By Kolkhorst                                          H.B. No. 3657
         77R11046 MI-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, administration, powers, duties,
 1-3     operation, and financing of the  Mid-East Texas 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 Mid-East Texas Groundwater
 1-8     Conservation District, is created in Leon, Madison, and Freestone
 1-9     counties, subject to approval at a confirmation election under
1-10     Section 11 of this Act.  The district is a governmental agency and
1-11     a body politic 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.  DEFINITIONS. In this Act:
1-16                 (1)  "Designated management area" means an area
1-17     designated as a management area under Section 35.004, Water Code,
1-18     by the Texas Natural Resource Conservation Commission.
1-19                 (2)  "District" means the Mid-East Texas Groundwater
1-20     Conservation District.
1-21           SECTION 3.  BOUNDARIES. The boundaries of the Mid-East Texas
1-22     Groundwater Conservation District are coextensive with the
1-23     boundaries of Leon, Madison, and Freestone counties.
1-24           SECTION 4.  GENERAL POWERS. (a)  Except as otherwise provided
 2-1     by this Act, the district has all of the rights, powers,
 2-2     privileges, authority, functions, and duties provided by the
 2-3     general law of this state, including Chapter 36, Water Code,
 2-4     applicable to groundwater conservation districts created under
 2-5     Section 59, Article XVI, Texas Constitution.  This Act prevails
 2-6     over any provision of general law that is in conflict or
 2-7     inconsistent with this Act, including any provision of Chapter 36,
 2-8     Water Code.
 2-9           (b)  The district does not have the authority granted by the
2-10     following provisions of Chapter 36, Water Code:
2-11                 (1)  Section 36.105, relating to eminent domain; and
2-12                 (2)  Sections 36.020 and 36.201-36.204, relating to
2-13     taxes.
2-14           SECTION 5.  FEES. (a)  The board of directors of the district
2-15     by rule may impose reasonable fees on each well for which a permit
2-16     is issued by the district and that is not exempt from regulation by
2-17     the district.  A fee may be based on the size of column pipe used
2-18     by the well or on the actual, authorized, or anticipated amount of
2-19     water to be withdrawn from the well.
2-20           (b)  Fees may not exceed:
2-21                 (1)  one dollar per acre-foot for water used for
2-22     irrigating agricultural crops; or
2-23                 (2)  17 cents per thousand gallons for water used for
2-24     any other purpose.
2-25           (c)  In addition to the fee authorized under Subsection (b)
2-26     of this section, the district may assess a fee on groundwater from
2-27     a well that is produced for transport outside the district.
 3-1           (d)  Fees authorized by this section may be assessed annually
 3-2     and may be used to fund the cost of district operations.
 3-3           SECTION 6.  GROUNDWATER WELLS UNDER JURISDICTION OF RAILROAD
 3-4     COMMISSION. (a)  A groundwater well that is used by a mining
 3-5     operation and permitted by the Railroad Commission of Texas is
 3-6     exempt under Section 36.117(e), Water Code, to the extent that the
 3-7     well does not produce a greater volume of groundwater than that
 3-8     produced for mining purposes.
 3-9           (b)  The district may require a well used for mining purposes
3-10     and exempt under this section to comply with the spacing
3-11     requirements of the district if any withdrawals from that well are
3-12     in addition to withdrawals for mining purposes.
3-13           (c)  A mining operation may voluntarily waive the exemption
3-14     granted by this section.
3-15           SECTION 7.  REGIONAL COOPERATION. To provide for regional
3-16     continuity, the district shall:
3-17                 (1)  participate as needed in coordination meetings
3-18     with other groundwater districts in its designated management area;
3-19                 (2)  coordinate the collection of data with other
3-20     groundwater districts in its designated management area in such a
3-21     way as to achieve relative uniformity of data type and quality;
3-22                 (3)  coordinate efforts to monitor water quality with
3-23     other groundwater districts in its designated management area,
3-24     local governments, and state agencies;
3-25                 (4)  provide groundwater level data to other
3-26     groundwater districts in its designated management area;
3-27                 (5)  investigate any groundwater and aquifer pollution
 4-1     with the intention of locating its source;
 4-2                 (6)  notify other groundwater districts in its
 4-3     designated management area and all appropriate agencies of any
 4-4     detected groundwater pollution;
 4-5                 (7)  annually provide to other groundwater districts in
 4-6     its designated management area an inventory of water wells and an
 4-7     estimate of groundwater production within the district; and
 4-8                 (8)  include other groundwater districts in its
 4-9     designated management area on the mailing lists for district
4-10     newsletters, seminars, public education events, news articles, and
4-11     field days.
4-12           SECTION 8.  BOARD OF DIRECTORS. (a)  The district is governed
4-13     by a board of nine directors.
4-14           (b)  Initial directors serve until permanent directors are
4-15     appointed under Section 9 of this Act and qualified as required by
4-16     Subsection (d) of this section.
4-17           (c)  Permanent directors serve four-year staggered terms.
4-18           (d)  Each director must qualify to serve as a director in the
4-19     manner provided by Section 36.055, Water Code.
4-20           (e)  A director serves until the director's successor has
4-21     qualified.
4-22           (f)  A director may serve consecutive terms.
4-23           (g)  If there is a vacancy on the board, the governing body
4-24     of the entity that appointed the director who vacated the office
4-25     shall appoint a director to serve the remainder of the term.
4-26           (h)  Directors are not entitled to receive compensation for
4-27     serving as a director but may be reimbursed for actual, reasonable
 5-1     expenses incurred in the discharge of official duties.
 5-2           (i)  A majority vote of a quorum is required for board
 5-3     action. If there is a tie vote, the proposed action fails.
 5-4           SECTION 9.  APPOINTMENT OF DIRECTORS. (a)  The Leon County
 5-5     Commissioners Court shall appoint three directors, of whom:
 5-6                 (1)  one must represent the interests of rural water
 5-7     suppliers or municipalities in the county, or both;
 5-8                 (2)  one must represent agricultural interests in the
 5-9     county; and
5-10                 (3)  one must represent industrial interests in the
5-11     county.
5-12           (b)  The Madison County Commissioners Court shall appoint
5-13     three directors, of whom:
5-14                 (1)  one must represent the interests of rural water
5-15     suppliers or municipalities in the county, or both;
5-16                 (2)  one must represent agricultural interests in the
5-17     county; and
5-18                 (3)  one must represent industrial interests in the
5-19     county.
5-20           (c)  The Freestone County Commissioners Court shall appoint
5-21     three directors, of whom:
5-22                 (1)  one must represent the interests of rural water
5-23     suppliers or municipalities in the county, or both;
5-24                 (2)  one must represent agricultural interests in the
5-25     county; and
5-26                 (3)  one must represent industrial interests in the
5-27     county.
 6-1           (d)  Each of the governing bodies authorized by this section
 6-2     to make an appointment shall appoint the appropriate number of
 6-3     initial directors as soon as practicable following the effective
 6-4     date of this Act, but not later than the 45th day after the
 6-5     effective date of this Act.
 6-6           (e)  The initial directors shall draw lots to determine their
 6-7     terms.  A simple majority of the initial directors, if an odd
 6-8     number of initial directors are appointed, or half the initial
 6-9     directors, if an even number of initial directors are appointed,
6-10     serve terms that expire on January 1 of the fourth year following
6-11     the confirmation of the district at an election held under Section
6-12     11 of this Act.  The remaining initial directors serve terms that
6-13     expire on January 1 of the second year following the confirmation
6-14     of the district.  On January 1 of the second year following
6-15     confirmation of the district and every two years after that date,
6-16     the appropriate commissioners courts shall appoint the appropriate
6-17     number of permanent directors.
6-18           SECTION 10.  ORGANIZATIONAL MEETING. As soon as practicable
6-19     after all the initial directors have been appointed and have
6-20     qualified as provided by this Act, a majority of the directors
6-21     shall convene the organizational meeting of the district at a
6-22     location within the district agreeable to a majority of the
6-23     directors.  If no location can be agreed upon, the organizational
6-24     meeting of the directors shall be at the Leon County Courthouse.
6-25           SECTION 11.  CONFIRMATION ELECTION. (a)  The initial board of
6-26     directors shall call and hold an election on the same date in each
6-27     county within the district to confirm the creation of the district.
 7-1           (b)  Except as provided by this section, a confirmation
 7-2     election must be conducted as provided by Sections 36.017, 36.018,
 7-3     and 36.019, Water Code, and Section 41.001, Election Code.
 7-4           (c)  If the majority of qualified voters in a county who vote
 7-5     in the election vote to confirm the creation of the district, that
 7-6     county is included in the district. If the majority of qualified
 7-7     voters in a county who vote in the election vote not to confirm the
 7-8     creation of the district, that county is excluded from the
 7-9     district.
7-10           (d)  If the creation of the district is not confirmed by an
7-11     election held under this section before the second anniversary of
7-12     the effective date of this Act, the district is dissolved and this
7-13     Act expires on that date.
7-14           SECTION 12.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a)
7-15     The proper and legal notice of the intention to introduce this Act,
7-16     setting forth the general substance of this Act, has been published
7-17     as provided by law, and the notice and a copy of this Act have been
7-18     furnished to all persons, agencies, officials, or entities to which
7-19     they are required to be furnished by the constitution and other
7-20     laws of this state, including the governor, who has submitted the
7-21     notice and Act to the Texas Natural Resource Conservation
7-22     Commission.
7-23           (b)  The Texas Natural Resource Conservation Commission has
7-24     filed its recommendations relating to this Act with the governor
7-25     and speaker of the house of representatives within the required
7-26     time.
7-27           (c)  All requirements of the constitution and laws of this
 8-1     state and the rules and procedures of the legislature with respect
 8-2     to the notice, introduction, and passage of this Act are fulfilled
 8-3     and accomplished.
 8-4           SECTION 13.  EFFECTIVE DATE. This Act takes effect September
 8-5     1, 2001.