Subject to a confirmation election, the bill creates the Upshur County Groundwater Conservation District (District) providing for the powers, duties, administration, operation 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 of Upshur County. The population of the proposed district in the Year 2000 Census was 35,291 residents. Population projections developed by the Texas Water Development Board indicate the population of the proposed district should increase to 41,496 by the year 2020.

2) Location & Size - The District’s boundaries would be coextensive with the boundaries of Upshur County. Upshur 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.

4) District Finances - Same as general law GCDs under Texas Water Code, Chapter 36, including levying of maintenance tax, issuance of bonds and notes, 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, to be appointed by the Commissioners Court of Upshur County, are responsible for scheduling and conducting the District’s confirmation and initial directors election. The initial directors will draw lots to determine which two directors shall serve shorter terms and which three directors shall serve longer terms. Two permanent directors would be elected in May of the first even-numbered year after the year in which the District is confirmed by election, and the appropriate number of permanent directors would then be elected in May of each subsequent second year. A director in office when commissioner precincts are redrawn after each federal decennial census shall continue to serve until the end of the elected or appointed term. General law GCDs created under Texas Water Code, Chapter 36, have five directors elected by the general precinct method.

6) Eminent Domain - Same as general law GCDs under Texas Water Code, Chapter 36, the District is authorized to exercise the power of eminent domain.

7) Ability to Tax - Same as general law GCDs under Texas Water Code, Chapter 36, the District including the levy of a maintenance tax and the levy of taxes for the repayment of bonds or notes. Both types of taxes are subject to voter authorization. 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 not other GCDs in Upshur County.

9) Exclusion and Addition of Territory - 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 Upshur County and form a closure.

11) Comments on Powers /Duties Different from Similar Types of Districts - None. If passed, the Act would become effective on September 1, 2003. The Act would expire if the District has not been confirmed at an election held before on September 1, 2005.

12) TCEQ Supervision - 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 67 percent of the proposed district’s water use in the year 2000. Municipal water use accounted for 97 percent of the annual groundwater. The remaining groundwater use went to livestock and irrigated agriculture.

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.