By: Ogden S.B. No. 784 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. 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 Bluebonnet Groundwater Conservation 1-4 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 Bluebonnet Groundwater Conservation 1-8 District, is created in Grimes, Washington, Waller, and Austin 1-9 counties, subject to approval at a confirmation election under 1-10 Section 15 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; and 1-15 (c) The purpose of this Act is to create a locally 1-16 controlled groundwater district in order to protect, recharge, and 1-17 prevent the waste of groundwater, and to control subsidence caused 1-18 by withdrawal of water from the groundwater reservoirs in the area, 1-19 and to regulate the transport of water out of the boundaries of the 1-20 district; 1-21 SECTION 2. DEFINITION. In this Act, "district" means the 1-22 Bluebonnet Groundwater Conservation District. 1-23 SECTION 3. BOUNDARIES. The boundaries of the district are 2-1 coextensive with the boundaries of Grimes, Washington, Waller, and 2-2 Austin counties. 2-3 SECTION 4. FINDING OF BENEFIT. All of the land and other 2-4 property included within the boundaries of the district will be 2-5 benefitted by the works and projects that are to be accomplished by 2-6 the district under powers conferred by Section 59, Article XVI, 2-7 Texas Constitution. The district is created to serve a public use 2-8 and benefit. 2-9 SECTION 5. GENERAL POWERS. (a) Except as otherwise 2-10 provided by this Act, the district has all the rights, powers, 2-11 privileges, authority, functions, and duties provided by the 2-12 general law of this state, including Chapter 36, Water Code, 2-13 applicable to groundwater conservation districts created under 2-14 Section 59, Article XVI, Texas Constitution. This Act prevails 2-15 over any provision of general law, including Chapter 36, Water 2-16 Code, that is in conflict or is inconsistent with this Act. 2-17 (b) The district does not have the authority granted by the 2-18 following provisions of Chapter 36, Water Code: 2-19 (1) Section 36.105, relating to eminent domain; and 2-20 (2) Sections 36.020 and 36.201-36.204, relating to 2-21 taxes. 2-22 SECTION 6. FEES. (a) The board of directors of the 2-23 district by rule may impose reasonable fees on each well for which 2-24 a permit is issued by the district and that is not exempt from 2-25 regulation by the district. A fee may be based on the size of 2-26 column pipe used by the well or on the actual, authorized, or 3-1 anticipated amount of water to be withdrawn from the well. 3-2 (b) Fees shall not exceed: 3-3 (1) one dollar per acre foot for water used for 3-4 irrigating agricultural crops; or 3-5 (2) 17 cents per thousand gallons for water used for 3-6 any other purpose. 3-7 (c) In addition to the fee authorized under Subsection (b) 3-8 of this section, the district may assess a fee on groundwater from 3-9 a well that is produced for transport outside the district. The 3-10 combined fees may not exceed the limit on a fee amount set by 3-11 Section 36.205(c), Water Code. 3-12 (d) Fees authorized by this section may be assessed annually 3-13 and may be used to fund the cost of District operations and 3-14 expenses of the district's or council's operations. 3-15 SECTION 7. EXEMPTIONS. 3-16 (a) Pursuant to Section 36.117, Water Code, as amended, a 3-17 district may exempt wells from the requirements to obtain a 3-18 drilling permit, an operating permit, or any other permit required 3-19 by this chapter or the district's rules. A district may not 3-20 require a permit for: 3-21 (1) drilling or producing from a well either drilled, 3-22 completed, or equipped so that it is incapable of producing more 3-23 than 25,000 gallons of groundwater a day; 3-24 (2) the drilling or alteration of the size of a well 3-25 or to restrict the production of a well if the water produced or to 3-26 be produced from the well is used or to be used to supply the 4-1 domestic needs of 10 or fewer households and a person who is a 4-2 member of each household is either the owner of the well, a person 4-3 related to the owner or a member of the owner's household within 4-4 the second degree by consanguinity, or an employee of the owner; 4-5 (3) the drilling or alteration of the size of a well 4-6 or to restrict the production from the well if the water produced 4-7 or to be produced from the well is used or to be used to provide 4-8 water for feeding livestock and poultry connected with farming, 4-9 ranching, or dairy enterprises; or 4-10 (4) water wells to supply water for hydrocarbon 4-11 production activities, regardless of whether those wells are 4-12 producing, that are associated with any well permitted by the 4-13 Railroad Commission of Texas drilled before September 1, 1985. 4-14 (b) The board shall adopt rules determining the 4-15 applicability of Subsection (a)(3) to facilities used primarily for 4-16 feeding livestock. 4-17 (c) The district shall not deny the owner of a tract of 4-18 land, or his lessee, who has no well equipped to produce more than 4-19 25,000 gallons a day on the tract, either a permit to drill a well 4-20 on his land or the privilege to produce groundwater from his land, 4-21 subject to the rules of the district. 4-22 (d) A district may not restrict the production of any well 4-23 equipped to produce 25,000 gallons or less a day. 4-24 (e) Water wells exempted under this section shall be 4-25 equipped and maintained so as to conform to the district's rules 4-26 requiring installation of casing, pipe, and fittings to prevent the 5-1 escape of groundwater from a groundwater reservoir to any reservoir 5-2 not containing groundwater and to prevent the pollution or harmful 5-3 alteration of the character of the water in any groundwater 5-4 reservoir. 5-5 (f) A district shall require water wells exempted under this 5-6 section to be registered with the district before drilling. All 5-7 exempt water wells shall be equipped and maintained so as to 5-8 conform to the district's rules requiring installation of casing, 5-9 pipe, and fittings to prevent the escape of groundwater from a 5-10 groundwater reservoir to any reservoir not containing groundwater 5-11 and to prevent the pollution or harmful alteration of the character 5-12 of the water in any groundwater reservoir. 5-13 (g) A well to supply water for a subdivision of land for 5-14 which a plat approval is required by law is not exempted under this 5-15 section. 5-16 SECTION 8. MINING EXEMPTION. (a) A groundwater well that 5-17 is used by a mining operation and permitted by the Railroad 5-18 Commission of Texas is exempt from permit requirements, 5-19 regulations, and fees imposed by the district if the amount of 5-20 water withdrawn from the well is not greater than the amount 5-21 required by the mining operation for mining purposes. A mining 5-22 operation that withdraws the amount of water required for mining 5-23 purposes, uses that water for mining purposes, and then puts that 5-24 water to another use does not forfeit the exemption granted by this 5-25 section, but any production of water in addition to water withdrawn 5-26 for mining purposes is subject to district permitting and 6-1 regulation. 6-2 (b) The district may require a well used for mining purposes 6-3 and exempt under this section to comply with the spacing 6-4 requirements of the district if any withdrawals from that well are 6-5 in addition to withdrawals for mining purposes. 6-6 (c) A mining operation may voluntarily waive the exemption 6-7 granted by this section. 6-8 SECTION 9. MANAGEMENT PLAN. The district shall develop or 6-9 contract to develop its own management plan under Section 36.1071, 6-10 Water Code. 6-11 SECTION 10. PERMITTING. (a) The district shall issue 6-12 permits for wells based on the consideration of whether: 6-13 (1) the application conforms to the requirements 6-14 prescribed by Chapter 36, Water Code, and is accompanied by the 6-15 prescribed fees; 6-16 (2) the proposed use of water is consistent with the 6-17 district's certified water management plan; 6-18 (3) the proposed use of water is dedicated to any 6-19 beneficial use; 6-20 (4) the applicant has agreed to avoid waste and 6-21 achieve water conservation; and 6-22 (5) the applicant has agreed that reasonable diligence 6-23 will be used to protect groundwater quality and that the applicant 6-24 will follow well plugging guidelines at the time of well closure. 6-25 (6) the proposed use would not present the possibility 6-26 of unreasonable interference with the production of water from 7-1 exempt, existing, or previously permitted wells; 7-2 (7) the proposed use would not unreasonably interfere 7-3 with an adjoining landowner's ability to produce water from his 7-4 property. 7-5 SECTION 11. COORDINATION OF ACTIVITIES WITH OTHER ENTITIES. 7-6 (a) The district may coordinate activities with the Central 7-7 Carrizo-Wilcox Coordinating Council and may appoint a nonvoting 7-8 representative to the Central Carrizo-Wilcox Coordinating Council. 7-9 (b) The district may coordinate activities with the 7-10 Harris-Galveston Coastal Subsidence District or with other 7-11 groundwater conservation districts to manage portions of the Gulf 7-12 Coast Aquifer. 7-13 SECTION 12. BOARD OF DIRECTORS. (a) The district is 7-14 governed by a board of directors appointed as provided by Section 7-15 13. 7-16 (b) Initial directors serve until permanent directors are 7-17 appointed under Section 13 of this Act and qualified as required by 7-18 Subsection (d) of this section. 7-19 (c) Permanent directors serve four-year staggered terms. 7-20 (d) Each director must qualify to serve as a director in the 7-21 manner provided by Section 36.055, Water Code. 7-22 (e) A director serves until the director's successor has 7-23 qualified. 7-24 (f) A director may serve consecutive terms. 7-25 (g) If there is a vacancy on the board, the governing body 7-26 of the entity that appointed the director who vacated the office 8-1 shall appoint a director to serve the remainder of the term. 8-2 (h) Directors are not entitled to receive compensation for 8-3 serving as a director but may be reimbursed for actual, reasonable 8-4 expenses incurred in the discharge of official duties. 8-5 (i) A majority vote of a quorum is required for board 8-6 action. If there is a tie vote, the proposed action fails. 8-7 SECTION 13. APPOINTMENT OF DIRECTORS. (a) The 8-8 commissioners courts of the counties within the district shall each 8-9 appoint an equal number of directors as follows: 8-10 (1) if the district consists of four counties, the 8-11 board consists of 12 directors, with each county commissioners 8-12 court making three appointments, of which 8-13 (A) one must represent the interests public 8-14 water suppliers in the county, or both; 8-15 (B) one must represent agriculture interests in 8-16 the county; and 8-17 (C) one must represent industrial interests in 8-18 the county. 8-19 (2) if the district consists of three counties, the 8-20 board consists of nine directors, with each county commissioners 8-21 court making three appointments, of which 8-22 (A) one must represent the interests public 8-23 water suppliers in the county, or both; 8-24 (B) one must represent agriculture interests in 8-25 the county; and 8-26 (C) one must represent industrial interests in 9-1 the county. 9-2 (3) if the district consists of two counties, the 9-3 board consists of eight directors, with each county commissioners 9-4 court making four appointments, of which 9-5 (A) one must represent the interests of 9-6 municipalities in the county; 9-7 (B) one must represent agriculture interests in 9-8 the county; 9-9 (C) one must represent industrial interests in 9-10 the county; and 9-11 (D) one must represent the interests of rural 9-12 water suppliers in the county. 9-13 (4) if the district consists of one county, the board 9-14 of directors consists of eight directors, appointed by the county 9-15 commissioners court, of which 9-16 (A) one must represent municipal interests; 9-17 (B) two must represent agricultural interests; 9-18 (C) two must represent industrial interests; and 9-19 (D) two must represent rural water suppliers' 9-20 interests. 9-21 (E) one must represent the interests of the 9-22 county at large. 9-23 (b) The commissioners courts of the counties within the 9-24 district shall each appoint the appropriate number of initial 9-25 directors as soon as practicable following the effective date of 9-26 this Act, but not later than the 90th day after the effective date 10-1 of this Act. 10-2 (c) The initial directors shall draw lots to determine their 10-3 terms. A simple majority of the initial directors if an odd number 10-4 are appointed or half of the initial directors if an even number 10-5 are appointed serve terms that expire on the second anniversary of 10-6 the date on which all initial directors have qualified as required 10-7 by Section 12. The remaining initial directors serve terms that 10-8 expire on the fourth anniversary of the date on which all initial 10-9 directors have qualified as required by Section 12. On the second 10-10 anniversary of the date on which all initial directors have 10-11 qualified as required by Section 12 and every two years after that 10-12 date, the appropriate commissioners courts shall appoint the 10-13 appropriate number of permanent directors. 10-14 SECTION 14. ORGANIZATION MEETING. As soon as practicable 10-15 after all the initial directors have been appointed and have 10-16 qualified as provided in this Act, a majority of the directors 10-17 shall convene the organizational meeting of the district at a 10-18 location within the district agreeable to a majority of the 10-19 directors. If no location can be agreed on, the organizational 10-20 meeting of the directors shall be at the Washington County 10-21 Courthouse. 10-22 SECTION 15. CONFIRMATION ELECTION. (a) The initial board 10-23 of directors shall call and hold, on the same date in each county 10-24 to be included in the district, an election to confirm the creation 10-25 of the district. 10-26 (b) Except as provided by this section, a confirmation 11-1 election must be conducted as provided by Sections 36.017, 36.018, 11-2 and 36.019, Water Code, and the Election Code. 11-3 (c) If the majority of qualified voters in a county who vote 11-4 in the election to confirm the creation of the district, that 11-5 county is included in the district. If the majority of qualified 11-6 voters in a county who vote in the election vote not to confirm the 11-7 creation of the district, that county is excluded from the 11-8 district. 11-9 (d) If the creation of the district is not confirmed by an 11-10 election held under this section before the second anniversary of 11-11 the effective date of this Act, the district is dissolved and this 11-12 Act expires on that date. 11-13 SECTION 16. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 11-14 (a) The proper and legal notice of the intention to introduce this 11-15 Act, setting forth the general substance of this Act, has been 11-16 published as provided by law, and the notice and a copy of this Act 11-17 have been furnished to all persons, agencies, officials, or 11-18 entities to which they are required to be furnished by the 11-19 constitution and other laws of this state, including the governor, 11-20 who has submitted the notice and Act to the Texas Natural Resource 11-21 Conservation Commission. 11-22 (b) The Texas Natural Resource Conservation Commission has 11-23 filed its recommendations relating to this Act with the governor 11-24 and the speaker of the house of representatives within the required 11-25 time. 11-26 (c) All requirements of the constitution and laws of this 12-1 state and the rules and procedures of the legislature with respect 12-2 to the notice, introduction, and passage of this Act are fulfilled 12-3 and accomplished. 12-4 SECTION 17. EFFECTIVE DATE. This Act takes effect September 12-5 1, 2001.