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 district may not levy or collect taxes in the
2-26     district.
2-27           (e)  The board of directors of the district by rule may
 3-1     impose reasonable fees on each well for which a permit is issued by
 3-2     the district and which is not exempt from regulation by the
 3-3     district.  The fee shall be based on the amount of water to be
 3-4     withdrawn from the well and may not exceed $0.01 per thousand
 3-5     gallons for groundwater withdrawn for any purpose.
 3-6           (f)  A well meeting the criteria established under Section
 3-7     36.117, Water Code, including a well used for dewatering and
 3-8     monitoring in the production of coal and lignite, is exempt from
 3-9     permit requirements, regulations, and fees imposed by the district.
3-10           (g)  The district may not:
3-11                 (1)  exercise the power of eminent domain;
3-12                 (2)  issue and sell any bonds or notes that pledge
3-13     revenue derived from taxation in the name of the district; or
3-14                 (3)  purchase groundwater rights unless the purchased
3-15     rights are acquired for conservation purposes and are permanently
3-16     held in trust not to be produced.
3-17           SECTION 6.  BOARD OF DIRECTORS.  (a)  The district is
3-18     governed by a board of seven directors.  Directors are appointed as
3-19     provided by Section 7 of this Act.  When a county is added to the
3-20     district, the board may change the number of directors so that an
3-21     equal number of directors is appointed from each county and one
3-22     director is appointed jointly by the counties.
3-23           (b)  Except for the initial term, all directors serve
3-24     three-year terms.  The terms of two initial directors expire on
3-25     December 31, 2004.  The terms of two initial directors expire on
3-26     December 31, 2003.  The terms of the three remaining directors,
3-27     including the term of the initial director who will serve as the
 4-1     joint two-county representative, expire on December 31, 2002.
 4-2           (c)  Subject to Subsection (b) of this section, the three
 4-3     initial directors from each county shall draw lots to determine
 4-4     their terms.
 4-5           (d)  Each director must qualify to serve as a director in the
 4-6     manner provided by Section 36.055, Water Code.
 4-7           (e)  A director serves until the director's successor has
 4-8     qualified.
 4-9           (f)  Directors may serve consecutive terms.
4-10           (g)  If there is a vacancy on the board, the governing body
4-11     of the entity that appointed the director who vacated the office
4-12     shall appoint a director to serve the remainder of the term.
4-13           (h)  Directors are not entitled to receive compensation for
4-14     serving as a director but may be reimbursed for actual, reasonable
4-15     expenses incurred in the discharge of official duties.
4-16           (i)  A majority vote of a quorum is required for board
4-17     action.  If there is a tie vote, the proposed action fails.
4-18           SECTION 7.  APPOINTMENT OF DIRECTORS.  (a)  The Angelina
4-19     County Commissioners Court shall appoint two directors.  One
4-20     director shall represent the rural water and utilities and small
4-21     municipal water supply interests, and one director shall represent
4-22     the large industrial groundwater supply interests of the county.
4-23           (b)  The Nacogdoches County Commissioners Court shall appoint
4-24     two directors.  One director shall represent the rural water and
4-25     utilities and small municipal water supply interests, and one
4-26     director shall represent the forestry or agricultural groundwater
4-27     supply interests of the county.
 5-1           (c)  The Lufkin City Council shall appoint one director.
 5-2           (d)  The Nacogdoches City Council shall appoint one director.
 5-3           (e)  The Angelina County Commissioners Court and the
 5-4     Nacogdoches County Commissioners Court shall jointly appoint one
 5-5     director to represent the forestry, agricultural, or landowner
 5-6     groundwater interests of both counties.
 5-7           (f)  If the creation of the district is confirmed at a
 5-8     confirmation election under Section 10 of this Act in only one of
 5-9     the counties:
5-10                 (1)  the directors appointed from the county in which
5-11     the creation of the district is not confirmed and the director
5-12     appointed jointly by the two commissioners courts are not eligible
5-13     to serve as directors of the district; and
5-14                 (2)  the commissioners court and the specified city
5-15     council in the county in which the creation of the district is
5-16     confirmed shall jointly appoint two additional directors, at least
5-17     one of whom must represent the forestry, agricultural, or landowner
5-18     groundwater interests of the county.
5-19           SECTION 8.  ORGANIZATIONAL MEETING.  As soon as practicable
5-20     after all the initial directors are appointed as provided in this
5-21     Act, a majority of the directors shall convene the organizational
5-22     meeting of the district at a location within the district agreeable
5-23     to a majority of the directors at which time the directors will
5-24     take office.  If no location can be agreed upon, the organizational
5-25     meeting of the directors shall be at the Nacogdoches County
5-26     Courthouse.
5-27           SECTION 9.  LANDOWNERS' RIGHTS. The rights of landowners and
 6-1     their lessees and assigns in groundwater within the district are
 6-2     recognized.  Nothing in this Act shall be construed to deprive or
 6-3     divest the owners or their lessees and assigns of their rights,
 6-4     subject to district rules.
 6-5           SECTION 10.  CONFIRMATION ELECTION.  (a)  The initial board
 6-6     of directors shall call and hold an election on the same date in
 6-7     each county within the district to confirm the creation of the
 6-8     district.
 6-9           (b)  Except as provided by this section, a confirmation
6-10     election must be conducted as provided by Sections 36.017, 36.018,
6-11     and 36.019, Water Code, and Section 41.001, Election Code.
6-12           (c)  If the majority of qualified voters in a county who vote
6-13     in the election vote to confirm the creation of the district, that
6-14     county is included in the district.  If the majority of qualified
6-15     voters in a county who vote in the election vote not to confirm the
6-16     creation of the district, that county is excluded from the
6-17     district.
6-18           (d)  If the creation of the district is not confirmed by an
6-19     election held under this section before the second anniversary of
6-20     the effective date of this Act, the district is dissolved and this
6-21     Act expires on that date.
6-22           SECTION 11.  ADDITION OF OTHER COUNTIES TO DISTRICT.  (a)  An
6-23     adjacent county that wishes to join the district shall petition the
6-24     district by resolution of the commissioners court of the county.
6-25           (b)  If the board finds after a hearing on the resolution
6-26     that the addition of the county would benefit the district and the
6-27     county to be added, the board by resolution may approve the
 7-1     addition of the county to the district.
 7-2           (c)  The addition of a county to the district under this
 7-3     section is not final until ratified by a majority vote of the
 7-4     qualified voters in the county to be added voting in an election
 7-5     held for that purpose.
 7-6           (d)  The ballots for the election shall be printed to provide
 7-7     for voting for or against the proposition:  "The inclusion of
 7-8     _________ County in the Pineywoods Groundwater Conservation
 7-9     District."
7-10           (e)  The notice of the election, the manner and the time of
7-11     giving the notice, the manner of holding the election, and the
7-12     qualifications of the voters are governed by the Election Code.
7-13           SECTION 12.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
7-14     (a)  The proper and legal notice of the intention to introduce this
7-15     Act, setting forth the general substance of this Act, has been
7-16     published as provided by law, and the notice and a copy of this Act
7-17     have been furnished to all persons, agencies, officials, or
7-18     entities to which they are required to be furnished by the
7-19     constitution and the laws of this state, including the governor,
7-20     who has submitted the notice and Act to the Texas Natural Resource
7-21     Conservation Commission.
7-22           (b)  The Texas Natural Resource Conservation Commission has
7-23     filed its recommendations relating to this Act with the governor,
7-24     lieutenant governor, and speaker of the house of representatives
7-25     within the required time.
7-26           (c)  All the requirements of the constitution and the laws of
7-27     this state and rules and procedures of the legislature with respect
 8-1     to the notice, introduction, and passage of this Act are fulfilled
 8-2     and accomplished.
 8-3           SECTION 13.  EFFECTIVE DATE.  This Act takes effect
 8-4     immediately if it receives a vote of two-thirds of all the members
 8-5     elected to each house, as provided by Section 39, Article III,
 8-6     Texas Constitution.  If this Act does not receive the vote
 8-7     necessary for immediate effect, this Act takes effect September 1,
 8-8     2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2572 was passed by the House on April
         20, 2001, by the following vote:  Yeas 142, Nays 0, 2 present, not
         voting; that the House refused to concur in Senate amendments to
         H.B. No. 2572 on May 21, 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. 2572 on May 27, 2001, by the following vote:  Yeas 144,
         Nays 0, 2 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2572 was passed by the Senate, with
         amendments, on May 16, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting; 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. 2572 on May 27, 2001, by the following
         vote:  Yeas 30, Nays 0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor