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. 8-18 COMMITTEE AMENDMENT NO. 1 8-19 Amend S.B. 1821 as follows: 8-20 On page 2, line 17, strike the "," after the word "Code" and 8-21 insert a "." Strike the remainder of subsection (b) beginning on 8-22 line 17 and ending on line 26 and insert the following: 8-23 "The district may determine that a transfer of groundwater 8-24 produced within the district's boundaries for use outside the 8-25 district's boundaries will not be considered a transfer outside the 8-26 district if: 9-1 (1) the transfer is for use as a potable water supply by a 9-2 retail public utility as defined by Section 13.002, Water Code, and 9-3 is within an authorized service area of which an appropriate 9-4 portion, as determined by the district, is located inside the 9-5 district's boundaries; 9-6 (2) or the transfer involves an emergency potable water 9-7 interconnect between retail public utilities, as defined by Section 9-8 13.002, Water Code." 9-9 Counts 9-10 COMMITTEE AMENDMENT NO. 2 9-11 Amend S.B. 1821 as follows: 9-12 On page 3, line 3, strike subsection (d) in its entirety and 9-13 insert the following: 9-14 "The board of directors of the district: 9-15 (a) May set fees for administrative acts of the district, 9-16 such as filing applications. Fees set by a district may not 9-17 unreasonably exceed the cost to the district of performing the 9-18 administrative function for which the fee is charged. 9-19 (b) Shall set and collect fees for all services provided 9-20 outside the boundaries of the district. The fees may not 9-21 unreasonably exceed the cost to the district of providing the 9-22 services outside the district. 9-23 (c) May assess production fees based on the amount of water 9-24 authorized by permit to be withdrawn from a well or the amount 9-25 actually withdrawn. A district may assess the fees in lieu of, or 9-26 in conjunction with, any taxes otherwise levied by the district. A 10-1 district may use revenues generated by the fees for any lawful 10-2 purpose. Production fees shall not exceed: 10-3 (1) $1 per acre-foot payable annually for water used 10-4 for agricultural use; or 10-5 (2) $10 per acre-foot payable annually for water used 10-6 for any other purpose. 10-7 (d) May assess a production fee under (c) for any water 10-8 produced under an exemption under Section 36.117, Water Code, if 10-9 that water is subsequently sold to another person." 10-10 Counts