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. The district 2-18 may determine that a transfer of groundwater produced within the 2-19 district's boundaries for use outside the district's boundaries 2-20 will not be considered a transfer outside the district if: 2-21 (1) the transfer is for use as a potable water supply 2-22 by a retail public utility as defined by Section 13.002, Water 2-23 Code, and is within an authorized service area of which an 2-24 appropriate portion, as determined by the district, is located 2-25 inside the district's boundaries; or 2-26 (2) the transfer involves an emergency potable water 3-1 interconnect between retail public utilities, as defined by Section 3-2 13.002, Water Code. 3-3 (c) The district may not levy or collect taxes in the 3-4 district. 3-5 (d) The board of directors of the district: 3-6 (1) May set fees for administrative acts of the 3-7 district, such as filing applications. Fees set by a district may 3-8 not unreasonably exceed the cost to the district of performing the 3-9 administrative function for which the fee is charged. 3-10 (2) Shall set and collect fees for all services 3-11 provided outside the boundaries of the district. The fees may not 3-12 unreasonably exceed the cost to the district of providing the 3-13 services outside the district. 3-14 (3) May assess production fees based on the amount of 3-15 water authorized by permit to be withdrawn from a well or the 3-16 amount actually withdrawn. A district may assess the fees in lieu 3-17 of, or in conjunction with, any taxes otherwise levied by the 3-18 district. A district may use revenues generated by the fees for 3-19 any lawful purpose. Production fees shall not exceed: 3-20 (A) $1 per acre-foot payable annually for water 3-21 used for agricultural use; or 3-22 (B) $10 per acre-foot payable annually for water 3-23 used for any other purpose. 3-24 (4) May assess a production fee under Subdivision (3) 3-25 of this subsection for any water produced under an exemption under 3-26 Section 36.117, Water Code, if that water is subsequently sold to 4-1 another person. 4-2 (e) A well meeting the criteria established under Section 4-3 36.117, Water Code, including a well used for dewatering and 4-4 monitoring in the production of coal and lignite, is exempt from 4-5 permit requirements, regulations, and fees imposed by the district. 4-6 (f) The district may not: 4-7 (1) exercise the power of eminent domain; 4-8 (2) issue and sell bonds or notes in the name of the 4-9 district; or 4-10 (3) purchase groundwater rights unless the purchased 4-11 rights are acquired for conservation purposes and are permanently 4-12 held in trust not to be produced. 4-13 SECTION 6. BOARD OF DIRECTORS. (a) The district is 4-14 governed by a board of directors appointed as provided by Section 7 4-15 of this Act. 4-16 (b) Except for the initial term, all directors appointed by 4-17 the county commissioners court in each county in the district serve 4-18 four-year terms. The director appointed jointly under Subsection 4-19 (b), Section 7 of this Act, serves a two-year term. The terms of 4-20 four initial directors will expire at the end of the calendar year 4-21 two years after the effective date of this Act and the terms of 4-22 three initial directors will expire at the end of the calendar year 4-23 four years after the effective date of this Act. 4-24 (c) Subject to Subsection (b) of this section, the initial 4-25 directors appointed by the county commissioners court in each 4-26 county shall draw lots to determine one initial director from each 5-1 county who shall serve a two-year term. The other initial 5-2 directors shall serve terms of four years. 5-3 (d) Each director must qualify to serve as a director in the 5-4 manner provided by Section 36.055, Water Code. 5-5 (e) A director serves until the director's successor has 5-6 qualified. 5-7 (f) Directors may serve consecutive terms. 5-8 (g) If there is a vacancy on the board of directors, the 5-9 governing body of the entity that appointed the director who 5-10 vacated the office shall appoint a director to serve the remainder 5-11 of the term. 5-12 (h) Directors are not entitled to receive compensation for 5-13 serving as a director but may be reimbursed for actual, reasonable 5-14 expenses incurred in the discharge of official duties. 5-15 (i) A majority vote of a quorum is required for board 5-16 action. If there is a tie vote, the proposed action fails. 5-17 SECTION 7. APPOINTMENT OF DIRECTORS. (a) The commissioners 5-18 court of each county in the district shall appoint one director to 5-19 represent the rural water and utilities and small municipal water 5-20 supply interests of the county and one director to represent the 5-21 agriculture, industry, or landowner groundwater supply interests of 5-22 the county. 5-23 (b) The governing body of the most populous municipality in 5-24 each county in the district, acting jointly with the governing body 5-25 of the most populous municipality in each other county in the 5-26 district, shall appoint one director representing those 6-1 municipalities. The governing bodies shall appoint residents of 6-2 the district on a rotating basis so that a resident of each county 6-3 is appointed every sixth year. 6-4 (c) The governing bodies authorized by this section to make 6-5 an appointment shall appoint the appropriate number of directors as 6-6 soon as practicable after the effective date of this Act, but not 6-7 later than the 45th day after the effective date of this Act. 6-8 SECTION 8. ORGANIZATIONAL MEETING. As soon as practicable 6-9 after all the initial directors are appointed as provided in this 6-10 Act, a majority of the directors shall convene the organizational 6-11 meeting of the district at a location within the district agreeable 6-12 to a majority of the directors at which time the directors will 6-13 take office. If no location can be agreed upon, the organizational 6-14 meeting of the directors shall be at the Anderson County 6-15 Courthouse. 6-16 SECTION 9. CONFIRMATION ELECTION. (a) The initial board of 6-17 directors shall call and hold an election on the same date in each 6-18 county within the district to confirm the creation of the district. 6-19 (b) Except as provided by this section, a confirmation 6-20 election must be conducted as provided by Sections 36.017, 36.018, 6-21 and 36.019, Water Code, and Section 41.001, Election Code. 6-22 (c) If the majority of qualified voters in a county who vote 6-23 in the election vote to confirm the creation of the district, that 6-24 county is included in the district. If the majority of qualified 6-25 voters in a county who vote in the election vote not to confirm the 6-26 creation of the district, that county is excluded from the 7-1 district. 7-2 (d) If the creation of the district is not confirmed by an 7-3 election held under this section before the second anniversary of 7-4 the effective date of this Act, the district is dissolved and this 7-5 Act expires on that date. 7-6 SECTION 10. ADDITION OF OTHER COUNTIES OR CERTAIN 7-7 UNDERGROUND WATER DISTRICTS TO DISTRICT. (a) An adjacent county 7-8 or an underground water conservation district whose boundaries lie 7-9 wholly within the boundaries of the Neches and Trinity Valleys 7-10 Groundwater Conservation District that wishes to join the district 7-11 shall petition the district by resolution of the commissioners 7-12 court of the county or the board of directors of the underground 7-13 water conservation district. 7-14 (b) If the board of directors finds after a hearing on the 7-15 resolution that the addition of the county or underground water 7-16 conservation district would benefit the district and the county or 7-17 underground water conservation district to be added, the board by 7-18 resolution may approve the addition of the county or underground 7-19 water conservation district to the district. 7-20 (c) The addition of a county or underground water 7-21 conservation district to the district under this section is not 7-22 final until ratified by a majority vote of the qualified voters in 7-23 the county or within the boundaries of the underground water 7-24 conservation district to be added voting in an election held for 7-25 that purpose. 7-26 (d) The ballots for the election shall be printed to provide 8-1 for voting for or against the proposition: "The inclusion of 8-2 _______ County in the Neches and Trinity Valleys Groundwater 8-3 Conservation District." or "The inclusion of ________ Underground 8-4 Water Conservation District in the Neches and Trinity Valleys 8-5 Groundwater Conservation District." 8-6 (e) The notice of the election, the manner and the time of 8-7 giving the notice, the manner of holding the election, and the 8-8 qualifications of the voters are governed by the Election Code. 8-9 SECTION 11. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 8-10 (a) The proper and legal notice of the intention to introduce this 8-11 Act, setting forth the general substance of this Act, has been 8-12 published as provided by law, and the notice and a copy of this Act 8-13 have been furnished to all persons, agencies, officials, or 8-14 entities to which they are required to be furnished by the 8-15 constitution and the laws of this state, including the governor, 8-16 who has submitted the notice and this Act to the Texas Natural 8-17 Resource Conservation Commission. 8-18 (b) The Texas Natural Resource Conservation Commission has 8-19 filed its recommendations relating to this Act with the governor, 8-20 lieutenant governor, and speaker of the house of representatives 8-21 within the required time. 8-22 (c) All the requirements of the constitution and the laws of 8-23 this state and rules and procedures of the legislature with respect 8-24 to the notice, introduction, and passage of this Act are fulfilled 8-25 and accomplished. 8-26 SECTION 12. EFFECTIVE DATE. This Act takes effect 9-1 immediately if it receives a vote of two-thirds of all the members 9-2 elected to each house, as provided by Section 39, Article III, 9-3 Texas Constitution. If this Act does not receive the vote 9-4 necessary for immediate effect, this Act takes effect September 1, 9-5 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1821 passed the Senate on May 14, 2001, by the following vote: Yeas 30, Nays 0, one present not voting; and that the Senate concurred in House amendments on May 25, 2001, by the following vote: Yeas 30, Nays 0, one present not voting. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1821 passed the House, with amendments, on May 23, 2001, by the following vote: Yeas 145, Nays 0, two present not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor