By: Staples S.B. No. 1821 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 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 591, 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 (a) Anderson county, save and except all of that portion of 1-20 Anderson County included within the Anderson County Underground 1-21 Water Conservation District as defined in particular in Chapter 1-22 992, Section 4, General and Special Laws of the State of Texas of 1-23 the 70th Legislative Session; and 2-1 (b) Cherokee county; and 2-2 (c) Henderson county. 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. POWERS. (a) Except as provided by this section, 2-10 the district has all of the rights, powers, privileges, authority, 2-11 functions, and duties provided by the general law of this state, 2-12 including Chapter 36, Water Code, applicable to groundwater 2-13 conservation districts created under Section 59, Article XVI, Texas 2-14 Constitution. Chapter 49, Water Code, does not apply to the 2-15 district. This Act prevails over any provision of general law that 2-16 is in conflict or inconsistent with this Act. 2-17 (b) The district by rule may require a person to obtain a 2-18 permit from the district for the transfer of groundwater out of the 2-19 district consistent with Section 36.122, Water Code. The delivery 2-20 of water by a certificated retail public utility whose source of 2-21 water on the effective date of this Act is one or more wells 2-22 located within the district to the utility's certificated service 2-23 area under a certificate of convenience and necessity issued by the 2-24 Texas Natural Resource Conservation Commission, or to that 2-25 certificated area as it may be modified in the future by the Texas 2-26 Natural Resource Conservation Commission, is not a transfer of 3-1 groundwater outside the boundaries of the district subject to 3-2 Section 36.122, Water Code, if the water is not transported and 3-3 used outside the utility's certificated area. 3-4 (c) The district may not levy or collect taxes in the 3-5 district. 3-6 (d) The board of directors of the district by rule may 3-7 impose reasonable fees on each well for which a permit is issued by 3-8 the district and which is not exempt from regulation by the 3-9 district. The fee shall be based on the amount of water to be 3-10 withdrawn from the well and may not exceed $0.25 per acre foot for 3-11 water used for irrigating agricultural crops or operating existing 3-12 steam electric stations or $0.0425 per thousand gallons for water 3-13 used for any other purpose. The fees may be assessed annually, 3-14 based on the size of column pipe used in the wells, the production 3-15 capacity of the well, or actual, authorized, or anticipated 3-16 pumpage. 3-17 (e) A well meeting the criteria established under Section 3-18 36.117, Water Code, including a well used for dewatering and 3-19 monitoring in the production of coal and lignite, is exempt from 3-20 permit requirements, regulations, and fees imposed by the district. 3-21 (f) The district may not: 3-22 (1) exercise the power of eminent domain; 3-23 (2) issue and sell bonds or notes in the name of the 3-24 district; or 3-25 (3) purchase, sell, transport, or distribute surface 3-26 water or groundwater for any purpose. 4-1 SECTION 6. BOARD OF DIRECTORS. (a) The district is 4-2 governed by a board of directors appointed as provided by Section 7 4-3 of this Act. 4-4 (b) Except for the initial term, all directors serve a 4-5 four-year term. The terms of three initial directors will expire 4-6 at the end of the calendar year two years after the effective date 4-7 of the Act and the terms of three initial directors will expire at 4-8 the end of the calendar year four years after the effective date of 4-9 this Act. 4-10 (c) Subject to Subsection (b) of this section, the initial 4-11 directors shall draw lots to determine one initial director from 4-12 each county who shall serve a two-year term. The other initial 4-13 directors shall serve terms of four years. 4-14 (d) Each director must qualify to serve as a director in the 4-15 manner provided by Section 36.055, Water Code. 4-16 (e) A director serves until the director's successor has 4-17 qualified. 4-18 (f) Directors may serve consecutive terms. 4-19 (g) If there is a vacancy on the board, the governing body 4-20 of the entity that appointed the director who vacated the office 4-21 shall appoint a director to serve the remainder of the term. 4-22 (h) Directors are not entitled to receive compensation for 4-23 serving as a director but may be reimbursed for actual, reasonable 4-24 expenses incurred in the discharge of official duties. 4-25 (i) A majority vote of a quorum is required for board 4-26 action. If there is a tie vote, the proposed action fails. 5-1 SECTION 7. APPOINTMENT OF DIRECTORS. (a) The Anderson 5-2 County Commissioners Court shall appoint two directors. One 5-3 director shall represent the rural water and utilities and small 5-4 municipal water supply interests, and one director shall represent 5-5 the agricultural, industry, or landowner groundwater supply 5-6 interests of the county. 5-7 (b) The Cherokee County Commissioners Court shall appoint 5-8 two directors. One director shall represent the rural water and 5-9 utilities and small municipal water supply interests, and one 5-10 director shall represent the agriculture, industry, or landowner 5-11 groundwater supply interests of the county. 5-12 (c) The Henderson County Commissioners Court shall appoint 5-13 two directors. One director shall represent the rural water and 5-14 utilities and small municipal water supply interests, and one 5-15 director shall represent the agriculture, industry or landowner 5-16 groundwater supply interests of the county. 5-17 (d) The City Councils of the most populous municipality in 5-18 each county shall jointly appoint one director representing the 5-19 most populous cities of the counties. The appointment shall be 5-20 selected from each county on a rotating basis. 5-21 SECTION 8. ORGANIZATIONAL MEETING. As soon as practicable 5-22 after all the initial directors are appointed as provided in this 5-23 Act, a majority of the directors shall convene the organizational 5-24 meeting of the district at a location within the district agreeable 5-25 to a majority of the directors at which time the directors will 5-26 take office. If no location can be agreed upon, the organizational 6-1 meeting of the directors shall be at the Anderson County 6-2 Courthouse. 6-3 SECTION 9. CONFIRMATION ELECTION. (a) The initial board of 6-4 directors shall call and hold an election to confirm the 6-5 establishment of the district. 6-6 (b) Except as provided by this section, a confirmation 6-7 election must be conducted as provided by Sections 36.017 (b)-(h), 6-8 Water Code, and the Election Code. 6-9 (c) If the establishment of the district is not confirmed at 6-10 an election held under this section before the second anniversary 6-11 of the effective date of this Act, this Act expires on that date. 6-12 SECTION 10. ADDITION OF OTHER COUNTIES TO DISTRICT. (a) An 6-13 adjacent county that wishes to join the district shall petition the 6-14 district by resolution of the commissioners court of the county. 6-15 (b) If the board finds after a hearing on the resolution 6-16 that the addition of the county would benefit the district and the 6-17 county to be added, the board by resolution may approve the 6-18 addition of the county to the district. 6-19 (c) The addition of a county to the district under this 6-20 section is not final until ratified by a majority vote of the 6-21 qualified voters in the county to be added voting in an election 6-22 held for that purpose. 6-23 (d) The ballots for the election shall be printed to provide 6-24 for voting for or against the proposition: "The inclusion of 6-25 ____________ County in the Neches and Trinity Valleys Groundwater 6-26 Conservation District." 7-1 (e) The notice of the election, the manner and the time of 7-2 giving the notice, the manner of holding the election, and the 7-3 qualifications of the voters are governed by the Election Code. 7-4 SECTION 11. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 7-5 (a) The proper and legal notice of the intention to introduce this 7-6 Act, setting forth the general substance of this Act, has been 7-7 published as provided by law, and the notice and a copy of this Act 7-8 have been furnished to all persons, agencies, officials, or 7-9 entities to which they are required to be furnished by the 7-10 constitution and the laws of this state, including the governor, 7-11 who has submitted the notice and this Act to the Texas Natural 7-12 Resource Conservation Commission. 7-13 (b) The Texas Natural Resource Conservation Commission has 7-14 filed its recommendations relating to this Act with the governor, 7-15 lieutenant governor, and speaker of the house of representatives 7-16 within the required time. 7-17 (c) All the requirements of the constitution and the laws of 7-18 this state and rules and procedures of the legislature with respect 7-19 to the notice, introduction, and passage of this Act are fulfilled 7-20 and accomplished. 7-21 SECTION 12. EFFECTIVE DATE. This Act takes effect 7-22 immediately if it receives a vote of two-thirds of all the members 7-23 elected to each house, as provided by Section 39, Article III, 7-24 Texas Constitution. If this Act does not receive the vote 7-25 necessary for immediate effect, this Act takes effect September 1, 7-26 2001.