By:  Staples                                          S.B. No. 1821
                                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 Neches and Trinity Valleys
 1-4     Groundwater 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 Neches and Trinity Valleys Groundwater
 1-8     Conservation District, is created in Anderson, Cherokee, and
 1-9     Henderson counties subject to approval at a confirmation election
1-10     held under Section 9 of this Act.  The district is a governmental
1-11     agency and 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.  DEFINITION.  In this Act, "district" means the
1-16     Neches and Trinity Valleys Groundwater Conservation District.
1-17           SECTION 3.  BOUNDARIES.  The boundaries of the district are
1-18     coextensive with the boundaries of:
1-19                 (1)  Anderson County, save and except all of that
1-20     portion of Anderson County included within the Anderson County
1-21     Underground Water Conservation District as defined in particular in
1-22     Section 4, Chapter 992, Acts of the 70th Legislature, Regular
1-23     Session, 1987;
1-24                 (2)  Cherokee County; and
1-25                 (3)  Henderson County.
 2-1           SECTION 4.  FINDING OF BENEFIT.  All of the land and other
 2-2     property included within the boundaries of the district will be
 2-3     benefitted by the works and projects that are to be accomplished by
 2-4     the district under powers conferred by Section 59, Article XVI,
 2-5     Texas Constitution.  The district is created to serve a public use
 2-6     and benefit.
 2-7           SECTION 5.  POWERS.  (a)  Except as provided by this section,
 2-8     the district has all of the rights, powers, privileges, authority,
 2-9     functions, and duties provided by the general law of this state,
2-10     including Chapter 36, Water Code, applicable to groundwater
2-11     conservation districts created under Section 59, Article XVI, Texas
2-12     Constitution.  Chapter 49, Water Code, does not apply to the
2-13     district.  This Act prevails over any provision of general law that
2-14     is in conflict or inconsistent with this Act.
2-15           (b)  The district by rule may require a person to obtain a
2-16     permit from the district for the transfer of groundwater out of the
2-17     district consistent with Section 36.122, Water Code, and may
2-18     regulate the terms on which a permit holder under those rules may
2-19     conduct such a transfer.  A retail public utility as defined by
2-20     Section 13.002, Water Code, is not required to obtain a permit to
2-21     transfer groundwater out of the district if:
2-22                 (1)  the source of the water is one or more wells
2-23     located within the district; and
2-24                 (2)  the water is used by the retail public utility to
2-25     provide retail water utility service, as defined by Section 13.002,
2-26     Water Code.
 3-1           (c)  The district may not levy or collect taxes in the
 3-2     district.
 3-3           (d)  The board of directors of the district by rule may
 3-4     impose reasonable fees on each well for which a permit is issued by
 3-5     the district and which is not exempt from regulation by the
 3-6     district.  The fee shall be based on the amount of water to be
 3-7     withdrawn from the well and may not exceed $0.25 per acre-foot for
 3-8     water used for irrigating agricultural crops or operating existing
 3-9     steam electric stations or $0.0425 per thousand gallons for water
3-10     used for any other purpose.  The fees may be assessed annually,
3-11     based on the size of column pipe used in the wells, the production
3-12     capacity of the well, or actual, authorized, or anticipated
3-13     pumpage.
3-14           (e)  A well meeting the criteria established under Section
3-15     36.117, Water Code, including a well used for dewatering and
3-16     monitoring in the production of coal and lignite, is exempt from
3-17     permit requirements, regulations, and fees imposed by the district.
3-18           (f)  The district may not:
3-19                 (1)  exercise the power of eminent domain;
3-20                 (2)  issue and sell bonds or notes in the name of the
3-21     district; or
3-22                 (3)  purchase groundwater rights unless the purchased
3-23     rights are acquired for conservation purposes and are permanently
3-24     held in trust not to be produced.
3-25           SECTION 6.  BOARD OF DIRECTORS.  (a)  The district is
3-26     governed by a board of directors appointed as provided by Section 7
 4-1     of this Act.
 4-2           (b)  Except for the initial term, all directors appointed by
 4-3     the county commissioners court in each county in the district serve
 4-4     four-year terms.  The director appointed jointly under Subsection
 4-5     (b), Section 7 of this Act, serves a two-year term.  The terms of
 4-6     four initial directors will expire at the end of the calendar year
 4-7     two years after the effective date of this Act and the terms of
 4-8     three initial directors will expire at the end of the calendar year
 4-9     four years after the effective date of this Act.
4-10           (c)  Subject to Subsection (b) of this section, the initial
4-11     directors appointed by the county commissioners court in each
4-12     county shall draw lots to determine one initial director from each
4-13     county who shall serve a two-year term.  The other initial
4-14     directors shall serve terms of four years.
4-15           (d)  Each director must qualify to serve as a director in the
4-16     manner provided by Section 36.055, Water Code.
4-17           (e)  A director serves until the director's successor has
4-18     qualified.
4-19           (f)  Directors may serve consecutive terms.
4-20           (g)  If there is a vacancy on the board of directors, the
4-21     governing body of the entity that appointed the director who
4-22     vacated the office shall appoint a director to serve the remainder
4-23     of the term.
4-24           (h)  Directors are not entitled to receive compensation for
4-25     serving as a director but may be reimbursed for actual, reasonable
4-26     expenses incurred in the discharge of official duties.
 5-1           (i)  A majority vote of a quorum is required for board
 5-2     action.  If there is a tie vote, the proposed action fails.
 5-3           SECTION 7.  APPOINTMENT OF DIRECTORS.  (a)  The commissioners
 5-4     court of each county in the district shall appoint one director to
 5-5     represent the rural water and utilities and small municipal water
 5-6     supply interests of the county and one director to represent the
 5-7     agriculture, industry, or landowner groundwater supply interests of
 5-8     the county.
 5-9           (b)  The governing body of the most populous municipality in
5-10     each county in the district, acting jointly with the governing body
5-11     of the most populous municipality in each other county in the
5-12     district, shall appoint one director representing those
5-13     municipalities.  The governing bodies shall appoint residents of
5-14     the district on a rotating basis so that a resident of each county
5-15     is appointed every sixth year.
5-16           (c)  The governing bodies authorized by this section to make
5-17     an appointment shall appoint the appropriate number of directors as
5-18     soon as practicable after the effective date of this Act, but not
5-19     later than the 45th day after the effective date of this Act.
5-20           SECTION 8.  ORGANIZATIONAL MEETING.  As soon as practicable
5-21     after all the initial directors are appointed as provided in this
5-22     Act, a majority of the directors shall convene the organizational
5-23     meeting of the district at a location within the district agreeable
5-24     to a majority of the directors at which time the directors will
5-25     take office.  If no location can be agreed upon, the organizational
5-26     meeting of the directors shall be at the Anderson County
 6-1     Courthouse.
 6-2           SECTION 9.  CONFIRMATION ELECTION.  (a)  The initial board of
 6-3     directors shall call and hold an election on the same date in each
 6-4     county within the district to confirm the creation of the district.
 6-5           (b)  Except as provided by this section, a confirmation
 6-6     election must be conducted as provided by Sections 36.017, 36.018,
 6-7     and 36.019, Water Code, and Section 41.001, Election Code.
 6-8           (c)  If the majority of qualified voters in a county who vote
 6-9     in the election vote to confirm the creation of the district, that
6-10     county is included in the district.  If the majority of qualified
6-11     voters in a county who vote in the election vote not to confirm the
6-12     creation of the district, that county is excluded from the
6-13     district.
6-14           (d)  If the creation of the district is not confirmed by an
6-15     election held under this section before the second anniversary of
6-16     the effective date of this Act, the district is dissolved and this
6-17     Act expires on that date.
6-18           SECTION 10.  ADDITION OF OTHER COUNTIES OR CERTAIN
6-19     UNDERGROUND WATER DISTRICTS TO DISTRICT.  (a)  An adjacent county
6-20     or an underground water conservation district whose boundaries lie
6-21     wholly within the boundaries of the Neches and Trinity Valleys
6-22     Groundwater Conservation District that wishes to join the district
6-23     shall petition the district by resolution of the commissioners
6-24     court of the county or the board of directors of the underground
6-25     water conservation district.
6-26           (b)  If the board of directors finds after a hearing on the
 7-1     resolution that the addition of the county or underground water
 7-2     conservation district would benefit the district and the county or
 7-3     underground water conservation district to be added, the board by
 7-4     resolution may approve the addition of the county or underground
 7-5     water conversation district to the district.
 7-6           (c)  The addition of a county or underground water
 7-7     conservation district to the district under this section is not
 7-8     final until ratified by a majority vote of the qualified voters in
 7-9     the county or within the boundaries of the underground water
7-10     conservation district to be added voting in an election held for
7-11     that purpose.
7-12           (d)  The ballots for the election shall be printed to provide
7-13     for voting for or against the proposition:  "The inclusion of
7-14     _______ County in the Neches and Trinity Valleys Groundwater
7-15     Conservation District." or "The inclusion of ________ Underground
7-16     Water Conservation District in the Neches and Trinity Valleys
7-17     Groundwater Conservation District."
7-18           (e)  The notice of the election, the manner and the time of
7-19     giving the notice, the manner of holding the election, and the
7-20     qualifications of the voters are governed by the Election Code.
7-21           SECTION 11.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
7-22     (a)  The proper and legal notice of the intention to introduce this
7-23     Act, setting forth the general substance of this Act, has been
7-24     published as provided by law, and the notice and a copy of this Act
7-25     have been furnished to all persons, agencies, officials, or
7-26     entities to which they are required to be furnished by the
 8-1     constitution and the laws of this state, including the governor,
 8-2     who has submitted the notice and this Act to the Texas Natural
 8-3     Resource Conservation Commission.
 8-4           (b)  The Texas Natural Resource Conservation Commission has
 8-5     filed its recommendations relating to this Act with the governor,
 8-6     lieutenant governor, and speaker of the house of representatives
 8-7     within the required time.
 8-8           (c)  All the requirements of the constitution and the laws of
 8-9     this state and rules and procedures of the legislature with respect
8-10     to the notice, introduction, and passage of this Act are fulfilled
8-11     and accomplished.
8-12           SECTION 12.  EFFECTIVE DATE.  This Act takes effect
8-13     immediately if it receives a vote of two-thirds of all the members
8-14     elected to each house, as provided by Section 39, Article III,
8-15     Texas Constitution.  If this Act does not receive the vote
8-16     necessary for immediate effect, this Act takes effect September 1,
8-17     2001.