By Kolkhorst H.B. No. 1844 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. 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 Bluebonnet 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 Bluebonnet Groundwater Conservation 1-8 District, is created in Grimes, Washington, Waller, and Austin 1-9 counties, subject to approval at a confirmation election under 1-10 Section 15 of this Act. The district is a governmental agency and 1-11 a body politic and 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; and 1-15 (c) The purpose of this Act is to create a locally 1-16 controlled groundwater district in order to protect, recharge, and 1-17 prevent the waste of groundwater, and to control subsidence caused 1-18 by withdrawal of water from the groundwater reservoirs in the area, 1-19 and to regulate the transport of water out of the boundaries of the 1-20 district; 1-21 SECTION 2. DEFINITION. In this Act, "district" means the 1-22 Bluebonnet Groundwater Conservation District. 2-1 SECTION 3. BOUNDARIES. The boundaries of the district are 2-2 coextensive with the boundaries of Grimes, Washington, Waller, and 2-3 Austin counties. 2-4 SECTION 4. FINDING OF BENEFIT. All of the land and other 2-5 property included within the boundaries of the district will be 2-6 benefited by the works and projects that are to be accomplished by 2-7 the district under powers conferred by Section 59, Article XVI, 2-8 Texas Constitution. The district is created to serve a public use 2-9 and benefit. 2-10 SECTION 5. GENERAL POWERS. (a) Except as otherwise provided 2-11 by this Act, the district has all the rights, powers, privileges, 2-12 authority, functions, and duties provided by the general law of 2-13 this state, including Chapter 36, Water Code, applicable to 2-14 groundwater conservation districts created under Section 59, 2-15 Article XVI, Texas Constitution. This Act prevails over any 2-16 provision of general law, including Chapter 36, Water Code, that is 2-17 in conflict or is inconsistent with this Act. 2-18 (b) The district does not have the authority granted by the 2-19 following provisions of Chapter 36, Water Code: 2-20 (1) Section 36.105, relating to eminent domain; and 2-21 (2) Sections 36.020 and 36.201-36.204, relating to 2-22 taxes. 2-23 SECTION 6. FEES. (a) The board of directors of the district 2-24 by rule may impose reasonable fees on each well for which a permit 2-25 is issued by the district and that is not exempt from regulation by 2-26 the district. A fee may be based on the size of column pipe used 3-1 by the well or on the actual, authorized, or anticipated amount of 3-2 water to be withdrawn from the well. 3-3 (b) Fees shall not exceed: 3-4 (1) one dollar per acre foot for water used for 3-5 irrigating agricultural crops; or 3-6 (2) 17 cents per thousand gallons for water used for 3-7 any other purpose. 3-8 (c) In addition to the fee authorized under Subsection (b) 3-9 of this section, the district may assess a fee on groundwater from 3-10 a well that is produced for transport outside the district. The 3-11 combined fees may not exceed the limit on a fee amount set by 3-12 Section 36.205(c), Water Code. 3-13 (d) Fees authorized by this section may be assessed annually 3-14 and may be used to fund the cost of District operations and 3-15 expenses of the district's or council's operations. 3-16 SECTION 7. EXEMPTIONS. (a) Pursuant to Section 36.117, 3-17 Water Code, as amended, a district may exempt wells from the 3-18 requirements to obtain a drilling permit, an operating permit, or 3-19 any other permit required by this chapter or the district's rules. 3-20 A district may not require a permit for: 3-21 (1) drilling or producing from a well either drilled, 3-22 completed, or equipped so that it is incapable of producing more 3-23 than 25,000 gallons of groundwater a day; 3-24 (2) the drilling or alteration of the size of a well 3-25 or to restrict the production of a well if the water produced or to 3-26 be produced from the well is used or to be used to supply the 4-1 domestic needs of 10 or fewer households and a person who is a 4-2 member of each household is either the owner of the well, a person 4-3 related to the owner or a member of the owner's household within 4-4 the second degree by consanguinity, or an employee of the owner; 4-5 (3) the drilling or alteration of the size of a well 4-6 or to restrict the production from the well if the water produced 4-7 or to be produced from the well is used or to be used to provide 4-8 water for feeding livestock and poultry connected with farming, 4-9 ranching, or dairy enterprises; or 4-10 (4) water wells to supply water for hydrocarbon 4-11 production activities, regardless of whether those wells are 4-12 producing, that are associated with any well permitted by the 4-13 Railroad Commission of Texas drilled before September 1, 1985. 4-14 (b) The board shall adopt rules determining the 4-15 applicability of Subsection (a)(3) to facilities used primarily for 4-16 feeding livestock. 4-17 (c) The district shall not deny the owner of a tract of 4-18 land, or his lessee, who has no well equipped to produce more than 4-19 25,000 gallons a day on the tract, either a permit to drill a well 4-20 on his land or the privilege to produce groundwater from his land, 4-21 subject to the rules of the district. 4-22 (d) A district may not restrict the production of any well 4-23 equipped to produce 25,000 gallons or less a day. 4-24 (e) Water wells exempted under this section shall be 4-25 equipped and maintained so as to conform to the district's rules 4-26 requiring installation of casing, pipe, and fittings to prevent the 5-1 escape of groundwater from a groundwater reservoir to any reservoir 5-2 not containing groundwater and to prevent the pollution or harmful 5-3 alteration of the character of the water in any groundwater 5-4 reservoir. 5-5 (f) A district shall require water wells exempted under this 5-6 section to be registered with the district before drilling. All 5-7 exempt water wells shall be equipped and maintained so as to 5-8 conform to the district's rules requiring installation of casing, 5-9 pipe, and fittings to prevent the escape of groundwater from a 5-10 groundwater reservoir to any reservoir not containing groundwater 5-11 and to prevent the pollution or harmful alteration of the character 5-12 of the water in any groundwater reservoir. 5-13 (g) A well to supply water for a subdivision of land for 5-14 which a plat approval is required by law is not exempted under this 5-15 section. 5-16 SECTION 8. MINING EXEMPTION. (a) A groundwater well that is 5-17 used by a mining operation and permitted by the Railroad Commission 5-18 of Texas is exempt from permit requirements, regulations, and fees 5-19 imposed by the district if the amount of water withdrawn from the 5-20 well is not greater than the amount required by the mining 5-21 operation for mining purposes. A mining operation that withdraws 5-22 the amount of water required for mining purposes, uses that water 5-23 for mining purposes, and then puts that water to another use does 5-24 not forfeit the exemption granted by this section, but any 5-25 production of water in addition to water withdrawn for mining 5-26 purposes is subject to district permitting and regulation. 6-1 (b) The district may require a well used for mining purposes 6-2 and exempt under this section to comply with the spacing 6-3 requirements of the district if any withdrawals from that well are 6-4 in addition to withdrawals for mining purposes. 6-5 (c) A mining operation may voluntarily waive the exemption 6-6 granted by this section. 6-7 SECTION 9. MANAGEMENT PLAN. The district shall develop or 6-8 contract to develop its own management plan under Section 36.1071, 6-9 Water Code. 6-10 SECTION 10. PERMITTING. (a) The district shall issue 6-11 permits for wells based on the consideration of whether: 6-12 (1) the application conforms to the requirements 6-13 prescribed by Chapter 36, Water Code, and is accompanied by the 6-14 prescribed fees; 6-15 (2) the proposed use of water is consistent with the 6-16 district's certified water management plan; 6-17 (3) the proposed use of water is dedicated to any 6-18 beneficial use; 6-19 (4) the applicant has agreed to avoid waste and 6-20 achieve water conservation; and 6-21 (5) the applicant has agreed that reasonable diligence 6-22 will be used to protect groundwater quality and that the applicant 6-23 will follow well plugging guidelines at the time of well closure. 6-24 (6) the proposed use would not present the possibility 6-25 of unreasonable interference with the production of water from 6-26 exempt, existing, or previously permitted wells; 7-1 (7) the proposed use would not unreasonably interfere 7-2 with an adjoining landowner's ability to produce water from his 7-3 property. 7-4 SECTION 11. COORDINATION OF ACTIVITIES WITH OTHER ENTITIES. 7-5 (a) The district may coordinate activities with the Central 7-6 Carrizo-Wilcox Coordinating Council and may appoint a nonvoting 7-7 representative to the Central Carrizo-Wilcox Coordinating Council. 7-8 (b) The district may coordinate activities with the 7-9 Harris-Galveston Coastal Subsidence District or with other 7-10 groundwater conservation districts to manage portions of the Gulf 7-11 Coast Aquifer. 7-12 SECTION 12. BOARD OF DIRECTORS. (a) The district is 7-13 governed by a board of directors appointed as provided by Section 7-14 13. 7-15 (b) Initial directors serve until permanent directors are 7-16 appointed under Section 13 of this Act and qualified as required by 7-17 Subsection (d) of this section. 7-18 (c) Permanent directors serve four-year staggered terms. 7-19 (d) Each director must qualify to serve as a director in the 7-20 manner provided by Section 36.055, Water Code. 7-21 (e) A director serves until the director's successor has 7-22 qualified. 7-23 (f) A director may serve consecutive terms. 7-24 (g) If there is a vacancy on the board, the governing body 7-25 of the entity that appointed the director who vacated the office 7-26 shall appoint a director to serve the remainder of the term. 8-1 (h) Directors are not entitled to receive compensation for 8-2 serving as a director but may be reimbursed for actual, reasonable 8-3 expenses incurred in the discharge of official duties. 8-4 (i) A majority vote of a quorum is required for board 8-5 action. If there is a tie vote, the proposed action fails. 8-6 SECTION 13. APPOINTMENT OF DIRECTORS. (a) The commissioners 8-7 courts of the counties within the district shall each appoint an 8-8 equal number of directors as follows: 8-9 (1) if the district consists of four counties, the 8-10 board consists of 12 directors, with each county commissioners 8-11 court making three appointments, of which 8-12 (A) one must represent the interests public 8-13 water suppliers in the county, or both; 8-14 (B) one must represent agriculture interests in 8-15 the county; and 8-16 (C) one must represent industrial interests in 8-17 the county. 8-18 (2) if the district consists of three counties, the 8-19 board consists of nine directors, with each county commissioners 8-20 court making three appointments, of which 8-21 (A) one must represent the interests public 8-22 water suppliers in the county, or both; 8-23 (B) one must represent agriculture interests in 8-24 the county; and 8-25 (C) one must represent industrial interests in 8-26 the county. 9-1 (3) if the district consists of two counties, the 9-2 board consists of eight directors, with each county commissioners 9-3 court making four appointments, of which 9-4 (A) one must represent the interests of 9-5 municipalities in the county; 9-6 (B) one must represent agriculture interests in 9-7 the county; 9-8 (C) one must represent industrial interests in 9-9 the county; and 9-10 (D) one must represent the interests of rural 9-11 water suppliers in the county. 9-12 (4) if the district consists of one county, the board 9-13 of directors consists of eight directors, appointed by the county 9-14 commissioners court, of which 9-15 (A) one must represent municipal interests; 9-16 (B) two must represent agricultural interests; 9-17 (C) two must represent industrial interests; and 9-18 (D) two must represent rural water suppliers' 9-19 interests. 9-20 (E) one must represent the interests of the 9-21 county at large. 9-22 (b) The commissioners courts of the counties within the 9-23 district shall each appoint the appropriate number of initial 9-24 directors as soon as practicable following the effective date of 9-25 this Act, but not later than the 90th day after the effective date 9-26 of this Act. 10-1 (c) The initial directors shall draw lots to determine their 10-2 terms. A simple majority of the initial directors if an odd number 10-3 are appointed or half of the initial directors if an even number 10-4 are appointed serve terms that expire on the second anniversary of 10-5 the date on which all initial directors have qualified as required 10-6 by Section 12. The remaining initial directors serve terms that 10-7 expire on the fourth anniversary of the date on which all initial 10-8 directors have qualified as required by Section 12. On the second 10-9 anniversary of the date on which all initial directors have 10-10 qualified as required by Section 12 and every two years after that 10-11 date, the appropriate commissioners courts shall appoint the 10-12 appropriate number of permanent directors. 10-13 SECTION 14. ORGANIZATION MEETING. As soon as practicable 10-14 after all the initial directors have been appointed and have 10-15 qualified as provided in this Act, a majority of the directors 10-16 shall convene the organizational meeting of the district at a 10-17 location within the district agreeable to a majority of the 10-18 directors. If no location can be agreed on, the organizational 10-19 meeting of the directors shall be at the Washington County 10-20 Courthouse. 10-21 SECTION 15. CONFIRMATION ELECTION. (a) The initial board of 10-22 directors shall call and hold, on the same date in each county to 10-23 be included in the district, an election to confirm the creation of 10-24 the district. 10-25 (b) Except as provided by this section, a confirmation 10-26 election must be conducted as provided by Sections 36.017, 36.018, 11-1 and 36.019, Water Code, and the Election Code. 11-2 (c) If the majority of qualified voters in a county who vote 11-3 in the election to confirm the creation of the district, that 11-4 county is included in the district. If the majority of qualified 11-5 voters in a county who vote in the election vote not to confirm the 11-6 creation of the district, that county is excluded from the 11-7 district. 11-8 (d) If the creation of the district is not confirmed by an 11-9 election held under this section before the second anniversary of 11-10 the effective date of this Act, the district is dissolved and this 11-11 Act expires on that date. 11-12 SECTION 16. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a) 11-13 The proper and legal notice of the intention to introduce this Act, 11-14 setting forth the general substance of this Act, has been published 11-15 as provided by law, and the notice and a copy of this Act have been 11-16 furnished to all persons, agencies, officials, or entities to which 11-17 they are required to be furnished by the constitution and other 11-18 laws of this state, including the governor, who has submitted the 11-19 notice and Act to the Texas Natural Resource Conservation 11-20 Commission. 11-21 (b) The Texas Natural Resource Conservation Commission has 11-22 filed its recommendations relating to this Act with the governor 11-23 and the speaker of the house of representatives within the required 11-24 time. 11-25 (c) All requirements of the constitution and laws of this 11-26 state and the rules and procedures of the legislature with respect 12-1 to the notice, introduction, and passage of this Act are fulfilled 12-2 and accomplished. 12-3 SECTION 17. EFFECTIVE DATE. This Act takes effect September 12-4 1, 2001.