1-1 By: Hilderbran (Senate Sponsor - Wentworth) H.B. No. 3544 1-2 (In the Senate - Received from the House April 23, 2001; 1-3 April 24, 2001, read first time and referred to Committee on 1-4 Natural Resources; May 11, 2001, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 6, Nays 0; 1-6 May 11, 2001, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 3544 By: Barrientos 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the ratification of the creation of and to the 1-11 administration, powers, duties, operation, and financing of the Cow 1-12 Creek Groundwater Conservation District. 1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. RATIFICATION OF CREATION. The creation by Chapter 1-15 1331, Acts of the 76th Legislature, Regular Session, 1999 (Senate 1-16 Bill No. 1911), of the Cow Creek Groundwater Conservation District 1-17 in Kendall County is ratified as required by Section 15(a) of that 1-18 Act, subject to approval at a confirmation election under Section 8 1-19 of this Act. 1-20 SECTION 2. DEFINITIONS. In this Act: 1-21 (1) "District" means the Cow Creek Groundwater 1-22 Conservation District. 1-23 (2) "Retail public utility" means a retail public 1-24 utility as defined by Section 13.002, Water Code, that is providing 1-25 service in the district on the effective date of this Act. 1-26 (3) "Well" includes any excavation drilled or dug into 1-27 the ground that may intercept or penetrate a water bearing strata 1-28 or formation. 1-29 SECTION 3. BOUNDARIES. The boundaries of the district are 1-30 coextensive with the boundaries of Kendall County, Texas. 1-31 SECTION 4. GENERAL POWERS. (a) The district has all of the 1-32 rights, powers, privileges, authority, functions, and duties 1-33 provided by the general law of this state, including Chapter 36, 1-34 Water Code, applicable to groundwater conservation districts 1-35 created under Section 59, Article XVI, Texas Constitution. This 1-36 Act prevails over any provision of general law that is in conflict 1-37 or inconsistent with this Act, including any provision of Chapter 1-38 1331, Acts of the 76th Legislature, Regular Session, 1999 (Senate 1-39 Bill No. 1911). 1-40 (b) Notwithstanding Subsection (a), the following provisions 1-41 prevail over a conflicting or inconsistent provision of this Act: 1-42 (1) Sections 36.1071-36.108, Water Code; 1-43 (2) Sections 36.159-36.161, Water Code; and 1-44 (3) Subchapter I, Chapter 36, Water Code. 1-45 SECTION 5. BOARD OF DIRECTORS. (a) The district is governed 1-46 by a board of five directors. 1-47 (b) Temporary directors serve until initial directors are 1-48 elected under Section 8 of this Act. 1-49 (c) Initial directors serve until permanent directors are 1-50 elected under Section 10 of this Act. 1-51 (d) Permanent directors serve staggered four-year terms. 1-52 (e) Each director must qualify to serve as director in the 1-53 manner provided by Section 36.055, Water Code. 1-54 (f) A director serves until the director's successor has 1-55 qualified. 1-56 (g) If there is a vacancy on the board, the remaining 1-57 directors shall appoint a director to serve until the next election 1-58 for directors. At the next election for directors, a person shall 1-59 be elected to fill the position. If the position is not scheduled 1-60 to be filled at the election, the person elected to fill the 1-61 position shall serve only for the remainder of the unexpired term. 1-62 SECTION 6. METHOD OF ELECTING DIRECTORS. (a) The directors 1-63 of the district shall be elected according to the commissioners 1-64 precinct method as provided by this section. 2-1 (b) One director shall be elected by the qualified voters of 2-2 the entire district, and one director shall be elected from each 2-3 county commissioners precinct by the qualified voters of that 2-4 precinct. 2-5 (c) To be qualified to be a candidate for or to serve as a 2-6 director at large, a person must be a registered voter in the 2-7 district. To be qualified to be a candidate for or to serve as a 2-8 director from a county commissioners precinct, a person must be a 2-9 registered voter of that precinct. 2-10 (d) A person shall indicate on the application for a place 2-11 on the ballot: 2-12 (1) the precinct that the person seeks to represent; 2-13 or 2-14 (2) that the person seeks to represent the district at 2-15 large. 2-16 (e) At the first election after the county commissioners 2-17 precincts are redrawn under Section 18, Article V, Texas 2-18 Constitution, four new directors shall be elected to represent the 2-19 precincts. The directors elected shall draw lots to determine 2-20 which two directors serve two-year terms and which two directors 2-21 serve four-year terms. 2-22 SECTION 7. TEMPORARY DIRECTORS. (a) The temporary board of 2-23 directors shall be appointed by the county commissioners court. The 2-24 county commissioners court shall appoint a temporary director from 2-25 each commissioners precinct and one director at large. 2-26 (b) If a temporary director fails to qualify for office, the 2-27 temporary directors who have qualified shall appoint a person to 2-28 fill the vacancy. If at any time there are fewer than three 2-29 qualified directors, the Texas Natural Resource Conservation 2-30 Commission shall appoint the necessary number of persons to fill 2-31 all vacancies on the board. 2-32 SECTION 8. CONFIRMATION AND INITIAL DIRECTORS' ELECTION. (a) 2-33 The temporary board of directors shall call and hold an election to 2-34 confirm establishment of the district and to elect initial 2-35 directors. 2-36 (b) At the confirmation and initial directors' election, the 2-37 temporary board of directors shall have placed on the ballot the 2-38 names of the five temporary directors, the name of any other 2-39 candidate filing for an initial director's position, and blank 2-40 spaces to write in the names of other persons. 2-41 (c) Section 41.001(a), Election Code, does not apply to a 2-42 confirmation and initial directors' election held as provided by 2-43 this section. 2-44 (d) Except as provided by this section, a confirmation and 2-45 initial directors' election must be conducted as provided by 2-46 Sections 36.017(b)-(h), Water Code, and the Election Code. 2-47 (e) If a majority of the votes cast at the election held 2-48 under this section is against the confirmation of the district, the 2-49 temporary directors may not call another election under this 2-50 section before the first anniversary of that election. 2-51 (f) If a majority of the votes cast at the election held 2-52 under this section is in favor of the creation of the district, the 2-53 temporary directors shall declare the district created. 2-54 (g) If the district is created at the confirmation election, 2-55 the temporary directors, at the time the vote is canvassed, shall 2-56 declare the candidate receiving the most votes from each 2-57 commissioners precinct and at large to be elected as initial 2-58 directors. 2-59 (h) The temporary directors shall file a copy of the 2-60 election results with the Texas Natural Resource Conservation 2-61 Commission. 2-62 SECTION 9. TERMS OF OFFICE OF INITIAL DIRECTORS. The initial 2-63 directors for precincts 2 and 3 shall serve as initial directors 2-64 until the first regular meeting of the board of directors held 2-65 after the first permanent director's election under Section 10 of 2-66 this Act. The initial directors for precincts 1 and 4 and the 2-67 initial director representing the district at large shall serve as 2-68 initial directors until the first regular meeting of the board of 2-69 directors held after the second permanent director's election under 3-1 Section 10 of this Act. 3-2 SECTION 10. ELECTION OF DIRECTORS. Beginning in the second 3-3 year after the year in which the creation of the district is 3-4 confirmed at a confirmation election, an election shall be held in 3-5 the district on the first Saturday in May every second year to 3-6 elect the appropriate number of directors to the board. 3-7 SECTION 11. ADDITIONAL AUTHORITY. (a) The district may 3-8 contract with one or more state agencies or other governmental 3-9 bodies, including a county, a river authority, or another district 3-10 to carry out any function of the district. 3-11 (b) The district may require a drilling permit before a new 3-12 well is drilled or an existing well is substantially altered. 3-13 Notwithstanding an exemption for a well under Section 36.117, Water 3-14 Code, written authorization from the district must be received 3-15 before a new well is drilled or an existing well is substantially 3-16 altered. 3-17 (c) The district may participate in the construction, 3-18 implementation, and maintenance of best management practices for 3-19 water resource management in the district and may engage in and 3-20 promote the acceptance of best management practices through 3-21 education efforts sponsored by the district. Construction, 3-22 implementation, and maintenance of best management practices must 3-23 address water quantity and quality practices such as brush 3-24 management, prescribed grazing, recharge structures, water and silt 3-25 detention and retention structures, plugging of abandoned wells, 3-26 rainwater harvesting, and other treatment measures for the 3-27 conservation of water resources. 3-28 (d) Reasonable fees, as determined by the district, may be 3-29 imposed on an annual basis on each nonexempt well. The district 3-30 shall adopt any rules necessary for the assessment and collection 3-31 of fees under this subsection. 3-32 (e) The district may use money collected from fees: 3-33 (1) in any manner necessary for the management and 3-34 operation of the district; 3-35 (2) to pay all or part of the principal of and 3-36 interest on district bonds or notes; and 3-37 (3) for any purpose consistent with the district's 3-38 certified water management plan. 3-39 (f) The district shall adopt rules providing for granting 3-40 exemptions from ad valorem taxes on property on which a water 3-41 conservation initiative has been implemented. The rules adopted by 3-42 the district must be consistent with the rules adopted by the 3-43 comptroller to implement Section 11.32, Tax Code. 3-44 (g) The rules must provide that a retail public utility is 3-45 eligible to receive an exemption from ad valorem taxes on property 3-46 on the same grounds as for any other district customer. To 3-47 encourage retail public utilities to obtain water supplies from 3-48 sources other than groundwater, the rules adopted by the district 3-49 under Subsection (f) must include an exemption from ad valorem 3-50 taxes on property served by a retail public utility based on: 3-51 (1) the percentage of potable water supplied within 3-52 the district by the retail public utility from sources other than 3-53 groundwater compared to the total water supplied by the retail 3-54 public utility for the preceding year; and 3-55 (2) the percentage of wastewater effluent produced by 3-56 the retail public utility that is used as reclaimed water within 3-57 the district compared to the total wastewater effluent produced by 3-58 the retail public utility for the preceding year. 3-59 (h) The district may consider the impact of floods and 3-60 equipment breakage upon the retail public utility's ability to 3-61 supply water from sources other than groundwater. 3-62 (i) The total amount of the exemption from ad valorem taxes 3-63 shall not exceed one-half of the tax imposed by the district. 3-64 SECTION 12. PROHIBITED ACTS. The district may not: 3-65 (1) impose an ad valorem tax for administrative, 3-66 operation, or maintenance expenses that exceeds the lesser of the 3-67 rate approved by the majority of the qualified voters voting in an 3-68 election authorizing the tax or three cents per $100 of assessed 3-69 valuation; 4-1 (2) require the owner of a well used solely for 4-2 domestic or livestock purposes to install a meter or measuring 4-3 device on the well; 4-4 (3) sell, transport, or export groundwater outside of 4-5 the district; 4-6 (4) enter into a contract or engage in an action to 4-7 supply water to a person in the service area of any municipality or 4-8 retail public utility located in the district, except with the 4-9 express permission of the municipality or retail public utility; or 4-10 (5) issue before September 1, 2004, any bonds secured 4-11 by ad valorem taxes. 4-12 SECTION 13. VALIDATION. (a) Any act or proceeding taken by 4-13 or on behalf of the Cow Creek Groundwater Conservation District 4-14 before the effective date of this Act is validated in all respects 4-15 as if the act or proceeding had occurred as authorized by law. 4-16 (b) Subsection (a) does not apply to any matter that on the 4-17 effective date of this Act: 4-18 (1) is involved in litigation if the litigation 4-19 ultimately results in the matter being held invalid by a final 4-20 judgment of a court of competent jurisdiction; or 4-21 (2) has been held invalid by a final judgment of a 4-22 court of competent jurisdiction. 4-23 SECTION 14. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a) 4-24 The proper and legal notice of the intention to introduce this Act, 4-25 setting forth the general substance of this Act, has been published 4-26 as provided by law, and the notice and a copy of this Act have been 4-27 furnished to all persons, agencies, officials, or entities to which 4-28 they are required to be furnished by the constitution and other 4-29 laws of this state, including the governor, who has submitted the 4-30 notice and Act to the Texas Natural Resource Conservation 4-31 Commission. 4-32 (b) The Texas Natural Resource Conservation Commission has 4-33 filed its recommendations relating to this Act with the governor, 4-34 lieutenant governor, and speaker of the house of representatives 4-35 within the required time. 4-36 (c) All requirements of the constitution and laws of this 4-37 state and the rules and procedures of the legislature with respect 4-38 to the notice, introduction, and passage of this Act are fulfilled 4-39 and accomplished. 4-40 SECTION 15. EXPIRATION DATE; EFFECTIVE DATE. (a) If the 4-41 creation of the district is not confirmed at a confirmation 4-42 election held under Section 8 of this Act before September 1, 2003, 4-43 this Act expires on that date. 4-44 (b) This Act takes effect immediately if it receives a vote 4-45 of two-thirds of all the members elected to each house, as provided 4-46 by Section 39, Article III, Texas Constitution. If this Act does 4-47 not receive the vote necessary for immediate effect, this Act takes 4-48 effect September 1, 2001. 4-49 * * * * *