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