Government
13-67 Code.
13-68 Sec. 36.065. RECORDS. (a) The board shall keep a complete
13-69 account of all its meetings and proceedings and shall preserve its
13-70 minutes, contracts, records, notices, accounts, receipts, and other
14-1 records in a safe place.
14-2 (b) The records of each district are the property of the
14-3 district and are subject to Chapter 552, Government Code.
14-4 (c) The preservation, storage, destruction, or other
14-5 disposition of the records of each district is subject to the
14-6 requirements of Chapter 201, Local Government Code, and rules
14-7 adopted thereunder.
14-8 Sec. 36.066. SUITS. (a) A district may sue and be sued in
14-9 the courts of this state in the name of the district by and through
14-10 its board. All courts shall take judicial notice of the creation
14-11 of the district and of its boundaries.
14-12 (b) Any court in the state rendering judgment for debt
14-13 against a district may order the board to levy, assess, and collect
14-14 taxes or assessments to pay the judgment.
14-15 (c) The president or the general manager of any district
14-16 shall be the agent of the district on whom process, notice, or
14-17 demand required or permitted by law to be served upon a district
14-18 may be served.
14-19 (d) Except as provided in Subsection (e), no suit may be
14-20 instituted in any court of this state contesting:
14-21 (1) the validity of the creation and boundaries of a
14-22 district;
14-23 (2) any bonds or other obligations issued by a
14-24 district; or
14-25 (3) the validity or the authorization of a contract
14-26 with the United States by a district.
14-27 (e) The matters listed in Subsection (d) may be judicially
14-28 inquired into at any time and determined in any suit brought by the
14-29 State of Texas through the attorney general. The action shall be
14-30 brought on good cause shown, except where otherwise provided by
14-31 other provisions of this code or by the Texas Constitution. It is
14-32 specifically provided, however, that no such proceeding shall
14-33 affect the validity of or security for any bonds or other
14-34 obligations theretofore issued by a district if such bonds or other
14-35 obligations have been approved by the attorney general.
14-36 (f) A district shall not be required to give bond for
14-37 appeal, injunction, or costs in any suit to which it is a party and
14-38 shall not be required to deposit more than the amount of any award
14-39 in any eminent domain proceeding.
14-40 (g) If the district prevails in any suit other than a suit
14-41 in which it voluntarily intervenes, it may, in the same action,
14-42 recover reasonable fees for attorneys, expert witnesses, and other
14-43 costs incurred by the district before the court. The amount of the
14-44 attorney's fees shall be fixed by the court.
14-45 Sec. 36.067. CONTRACTS. (a) A district shall contract, and
14-46 be contracted with, in the name of the district.
14-47 (b) A district may purchase property from any other
14-48 governmental entity by negotiated contract without the necessity of
14-49 securing appraisals or advertising for bids.
14-50 Sec. 36.068. EMPLOYEE BENEFITS. (a) The board may provide
14-51 for and administer retirement, disability, and death compensation
14-52 funds for the employees of the district.
14-53 (b) The board may establish a public retirement system in
14-54 accordance with the provisions of Chapter 810, Government Code.
14-55 The board may also provide for a deferred compensation plan
14-56 described by Section 457 of the Internal Revenue Code of 1986 (26
14-57 U.S.C. Section 457).
14-58 (c) The board may include hospitalization and medical
14-59 benefits to its employees as part of the compensation paid to the
14-60 officers and employees and may adopt any plan, rule, or regulation
14-61 in connection with it and amend or change the plan, rule, or
14-62 regulation as it may determine.
14-63 (Sections 36.069-36.100 reserved for expansion
14-64 SUBCHAPTER D. POWERS AND DUTIES
14-65 Sec. 36.101. RULEMAKING POWER. (a) A district may make and
14-66 enforce rules to provide for conserving, preserving, protecting,
14-67 and recharging of the groundwater or of a groundwater reservoir or
14-68 its subdivisions in order to control subsidence or prevent waste of
14-69 groundwater and to carry out the powers and duties provided by this
14-70 chapter.
15-1 (b) After notice and hearing, the board shall adopt and
15-2 enforce rules to implement this chapter, including rules governing
15-3 procedure before the board. Notice in this section shall include
15-4 publication of the agenda of the hearing in one or more newspapers
15-5 of general circulation in the county or counties in which the
15-6 district is located.
15-7 (c) The board shall compile its rules and make them
15-8 available for use and inspection at the district's principal
15-9 office.
15-10 Sec. 36.102. ENFORCEMENT OF RULES. (a) A district may
15-11 enforce this chapter and its rules by injunction, mandatory
15-12 injunction, or other appropriate remedy in a court of competent
15-13 jurisdiction.
15-14 (b) The board may set reasonable civil penalties for breach
15-15 of any rule of the district that shall not exceed the jurisdiction
15-16 of a justice court as provided by Section 27.031, Government Code.
15-17 (c) A penalty under this section is in addition to any other
15-18 penalty provided by the law of this state and may be enforced by
15-19 complaints filed in the appropriate court of jurisdiction in the
15-20 county in which the district's principal office or meeting place is
15-21 located.
15-22 (d) If the district prevails in any suit to enforce its
15-23 rules, it may, in the same action, recover reasonable fees for
15-24 attorneys, expert witnesses, and other costs incurred by the
15-25 district before the court. The amount of the attorney's fees shall
15-26 be fixed by the court.
15-27 Sec. 36.103. IMPROVEMENTS AND FACILITIES. (a) A district
15-28 may build, acquire, or obtain by any lawful means any property
15-29 necessary for the district to carry out its purpose and the
15-30 provisions of this chapter.
15-31 (b) A district may:
15-32 (1) acquire land to erect dams or to drain lakes,
15-33 draws, and depressions;
15-34 (2) construct dams;
15-35 (3) drain lakes, depressions, draws, and creeks;
15-36 (4) install pumps and other equipment necessary to
15-37 recharge a groundwater reservoir or its subdivision; and
15-38 (5) provide necessary facilities for the purchase,
15-39 sale, transportation, and distribution of water.
15-40 Sec. 36.104. PURCHASE, SALE, TRANSPORTATION, AND
15-41 DISTRIBUTION OF WATER. A district may purchase, sell, transport,
15-42 and distribute surface water or groundwater for any purpose.
15-43 Sec. 36.105. EMINENT DOMAIN. (a) A district may exercise
15-44 the power of eminent domain to acquire by condemnation a fee simple
15-45 or other interest in property if that property interest is
15-46 necessary to the exercise of the authority conferred by this
15-47 chapter.
15-48 (b) The power of eminent domain authorized in this section
15-49 may not be used for the condemnation of land for the purpose of
15-50 acquiring rights to groundwater, surface water or water rights.
15-51 (c) The district must exercise the power of eminent domain
15-52 in the manner provided by Chapter 21, Property Code, but the
15-53 district is not required to deposit a bond as provided by Section
15-54 21.021(a), Property Code.
15-55 (d) In a condemnation proceeding brought by a district, the
15-56 district is not required to pay in advance or give bond or other
15-57 security for costs in the trial court, to give bond for the
15-58 issuance of a temporary restraining order or a temporary
15-59 injunction, or to give bond for costs or supersedeas on an appeal
15-60 or writ of error.
15-61 (e) In exercising the power of eminent domain, if the
15-62 district requires relocating, raising, lowering, rerouting,
15-63 changing the grade, or altering the construction of any railroad,
15-64 highway, pipeline, or electric transmission or distribution,
15-65 telegraph, or telephone lines, conduits, poles, or facilities, the
15-66 district must bear the actual cost of relocating, raising,
15-67 lowering, rerouting, changing the grade, or altering the
15-68 construction to provide comparable replacement without enhancement
15-69 of facilities after deducting the net salvage value derived from
15-70 the old facility.
16-1 Sec. 36.106. SURVEYS. A district may make surveys of the
16-2 groundwater reservoir or subdivision and surveys of the facilities
16-3 for development, production, transportation, distribution, and use
16-4 of the water, in order to determine the quantity of water available
16-5 for production and use and to determine the improvements,
16-6 development, and recharging needed by a reservoir or its
16-7 subdivision.
16-8 Sec. 36.107. RESEARCH AND PLANNING. (a) A district may
16-9 carry out any research projects deemed necessary by the board.
16-10 (b) Following notice and hearing, the district shall develop
16-11 a comprehensive management plan for the most efficient use of the
16-12 groundwater, for controlling and preventing waste of groundwater,
16-13 and for controlling and preventing subsidence. The plan may be
16-14 reviewed annually but must be reviewed by the board at least once
16-15 every five years.
16-16 (c) The district shall specify in the management plan, in as
16-17 much detail as possible, the acts, procedures, performance, and
16-18 avoidance that are or may be necessary to effect the plan,
16-19 including specifications and proposed rules. The district shall
16-20 adopt rules necessary to implement the management plan. The
16-21 district shall file a copy of the management plan and the rules
16-22 with the commission.
16-23 Sec. 36.108. JOINT PLANNING IN MANAGEMENT AREA. (a) If two
16-24 or more districts are located within the boundaries of the same
16-25 management area, each district shall prepare a comprehensive
16-26 management plan as required by Section 36.107 covering that
16-27 district's respective territory. On completion of the plan, each
16-28 district shall forward a copy of the new revised management plan to
16-29 the other districts in the management area.
16-30 (b) The board of directors of each district in the
16-31 management area may, by resolution, call a joint meeting with the
16-32 boards of directors of the other districts in the management area
16-33 to review the management plans and accomplishments for the
16-34 management area. The boards shall meet to consider the plans
16-35 individually and shall compare them to other management plans then
16-36 in force in the management area. In reviewing the management
16-37 plans, the boards shall consider:
16-38 (1) the goals of each management plan and its impact
16-39 on planning throughout the management area;
16-40 (2) the effectiveness of the measures established by
16-41 each management plan for conserving and protecting groundwater and
16-42 preventing waste, and the effectiveness of these measures in the
16-43 management area generally; and
16-44 (3) any other matters that the boards consider
16-45 relevant to the protection and conservation of groundwater and the
16-46 prevention of waste in the management area.
16-47 (c) A joint meeting of the boards of directors must be held
16-48 in accordance with the Open Meetings Act, Chapter 551, Government
16-49 Code. Notice of the meeting shall be given in accordance with the
16-50 requirements for notice of district board of directors meetings
16-51 under that Act. In addition, notice of the meeting shall be
16-52 published not later than the 30th day before the date of the
16-53 scheduled meeting in a newspaper with general circulation in each
16-54 county in the management area.
16-55 (d) A district in the management area may file a petition
16-56 with the commission requesting an inquiry if the petitioner
16-57 district believes that:
16-58 (1) another district in the management area has failed
16-59 to adopt rules;
16-60 (2) the groundwater in the management area is not
16-61 adequately protected by the rules adopted by another district; or
16-62 (3) the groundwater in the management area is not
16-63 adequately protected due to the failure of another district to
16-64 enforce substantial compliance with its rules.
16-65 (e) Not later than the 90th day after the date the petition
16-66 is filed, the commission shall review the petition and either:
16-67 (1) dismiss it if it finds that the evidence is not
16-68 adequate to show that any of the conditions alleged in the petition
16-69 exist; or
16-70 (2) select a review panel as provided in Subsection
17-1 (f).
17-2 (f) The commission may appoint a review panel consisting of
17-3 a chairman and four other members. A director or general manager
17-4 of a district located outside the management area that is the
17-5 subject of the petition may be appointed to the review panel. The
17-6 commission may not appoint more than two members of the review
17-7 panel from any one district. The commission also shall appoint a
17-8 disinterested person to serve as a nonvoting recording secretary
17-9 for the review panel. The recording secretary may be an employee
17-10 of the commission. The recording secretary shall record and
17-11 document the proceedings of the panel.
17-12 (g) Not later than the 120th day after appointment, the
17-13 review panel shall review the petition and any evidence relevant to
17-14 the petition and, in a public meeting, prepare a report to the
17-15 commission. The commission may direct the review panel to conduct
17-16 public hearings at a location in the management area to take
17-17 evidence on the petition. The review panel may attempt to
17-18 negotiate a settlement or resolve the dispute by any lawful means.
17-19 (h) In its report, the review panel shall include:
17-20 (1) a summary of all evidence taken in any hearing on
17-21 the petition;
17-22 (2) a list of findings and recommended actions
17-23 appropriate for the commission to take and the reasons it finds
17-24 those actions appropriate; and
17-25 (3) any other information the panel considers
17-26 appropriate.
17-27 Sec. 36.109. COLLECTION OF INFORMATION. A district may
17-28 collect any information the board deems necessary, including
17-29 information regarding the use of groundwater, water conservation,
17-30 and the practicability of recharging a groundwater reservoir.
17-31 Sec. 36.110. PUBLICATION OF PLANS AND INFORMATION. A
17-32 district may publish its plans and the information it develops,
17-33 bring them to the attention of the users of groundwater in the
17-34 district, and encourage the users to adopt and use them.
17-35 Sec. 36.111. RECORDS AND REPORTS. The district shall
17-36 require that records be kept and reports be made of the drilling,
17-37 equipping, and completing of water wells and of the production and
17-38 use of groundwater.
17-39 Sec. 36.112. DRILLERS' LOGS. A district shall require that
17-40 accurate drillers' logs be kept of water wells and that copies of
17-41 drillers' logs and electric logs be filed with the district.
17-42 Sec. 36.113. PERMITS FOR WELLS. A district shall require
17-43 permits for the drilling, equipping, or completing of wells, or for
17-44 substantially altering the size of wells or well pumps. Permits
17-45 may be issued subject to the rules promulgated by the district and
17-46 subject to terms and provisions with reference to the drilling,
17-47 equipping, completion, or alteration of wells or pumps that may be
17-48 necessary to conserve the groundwater, prevent waste, minimize as
17-49 far as practicable the drawdown of the water table or the reduction
17-50 of artesian pressure, lessen interference between wells, or control
17-51 and prevent subsidence.
17-52 Sec. 36.114. PERMIT: APPLICATION AND HEARING. The district
17-53 shall promptly consider and pass on each application for a permit.
17-54 If, within 20 days after the date it is submitted, an application
17-55 has not been passed on or set for a hearing on a specific date, the
17-56 applicant may petition the district court of the county where the
17-57 land is located for a writ of mandamus to compel the district to
17-58 act on the application or set a date for a hearing on the
17-59 application. A hearing shall be held within 35 days after the
17-60 setting of the date and the district shall act on the application
17-61 within 35 days after the date of the hearing.
17-62 Sec. 36.115. DRILLING OR ALTERING WELL WITHOUT PERMIT. (a)
17-63 No person, firm, or corporation may drill a well without first
17-64 obtaining a permit from the district.
17-65 (b) No person, firm, or corporation may alter the size of a
17-66 well or well pump such that it would bring that well under the
17-67 jurisdiction of the district without first obtaining a permit from
17-68 the district.
17-69 (c) No person, firm, or corporation may operate a well
17-70 without first obtaining a permit from the district.
18-1 (d) A violation occurs on the first day the drilling,
18-2 alteration, or operation begins and continues each day thereafter
18-3 until the appropriate permits are approved.
18-4 Sec. 36.116. REGULATION OF SPACING AND PRODUCTION. In order
18-5 to minimize as far as practicable the drawdown of the water table
18-6 or the reduction of artesian pressure, to control subsidence, or to
18-7 prevent waste, a district may provide for the spacing of water
18-8 wells and may regulate the production of wells.
18-9 Sec. 36.117. EXCEPTIONS; LIMITATIONS. (a) A district may
18-10 not require a permit for:
18-11 (1) drilling or producing from a well either drilled,
18-12 completed, or equipped so that it is incapable of producing more
18-13 than 25,000 gallons of groundwater a day;
18-14 (2) the drilling or alteration of the size of a well
18-15 or to restrict the production of a well if the water produced or to
18-16 be produced from the well is used or to be used to supply the
18-17 domestic needs of 10 or fewer households and a person who is a
18-18 member of each household is either the owner of the well, a person
18-19 related to the owner or a member of the owner's household within
18-20 the second degree by consanguinity, or an employee of the owner;
18-21 (3) the drilling or alteration of the size of a well
18-22 or to restrict the production from the well if the water produced
18-23 or to be produced from the well is used or to be used to provide
18-24 water for feeding livestock and poultry connected with farming,
18-25 ranching, or dairy enterprises;
18-26 (4) water wells to supply water for hydrocarbon
18-27 production activities, regardless of whether those wells are
18-28 producing, that are associated with any well permitted by the
18-29 Railroad Commission of Texas drilled before September 1, 1985; or
18-30 (5) jet wells used for domestic needs.
18-31 (b) The board shall adopt rules determining the
18-32 applicability of Subsection (a)(3) to facilities used primarily for
18-33 feeding livestock.
18-34 (c) The district shall not deny the owner of a tract of
18-35 land, or his lessee, who has no well equipped to produce more than
18-36 25,000 gallons a day on the tract, either a permit to drill a well
18-37 on his land or the privilege to produce groundwater from his land,
18-38 subject to the rules of the district.
18-39 (d) A district may not restrict the production of any well
18-40 equipped to produce 25,000 gallons or less a day.
18-41 (e) Nothing in this chapter applies to wells drilled for
18-42 oil, gas, sulphur, uranium, or brine, or for core tests, or for
18-43 injection of gas, saltwater, or other fluid, or for any other
18-44 purpose, under permits issued by the Railroad Commission of Texas.
18-45 A district may not require a permit to drill a well to supply water
18-46 for drilling any of these wells permitted by the Railroad
18-47 Commission of Texas. Any well that ceases to be used for these
18-48 purposes and is then used as an ordinary water well is subject to
18-49 the rules of the district.
18-50 (f) Water wells exempted under this section shall be
18-51 equipped and maintained so as to conform to the district's rules
18-52 requiring installation of casing, pipe, and fittings to prevent the
18-53 escape of groundwater from a groundwater reservoir to any reservoir
18-54 not containing groundwater and to prevent the pollution or harmful
18-55 alteration of the character of the water in any groundwater
18-56 reservoir.
18-57 (g) A district shall require water wells exempted under this
18-58 section to be registered with the district. All exempt water wells
18-59 shall be equipped and maintained so as to conform to the district's
18-60 rules requiring installation of casing, pipe, and fittings to
18-61 prevent the escape of groundwater from a groundwater reservoir to
18-62 any reservoir not containing groundwater and to prevent the
18-63 pollution or harmful alteration of the character of the water in
18-64 any groundwater reservoir.
18-65 Sec. 36.118. OPEN OR UNCOVERED WELLS. (a) A district may
18-66 require the owner or lessee of land on which an open or uncovered
18-67 well is located to keep the well permanently closed or capped with
18-68 a covering capable of sustaining weight of at least 400 pounds,
18-69 except when the well is in actual use.
18-70 (b) As used in this section, "open or uncovered well" means
19-1 an artificial excavation dug or drilled for the purpose of
19-2 exploring for or producing water from the groundwater reservoir and
19-3 is not capped or covered as required by this chapter.
19-4 (c) If the owner or lessee fails or refuses to close or cap
19-5 the well in compliance with this chapter in accordance with
19-6 district rules, any person, firm, or corporation employed by the
19-7 district may go on the land and close or cap the well safely and
19-8 securely.
19-9 (d) Reasonable expenses incurred by the district in closing
19-10 or capping a well constitute a lien on the land on which the well
19-11 is located.
19-12 (e) The lien arises and attaches upon recordation in the
19-13 deed records of the county where the well is located an affidavit,
19-14 executed by any person conversant with the facts, stating the
19-15 following:
19-16 (1) the existence of the well;
19-17 (2) the legal description of the property on which the
19-18 well is located;
19-19 (3) the approximate location of the well on the
19-20 property;
19-21 (4) the failure or refusal of the owner or lessee,
19-22 after notification, to close the well within 10 days after the
19-23 notification;
19-24 (5) the closing of the well by the district, or by an
19-25 authorized agent, representative, or employee of the district; and
19-26 (6) the expense incurred by the district in closing
19-27 the well.
19-28 (f) Nothing in this section affects the enforcement of
19-29 Subchapter A, Chapter 756, Health and Safety Code.
19-30 Sec. 36.119. ILLEGAL DRILLING AND OPERATION OF WELL; CITIZEN
19-31 SUIT. (a) Drilling a well without a required permit or operating
19-32 a well at a higher rate of production than the rate approved for
19-33 the well is declared to be illegal, wasteful per se, and a
19-34 nuisance.
19-35 (b) A person who has an estate in land adjacent to the land
19-36 on which the well is located, or a part that lies within one-half
19-37 mile of the well, may sue in a court of competent jurisdiction to
19-38 restrain or enjoin the illegal drilling or operation, or both. The
19-39 suit may be brought with or without the joinder of the district.
19-40 (c) The aggrieved party may also sue for damages for
19-41 injuries suffered by reason of the illegal operation and for other
19-42 relief to which they may be entitled. In a suit for damages, the
19-43 existence or operation of a well in violation of the rules of the
19-44 district is prima facie evidence of illegal drainage.
19-45 (d) The suit may be brought in the county where the illegal
19-46 well is located or in the county where all or part of the affected
19-47 land is located.
19-48 (e) The remedies provided by this section are cumulative of
19-49 other remedies available to the individual or the district.
19-50 (f) A suit brought under this section shall be advanced for
19-51 trial and determined as expeditiously as possible. The court shall
19-52 not grant a postponement or continuance, including a first motion,
19-53 except for reasons considered imperative by the court.
19-54 Sec. 36.120. INFORMATION. On request of the executive
19-55 director or the executive administrator, the district shall make
19-56 available information that it acquires concerning the groundwater
19-57 resources within its jurisdiction. The district shall also provide
19-58 information to the commission and Texas Water Development Board
19-59 concerning its plans and activities in conserving and protecting
19-60 groundwater resources. On request of a district, the executive
19-61 director and the executive administrator shall provide information
19-62 they acquire concerning the groundwater resources within the
19-63 district's jurisdiction.
19-64 Sec. 36.121. LIMITATION ON RULEMAKING POWER OF DISTRICTS
19-65 OVER WELLS IN CERTAIN COUNTIES. Except as provided by Section
19-66 36.117, a district that is created under this chapter on or after
19-67 September 1, 1991, shall exempt from regulation under this chapter
19-68 a well and any water produced or to be produced by a well that is
19-69 located in a county that has a population of 14,000 or less if the
19-70 water is to be used solely to supply a municipality that has a
20-1 population of 115,000 or less and the rights to the water produced
20-2 from the well are owned by a political subdivision that is not a
20-3 municipality, or by a municipality that has a population of 93,000
20-4 or less, and that purchased, owned, or held rights to the water
20-5 before the date on which the district was created, regardless of
20-6 the date the well is drilled or the water is produced. The
20-7 district may not prohibit the political subdivision or municipality
20-8 from transporting produced water inside or outside the district's
20-9 boundaries.
20-10 (Sections 36.122-36.150 reserved for expansion
20-11 SUBCHAPTER E. DISTRICT FINANCES
20-12 Sec. 36.151. EXPENDITURES. (a) A district's money may be
20-13 disbursed only by check, draft, order, or other instrument.
20-14 (b) Disbursements shall be signed by at least two directors,
20-15 except the board may by resolution allow certain employees of the
20-16 district, or a combination of employees and directors, to sign
20-17 disbursements on behalf of the board.
20-18 (c) The board may by resolution allow disbursements to be
20-19 transferred by federal reserve wire system to accounts in the name
20-20 of the district.
20-21 Sec. 36.152. FISCAL YEAR. (a) The district shall be
20-22 operated on the basis of a fiscal year established by the board.
20-23 (b) The fiscal year may not be changed during a period in
20-24 which revenue bonds of the district are outstanding or more than
20-25 once in a 24-month period.
20-26 Sec. 36.153. ANNUAL AUDIT. (a) Annually, the board shall
20-27 have an audit made of the financial condition of the district.
20-28 (b) The annual audit and other district records must be open
20-29 to inspection during regular business hours at the principal office
20-30 of the district.
20-31 Sec. 36.154. ANNUAL BUDGET. (a) The board shall prepare
20-32 and approve an annual budget.
20-33 (b) The budget shall contain a complete financial statement,
20-34 including a statement of:
20-35 (1) the outstanding obligations of the district;
20-36 (2) the amount of cash on hand to the credit of each
20-37 fund of the district;
20-38 (3) the amount of money received by the district from
20-39 all sources during the previous year;
20-40 (4) the amount of money available to the district from
20-41 all sources during the ensuing year;
20-42 (5) the amount of the balances expected at the end of
20-43 the year in which the budget is being prepared;
20-44 (6) the estimated amount of revenues and balances
20-45 available to cover the proposal budget; and
20-46 (7) the estimated tax rate or fee revenues that will
20-47 be required.
20-48 (c) The annual budget may be amended on the board's
20-49 approval.
20-50 Sec. 36.155. DEPOSITORY. (a) The board shall name one or
20-51 more banks to serve as depository for the district funds.
20-52 (b) District funds, other than those transmitted to a bank
20-53 for payment of bonds issued by the district, shall be deposited as
20-54 received with the depository bank and shall remain on deposit.
20-55 This subsection does not limit the power of the board to place a
20-56 portion of the district's funds on time deposit or to purchase
20-57 certificates of deposit.
20-58 (c) To the extent that funds in the depository are not
20-59 insured by the Federal Deposit Insurance Corporation, they shall be
20-60 secured in the manner provided by law for the security of funds by
20-61 the Public Funds Collateral Act, Chapter 2257, Government Code.
20-62 Sec. 36.156. INVESTMENTS. (a) Funds of the district may be
20-63 invested and reinvested in accordance with the provisions of the
20-64 Public Funds Investment Act, Chapter 2256, Government Code.
20-65 (b) The board, by resolution, may provide that an authorized
20-66 representative of the district may invest and reinvest the funds of
20-67 the district and provide for money to be withdrawn from the
20-68 appropriate accounts of the district for investments on such terms
20-69 as the board considers advisable.
20-70 Sec. 36.157. REPAYMENT OF ORGANIZATIONAL EXPENSES. (a) A
21-1 district may pay all costs and expenses necessarily incurred in the
21-2 creation and organization of a district, including legal fees and
21-3 other incidental expenses, and may reimburse any person for money
21-4 advanced for these purposes.
21-5 (b) Payments may be made from money obtained from the sale
21-6 of bonds first issued by the district or out of maintenance taxes
21-7 or other revenues of the district.
21-8 Sec. 36.158. GRANTS. A district may make or accept grants,
21-9 gratuities, advances, or loans in any form to or from any source
21-10 approved by the board, including any governmental entity, and may
21-11 enter into contracts, agreements, and covenants in connection with
21-12 grants, gratuities, advances, or loans that the board considers
21-13 appropriate.
21-14 (Sections 36.159-36.170 reserved for expansion
21-15 SUBCHAPTER F. BONDS AND NOTES
21-16 Sec. 36.171. ISSUANCE OF BONDS AND NOTES. (a) The board
21-17 may issue and sell bonds and notes in the name of the district for
21-18 any lawful purpose of the district. A district may not issue bonds
21-19 unless the commission determines that the project to be financed by
21-20 the bonds is feasible and issues an order approving the issuance of
21-21 the bonds. This section does not apply to refunding bonds.
21-22 (b) A district may submit to the commission a written
21-23 application for investigation of feasibility. An engineer's report
21-24 describing the project, including the data, profiles, maps, plans,
21-25 and specifications prepared in connection with the report, must be
21-26 submitted with the application.
21-27 (c) The executive director shall examine the application and
21-28 the report and shall inspect the project area. The district shall,
21-29 on request, supply the executive director with additional data and
21-30 information necessary for an investigation of the application, the
21-31 engineer's report, and the project.
21-32 (d) The executive director shall prepare a written report on
21-33 the project and include suggestions, if any, for changes or
21-34 improvements in the project. The executive director shall retain a
21-35 copy of the report and send a copy of the report to both the
21-36 commission and the district.
21-37 (e) The commission shall consider the application, the
21-38 engineer's report, the executive director's report, and any other
21-39 evidence allowed by commission rule to be considered in determining
21-40 the feasibility of the project.
21-41 (f) The commission shall determine whether the project to be
21-42 financed by the bonds is feasible and issue an order either
21-43 approving or disapproving, as appropriate, the issuance of the
21-44 bonds. The commission shall retain a copy of the order and send a
21-45 copy of the order to the district.
21-46 (g) Notwithstanding any provision of this code to the
21-47 contrary, the commission may approve the issuance of bonds of a
21-48 district without the submission of plans and specifications of the
21-49 improvements to be financed with the bonds. The commission may
21-50 condition the approval on any terms or conditions considered
21-51 appropriate by the commission.
21-52 Sec. 36.172. MANNER OF REPAYMENT OF BONDS AND NOTES. The
21-53 board may provide for the payment of principal of and interest on
21-54 the bonds and notes in any one of the following manners:
21-55 (1) from the levy and collection of ad valorem taxes
21-56 on taxable property within the district;
21-57 (2) from fees;
21-58 (3) by pledging all or any part of the designated
21-59 revenues from the ownership or operation of the district's works,
21-60 improvements, and facilities and from the sale, transportation, and
21-61 distribution of water; or
21-62 (4) from any combination of these sources.
21-63 Sec. 36.173. ADDITIONAL SECURITY FOR BONDS AND NOTES. (a)
21-64 The bonds and notes may be additionally secured by a deed of trust
21-65 or mortgage lien on part or all of the physical properties of the
21-66 district and rights appurtenant to those properties, vesting in the
21-67 trustee power to sell the properties for payment of the
21-68 indebtedness, power to operate the properties, and all other powers
21-69 necessary for the further security of the bonds and notes.
21-70 (b) The trust indenture, regardless of the existence of the
22-1 deed trust or mortgage lien on the properties, may contain
22-2 provisions established by the board for the security of the bonds
22-3 and notes and the preservation of the trust estate, may make
22-4 provisions for amendment or modification, and may make provisions
22-5 for investment of funds of the district.
22-6 (c) A purchaser under a sale under the deed trust or
22-7 mortgage lien shall be absolute owner of the properties and rights
22-8 purchased and may maintain and operate them.
22-9 Sec. 36.174. FORM OF BONDS OR NOTES. (a) A district may
22-10 issue its bonds or notes in various series or issues.
22-11 (b) Bonds or notes may mature serially or otherwise not more
22-12 than 50 years from their date and shall bear interest at any rate
22-13 permitted by the constitution and laws of this state.
22-14 (c) A district's bonds, notes, and interest coupons, if any,
22-15 are investment securities under the terms of Chapter 8, Business &
22-16 Commerce Code, and may be issued registrable as to principal or as
22-17 to both principal and interest and may be made redeemable before
22-18 maturity, at the option of the district, or may contain a mandatory
22-19 redemption provision.
22-20 (d) A district's bonds and notes may be issued in the form,
22-21 denominations, and manner and under the terms, conditions, and
22-22 details, and shall be signed and executed as provided by the board
22-23 in the resolution or order authorizing their issuance.
22-24 Sec. 36.175. PROVISIONS OF BONDS AND NOTES. (a) In the
22-25 orders or resolutions authorizing the issuance of bonds or notes,
22-26 including refunding bonds, the board may provide for the flow of
22-27 funds, the establishment and maintenance of the interest and
22-28 sinking fund, the reserve fund, and other funds. The board may
22-29 make additional covenants with respect to bonds or notes, pledged
22-30 revenues, and the operation and maintenance of those works,
22-31 improvements, and facilities, of which the revenue is pledged.
22-32 (b) The orders or resolutions of the board authorizing the
22-33 issuance of bonds or notes may also prohibit the further issuance
22-34 of bonds, notes, or other obligations payable from the pledged
22-35 revenue or may reserve the right to issue additional bonds or notes
22-36 to be secured by a pledge of and payable from the revenue on a
22-37 parity with or subordinate to the lien and pledge in support of the
22-38 bonds or notes being issued.
22-39 (c) The orders or resolutions of the board issuing bonds or
22-40 notes may contain other provisions and covenants as the board may
22-41 determine.
22-42 (d) The board may adopt and have executed any other
22-43 proceeding or instruments necessary and convenient in the issuance
22-44 of bonds or notes.
22-45 Sec. 36.176. REFUNDING BONDS. (a) A district may issue
22-46 bonds to refund all or any part of its outstanding bonds or notes,
22-47 including matured but unpaid interest coupons.
22-48 (b) Refunding bonds shall mature serially or otherwise not
22-49 more than 50 years from their date and shall bear interest at any
22-50 rate or rates permitted by the constitution and laws of the state.
22-51 (c) Refunding bonds may be payable from the same source as
22-52 the bonds or notes being refunded or from other additional sources.
22-53 (d) The refunding bonds must be approved by the attorney
22-54 general as in the case of other bonds or notes and shall be
22-55 registered by the comptroller on the surrender and cancellation of
22-56 the bonds or notes being refunded.
22-57 (e) The orders or resolutions authorizing the issuance of
22-58 the refunding bonds may provide that they be sold and the proceeds
22-59 deposited in the place or places at which the bonds or notes being
22-60 refunded are payable, in which case the refunding bonds may be
22-61 issued before the cancellation of the bonds or notes being
22-62 refunded. If refunding bonds are issued before cancellation of the
22-63 other bonds or notes, an amount sufficient to pay the principal of
22-64 and interest on the bonds or notes being refunded to their maturity
22-65 dates, or to their option dates if the bonds or notes have been
22-66 duly called for payment prior to maturity according to their terms,
22-67 shall be deposited in the place or places at which the bonds or
22-68 notes being refunded are payable. The comptroller shall register
22-69 the refunding bonds without the surrender and cancellation of bonds
22-70 or notes being refunded.
23-1 (f) A refunding may be accomplished in one or in several
23-2 installment deliveries. Refunding bonds and their interest coupons
23-3 are investment securities under Chapter 8, Business & Commerce
23-4 Code.
23-5 (g) In lieu of the method set forth in Subsections (a)-(f),
23-6 a district may refund bonds, notes, or other obligations as
23-7 provided by the general laws of the state.
23-8 Sec. 36.177. BONDS AND NOTES AS INVESTMENTS. District bonds
23-9 and notes are legal and authorized investments for:
23-10 (1) banks;
23-11 (2) savings banks;
23-12 (3) trust companies;
23-13 (4) savings and loan associations;
23-14 (5) insurance companies;
23-15 (6) fiduciaries;
23-16 (7) trustees;
23-17 (8) guardians; and
23-18 (9) sinking funds of cities, counties, school
23-19 districts, and other political subdivisions of the state and other
23-20 public funds of the state and its agencies, including the permanent
23-21 school fund.
23-22 Sec. 36.178. BONDS AND NOTES AS SECURITY FOR DEPOSITS.
23-23 District bonds and notes are eligible to secure deposits of public
23-24 funds of the state and cities, counties, school districts, and
23-25 other political subdivisions of the state. The bonds or notes are
23-26 lawful and sufficient security for deposits to the extent of their
23-27 value when accompanied by all unmatured coupons.
23-28 Sec. 36.179. TAX STATUS OF BONDS AND NOTES. Since a
23-29 district governed by this chapter is a public entity performing an
23-30 essential public function, bonds and notes issued by the district,
23-31 any transaction relating to the bonds and notes, and profits made
23-32 in the sale of the bonds and notes, are free from taxation by the
23-33 state or by any city, county, special district, or other political
23-34 subdivision of the state.
23-35 Sec. 36.180. ELECTION. (a) Bonds or notes secured in whole
23-36 or in part by taxes may not be issued by the district until
23-37 authorized by a majority vote of the qualified voters of the
23-38 district at an election called for that purpose.
23-39 (b) The board may order an election, and the order calling
23-40 the election shall state the nature and the date of the election,
23-41 the hours during which the polls will be open, the location of the
23-42 polling places, the amount of bonds or notes to be authorized, and
23-43 the maximum maturity of the bonds or notes.
23-44 (c) At an election to authorize bonds or notes payable
23-45 wholly from ad valorem taxes, the ballots must be printed to
23-46 provide for voting for or against the proposition: "The issuance
23-47 of (bonds or notes) and the levy of taxes for payment of the (bonds
23-48 or notes)." At any election to authorize bonds or notes payable
23-49 from both ad valorem taxes and revenues, the ballots must be
23-50 printed to provide for voting for or against: "The issuance of
23-51 (bonds or notes) and the pledge of net revenues and the levy of ad
23-52 valorem taxes adequate to provide for the payment of the (bonds or
23-53 notes)."
23-54 (d) The board shall canvass the returns and declare the
23-55 results of the election. If a majority of the votes cast at the
23-56 election favor the issuance of the bonds or notes, the bonds or
23-57 notes may be issued by the board, but if a majority of the votes
23-58 cast at the election do not favor issuance of the bonds or notes,
23-59 the bonds or notes may not be issued.
23-60 Sec. 36.181. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
23-61 COMPTROLLER. (a) Bonds and notes issued by a district must be
23-62 submitted to the attorney general for examination.
23-63 (b) If the attorney general finds that the bonds or notes
23-64 have been authorized in accordance with law, the attorney general
23-65 shall approve them, and they shall be registered by the
23-66 comptroller.
23-67 (c) After the approval and registration of bonds or notes,
23-68 the bonds or notes are incontestable in any court or other forum,
23-69 for any reason, and are valid and binding obligations in accordance
23-70 with their terms for all purposes.
24-1 (Sections 36.182-36.200 reserved for expansion
24-2 SUBCHAPTER G. DISTRICT REVENUES
24-3 Sec. 36.201. LEVY OF TAXES. (a) The board may annually
24-4 levy taxes to pay the bonds issued by the district that are payable
24-5 in whole or in part by taxes.
24-6 (b) The board may annually levy taxes to pay the maintenance
24-7 and operating expenses of the district at a rate not to exceed 50
24-8 cents on each $100 of assessed valuation.
24-9 Sec. 36.202. BOARD AUTHORITY. (a) The board may levy taxes
24-10 for the entire year in which the district is created.
24-11 (b) If territory is added to or annexed by the district, the
24-12 board may levy taxes in the new territory for the entire year in
24-13 which the territory is added or annexed.
24-14 (c) The board shall levy taxes on all property in the
24-15 district subject to district taxation.
24-16 Sec. 36.203. TAX RATE. In setting the tax rate, the board
24-17 shall take into consideration the income of the district from
24-18 sources other than taxation. On determination of the amount of tax
24-19 required to be levied, the board shall make the levy and certify it
24-20 to the tax assessor-collector.
24-21 Sec. 36.204. TAX APPRAISAL, ASSESSMENT, AND COLLECTION. (a)
24-22 The Tax Code governs the appraisal, assessment, and collection of
24-23 district taxes.
24-24 (b) The board may provide for the appointment of a tax
24-25 assessor-collector for the district or may contract for the
24-26 assessment and collection of taxes as provided by the Tax Code.
24-27 Sec. 36.205. AUTHORITY TO SET FEES. (a) A district may set
24-28 fees for administrative acts of the district, such as filing
24-29 applications. Fees set by a district may not unreasonably exceed
24-30 the cost to the district of performing the administrative function
24-31 for which the fee is charged.
24-32 (b) A district shall set and collect fees for all services
24-33 provided outside the boundaries of the district.
24-34 (Sections 36.206-36.250 reserved for expansion
24-35 SUBCHAPTER H. JUDICIAL REVIEW
24-36 Sec. 36.251. SUIT AGAINST DISTRICT. A person, firm,
24-37 corporation, or association of persons affected by and dissatisfied
24-38 with any provision or with any rule or order made by a district is
24-39 entitled to file a suit against the district or its directors to
24-40 challenge the validity of the law, rule, or order. The suit shall
24-41 be filed in a court of competent jurisdiction in any county in
24-42 which the district or any part of the district is located. The
24-43 suit may only be filed after all administrative appeals to the
24-44 district are final.
24-45 Sec. 36.252. SUIT TO BE EXPEDITED. A suit brought under
24-46 this subchapter shall be advanced for trial and determined as
24-47 expeditiously as possible. No postponement or continuance shall be
24-48 granted except for reasons considered imperative by the court.
24-49 Sec. 36.253. TRIAL OF SUIT. The burden of proof is on the
24-50 petitioner, and the challenged law, rule, order, or act shall be
24-51 deemed prima facie valid. The review on appeal is governed by the
24-52 substantial evidence rule as defined by Section 2001.174,
24-53 Government Code.
24-54 Sec. 36.254. SUBCHAPTER CUMULATIVE. The provisions of this
24-55 subchapter do not affect other legal or equitable remedies that may
24-56 be available.
24-57 (Sections 36.255-36.300 reserved for expansion
24-58 SUBCHAPTER I. DISSOLUTION OF DISTRICT
24-59 Sec. 36.301. DISSOLUTION. (a) After notice and hearing,
24-60 the commission may dissolve a district that:
24-61 (1) has been inactive for a period of three
24-62 consecutive years; and
24-63 (2) has no outstanding bonded indebtedness.
24-64 (b) A district composed of territory entirely within one
24-65 county may be dissolved even if it has outstanding indebtedness
24-66 that matures after the year in which the district is dissolved,
24-67 whereupon the commissioners court shall levy and collect taxes on
24-68 all taxable property in the district in an amount sufficient to pay
24-69 the principal of and interest on the indebtedness when due. The
24-70 taxes shall be levied and collected in the same manner as county
25-1 taxes.
25-2 (c) A district is considered active if:
25-3 (1) the district has a board as required by Subchapter
25-4 D;
25-5 (2) the board holds regularly scheduled meetings and
25-6 has on file minutes of its meetings;
25-7 (3) the district has developed and filed with the
25-8 commission a management plan for the district;
25-9 (4) the district has copies of drillers' logs on file;
25-10 (5) the district has on file well permits issued by
25-11 the district; and
25-12 (6) the district has on file annual district audits.
25-13 Sec. 36.302. NOTICE OF HEARING. (a) The commission shall
25-14 give notice of the dissolution hearing which briefly describes the
25-15 reasons for the proceeding.
25-16 (b) The notice shall be published once each week for two
25-17 consecutive weeks before the day of hearing in some newspaper
25-18 having general circulation in the county or counties in which the
25-19 district is located. The first publication shall be 30 days before
25-20 the day of the hearing.
25-21 (c) The commission shall give notice of the hearing by first
25-22 class mail addressed to the directors of the district according to
25-23 the last record on file with the executive director.
25-24 Sec. 36.303. INVESTIGATION. The executive director shall
25-25 investigate the facts and circumstances of the district to be
25-26 dissolved and the result of the investigation shall be included in
25-27 a written report.
25-28 Sec. 36.304. ORDER OF DISSOLUTION. The commission may enter
25-29 an order dissolving the district at the conclusion of the hearing
25-30 if it finds that the district has performed none of the functions
25-31 for which it was created for a period of three consecutive years
25-32 before the day of the proceeding and that the district has no
25-33 outstanding bonded indebtedness.
25-34 Sec. 36.305. CERTIFIED COPY OF ORDER. The commission shall
25-35 file a certified copy of the order of dissolution of the district
25-36 in the deed records of the county or counties in which the district
25-37 is located. If the district was created by a special Act of the
25-38 legislature, the commission shall file a certified copy of the
25-39 order of dissolution with the secretary of state.
25-40 Sec. 36.306. APPEALS. (a) Appeals from a commission order
25-41 dissolving a district shall be filed and heard in the district
25-42 court of any of the counties in which the land is located.
25-43 (b) The trial on appeal shall be de novo and the substantial
25-44 evidence rule shall not apply.
25-45 Sec. 36.307. ASSETS ESCHEAT TO STATE. Upon the dissolution
25-46 of a district by the commission, all assets of the district shall
25-47 escheat to the State of Texas. The assets shall be administered by
25-48 the state treasurer and shall be disposed of in the manner provided
25-49 by Chapter 72, Property Code.
25-50 (Sections 36.308-36.320 reserved for expansion
25-51 SUBCHAPTER J. ADDING TERRITORY TO DISTRICT
25-52 Sec. 36.321. ADDING LAND BY PETITION OF LANDOWNER. The
25-53 owner of land contiguous to a district may file with the board a
25-54 notarized petition requesting that the owner's land be included in
25-55 the district. The petition must describe the land by legal
25-56 description or by metes and bounds or by lot and block number if
25-57 there is a recorded plat of the area to be included in the
25-58 district.
25-59 Sec. 36.322. ASSUMPTION OF BONDS. If the district has
25-60 bonds, notes, or other obligations outstanding or bonds payable in
25-61 whole or in part from taxation that have been voted but are
25-62 unissued, the petitioner shall assume its share of the outstanding
25-63 bonds, notes, or other obligations and any voted but unissued tax
25-64 bonds of the district, and the property shall be assessed an ad
25-65 valorem tax at the same rate as that set for the existing district
25-66 to pay for outstanding bonds and for the maintenance and operation
25-67 of the district.
25-68 Sec. 36.323. HEARING AND DETERMINATION OF PETITION. (a)
25-69 The board shall hear and consider the petition and may add to the
25-70 district the land described in the petition if it is considered to
26-1 be to the advantage of the petitioner and to the existing district.
26-2 (b) If the district has bonds payable in whole or in part
26-3 from taxation that are voted but unissued at the time of the
26-4 annexation, the board may issue the voted but unissued bonds even
26-5 though the boundaries of the district have been altered since the
26-6 authorization of the bonds.
26-7 Sec. 36.324. RECORDING PETITION. A petition that is granted
26-8 which adds land to the district shall be recorded in the office of
26-9 the county clerk of the county or counties in which the land is
26-10 located and the county or counties in which the existing district's
26-11 principal office is located.
26-12 Sec. 36.325. ADDING CERTAIN TERRITORY BY PETITION. (a)
26-13 Landowners of a defined area of territory not already in a district
26-14 may file with any district a petition requesting inclusion in that
26-15 district.
26-16 (b) The petition must be signed by:
26-17 (1) a majority of the landowners in the territory;
26-18 (2) at least 50 landowners if the number of landowners
26-19 is more than 50; or
26-20 (3) the commissioners court of the county in which the
26-21 area is located if the area is identified as a critical area or
26-22 includes the entire county. The petition must describe the land by
26-23 legal description or by metes and bounds or by lot and block number
26-24 if there is a recorded plat of the area to be included in the
26-25 district.
26-26 Sec. 36.326. HEARING ON PETITION. The board by order shall
26-27 set the time and place of separate hearings on the petition to
26-28 include the territory in the district. At least one hearing shall
26-29 be held in the existing district and one hearing shall be held in
26-30 the territory to be added.
26-31 Sec. 36.327. RESOLUTION TO ADD TERRITORY. If the board
26-32 finds after the hearing on the petition that the addition of the
26-33 land would benefit the district and the territory to be added, it
26-34 may add the territory to the district by resolution. The board
26-35 does not have to include all the territory described in the
26-36 petition if it finds that a modification or change is necessary or
26-37 desirable.
26-38 Sec. 36.328. ELECTION TO RATIFY ANNEXATION OF LAND. (a)
26-39 Annexation of the territory is not final until ratified by a
26-40 majority vote of the voters in the territory to be added. An
26-41 election in the existing district accepting the addition of land is
26-42 not required.
26-43 (b) The ballots for the election shall be printed to provide
26-44 for voting for or against the proposition: "The inclusion of
26-45 (briefly describe additional area) in the __________ District." If
26-46 the district levies a property tax for payment of its maintenance
26-47 and operating expenses, the proposition shall include the following
26-48 language: "and the levy of a tax on property at a rate not to
26-49 exceed _____ cents on each $100 of assessed valuation for payment
26-50 of maintenance and operating expenses of the district."
26-51 (c) The amount of the tax included in the proposition shall
26-52 be the maximum amount that the district is authorized to levy. If
26-53 the district has outstanding or authorized bonded indebtedness, the
26-54 proposition shall include language providing for the assumption by
26-55 the additional area of a proportional share of the bonded
26-56 indebtedness of the district.
26-57 Sec. 36.329. NOTICE AND PROCEDURE OF ELECTION. The notice
26-58 of the election, the manner and the time of giving the notice, the
26-59 manner of holding the election, and qualifications of the voters
26-60 are governed by the Election Code.
26-61 Sec. 36.330. LIABILITY OF ADDED TERRITORY. The added
26-62 territory shall bear its pro rata share of indebtedness or taxes
26-63 that may be owed, contracted, or authorized by the district to
26-64 which it is added.
26-65 Sec. 36.331. ANNEXATION OF NONCONTIGUOUS TERRITORY. Land
26-66 not contiguous to the existing boundaries of a district may not be
26-67 added to or annexed to a district unless the land is located either
26-68 within the same management area, critical area, or a groundwater
26-69 subdivision designated by the commission or its predecessors.
26-70 (Sections 36.332-36.350 reserved for expansion
27-1 SUBCHAPTER K. CONSOLIDATION OF DISTRICTS
27-2 Sec. 36.351. CONSOLIDATION OF DISTRICTS. (a) Two or more
27-3 districts may consolidate into one district.
27-4 (b) Adjacent districts may consolidate portions of either
27-5 district if one district relinquishes land within that district to
27-6 the jurisdiction of the other district.
27-7 (c) A consolidation under this subchapter occurs if the
27-8 board of each involved district adopts a resolution containing the
27-9 terms and conditions of the consolidation.
27-10 Sec. 36.352. TERMS AND CONDITIONS OF CONSOLIDATION. (a)
27-11 The terms and conditions for consolidation shall include:
27-12 (1) adoption of a name for the district;
27-13 (2) the number and apportionment of directors to serve
27-14 on the board;
27-15 (3) the effective date of the consolidation;
27-16 (4) an agreement on finances for the consolidated
27-17 district, including disposition of funds, property, and other
27-18 assets of each district;
27-19 (5) transfer of all permits issued in the area that is
27-20 the subject of the consolidation to the consolidated district; and
27-21 (6) an agreement on governing the districts during the
27-22 transition period, including selection of officers.
27-23 (b) The terms and conditions for consolidation may include:
27-24 (1) assumption by each district of the other
27-25 district's bonds, notes, voted but unissued bonds, or other
27-26 obligations;
27-27 (2) an agreement to levy taxes to pay for bonds;
27-28 (3) any other terms of conditions agreed upon by the
27-29 board of each district.
27-30 Sec. 36.353. NOTICE AND HEARING ON CONSOLIDATION. (a) Each
27-31 board shall publish notice and hold a public hearing within that
27-32 district on the terms and conditions for consolidation of the
27-33 districts.
27-34 (b) After the hearing, the board may, by resolution, approve
27-35 the terms and conditions for consolidation and enter an order
27-36 consolidating the districts.
27-37 Sec. 36.354. ELECTIONS TO APPROVE CONSOLIDATION. (a) An
27-38 election to ratify the consolidation is required unless the
27-39 districts to be consolidated meet the following requirements:
27-40 (1) the districts have not authorized or issued bonds
27-41 and do not levy or assess taxes; or
27-42 (2) the consolidation would not result in any
27-43 additional taxing or bonding authority for any of the districts,
27-44 and would not require any district to contribute to the debt
27-45 payments of any other district.
27-46 (b) The board shall order an election in each district to be
27-47 consolidated only after the board of each district has agreed on
27-48 the terms and conditions of consolidation. The directors of each
27-49 district shall order the election to be held on the same day in
27-50 each district. The election shall be held and notice given in the
27-51 manner provided by the Election Code.
27-52 (c) The ballots for the election shall be printed to provide
27-53 for voting for or against the proposition: "The consolidation of
27-54 (names of the districts to be consolidated) in the __________
27-55 District." If the district levies a property tax for payment of
27-56 its bonded indebtedness, the proposition shall include the
27-57 following language: "and the levy of a tax on property at a rate
27-58 not to exceed _____ cents on each $100 of assessed valuation for
27-59 payment of bonds." If the district levies a property tax for
27-60 payment of its maintenance and operating expenses, the proposition
27-61 shall include the following language: "and the levy of a tax on
27-62 property at a rate not to exceed _____ cents on each $100 of
27-63 assessed valuation for payment of maintenance and operating
27-64 expenses of the district."
27-65 (d) A district may be consolidated only if a majority of the
27-66 electors in each district vote in favor of the consolidation. If
27-67 more than two districts are consolidating, failure of any one
27-68 district to ratify the consolidation shall not prevent the
27-69 consolidation of the other districts.
27-70 Sec. 36.355. GOVERNING CONSOLIDATED DISTRICTS. (a) After
28-1 two or more districts are consolidated, they become one district
28-2 and are governed as one district.
28-3 (b) During the transition period, the officers of each
28-4 district shall continue to act jointly as officers of the original
28-5 districts to settle the affairs of their respective districts.
28-6 (c) If the consolidated district elects directors, directors
28-7 for the consolidated district shall be elected in the same manner
28-8 and for the same term as directors elected at a confirmation
28-9 election. The directors' election shall be set for the next
28-10 regular election.
28-11 Sec. 36.356. DEBTS OF ORIGINAL DISTRICTS. (a) After two or
28-12 more districts are consolidated, the consolidated district shall
28-13 protect the debts of the original districts and shall assure that
28-14 the debts are not impaired. If the consolidated district has
28-15 taxing authority, the debts may be paid by taxes levied on the land
28-16 in the original districts as if they had not consolidated or from
28-17 contributions from the consolidated district on terms stated in the
28-18 consolidation agreement.
28-19 (b) If the consolidated district has taxing authority and
28-20 assumes the bonds, notes, and other obligations of the original
28-21 districts, taxes may be levied uniformly on all taxable property
28-22 within the consolidated district to pay the debts.
28-23 Sec. 36.357. ASSESSMENT AND COLLECTION OF TAXES. If the
28-24 consolidated district has taxing authority, the district shall
28-25 assess and collect taxes on property on all property in the
28-26 district for maintenance and operation of the district.
28-27 Sec. 36.358. VOTED BUT UNISSUED BONDS. If either district
28-28 has voted but unissued bonds payable in whole or in part from
28-29 taxation assumed by the consolidated district, the consolidated
28-30 district may issue the voted but unissued bonds in the name of the
28-31 consolidated district and levy a uniform tax on all taxable
28-32 property in the consolidated district to pay for the bonds.
28-33 Sec. 36.359. FILING OF ORDER WITH COUNTY CLERK AND EXECUTIVE
28-34 DIRECTOR. A consolidation order issued by the board shall be kept
28-35 in the records of the consolidated district, recorded in the office
28-36 of the county clerk in each of the counties in the consolidated
28-37 district, and filed with the executive director.
28-38 SECTION 3. Section 151.003(b), Water Code, is amended to
28-39 read as follows:
28-40 (b) Except as provided in this subsection, an adjoining
28-41 county may be added to the district on application of the
28-42 commissioners court of the adjoining county and by complying with
28-43 the procedures provided in Subchapter K, Chapter 36 <Sections
28-44 55.730-55.744 of this code, to the extent that those provisions are
28-45 applicable>. Any county added to the district under this
28-46 subsection is subject to the jurisdiction of the board and this
28-47 chapter, and two members shall be added to the board. One shall be
28-48 chosen by the commissioners court of the county added to the
28-49 district and one shall be chosen by the mayor of the city that has
28-50 the largest population in the county that is added. The two new
28-51 members shall draw lots to establish staggered terms of office.
28-52 SECTION 4. Section 151.005(a), Water Code, is amended to
28-53 read as follows:
28-54 (a) The district has all of the rights, powers, privileges,
28-55 authority, functions, and duties provided by the general law of
28-56 this state, including Chapter 36 <Chapters 50 and 52 of this code>,
28-57 applicable to groundwater <underground water> conservation
28-58 districts created under Article XVI, Section 59, of the Texas
28-59 Constitution.
28-60 SECTION 5. Section 151.005(c), Water Code, is amended to
28-61 read as follows:
28-62 (c) Sections 36.104, 36.114, 36.117, 36.201, 36.202, 36.203,
28-63 and 36.204 <52.1511, 52.156, 52.167, 52.168, 52.170, and 52.173 of
28-64 this code> and Subchapter I, Chapter 36, <Subchapters B, C, H, I,
28-65 J, and K of Chapter 52 of this code> do not apply to the district.
28-66 SECTION 6. Chapter 52, Water Code, is repealed.
28-67 SECTION 7. This Act takes effect September 1, 1995, and
28-68 applies to all actions by a district or board taken after that
28-69 date. Any provision of this Act relating to suits to which a
28-70 district governed by this Act is a party shall only apply to suits
29-1 filed on or after the effective date of this Act.
29-2 SECTION 8. The importance of this legislation and the
29-3 crowded condition of the calendars in both houses create an
29-4 emergency and an imperative public necessity that the
29-5 constitutional rule requiring bills to be read on three several
29-6 days in each house be suspended, and this rule is hereby suspended.
29-7 * * * * *