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.