76R10705 E By Cook, et al. H.B. No. 2237 Substitute the following for H.B. No. 2237: By Counts C.S.H.B. No. 2237 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation, administration, powers, duties, 1-3 operation, and financing of the Lost Pines Groundwater Conservation 1-4 District. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. CREATION. (a) A groundwater conservation 1-7 district, to be known as the Lost Pines Groundwater Conservation 1-8 District, is created in Bastrop and Lee counties subject to a 1-9 confirmation election held as provided by Section 8 of this Act. 1-10 The district is a governmental agency and a body politic and 1-11 corporate. 1-12 (b) The district is created under and is essential to 1-13 accomplish the purposes of Section 59, Article XVI, Texas 1-14 Constitution. 1-15 SECTION 2. DEFINITION. In this Act, "district" means the 1-16 Lost Pines Groundwater Conservation District. 1-17 SECTION 3. BOUNDARIES. Subject to Section 8(d) of this Act, 1-18 the boundaries of the district are coextensive with the boundaries 1-19 of Bastrop and Lee counties. 1-20 SECTION 4. FINDING OF BENEFIT. All of the land and other 1-21 property included within the boundaries of the district will be 1-22 benefited by the works and projects that are to be accomplished by 1-23 the district under powers conferred by Section 59, Article XVI, 1-24 Texas Constitution. The district is created to serve a public use 2-1 and benefit. 2-2 SECTION 5. POWERS. (a) Except as provided by Subsection 2-3 (b) of this section, the district has all of the rights, powers, 2-4 privileges, authority, functions, and duties provided by the 2-5 general law of this state, including Chapter 36, Water Code, 2-6 applicable to groundwater conservation districts created under 2-7 Section 59, Article XVI, Texas Constitution. Chapter 49, Water 2-8 Code, does not apply to the district. This Act prevails over any 2-9 provision of general law that is in conflict or inconsistent with 2-10 this Act. 2-11 (b) The district may not levy or collect taxes. 2-12 (c) Notwithstanding Subsection (a) of this section, the 2-13 following provisions prevail over a conflicting or inconsistent 2-14 provision in this Act: 2-15 (1) Sections 36.107-36.108, Water Code; 2-16 (2) Sections 36.159-36.161, Water Code; and 2-17 (3) Subchapter I, Chapter 36, Water Code. 2-18 SECTION 6. BOARD OF DIRECTORS. (a) The district is 2-19 governed by a board of 12 directors. 2-20 (b) The directors shall be appointed as follows: 2-21 (1) the Bastrop County Commissioners Court shall 2-22 appoint two directors, one of whom must be a representative of 2-23 business and industry; 2-24 (2) the Lee County Commissioners Court shall appoint 2-25 two directors, one of whom must be a representative of business and 2-26 industry; and 2-27 (3) the governing bodies of each of the following 3-1 entities shall appoint one director: 3-2 (A) the City of Bastrop; 3-3 (B) the City of Elgin; 3-4 (C) the City of Smithville; 3-5 (D) the Lower Colorado River Authority; 3-6 (E) Aqua Water Supply Corporation; 3-7 (F) the City of Giddings; 3-8 (G) the City of Lexington; and 3-9 (H) Lee County Water Supply Corporation. 3-10 (c) Each appointing entity shall appoint initial directors 3-11 as soon as practicable but not later than 45 days after the 3-12 effective date of this Act. 3-13 (d) The initial directors shall draw lots to determine: 3-14 (1) which six directors shall serve four-year terms 3-15 that expire at the end of the calendar year four years after the 3-16 effective date of this Act; and 3-17 (2) which six directors shall serve two-year terms 3-18 that expire at the end of the calendar year two years after the 3-19 effective date of this Act. 3-20 (e) Except as provided by Subsection (d) of this section, 3-21 directors serve staggered four-year terms. 3-22 (f) Directors may serve consecutive terms. 3-23 (g) Each director must qualify to serve as director in the 3-24 manner provided by Section 36.055, Water Code. 3-25 (h) A director serves until the director's successor has 3-26 qualified. 3-27 (i) If a vacancy occurs on the board, the governing body of 4-1 the entity that appointed the director who vacated the office shall 4-2 appoint a director to serve the remainder of the term. 4-3 SECTION 7. ORGANIZATIONAL MEETING. (a) As soon as 4-4 practicable after the initial directors are appointed and have 4-5 qualified as provided by this Act, the directors shall hold the 4-6 organizational meeting of the board. 4-7 (b) The directors shall hold the meeting: 4-8 (1) at a location within the district agreeable to a 4-9 majority of the directors; or 4-10 (2) at the Bastrop County Courthouse if the directors 4-11 cannot agree on a location. 4-12 SECTION 8. CONFIRMATION ELECTION. (a) The initial board of 4-13 directors shall call and hold an election in each of the two 4-14 counties, individually, to confirm the establishment of the 4-15 district. 4-16 (b) Section 41.001(a), Election Code, does not apply to a 4-17 confirmation election held as provided by this section. 4-18 (c) The ballot for the election must be printed to provide 4-19 for voting for or against the proposition: "The creation of the 4-20 Lost Pines Groundwater Conservation District." 4-21 (d) If a majority of the qualified voters voting in the 4-22 election in each county vote to confirm the district, the district 4-23 is confirmed as to both Bastrop and Lee counties. If a majority of 4-24 the qualified voters voting in the election in only one of the two 4-25 counties vote to confirm the creation of the district, the district 4-26 is created coterminous with the boundaries of that county only. 4-27 (e) The offices of the initial directors appointed by the 5-1 commissioners court and the city councils of municipalities in a 5-2 county that does not confirm the district lapse effective on the 5-3 date the canvass of the vote failing to confirm the district is 5-4 recorded. If the terms of the remaining initial directors are not 5-5 staggered as provided for by the drawing under Section 6(d) of this 5-6 Act, the remaining initial directors shall redraw lots to provide 5-7 for staggered terms. 5-8 (f) If the establishment of the district has not been 5-9 confirmed at an election held under this section before the second 5-10 anniversary of the effective date of this Act, this Act expires on 5-11 that date. 5-12 SECTION 9. PERMIT EXEMPTIONS. (a) Except as provided by 5-13 Subsections (b) and (c) of this section and Sections 10-12 of this 5-14 Act, Section 36.117, Water Code, applies to the district and to all 5-15 wells within the district. 5-16 (b) The district may not require a permit for, impose a fee 5-17 on, or restrict production of a well that is: 5-18 (1) not capable of producing more than 50,000 gallons 5-19 of groundwater a day; or 5-20 (2) exempt under Section 36.117(e), Water Code, as a 5-21 well permitted for mining purposes by the Railroad Commission of 5-22 Texas, to the extent that the well does not produce a greater 5-23 volume of groundwater than that produced for mining purposes. 5-24 (c) The district may require a permit for, impose a fee on, 5-25 or restrict production and withdrawals from a well described by 5-26 Subsection (b)(2) of this section for the volume of groundwater 5-27 produced that exceeds the volume produced for mining purposes. 6-1 SECTION 10. TRANSFER PERMITS FOR CERTAIN EXEMPT WELLS; 6-2 TRANSPORTATION FEE. (a) The district, without notice or hearing, 6-3 shall issue to a person who desires to transfer water from the 6-4 district from a well exempt under Section 9(b)(2) of this Act an 6-5 unconditional permit for the volume of groundwater produced from 6-6 that well for mining purposes. The district may require a permit 6-7 and charge fees to authorize the transfer from the district of any 6-8 volume of groundwater produced from a well exempt under Section 6-9 9(b)(2) of this Act that exceeds the volume produced for mining 6-10 purposes. 6-11 (b) The district may not charge a pumping fee under Section 6-12 13(a) of this Act for a well exempt under Section 9(b)(2) of this 6-13 Act but may charge a water transportation fee for all mining water 6-14 transported from the district to compensate the district for the 6-15 conservation, preservation, protection, recharging, and prevention 6-16 of waste of groundwater and of groundwater reservoirs or their 6-17 subdivisions and for controlling subsidence caused by withdrawal of 6-18 water from those groundwater reservoirs or their subdivisions. The 6-19 water transportation fee may not exceed the fee charged to other 6-20 persons who transport water from the district or a fee charged for 6-21 withdrawing water under Section 13(a) of this Act. 6-22 (c) Groundwater produced for mining that is discharged and 6-23 not sold may not be considered to have been transferred from the 6-24 district. 6-25 SECTION 11. PERMITS AND OTHER REQUIREMENTS FOR CERTAIN WATER 6-26 UNDER CONTRACT. (a) The district shall issue permits for the 6-27 transfer, production, or withdrawal of groundwater to a person who 7-1 before March 4, 1999, contracted in writing to supply to another 7-2 person groundwater withdrawn from one or more existing or proposed 7-3 wells within the district. Except as provided by Subsection (b) of 7-4 this section, the permits shall authorize the production or 7-5 withdrawal annually of a total volume of groundwater not to exceed 7-6 the smallest of the following volumes: 7-7 (1) the total volume of groundwater in the district 7-8 annually available for permitting as determined by the district, 7-9 taking into consideration relevant studies performed by the Texas 7-10 Water Development Board or other similar studies; or 7-11 (2) a volume equal to 40,000 acre-feet annually from 7-12 within the district, less the total volume of water the supplier 7-13 produces annually within the district for mining purposes. 7-14 (b) A permit or group of permits issued to the same person 7-15 under Subsection (a) of this section may not authorize that person 7-16 to produce or withdraw annually in any county in the district a 7-17 volume of groundwater that exceeds a volume equal to 30,000 7-18 acre-feet, less the total volume of groundwater the supplier 7-19 produces or withdraws annually in the county for mining purposes. 7-20 (c) The Railroad Commission of Texas shall ensure that all 7-21 requirements imposed by that agency on a supplier to mitigate 7-22 impacts caused by withdrawals of groundwater for mining purposes in 7-23 any county in the district apply also to all withdrawals of 7-24 groundwater in that county that are required to be permitted by the 7-25 district under Subsection (a) of this section. 7-26 (d) The district under Section 36.116, Water Code, may 7-27 provide for the spacing of nonexempt wells proposed by a supplier, 8-1 and the construction of those wells is subject to rules adopted by 8-2 the district. 8-3 SECTION 12. EMERGENCY TRANSFER BY RETAIL PUBLIC UTILITY. A 8-4 retail public utility that owns wells located in and permitted by 8-5 the district may transport water outside the district for emergency 8-6 purposes for a period not to exceed 90 days. Transportation of 8-7 water outside the district under this section may be voluntary or 8-8 may be directed by the Texas Natural Resource Conservation 8-9 Commission. 8-10 SECTION 13. FEES. (a) The board of directors of the 8-11 district by rule may impose reasonable fees on the owner, the 8-12 operator, or both the owner and the operator of each well in the 8-13 district, regardless of the date on which the well was drilled or 8-14 began producing, if a permit is issued for the well by the district 8-15 and the well is not exempt from regulation by the district. 8-16 (b) The district may use all fees collected under applicable 8-17 law for all purposes necessary to carry out the purposes of this 8-18 Act and the powers granted by Chapter 36, Water Code, as the 8-19 district considers necessary for the district's protection, 8-20 conservation, and regulation of groundwater, including 8-21 administrative and operating expense. 8-22 (c) A fee that is based on the amount of water to be 8-23 withdrawn from a well may not exceed the limits set by Section 8-24 36.205(c), Water Code. 8-25 SECTION 14. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 8-26 (a) The proper and legal notice of the intention to introduce this 8-27 Act, setting forth the general substance of this Act, has been 9-1 published as provided by law, and the notice and a copy of this Act 9-2 have been furnished to all persons, agencies, officials, or 9-3 entities to which they are required to be furnished by the 9-4 constitution and other laws of this state, including the governor, 9-5 who has submitted the notice and Act to the Texas Natural Resource 9-6 Conservation Commission. 9-7 (b) The Texas Natural Resource Conservation Commission has 9-8 filed its recommendations relating to this Act with the governor, 9-9 lieutenant governor, and speaker of the house of representatives 9-10 within the required time. 9-11 (c) All requirements of the constitution and laws of this 9-12 state and the rules and procedures of the legislature with respect 9-13 to the notice, introduction, and passage of this Act are fulfilled 9-14 and accomplished. 9-15 SECTION 15. EMERGENCY. The importance of this legislation 9-16 and the crowded condition of the calendars in both houses create an 9-17 emergency and an imperative public necessity that the 9-18 constitutional rule requiring bills to be read on three several 9-19 days in each house be suspended, and this rule is hereby suspended, 9-20 and that this Act take effect and be in force from and after its 9-21 passage, and it is so enacted.