1-1 By: McReynolds, Christian H.B. No. 2572 1-2 (Senate Sponsor - Staples) 1-3 (In the Senate - Received from the House April 23, 2001; 1-4 April 24, 2001, read first time and referred to Committee on 1-5 Natural Resources; May 4, 2001, reported adversely, with favorable 1-6 Committee Substitute by the following vote: Yeas 6, Nays 0; 1-7 May 4, 2001, sent to printer.) 1-8 COMMITTEE SUBSTITUTE FOR H.B. No. 2572 By: Lucio 1-9 A BILL TO BE ENTITLED 1-10 AN ACT 1-11 relating to the creation, administration, powers, duties, 1-12 operations, and financing of the Pineywoods Groundwater 1-13 Conservation District. 1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-15 SECTION 1. CREATION. (a) A groundwater conservation 1-16 district, to be known as the Pineywoods Groundwater Conservation 1-17 District, is created in Angelina and Nacogdoches counties subject 1-18 to approval at a confirmation election held under Section 10 of 1-19 this Act. The district is a governmental agency and body politic 1-20 and corporate. 1-21 (b) The district is created under and is essential to 1-22 accomplish the purposes of Section 59, Article XVI, Texas 1-23 Constitution. 1-24 SECTION 2. DEFINITION. In this Act, "district" means the 1-25 Pineywoods Groundwater Conservation District. 1-26 SECTION 3. BOUNDARIES. The boundaries of the district are 1-27 coextensive with the boundaries of Angelina and Nacogdoches 1-28 counties. 1-29 SECTION 4. FINDING OF BENEFIT. All of the land and other 1-30 property included within the boundaries of the district will be 1-31 benefited by the works and projects that are to be accomplished by 1-32 the district under powers conferred by Section 59, Article XVI, 1-33 Texas Constitution. The district is created to serve a public use 1-34 and benefit. 1-35 SECTION 5. POWERS. (a) Except as provided by this section, 1-36 the district has all of the rights, powers, privileges, authority, 1-37 functions, and duties provided by the general law of this state, 1-38 including Chapter 36, Water Code, applicable to groundwater 1-39 conservation districts created under Section 59, Article XVI, Texas 1-40 Constitution. Chapter 49, Water Code, does not apply to the 1-41 district. This Act prevails over any provision of general law that 1-42 is in conflict or inconsistent with this Act. 1-43 (b) The district by rule may require a person to obtain a 1-44 permit from the district for the transfer of groundwater out of the 1-45 district consistent with Section 36.122, Water Code, and may 1-46 regulate the terms on which a permit holder under those rules may 1-47 conduct such a transfer. A retail public utility as defined by 1-48 Section 13.002, Water Code, is not required to obtain a permit to 1-49 transfer groundwater out of the district if: 1-50 (1) the source of the water is one or more wells 1-51 located within the district; and 1-52 (2) the water is used by the retail public utility to 1-53 provide retail water utility service, as defined by Section 13.002, 1-54 Water Code. 1-55 (c) The district may not require a permit for a well 1-56 incapable of producing more than 25,000 gallons of groundwater a 1-57 day. 1-58 (d) The district may not levy or collect taxes in the 1-59 district. 1-60 (e) The board of directors of the district by rule may 1-61 impose reasonable fees on each well for which a permit is issued by 1-62 the district and which is not exempt from regulation by the 1-63 district. The fee shall be based on the amount of water to be 1-64 withdrawn from the well and may not exceed $0.01 per thousand 2-1 gallons for groundwater withdrawn for any purpose. 2-2 (f) A well meeting the criteria established under Section 2-3 36.117, Water Code, including a well used for dewatering and 2-4 monitoring in the production of coal and lignite, is exempt from 2-5 permit requirements, regulations, and fees imposed by the district. 2-6 (g) The district may not: 2-7 (1) exercise the power of eminent domain; or 2-8 (2) issue and sell any bonds or notes in the name of 2-9 the district; or 2-10 (3) purchase groundwater rights unless the purchased 2-11 rights are acquired for conservation purposes and are permanently 2-12 held in trust not to be produced. 2-13 SECTION 6. BOARD OF DIRECTORS. (a) The district is 2-14 governed by a board of seven directors. Directors are appointed as 2-15 provided by Section 7 of this Act. When a county is added to the 2-16 district, the board may change the number of directors so that an 2-17 equal number of directors is appointed from each county and one 2-18 director is appointed jointly by the counties. 2-19 (b) Except for the initial term, all directors serve 2-20 three-year terms. The terms of two initial directors expire on 2-21 December 31, 2004. The terms of two initial directors expire on 2-22 December 31, 2003. The terms of the three remaining directors, 2-23 including the term of the initial director who will serve as the 2-24 joint two-county representative, expire on December 31, 2002. 2-25 (c) Subject to Subsection (b) of this section, the three 2-26 initial directors from each county shall draw lots to determine 2-27 their terms. 2-28 (d) Each director must qualify to serve as a director in the 2-29 manner provided by Section 36.055, Water Code. 2-30 (e) A director serves until the director's successor has 2-31 qualified. 2-32 (f) Directors may serve consecutive terms. 2-33 (g) If there is a vacancy on the board, the governing body 2-34 of the entity that appointed the director who vacated the office 2-35 shall appoint a director to serve the remainder of the term. 2-36 (h) Directors are not entitled to receive compensation for 2-37 serving as a director but may be reimbursed for actual, reasonable 2-38 expenses incurred in the discharge of official duties. 2-39 (i) A majority vote of a quorum is required for board 2-40 action. If there is a tie vote, the proposed action fails. 2-41 SECTION 7. APPOINTMENT OF DIRECTORS. (a) The Angelina 2-42 County Commissioners Court shall appoint two directors. One 2-43 director shall represent the rural water and utilities and small 2-44 municipal water supply interests, and one director shall represent 2-45 the large industrial groundwater supply interests of the county. 2-46 (b) The Nacogdoches County Commissioners Court shall appoint 2-47 two directors. One director shall represent the rural water and 2-48 utilities and small municipal water supply interests, and one 2-49 director shall represent the forestry/agricultural groundwater 2-50 supply interests of the county. 2-51 (c) The Lufkin City Council shall appoint one director. 2-52 (d) The Nacogdoches City Council shall appoint one director. 2-53 (e) The Angelina County Commissioners Court and the 2-54 Nacogdoches County Commissioners Court shall jointly appoint one 2-55 director to represent the forestry/agriculture and/or landowner 2-56 groundwater interests of both counties. 2-57 SECTION 8. ORGANIZATIONAL MEETING. As soon as practicable 2-58 after all the initial directors are appointed as provided in this 2-59 Act, a majority of the directors shall convene the organizational 2-60 meeting of the district at a location within the district agreeable 2-61 to a majority of the directors at which time the directors will 2-62 take office. If no location can be agreed upon, the organizational 2-63 meeting of the directors shall be at the Nacogdoches County 2-64 Courthouse. 2-65 SECTION 9. LANDOWNERS' RIGHTS. The rights of landowners and 2-66 their lessees and assigns in groundwater within the district are 2-67 recognized. Nothing in this Act shall be construed to deprive or 2-68 divest the owners or their lessees and assigns of their rights, 2-69 subject to district rules. 3-1 SECTION 10. CONFIRMATION ELECTION. (a) The initial board 3-2 of directors shall call and hold an election on the same date in 3-3 each county within the district to confirm the creation of the 3-4 district. 3-5 (b) Except as provided by this section, a confirmation 3-6 election must be conducted as provided by Sections 36.017, 36.018, 3-7 and 36.019, Water Code, and Section 41.001, Election Code. 3-8 (c) If the majority of qualified voters in a county who vote 3-9 in the election vote to confirm the creation of the district, that 3-10 county is included in the district. If the majority of qualified 3-11 voters in a county who vote in the election vote not to confirm the 3-12 creation of the district, that county is excluded from the 3-13 district. 3-14 (d) If the creation of the district is not confirmed by an 3-15 election held under this section before the second anniversary of 3-16 the effective date of this Act, the district is dissolved and this 3-17 article expires on that date. 3-18 SECTION 11. ADDITION OF OTHER COUNTIES TO DISTRICT. (a) An 3-19 adjacent county that wishes to join the district shall petition the 3-20 district by resolution of the commissioners court of the county. 3-21 (b) If the board finds after a hearing on the resolution 3-22 that the addition of the county would benefit the district and the 3-23 county to be added, the board by resolution may approve the 3-24 addition of the county to the district. 3-25 (c) The addition of a county to the district under this 3-26 section is not final until ratified by a majority vote of the 3-27 qualified voters in the county to be added voting in an election 3-28 held for that purpose. 3-29 (d) The ballots for the election shall be printed to provide 3-30 for voting for or against the proposition: "The inclusion of _____ 3-31 County in the Pineywoods Groundwater Conservation District." 3-32 (e) The notice of the election, the manner and the time of 3-33 giving the notice, the manner of holding the election, and the 3-34 qualifications of the voters are governed by the Election Code. 3-35 SECTION 12. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 3-36 (a) The proper and legal notice of the intention to introduce this 3-37 Act, setting forth the general substance of this Act, has been 3-38 published as provided by law, and the notice and a copy of this Act 3-39 have been furnished to all persons, agencies, officials, or 3-40 entities to which they are required to be furnished by the 3-41 constitution and the laws of this state, including the governor, 3-42 who has submitted the notice and Act to the Texas Natural Resource 3-43 Conservation Commission. 3-44 (b) The Texas Natural Resource Conservation Commission has 3-45 filed its recommendations relating to this Act with the governor, 3-46 lieutenant governor, and speaker of the house of representatives 3-47 within the required time. 3-48 (c) All the requirements of the constitution and the laws of 3-49 this state and rules and procedures of the legislature with respect 3-50 to the notice, introduction, and passage of this Act are fulfilled 3-51 and accomplished. 3-52 SECTION 13. EFFECTIVE DATE. This Act takes effect 3-53 immediately if it receives a vote of two-thirds of all the members 3-54 elected to each house, as provided by Section 39, Article III, 3-55 Texas Constitution. If this Act does not receive the vote 3-56 necessary for immediate effect, this Act takes effect September 1, 3-57 2001. 3-58 * * * * *