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.