1-1 By: Staples S.B. No. 1821 1-2 (In the Senate - Filed April 20, 2001; April 23, 2001, read 1-3 first time and referred to Committee on Natural Resources; 1-4 May 4, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 6, Nays 0; May 4, 2001, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1821 By: Barrientos 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation, administration, powers, duties, 1-11 operations, and financing of the Neches and Trinity Valleys 1-12 Groundwater Conservation District. 1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. CREATION. (a) A groundwater conservation 1-15 district, to be known as the Neches and Trinity Valleys Groundwater 1-16 Conservation District, is created in Anderson, Cherokee, and 1-17 Henderson counties subject to approval at a confirmation election 1-18 held under Section 9 of this Act. The district is a governmental 1-19 agency and body politic and corporate. 1-20 (b) The district is created under and is essential to 1-21 accomplish the purposes of Section 59, Article XVI, Texas 1-22 Constitution. 1-23 SECTION 2. DEFINITION. In this Act, "district" means the 1-24 Neches and Trinity Valleys Groundwater Conservation District. 1-25 SECTION 3. BOUNDARIES. The boundaries of the district are 1-26 coextensive with the boundaries of: 1-27 (1) Anderson County, save and except all of that 1-28 portion of Anderson County included within the Anderson County 1-29 Underground Water Conservation District as defined in particular in 1-30 Section 4, Chapter 992, Acts of the 70th Legislature, Regular 1-31 Session, 1987; 1-32 (2) Cherokee County; and 1-33 (3) Henderson County. 1-34 SECTION 4. FINDING OF BENEFIT. All of the land and other 1-35 property included within the boundaries of the district will be 1-36 benefitted by the works and projects that are to be accomplished by 1-37 the district under powers conferred by Section 59, Article XVI, 1-38 Texas Constitution. The district is created to serve a public use 1-39 and benefit. 1-40 SECTION 5. POWERS. (a) Except as provided by this section, 1-41 the district has all of the rights, powers, privileges, authority, 1-42 functions, and duties provided by the general law of this state, 1-43 including Chapter 36, Water Code, applicable to groundwater 1-44 conservation districts created under Section 59, Article XVI, Texas 1-45 Constitution. Chapter 49, Water Code, does not apply to the 1-46 district. This Act prevails over any provision of general law that 1-47 is in conflict or inconsistent with this Act. 1-48 (b) The district by rule may require a person to obtain a 1-49 permit from the district for the transfer of groundwater out of the 1-50 district consistent with Section 36.122, Water Code, and may 1-51 regulate the terms on which a permit holder under those rules may 1-52 conduct such a transfer. A retail public utility as defined by 1-53 Section 13.002, Water Code, is not required to obtain a permit to 1-54 transfer groundwater out of the district if: 1-55 (1) the source of the water is one or more wells 1-56 located within the district; and 1-57 (2) the water is used by the retail public utility to 1-58 provide retail water utility service, as defined by Section 13.002, 1-59 Water Code. 1-60 (c) The district may not levy or collect taxes in the 1-61 district. 1-62 (d) The board of directors of the district by rule may 1-63 impose reasonable fees on each well for which a permit is issued by 1-64 the district and which is not exempt from regulation by the 2-1 district. The fee shall be based on the amount of water to be 2-2 withdrawn from the well and may not exceed $0.25 per acre-foot for 2-3 water used for irrigating agricultural crops or operating existing 2-4 steam electric stations or $0.0425 per thousand gallons for water 2-5 used for any other purpose. The fees may be assessed annually, 2-6 based on the size of column pipe used in the wells, the production 2-7 capacity of the well, or actual, authorized, or anticipated 2-8 pumpage. 2-9 (e) A well meeting the criteria established under Section 2-10 36.117, Water Code, including a well used for dewatering and 2-11 monitoring in the production of coal and lignite, is exempt from 2-12 permit requirements, regulations, and fees imposed by the district. 2-13 (f) The district may not: 2-14 (1) exercise the power of eminent domain; 2-15 (2) issue and sell bonds or notes in the name of the 2-16 district; or 2-17 (3) purchase, sell, transport, or distribute surface 2-18 water or groundwater for any purpose. 2-19 SECTION 6. BOARD OF DIRECTORS. (a) The district is 2-20 governed by a board of directors appointed as provided by Section 7 2-21 of this Act. 2-22 (b) Except for the initial term, all directors appointed by 2-23 the county commissioners court in each county in the district serve 2-24 four-year terms. The director appointed jointly under Subsection 2-25 (b), Section 7 of this Act, serves a two-year term. The terms of 2-26 four initial directors will expire at the end of the calendar year 2-27 two years after the effective date of this Act and the terms of 2-28 three initial directors will expire at the end of the calendar year 2-29 four years after the effective date of this Act. 2-30 (c) Subject to Subsection (b) of this section, the initial 2-31 directors appointed by the county commissioners court in each 2-32 county shall draw lots to determine one initial director from each 2-33 county who shall serve a two-year term. The other initial 2-34 directors shall serve terms of four years. 2-35 (d) Each director must qualify to serve as a director in the 2-36 manner provided by Section 36.055, Water Code. 2-37 (e) A director serves until the director's successor has 2-38 qualified. 2-39 (f) Directors may serve consecutive terms. 2-40 (g) If there is a vacancy on the board of directors, the 2-41 governing body of the entity that appointed the director who 2-42 vacated the office shall appoint a director to serve the remainder 2-43 of the term. 2-44 (h) Directors are not entitled to receive compensation for 2-45 serving as a director but may be reimbursed for actual, reasonable 2-46 expenses incurred in the discharge of official duties. 2-47 (i) A majority vote of a quorum is required for board 2-48 action. If there is a tie vote, the proposed action fails. 2-49 SECTION 7. APPOINTMENT OF DIRECTORS. (a) The commissioners 2-50 court of each county in the district shall appoint one director to 2-51 represent the rural water and utilities and small municipal water 2-52 supply interests of the county and one director to represent the 2-53 agriculture, industry, or landowner groundwater supply interests of 2-54 the county. 2-55 (b) The governing body of the most populous municipality in 2-56 each county in the district, acting jointly with the governing body 2-57 of the most populous municipality in each other county in the 2-58 district, shall appoint one director representing those 2-59 municipalities. The governing bodies shall appoint residents of 2-60 the district on a rotating basis so that a resident of each county 2-61 is appointed every sixth year. 2-62 (c) The governing bodies authorized by this section to make 2-63 an appointment shall appoint the appropriate number of directors as 2-64 soon as practicable after the effective date of this Act, but not 2-65 later than the 45th day after the effective date of this Act. 2-66 SECTION 8. ORGANIZATIONAL MEETING. As soon as practicable 2-67 after all the initial directors are appointed as provided in this 2-68 Act, a majority of the directors shall convene the organizational 2-69 meeting of the district at a location within the district agreeable 3-1 to a majority of the directors at which time the directors will 3-2 take office. If no location can be agreed upon, the organizational 3-3 meeting of the directors shall be at the Anderson County 3-4 Courthouse. 3-5 SECTION 9. CONFIRMATION ELECTION. (a) The initial board of 3-6 directors shall call and hold an election on the same date in each 3-7 county within the district to confirm the creation of the district. 3-8 (b) Except as provided by this section, a confirmation 3-9 election must be conducted as provided by Sections 36.017, 36.018, 3-10 and 36.019, Water Code, and Section 41.001, Election Code. 3-11 (c) If the majority of qualified voters in a county who vote 3-12 in the election vote to confirm the creation of the district, that 3-13 county is included in the district. If the majority of qualified 3-14 voters in a county who vote in the election vote not to confirm the 3-15 creation of the district, that county is excluded from the 3-16 district. 3-17 (d) If the creation of the district is not confirmed by an 3-18 election held under this section before the second anniversary of 3-19 the effective date of this Act, the district is dissolved and this 3-20 Act expires on that date. 3-21 SECTION 10. ADDITION OF OTHER COUNTIES OR CERTAIN 3-22 UNDERGROUND WATER DISTRICTS TO DISTRICT. (a) An adjacent county 3-23 or an underground water conservation district whose boundaries lie 3-24 wholly within the boundaries of the Neches and Trinity Valleys 3-25 Groundwater Conservation District that wishes to join the district 3-26 shall petition the district by resolution of the commissioners 3-27 court of the county or the board of directors of the underground 3-28 water conservation district. 3-29 (b) If the board of directors finds after a hearing on the 3-30 resolution that the addition of the county or underground water 3-31 conservation district would benefit the district and the county or 3-32 underground water conservation district to be added, the board by 3-33 resolution may approve the addition of the county or underground 3-34 water conversation district to the district. 3-35 (c) The addition of a county or underground water 3-36 conservation district to the district under this section is not 3-37 final until ratified by a majority vote of the qualified voters in 3-38 the county or within the boundaries of the underground water 3-39 conservation district to be added voting in an election held for 3-40 that purpose. 3-41 (d) The ballots for the election shall be printed to provide 3-42 for voting for or against the proposition: "The inclusion of 3-43 _______ County in the Neches and Trinity Valleys Groundwater 3-44 Conservation District." or "The inclusion of ________ Underground 3-45 Water Conservation District in the Neches and Trinity Valleys 3-46 Groundwater Conservation District." 3-47 (e) The notice of the election, the manner and the time of 3-48 giving the notice, the manner of holding the election, and the 3-49 qualifications of the voters are governed by the Election Code. 3-50 SECTION 11. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 3-51 (a) The proper and legal notice of the intention to introduce this 3-52 Act, setting forth the general substance of this Act, has been 3-53 published as provided by law, and the notice and a copy of this Act 3-54 have been furnished to all persons, agencies, officials, or 3-55 entities to which they are required to be furnished by the 3-56 constitution and the laws of this state, including the governor, 3-57 who has submitted the notice and this Act to the Texas Natural 3-58 Resource Conservation Commission. 3-59 (b) The Texas Natural Resource Conservation Commission has 3-60 filed its recommendations relating to this Act with the governor, 3-61 lieutenant governor, and speaker of the house of representatives 3-62 within the required time. 3-63 (c) All the requirements of the constitution and the laws of 3-64 this state and rules and procedures of the legislature with respect 3-65 to the notice, introduction, and passage of this Act are fulfilled 3-66 and accomplished. 3-67 SECTION 12. EFFECTIVE DATE. This Act takes effect 3-68 immediately if it receives a vote of two-thirds of all the members 3-69 elected to each house, as provided by Section 39, Article III, 4-1 Texas Constitution. If this Act does not receive the vote 4-2 necessary for immediate effect, this Act takes effect September 1, 4-3 2001. 4-4 * * * * *