By Staples                                             S.B. No. 979
         77R3311 QS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, administration, powers, duties,
 1-3     operations, and financing of the Pineywoods 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 Pineywoods Groundwater Conservation
 1-8     District, is created in Angelina and Nacogdoches counties subject
 1-9     to approval at a confirmation election held under Section 10 of
1-10     this Act.  The district is a governmental agency and body politic
1-11     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.  DEFINITION.  In this Act, "district" means the
1-16     Pineywoods Groundwater Conservation District.
1-17           SECTION 3.  BOUNDARIES.  The boundaries of the district are
1-18     coextensive with the boundaries of Angelina and Nacogdoches
1-19     counties.
1-20           SECTION 4.  FINDING OF BENEFIT.  All of the land and other
1-21     property included within the boundaries of the district will be
1-22     benefited by the works and projects that are to be accomplished by
1-23     the district under powers conferred by Section 59, Article XVI,
1-24     Texas Constitution.  The district is created to serve a public use
 2-1     and benefit.
 2-2           SECTION 5.  POWERS.  (a)  Except as provided by this section,
 2-3     the district has all of the rights, powers, privileges, authority,
 2-4     functions, and duties provided by the general law of this state,
 2-5     including Chapter 36, Water Code, applicable to groundwater
 2-6     conservation districts created under Section 59, Article XVI, Texas
 2-7     Constitution.  Chapter 49, Water Code, does not apply to the
 2-8     district.  This Act prevails over any provision of general law that
 2-9     is in conflict or inconsistent with this Act.
2-10           (b)  The district by rule may require a person to obtain a
2-11     permit from the district for the transfer of groundwater out of the
2-12     district consistent with Section 36.122, Water Code, and may
2-13     regulate the terms on which a permit holder under those rules may
2-14     conduct such a transfer. A retail public utility as defined by
2-15     Section 13.002, Water Code, is not required to obtain a permit to
2-16     transfer groundwater out of the district if:
2-17                 (1)  the source of the water is one or more wells
2-18     located within the district; and
2-19                 (2)  the water is used by the retail public utility to
2-20     provide retail water utility service, as defined by Section 13.002,
2-21     Water Code.
2-22           (c)  The district may not require a permit for a well
2-23     incapable of producing more than 25,000 gallons of groundwater a
2-24     day.
2-25           (d)  The district may not levy or collect taxes in the
2-26     district.
2-27           (e)  The board of directors of the district by rule may
 3-1     impose reasonable fees on each well for which a permit is issued by
 3-2     the district and which is not exempt from regulation by the
 3-3     district.  The fee shall be based on the amount of water to be
 3-4     withdrawn from the well and may not exceed $0.01 per thousand
 3-5     gallons for groundwater withdrawn for any purpose.
 3-6           (f)  A well meeting the criteria established under Section
 3-7     36.117, Water Code, including a well used for dewatering and
 3-8     monitoring in the production of coal and lignite, is exempt from
 3-9     permit requirements, regulations, and fees imposed by the district.
3-10           (g)  The district may not:
3-11                 (1)  exercise the power of eminent domain;
3-12                 (2)  issue and sell any type of tax supported bonds or
3-13     notes in the name of the district; or
3-14                 (3)  purchase, sell, transport, or distribute surface
3-15     water or groundwater for any purpose.
3-16           SECTION 6.  BOARD OF DIRECTORS.  (a)  The district is
3-17     governed by a board of seven directors.  Directors are appointed as
3-18     provided by Section 7 of this Act.  When a county is added to the
3-19     district, the board may change the number of directors so that an
3-20     equal number of directors is appointed from each county and one
3-21     director is appointed jointly by the counties.
3-22           (b)  Except for the initial term, all directors serve
3-23     three-year terms.  The terms of two initial directors expire on
3-24     December 31, 2004.  The terms of two initial directors expire on
3-25     December 31, 2003.  The terms of the three remaining directors,
3-26     including the term of the initial director who will serve as the
3-27     joint two-county representative, expire on December 31, 2002.
 4-1           (c)  Subject to Subsection (b) of this section, the initial
 4-2     directors shall draw lots on a county-by-county basis to determine
 4-3     terms of their three initial directors.
 4-4           (d)  Each director must qualify to serve as a director in the
 4-5     manner provided by Section 36.055, Water Code.
 4-6           (e)  A director serves until the director's successor has
 4-7     qualified.
 4-8           (f)  Directors may serve consecutive terms.
 4-9           (g)  If there is a vacancy on the board, the governing body
4-10     of the entity that appointed the director who vacated the office
4-11     shall appoint a director to serve the remainder of the term.
4-12           (h)  Directors are not entitled to receive compensation for
4-13     serving as a director but may be reimbursed for actual, reasonable
4-14     expenses incurred in the discharge of official duties.
4-15           (i)  A majority vote of a quorum is required for board
4-16     action.  If there is a tie vote, the proposed action fails.
4-17           SECTION 7.  APPOINTMENT OF DIRECTORS.  (a)  The Angelina
4-18     County Commissioners Court shall appoint two directors.  One
4-19     director shall represent the rural water and utilities and small
4-20     municipal water supply interests, and one director shall represent
4-21     the large industrial groundwater supply interests of the county.
4-22           (b)  The Nacogdoches County Commissioners Court shall appoint
4-23     two directors.  One director shall represent the rural water and
4-24     utilities and small municipal water supply interests, and one
4-25     director shall represent the agricultural groundwater supply
4-26     interests of the county.
4-27           (c)  The Lufkin City Council shall appoint one director.
 5-1           (d)  The Nacogdoches City Council shall appoint one director.
 5-2           (e)  The Angelina County Commissioners Court and the
 5-3     Nacogdoches County Commissioners Court shall jointly appoint one
 5-4     director to represent the groundwater interests of both counties.
 5-5           SECTION 8.  ORGANIZATIONAL MEETING.  As soon as practicable
 5-6     after all the initial directors are appointed as provided in this
 5-7     Act, a majority of the directors shall convene the organizational
 5-8     meeting of the district at a location within the district agreeable
 5-9     to a majority of the directors at which time the directors will
5-10     take office.  If no location can be agreed upon, the organizational
5-11     meeting of the directors shall be at the Nacogdoches County
5-12     Courthouse.
5-13           SECTION 9.  LANDOWNERS' RIGHTS. The rights of landowners and
5-14     their lessees and assigns in groundwater within the district are
5-15     recognized.  Nothing in this Act shall be construed to deprive or
5-16     divest the owners or their lessees and assigns of their rights,
5-17     subject to district rules.
5-18           SECTION 10.  CONFIRMATION ELECTION.  (a)  The initial board
5-19     of directors shall call and hold an election to confirm the
5-20     establishment of the district.
5-21           (b)  Except as provided by this section, a confirmation
5-22     election must be conducted as provided by Sections 36.017(b)-(h),
5-23     Water Code, and the Election Code.
5-24           (c)  If the establishment of the district is not confirmed at
5-25     an election held under this section before the second anniversary
5-26     of the effective date of this Act, this Act expires on that date.
5-27           SECTION 11.  ADDITION OF OTHER COUNTIES TO DISTRICT.  (a)  An
 6-1     adjacent county that wishes to join the district shall petition the
 6-2     district by resolution of the commissioners court of the county.
 6-3           (b)  If the board finds after a hearing on the resolution
 6-4     that the addition of the county would benefit the district and the
 6-5     county to be added, the board by resolution may approve the
 6-6     addition of the county to the district.
 6-7           (c)  The addition of a county to the district under this
 6-8     section is not final until ratified by a majority vote of the
 6-9     qualified voters in the county to be added voting in an election
6-10     held for that purpose.
6-11           (d)  The ballots for the election shall be printed to provide
6-12     for voting for or against the proposition:  "The inclusion of
6-13     _________ County in the Pineywoods Groundwater Conservation
6-14     District."
6-15           (e)  The notice of the election, the manner and the time of
6-16     giving the notice, the manner of holding the election, and the
6-17     qualifications of the voters are governed by the Election Code.
6-18           SECTION 12.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
6-19     (a)  The proper and legal notice of the intention to introduce this
6-20     Act, setting forth the general substance of this Act, has been
6-21     published as provided by law, and the notice and a copy of this Act
6-22     have been furnished to all persons, agencies, officials, or
6-23     entities to which they are required to be furnished by the
6-24     constitution and the laws of this state, including the governor,
6-25     who has submitted the notice and Act to the Texas Natural Resource
6-26     Conservation Commission.
6-27           (b)  The Texas Natural Resource Conservation Commission has
 7-1     filed its recommendations relating to this Act with the governor,
 7-2     lieutenant governor, and speaker of the house of representatives
 7-3     within the required time.
 7-4           (c)  All the requirements of the constitution and the laws of
 7-5     this state and rules and procedures of the legislature with respect
 7-6     to the notice, introduction, and passage of this Act are fulfilled
 7-7     and accomplished.
 7-8           SECTION 13.  This Act takes effect immediately if it receives
 7-9     a vote of two-thirds of all the members elected to each house, as
7-10     provided by Section 39, Article III, Texas Constitution.  If this
7-11     Act does not receive the vote necessary for immediate effect, this
7-12     Act takes effect September 1, 2001.