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.
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