1-1 AN ACT 1-2 relating to the creation, administration, powers, duties, 1-3 operation, and financing of the Lone Star 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 Lone Star Groundwater Conservation 1-8 District is created in Montgomery County, subject to approval at a 1-9 confirmation election under Section 10 of this Act. The district 1-10 is a governmental agency and a body politic and corporate. 1-11 (b) The district is created under and is essential to 1-12 accomplish the purposes of Section 59, Article XVI, Texas 1-13 Constitution. 1-14 SECTION 2. DEFINITIONS. In this Act: 1-15 (1) "Board" means the board of directors of the 1-16 district. 1-17 (2) "District" means the Lone Star Groundwater 1-18 Conservation District. 1-19 SECTION 3. BOUNDARIES. The boundaries of the district are 1-20 coextensive with the boundaries of Montgomery County. 1-21 SECTION 4. FINDING OF BENEFIT. All of the land and other 1-22 property included within the boundaries of the district will be 1-23 benefited by the works and projects that are to be accomplished by 1-24 the district under powers conferred by Section 59, Article XVI, 2-1 Texas Constitution. The district is created to serve a public use 2-2 and benefit. 2-3 SECTION 5. GENERAL POWERS. (a) The district has all of the 2-4 rights, powers, privileges, authority, functions, and duties 2-5 provided by the general law of this state, including Chapter 36, 2-6 Water Code, applicable to groundwater conservation districts 2-7 created under Section 59, Article XVI, Texas Constitution, except 2-8 as provided by this Act. This Act prevails over any provision of 2-9 general law that is in conflict or inconsistent with this Act. 2-10 (b) Notwithstanding Subsection (a) of this section, the 2-11 following provisions prevail over a conflicting or inconsistent 2-12 provision of this Act: 2-13 (1) Sections 36.1071-36.108, Water Code; 2-14 (2) Sections 36.159-36.161, Water Code; and 2-15 (3) Subchapter I, Chapter 36, Water Code. 2-16 (c) The rights, powers, privileges, authority, functions, 2-17 and duties of the district are subject to the continuing right of 2-18 supervision of the state to be exercised by and through the Texas 2-19 Natural Resource Conservation Commission. 2-20 SECTION 6. BOARD OF DIRECTORS. (a) The district is 2-21 governed by a board of nine directors. 2-22 (b) Initial directors serve until permanent directors are 2-23 appointed under Section 7 of this Act. 2-24 (c) Permanent directors serve staggered four-year terms. 2-25 (d) A person must be at least 18 years of age and a resident 2-26 of the district to be qualified to serve as director. 2-27 (e) Each director must qualify to serve as a director in the 3-1 manner provided by Section 36.055, Water Code. 3-2 (f) A director serves until the director's successor has 3-3 qualified. 3-4 (g) A position on the board shall not be construed to be a 3-5 civil office of emolument for any purpose, including a purpose 3-6 described in Section 40, Article XVI, Texas Constitution. 3-7 (h) A person who qualifies to serve on the board shall be 3-8 qualified to serve as a director and participate in all votes 3-9 relating to the business of the district regardless of any common 3-10 law doctrine or any statutory conflicts of interest, 3-11 incompatibility, or similar provision to the contrary. Section 3-12 36.058, Water Code, relating to conflicts of interest, does not 3-13 apply to the district. 3-14 SECTION 7. APPOINTMENT OF DIRECTORS. (a) The members of 3-15 the board are appointed as follows: 3-16 (1) the Commissioners Court of Montgomery County shall 3-17 appoint two directors; 3-18 (2) the board of directors of the Montgomery County 3-19 Soil and Water Conservation District shall appoint one director; 3-20 (3) the board of directors of the San Jacinto River 3-21 Authority shall appoint one director; 3-22 (4) the mayor of the City of Conroe shall appoint one 3-23 director; 3-24 (5) the mayors of all of the incorporated 3-25 municipalities, other than the City of Conroe, located in whole or 3-26 in part in Montgomery County, jointly shall appoint one director; 3-27 (6) the board of trustees of the Woodlands Joint 4-1 Powers Agency shall appoint one director; 4-2 (7) the boards of directors of all of the municipal 4-3 utility districts located in whole or in part in Montgomery County 4-4 that are not members of the Woodlands Joint Powers Agency and the 4-5 district boundaries of which are located primarily to the east of 4-6 Interstate Highway 45 jointly shall appoint one director; and 4-7 (8) the boards of directors of all of the municipal 4-8 utility districts located in whole or in part in Montgomery County 4-9 that are not members of the Woodlands Joint Powers Agency and the 4-10 district boundaries of which are located primarily to the west of 4-11 Interstate Highway 45 jointly shall appoint one director. 4-12 (b) Except as provided by Section 8 of this Act, directors 4-13 shall be appointed not later than the second Monday in January of 4-14 odd-numbered years. Not later than the 60th day before that date, 4-15 the general manager of the district shall mail to each person who 4-16 is designated in Subsection (a) of this section to make 4-17 appointments in that particular year written notice that the 4-18 appointments are due. 4-19 (c) The persons designated in Subsections (a)(1)-(4) and (6) 4-20 of this section shall make their appointments and submit in writing 4-21 the names of their appointments to the Commissioners Court of 4-22 Montgomery County. 4-23 (d) Except as provided by Section 8 of this Act, the board 4-24 shall by rule adopt an appointment process providing for the 4-25 written submission of votes to the Commissioners Court of 4-26 Montgomery County and the district by those persons designated in 4-27 Subsections (a)(5) and (7)-(8) of this section. The process 5-1 adopted by the district shall preserve the one vote per mayor and 5-2 per municipal utility district concept for the appointment of 5-3 initial directors established by Section 8 of this Act. 5-4 (e) If there is a vacancy on the board, the appropriate 5-5 person designated under Subsection (a) of this section shall 5-6 appoint a director to serve the remainder of the term. 5-7 SECTION 8. APPOINTMENT OF INITIAL DIRECTORS. (a) Not later 5-8 than the 30th day after the effective date of this Act, the persons 5-9 designated in Sections 7(a)(1)-(4) and (6) of this Act shall make 5-10 their appointments and submit in writing the names of their 5-11 appointments to the Commissioners Court of Montgomery County. 5-12 (b) Not later than the 30th day after the effective date of 5-13 this Act, the county judge of Montgomery County shall set a date, 5-14 time, and place for a meeting of those persons designated in 5-15 Sections 7(a)(5) and (7)-(8) of this Act, or their representatives, 5-16 to appoint members for the board. Not later than the 20th day 5-17 before the date of the meeting, the county judge shall give notice 5-18 of the meeting by mail. 5-19 (c) The board of directors of each municipal utility 5-20 district designated to make appointments under Sections 7(a)(7)-(8) 5-21 of this Act shall designate a person to represent that municipal 5-22 utility district at the meeting called by the county judge under 5-23 Subsection (b) of this section. Each representative of a municipal 5-24 utility district present at the meeting is entitled to one vote. 5-25 (d) Each mayor designated under Section 7(a)(5) of this Act 5-26 and present at the meeting called by the county judge is entitled 5-27 to one vote. 6-1 (e) The county judge shall preside at the meeting and shall 6-2 provide to the commissioners court the names of those persons 6-3 appointed as directors at the meeting. 6-4 (f) As soon as practicable after all of the directors have 6-5 been appointed, a majority of directors shall convene an 6-6 organizational meeting of the district at a location within the 6-7 district agreeable to a majority of the directors. If no location 6-8 can be agreed on, the organizational meeting of the directors shall 6-9 be at the Montgomery County Courthouse. 6-10 SECTION 9. TERMS OF OFFICE FOR INITIAL DIRECTORS. (a) The 6-11 following initial directors shall serve from the date of 6-12 appointment until January 31, 2003: 6-13 (1) one director appointed by the Commissioners Court 6-14 of Montgomery County; 6-15 (2) the director appointed by the board of directors 6-16 of the Montgomery County Soil and Water Conservation District; 6-17 (3) the director appointed by the Woodlands Joint 6-18 Powers Agency; 6-19 (4) the director jointly appointed by the boards of 6-20 directors of all of the municipal utility districts located in 6-21 whole or in part in Montgomery County that are not members of the 6-22 Woodlands Joint Powers Agency and the district boundaries of which 6-23 are located primarily to the east of Interstate Highway 45; and 6-24 (5) the director jointly appointed by the boards of 6-25 directors of all of the municipal utility districts located in 6-26 whole or in part in Montgomery County that are not members of the 6-27 Woodlands Joint Powers Agency and the district boundaries of which 7-1 are located primarily to the west of Interstate Highway 45. 7-2 (b) The following initial directors shall serve from the 7-3 date of appointment until January 31, 2005: 7-4 (1) one director appointed by the Commissioners Court 7-5 of Montgomery County; 7-6 (2) the director appointed by the board of directors 7-7 of the San Jacinto River Authority; 7-8 (3) the director appointed by the mayor of the City of 7-9 Conroe; and 7-10 (4) the director appointed by the mayors of all of the 7-11 incorporated municipalities, other than the City of Conroe, located 7-12 in whole or in part in Montgomery County. 7-13 (c) The Commissioners Court of Montgomery County shall 7-14 designate which of the directors it appoints shall serve until 7-15 January 31, 2003, and which of the directors shall serve until 7-16 January 31, 2005. 7-17 SECTION 10. CONFIRMATION ELECTION. (a) The initial board 7-18 shall call and hold an election to confirm the establishment of the 7-19 district. 7-20 (b) Section 41.001(a), Election Code, does not apply to a 7-21 confirmation election held as provided by this section. 7-22 (c) Except as provided by this Act, the initial board shall 7-23 conduct a confirmation election in the manner set forth for 7-24 confirmation elections held by temporary directors under Sections 7-25 36.017(b), (c), and (e)-(h), Water Code, and the Election Code. 7-26 (d) Notwithstanding Section 36.017(d), Water Code, the 7-27 ballot for the election must be printed to provide for voting for 8-1 or against the proposition: "The creation of a nontaxing 8-2 groundwater conservation district in Montgomery County to be known 8-3 as the Lone Star Groundwater Conservation District." 8-4 SECTION 11. DISTRICT REVENUES. (a) The district does not 8-5 have the authority granted by Sections 36.020 and 36.201-36.204, 8-6 Water Code. 8-7 (b) The district may assess production fees based on the 8-8 amount of water authorized by permit to be withdrawn from a well or 8-9 the amount actually withdrawn. Notwithstanding Section 36.205(a), 8-10 Water Code, the district may use revenues generated by production 8-11 fees for any district purpose. 8-12 (c) The district may not, in a manner inconsistent with 8-13 rules and fees applied to production and use occurring wholly 8-14 within the boundaries of the district, regulate production of water 8-15 or assess fees against the transfer of water: 8-16 (1) produced in an area of a municipal utility 8-17 district that is located inside the district boundaries; and 8-18 (2) transferred to an area within the same municipal 8-19 utility district but that is located outside the district 8-20 boundaries. 8-21 (d) The district shall assess production fees for 8-22 horticultural uses at the same rate as fees assessed for other 8-23 agricultural uses. 8-24 (e) The district may assess other fees as authorized by 8-25 Chapter 36, Water Code. 8-26 SECTION 12. CONTRACTS. The district may enter into 8-27 contracts with any person or any public or private entity for any 9-1 purpose otherwise authorized by law. 9-2 SECTION 13. COORDINATION WITH OTHER DISTRICTS. The district 9-3 shall coordinate with all adjacent groundwater conservation 9-4 districts in the development of its management plan under Section 9-5 36.1071, Water Code, and as otherwise provided by general law. On 9-6 the district's completion of its management plan or the district's 9-7 adoption of any revisions to the plan, the district shall forward a 9-8 copy of the plan to all adjacent groundwater conservation 9-9 districts. 9-10 SECTION 14. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a) 9-11 The proper and legal notice of the intention to introduce this Act, 9-12 setting forth the general substance of this Act, has been published 9-13 as provided by law, and the notice and a copy of this Act have been 9-14 furnished to all persons, agencies, officials, or entities to which 9-15 they are required to be furnished by the constitution and other 9-16 laws of this state, including the governor, who has submitted the 9-17 notice and the Act to the Texas Natural Resource Conservation 9-18 Commission. 9-19 (b) The Texas Natural Resource Conservation Commission has 9-20 filed its recommendations relating to this Act with the governor, 9-21 lieutenant governor, and speaker of the house of representatives 9-22 within the required time. 9-23 (c) All requirements of the constitution and laws of this 9-24 state and of the rules and procedures of the legislature with 9-25 respect to the notice, introduction, and passage of this Act are 9-26 fulfilled and accomplished. 9-27 SECTION 15. EFFECTIVE DATE. This Act takes effect September 10-1 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2362 was passed by the House on April 20, 2001, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 2362 was passed by the Senate on May 17, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not voting. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor