1-1     By:  Hope, Williams (Senate Sponsor - Bernsen)        H.B. No. 2362
 1-2           (In the Senate - Received from the House April 23, 2001;
 1-3     April 24, 2001, read first time and referred to Committee on
 1-4     Natural Resources; May 10, 2001, reported favorably by the
 1-5     following vote:  Yeas 4, Nays 0; May 10, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the creation, administration, powers, duties,
 1-9     operation, and financing of the Lone Star Groundwater Conservation
1-10     District.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. CREATION.  (a)  A groundwater conservation
1-13     district to be known as the Lone Star Groundwater Conservation
1-14     District is created in Montgomery County, subject to approval at a
1-15     confirmation election under Section 10 of this Act.  The district
1-16     is a governmental agency and a body politic and corporate.
1-17           (b)  The district is created under and is essential to
1-18     accomplish the purposes of Section 59, Article XVI, Texas
1-19     Constitution.
1-20           SECTION 2.  DEFINITIONS.  In this Act:
1-21                 (1)  "Board" means the board of directors of the
1-22     district.
1-23                 (2)  "District" means the Lone Star Groundwater
1-24     Conservation District.
1-25           SECTION 3.  BOUNDARIES.  The boundaries of the district are
1-26     coextensive with the boundaries of Montgomery County.
1-27           SECTION 4.  FINDING OF BENEFIT.  All of the land and other
1-28     property included within the boundaries of the district will be
1-29     benefited by the works and projects that are to be accomplished by
1-30     the district under powers conferred by Section 59, Article XVI,
1-31     Texas Constitution.  The district is created to serve a public use
1-32     and benefit.
1-33           SECTION 5.  GENERAL POWERS.  (a)  The district has all of the
1-34     rights, powers, privileges, authority, functions, and duties
1-35     provided by the general law of this state, including Chapter 36,
1-36     Water Code, applicable to groundwater conservation districts
1-37     created under Section 59, Article XVI, Texas Constitution, except
1-38     as provided by this Act.  This Act prevails over any provision of
1-39     general law that is in conflict or inconsistent with this Act.
1-40           (b)  Notwithstanding Subsection (a) of this section, the
1-41     following provisions prevail over a conflicting or inconsistent
1-42     provision of this Act:
1-43                 (1)  Sections 36.1071-36.108, Water Code;
1-44                 (2)  Sections 36.159-36.161, Water Code; and
1-45                 (3)  Subchapter I, Chapter 36, Water Code.
1-46           (c)  The rights, powers, privileges, authority, functions,
1-47     and duties of the district are subject to the continuing right of
1-48     supervision of the state to be exercised by and through the Texas
1-49     Natural Resource Conservation Commission.
1-50           SECTION 6.  BOARD OF DIRECTORS.  (a)  The district is
1-51     governed by a board of nine directors.
1-52           (b)  Initial directors serve until permanent directors are
1-53     appointed under Section 7 of this Act.
1-54           (c)  Permanent directors serve staggered four-year terms.
1-55           (d)  A person must be at least 18 years of age and a resident
1-56     of the district to be qualified to serve as director.
1-57           (e)  Each director must qualify to serve as a director in the
1-58     manner provided by Section 36.055, Water Code.
1-59           (f)  A director serves until the director's successor has
1-60     qualified.
1-61           (g)  A position on the board shall not be construed to be a
1-62     civil office of emolument for any purpose, including a purpose
1-63     described in Section 40, Article XVI, Texas Constitution.
1-64           (h)  A person who qualifies to serve on the board shall be
 2-1     qualified to serve as a director and participate in all votes
 2-2     relating to the business of the district regardless of any common
 2-3     law doctrine or any statutory conflicts of interest,
 2-4     incompatibility, or similar provision to the contrary.  Section
 2-5     36.058, Water Code, relating to conflicts of interest, does not
 2-6     apply to the district.
 2-7           SECTION 7.  APPOINTMENT OF DIRECTORS.  (a)  The members of
 2-8     the board are appointed as follows:
 2-9                 (1)  the Commissioners Court of Montgomery County shall
2-10     appoint two directors;
2-11                 (2)  the board of directors of the Montgomery County
2-12     Soil and Water Conservation District shall appoint one director;
2-13                 (3)  the board of directors of the San Jacinto River
2-14     Authority shall appoint one director;
2-15                 (4)  the mayor of the City of Conroe shall appoint one
2-16     director;
2-17                 (5)  the mayors of all of the incorporated
2-18     municipalities, other than the City of Conroe, located in whole or
2-19     in part in Montgomery County, jointly shall appoint one director;
2-20                 (6)  the board of trustees of the Woodlands Joint
2-21     Powers Agency shall appoint one director;
2-22                 (7)  the boards of directors of all of the municipal
2-23     utility districts located in whole or in part in Montgomery County
2-24     that are not members of the Woodlands Joint Powers Agency and the
2-25     district boundaries of which are located primarily to the east of
2-26     Interstate Highway 45 jointly shall appoint one director; and
2-27                 (8)  the boards of directors of all of the municipal
2-28     utility districts located in whole or in part in Montgomery County
2-29     that are not members of the Woodlands Joint Powers Agency and the
2-30     district boundaries of which are located primarily to the west of
2-31     Interstate Highway 45 jointly shall appoint one director.
2-32           (b)  Except as provided by Section 8 of this Act, directors
2-33     shall be appointed not later than the second Monday in January of
2-34     odd-numbered years.  Not later than the 60th day before that date,
2-35     the general manager of the district shall mail to each person who
2-36     is designated in Subsection (a) of this section to make
2-37     appointments in that particular year written notice that the
2-38     appointments are due.
2-39           (c)  The persons designated in Subsections (a)(1)-(4) and (6)
2-40     of this section shall make their appointments and submit in writing
2-41     the names of their appointments to the Commissioners Court of
2-42     Montgomery County.
2-43           (d)  Except as provided by Section 8 of this Act, the board
2-44     shall by rule adopt an appointment process providing for the
2-45     written submission of votes to the Commissioners Court of
2-46     Montgomery County and the district by those persons designated in
2-47     Subsections (a)(5) and (7)-(8) of this section.  The process
2-48     adopted by the district shall preserve the one vote per mayor and
2-49     per municipal utility district concept for the appointment of
2-50     initial directors established by Section 8 of this Act.
2-51           (e)  If there is a vacancy on the board, the appropriate
2-52     person designated under Subsection (a) of this section shall
2-53     appoint a director to serve the remainder of the term.
2-54           SECTION 8.  APPOINTMENT OF INITIAL DIRECTORS.  (a)  Not later
2-55     than the 30th day after the effective date of this Act, the persons
2-56     designated in Sections 7(a)(1)-(4) and (6) of this Act shall make
2-57     their appointments and submit in writing the names of their
2-58     appointments to the Commissioners Court of Montgomery County.
2-59           (b)  Not later than the 30th day after the effective date of
2-60     this Act, the county judge of Montgomery County shall set a date,
2-61     time, and place for a meeting of those persons designated in
2-62     Sections 7(a)(5) and (7)-(8) of this Act, or their representatives,
2-63     to appoint members for the board.  Not later than the 20th day
2-64     before the date of the meeting, the county judge shall give notice
2-65     of the meeting by mail.
2-66           (c)  The board of directors of each municipal utility
2-67     district designated to make appointments under Sections 7(a)(7)-(8)
2-68     of this Act shall designate a person to represent that municipal
2-69     utility district at the meeting called by the county judge under
 3-1     Subsection (b) of this section.  Each representative of a municipal
 3-2     utility district present at the meeting is entitled to one vote.
 3-3           (d)  Each mayor designated  under Section 7(a)(5) of this Act
 3-4     and present at the meeting called by the county judge is entitled
 3-5     to one vote.
 3-6           (e)  The county judge shall preside at the meeting and shall
 3-7     provide to the commissioners court the names of those persons
 3-8     appointed as directors at the meeting.
 3-9           (f)  As soon as practicable after all of the directors have
3-10     been appointed, a majority of directors shall convene an
3-11     organizational meeting of the district at a location within the
3-12     district agreeable to a majority of the directors.  If no location
3-13     can be agreed on, the organizational meeting of the directors shall
3-14     be at the Montgomery County Courthouse.
3-15           SECTION 9.  TERMS OF OFFICE FOR INITIAL DIRECTORS.  (a)  The
3-16     following initial directors shall serve from the date of
3-17     appointment until January 31, 2003:
3-18                 (1)  one director appointed by the Commissioners Court
3-19     of Montgomery County;
3-20                 (2)  the director appointed by the board of directors
3-21     of the Montgomery County Soil and Water Conservation District;
3-22                 (3)  the director appointed by the Woodlands Joint
3-23     Powers Agency;
3-24                 (4)  the director jointly appointed by the boards of
3-25     directors of all of the municipal utility districts located in
3-26     whole or in part in Montgomery County that are not members of the
3-27     Woodlands Joint Powers Agency and the district boundaries of which
3-28     are located primarily to the east of Interstate Highway 45; and
3-29                 (5)  the director jointly appointed by the boards of
3-30     directors of all of the municipal utility districts located in
3-31     whole or in part in Montgomery County that are not members of the
3-32     Woodlands Joint Powers Agency and the district boundaries of which
3-33     are located primarily to the west of Interstate Highway 45.
3-34           (b)  The following initial directors shall serve from the
3-35     date of appointment until January 31, 2005:
3-36                 (1)  one director appointed by the Commissioners Court
3-37     of Montgomery County;
3-38                 (2)  the director appointed by the board of directors
3-39     of the San Jacinto River Authority;
3-40                 (3)  the director appointed by the mayor of the City of
3-41     Conroe; and
3-42                 (4)  the director appointed by the mayors of all of the
3-43     incorporated municipalities, other than the City of Conroe, located
3-44     in whole or in part in Montgomery County.
3-45           (c)  The Commissioners Court of Montgomery County shall
3-46     designate which of the directors it appoints shall serve until
3-47     January 31, 2003, and which of the directors shall serve until
3-48     January 31, 2005.
3-49           SECTION 10.  CONFIRMATION ELECTION.  (a)  The initial board
3-50     shall call and hold an election to confirm the establishment of the
3-51     district.
3-52           (b)  Section 41.001(a), Election Code, does not apply to a
3-53     confirmation election held as provided by this section.
3-54           (c)  Except as provided by this Act, the initial board shall
3-55     conduct a confirmation election in the manner set forth for
3-56     confirmation elections held by temporary directors under Sections
3-57     36.017(b), (c), and (e)-(h), Water Code, and the Election Code.
3-58           (d)  Notwithstanding Section 36.017(d), Water Code, the
3-59     ballot for the election must be printed to provide for voting for
3-60     or against the proposition: "The creation of a nontaxing
3-61     groundwater conservation district in Montgomery County to be known
3-62     as the Lone Star Groundwater Conservation District."
3-63           SECTION 11.  DISTRICT REVENUES.  (a)  The district does not
3-64     have the authority granted by Sections 36.020 and 36.201-36.204,
3-65     Water Code.
3-66           (b)  The district may assess production fees based on the
3-67     amount of water authorized by permit to be withdrawn from a well or
3-68     the amount actually withdrawn.  Notwithstanding Section 36.205(a),
3-69     Water Code, the district may use revenues generated by production
 4-1     fees for any district purpose.
 4-2           (c)  The district may not, in a manner inconsistent with
 4-3     rules and fees applied to production and use occurring wholly
 4-4     within the boundaries of the district, regulate production of water
 4-5     or assess fees against the transfer of water:
 4-6                 (1)  produced in an area of a municipal utility
 4-7     district that is located inside the district boundaries; and
 4-8                 (2)  transferred to an area within the same municipal
 4-9     utility district but that is located outside the district
4-10     boundaries.
4-11           (d)  The district shall assess production fees for
4-12     horticultural uses at the same rate as fees assessed for other
4-13     agricultural uses.
4-14           (e)  The district may assess other fees as authorized by
4-15     Chapter 36, Water Code.
4-16           SECTION 12.  CONTRACTS.  The district may enter into
4-17     contracts with any person or any public or private entity for any
4-18     purpose otherwise authorized by law.
4-19           SECTION 13.  COORDINATION WITH OTHER DISTRICTS.  The district
4-20     shall coordinate with all adjacent groundwater conservation
4-21     districts in the development of its management plan under Section
4-22     36.1071, Water Code, and as otherwise provided by general law.  On
4-23     the district's completion of its management plan or the district's
4-24     adoption of any revisions to the plan, the district shall forward a
4-25     copy of the plan to all adjacent groundwater conservation
4-26     districts.
4-27           SECTION 14.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a)
4-28     The proper and legal notice of the intention to introduce this Act,
4-29     setting forth the general substance of this Act, has been published
4-30     as provided by law, and the notice and a copy of this Act have been
4-31     furnished to all persons, agencies, officials, or entities to which
4-32     they are required to be furnished by the constitution and other
4-33     laws of this state, including the governor, who has submitted the
4-34     notice and the Act to the Texas Natural Resource Conservation
4-35     Commission.
4-36           (b)  The Texas Natural Resource Conservation Commission has
4-37     filed its recommendations relating to this Act with the governor,
4-38     lieutenant governor, and speaker of the house of representatives
4-39     within the required time.
4-40           (c)  All requirements of the constitution and laws of this
4-41     state and of the rules and procedures of the legislature with
4-42     respect to the notice, introduction, and passage of this Act are
4-43     fulfilled and accomplished.
4-44           SECTION 15.  EFFECTIVE DATE.  This Act takes effect September
4-45     1, 2001.
4-46                                  * * * * *