Subject to a confirmation election, the bill creates the Kenedy County Groundwater Conservation District (District) providing for the powers, duties, administration, operations and financing of the District. The bill authorizes the District with the powers and duties of Texas Water Code, Chapter 36, related to the general law for Groundwater Conservation Districts (GCDs).

1) Population - The boundaries of the proposed district are coextensive with the boundary Kenedy County. The population of the proposed district in the Year 2000 Census was 414 residents. Population projections developed by the Texas Water Development Board indicate the population of the proposed district should increase to approximately 495 by the year 2020.

2) Location & Size - The District’s boundaries would be coextensive with the boundaries of Kenedy County. Kenedy County is not located within a Priority Groundwater Management Area designated by the TCEQ.

3) Powers - Same as general law GCDs under Texas Water Code, Chapter 36. The bill specifies that Texas Water Code, Chapter 49, does not apply to the District.

4) District Finances - Same as general law GCDs under Texas Water Code, Chapter 36, including issuance of bonds and notes, levying of maintenance tax, assessing of production fees, and setting administrative fees.

5) Board of Directors - Similar to general law GCD under Texas Water Code, Chapter 36, the District would be governed by a board of five elected directors serving staggered four-year terms. Unlike general law GCDs, directors would be elected according to the commissioners precinct method with one director elected from each commissioners precinct and one director elected at-large. The temporary directors, appointed by the Commissioners Court of Kenedy County, are responsible for scheduling and conducting the District’s confirmation and initial directors election. Initial directors would serve a set term that would expire in May of the first even-numbered year after the year in which the District is confirmed by election, at which time permanent directors would be elected. The permanent directors would draw lots to determine which three would serve four-year terms and which two would serve two-year terms. The appropriate number of directors would then be elected in May of each subsequent second year. General law GCDs under Texas Water Code, Chapter 36, have 5 to 11 directors elected by the general precinct method.

6) Eminent Domain - Same as general law GCDs under Texas Water Code, Chapter 36.

7) Ability to Tax - Similar to general law GCDs under Texas Water Code, Chapter 36, including the levy of taxes for the repayment of bonds or notes and the levy of a maintenance tax. Both types of taxes are subject to voter authorization. The District may not may not levy a tax that exceeds $0.20 per $100 of assessed valuation to pay any part of bonds or notes. Under Texas Water Code, Chapter 36, the maintenance tax for general law GCDs may not exceed $0.50 per $100 assessed valuation and the tax rate for the repayment of bonds or notes is not limited.

8) Overlapping Services - There are no other GCDs in Kenedy County.

9) Ability to Exclude Property - As with general law for GCDs, there are no provisions to exclude territory.

10) Adequacy of Boundary Description - The District’s boundaries would be the same as the county boundaries of Kenedy County and form a closure.

11) Comments on Powers /Duties Different from Similar Types of Districts - Unlike general law GCDs under Texas Water Code, Chapter 36, District directors are not entitled to fees of office. Under Chapter 36, directors of general law GCDs are entitled to receive fees of office of not more that $150 a day for each day spends performing duties as a director. If passed, the Act would become effective on September 1, 2001. The Act would expire if the District has not been confirmed at an election held before on September 1, 2003.

12) Texas Commission on Environmental Quality Supervision - Same as for general law GCDs, including bond review authority. The TCEQ’s supervision authority as it is related to the District’s development and implementation of a management plan would be the same as for general law GCDs. As with general law GCDs, the District would not have to comply with TCEQ financial auditing requirements.

13) State Water Plan Objectives - Local groundwater resources provided approximately 28 percent of the district’s water use in the year 2000. Municipal water use accounted for 37 percent of the annual groundwater use. The remaining groundwater use was split roughly between irrigated agriculture and livestock raising. Board staff finds that creation of the proposed district is not in conflict with the State Water Plan objectives of promoting the efficient use of local groundwater resources and the implementation of practices and programs to effectively manage local groundwater resources.