By McReynolds, Christian                              H.B. No. 2572
         77R11285 QS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, administration, powers, duties,
 1-3     operations, and financing of the Pineywoods Groundwater
 1-4     Conservation 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 Pineywoods Groundwater Conservation
 1-8     District, is created in Angelina and Nacogdoches counties subject
 1-9     to approval at a confirmation election held under Section 10 of
1-10     this Act.  The district is a governmental agency and body politic
1-11     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.
1-15           SECTION 2.  DEFINITION.  In this Act, "district" means the
1-16     Pineywoods Groundwater Conservation District.
1-17           SECTION 3.  BOUNDARIES.  The boundaries of the district are
1-18     coextensive with the boundaries of Angelina and Nacogdoches
1-19     counties.
1-20           SECTION 4.  FINDING OF BENEFIT.  All of the land and other
1-21     property included within the boundaries of the district will be
1-22     benefited by the works and projects that are to be accomplished by
1-23     the district under powers conferred by Section 59, Article XVI,
1-24     Texas Constitution.  The district is created to serve a public use
 2-1     and benefit.
 2-2           SECTION 5.  POWERS.  (a)  Except as provided by this section,
 2-3     the district has all of the rights, powers, privileges, authority,
 2-4     functions, and duties provided by the general law of this state,
 2-5     including Chapter 36, Water Code, applicable to groundwater
 2-6     conservation districts created under Section 59, Article XVI, Texas
 2-7     Constitution.  Chapter 49, Water Code, does not apply to the
 2-8     district.  This Act prevails over any provision of general law that
 2-9     is in conflict or inconsistent with this Act.
2-10           (b)  The district by rule may require a person to obtain a
2-11     permit from the district for the transfer of groundwater out of the
2-12     district consistent with Section 36.122, Water Code, and may
2-13     regulate the terms on which a permit holder under those rules may
2-14     conduct such a transfer. A retail public utility as defined by
2-15     Section 13.002, Water Code, is not required to obtain a permit to
2-16     transfer groundwater out of the district if:
2-17                 (1)  the source of the water is one or more wells
2-18     located within the district; and
2-19                 (2)  the water is used by the retail public utility to
2-20     provide retail water utility service, as defined by Section 13.002,
2-21     Water Code.
2-22           (c)  The district may not require a permit for a well
2-23     incapable of producing more than 25,000 gallons of groundwater a
2-24     day.
2-25           (d)  The board of directors of the district may not impose a
2-26     tax to pay the maintenance and operating expenses of the district
2-27     until the tax is approved by a majority of the voters voting at an
 3-1     election in the district held for that purpose.  An election under
 3-2     this section may not be held concurrently with the election to
 3-3     confirm the establishment of the district.
 3-4           (e)  An election under Subsection (d) of this section must be
 3-5     held on the first Tuesday after the first Monday in November of an
 3-6     even-numbered year.
 3-7           (f)  The board of directors of the district by rule may
 3-8     impose reasonable fees on each well for which a permit is issued by
 3-9     the district and which is not exempt from regulation by the
3-10     district.  The fee shall be based on the amount of water to be
3-11     withdrawn from the well and may not exceed $0.01 per thousand
3-12     gallons for groundwater withdrawn for any purpose.
3-13           (g)  A well meeting the criteria established under Section
3-14     36.117, Water Code, including a well used for dewatering and
3-15     monitoring in the production of coal and lignite, is exempt from
3-16     permit requirements, regulations, and fees imposed by the district.
3-17           (h)  The district may not:
3-18                 (1)  exercise the power of eminent domain; or
3-19                 (2)  purchase, sell, transport, or distribute surface
3-20     water or groundwater for any purpose.
3-21           SECTION 6.  BOARD OF DIRECTORS.  (a)  The district is
3-22     governed by a board of seven directors.  Directors are appointed as
3-23     provided by Section 7 of this Act.  When a county is added to the
3-24     district, the board may change the number of directors so that an
3-25     equal number of directors is appointed from each county and one
3-26     director is appointed jointly by the counties.
3-27           (b)  Except for the initial term, all directors serve
 4-1     three-year terms.  The terms of two initial directors expire on
 4-2     December 31, 2004.  The terms of two initial directors expire on
 4-3     December 31, 2003.  The terms of the three remaining directors,
 4-4     including the term of the initial director who will serve as the
 4-5     joint two-county representative, expire on December 31, 2002.
 4-6           (c)  Subject to Subsection (b) of this section, the three
 4-7     initial directors from each county shall draw lots to determine
 4-8     their terms.
 4-9           (d)  Each director must qualify to serve as a director in the
4-10     manner provided by Section 36.055, Water Code.
4-11           (e)  A director serves until the director's successor has
4-12     qualified.
4-13           (f)  Directors may serve consecutive terms.
4-14           (g)  If there is a vacancy on the board, the governing body
4-15     of the entity that appointed the director who vacated the office
4-16     shall appoint a director to serve the remainder of the term.
4-17           (h)  Directors are not entitled to receive compensation for
4-18     serving as a director but may be reimbursed for actual, reasonable
4-19     expenses incurred in the discharge of official duties.
4-20           (i)  A majority vote of a quorum is required for board
4-21     action.  If there is a tie vote, the proposed action fails.
4-22           SECTION 7.  APPOINTMENT OF DIRECTORS.  (a)  The Angelina
4-23     County Commissioners Court shall appoint two directors.  One
4-24     director shall represent the rural water and utilities and small
4-25     municipal water supply interests, and one director shall represent
4-26     the large industrial groundwater supply interests of the county.
4-27           (b)  The Nacogdoches County Commissioners Court shall appoint
 5-1     two directors.  One director shall represent the rural water and
 5-2     utilities and small municipal water supply interests, and one
 5-3     director shall represent the agricultural groundwater supply
 5-4     interests of the county.
 5-5           (c)  The Lufkin City Council shall appoint one director.
 5-6           (d)  The Nacogdoches City Council shall appoint one director.
 5-7           (e)  The Angelina County Commissioners Court and the
 5-8     Nacogdoches County Commissioners Court shall jointly appoint one
 5-9     director to represent the groundwater interests of both counties.
5-10           SECTION 8.  ORGANIZATIONAL MEETING.  As soon as practicable
5-11     after all the initial directors are appointed as provided in this
5-12     Act, a majority of the directors shall convene the organizational
5-13     meeting of the district at a location within the district agreeable
5-14     to a majority of the directors at which time the directors will
5-15     take office.  If no location can be agreed upon, the organizational
5-16     meeting of the directors shall be at the Nacogdoches County
5-17     Courthouse.
5-18           SECTION 9.  LANDOWNERS' RIGHTS. The rights of landowners and
5-19     their lessees and assigns in groundwater within the district are
5-20     recognized.  Nothing in this Act shall be construed to deprive or
5-21     divest the owners or their lessees and assigns of their rights,
5-22     subject to district rules.
5-23           SECTION 10.  CONFIRMATION ELECTION.  (a)  The initial board
5-24     of directors shall call and hold an election to confirm the
5-25     establishment of the district.
5-26           (b)  Except as provided by this section, a confirmation
5-27     election must be conducted as provided by Sections 36.017(b)-(h),
 6-1     Water Code, and the Election Code.
 6-2           (c)  A confirmation election must be held on the first
 6-3     Tuesday after the first Monday in November of an even-numbered
 6-4     year.
 6-5           (d)  If the establishment of the district is not confirmed at
 6-6     an election held under this section before the second anniversary
 6-7     of the effective date of this Act, this Act expires on that date.
 6-8           SECTION 11.  ADDITION OF OTHER COUNTIES TO DISTRICT.  (a)  An
 6-9     adjacent county that wishes to join the district shall petition the
6-10     district by resolution of the commissioners court of the county.
6-11           (b)  If the board finds after a hearing on the resolution
6-12     that the addition of the county would benefit the district and the
6-13     county to be added, the board by resolution may approve the
6-14     addition of the county to the district.
6-15           (c)  The addition of a county to the district under this
6-16     section is not final until ratified by a majority vote of the
6-17     qualified voters in the county to be added voting in an election
6-18     held for that purpose.
6-19           (d)  The ballots for the election shall be printed to provide
6-20     for voting for or against the proposition:  "The inclusion of
6-21     _________ County in the Pineywoods Groundwater Conservation
6-22     District."
6-23           (e)  The notice of the election, the manner and the time of
6-24     giving the notice, the manner of holding the election, and the
6-25     qualifications of the voters are governed by the Election Code.
6-26           SECTION 12.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
6-27     (a)  The proper and legal notice of the intention to introduce this
 7-1     Act, setting forth the general substance of this Act, has been
 7-2     published as provided by law, and the notice and a copy of this Act
 7-3     have been furnished to all persons, agencies, officials, or
 7-4     entities to which they are required to be furnished by the
 7-5     constitution and the laws of this state, including the governor,
 7-6     who has submitted the notice and Act to the Texas Natural Resource
 7-7     Conservation Commission.
 7-8           (b)  The Texas Natural Resource Conservation Commission has
 7-9     filed its recommendations relating to this Act with the governor,
7-10     lieutenant governor, and speaker of the house of representatives
7-11     within the required time.
7-12           (c)  All the requirements of the constitution and the laws of
7-13     this state and rules and procedures of the legislature with respect
7-14     to the notice, introduction, and passage of this Act are fulfilled
7-15     and accomplished.
7-16           SECTION 13.  EFFECTIVE DATE.  This Act takes effect
7-17     immediately if it receives a vote of two-thirds of all the members
7-18     elected to each house, as provided by Section 39, Article III,
7-19     Texas Constitution.  If this Act does not receive the vote
7-20     necessary for immediate effect, this Act takes effect September 1,
7-21     2001.