1-1 AN ACT 1-2 relating to the ratification, creation, administration, powers, 1-3 duties, operation, and financing of groundwater conservation 1-4 districts in and coordinated management of groundwater resources 1-5 for the central Carrizo-Wilcox area. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 ARTICLE 1. GENERAL PROVISIONS 1-8 SECTION 1.01. TITLE. This Act may be referred to as the 1-9 Central Carrizo-Wilcox Groundwater Management Act. 1-10 SECTION 1.02. PURPOSE. The purpose of this Act is: 1-11 (1) to ratify and create locally controlled 1-12 groundwater districts in order to protect and recharge groundwater 1-13 and to prevent pollution or waste of groundwater in the central 1-14 Carrizo-Wilcox area, to control subsidence caused by withdrawal of 1-15 water from the groundwater reservoirs in that area, and to regulate 1-16 the transport of water out of the boundaries of the districts; 1-17 (2) to create the Central Carrizo-Wilcox Coordinating 1-18 Council to provide for the regional management of groundwater while 1-19 preserving local control, to protect and recharge groundwater, to 1-20 prevent pollution or waste of groundwater, and to control 1-21 subsidence caused by withdrawal of water from the groundwater 1-22 reservoirs; and 1-23 (3) to allow the groundwater conservation districts to 1-24 coordinate activities through the Central Carrizo-Wilcox 2-1 Coordinating Council to the extent authorized by this Act and 2-2 considered to be in the public interest. 2-3 ARTICLE 2. BRAZOS VALLEY GROUNDWATER CONSERVATION DISTRICT 2-4 SECTION 2.01. RATIFICATION OF CREATION. The creation by 2-5 Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999 2-6 (Senate Bill No. 1911), of the Brazos Valley Groundwater 2-7 Conservation District in Robertson and Brazos counties is ratified 2-8 as required by Section 15(a) of that Act, subject to approval at a 2-9 confirmation election under Section 2.13 of this article. 2-10 SECTION 2.02. DEFINITION. In this article, "district" means 2-11 the Brazos Valley Groundwater Conservation District. 2-12 SECTION 2.03. BOUNDARIES. The boundaries of the district are 2-13 coextensive with the boundaries of Robertson and Brazos counties, 2-14 Texas. 2-15 SECTION 2.04. GENERAL POWERS. (a) Except as otherwise 2-16 provided by this article, the district has all of the rights, 2-17 powers, privileges, authority, functions, and duties provided by 2-18 the general law of this state, including Chapter 36, Water Code, 2-19 applicable to groundwater conservation districts created under 2-20 Section 59, Article XVI, Texas Constitution. This article prevails 2-21 over any provision of general law that is in conflict or 2-22 inconsistent with this article, including any provision of Chapter 2-23 36, Water Code, or Chapter 1331, Acts of the 76th Legislature, 2-24 Regular Session, 1999 (Senate Bill No. 1911). 2-25 (b) The district does not have the authority granted by the 2-26 following provisions of Chapter 36, Water Code: 2-27 (1) Section 36.105, relating to eminent domain; and 3-1 (2) Sections 36.020 and 36.201-36.204, relating to 3-2 taxes. 3-3 SECTION 2.05. BONDS. The district may issue bonds and notes 3-4 under Sections 36.171-36.181, Water Code, not to exceed $500,000 of 3-5 total indebtedness at any time. 3-6 SECTION 2.06. FEES. (a) The board of directors of the 3-7 district by rule may impose reasonable fees on each well for which 3-8 a permit is issued by the district and which is not exempt from 3-9 regulation by the district. A fee may be based on the size of 3-10 column pipe used by the well or on the actual, authorized, or 3-11 anticipated amount of water to be withdrawn from the well. 3-12 (b) The initial fee shall be based on the amount of water to 3-13 be withdrawn from the well. The initial fee: 3-14 (1) may not exceed: 3-15 (A) $0.25 per acre-foot for water used for 3-16 irrigating agricultural crops or operating existing steam electric 3-17 stations; or 3-18 (B) $0.0425 per thousand gallons for water used 3-19 for any other purpose; and 3-20 (2) may be increased at a cumulative rate not to 3-21 exceed three percent per year. 3-22 (c) In addition to the fee authorized under Subsection (b) 3-23 of this section, the district may impose a reasonable fee or 3-24 surcharge for an export fee using one of the following methods: 3-25 (1) a fee negotiated between the district and the 3-26 transporter; or 3-27 (2) a combined production and export fee not to exceed 4-1 17 cents per thousand gallons of water used. 4-2 (d) Fees authorized by this section may be assessed annually 4-3 and may be used to fund the cost of operations of the district or 4-4 the Central Carrizo-Wilcox Coordinating Council. 4-5 SECTION 2.07. GROUNDWATER WELLS UNDER JURISDICTION OF 4-6 RAILROAD COMMISSION. (a) A groundwater well drilled or operated 4-7 within the district under a permit issued by the Railroad 4-8 Commission of Texas is under the exclusive jurisdiction of the 4-9 railroad commission and is exempt from regulation by the district. 4-10 (b) Groundwater produced in an amount authorized by a 4-11 railroad commission permit may be used within or exported from the 4-12 district without a permit from the district. 4-13 (c) To the extent groundwater is produced in excess of 4-14 railroad commission authorization, the holder of the railroad 4-15 commission permit must apply to the district for the appropriate 4-16 permit for the excess production and is subject to the applicable 4-17 regulatory fees. 4-18 (d) Groundwater produced from a well under the jurisdiction 4-19 of the railroad commission is generally exempt from water district 4-20 fees. However, the district may impose either a pumping fee or an 4-21 export fee on groundwater produced from an otherwise exempt mine 4-22 well that is used for municipal purposes or by a public utility. 4-23 Any fee imposed by the district under this subsection may not 4-24 exceed the fee imposed on other groundwater producers in the 4-25 district. 4-26 SECTION 2.08. REGIONAL COORDINATION. (a) To provide for 4-27 regional continuity, the district shall participate in a regular 5-1 annual coordination meeting with any groundwater districts that are 5-2 created and/or existing in Bastrop, Lee, Robertson, Brazos, Milam, 5-3 Burleson, Leon, Madison, and/or Freestone counties, and may hold 5-4 coordination meetings at other times as needed. 5-5 (b) Prior to the first annual regional coordination meeting 5-6 held under Subsection (a), the district's board of directors shall 5-7 vote whether to create and be a member of the Central 5-8 Carrizo-Wilcox Coordinating Council under Article 5 of this Act. 5-9 (c) At the first annual regional coordination meeting held 5-10 under Subsection (a), if all of the groundwater districts created 5-11 and/or existing in Bastrop, Lee, Robertson, Brazos, Milam, 5-12 Burleson, Leon, Madison, and/or Freestone counties unanimously vote 5-13 to create and be members of the Central Carrizo-Wilcox Coordinating 5-14 Council, then the district shall be a member of the Central 5-15 Carrizo-Wilcox Coordinating Council under Article 5. 5-16 (d) If the Central Carrizo-Wilcox Coordinating Council is 5-17 not created at the first annual regional coordination meeting held 5-18 under Subsection (a), then the district shall follow the joint 5-19 planning in management area requirements under Chapter 36, Water 5-20 Code. 5-21 SECTION 2.09. MANAGEMENT PLAN. (a) The district shall 5-22 develop or contract to develop its own management plan under 5-23 Section 36.1071, Water Code. 5-24 (b) The district shall submit its management plan under 5-25 Subsection (a) to the Central Carrizo-Wilcox Coordinating Council 5-26 to be included in the management plan developed by the Central 5-27 Carrizo-Wilcox Coordinating Council under Section 5.06 of this Act, 6-1 if the Central Carrizo-Wilcox Coordinating Council is created at 6-2 the first annual regional coordination meeting. 6-3 SECTION 2.10. BOARD OF DIRECTORS. (a) The district is 6-4 governed by a board of eight directors. 6-5 (b) Initial directors serve until permanent directors are 6-6 appointed under Section 2.11 of this article and qualified as 6-7 required by Subsection (d) of this section. 6-8 (c) Permanent directors serve four-year staggered terms. 6-9 (d) Each director must qualify to serve as a director in the 6-10 manner provided by Section 36.055, Water Code. 6-11 (e) A director serves until the director's successor has 6-12 qualified. 6-13 (f) A director may serve consecutive terms. 6-14 (g) If there is a vacancy on the board, the governing body 6-15 of the entity that appointed the director who vacated the office 6-16 shall appoint a director to serve the remainder of the term. 6-17 (h) Directors are not entitled to receive compensation for 6-18 serving as a director but may be reimbursed for actual, reasonable 6-19 expenses incurred in the discharge of official duties. 6-20 (i) A majority vote of a quorum is required for board 6-21 action. If there is a tie vote, the proposed action fails. 6-22 SECTION 2.11. APPOINTMENT OF DIRECTORS. (a) The Robertson 6-23 County Commissioners Court shall appoint four directors, of whom: 6-24 (1) one must represent municipal interests in the 6-25 county; 6-26 (2) one must be a bona fide agricultural producer who 6-27 derives a substantial portion of his or her income from agriculture 7-1 in the county; 7-2 (3) one must be a director or employee of a rural 7-3 water supply corporation in the county; and 7-4 (4) one must represent active industrial interests in 7-5 the county. 7-6 (b) The Brazos County Commissioners Court shall appoint two 7-7 directors, of whom: 7-8 (1) one must be a director or employee of a rural 7-9 water supply corporation in the county; and 7-10 (2) one must be a bona fide agricultural producer who 7-11 derives a substantial portion of his or her income from agriculture 7-12 in the county. 7-13 (c) The governing body of the City of Bryan, with the 7-14 approval of the Brazos County Commissioners Court, shall appoint 7-15 one director. 7-16 (d) The governing body of the City of College Station, with 7-17 the approval of the Brazos County Commissioners Court, shall 7-18 appoint one director. 7-19 (e) Each of the governing bodies authorized by this section 7-20 to make an appointment shall appoint the appropriate number of 7-21 initial directors as soon as practicable following the effective 7-22 date of this Act, but not later than the 45th day after the 7-23 effective date of this Act. 7-24 (f) The four initial directors from Robertson County shall 7-25 draw lots to determine their terms. Two initial directors from 7-26 Robertson County and the two initial directors from Brazos County 7-27 serve terms that expire on January 1 of the second year following 8-1 the confirmation of the district at an election held under Section 8-2 2.13 of this article. The remaining four initial directors serve 8-3 terms that expire on January 1 of the fourth year following the 8-4 confirmation of the district. On January 1 of the second year 8-5 following confirmation of the district and every two years after 8-6 that date, the appropriate governing body shall appoint the 8-7 appropriate number of permanent directors. 8-8 SECTION 2.12. ORGANIZATIONAL MEETING. As soon as practicable 8-9 after all the initial directors have been appointed and have 8-10 qualified as provided in this article, a majority of the directors 8-11 shall convene the organizational meeting of the district at a 8-12 location within the district agreeable to a majority of the 8-13 directors. If no location can be agreed on, the organizational 8-14 meeting of the directors shall be at the Robertson County 8-15 Courthouse. 8-16 SECTION 2.13. CONFIRMATION ELECTION. (a) The initial board 8-17 of directors shall call and hold an election on the same date in 8-18 each county within the district to confirm the creation of the 8-19 district. 8-20 (b) Except as provided by this section, a confirmation 8-21 election must be conducted as provided by Sections 36.017, 36.018, 8-22 and 36.019, Water Code, and Section 41.001, Election Code. 8-23 (c) If the majority of qualified voters in a county who vote 8-24 in the election vote to confirm the creation of the district, that 8-25 county is included in the district. If the majority of qualified 8-26 voters in a county who vote in the election vote not to confirm the 8-27 creation of the district, that county is excluded from the 9-1 district. 9-2 (d) The district is dissolved and this article expires on 9-3 August 31, 2003, unless the voters confirm the creation of the 9-4 district before that date. 9-5 ARTICLE 3. POST OAK SAVANNAH GROUNDWATER CONSERVATION DISTRICT 9-6 SECTION 3.01. CREATION. (a) A groundwater conservation 9-7 district, to be known as the Post Oak Savannah Groundwater 9-8 Conservation District, is created in Milam and Burleson counties, 9-9 subject to approval at a confirmation election under Section 3.13 9-10 of this article. The district is a governmental agency and a body 9-11 politic and corporate. 9-12 (b) The district is created under and is essential to 9-13 accomplish the purposes of Section 59, Article XVI, Texas 9-14 Constitution. 9-15 SECTION 3.02. DEFINITION. In this article, "district" means 9-16 the Post Oak Savannah Groundwater Conservation District. 9-17 SECTION 3.03. BOUNDARIES. The boundaries of the district are 9-18 coextensive with the boundaries of Milam and Burleson counties. 9-19 SECTION 3.04. FINDING OF BENEFIT. All of the land and other 9-20 property included within the boundaries of the district will be 9-21 benefitted by the works and projects that are to be accomplished by 9-22 the district under powers conferred by Section 59, Article XVI, 9-23 Texas Constitution. The district is created to serve a public use 9-24 and benefit. 9-25 SECTION 3.05. GENERAL POWERS. (a) Except as otherwise 9-26 provided by this article, the district has all of the rights, 9-27 powers, privileges, authority, functions, and duties provided by 10-1 the general law of this state, including Chapter 36, Water Code, 10-2 applicable to groundwater conservation districts created under 10-3 Section 59, Article XVI, Texas Constitution. This article prevails 10-4 over any provision of general law that is in conflict or 10-5 inconsistent with this article, including any provision of Chapter 10-6 36, Water Code. 10-7 (b) The district does not have the authority granted by the 10-8 following provisions of Chapter 36, Water Code: 10-9 (1) Section 36.105, relating to eminent domain; and 10-10 (2) Sections 36.020 and 36.201-36.204, relating to 10-11 taxes. 10-12 SECTION 3.06. FEES. (a) The board of directors of the 10-13 district by rule may impose reasonable fees on each well for which 10-14 a permit is issued by the district and which is not exempt from 10-15 regulation by the district. A fee may be based on the size of 10-16 column pipe used by the well or on the actual, authorized, or 10-17 anticipated amount of water to be withdrawn from the well. 10-18 (b) Fees may not exceed: 10-19 (1) $0.25 per acre-foot for water used for irrigating 10-20 agricultural crops; or 10-21 (2) 17 cents per thousand gallons for water used for 10-22 any other purpose. 10-23 (c) In addition to the fee authorized under Subsection (b) 10-24 of this section, the district may impose a reasonable fee or 10-25 surcharge for an export fee using one of the following methods: 10-26 (1) a fee negotiated between the district and the 10-27 transporter; or 11-1 (2) a combined production and export fee not to exceed 11-2 17 cents per thousand gallons of water used. 11-3 (d) Fees authorized by this section may be assessed annually 11-4 and may be used to fund the cost of operations of the district or 11-5 the Central Carrizo-Wilcox Coordinating Council. 11-6 SECTION 3.07. GROUNDWATER WELLS UNDER JURISDICTION OF 11-7 RAILROAD COMMISSION. (a) A groundwater well drilled or operated 11-8 within the district under a permit issued by the Railroad 11-9 Commission of Texas is under the exclusive jurisdiction of the 11-10 railroad commission and is exempt from regulation by the district. 11-11 (b) Groundwater produced in an amount authorized by a 11-12 railroad commission permit may be used within or exported from the 11-13 district without a permit from the district. 11-14 (c) To the extent groundwater is produced in excess of 11-15 railroad commission authorization, the holder of the railroad 11-16 commission permit must apply to the district for the appropriate 11-17 permit for the excess production and is subject to the applicable 11-18 regulatory fees. 11-19 (d) Groundwater produced from a well under the jurisdiction 11-20 of the railroad commission is generally exempt from water district 11-21 fees. However, the district may impose either a pumping fee or an 11-22 export fee on groundwater produced from an otherwise exempt mine 11-23 well that is used for municipal purposes or by a public utility. 11-24 Any fee imposed by the district under this subsection may not 11-25 exceed the fee imposed on other groundwater producers in the 11-26 district. 11-27 SECTION 3.08. REGIONAL COORDINATION. (a) To provide for 12-1 regional continuity, the district shall participate in a regular 12-2 annual coordination meeting with any groundwater districts that are 12-3 created and/or existing in Bastrop, Lee, Robertson, Brazos, Milam, 12-4 Burleson, Leon, Madison, and/or Freestone counties, and may hold 12-5 coordination meetings at other times as needed. 12-6 (b) Prior to the first annual regional coordination meeting 12-7 held under Subsection (a), the district's board of directors shall 12-8 vote whether to create and be a member of the Central 12-9 Carrizo-Wilcox Coordinating Council under Article 5 of this Act. 12-10 (c) At the first annual regional coordination meeting held 12-11 under Subsection (a), if all of the groundwater districts created 12-12 and/or existing in Bastrop, Lee, Robertson, Brazos, Milam, 12-13 Burleson, Leon, Madison, and/or Freestone counties unanimously vote 12-14 to create and be members of the Central Carrizo-Wilcox Coordinating 12-15 Council, then the district shall be a member of the Central 12-16 Carrizo-Wilcox Coordinating Council under Article 5. 12-17 (d) If the Central Carrizo-Wilcox Coordinating Council is 12-18 not created at the first annual regional coordination meeting held 12-19 under Subsection (a), then the district shall follow the joint 12-20 planning in management area requirements under Chapter 36, Water 12-21 Code. 12-22 SECTION 3.09. MANAGEMENT PLAN. (a) The district shall 12-23 develop or contract to develop its own management plan under 12-24 Section 36.1071, Water Code. 12-25 (b) The district shall submit its management plan under 12-26 Subsection (a) to the Central Carrizo-Wilcox Coordinating Council 12-27 to be included in the management plan developed by the Central 13-1 Carrizo-Wilcox Coordinating Council under Section 5.06 of this Act, 13-2 if the Central Carrizo-Wilcox Coordinating Council is created at 13-3 the first annual regional coordination meeting. 13-4 SECTION 3.10. BOARD OF DIRECTORS. (a) The district is 13-5 governed by a board of 10 directors. 13-6 (b) Initial directors serve until permanent directors are 13-7 appointed under Section 3.11 of this article and qualified as 13-8 required by Subsection (d) of this section. 13-9 (c) Permanent directors serve four-year staggered terms. 13-10 (d) Each director must qualify to serve as a director in the 13-11 manner provided by Section 36.055, Water Code. 13-12 (e) A director serves until the director's successor has 13-13 qualified. 13-14 (f) A director may serve consecutive terms. 13-15 (g) If there is a vacancy on the board, the governing body 13-16 of the entity that appointed the director who vacated the office 13-17 shall appoint a director to serve the remainder of the term. 13-18 (h) Directors are not entitled to receive compensation for 13-19 serving as a director but may be reimbursed for actual, reasonable 13-20 expenses incurred in the discharge of official duties. 13-21 (i) A quorum exists when at least two-thirds of the board 13-22 members are present. A majority vote of a quorum is required for 13-23 board action. If there is a tie vote, the proposed action fails. 13-24 SECTION 3.11. APPOINTMENT OF DIRECTORS. (a) The Milam 13-25 County Commissioners Court shall appoint five directors, of whom: 13-26 (1) one must represent municipal interests in the 13-27 county; 14-1 (2) one must be a bona fide agricultural producer who 14-2 derives a substantial portion of his or her income from agriculture 14-3 in the county; 14-4 (3) one must be a director or employee of a rural 14-5 water supply corporation in the county; 14-6 (4) one must represent active industrial interests in 14-7 the county; and 14-8 (5) one must represent the interests of the county at 14-9 large. 14-10 (b) The Burleson County Commissioners Court shall appoint 14-11 five directors, of whom: 14-12 (1) one must represent municipal interests in the 14-13 county; 14-14 (2) one must be a bona fide agricultural producer who 14-15 derives a substantial portion of his or her income from agriculture 14-16 in the county; 14-17 (3) one must be a director or employee of a rural 14-18 water supply corporation in the county; 14-19 (4) one must represent active industrial interests in 14-20 the county; and 14-21 (5) one must represent the interests of the county at 14-22 large. 14-23 (c) Each of the governing bodies authorized by this section 14-24 to make an appointment shall appoint the appropriate number of 14-25 initial directors as soon as practicable following the effective 14-26 date of this Act, but not later than the 45th day after the 14-27 effective date of this Act. 15-1 (d) The initial directors shall draw lots to determine their 15-2 terms. Two initial directors from Milam County and two initial 15-3 directors from Burleson County serve terms that expire on January 1 15-4 of the second year following the confirmation of the district at an 15-5 election held under Section 3.13 of this article. The remaining 15-6 six initial directors serve terms that expire on January 1 of the 15-7 fourth year following the confirmation of the district. On January 15-8 1 of the second year following confirmation of the district and 15-9 every two years after that date, the appropriate commissioners 15-10 court shall appoint the appropriate number of permanent directors. 15-11 SECTION 3.12. ORGANIZATIONAL MEETING. As soon as practicable 15-12 after all the initial directors have been appointed and have 15-13 qualified as provided in this article, a majority of the directors 15-14 shall convene the organizational meeting of the district at a 15-15 location within the district agreeable to a majority of the 15-16 directors. If no location can be agreed on, the organizational 15-17 meeting of the directors shall be at the Milam County Courthouse. 15-18 SECTION 3.13. CONFIRMATION ELECTION. (a) The initial board 15-19 of directors shall call and hold an election on the same date in 15-20 each county within the district to confirm the creation of the 15-21 district. 15-22 (b) Except as provided by this section, a confirmation 15-23 election must be conducted as provided by Sections 36.017, 36.018, 15-24 and 36.019, Water Code, and Section 41.001, Election Code. 15-25 (c) If the majority of qualified voters in a county who vote 15-26 in the election vote to confirm the creation of the district, that 15-27 county is included in the district. If the majority of qualified 16-1 voters in a county who vote in the election vote not to confirm the 16-2 creation of the district, that county is excluded from the 16-3 district. 16-4 (d) The district is dissolved and this article expires on 16-5 August 31, 2003, unless the voters confirm the creation of the 16-6 district before that date. 16-7 ARTICLE 4. MID-EAST TEXAS GROUNDWATER CONSERVATION DISTRICT 16-8 SECTION 4.01. CREATION. (a) A groundwater conservation 16-9 district, to be known as the Mid-East Texas Groundwater 16-10 Conservation District, is created in Leon, Madison, and Freestone 16-11 counties, subject to approval at a confirmation election under 16-12 Section 4.13 of this article. The district is a governmental 16-13 agency and a body politic and corporate. 16-14 (b) The district is created under and is essential to 16-15 accomplish the purposes of Section 59, Article XVI, Texas 16-16 Constitution. 16-17 SECTION 4.02. DEFINITION. In this article, "district" means 16-18 the Mid-East Texas Groundwater Conservation District. 16-19 SECTION 4.03. BOUNDARIES. The boundaries of the district are 16-20 coextensive with the boundaries of Leon, Madison, and Freestone 16-21 counties. 16-22 SECTION 4.04. FINDING OF BENEFIT. All of the land and other 16-23 property included within the boundaries of the district will be 16-24 benefitted by the works and projects that are to be accomplished by 16-25 the district under powers conferred by Section 59, Article XVI, 16-26 Texas Constitution. The district is created to serve a public use 16-27 and benefit. 17-1 SECTION 4.05. GENERAL POWERS. (a) Except as otherwise 17-2 provided by this article, the district has all of the rights, 17-3 powers, privileges, authority, functions, and duties provided by 17-4 the general law of this state, including Chapter 36, Water Code, 17-5 applicable to groundwater conservation districts created under 17-6 Section 59, Article XVI, Texas Constitution. This article prevails 17-7 over any provision of general law that is in conflict or 17-8 inconsistent with this article, including any provision of Chapter 17-9 36, Water Code. 17-10 (b) The district does not have the authority granted by the 17-11 following provisions of Chapter 36, Water Code: 17-12 (1) Section 36.105, relating to eminent domain; and 17-13 (2) Sections 36.020 and 36.201-36.204, relating to 17-14 taxes. 17-15 SECTION 4.06. FEES. (a) The board of directors of the 17-16 district by rule may impose reasonable fees on each well for which 17-17 a permit is issued by the district and which is not exempt from 17-18 regulation by the district. A fee may be based on the size of 17-19 column pipe used by the well or on the actual, authorized, or 17-20 anticipated amount of water to be withdrawn from the well. 17-21 (b) Fees may not exceed: 17-22 (1) $0.25 dollar per acre-foot for water used for 17-23 irrigating agricultural crops; or 17-24 (2) 17 cents per thousand gallons for water used for 17-25 any other purpose. 17-26 (c) In addition to the fee authorized under Subsection (b) 17-27 of this section, the district may impose a reasonable fee or 18-1 surcharge for an export fee using one of the following methods: 18-2 (1) a fee negotiated between the district and the 18-3 transporter; or 18-4 (2) a combined production and export fee not to exceed 18-5 17 cents per thousand gallons of water used. 18-6 (d) Fees authorized by this section may be assessed annually 18-7 and may be used to fund the cost of operations of the district or 18-8 the Central Carrizo-Wilcox Coordinating Council. 18-9 SECTION 4.07. GROUNDWATER WELLS UNDER JURISDICTION OF 18-10 RAILROAD COMMISSION. (a) A groundwater well drilled or operated 18-11 within the district under a permit issued by the Railroad 18-12 Commission of Texas is under the exclusive jurisdiction of the 18-13 railroad commission and is exempt from regulation by the district. 18-14 (b) Groundwater produced in an amount authorized by a 18-15 railroad commission permit may be used within or exported from the 18-16 district without a permit from the district. 18-17 (c) To the extent groundwater is produced in excess of 18-18 railroad commission authorization, the holder of the railroad 18-19 commission permit must apply to the district for the appropriate 18-20 permit for the excess production and is subject to the applicable 18-21 regulatory fees. 18-22 (d) Groundwater produced from a well under the jurisdiction 18-23 of the railroad commission is generally exempt from water district 18-24 fees. However, the district may impose either a pumping fee or an 18-25 export fee on groundwater produced from an otherwise exempt mine 18-26 well that is used for municipal purposes or by a public utility. 18-27 Any fee imposed by the district under this subsection may not 19-1 exceed the fee imposed on other groundwater producers in the 19-2 district. 19-3 SECTION 4.08. REGIONAL COORDINATION. (a) To provide for 19-4 regional continuity, the district shall participate in a regular 19-5 annual coordination meeting with any groundwater districts that are 19-6 created and/or existing in Bastrop, Lee, Robertson, Brazos, Milam, 19-7 Burleson, Leon, Madison, and/or Freestone counties, and may hold 19-8 coordination meetings at other times as needed. 19-9 (b) Prior to the first annual regional coordination meeting 19-10 held under Subsection (a), the district's board of directors shall 19-11 vote whether to create and be a member of the Central 19-12 Carrizo-Wilcox Coordinating Council under Article 5 of this Act. 19-13 (c) At the first annual regional coordination meeting held 19-14 under Subsection (a), if all of the groundwater districts created 19-15 and/or existing in Bastrop, Lee, Robertson, Brazos, Milam, 19-16 Burleson, Leon, Madison, and/or Freestone counties unanimously vote 19-17 to create and be members of the Central Carrizo-Wilcox Coordinating 19-18 Council, then the district shall be a member of the Central 19-19 Carrizo-Wilcox Coordinating Council under Article 5. 19-20 (d) If the Central Carrizo-Wilcox Coordinating Council is 19-21 not created at the first annual regional coordination meeting held 19-22 under Subsection (a), then the district shall follow the joint 19-23 planning in management area requirements under Chapter 36, Water 19-24 Code. 19-25 SECTION 4.09. MANAGEMENT PLAN. (a) The district shall 19-26 develop or contract to develop its own management plan under 19-27 Section 36.1071, Water Code. 20-1 (b) The district shall submit its management plan under 20-2 Subsection (a) to the Central Carrizo-Wilcox Coordinating Council 20-3 to be included in the management plan developed by the Central 20-4 Carrizo-Wilcox Coordinating Council under Section 5.06 of this Act, 20-5 if the Central Carrizo-Wilcox Coordinating Council is created at 20-6 the first annual regional coordination meeting. 20-7 SECTION 4.10. BOARD OF DIRECTORS. (a) The district is 20-8 governed by a board of nine directors. 20-9 (b) Initial directors serve until permanent directors are 20-10 appointed under Section 4.11 of this article and qualified as 20-11 required by Subsection (d) of this section. 20-12 (c) Permanent directors serve four-year staggered terms. 20-13 (d) Each director must qualify to serve as a director in the 20-14 manner provided by Section 36.055, Water Code. 20-15 (e) A director serves until the director's successor has 20-16 qualified. 20-17 (f) A director may serve consecutive terms. 20-18 (g) If there is a vacancy on the board, the governing body 20-19 of the entity that appointed the director who vacated the office 20-20 shall appoint a director to serve the remainder of the term. 20-21 (h) Directors are not entitled to receive compensation for 20-22 serving as a director but may be reimbursed for actual, reasonable 20-23 expenses incurred in the discharge of official duties. 20-24 (i) A majority vote of a quorum is required for board 20-25 action. If there is a tie vote, the proposed action fails. 20-26 SECTION 4.11. APPOINTMENT OF DIRECTORS. (a) The Leon County 20-27 Commissioners Court shall appoint three directors, of whom: 21-1 (1) one must represent the interests of municipalities 21-2 in the county, or must be a director or employee of a rural water 21-3 supply corporation in the county, or both; 21-4 (2) one must be a bona fide agricultural producer who 21-5 derives a substantial portion of his or her income from agriculture 21-6 in the county; and 21-7 (3) one must represent active industrial interests in 21-8 the county. 21-9 (b) The Madison County Commissioners Court shall appoint 21-10 three directors, of whom: 21-11 (1) one must represent the interests of municipalities 21-12 in the county, or must be a director or employee of a rural water 21-13 supply corporation in the county, or both; 21-14 (2) one must be a bona fide agricultural producer who 21-15 derives a substantial portion of his or her income from agriculture 21-16 in the county; and 21-17 (3) one must represent active industrial interests in 21-18 the county. 21-19 (c) The Freestone County Commissioners Court shall appoint 21-20 three directors, of whom: 21-21 (1) one must represent the interests of municipalities 21-22 in the county, or must be a director or employee of a rural water 21-23 supply corporation in the county, or both; 21-24 (2) one must be a bona fide agricultural producer who 21-25 derives a substantial portion of his or her income from agriculture 21-26 in the county; and 21-27 (3) one must represent active industrial interests in 22-1 the county. 22-2 (d) Each of the governing bodies authorized by this section 22-3 to make an appointment shall appoint the appropriate number of 22-4 initial directors as soon as practicable following the effective 22-5 date of this Act, but not later than the 45th day after the 22-6 effective date of this Act. 22-7 (e) The initial directors shall draw lots to determine their 22-8 terms. A simple majority of the initial directors, if an odd 22-9 number of initial directors are appointed, or half the initial 22-10 directors, if an even number of initial directors are appointed, 22-11 serve terms that expire on January 1 of the fourth year following 22-12 the confirmation of the district at an election held under Section 22-13 4.13 of this article. The remaining initial directors serve terms 22-14 that expire on January 1 of the second year following the 22-15 confirmation of the district. On January 1 of the second year 22-16 following confirmation of the district and every two years after 22-17 that date, the appropriate commissioners courts shall appoint the 22-18 appropriate number of permanent directors. 22-19 SECTION 4.12. ORGANIZATIONAL MEETING. As soon as practicable 22-20 after all the initial directors have been appointed and have 22-21 qualified as provided by this article, a majority of the directors 22-22 shall convene the organizational meeting of the district at a 22-23 location within the district agreeable to a majority of the 22-24 directors. If no location can be agreed on, the organizational 22-25 meeting of the directors shall be at the Leon County Courthouse. 22-26 SECTION 4.13. CONFIRMATION ELECTION. (a) The initial board 22-27 of directors shall call and hold an election on the same date in 23-1 each county within the district to confirm the creation of the 23-2 district. 23-3 (b) Except as provided by this section, a confirmation 23-4 election must be conducted as provided by Sections 36.017, 36.018, 23-5 and 36.019, Water Code, and Section 41.001, Election Code. 23-6 (c) If the majority of qualified voters in a county who vote 23-7 in the election vote to confirm the creation of the district, that 23-8 county is included in the district. If the majority of qualified 23-9 voters in a county who vote in the election vote not to confirm the 23-10 creation of the district, that county is excluded from the 23-11 district. 23-12 (d) The district is dissolved and this article expires on 23-13 August 31, 2003, unless the voters confirm the creation of the 23-14 district before that date. 23-15 ARTICLE 5. CENTRAL CARRIZO-WILCOX COORDINATING COUNCIL 23-16 SECTION 5.01. CREATION. (a) The Central Carrizo-Wilcox 23-17 Coordinating Council is created only if at the first annual 23-18 regional coordination meeting held under Sections 2.08, 3.08, and 23-19 4.08 of this Act, all of the groundwater districts created and/or 23-20 existing in Bastrop, Lee, Robertson, Brazos, Milam, Burleson, Leon, 23-21 Madison, and/or Freestone counties unanimously vote to create and 23-22 be members of the Central Carrizo-Wilcox Coordinating Council. 23-23 (b) The council is created under and is essential to 23-24 accomplish the purposes of Section 59, Article XVI, Texas 23-25 Constitution. 23-26 (c) The council is created to provide regional management of 23-27 groundwater resources within its boundaries in order to preserve a 24-1 sustainable water supply for the future by protecting, recharging, 24-2 and preventing the waste of groundwater and by controlling 24-3 subsidence caused by withdrawal of water from the groundwater 24-4 reservoirs. 24-5 SECTION 5.02. BOUNDARIES. The boundaries of the Central 24-6 Carrizo-Wilcox Coordinating Council are coextensive with the 24-7 boundaries of Bastrop, Lee, Robertson, Brazos, Milam, Burleson, 24-8 Leon, Madison, and Freestone counties. 24-9 SECTION 5.03. DEFINITIONS. In this article: 24-10 (1) "Council" means the Central Carrizo-Wilcox 24-11 Coordinating Council. 24-12 (2) "District" includes: 24-13 (A) the Brazos Valley Groundwater Conservation 24-14 District; 24-15 (B) the Post Oak Savannah Groundwater 24-16 Conservation District; 24-17 (C) the Mid-East Texas Groundwater Conservation 24-18 District; 24-19 (D) the Lost Pines Groundwater Conservation 24-20 District; and 24-21 (E) any other groundwater district created in 24-22 Bastrop, Lee, Robertson, Brazos, Milam, Burleson, Leon, Madison, or 24-23 Freestone County, or in any combination of any of those counties. 24-24 SECTION 5.04. FINDING OF BENEFIT. All of the land and other 24-25 property included within the boundaries of the council will be 24-26 benefitted by regional management of groundwater resources and the 24-27 works and projects that are to be accomplished by the council under 25-1 powers conferred by Section 59, Article XVI, Texas Constitution. 25-2 The council is created to serve a public use and benefit. 25-3 SECTION 5.05. AUTHORITY OF COUNCIL. (a) The council does 25-4 not have the powers granted by Chapter 36, Water Code, except as 25-5 stated in this article and as authorized by the districts. The 25-6 failure of one or more of the districts' confirmation elections 25-7 does not affect the authority of the council. 25-8 (b) The council's authority is limited to groundwater 25-9 produced from and wells drilled into the Carrizo-Wilcox aquifer, as 25-10 defined by the Texas Water Development Board in the current state 25-11 water plan, within the boundaries of the council. 25-12 SECTION 5.06. MANAGEMENT PLAN. (a) The council shall: 25-13 (1) coordinate and maintain a management plan for the 25-14 council's coordinating area; 25-15 (2) collect and maintain data required for management 25-16 of groundwater resources within its boundaries; 25-17 (3) coordinate the districts regarding management plan 25-18 issues; and 25-19 (4) disseminate information and monitor implementation 25-20 of the management plan among the districts. 25-21 (b) The council shall coordinate the comprehensive 25-22 management plan, as required by Sections 36.1071 and 36.1073, Water 25-23 Code, for all of the counties within its boundaries. In 25-24 coordinating the comprehensive management plan, the council shall 25-25 include and use the management plans developed by the individual 25-26 districts. 25-27 (c) In the management plan the council may establish an 26-1 annual total groundwater withdrawal limit and equitable allocation 26-2 for each district as determined from an evaluation of the overall 26-3 scientific data of the groundwater resources in the region, 26-4 including the Texas Water Development Board's groundwater 26-5 availability model. The determination of sustainable groundwater 26-6 withdrawal shall be reviewed at least every five years. An 26-7 individual district may not restrict the total amount of 26-8 groundwater withdrawn in the district to less than the limit as 26-9 determined from the evaluation of scientific data established under 26-10 this subsection. If the council establishes an annual total 26-11 groundwater withdrawal limit and that limit is reached, groundwater 26-12 withdrawal used for public water supply inside the boundaries of 26-13 the council may be restricted only by unanimous vote of the 26-14 council. 26-15 (d) On completion of the comprehensive management plan and 26-16 after approval of the plan by vote of at least 75 percent of the 26-17 council, the council shall forward a copy of the management plan 26-18 and any amendment to the plan to the Texas Water Development Board 26-19 as required by Section 36.1072, Water Code. In preparing the 26-20 comprehensive management plan and its amendments, the council shall 26-21 consider: 26-22 (1) the goals of the management plan and its impact on 26-23 planning throughout the management area; 26-24 (2) the effectiveness of the measures established by 26-25 the management plan for conserving and protecting groundwater and 26-26 preventing waste, and the effectiveness of those measures in the 26-27 management area generally; and 27-1 (3) any other matters that the council considers 27-2 relevant to the protection and conservation of groundwater and the 27-3 prevention of waste in the management area. 27-4 SECTION 5.07. MANAGEMENT OF COUNCIL. (a) The districts' 27-5 representatives appointed to the council shall manage all affairs 27-6 of the council. 27-7 (b) The council may contract with any person, public or 27-8 private, as the council requires to conduct its affairs. The 27-9 council shall set the compensation and terms for consultants. 27-10 (c) In selecting an attorney, engineer, auditor, financial 27-11 advisor, or other professional consultant, the council must follow 27-12 the procedures of Subchapter A, Chapter 2254, Government Code 27-13 (Professional Services Procurement Act). 27-14 (d) The council shall require an officer or consultant who 27-15 collects, pays, or handles any council funds to furnish good and 27-16 sufficient bond, payable to the council, in an amount determined by 27-17 the council to be sufficient to safeguard the council. The bond 27-18 shall be conditioned on the faithful performance of that person's 27-19 duties and on an accounting for all council funds and property. 27-20 The bond shall be signed or endorsed by a surety company authorized 27-21 to do business in this state. 27-22 SECTION 5.08. MEETINGS. (a) The council shall hold a 27-23 regular annual meeting. It may hold meetings at other times as 27-24 required for council business. 27-25 (b) Notice of council meetings shall be given as required by 27-26 the open meetings law, Chapter 551, Government Code. 27-27 (c) The council shall hold its meetings in accordance with 28-1 the open meetings law, Chapter 551, Government Code. 28-2 SECTION 5.09. RECORDS. (a) The council shall keep a 28-3 complete account of all its meetings and proceedings and shall 28-4 preserve all council records in a safe place. 28-5 (b) Council records are the property of the council and are 28-6 subject to Chapter 552, Government Code. 28-7 (c) The preservation, storage, destruction, or other 28-8 disposition of council records are subject to Chapter 201, Local 28-9 Government Code, and rules adopted under that chapter. 28-10 SECTION 5.10. RESEARCH, SURVEYS, AND COLLECTION AND 28-11 DISSEMINATION OF INFORMATION. (a) The council may, but only as 28-12 authorized by the districts: 28-13 (1) perform research projects authorized by Section 28-14 36.107, Water Code; 28-15 (2) coordinate surveys under Section 36.106, Water 28-16 Code, of the groundwater reservoir or subdivision and of the 28-17 facilities for development, production, transportation, 28-18 distribution, and use of the water, to determine the: 28-19 (A) quantity of water available for production 28-20 and use; and 28-21 (B) improvements, development, and recharging 28-22 needed by a reservoir or its subdivision; 28-23 (3) collect information under Section 36.107, Water 28-24 Code, including information regarding the use of groundwater, water 28-25 conservation, and the practicability of recharging a groundwater 28-26 reservoir; 28-27 (4) publish its plans and the information it develops, 29-1 bring them to the attention of the users of groundwater in the 29-2 council area, and encourage the users to adopt and use them, under 29-3 Section 36.110, Water Code; and 29-4 (5) develop programs to educate the public about the 29-5 aquifers in the management area, water conservation, and the 29-6 prevention of pollution of the aquifer. 29-7 (b) A unanimous vote of the council is required before the 29-8 council may take an action authorized by Subsection (a) of this 29-9 section. 29-10 (c) The district shall use existing research, surveys, and 29-11 information from state agencies or other sources to the greatest 29-12 extent possible for developing the management plan, conducting 29-13 research or other projects, and determining withdrawal limits and 29-14 equitable allocations between districts before conducting or 29-15 contracting for similar or complementary research, surveys, and 29-16 information. 29-17 SECTION 5.11. FUNDING. (a) The council shall be funded by 29-18 reasonable assessments of the owners of water wells in the 29-19 Carrizo-Wilcox aquifer that are capable of producing more than 29-20 25,000 gallons of water a day in proportion to the total amount of 29-21 water pumped from the aquifer. The districts shall make the 29-22 assessment. 29-23 (b) The assessments shall be made for: 29-24 (1) coordination and maintenance of a management plan 29-25 for the council's coordinating area; 29-26 (2) collection and maintenance of data required for 29-27 management of groundwater resources within its boundaries; 30-1 (3) coordination of the districts regarding management 30-2 plan issues; 30-3 (4) dissemination of information and monitoring of 30-4 implementation of the management plan among the districts; 30-5 (5) holding of regular council meetings; and 30-6 (6) contracting with any person, public or private, as 30-7 the council requires to accomplish the duties of this subsection. 30-8 (c) The council may be funded for services other than those 30-9 listed in Subsection (b) of this section, in any manner determined 30-10 appropriate by unanimous vote of the council or provided for by 30-11 interlocal agreement. 30-12 (d) The council shall seek to minimize its costs and 30-13 expenditures to the greatest extent feasible. 30-14 SECTION 5.12. SUITS. All courts shall take judicial notice 30-15 of the creation of the council and of its boundaries. Sections 30-16 36.066(f) and (g), Water Code, pertaining to suits, apply to the 30-17 council. 30-18 SECTION 5.13. CONTRACTS. The council may contract in the 30-19 name of the council. 30-20 SECTION 5.14. DISTRICT COORDINATION. (a) The council may 30-21 enter into interlocal agreements with its member districts to 30-22 provide for administrative assistance and other services identified 30-23 in Section 5.10 of this article. 30-24 (b) The council may coordinate the activities of the 30-25 districts to the extent authorized by the districts. 30-26 (c) The council may mediate disputes concerning the 30-27 regulation of groundwater along the boundaries of each district 31-1 and, in the event that the council is unable to reach a resolution, 31-2 it may petition the Texas Natural Resource Conservation Commission 31-3 for resolution of the dispute under Section 36.108, Water Code. 31-4 SECTION 5.15. COMPOSITION OF COUNCIL. (a) Each district 31-5 shall appoint three of its directors to serve on the council's 31-6 board of directors. The appointees to the council's board of 31-7 directors shall serve at the pleasure of their respective 31-8 districts. 31-9 (b) After the council is created and the districts select 31-10 their three representatives to serve on the council, the council 31-11 shall meet and elect a president, a vice president, a secretary, 31-12 and any other officers or assistant officers the council considers 31-13 necessary and shall begin to discharge its duties. 31-14 (c) A quorum for a council meeting is achieved only if: 31-15 (1) a majority of the membership of the council is 31-16 present; and 31-17 (2) each district has a representative at the meeting. 31-18 SECTION 5.16. COORDINATION WITH THE BLUEBONNET GROUNDWATER 31-19 CONSERVATION DISTRICT. (a) The council shall coordinate activities 31-20 with the Bluebonnet Groundwater Conservation District or any other 31-21 groundwater conservation district created in Grimes, Washington, 31-22 Austin, Waller, or Walker County if the groundwater conservation 31-23 district chooses to coordinate activities. 31-24 (b) The Bluebonnet Groundwater Conservation District or any 31-25 other groundwater conservation district created in Grimes, 31-26 Washington, Austin, Waller, or Walker County may appoint a 31-27 nonvoting representative to the council. 32-1 (c) The council may perform duties described in this article 32-2 for the Bluebonnet Groundwater Conservation District or any other 32-3 groundwater conservation district created in Grimes, Washington, 32-4 Austin, Waller, or Walker County through interlocal agreements. 32-5 ARTICLE 6. PROCEDURAL REQUIREMENTS; EFFECTIVE DATE 32-6 SECTION 6.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 32-7 (a) The proper and legal notice of the intention to introduce this 32-8 Act, setting forth the general substance of this Act, has been 32-9 published as provided by law, and the notice and a copy of this Act 32-10 have been furnished to all persons, agencies, officials, or 32-11 entities to which they are required to be furnished by the 32-12 constitution and other laws of this state, including the governor, 32-13 who has submitted the notice and Act to the Texas Natural Resource 32-14 Conservation Commission. 32-15 (b) The Texas Natural Resource Conservation Commission has 32-16 filed its recommendations relating to this Act with the governor, 32-17 the lieutenant governor, and the speaker of the house of 32-18 representatives within the required time. 32-19 (c) All requirements of the constitution and laws of this 32-20 state and the rules and procedures of the legislature with respect 32-21 to the notice, introduction, and passage of this Act are fulfilled 32-22 and accomplished. 32-23 (d) To the extent of any conflicts, this Act prevails over 32-24 any provision of Senate Bill No. 2, Acts of the 77th Legislature, 32-25 Regular Session, 2001. 32-26 SECTION 6.02. EFFECTIVE DATE. This Act takes effect 32-27 September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1784 was passed by the House on April 20, 2001, by a non-record vote; that the House refused to concur in Senate amendments to H.B. No. 1784 on May 23, 2001, and requested the appointment of a conference committee to consider the differences between the two houses; and that the House adopted the conference committee report on H.B. No. 1784 on May 27, 2001, by a non-record vote; and that the House adopted H.C.R. No. 334 authorizing certain corrections in H.B. No. 1784 on May 28, 2001, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 1784 was passed by the Senate, with amendments, on May 21, 2001, by a viva-voce vote; at the request of the House, the Senate appointed a conference committee to consider the differences between the two houses; and that the Senate adopted the conference committee report on H.B. No. 1784 on May 27, 2001, by a viva-voce vote; and that the Senate adopted H.C.R. No. 334 authorizing certain corrections in H.B. No. 1784 on May 28, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor