Subject to a confirmation election, the bill creates the Southeast Texas 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) and specifically provides that the District is not authorized to levy taxes, issue bonds, or exercise eminent domain.

1) Population - The boundaries of the proposed district are coextensive with the boundaries of Jasper and Newton Counties. The population of the proposed district in the Year 2000 Census was 50,676 residents. Population projections developed by the Texas Water Development Board indicate the population of the proposed district should increase to approximately 57,628 by the year 2020.

2) Location & Size - The District’s boundaries would be coextensive with the boundaries of Jasper and Newton Counties. The District would be established at its confirmation election if a majority of votes in at least one county favor creation of the District. A county would be included in the District only if a majority of the votes cast in that county favor creation of the District. Jasper and Newton Counties are not located within a Priority Groundwater Management Area designated by the TCEQ.

3) Powers - The bill specifies that Texas Water Code, Chapter 49, does not apply to the District. Unlike general law GCDs under Texas Water Code, Chapter 36, the District may not exercise the power of eminent domain. General law under Texas Water Code, Chapter 36, provides an exemption from permitting for wells that produce less than 25,000 gallons per day for specified types of use and tracts of land. Unlike general law GCDs under Chapter 36, the bill grants an exemption from District permitting for all wells that produce less than 25,000 gallons per day.

4) District Finances - Unlike general law GCDs under Texas Water Code, Chapter 36, the District is not authorized to levy ad valorem taxes or to issue or sell bonds or notes. Similar to general law GCDs, the District would be authorized to assess annual production fees on each well for which a permit is issued by the District. District fees would be based on the amount of water withdrawn from wells and would be capped at one cent per 1,000 gallons of water for any purpose. Under Texas Water Code, Chapter 36, general law GCDs are authorized to finance operation and maintenance costs and bond repayment through either the levy of taxes or through the assessment of production fees. Under Chapter 36, annual production fees may not exceed $1 per acre-foot for water used for agricultural purposes or $10 per acre-foot for water used for any other purpose. Same as general law GCDs under Texas Water Code, Chapter 36, the District may set fees for administrative services.

5) Board of Directors - Unlike general law GCDs with elected directors, the District would be governed initially by a board of seven appointed directors. The commissioners court of Jasper County would appoint three directors with one appointed to represent rural water utilities and small municipal water supply interests, one appointed to represent large industrial groundwater supply interests, and one appointed to represent large municipal utilities. The commissioners court of Newton County would appoint three directors with one appointed to represent rural water utilities and small municipal water supply interests, one appointed to represent forestry or agricultural groundwater supply interests, and one appointed to represent municipal utilities. The commissioners courts of both Jasper and Newton Counties would jointly appoint one director to represent the forestry, agricultural, or landowner groundwater interests in both counties. The jointly appointed director would serve as the presiding officer of the board. The seven initial directors appointed by the commissioners courts would draw lots to determine one-, two-, and three-year terms. The initial directors are responsible for conducting the District’s confirmation election. Permanent directors would be appointed to serve three-year terms as initial director terms expire.

Similar to general law GCDs under Texas Water Code, Chapter 36, the District would include only the counties that vote in favor of the District’s creation. If the District is confirmed by the voters in both counties, the seven-member board of directors continues as provided in the bill. If creation of the District is confirmed by the voters in only one county, the directors appointed from the other county and the jointly appointed director would cease service. The commissioners court of the county that confirmed District creation would appoint two additional directors at least one of whom must represent the forestry, agricultural, or landowner groundwater interests of the county.

6) Eminent Domain - Unlike general law GCDs under Texas Water Code, Chapter 36, the District is not authorized to exercise the power of eminent domain.

7) Ability to Tax - Unlike general law GCDs under Texas Water Code, Chapter 36, the District is not authorized to levy ad valorem taxes.

8) Overlapping Services - There are no other GCDs in Jasper or Newton Counties.

9) Exclusion and Addition of Territory - As with general law for GCDs, there are no provisions to exclude territory. Unlike general law GCDs under Texas Water Code, Chapter 36, the bill provides that adjacent counties may petition to be added to the District by resolution of a commissioners court. Under general law, ability to petition to be added to a groundwater conservation district is provided to either a majority of landowners in a defined area, at least 50 landowners in a defined area, or to the commissioners court of a county in designated priority groundwater management areas if the area seeking to be added to the district includes the entire county.

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

11) Comments on Powers /Duties Different from Similar Types of Districts - Similar to general law GCDs, the board would be authorized to revise the number of directors to provide appropriate representation if additional counties are added to the District. If the District has not been confirmed before the second anniversary of the effective date of the Act, the Act expires on that date.

12) TCEQ Supervision - Same as for general law GCDs. 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 39 percent of the district’s water use in the year 2000. Municipal water use accounted for 89 percent of the annual groundwater use.

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.