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.
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