77R11285 QS-D By McReynolds, Christian H.B. No. 2572 Substitute the following for H.B. No. 2572: By Counts C.S.H.B. No. 2572 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.