By: Armbrister S.B. No. 1465
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of groundwater.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. The caption of Title 2, Water Code, is amended to
1-4 read as follows:
1-5 TITLE 2. <STATE> WATER ADMINISTRATION
1-6 SECTION 2. Title 2, Water Code, is amended by adding
1-7 Subtitle E, as follows:
1-8 SUBTITLE E. GROUNDWATER MANAGEMENT
1-9 CHAPTER 35. GROUNDWATER STUDIES
1-10 Sec. 35.001. PURPOSE. In order to provide for the
1-11 conservation, preservation, protection, recharging, and prevention
1-12 of waste of the groundwater, of groundwater reservoirs or their
1-13 subdivisions, and to control subsidence caused by withdrawal of
1-14 water from those groundwater reservoirs or their subdivisions,
1-15 consistent with the objectives of Article XVI, Section 59, of the
1-16 Texas Constitution, groundwater management areas may be created as
1-17 provided by this chapter.
1-18 Sec. 35.002. DEFINITIONS. In this chapter:
1-19 (1) "District" means any district or authority created
1-20 under Article III, Section 52 or Article XVI, Section 59 of the
1-21 Texas Constitution that has the authority to regulate the spacing
1-22 of water wells, the production from water wells, or both.
1-23 (2) "Commission" means the Texas Natural Resource
2-1 Conservation Commission.
2-2 (3) "Executive director" means the executive director
2-3 of the commission.
2-4 (4) "Executive administrator" means the executive
2-5 administrator of the Texas Water Development Board.
2-6 (5) "Groundwater" means water percolating below the
2-7 surface of the earth.
2-8 (6) "Groundwater reservoir" means a specific
2-9 subsurface water-bearing reservoir having ascertainable boundaries
2-10 containing groundwater.
2-11 (7) "Subdivision of a groundwater reservoir" means a
2-12 definable part of a groundwater reservoir in which the groundwater
2-13 supply will not be measurably affected by withdrawing water from
2-14 any other part of the reservoir, as indicated by known geological
2-15 and hydrological conditions and relationships and on foreseeable
2-16 economic development at the time the subdivision is designated or
2-17 altered.
2-18 (8) "Waste" means any one or more of the following:
2-19 (A) withdrawal of groundwater from a groundwater
2-20 reservoir at a rate and in an amount that causes or threatens to
2-21 cause intrusion into the reservoir of water unsuitable for
2-22 agricultural, gardening, domestic, or stock raising purposes;
2-23 (B) the flowing or producing of wells from a
2-24 groundwater reservoir if the water produced is not used for a
2-25 beneficial purpose;
3-1 (C) escape of groundwater from a groundwater
3-2 reservoir to any other reservoir or geologic strata that does not
3-3 contain groundwater;
3-4 (D) pollution or harmful alteration of
3-5 groundwater in a groundwater reservoir by salt water, other
3-6 deleterious matter admitted from another stratum, or from the
3-7 surface of the ground;
3-8 (E) wilfully or negligently causing, suffering,
3-9 or allowing groundwater to escape into any river, creek, natural
3-10 watercourse, depression, lake, reservoir, drain, sewer, street,
3-11 highway, road, or road ditch, or onto any land other than that of
3-12 the owner of the well; or
3-13 (F) groundwater pumped for irrigation that
3-14 escapes as irrigation tailwater onto land other than that of the
3-15 owner of the well unless permission has been granted by the
3-16 occupant of the land receiving the discharge.
3-17 (9) "Use for a beneficial purpose" means use for:
3-18 (A) agricultural, gardening, domestic, stock
3-19 raising, municipal, mining, manufacturing, industrial, commercial,
3-20 recreational, or pleasure purposes;
3-21 (B) exploring for, producing, handling, or
3-22 treating oil, gas, sulphur, or other minerals; or
3-23 (C) any other purpose that is useful and
3-24 beneficial to the user.
3-25 (10) "Subsidence" means the lowering in elevation of
4-1 the land surface caused by withdrawal of groundwater.
4-2 (11) "Board" means the board of directors of a
4-3 district.
4-4 (12) "Director" means a member of a board.
4-5 (13) "Management area" means an area designated and
4-6 delineated by the commission as an area suitable for management of
4-7 groundwater resources.
4-8 (14) "Critical area" means an area designated and
4-9 delineated by the commission as an area that is experiencing or is
4-10 expected to experience critical groundwater problems.
4-11 (15) "Political subdivision" means a county,
4-12 municipality, or other body politic or corporate of the state,
4-13 including a district or authority created under Article III,
4-14 Section 52 or Article XVI, Section 59, of the Texas Constitution, a
4-15 state agency, or a nonprofit water supply corporation created under
4-16 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
4-17 (Article 1434a, Vernon Texas Civil Statutes).
4-18 Sec. 35.003. SURFACE WATER LAWS NOT APPLICABLE. The laws
4-19 and administrative rules relating to the use of surface water do
4-20 not apply to groundwater.
4-21 Sec. 35.004. DESIGNATION OF MANAGEMENT AREAS. (a) On its
4-22 own motion from time to time, or on receiving a petition, the
4-23 commission may designate groundwater management areas. Each
4-24 management area shall be designated with the objective of providing
4-25 the most suitable area for the management of the groundwater
5-1 resources. To the extent feasible, the management area shall
5-2 coincide with the boundaries of an groundwater reservoir or a
5-3 subdivision of an groundwater reservoir. The commission also may
5-4 consider other factors, including the boundaries of political
5-5 subdivisions.
5-6 (b) On the request of any person interested in the petition,
5-7 or on the request of the commission, the executive director shall
5-8 prepare available evidence relating to the configuration of a
5-9 groundwater management area. Before making the designation, the
5-10 commission shall consider the evidence prepared by the executive
5-11 director and other evidence submitted at the hearing.
5-12 (c) The commission may alter the boundaries of designated
5-13 management areas as required by future conditions and as justified
5-14 by factual data. An alteration of boundaries does not invalidate
5-15 the previous creation of any district.
5-16 (d) The commission shall designate groundwater management
5-17 areas using the procedures applicable to rule making under the
5-18 Administrative Procedure Act, Subchapter B, Chapter 2001,
5-19 Government Code.
5-20 Sec. 35.005. PETITION TO DESIGNATE A GROUNDWATER MANAGEMENT
5-21 AREA. (a) A petition may be submitted to the commission for the
5-22 sole purpose of requesting that the commission designate a
5-23 management area for all or part of one or more counties.
5-24 (b) A petition filed pursuant to this section must be signed
5-25 by:
6-1 (1) a majority of the landowners in the proposed
6-2 management area; or
6-3 (2) if there are more than 50 landowners in the
6-4 proposed management area, the petition must be signed by at least
6-5 50 of those landowners.
6-6 (c) A petition filed pursuant to this section must contain
6-7 the following statement:
6-8 "Petitioners request that the Texas Natural Resource
6-9 Conservation Commission designate a groundwater management area to
6-10 include all or part of ______________ County (counties). The
6-11 management area shall be designated with the objective of providing
6-12 the most suitable area for the management of groundwater resources
6-13 of the part of the state in which a district is to be located.
6-14 Petitioners understand that this petition requests only the
6-15 designation of a management area, but that all or part of the land
6-16 in the management area designated may later be added to an existing
6-17 groundwater conservation district or become a new groundwater
6-18 conservation district, as provided by Chapter 36 of the Water
6-19 Code."
6-20 (d) A petition shall include a map that shows the location
6-21 of the proposed management area and may include any other
6-22 information desired by the petitioners concerning the proposed
6-23 management area.
6-24 (e) The petitioners shall file the petition with the
6-25 executive director for review in accordance with the rules of the
7-1 commission. The petitioners shall supply any additional
7-2 information requested by the commission or the executive director.
7-3 (f) The commission shall act on the petition within a
7-4 reasonable amount of time.
7-5 Sec. 35.006. NOTICE FOR DESIGNATION OF MANAGEMENT AREA.
7-6 (a) In addition to the notice required under the Administrative
7-7 Procedure Act, Section 2001.023, Government Code, the petitioners
7-8 shall have notice published in at least one newspaper with general
7-9 circulation in the county or counties in which the proposed
7-10 management area is to be located. Notice must be published not
7-11 later than the 30th day before the date set for the commission to
7-12 consider the designation of the management area.
7-13 (b) The notice must include:
7-14 (1) a statement of the general purpose and effect of
7-15 designating the proposed management area;
7-16 (2) a map generally outlining the boundaries of the
7-17 proposed management area or notice of the location at which a copy
7-18 of the map may be examined or obtained; and
7-19 (3) the time and place at which the commission will
7-20 consider the designation of the management area.
7-21 (c) If the commission designates a management area on its
7-22 own motion, the commission shall give the same notice as required
7-23 by the petitioner under this section.
7-24 Sec. 35.007. IDENTIFYING, DESIGNATING AND DELINEATING
7-25 CRITICAL AREAS. (a) The executive director and the executive
8-1 administrator shall meet at least once a year to identify those
8-2 areas of the state that are experiencing or that are expected to
8-3 experience, based on information available to the commission and
8-4 the Texas Water Development Board, within the immediately following
8-5 20-year period, critical groundwater problems including shortages
8-6 of surface or groundwater, land subsidence resulting from
8-7 groundwater withdrawal, and contamination of groundwater supplies.
8-8 (b) If the executive director concludes that an area of the
8-9 state should be considered for designation as a critical area, the
8-10 executive director shall prepare a report to the commission.
8-11 (c) The executive director shall begin preparation of a
8-12 critical area report by requesting a study from the executive
8-13 administrator. The study must include an appraisal of the
8-14 hydrogeology of the area and matters within the Texas Water
8-15 Development Board's planning expertise relevant to the area. The
8-16 study must be completed and delivered to the executive director on
8-17 or before the 90th day following the date of the request. If the
8-18 study is not delivered within this 90-day period, the executive
8-19 director may proceed with the preparation of the report.
8-20 (d) The report shall include:
8-21 (1) the recommended delineation of the boundaries of
8-22 any proposed critical area in the form of a rule to be considered
8-23 for adoption by the commission;
8-24 (2) the reasons and supporting information for or
8-25 against designating the area as a critical area;
9-1 (3) a recommendation regarding whether a district
9-2 should be created in the critical area or whether the critical area
9-3 should be added to an existing district;
9-4 (4) any other information that the executive director
9-5 considers helpful to the commission.
9-6 (e) The executive director must complete the report and file
9-7 it with the commission on or before the 210th day following the
9-8 date on which the executive administrator was requested to produce
9-9 a study. The executive director shall make the report available
9-10 for public inspection by providing a copy of the report to at least
9-11 one library in each county in which the proposed critical area is
9-12 located.
9-13 (f) To carry out this section, the executive director may
9-14 make necessary studies, hold hearings, solicit and collect
9-15 information, and use information already prepared by the executive
9-16 director or the executive administrator for other purposes.
9-17 Sec. 35.008. PROCEDURES FOR DESIGNATION OF CRITICAL AREAS.
9-18 (a) The commission shall designate critical areas using the
9-19 procedures applicable to rule making under the Administrative
9-20 Procedure Act, Subchapter B, Chapter 2001, Government Code, but if
9-21 procedures required by this chapter are in conflict with that Act,
9-22 this chapter controls.
9-23 (b) The designation of a critical area may not be appealed
9-24 nor may it be challenged under the Administrative Procedure Act,
9-25 Section 2001.038, Government Code.
10-1 Sec. 35.009. NOTICE AND HEARING. (a) In addition to the
10-2 notice required for rule making under the Administrative Procedure
10-3 Act, Sec. 2001.023, Government Code, the commission shall have
10-4 notice published in at least one newspaper with general circulation
10-5 in the county or counties in which the proposed critical area is to
10-6 be located. Notice must be published not later than the 30th day
10-7 before the date set for the commission to consider the designation
10-8 of the critical area.
10-9 (b) The notice must include:
10-10 (1) a statement of the general purpose and effect of
10-11 designating the proposed critical areas;
10-12 (2) a map generally outlining the boundaries of the
10-13 proposed critical area or notice of the location at which a copy of
10-14 the map may be examined or obtained;
10-15 (3) a description or the name of the locations at
10-16 which the commission has provided copies of the executive
10-17 director's report to be made available for public inspection; and
10-18 (4) the date, time, and place at which the commission
10-19 will consider the designation of the critical areas.
10-20 Sec. 35.010. CONSIDERATION OF THE CREATION OF A DISTRICT OR
10-21 ADDITION OF LAND IN A CRITICAL AREA TO AN EXISTING DISTRICT.
10-22 (a) Following its designation of a critical area, the commission
10-23 may call a hearing to consider:
10-24 (1) whether a district should be created over all or
10-25 part of a critical area; or
11-1 (2) whether all or part of the land in the critical
11-2 area should be added to an existing district.
11-3 (b) Evidentiary hearings shall be held at a location in one
11-4 of the counties in which the critical area is located or in the
11-5 nearest convenient location if adequate facilities are not
11-6 available in the critical area.
11-7 (c) At the hearing, the commission shall hear testimony and
11-8 receive evidence from all interested parties. The commission shall
11-9 consider the executive director's report and supporting information
11-10 and the testimony and evidence received at the hearing. If the
11-11 commission considers further information necessary, it may request
11-12 it from any source.
11-13 Sec. 35.011. NOTICE OF HEARING TO CREATE DISTRICT OR ADD
11-14 CRITICAL AREA TO EXISTING DISTRICT. (a) The commission shall have
11-15 notice of the hearing published in a newspaper with general
11-16 circulation in the county or counties in which the area being
11-17 considered for district creation or addition to an existing
11-18 district is located. Notice must be published not later than the
11-19 30th day before the date of the hearing.
11-20 (b) The notice must include:
11-21 (1) a general statement of the nature and purpose of
11-22 the district that may be created in the critical area;
11-23 (2) if applicable, a statement that all or part of the
11-24 land in the critical area could be added to an existing district;
11-25 (3) a map generally outlining the boundaries of the
12-1 critical area being considered for district creation or addition to
12-2 an existing district or notice of the location at which a copy of
12-3 the map may be examined or obtained;
12-4 (4) a statement that the full executive director's
12-5 report concerning the critical area in question is available at the
12-6 commission's main office in Austin, Texas, and that the report is
12-7 available for inspection during regular business hours;
12-8 (5) the name and address of each library in the
12-9 proposed critical area to which the commission has provided copies
12-10 of the executive director's report; and
12-11 (6) the date, time, and place of the hearing.
12-12 (c) The commission also shall give written notice of the
12-13 date, time, place, and purpose of the hearing to the governing body
12-14 of each county, city, and district created under Article III,
12-15 Sections 52(b)(1) and (2), or Article XVI, Section 59, of the Texas
12-16 Constitution, all or part of which is located in the critical area.
12-17 The notice must be given before the 30th day preceding the date set
12-18 for the hearing.
12-19 Sec. 35.012. COMMISSION ORDER. (a) At the conclusion of
12-20 its hearing and considerations, the commission shall issue an order
12-21 stating its findings and conclusions.
12-22 (b) If the commission finds that the land and other property
12-23 in the critical area would benefit from the creation of one or more
12-24 districts, that there is a public need for one or more districts,
12-25 and that the creation of one or more districts would further the
13-1 public welfare, the commission shall issue an order stating that
13-2 the creation of one or more districts is needed.
13-3 (c) During the period between the date of issuance of a
13-4 commission order under subsection (b) and one year after the close
13-5 of the next regular session of the legislature following the
13-6 issuance of the order, the landowners in the critical area may:
13-7 (1) create one or more districts under Subchapter B of
13-8 Chapter 36;
13-9 (2) have the area annexed to a district that adjoins
13-10 the area; or
13-11 (3) create one or more districts through the
13-12 legislative process.
13-13 (d) The commission shall identify the areas subject to the
13-14 order of the commission issued under subsection (b) that have not,
13-15 in the period provided by subsection (c), been incorporated into a
13-16 district, and shall delineate proposed boundaries of a district to
13-17 include those areas. If the commission proposes the creation of
13-18 one or more districts, the commission shall begin the procedures
13-19 for creation of a district provided in Subchapter B, Chapter 36.
13-20 (e) If the commission fails to find that the district would
13-21 be a benefit to the land and other property within the critical
13-22 area, that there is a public need for the district, or that
13-23 creation of the district will further the public welfare, the
13-24 commission shall issue an order stating that a district should not
13-25 be created within the boundaries of the critical area.
14-1 (f) An order of the commission issued under this section may
14-2 not be appealed.
14-3 Sec. 35.013. ADDING CRITICAL AREA TO EXISTING DISTRICT.
14-4 (a) If land in a critical area is located adjacent to one or more
14-5 existing districts, the commission, instead of issuing an order
14-6 under Section 35.012, may issue an order recommending that the
14-7 critical area be added to the existing district designated by the
14-8 commission. In its order, the commission must find that the land
14-9 and other property in the critical area and the land in the
14-10 existing district will benefit from the addition of the area, that
14-11 there is a public need to add the critical area to the existing
14-12 district, and that the addition of the land to the existing
14-13 district would further the public welfare.
14-14 (b) If the executive director recommends that the critical
14-15 area be added to an existing district or if the commission
14-16 considers it possible to add the critical area to an adjacent
14-17 existing district, the commission shall give notice to the board of
14-18 the existing district recommended by the executive director or
14-19 considered by the commission to possibly serve the area and to any
14-20 other existing districts adjacent to the critical area.
14-21 (c) The commission shall submit a copy of the order to the
14-22 board of the district to which it is recommending the critical area
14-23 be added. The board shall vote on the addition of the critical
14-24 area to the district and shall advise the commission of the
14-25 outcome.
15-1 (d) If the board votes to accept the addition of the
15-2 critical area to the district, the board shall call an election
15-3 within the critical area as delineated by the commission to
15-4 determine if the critical area will be added to the district. In
15-5 the order calling the election, the board shall designate election
15-6 precincts and polling places for the elections.
15-7 (e) The board shall give notice of the election and the
15-8 proposition to be voted on. The board shall publish notice of the
15-9 election at least one time in one or more newspapers with general
15-10 circulation within the boundaries of the critical area. The notice
15-11 must be published before the 30th day preceding the date set for
15-12 the election.
15-13 (f) The ballots for the election shall be printed to provide
15-14 for voting for or against the proposition: "The inclusion of
15-15 __________ (briefly describe critical area) in the __________
15-16 District and assumption by the described area of a proportional
15-17 share of the outstanding indebtedness of the district."
15-18 (g) Immediately after the election, the presiding judge of
15-19 each polling place shall deliver the returns of the election to the
15-20 board, and the board shall canvass the returns for the election
15-21 within the critical area and declare the results. If a majority of
15-22 the voters in the critical area voting on the proposition vote in
15-23 favor of the proposition, the board shall declare that the critical
15-24 area is added to the district. If a majority of the voters in the
15-25 critical area voting on the proposition vote against adding the
16-1 critical area to the district, the board shall declare that the
16-2 critical area is not added to the district. The board shall file a
16-3 copy of the election results with the commission.
16-4 (h) If the voters approve adding the critical area to the
16-5 district, the board of the district to which the critical area is
16-6 added shall provide reasonable representation on that board
16-7 compatible with the district's existing scheme of representation.
16-8 (i) If the proposition is defeated, another election to add
16-9 the critical area to an existing district may not be called before
16-10 the first anniversary of the date on which the election on the
16-11 proposition was held.
16-12 Sec. 35.014. COSTS OF ELECTIONS. (a) The costs of an
16-13 election to create a district at which a district is authorized to
16-14 be created shall be paid by the district.
16-15 (b) The costs of an election to add a critical area to an
16-16 existing district at which the voters approve adding the critical
16-17 area to the district shall be paid by the existing district.
16-18 (c) The costs of an election to create a district or add a
16-19 critical area to an existing district at which the proposition
16-20 fails shall be paid by the commission.
16-21 Sec. 35.015. STATE ASSISTANCE. (a) A city, county, or
16-22 district created under Article III, Section 52(b)(1) and (2), or
16-23 Article XVI, Section 59, of the Texas Constitution located in or
16-24 that has within its boundaries an area or part of an area
16-25 delineated as a critical area, and in which the qualified voters
17-1 fail to approve the creation of a district or to join an existing
17-2 district, shall not be eligible to receive any financial assistance
17-3 from the state under Chapters 15, 16 or 17 for use within that
17-4 portion of the critical area not covered by a district.
17-5 (b) A city, county, or district created under Article III,
17-6 Section 52, or Article XVI, Section 59, of the Texas Constitution
17-7 located in an area delineated as a critical area, and in which
17-8 qualified voters approve the creation of a district or annexation
17-9 into an existing district, shall be given consideration to receive
17-10 financial assistance from the state under Chapter 17 for funds to
17-11 be used in addressing issues identified in the critical area report
17-12 in the manner provided by Sections 17.124 and 17.125 except that
17-13 the board is not required to make the finding set out in Section
17-14 17.125(a)(2).
17-15 Sec. 35.016. EXEMPTION FROM CHAPTER. (a) This chapter does
17-16 not apply to any active groundwater conservation district or to
17-17 land within an active groundwater conservation district.
17-18 (b) In this section, "active groundwater conservation
17-19 district" has the same meaning as the term is defined in Section
17-20 36.301(c).
17-21 Sec. 35.017. STATE-OWNED LAND. If state-owned land or a
17-22 portion of state-owned land is located in a critical area, the
17-23 state agency that has management and control over that land under
17-24 the constitution or by statute may elect by written agreement with
17-25 the commission and the district to include the state-owned land in
18-1 the district. The agreement shall be entered into as provided by
18-2 the Texas Intergovernmental Cooperation Act, Chapter 741,
18-3 Government Code, and may include provisions for the payment by the
18-4 state agency of reasonable fees to the district. If the state does
18-5 not elect to enter into the agreement to include the state-owner
18-6 land in the district, the state agency must establish a groundwater
18-7 management plan that will conserve, protect, and prevent the waste
18-8 of groundwater on that state-owned land.
18-9 Sec. 35.018. JOINT PLANNING IN A MANAGEMENT AREA. (a) If
18-10 two or more districts are located within the boundaries of the same
18-11 management area, each district shall prepare a comprehensive
18-12 management plan as required by Section 36.107 covering that
18-13 district's respective territory. On completion of the plan, each
18-14 district shall forward a copy of the new revised management plan to
18-15 the other districts in the management area.
18-16 (b) The board of directors of each district in the
18-17 management area may, by resolution, call a joint meeting with the
18-18 boards of directors of the other districts in the management area
18-19 to review the management plans and accomplishments for the
18-20 management area. The boards shall meet to consider the plans
18-21 individually and shall compare them to other management plans then
18-22 in force in the management area. In reviewing the management
18-23 plans, the boards shall consider:
18-24 (1) the goals of each management plan and its impact
18-25 on planning throughout the management area;
19-1 (2) the effectiveness of the measures established by
19-2 each management plan for conserving and protecting groundwater and
19-3 preventing waste and the effectiveness of these measures in the
19-4 management area generally; and
19-5 (3) any other matters that the boards consider
19-6 relevant to the protection and conservation of groundwater and the
19-7 prevention of waste in the management area.
19-8 (c) A joint meeting of the boards of directors must be held
19-9 in accordance with the Open Meetings Act, Chapter 551, Government
19-10 Code. Notice of the meeting shall be given in accordance with the
19-11 requirements for notice of district board of directors meetings
19-12 under that Act. In addition, notice of the meeting shall be
19-13 published not later than the 30th day before the date of the
19-14 scheduled meeting in a newspaper with general circulation in each
19-15 county in the management area.
19-16 (d) A district in the management area may file a petition
19-17 with the commission requesting an inquiry if the petitioner
19-18 district believes that:
19-19 (1) another district in the management area has failed
19-20 to adopt rules;
19-21 (2) the groundwater in the management area is not
19-22 adequately protected by the rules adopted by another district; or
19-23 (3) the groundwater in the management area is not
19-24 adequately protected due to the failure of another district to
19-25 enforce substantial compliance with its rules.
20-1 (e) Not later than the 90th day after the date the petition
20-2 is filed, the commission shall review the petition and either:
20-3 (1) dismiss it if it finds that the evidence is not
20-4 adequate to show that any of the conditions alleged in the petition
20-5 exist; or
20-6 (2) select a review panel as provided below.
20-7 (f) The commission may appoint a review panel consisting of
20-8 a chairman and four other members. A director or general manager
20-9 of a district located outside the management area that is the
20-10 subject of the petition may be appointed to the review panel. The
20-11 commission may not appoint more than two members of the review
20-12 panel from any one district. The commission also shall appoint a
20-13 disinterested person to serve as a nonvoting recording secretary
20-14 for the review panel. The recording secretary may be an employee
20-15 of the commission. The recording secretary shall record and
20-16 document the proceedings of the panel.
20-17 (g) Not later than the 120th day after appointment, the
20-18 review panel shall review the petition and any evidence relevant to
20-19 the petition and, in a public meeting, prepare a report to the
20-20 commission. The commission may direct the review panel to conduct
20-21 public hearings at a location in the management area to take
20-22 evidence on the petition. The review panel may attempt to
20-23 negotiate a settlement or resolve the dispute by any lawful means.
20-24 (h) In its report, the review panel shall include:
20-25 (1) a summary of all evidence taken in any hearing on
21-1 the petition;
21-2 (2) a list of any actions, including approval of a
21-3 settlement, that it finds are appropriate for the commission to
21-4 take and the reasons it finds those actions appropriate or, if it
21-5 finds that no action by the commission is necessary, the reasons
21-6 why it so finds; and
21-7 (3) any other information the panel considers
21-8 appropriate.
21-9 CHAPTER 36. GROUNDWATER CONSERVATION DISTRICTS
21-10 SUBCHAPTER A. GENERAL PROVISIONS
21-11 Sec. 36.001. DEFINITIONS. In this chapter:
21-12 (1) "District" means any district or authority created
21-13 under Article III, Section 52 or Article XVI, Section 59 of the
21-14 Texas Constitution that has the authority to regulate the spacing
21-15 of water wells, the production from water wells, or both.
21-16 (2) "Commission" means the Texas Natural Resource
21-17 Conservation Commission.
21-18 (3) "Executive director" means the executive director
21-19 of the commission.
21-20 (4) "Executive administrator" means the executive
21-21 administrator of the Texas Water Development Board.
21-22 (5) "Groundwater" means water percolating below the
21-23 surface of the earth.
21-24 (6) "Groundwater reservoir" means a specific
21-25 subsurface water-bearing reservoir having ascertainable boundaries
22-1 containing groundwater.
22-2 (7) "Subdivision of a groundwater reservoir" means a
22-3 definable part of a groundwater reservoir in which the groundwater
22-4 supply will not be measurably affected by withdrawing water from
22-5 any other part of the reservoir, as indicated by known geological
22-6 and hydrological conditions and relationships and on foreseeable
22-7 economic development at the time the subdivision is designated or
22-8 altered.
22-9 (8) "Waste" means any one or more of the following:
22-10 (A) withdrawal of groundwater from a groundwater
22-11 reservoir at a rate and in an amount that causes or threatens to
22-12 cause intrusion into the reservoir of water unsuitable for
22-13 agricultural, gardening, domestic, or stock raising purposes;
22-14 (B) the flowing or producing of wells from a
22-15 groundwater reservoir if the water produced is not used for a
22-16 beneficial purpose;
22-17 (C) escape of groundwater from a groundwater
22-18 reservoir to any other reservoir or geologic strata that does not
22-19 contain groundwater;
22-20 (D) pollution or harmful alteration of
22-21 groundwater in a groundwater reservoir by salt water, other
22-22 deleterious matter admitted from another stratum, or from the
22-23 surface of the ground;
22-24 (E) wilfully or negligently causing, suffering,
22-25 or allowing groundwater to escape into any river, creek, natural
23-1 watercourse, depression, lake, reservoir, drain, sewer, street,
23-2 highway, road, or road ditch, or onto any land other than that of
23-3 the owner of the well; or
23-4 (F) groundwater pumped for irrigation that
23-5 escapes as irrigation tailwater onto land other than that of the
23-6 owner of the well unless permission has been granted by the
23-7 occupant of the land receiving the discharge.
23-8 (9) "Use for a beneficial purpose" means use for:
23-9 (A) agricultural, gardening, domestic, stock
23-10 raising, municipal, mining, manufacturing, industrial, commercial,
23-11 recreational, or pleasure purposes;
23-12 (B) exploring for, producing, handling, or
23-13 treating oil, gas, sulphur, or other minerals; or
23-14 (C) any other purpose that is useful and
23-15 beneficial to the user.
23-16 (10) "Subsidence" means the lowering in elevation of
23-17 the land surface caused by withdrawal of groundwater.
23-18 (11) "Board" means the board of directors of a
23-19 district.
23-20 (12) "Director" means a member of a board.
23-21 (13) "Management area" means an area designated and
23-22 delineated by the commission under Chapter 35 as an area suitable
23-23 for management of groundwater resources.
23-24 (14) "Critical area" means an area designated and
23-25 delineated by the commission under Chapter 35 as an area
24-1 experiencing or expected to experience critical groundwater
24-2 problems.
24-3 (15) "Political subdivision" means a county,
24-4 municipality, or other body politic or corporate of the state,
24-5 including a district or authority created under Article III,
24-6 Section 52 or Article XVI, Section 59, of the Texas Constitution, a
24-7 state agency, or a nonprofit water supply corporation created under
24-8 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
24-9 (Article 1434a, Vernon Texas Civil Statutes).
24-10 Sec. 36.002. OWNERSHIP OF GROUNDWATER. The ownership and
24-11 rights of the owners of the land and their lessees and assigns in
24-12 groundwater are hereby recognized, and nothing in this code shall
24-13 be construed as depriving or divesting the owners or their lessees
24-14 and assigns of the ownership or rights, subject to rules
24-15 promulgated by a district.
24-16 (Sections 36.003-36.010 reserved for expansion
24-17 SUBCHAPTER B. CREATION OF DISTRICT.
24-18 Sec. 36.011. METHOD OF CREATING DISTRICT. (a) A groundwater
24-19 conservation district may be created under and subject to the
24-20 authority, conditions, and restrictions of Article XVI, Section 59,
24-21 of the Texas Constitution.
24-22 (b) The commission has exclusive jurisdiction over the
24-23 delineation of management areas and the creation of districts.
24-24 Sec. 36.012. COMPOSITION OF DISTRICT. (a) A district may
24-25 include all or part of one or more counties, cities, districts, or
25-1 other political subdivisions.
25-2 (b) A district may not include territory located in more
25-3 than one county except on a majority vote of the voters residing
25-4 within the territory in each county sought to be included in the
25-5 district at an election called for that purpose.
25-6 (c) The boundaries of a district must be coterminous with or
25-7 inside the boundaries of a management area or a critical area.
25-8 (d) The areas of which a district is composed do not have to
25-9 be contiguous but may consist of separate bodies of land separated
25-10 by land not included in the district.
25-11 (e) A majority of the voters in a segregated area must
25-12 approve the creation of the district before that area may be
25-13 included in the district.
25-14 Sec. 36.013. PETITION TO CREATE DISTRICT. (a) A petition
25-15 requesting creation of a district must be filed with the executive
25-16 director for review and submission to the commission.
25-17 (b) The petition filed pursuant to this section must be
25-18 signed by:
25-19 (1) a majority of the landowners within the proposed
25-20 district, as indicated by the county tax rolls; or
25-21 (2) if there are more than 50 landowners in the
25-22 proposed district, the petition must be signed by at least 50 of
25-23 those landowners.
25-24 (c) The petition must include:
25-25 (1) the name of the proposed district;
26-1 (2) the area and boundaries of the proposed district,
26-2 including a map generally outlining the boundaries of the proposed
26-3 district;
26-4 (3) the purpose or purposes of the district;
26-5 (4) a statement of the general nature of any projects
26-6 proposed to be undertaken by the district, the necessity and
26-7 feasibility of the work, and the estimated costs of those projects
26-8 according to the persons filing the projects if the projects are to
26-9 be funded by the sale of bonds or notes; and
26-10 (5) any additional terms or conditions that restrict
26-11 the powers of the district from those provided in this chapter.
26-12 (d) If a part of the proposed district is not included
26-13 either within a management area or a critical area, the petition to
26-14 create a district may also contain a request to create a management
26-15 area. A request to create a management area must comply with the
26-16 requirements for a petition in Section 35.005, and may be acted on
26-17 by the commission separately from the petition to create the
26-18 district.
26-19 Sec. 36.014. NOTICE AND HEARING ON DISTRICT CREATION.
26-20 (a) The notice of hearing on a petition must include a statement
26-21 of the nature and purpose of the proposed district and the date,
26-22 time, and place of hearing.
26-23 (b) The notice must be posted on the bulletin board used for
26-24 posting legal notices in each county in which all or part of the
26-25 proposed district is to be located.
27-1 (c) Notice of the hearing shall be published in a newspaper
27-2 with general circulation in the county or counties in which the
27-3 proposed district is to be located. Notice must be published no
27-4 later than the 30th day before the date of the hearing.
27-5 (d) If the petition contains a request to create a
27-6 management area in all or part of the proposed district, the notice
27-7 must also be given in accordance with the requirements in Section
27-8 35.006 for the designation of management areas.
27-9 Sec. 36.015. FINDINGS. (a) If the commission finds that a
27-10 district is feasible and practicable, that it would be a benefit to
27-11 the land in the district, and that it would be a public benefit or
27-12 utility, the commission shall issue an order containing these
27-13 findings granting the petition.
27-14 (b) If the commission finds that a district is not feasible
27-15 and practicable, that it would not be a benefit to the land in the
27-16 district, that it would not be a public benefit or utility, or that
27-17 it is not needed, the commission by order shall deny the petition.
27-18 (c) The commission may adjust the boundaries of the proposed
27-19 district to exclude any land that would not be benefited by
27-20 inclusion in the district and is not necessary to the district for
27-21 proper regulation of the groundwater reservoir.
27-22 (d) If the commission grants the petition to create the
27-23 district, it shall direct in its order creating the district that
27-24 an election be called by the temporary directors to confirm the
27-25 creation of the district and to elect permanent directors.
28-1 (e) The refusal to grant a petition to create a district
28-2 does not invalidate or affect the designation of any management
28-3 area requested in the same petition.
28-4 (f) The commission shall act on the petition within a
28-5 reasonable amount of time.
28-6 Sec. 36.016. APPOINTMENT OF TEMPORARY DIRECTORS. (a) If
28-7 the commission grants a petition to create a district, it shall
28-8 appoint five temporary directors who shall serve until the initial
28-9 directors are elected and have qualified for office or until the
28-10 voters fail to approve the creation of the district.
28-11 (b) If an appointee of the commission fails to qualify or if
28-12 a vacancy occurs in the office of temporary director, the
28-13 commission shall appoint an individual to fill the vacancy.
28-14 (c) As soon as all temporary directors have qualified, the
28-15 directors shall meet, take the oath of office, and elect a chairman
28-16 and vice-chairman from among their membership. The chairman shall
28-17 preside at all meetings of the board and, in the chairman's
28-18 absence, the vice-chairman shall preside.
28-19 Sec. 36.017. CONFIRMATION AND DIRECTORS ELECTION. (a) Not
28-20 later than the 60th day after the date all temporary directors have
28-21 been appointed and have qualified, the temporary directors shall
28-22 meet and order an election to be held within the boundaries of the
28-23 proposed district to approve the creation of the district and to
28-24 elect permanent directors.
28-25 (b) In the order calling the election, the temporary
29-1 directors shall designate election precincts and polling places for
29-2 the election. In designating the polling places, the temporary
29-3 directors shall consider the needs of all voters for conveniently
29-4 located polling places.
29-5 (c) The temporary directors shall publish notice of the
29-6 election at least one time in at least one newspaper with general
29-7 circulation within the boundaries of the proposed district. The
29-8 notice must be published before the 30th day preceding the date of
29-9 the election.
29-10 (d) The ballot for the election must be printed to provide
29-11 for voting for or against the proposition: "The creation of
29-12 the ____________ Groundwater Conservation District." If the
29-13 district levies a maintenance tax for payment of its expenses, the
29-14 proposition shall include the following language: "and the levy of
29-15 a maintenance tax at a rate not to exceed ______ cents for each
29-16 $100 of assessed valuation."
29-17 (e) Immediately after the election, the presiding judge of
29-18 each polling place shall deliver the returns of the election to the
29-19 temporary board, and the board shall canvass the returns and
29-20 declare the result. The board shall file a copy of the election
29-21 result with the commission.
29-22 (f) If a majority of the votes cast at the election favor
29-23 the creation of the district, the temporary board shall declare the
29-24 district created and shall enter the result in its minutes.
29-25 (g) If a majority of the votes cast at the election are
30-1 against the creation of the district, the temporary board shall
30-2 declare the district defeated and shall enter the result in its
30-3 minutes.
30-4 (h) If the majority of the votes cast at the election are
30-5 against the creation of the district, the district shall have no
30-6 further authority, except that any debts incurred shall be paid and
30-7 the organization of the district shall be maintained until all the
30-8 debts are paid.
30-9 Sec. 36.018. INCLUSION OF MUNICIPALITY. (a) If part of the
30-10 territory to be included in a district is located in a
30-11 municipality, a separate voting district may not be established in
30-12 the municipality for the purpose of determining whether the
30-13 municipality as a separate area is to be included in the district.
30-14 (b) If for any other reason the territory in a municipality
30-15 is established as a separate voting district, the failure by the
30-16 voters in the municipal territory to confirm the creation of the
30-17 district or the annexation of territory to a district does not
30-18 prevent the territory in the municipality from being included in
30-19 the district.
30-20 Sec. 36.019. CONFIRMATION ELECTION IN DISTRICT INCLUDING
30-21 LAND IN MORE THAN ONE COUNTY. A district, the major portion of
30-22 which is located in one county, may not be organized to include
30-23 land in another county unless the election held in the other county
30-24 to confirm and ratify the creation of the district is approved by a
30-25 majority of the voters of the other county voting in an election
31-1 called for that purpose.
31-2 Sec. 36.020. BOND AND TAX PROPOSAL. (a) At an election to
31-3 create a district, the temporary directors may include a
31-4 proposition for the issuance of bonds or notes, the levy of taxes
31-5 to retire all or part of the bonds or notes, and the levy of a
31-6 maintenance tax. The maintenance tax rate may not exceed 50 cents
31-7 on each $100 of assessed valuation.
31-8 (b) The board shall include in any bond and tax proposition
31-9 the maximum amount of bonds or notes to be issued and their maximum
31-10 maturity date.
31-11 Sec. 36.021. NOTIFICATION OF COUNTY CLERK. Within 30 days
31-12 following the creation of a district or any amendment to the
31-13 boundaries of a district, the board of directors shall file with
31-14 the county clerk of each county in which all or part of the
31-15 district is located a certified copy of the description of the
31-16 boundaries of the district. Each county clerk shall record the
31-17 certified copy of the boundaries in the property records of that
31-18 county.
31-19 (Sections 36.022-36.050 reserved for expansion
31-20 SUBCHAPTER C. ADMINISTRATION
31-21 Sec. 36.051. BOARD OF DIRECTORS. (a) The governing body of
31-22 a district is the board of directors, which shall consist of not
31-23 fewer than five and not more than 11 directors elected for
31-24 four-year terms. The number of directors may be changed as
31-25 determined by the board when territory is annexed by the district.
32-1 (b) A member of a governing body of another political
32-2 subdivision is ineligible for appointment or election as a
32-3 director. A director is disqualified and vacates the office of
32-4 director if the director is appointed or elected as a member of the
32-5 governing body of another political subdivision. This subsection
32-6 does not apply to any district with a population less than 50,000.
32-7 (c) Vacancies in the office of director shall be filled by
32-8 appointment of board. If the vacant office is not scheduled for
32-9 election for longer than two years at the time of the appointment,
32-10 the board shall order an election for the unexpired term to be held
32-11 as part of the next regularly scheduled director's election. The
32-12 appointed director's term shall end upon qualification of the
32-13 director elected at that election.
32-14 Sec. 36.052. OTHER LAWS NOT APPLICABLE. Other laws
32-15 governing the administration or operations of districts created
32-16 under Article III, Section 52 or Article XVI, Section 59 of the
32-17 Texas Constitution shall not apply to any district governed by this
32-18 chapter. This chapter prevails over any other law in conflict or
32-19 inconsistent with this chapter, except any law governing a specific
32-20 district shall prevail over this chapter.
32-21 Sec. 36.053. QUORUM. A majority of the membership of the
32-22 board constitutes a quorum for any meeting, and a concurrence of a
32-23 majority of the entire membership of the board is sufficient for
32-24 transacting any business of the district.
32-25 Sec. 36.054. OFFICERS. (a) After a district is created and
33-1 the directors have qualified, the board shall meet, elect a
33-2 president, vice-president, secretary, and any other officers or
33-3 assistant officers as the board may deem necessary and begin the
33-4 discharge of its duties.
33-5 (b) After each directors election, the board shall meet and
33-6 elect officers.
33-7 (c) The president is the chief executive officer of the
33-8 district, presides at all meetings of the board, and shall execute
33-9 all documents on behalf of the district. The vice-president shall
33-10 act as president in case of the absence or disability of the
33-11 president. The secretary is responsible for seeing that all
33-12 records and books of the district are properly kept and shall
33-13 attest the president's signature on all documents.
33-14 (d) The board may appoint another director, the general
33-15 manager, or any employee as assistant or deputy secretary to assist
33-16 the secretary, and any such person shall be entitled to certify as
33-17 to the authenticity of any record of the district, including but
33-18 not limited to all proceedings relating to bonds, contracts, or
33-19 indebtedness of the district.
33-20 (e) After any election or appointment of a director, a
33-21 district shall notify the executive director within 30 days after
33-22 the date of the election or appointment of the name and mailing
33-23 address of the director chosen and the date that director's term of
33-24 office expires. The executive director shall provide forms to the
33-25 district for such purpose.
34-1 Sec. 36.055. SWORN STATEMENT, BOND AND OATH OF OFFICE.
34-2 (a) As soon as practicable after a director is elected or
34-3 appointed, that director shall make the sworn statement prescribed
34-4 by the constitution for public office.
34-5 (b) As soon as practicable after a director has made the
34-6 sworn statement, and before beginning to perform the duties of
34-7 office, that director shall take the oath of office prescribed by
34-8 the constitution for public officers.
34-9 (c) Before beginning to perform the duties of office, each
34-10 director shall execute a bond for $10,000 payable to the district
34-11 and conditioned on the faithful performance of that director's
34-12 duties. All bonds of the directors shall be approved by the board
34-13 and paid for by the district.
34-14 (d) The sworn statement, bond, and oath shall be filed with
34-15 the district and retained in its records. A duplicate original of
34-16 the sworn statement and the oath shall also be filed with the
34-17 secretary of state within 10 days after their execution and need
34-18 not be filed before the new director begins to perform the duties
34-19 of office.
34-20 Sec. 36.056. GENERAL MANAGER. (a) The board may employ or
34-21 contract with a person to perform such services as general manager
34-22 for the district as the board may from time to time specify. The
34-23 board may delegate to the general manager full authority to manage
34-24 and operate the affairs of the district subject only to orders of
34-25 the board.
35-1 (b) The board may delegate to the general manager the
35-2 authority to employ all persons necessary for the proper handling
35-3 of the business and operation of the district and to determine the
35-4 compensation to be paid all employees other than the general
35-5 manager.
35-6 (c) Except in a district that is composed of the territory
35-7 of more than one county, a director may be employed as general
35-8 manager of the district. The compensation of a general manager who
35-9 also serves as a director shall be established by the other
35-10 directors.
35-11 Sec. 36.057. MANAGEMENT OF DISTRICT. (a) The board shall
35-12 be responsible for the management of all the affairs of the
35-13 district. The district shall employ or contract with all persons,
35-14 firms, partnerships, corporations, or other entities, public or
35-15 private, deemed necessary by the board for the conduct of the
35-16 affairs of the district, including, but not limited to, engineers,
35-17 attorneys, financial advisors, operators, bookkeepers, tax
35-18 assessors and collectors, auditors, and administrative staff.
35-19 (b) The board shall set the compensation and terms for
35-20 consultants.
35-21 (c) In selecting attorneys, engineers, auditors, financial
35-22 advisors, or other professional consultants, the district shall
35-23 follow the procedures provided in the Professional Services
35-24 Procurement Act, Subchapter A, Chapter 2254, Government Code.
35-25 (d) The board shall require an officer, employee, or
36-1 consultant who collects, pays, or handles any funds of the district
36-2 to furnish good and sufficient bond, payable to the district, in an
36-3 amount determined by the board to be sufficient to safeguard the
36-4 district. The bond shall be conditioned on the faithful
36-5 performance of that person's duties and on accounting for all funds
36-6 and property of the district. Such bond shall be signed or
36-7 endorsed by a surety company authorized to do business in the
36-8 state.
36-9 (e) The board may pay the premium on surety bonds required
36-10 of officials, employees, or consultants of the district out of any
36-11 available funds of the district, including proceeds from the sale
36-12 of bonds.
36-13 (f) The board may adopt bylaws to govern the affairs of the
36-14 district to perform its purposes. The board may, by resolution,
36-15 authorize its general manager or other employee to execute
36-16 documents on behalf of the district.
36-17 (g) The board shall also have the right to purchase all
36-18 materials, supplies, equipment, vehicles, and machinery needed by
36-19 the district to perform its purposes.
36-20 Sec. 36.058. CONFLICTS OF INTEREST. A director of a
36-21 district is subject to the provisions of Chapter 171, Local
36-22 Government Code, relating to the regulation of conflicts of
36-23 officers of local governments.
36-24 Sec. 36.059. GENERAL ELECTIONS. (a) All elections shall be
36-25 generally conducted in accordance with the Election Code except as
37-1 otherwise provided for by this chapter. Write-in candidacies for
37-2 any district office shall be governed by Subchapter C, Chapter 146,
37-3 Election Code.
37-4 (b) The directors of the district shall be elected according
37-5 to the precinct method as defined by Chapter 12, page 1105, Special
37-6 Laws, Acts of the 46th Legislature, Regular Session, 1939. To be
37-7 qualified to be elected as a director, a person must be a
37-8 registered voter in the precinct that the person represents. If
37-9 any part of a municipal corporation is a part of one precinct, then
37-10 no part of the municipal corporation shall be included in another
37-11 precinct, except that a municipal corporation having a population
37-12 of more than 200,000 may be divided between two or more precincts.
37-13 In a multi-county district, not more than two of the five precincts
37-14 may include the same municipal corporation or part of the same
37-15 municipal corporation.
37-16 Sec. 36.060. FEES OF OFFICE; REIMBURSEMENT. (a) A director
37-17 is entitled to receive fees of office of not more than $100 a day
37-18 for each day the director actually spends performing the duties of
37-19 a director. The fees of office may not exceed $6,000 per annum.
37-20 (b) Each director is also entitled to receive reimbursement
37-21 of actual expenses reasonably and necessarily incurred while
37-22 engaging in activities on behalf of the district.
37-23 (c) In order to receive fees of office and to receive
37-24 reimbursement for expenses, each director shall file with the
37-25 district a verified statement showing the number of days actually
38-1 spent in the service of the district and a general description of
38-2 the duties performed for each day of service.
38-3 Sec. 36.061. POLICIES. (a) Subject to the law governing
38-4 the district, the board shall adopt the following in writing:
38-5 (1) a code of ethics for district directors, officers,
38-6 employees, and persons who are engaged in handling investments for
38-7 the district;
38-8 (2) a policy relating to travel expenditures;
38-9 (3) a policy relating to district investments that
38-10 ensures that:
38-11 (A) purchases and sales of investments are
38-12 initiated by authorized individuals, conform to investment
38-13 objectives and regulations, and are properly documented and
38-14 approved; and
38-15 (B) periodic review is made of district
38-16 investments to evaluate investment performance and security;
38-17 (4) policies and procedures for selection, monitoring,
38-18 or review and evaluation of professional services;
38-19 (5) policies that ensure a better use of management
38-20 information including:
38-21 (A) budgets for use in planning and controlling
38-22 cost;
38-23 (B) an audit or finance committee of the board;
38-24 and
38-25 (C) uniform reporting requirements that use
39-1 "Audits of State and Local Governmental Units" as a guide on audit
39-2 working papers and that uses "Governmental Accounting and Financial
39-3 Reporting Standards."
39-4 (b) The state auditor may audit the financial transactions
39-5 of any district if the state auditor determines that the audit is
39-6 necessary.
39-7 Sec. 36.062. OFFICES AND MEETING PLACES. (a) The board
39-8 shall designate from time to time and maintain one or more regular
39-9 offices for conducting the business of the district and
39-10 maintaining the records of the district. Such offices may be
39-11 located either inside or outside the district's boundaries as
39-12 determined in the discretion of the board.
39-13 (b) The board shall designate one or more places inside or
39-14 outside the district for conducting the meetings of the board.
39-15 Sec. 36.063. NOTICE OF MEETINGS. Notice of meetings of the
39-16 board shall be given as set forth in the Open Meetings Act,
39-17 Chapter 551, Government Code. Neither failure to provide notice of
39-18 a regular meeting nor an insubstantial defect in notice of any
39-19 meeting shall affect the validity of any action taken at the
39-20 meeting.
39-21 Sec. 36.064. MEETINGS. (a) The board shall hold regular
39-22 meetings at least quarterly. It may hold meetings at other times
39-23 as required for the business of the district.
39-24 (b) Meetings shall be conducted and notice of meetings
39-25 shall be posted in accordance with the Open Meetings Act, Chapter
40-1 551, Government Code. A meeting of a committee of the board, or a
40-2 committee composed of representatives of more than one board, where
40-3 less than a quorum of any one board is present is not subject to
40-4 the provisions of the Open Meetings Act, Chapter 551, Government
40-5 Code.
40-6 Sec. 36.065. RECORDS. (a) The board shall keep a complete
40-7 account of all its meetings and proceedings and shall preserve its
40-8 minutes, contracts, records, notices, accounts, receipts, and other
40-9 records in a safe place.
40-10 (b) The records of each district are the property of the
40-11 district and are subject to the Open Records Act, Chapter 552,
40-12 Government Code.
40-13 (c) The preservation, microfilming, destruction, or other
40-14 disposition of the records of each district is subject to the
40-15 requirements of Chapter 201, Local Government Code, and rules
40-16 adopted thereunder.
40-17 Sec. 36.066. SUITS. (a) A district may sue and be sued in
40-18 the courts of this state in the name of the district by and through
40-19 its board. All courts shall take judicial notice of the creation
40-20 of the district and of its boundaries.
40-21 (b) Any court in the state rendering judgment for debt
40-22 against a district may order the board to levy, assess, and collect
40-23 taxes or assessments to pay the judgment.
40-24 (c) The president or the general manager of any district
40-25 shall be the agent of the district on whom process, notice, or
41-1 demand required or permitted by law to be served upon a district
41-2 may be served.
41-3 (d) Except as provided in subsection (e), no suit may be
41-4 instituted in any court of this state contesting:
41-5 (1) the validity of the creation and boundaries of a
41-6 district;
41-7 (2) any bonds or other obligations issued by a
41-8 district; or
41-9 (3) the validity or the authorization of a contract
41-10 with the United States by a district.
41-11 (e) The matters listed in subsection (d) may be judicially
41-12 inquired into at any time and determined in any suit brought by the
41-13 State of Texas through the attorney general. The action shall be
41-14 brought on good cause shown, except where otherwise provided by
41-15 other provisions of this code or by the Texas Constitution. It is
41-16 specifically provided, however, that no such proceeding shall
41-17 affect the validity of or security for any bonds or other
41-18 obligations theretofore issued by a district if such bonds or other
41-19 obligations have been approved by the attorney general.
41-20 (f) A district shall not be required to give bond for
41-21 appeal, injunction, or costs in any suit to which it is a party and
41-22 shall not be required to deposit more than the amount of any award
41-23 in any eminent domain proceeding.
41-24 (g) If the district prevails in any suit it may, in the same
41-25 action, recover reasonable fees for attorneys, expert witnesses,
42-1 and other costs incurred by the district before the court. The
42-2 amount of the attorney's fees shall be fixed by the court.
42-3 Sec. 36.067. CONTRACTS. (a) A district shall contract, and
42-4 be contracted with, in the name of the district.
42-5 (b) A district may purchase property from any other
42-6 governmental entity by negotiated contract without the necessity of
42-7 securing appraisals or advertising for bids.
42-8 Sec. 36.068. EMPLOYEE BENEFITS. (a) The board may provide
42-9 for and administer a retirement, disability, and death compensation
42-10 funds for the employees of the district.
42-11 (b) The board may establish a public retirement system in
42-12 accordance with the provisions of Chapter 810, Government Code.
42-13 The board may also provide for a deferred compensation plan
42-14 described by Section 457 of the Internal Revenue Code of 1986 (26
42-15 U.S.C. Section 457).
42-16 (c) The board may include hospitalization and medical
42-17 benefits to its employees as part of the compensation currently
42-18 paid to the officers and employees and may adopt any plan, rule, or
42-19 regulation in connection with it and amend or change the plan,
42-20 rule, or regulation as it may determine.
42-21 (Sections 36.069-36.100 reserved for expansion
42-22 SUBCHAPTER D. POWERS AND DUTIES
42-23 Sec. 36.101. RULE-MAKING POWER. (a) A district may make and
42-24 enforce rules to provide for conserving, preserving, protecting,
42-25 and recharging of the groundwater or of a groundwater reservoir or
43-1 its subdivisions in order to control subsidence or prevent waste of
43-2 groundwater and to carry out the powers and duties provided by this
43-3 chapter.
43-4 (b) After notice and hearing, the board shall adopt and
43-5 enforce rules to implement this chapter, including rules governing
43-6 procedure before the board. Notice in this section shall include
43-7 publication of the agenda of the hearing in one or more newspapers
43-8 of general circulation in the county or counties in which the
43-9 district is located.
43-10 (c) The board shall compile its rules in a book and make
43-11 them available for use and inspection at the district's principle
43-12 office.
43-13 Sec. 36.102. ENFORCEMENT OF RULES. (a) A district may
43-14 enforce this chapter and its rules by injunction, mandatory
43-15 injunction, or other appropriate remedy in a court of competent
43-16 jurisdiction.
43-17 (b) The board may set reasonable civil penalties for breach
43-18 of any rule of the district that shall not exceed the jurisdiction
43-19 of a justice court as provided by Section 27.031, Government Code.
43-20 (c) A penalty under this section is in addition to any other
43-21 penalty provided by the law of this state and may be enforced by
43-22 complaints filed in the appropriate court of jurisdiction in the
43-23 county in which the district's principal office or meeting place is
43-24 located.
43-25 (d) If the district prevails in any suit to enforce its
44-1 rules, it may, in the same action, recover reasonable fees for
44-2 attorneys, expert witnesses, and other costs incurred by the
44-3 district before the court. The amount of the attorney's fees shall
44-4 be fixed by the court.
44-5 Sec. 36.103. IMPROVEMENTS AND FACILITIES. (a) A district
44-6 may build, acquire, or obtain by any lawful means any property
44-7 necessary for the district to carry out its purpose and the
44-8 provisions of this chapter.
44-9 (b) A district may:
44-10 (1) acquire land to erect dams or to drain lakes,
44-11 draws, and depressions;
44-12 (2) construct dams;
44-13 (3) drain lakes, depressions, draws, and creeks;
44-14 (4) install pumps and other equipment necessary to
44-15 recharge a groundwater reservoir or its subdivision; and
44-16 (5) provide necessary facilities for the purpose, sale
44-17 transportation, and distribution of water.
44-18 Sec. 36.104. PURCHASE, SALE, TRANSPORTATION, AND
44-19 DISTRIBUTION OF WATER. A district may purchase, sell, transport,
44-20 and distribute surface water or groundwater for any purpose.
44-21 Sec. 36.105. EMINENT DOMAIN. (a) A district may exercise
44-22 the power of eminent domain to acquire by condemnation a fee simple
44-23 or other interest in property if that property interest is
44-24 necessary to the exercise of the authority conferred by this
44-25 chapter.
45-1 (b) The power of eminent domain authorized in this section
45-2 may not be used for the condemnation of land for the purpose of
45-3 acquiring rights to groundwater, surface water or water rights.
45-4 (c) The district must exercise the power of eminent domain
45-5 in the manner provided by Chapter 21, Property Code, but the
45-6 district is not required to deposit a bond as provided by Section
45-7 21.021(a), Property Code.
45-8 (d) In a condemnation proceeding brought by a district, the
45-9 district is not required to pay in advance or give bond or other
45-10 security for costs in the trial court, to give bond for the
45-11 issuance of a temporary restraining order or a temporary
45-12 injunction, or to give bond for costs or supersedeas on an appeal
45-13 or writ of error.
45-14 (e) In exercising the power of eminent domain, if the
45-15 district requires relocating, raising, lowering, rerouting,
45-16 changing the grade, or altering the construction of any railroad,
45-17 highway, pipeline, or electric transmission or distribution,
45-18 telegraph, or telephone lines, conduits, poles, or facilities, the
45-19 district must bear the actual cost of relocating, raising,
45-20 lowering, rerouting, changing the grade, or altering the
45-21 construction to provide comparable replacement without enhancement
45-22 of facilities after deducting the net salvage value derived from
45-23 the old facility.
45-24 Sec. 36.106. ENGINEERING SURVEYS. A district may employ
45-25 registered professional engineers to make surveys of the
46-1 groundwater reservoir or subdivision and surveys of the facilities
46-2 for development, production, transportation, distribution, and use
46-3 of the water, in order to determine the quantity of water available
46-4 for production and use and to determine the improvements,
46-5 development, and recharging needed by a reservoir or its
46-6 subdivision.
46-7 Sec. 36.107. PLANNING. (a) Following notice and hearing,
46-8 the district shall develop a comprehensive management plan for the
46-9 most efficient use of the groundwater, for controlling and
46-10 preventing waste of groundwater, and for controlling and preventing
46-11 subsidence. The plan may be reviewed annually but must be reviewed
46-12 by the board at least once every five years.
46-13 (b) The district shall specify in the management plan, in as
46-14 much detail as possible, the acts, procedures, performance, and
46-15 avoidance that are or may be necessary to effect the plan,
46-16 including specifications and proposed rules. The district shall
46-17 adopt rules that are necessary to implement the management plan.
46-18 The district shall file a copy of the management plan and the rules
46-19 with the commission.
46-20 Sec. 36.108. RESEARCH PROJECTS. A district may carry out
46-21 any research projects deemed necessary by the board.
46-22 Sec. 36.109. COLLECTION OF INFORMATION. A district may
46-23 collect any information the board deems necessary, including
46-24 information regarding the use of groundwater, water conservation,
46-25 and the practicability of recharging a groundwater reservoir.
47-1 Sec. 36.110. PUBLICATION OF PLANS AND INFORMATION. A
47-2 district may publish its plans and the information it develops,
47-3 bring them to the attention of the users of groundwater in the
47-4 district, and encourage the users to adopt and use them.
47-5 Sec. 36.111. RECORDS AND REPORTS. The district shall
47-6 require that records be kept and reports be made of the drilling,
47-7 equipping, and completing of water wells and of the production and
47-8 use of groundwater.
47-9 Sec. 36.112. DRILLERS' LOGS. A district shall require that
47-10 accurate drillers' logs be kept of water wells and that copies of
47-11 drillers' logs and electric logs be filed with the district.
47-12 Sec. 36.113. PERMITS FOR WELLS. A district shall require
47-13 permits for the drilling, equipping, or completing of wells, or for
47-14 substantially altering the size of wells or well pumps. Permits
47-15 may be issued subject to the rules promulgated by the district and
47-16 subject to terms and provisions with reference to the drilling,
47-17 equipping, completion, or alteration of wells or pumps that may be
47-18 necessary to conserve the groundwater, prevent waste, minimize as
47-19 far as practicable the drawdown of the water table or the reduction
47-20 of artesian pressure, lessen interference between wells, or control
47-21 and prevent subsidence.
47-22 Sec. 36.114. PERMIT: APPLICATION AND HEARING. The district
47-23 shall promptly consider and pass on each application for a permit.
47-24 If, within 20 days after the date it is submitted, an application
47-25 has not been passed on or set for a hearing on a specific date, the
48-1 applicant may petition the district court of the county where the
48-2 land is located for a writ of mandamus to compel the district to
48-3 act on the application or set a date for a hearing on the
48-4 application. A hearing shall be held within 35 days after the
48-5 setting of the date and the district shall act on the application
48-6 within 35 days after the date of the hearing.
48-7 Sec. 36.115. DRILLING OR ALTERING A WELL WITHOUT PERMIT.
48-8 (a) No person, firm or corporation may drill a well without first
48-9 obtaining a permit from the district.
48-10 (b) No person, firm or corporation may alter the size of a
48-11 well or well pump such that it would bring that well under the
48-12 jurisdiction of the district without first obtaining a permit from
48-13 the district.
48-14 (c) No person, firm or corporation may operate a well
48-15 without first obtaining a permit from the district.
48-16 (d) A violation occurs on the first day the drilling,
48-17 alteration or operation begins and continues each day thereafter
48-18 until the appropriate permits are approved.
48-19 Sec. 36.116. REGULATION OF SPACING AND PRODUCTION. In order
48-20 to minimize as far as practicable the drawdown of the water table
48-21 or the reduction of artesian pressure, to control subsidence, or to
48-22 prevent waste, a district may provide for the spacing of water
48-23 wells and may regulate the production of wells.
48-24 Sec. 36.117. EXCEPTIONS; LIMITATIONS. (a) A district may
48-25 not require a permit for:
49-1 (1) drilling or producing from a well either drilled,
49-2 completed, or equipped so that it is incapable of producing more
49-3 than 25,000 gallons of groundwater a day;
49-4 (2) the drilling or alteration of the size of a well
49-5 or to restrict the production of a well if the water produced or to
49-6 be produced from the well is used or to be used to supply the
49-7 domestic needs of 10 or fewer households and a person who is a
49-8 member of each household is either the owner of the well, a person
49-9 related to the owner or a member of the owner's household within
49-10 the second degree by consanguinity, or an employee of the owner;
49-11 (3) the drilling or alteration of the size of a well
49-12 or to restrict the production from the well if the water produced
49-13 or to be produced from the well is used or to be used to provide
49-14 water for feeding livestock and poultry connected with farming,
49-15 ranching, or dairy enterprises;
49-16 (4) water wells to supply water for hydrocarbon
49-17 production activities, regardless of whether those wells are
49-18 producing, that are associated with any well permitted by the
49-19 Railroad Commission of Texas drilled before September 1, 1985; or
49-20 (5) jet wells used for domestic needs.
49-21 (b) The board shall adopt rules determining the
49-22 applicability of Subsection (a)(3) to facilities used primarily for
49-23 feeding livestock.
49-24 (c) The district shall not deny the owner of a tract of
49-25 land, or his lessee, who has no well equipped to produce more than
50-1 25,000 gallons a day on the tract, either a permit to drill a well
50-2 on his land or the privilege to produce groundwater from his land,
50-3 subject to the rules of the district.
50-4 (d) A district may not restrict the production of any well
50-5 equipped to produce 25,000 gallons or less a day.
50-6 (e) Nothing in this chapter applies to wells drilled for
50-7 oil, gas, sulphur, uranium, or brine, or for core tests, or for
50-8 injection of gas, salt water, or other fluid, or for any other
50-9 purpose, under permits issued by the Railroad Commission of Texas.
50-10 A district may not require a permit to drill a well to supply water
50-11 for drilling any of these wells permitted by the Railroad
50-12 Commission of Texas. Any well that ceases to be used for these
50-13 purposes and is then used as an ordinary water well is subject to
50-14 the rules of the district.
50-15 (f) Water wells exempted under this section shall be
50-16 equipped and maintained so as to conform to the district's rules
50-17 requiring installation of casing, pipe, and fittings to prevent the
50-18 escape of groundwater from a groundwater reservoir to any reservoir
50-19 not containing groundwater and to prevent the pollution or harmful
50-20 alteration of the character of the water in any groundwater
50-21 reservoir.
50-22 (g) A district shall require water wells exempted under this
50-23 section to be registered with the district. All exempt water wells
50-24 shall be equipped and maintained so as to conform to the district's
50-25 rules requiring installation of casing, pipe, and fittings to
51-1 prevent the escape of groundwater from a groundwater reservoir to
51-2 any reservoir not containing groundwater and to prevent the
51-3 pollution or harmful alteration of the character of the water in
51-4 any groundwater reservoir.
51-5 Sec. 36.118. OPEN OR UNCOVERED WELLS. (a) A district may
51-6 require the owner or lessee of land on which an open or uncovered
51-7 well is located to keep the well permanently closed or capped with
51-8 a covering capable of sustaining weight of at least 400 pounds,
51-9 except when the well is in actual use.
51-10 (b) As used in this section, "open or uncovered well" means
51-11 an artificial excavation dug or drilled for the purpose of
51-12 exploring for or producing water from the groundwater reservoir and
51-13 is not capped or covered as required by this chapter.
51-14 (c) If the owner or lessee fails or refuses to close or cap
51-15 the well in compliance with this chapter in accordance with
51-16 district rules, any person, firm, or corporation employed by the
51-17 district may go on the land and close or cap the well safely and
51-18 securely.
51-19 (d) Reasonable expenses incurred by the district in closing
51-20 or capping a well constitute a lien on the land on which the well
51-21 is located.
51-22 (e) The lien is perfected by filing in the deed records of
51-23 the county where the well is located an affidavit, executed by any
51-24 person conversant with the facts, stating the following:
51-25 (1) the existence of the well;
52-1 (2) the legal description of the property on which the
52-2 well is located;
52-3 (3) the approximate location of the well on the
52-4 property;
52-5 (4) the failure or refusal of the owner or lessee,
52-6 after notification, to close the well within 10 days after the
52-7 notification;
52-8 (5) the closing of the well by the district, or by an
52-9 authorized agent, representative, or employee of the district; and
52-10 (6) the expense incurred by the district in closing
52-11 the well.
52-12 (f) Nothing in this section affects the enforcement of
52-13 Subchapter A, Chapter 756, Health and Safety Code.
52-14 Sec. 36.119. ILLEGAL DRILLING AND OPERATION OF WELL; CITIZEN
52-15 SUIT. (a) Drilling a well without a required permit or operating
52-16 a well at a higher rate of production than the rate approved for
52-17 the well is declared to be illegal, wasteful per se, and a
52-18 nuisance.
52-19 (b) A person who has an estate in land adjacent to the land
52-20 on which the well is located, or a part that lies within one-half
52-21 mile of the well, may sue in a court of competent jurisdiction to
52-22 restrain or enjoin the illegal drilling or operation, or both. The
52-23 suit may be brought with or without the joinder of the district.
52-24 (c) The aggrieved party may also sue for damages for
52-25 injuries suffered by reason of the illegal operation and for other
53-1 relief to which they may be entitled. In a suit for damages, the
53-2 existence or operation of a well in violation of the rules of the
53-3 district is prima facie evidence of illegal drainage.
53-4 (d) The suit may be brought in the county where the illegal
53-5 well is located or in the county where all or part of the affected
53-6 land is located.
53-7 (e) The remedies provided by this section are cumulative of
53-8 other remedies available to the individual or the district.
53-9 (f) A suit brought under this section shall be advanced for
53-10 trial and determined as expeditiously as possible. The court shall
53-11 not grant a postponement or continuance, including a first motion,
53-12 except for reasons considered imperative by the court.
53-13 Sec. 36.120. INFORMATION. On request of the executive
53-14 director or the executive administrator, the district shall make
53-15 available information that it acquires concerning the groundwater
53-16 resources within its jurisdiction. The district shall also provide
53-17 information to the commission and Texas Water Development Board
53-18 concerning its plans and activities in conserving and protecting
53-19 groundwater resources. On request of a district, the executive
53-20 director and the executive administrator shall provide information
53-21 they acquire concerning the groundwater resources within the
53-22 district's jurisdiction.
53-23 Sec. 36.121. LIMITATION ON RULE-MAKING POWER OF DISTRICTS
53-24 OVER WELLS IN CERTAIN COUNTIES. Except as provided by Section
53-25 36.117, a district that is created under this chapter on or after
54-1 September 1, 1991, shall exempt from regulation under this chapter
54-2 a well and any water produced or to be produced by a well that is
54-3 located in a county that has a population of 14,000 or less if the
54-4 water is to be used solely to supply a municipality that has a
54-5 population of 115,000 or less and the rights to the water produced
54-6 from the well are owned by a political subdivision that is not a
54-7 municipality, or by a municipality that has a population of 93,000
54-8 or less, and that purchased, owned, or held rights to the water
54-9 before the date on which the district was created, regardless of
54-10 the date the well is drilled or the water is produced. The
54-11 district may not prohibit the political subdivision or municipality
54-12 from transporting produced water inside or outside the district's
54-13 boundaries.
54-14 (Sections 36.122-36.150 reserved for expansion
54-15 SUBCHAPTER E. DISTRICT FINANCES
54-16 Sec. 36.151. EXPENDITURES. (a) A district's money may be
54-17 disbursed only by check, draft, order, or other instrument.
54-18 (b) Disbursements shall be signed by at least two directors,
54-19 except the board may by resolution allow certain employees of the
54-20 district, or a combination of employees and directors, to sign
54-21 disbursements on behalf of the board.
54-22 (c) The board may by resolution allow disbursements to be
54-23 transferred by federal reserve wire system to accounts in the name
54-24 of the district.
54-25 Sec. 36.152. FISCAL YEAR. (a) The district shall be
55-1 operated on the basis of a fiscal year established by the board.
55-2 (b) The fiscal year may not be changed during a period in
55-3 which revenue bonds of the district are outstanding or more than
55-4 once in a 24-month period.
55-5 Sec. 36.153. ANNUAL AUDIT. (a) Annually, the board shall
55-6 have an audit made of the financial condition of the district.
55-7 (b) The annual audit and other district records must be open
55-8 to inspection during regular business hours at the principal office
55-9 of the district.
55-10 Sec. 36.154. ANNUAL BUDGET. (a) The board shall prepare
55-11 and approve an annual budget.
55-12 (b) The budget shall contain a complete financial statement,
55-13 including a statement of:
55-14 (1) the outstanding obligations of the district;
55-15 (2) the amount of cash on hand to the credit of each
55-16 fund of the district;
55-17 (3) the amount of money received by the district from
55-18 all sources during the previous year;
55-19 (4) the amount of money available to the district from
55-20 all sources during the ensuing year;
55-21 (5) the amount of the balances expected at the end of
55-22 the year in which the budget is being prepared;
55-23 (6) the estimated amount of revenues and balances
55-24 available to cover the proposal budget; and
55-25 (7) the estimated tax rate or fee revenues that will
56-1 be required.
56-2 (c) The annual budget may be amended on the board's
56-3 approval.
56-4 Sec. 36.155. DEPOSITORY. (a) The board shall name one or
56-5 more banks to serve as depository for the district funds.
56-6 (b) District funds, other than those transmitted to a bank
56-7 for payment of bonds issued by the district, shall be deposited as
56-8 received with the depository bank and shall remain on deposit.
56-9 This subsection does not limit the power of the board to place a
56-10 portion of the district's funds on time deposit or to purchase
56-11 certificates of deposit.
56-12 (c) To the extent that funds in the depository are not
56-13 insured by the Federal Deposit Insurance Corporation, they shall be
56-14 secured in the manner provided by law for the security of funds by
56-15 the Public Funds Collateral Act, Chapter 2257, Government Code.
56-16 Sec. 36.156. INVESTMENTS. (a) Funds of the district may be
56-17 invested and reinvested in accordance with the provisions of the
56-18 Public Funds Investment Act, Chapter 2256, Government Code.
56-19 (b) The board, by resolution, may provide that an authorized
56-20 representative of the district may invest and reinvest the funds of
56-21 the district and provide for money to be withdrawn from the
56-22 appropriate accounts of the district for investments on such terms
56-23 as the board considers advisable.
56-24 Sec. 36.157. REPAYMENT OF ORGANIZATIONAL EXPENSES. (a) A
56-25 district may pay all costs and expenses necessarily incurred in the
57-1 creation and organization of a district, including legal fees and
57-2 other incidental expenses, and may reimburse any person for money
57-3 advanced for these purposes.
57-4 (b) Payments may be made from money obtained from the sale
57-5 of bonds first issued by the district or out of maintenance taxes
57-6 or other revenues of the district.
57-7 Sec. 36.158. GRANTS. A district may make or accept grants,
57-8 gratuities, advances, or loans in any form to or from any source
57-9 approved by the board, including any governmental entity, and may
57-10 enter into contracts, agreements, and covenants in connection with
57-11 grants, gratuities, advances or loans that the board considers
57-12 appropriate.
57-13 (Sections 36.159-36.170 reserved for expansion
57-14 SUBCHAPTER F. BONDS AND NOTES
57-15 Sec. 36.171. ISSUANCE OF BONDS AND NOTES. (a) The board may
57-16 issue and sell bonds and notes in the name of the district for any
57-17 lawful purpose of the district. A district may not issue bonds
57-18 unless the commission determines that the project to be financed by
57-19 the bonds is feasible and issues an order approving the issuance of
57-20 the bonds. This section does not apply to refunding bonds.
57-21 (b) A district may submit to the commission a written
57-22 application for investigation of feasibility. An engineer's report
57-23 describing the project, including the data, profiles, maps, plans,
57-24 and specifications prepared in connection with the report, must be
57-25 submitted with the application.
58-1 (c) The executive director shall examine the application and
58-2 the report and shall inspect the project area. The district shall,
58-3 on request, supply the executive director with additional data and
58-4 information necessary for an investigation of the application, the
58-5 engineer's report, and the project.
58-6 (d) The executive director shall prepare a written report on
58-7 the project and include suggestions, if any, for changes or
58-8 improvements in the project. The executive director shall retain a
58-9 copy of the report and send a copy of the report to both the
58-10 commission and the district.
58-11 (e) The commission shall consider the application, the
58-12 engineer's report, the executive director's report, and any other
58-13 evidence allowed by commission rule to be considered in determining
58-14 the feasibility of the project.
58-15 (f) The commission shall determine whether the project to be
58-16 financed by the bonds is feasible and issue an order either
58-17 approving or disapproving, as appropriate, the issuance of the
58-18 bonds. The commission shall retain a copy of the order and send a
58-19 copy of the order to the district.
58-20 (g) Notwithstanding any provision of this code to the
58-21 contrary, the commission may approve the issuance of bonds of a
58-22 district without the submission of plans and specifications of the
58-23 improvements to be financed with the bonds. The commission may
58-24 condition the approval on any terms or conditions considered
58-25 appropriate by the commission.
59-1 Sec. 36.172. MANNER OF REPAYMENT OF BONDS AND NOTES. The
59-2 board may provide for the payment of principal of and interest on
59-3 the bonds and notes in any one of the following manners:
59-4 (1) from the levy and collection of ad valorem taxes
59-5 on taxable property within the district;
59-6 (2) from fees;
59-7 (3) by pledging all or any part of the designated
59-8 revenues from the ownership or operation of the district's works,
59-9 improvements, and facilities and from the sale, transportation, and
59-10 distribution of water; or
59-11 (4) from any combination of these sources.
59-12 Sec. 36.173. ADDITIONAL SECURITY FOR BONDS AND NOTES.
59-13 (a) The bonds and notes may be additionally secured by a deed of
59-14 trust or mortgage lien on part or all of the physical properties of
59-15 the district and rights appurtenant to those properties, vesting in
59-16 the trustee power to sell the properties for payment of the
59-17 indebtedness, power to operate the properties, and all other powers
59-18 necessary for the further security of the bonds and notes.
59-19 (b) The trust indenture, regardless of the existence of the
59-20 deed trust or mortgage lien on the properties, may contain
59-21 provisions established by the board for the security of the bonds
59-22 and notes and the preservation of the trust estate, may make
59-23 provisions for amendment or modification, and may make provisions
59-24 for investment of funds of the district.
59-25 (c) A purchaser under a sale under the deed trust or
60-1 mortgage lien shall be absolute owner of the properties and rights
60-2 purchased and may maintain and operate them.
60-3 Sec. 36.174. FORM OF BONDS OR NOTES. (a) A district may
60-4 issue its bonds or notes in various series or issues.
60-5 (b) Bonds or notes may mature serially or otherwise not more
60-6 than 50 years from their date and shall bear interest at any rate
60-7 permitted by the constitution and laws of this state.
60-8 (c) A district's bonds, notes and interest coupons, if any,
60-9 are investment securities under the terms of Chapter 8 of the
60-10 Business & Commerce Code, and may be issued registrable as to
60-11 principal or as to both principal and interest and may be made
60-12 redeemable before maturity, at the option of the district, or may
60-13 contain a mandatory redemption provision.
60-14 (d) A district's bonds and notes may be issued in the form,
60-15 denominations, and manner and under the terms, conditions, and
60-16 details, and shall be signed and executed as provided by the board
60-17 in the resolution or order authorizing their issuance.
60-18 Sec. 36.175. PROVISIONS OF BONDS AND NOTES. (a) In the
60-19 orders or resolutions authorizing the issuance of bonds or notes,
60-20 including refunding bonds, the board may provide for the flow of
60-21 funds, the establishment and maintenance of the interest and
60-22 sinking fund, the reserve fund, and other funds. The board may
60-23 make additional covenants with respect to bonds or notes, pledged
60-24 revenues, and the operation and maintenance of those works,
60-25 improvements, and facilities, of which the revenue is pledged.
61-1 (b) The orders or resolutions of the board authorizing the
61-2 issuance of bonds or notes may also prohibit the further issuance
61-3 of bonds, notes, or other obligations payable from the pledged
61-4 revenue or may reserve the right to issue additional bonds or notes
61-5 to be secured by a pledge of and payable from the revenue on a
61-6 parity with or subordinate to the lien and pledge in support of the
61-7 bonds or notes being issued.
61-8 (c) The orders or resolutions of the board issuing bonds or
61-9 notes may contain other provisions and covenants as the board may
61-10 determine.
61-11 (d) The board may adopt and have executed any other
61-12 proceeding or instruments necessary and convenient in the issuance
61-13 of bonds or notes.
61-14 Sec. 36.176. REFUNDING BONDS. (a) A district may issue
61-15 bonds to refund all or any part of its outstanding bonds or notes,
61-16 including matured but unpaid interest coupons.
61-17 (b) Refunding bonds shall mature serially or otherwise not
61-18 more than 50 years from their date and shall bear interest at any
61-19 rate or rates permitted by the constitution and laws of the state.
61-20 (c) Refunding bonds may be payable from the same source as
61-21 the bonds or notes being refunded or from other additional sources.
61-22 (d) The refunding bonds must be approved by the attorney
61-23 general as in the case of other bonds or notes and shall be
61-24 registered by the comptroller on the surrender and cancellation of
61-25 the bonds or notes being refunded.
62-1 (e) The orders or resolutions authorizing the issuance of
62-2 the refunding bonds may provide that they be sold and the proceeds
62-3 deposited in the place or places at which the bonds or notes being
62-4 refunded are payable, in which case the refunding bonds may be
62-5 issued before the cancellation of the bonds or notes being
62-6 refunded. If refunding bonds are issued before cancellation of the
62-7 other bonds or notes, an amount sufficient to pay the principal of
62-8 and interest on the bonds or notes being refunded to their maturity
62-9 dates, or to their option dates if the bonds or notes have been
62-10 duly called for payment prior to maturity according to their terms,
62-11 shall be deposited in the place or places at which the bonds or
62-12 notes being refunded are payable. The comptroller shall register
62-13 the refunding bonds without the surrender and cancellation of bonds
62-14 or notes being refunded.
62-15 (f) A refunding may be accomplished in one or in several
62-16 installment deliveries. Refunding bonds and their interest coupons
62-17 are investment securities under Chapter 8 of the Business &
62-18 Commerce Code.
62-19 (g) In lieu of the method set forth in Subsection (a)-(f), a
62-20 district may refund bonds, notes, or other obligations as provided
62-21 by the general laws of the state.
62-22 Sec. 36.177. BONDS AND NOTES AS INVESTMENTS. District bonds
62-23 and notes are legal and authorized investments for:
62-24 (1) banks;
62-25 (2) savings banks;
63-1 (3) trust companies;
63-2 (4) savings and loan associations;
63-3 (5) insurance companies;
63-4 (6) fiduciaries;
63-5 (7) trustees;
63-6 (8) guardians; and
63-7 (9) sinking funds of cities, counties, school
63-8 districts, and other political subdivisions of the state and other
63-9 public funds of the state and its agencies, including the permanent
63-10 school fund.
63-11 Sec. 36.178. BONDS AND NOTES AS SECURITY FOR DEPOSITS.
63-12 District bonds and notes are eligible to secure deposits of public
63-13 funds of the state and cities, counties, school districts, and
63-14 other political subdivisions of the state. The bonds or notes are
63-15 lawful and sufficient security for deposits to the extent of their
63-16 value when accompanied by all unmatured coupons.
63-17 Sec. 36.179. TAX STATUS OF BONDS AND NOTES. Since a
63-18 district governed by chapter this chapter is a public entity
63-19 performing an essential public function, bonds and notes issued by
63-20 the district, any transaction relating to the bonds and notes, and
63-21 profits made in the sale of the bonds and notes, are free from
63-22 taxation by the state or by any city, county, special district, or
63-23 other political subdivision of the state.
63-24 Sec. 36.180. ELECTION. (a) Bonds or notes secured in whole
63-25 or in part by taxes may not be issued by the district until
64-1 authorized by a majority vote of the qualified voters of the
64-2 district at an election called for that purpose.
64-3 (b) The board may order an election, and the order calling
64-4 the election shall state the nature and the date of the election,
64-5 the hours during which the polls will be open, the location of the
64-6 polling places, the amount of bonds or notes to be authorized, and
64-7 the maximum maturity of the bonds or notes.
64-8 (c) At an election to authorize bonds or notes payable
64-9 wholly from ad valorem taxes, the ballots must be printed to
64-10 provide for voting for or against the proposition: "The issuance
64-11 of (bonds or notes) and the levy of taxes for payment of the (bonds
64-12 or notes)." At any election to authorize bonds or notes payable
64-13 from both ad valorem taxes and revenues, the ballots must be
64-14 printed to provide for voting for or against: "The issuance of
64-15 (bonds or notes) and the pledge of net revenues and the levy of ad
64-16 valorem taxes adequate to provide for the payment of the (bonds or
64-17 notes)."
64-18 (d) The board shall canvass the returns and declare the
64-19 results of the election. If a majority of the votes cast at the
64-20 election favor the issuance of the bonds or notes, the bonds or
64-21 notes may be issued by the board, but if a majority of the votes
64-22 cast at the election do not favor issuance of the bonds or notes,
64-23 the bonds or notes may not be issued.
64-24 Sec. 36.181. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
64-25 COMPTROLLER. (a) Bonds and notes issued by a district must be
65-1 submitted to the attorney general for examination.
65-2 (b) If the attorney general finds that the bonds or notes
65-3 have been authorized in accordance with law, he shall approve them,
65-4 and they shall be registered by the comptroller.
65-5 (c) After the approval and registration of bonds or notes,
65-6 the bonds or notes are incontestable in any court or other forum,
65-7 for any reason, and are valid and binding obligations in accordance
65-8 with their terms for all purposes.
65-9 (Sections 36.182-36.200 reserved for expansion
65-10 SUBCHAPTER G. DISTRICT REVENUES
65-11 Sec. 36.201. LEVY OF TAXES. (a) The board may annually levy
65-12 taxes to pay the bonds issued by the district that are payable in
65-13 whole or in part by taxes.
65-14 (b) the board may annually levy taxes to pay the maintenance
65-15 and operating expenses of the district at a rate not to exceed 50
65-16 cents on each $100 of assessed valuation.
65-17 Sec. 36.202. BOARD AUTHORITY. (a) The board may levy taxes
65-18 for the entire year in which the district is created.
65-19 (b) If territory is added to or annexed by the district, the
65-20 board may levy taxes in the new territory for the entire year in
65-21 which the territory is added or annexed.
65-22 (c) The board shall levy taxes on all property in the
65-23 district subject to district taxation.
65-24 Sec. 36.203. TAX RATE. In setting the tax rate, the board
65-25 shall take into consideration the income of the district from
66-1 sources other than taxation. On determination of the amount of tax
66-2 required to be levied, the board shall make the levy and certify it
66-3 to the tax assessor-collector.
66-4 Sec. 36.204. TAX APPRAISAL, ASSESSMENT AND COLLECTION.
66-5 (a) The Tax Code governs the appraisal, assessment, and collection
66-6 of district taxes.
66-7 (b) The board may provide for the appointment of a tax
66-8 assessor-collector for the district or may contract for the
66-9 assessment and collection of taxes as provided by the Tax Code.
66-10 Sec. 36.205. AUTHORITY TO SET FEES. (a) A district may set
66-11 fees for administrative acts of the district, such as filing
66-12 applications. Fees set by a district may not unreasonably exceed
66-13 the cost to the district of performing the administrative function
66-14 for which the fee is charged.
66-15 (b) A district shall set and collect fees for all services
66-16 provided outside the boundaries of the district.
66-17 (Sections 36.206-36.250 reserved for expansion
66-18 SUBCHAPTER H. JUDICIAL REVIEW
66-19 Sec. 36.251. SUIT AGAINST DISTRICT. A person, firm,
66-20 corporation, or association of persons affected by and dissatisfied
66-21 with any provision or with any rule or order made by a district is
66-22 entitled to file a suit against the district or its directors to
66-23 challenge the validity of the law, rule, or order. The suit shall
66-24 be filed in a court of competent jurisdiction in any county in
66-25 which the district or any part of the district is located.
67-1 Sec. 36.252. SUIT TO BE EXPEDITED. A suit brought under
67-2 this subchapter shall be advanced for trial and determined as
67-3 expeditiously as possible. No postponement or continuance shall be
67-4 granted except for reasons considered imperative by the court.
67-5 Sec. 36.253. TRIAL OF SUIT. The burden of proof is on the
67-6 petitioner, and the challenged law, rule, order, or act shall be
67-7 deemed prima facie valid. The review on appeal is governed by the
67-8 substantial evidence rule as defined by Section 2001.174,
67-9 Government Code.
67-10 Sec. 36.254. SUBCHAPTER CUMULATIVE. The provisions of this
67-11 subchapter do not affect other legal or equitable remedies that may
67-12 be available.
67-13 (Sections 36.255-36.300 reserved for expansion
67-14 SUBCHAPTER I. DISSOLUTION OF DISTRICT
67-15 Sec. 36.301. DISSOLUTION. (a) After notice and hearing, the
67-16 commission may dissolve a district that:
67-17 (1) has been inactive for a period of three
67-18 consecutive years; and
67-19 (2) has no outstanding bonded indebtedness.
67-20 (b) A district composed of territory entirely within one
67-21 county may be dissolved even if it has outstanding indebtedness
67-22 that matures after the year in which the district is dissolved,
67-23 whereupon the commissioners court shall levy and collect taxes on
67-24 all taxable property in the district in an amount sufficient to pay
67-25 the principal of and interest on the indebtedness when due. The
68-1 taxes shall be levied and collected in the same manner as county
68-2 taxes.
68-3 (c) A district is considered active if:
68-4 (1) the district has a board as required by Subchapter
68-5 D;
68-6 (2) the board holds regularly scheduled meetings and
68-7 has on file minutes of its meetings;
68-8 (3) the district has developed and filed with the
68-9 commission a management plan for the district;
68-10 (4) the district has copies of drillers' logs on file;
68-11 (5) the district has on file well permits issued by
68-12 the district; and
68-13 (6) the district has on file annual district audits.
68-14 Sec. 36.302. NOTICE OF HEARING. (a) The commission shall
68-15 give notice of the dissolution hearing which briefly describes the
68-16 reasons for the proceeding.
68-17 (b) The notice shall be published once each week for two
68-18 consecutive weeks before the day of hearing in some newspaper
68-19 having general circulation in the county or counties in which the
68-20 district is located. The first publication shall be 30 days before
68-21 the day of the hearing.
68-22 (c) The commission shall give notice of the hearing by first
68-23 class mail addressed to the directors of the district according to
68-24 the last record on file with the executive director.
68-25 Sec. 36.303. INVESTIGATION. The executive director shall
69-1 investigate the facts and circumstances of the district to be
69-2 dissolved and the result of the investigation shall be included in
69-3 a written report.
69-4 Sec. 36.304. ORDER OF DISSOLUTION. The commission may enter
69-5 an order dissolving the district at the conclusion of the hearing
69-6 if it finds that the district has performed none of the functions
69-7 for which it was created for a period of five consecutive years
69-8 before the day of the proceeding and that the district has no
69-9 outstanding bonded indebtedness.
69-10 Sec. 36.305. CERTIFIED COPY OF ORDER. The commission shall
69-11 file a certified copy of the order of dissolution of the district
69-12 in the deed records of the county or counties in which the district
69-13 is located. If the district was created by a special Act of the
69-14 legislature, the commission shall file a certified copy of the
69-15 order of dissolution with the secretary of state.
69-16 Sec. 36.306. APPEALS. (a) Appeals from a commission order
69-17 dissolving a district shall be filed and heard in the district
69-18 court of any of the counties in which the land is located.
69-19 (b) The trial on appeal shall be de novo and the substantial
69-20 evidence rule shall not apply.
69-21 Sec. 36.307. ASSETS ESCHEAT TO STATE. Upon the dissolution
69-22 of a district by the commission, all assets of the district shall
69-23 escheat to the State of Texas. The assets shall be administered by
69-24 the state treasurer and shall be disposed of in the manner provided
69-25 by Chapter 72, Property Code.
70-1 (Sections 36.308-36.320 reserved for expansion
70-2 SUBCHAPTER J. ADDING TERRITORY TO DISTRICT
70-3 Sec. 36.321. ADDING LAND BY PETITION OF LANDOWNER. The owner
70-4 of land contiguous to a district may file with the board a
70-5 notarized petition requesting that the owner's land be included in
70-6 the district. The petition must describe the land by legal
70-7 description or by metes and bounds or by lot and block number if
70-8 there is a recorded plat of the area to be included in the
70-9 district.
70-10 Sec. 36.322. ASSUMPTION OF BONDS. If the district has
70-11 bonds, notes, or other obligations outstanding or bonds payable in
70-12 whole or in part from taxation that have been voted but are
70-13 unissued, the petitioner shall assume its share of the outstanding
70-14 bonds, notes, or other obligations and any voted but unissued tax
70-15 bonds of the district, and the property shall be assessed an ad
70-16 valorem tax at the same rate as that set for the existing district
70-17 to pay for outstanding bonds and for the maintenance and operation
70-18 of the district.
70-19 Sec. 36.323. HEARING AND DETERMINATION OF PETITION.
70-20 (a) The board shall hear and consider the petition and may add to
70-21 the district the land described in the petition if it is considered
70-22 to be to the advantage of the petitioner and to the existing
70-23 district.
70-24 (b) If the district has bonds payable in whole or in part
70-25 from taxation that are voted but unissued at the time of the
71-1 annexation, the board may issue the voted but unissued bonds even
71-2 though the boundaries of the district have been altered since the
71-3 authorization of the bonds.
71-4 Sec. 36.324. RECORDING PETITION. A petition that is granted
71-5 which adds land to the district shall be recorded in the office of
71-6 the county clerk of the county or counties in which the land is
71-7 located and the county or counties in which the existing district's
71-8 principal office is located.
71-9 Sec. 36.325. ADDING CERTAIN TERRITORY BY PETITION.
71-10 (a) Landowners of a defined area of territory not already in a
71-11 district may file with any district a petition requesting inclusion
71-12 in that district.
71-13 (b) The petition must be signed by:
71-14 (1) a majority of the landowners in the territory;
71-15 (2) at least 50 landowners if the number of landowners
71-16 is more than 50; or
71-17 (3) the commissioners court of the county in which the
71-18 area is located if the area is identified as a critical area or
71-19 includes the entire county.
71-20 (c) The petition must describe the land by legal description
71-21 or by metes and bounds or by lot and block number if there is a
71-22 recorded plat of the area to be included in the district.
71-23 Sec. 36.326. HEARING ON PETITION. The board by order shall
71-24 set the time and place of separate hearings on the petition to
71-25 include the territory in the district. At least one hearing shall
72-1 be held in the existing district and one hearing shall be held in
72-2 the territory to be added.
72-3 Sec. 36.327. RESOLUTION TO ADD TERRITORY. If the board
72-4 finds after the hearing on the petition that the addition of the
72-5 land would benefit the district and the territory to be added, it
72-6 may add the territory to the district by resolution. The board
72-7 does not have to include all the territory described in the
72-8 petition if it finds that a modification or change is necessary or
72-9 desirable.
72-10 Sec. 36.328. ELECTION TO RATIFY ANNEXATION OF LAND.
72-11 (a) Annexation of the territory is not final until ratified by a
72-12 majority vote of the voters in the territory to be added. An
72-13 election in the existing district accepting the addition of land is
72-14 not required.
72-15 (b) The ballots for the election shall be printed to provide
72-16 for voting for or against the proposition: "The inclusion of
72-17 (briefly describe additional area) in the __________ District." If
72-18 the district levies a property tax for payment of its maintenance
72-19 and operating expenses, the proposition shall include the following
72-20 language: "and the levy of a tax on property at a rate not to
72-21 exceed _____ cents on each $100 of assessed valuation for payment
72-22 of maintenance and operating expenses of the district."
72-23 (c) The amount of the tax included in the proposition shall
72-24 be the maximum amount that the district is authorized to levy. If
72-25 the district has outstanding or authorized bonded indebtedness, the
73-1 proposition shall include language providing for the assumption by
73-2 the additional area of a proportional share of the bonded
73-3 indebtedness of the district.
73-4 Sec. 36.329. NOTICE AND PROCEDURE OF ELECTION. The notice
73-5 of the election, the manner and the time of giving the notice, the
73-6 manner of holding the election, and qualifications of the voters
73-7 are governed by the Election Code.
73-8 Sec. 36.330. LIABILITY OF ADDED TERRITORY. The added
73-9 territory shall bear its pro rata share of indebtedness or taxes
73-10 that may be owed, contracted, or authorized by the district to
73-11 which it is added.
73-12 Sec. 36.331. ANNEXATION OF NONCONTIGUOUS TERRITORY. Land
73-13 not contiguous to the existing boundaries of a district may not be
73-14 added to or annexed to a district unless the land is located either
73-15 within the same management area, critical area, or a groundwater
73-16 subdivision designated by the commission or its predecessors.
73-17 (Sections 36.332-36.350 reserved for expansion
73-18 SUBCHAPTER K. CONSOLIDATION OF DISTRICTS
73-19 Sec. 36.351. CONSOLIDATION OF DISTRICTS. (a) Two or more
73-20 districts may consolidate into one district.
73-21 (b) Adjacent districts may consolidate portions of either
73-22 district if one district relinquishes land within that district to
73-23 the jurisdiction of the other district.
73-24 (c) A consolidation under this subchapter occurs if the
73-25 board of each involved district adopts a resolution containing the
74-1 terms and conditions of the consolidation.
74-2 Sec. 36.352. TERMS AND CONDITIONS OF CONSOLIDATION.
74-3 (a) The terms and conditions for consolidation shall include:
74-4 (1) adoption of a name for the district;
74-5 (2) the number and apportionment of directors to serve
74-6 on the board;
74-7 (3) the effective date of the consolidation;
74-8 (4) an agreement on finances for the consolidated
74-9 district, including disposition of funds, property, and other
74-10 assets of each district;
74-11 (5) transfer of all permits issued in the area that is
74-12 the subject of the consolidation to the consolidated district; and
74-13 (6) an agreement on governing the districts during the
74-14 transition period, including selection of officers.
74-15 (b) The terms and conditions for consolidation may include:
74-16 (1) assumption by each district of the other
74-17 district's bonds, notes, voted but unissued bonds, or other
74-18 obligations;
74-19 (2) an agreement to levy taxes to pay for bonds;
74-20 (3) any other terms of conditions agreed upon by the
74-21 board of each district.
74-22 Sec. 36.353. NOTICE AND HEARING ON CONSOLIDATION. (a) Each
74-23 board shall publish notice and hold a public hearing within that
74-24 district on the terms and conditions for consolidation of the
74-25 districts.
75-1 (b) After the hearing, the board may, by resolution, approve
75-2 the terms and conditions for consolidation and enter an order
75-3 consolidating the districts.
75-4 Sec. 36.354. ELECTIONS TO APPROVE CONSOLIDATION. (a) An
75-5 election to ratify the consolidation is required unless the
75-6 districts to be consolidated meet the following requirements:
75-7 (1) the districts have not authorized or issued bonds
75-8 and do not levy or assess taxes; or
75-9 (2) the consolidation would not result in any
75-10 additional taxing or bonding authority for any of the districts,
75-11 and would not require any district to contribute to the debt
75-12 payments of any other district.
75-13 (b) The board shall order an election in each district to be
75-14 consolidated only after the board of each district has agreed on
75-15 the terms and conditions of consolidation. The directors of each
75-16 district shall order the election to be held on the same day in
75-17 each district. The election shall be held and notice given in the
75-18 manner provided by the Election Code.
75-19 (c) The ballots for the election shall be printed to provide
75-20 for voting for or against the proposition: "The consolidation of
75-21 (names of the districts to be consolidated) in the __________
75-22 District." If the district levies a property tax for payment of
75-23 its bonded indebtedness, the proposition shall include the
75-24 following language: "and the levy of a tax on property at a rate
75-25 not to exceed _____ cents on each $100 of assessed valuation for
76-1 payment of bonds." If the district levies a property tax for
76-2 payment of its maintenance and operating expenses, the proposition
76-3 shall include the following language: "and the levy of a tax on
76-4 property at a rate not to exceed _____ cents on each $100 of
76-5 assessed valuation for payment of maintenance and operating
76-6 expenses of the district."
76-7 (d) A district may be consolidated only if a majority of the
76-8 electors in each district vote in favor of the consolidation. If
76-9 more than two districts are consolidating, failure of any one
76-10 district to ratify the consolidation shall not prevent the
76-11 consolidation of the other districts.
76-12 Sec. 36.355. GOVERNING CONSOLIDATED DISTRICTS. (a) After
76-13 two or more districts are consolidated, they become one district
76-14 and are governed as one district.
76-15 (b) During the transition period, the officers of each
76-16 district shall continue to act jointly as officers of the original
76-17 districts to settle the affairs of their respective districts.
76-18 (c) If the consolidated district elects directors, directors
76-19 for the consolidated district shall be elected in the same manner
76-20 and for the same term as directors elected at a confirmation
76-21 election. The directors election shall be set for the next regular
76-22 election.
76-23 Sec. 36.356. DEBTS OF ORIGINAL DISTRICTS. (a) After two or
76-24 more districts are consolidated, the consolidated district shall
76-25 protect the debts of the original districts and shall assure that
77-1 the debts are not impaired. If the consolidated district has
77-2 taxing authority, the debts may be paid by taxes levied on the land
77-3 in the original districts as if they had not consolidated or from
77-4 contributions from the consolidated district on terms stated in the
77-5 consolidation agreement.
77-6 (b) If the consolidated district has taxing authority and
77-7 assumes the bonds, notes, and other obligations of the original
77-8 districts, taxes may be levied uniformly on all taxable property
77-9 within the consolidated district to pay the debts.
77-10 Sec. 36.357. ASSESSMENT AND COLLECTION OF TAXES. If the
77-11 consolidated district has taxing authority, the district shall
77-12 assess and collect taxes on property on all property in the
77-13 district for maintenance and operation of the district.
77-14 Sec. 36.358. VOTED BUT UNISSUED BONDS. If either district
77-15 has voted but unissued bonds payable in whole or in part from
77-16 taxation assumed by the consolidated district, the consolidated
77-17 district may issue the voted but unissued bonds in the name of the
77-18 consolidated district and levy a uniform tax on all taxable
77-19 property in the consolidated district to pay for the bonds.
77-20 Sec. 36.359. FILING OF ORDER WITH COUNTY CLERK AND EXECUTIVE
77-21 DIRECTOR. A consolidation order issued by the board shall be kept
77-22 in the records of the consolidated district, recorded in the office
77-23 of the county clerk in each of the counties in the consolidated
77-24 district, and filed with the executive director.
77-25 SECTION 3. Section 151.003(b), Water Code, is amended to
78-1 read as follows:
78-2 (b) Except as provided in this subsection, an adjoining
78-3 county may be added to the district on application of the
78-4 commissioners court of the adjoining county and by complying with
78-5 the procedures provided in Subchapter K, Chapter 36 <Sections
78-6 55.730-55.744 of this code, to the extent those provisions are
78-7 applicable>. Any county added under this subchapter is subject to
78-8 the jurisdiction of the board and this chapter, and two members
78-9 shall be added to the board. One shall be chosen by the
78-10 commissioners court of the county added to the district and one
78-11 shall be chosen by the mayor of the city that has the largest
78-12 population in the county that is added. The two new members shall
78-13 draw lots to establish staggered terms of office.
78-14 SECTION 4. Section 151.005(a), Water Code, is amended to
78-15 read as follows:
78-16 (a) The district has all of the rights, powers, privileges,
78-17 authority, functions, and duties provided by the general law of
78-18 this state, including Chapter 36 <Chapters 50 and 52 of this code>,
78-19 applicable to groundwater <underground water> conservation
78-20 districts created under Article XVI, Section 59, of the Texas
78-21 Constitution.
78-22 SECTION 5. Section 151.005(c), Water Code, is amended to
78-23 read as follows:
78-24 (c) Sections 36.104, 36.114, 36.117, 36.201, 36.202, 36.203,
78-25 and 36.204 <52.1511, 52.156, 52.167, 52.168, 52.170, and 52.173 of
79-1 this code> and Subchapter I, Chapter 36 <Subchapters B, C, H, I, J,
79-2 and K of Chapter 52 of this code> do not apply to the district.
79-3 SECTION 6. Chapter 52, Water Code, is repealed.
79-4 SECTION 7. The importance of this legislation and the
79-5 crowded condition of the calendars in both houses create an
79-6 emergency and an imperative public necessity that the
79-7 constitutional rule requiring bills to be read on three several
79-8 days in each house be suspended, and this rule is hereby suspended.