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79R7876 T
By: Armbrister S.B. No. 1537
A BILL TO BE ENTITLED
AN ACT
relating to the administration, powers, duties, and operations of
the Harris-Galveston Coastal Subsidence District and the Fort Bend
Subsidence District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 8801, Special Districts Code, is amended
to read as follows:
CHAPTER 8801. HARRIS-GALVESTON COASTAL SUBSIDENCE DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8801.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "District" means the Harris-Galveston Coastal
Subsidence District.
(4) "Groundwater" means water located beneath the
earth's surface. The term does not include water produced with oil
in the production of oil and gas.
(5) "Subsidence" means the lowering of the elevation
of the surface of land by groundwater withdrawal.
(6) "Water conservation" means a measure that seeks to
make a water supply available for alternative or future use. The
term includes best management practices, improved efficiency or
accountability, recycling, reuse, pollution prevention, and
reduction in consumption, loss, or waste.
(7) "Well" means a facility, device, or method used to
withdraw groundwater from the groundwater supply.
(8) "Well owner" means a person who has an ownership
interest in a well, operates a well, owns land on which a well is
located, or owns the water withdrawn or to be withdrawn from a well.
(9) "Withdrawal" means the act of extracting by
pumping or some other method.
(10) "Agricultural crop" means food or fiber
commodities grown for resale or commercial purposes, that provide
food, clothing, or animal feed, and also includes nursery products
and florist items while in the hands of a nursery grower.
(11) "Florist item" means a cut flower, potted plant,
blooming plant, inside foliage plant, bedding plant, corsage
flower, cut foliage, floral decoration, or live decorative
material.
(12) "Nursery grower" means a person who grows, in any
medium, more than 50 percent of the nursery products or florist
items that the person either sells or leases, regardless of the
variety sold, leased, or grown. For the purposes of this
definition, "grow" means the actual cultivation or propagation of
the nursery product or florist item beyond the mere holding or
maintaining of the item prior to sale or lease and typically
includes activities associated with the production or multiplying
of stock such as the development of new plants from cuttings,
grafts, plugs, or seedlings.
(13) "Nursery product" includes a tree, shrub, vine,
cutting, graft, scion, grass, bulb, or bud that is grown for, kept
for, or is capable of, propagation and distribution for sale or
lease.
(14) "Beneficial use" means use for:
(A) agricultural, gardening, domestic, stock
raising, municipal, mining, manufacturing, industrial, commercial,
recreational, or pleasure purposes;
(B) exploring for, producing, handling, or
treating oil, gas, sulphur, or other minerals; or
(C) any other purpose that is useful and
beneficial to the user.
(15) "Waste" means any one or more of the following:
(A) withdrawal of groundwater from a groundwater
reservoir at a rate and in an amount that causes or threatens to
cause intrusion into the reservoir of water unsuitable for
agricultural, gardening, domestic, or stock raising purposes;
(B) the flowing or producing of wells from a
groundwater reservoir if the water produced is not used for a
beneficial use or if the amount used is more than is reasonably
required for a beneficial use;
(C) escape of groundwater from a groundwater
reservoir to any other reservoir or geologic strata that does not
contain groundwater;
(D) pollution or harmful alteration of
groundwater in a groundwater reservoir by saltwater or by other
deleterious matter admitted from another stratum or from the
surface of the ground;
(E) wilfully or negligently causing, suffering,
or allowing groundwater to escape or flow into any river, creek,
natural watercourse, depression, lake, reservoir, drain, sewer,
street, highway, road, or road ditch, or onto any land other than
that of the owner of the well unless such discharge is authorized by
permit, rule, or order issued by the commission under Chapter 26;
(F) groundwater pumped for irrigation that
escapes as irrigation tailwater onto land other than that of the
owner of the well unless permission has been granted by the occupant
of the land receiving the discharge; or
(G) for water produced from an artesian well,
"waste" has the meaning assigned by Section 11.205.
Sec. 8801.002. NATURE OF DISTRICT. The district is a
[groundwater] conservation and reclamation district created under
Section 59, Article XVI, Texas Constitution, and is essential to
accomplish the purposes of that section.
Sec. 8801.003. PURPOSE; LEGISLATIVE INTENT. (a) The
purpose of this chapter is to provide for the regulation of
groundwater withdrawal in the district to end subsidence, which
contributes to or precipitates flooding or overflow of the
district, including rising water resulting from a storm or
hurricane.
(b) The legislature intends that the district shall
administer and enforce this chapter and exercise the district's
rights, powers, and duties in a manner that will effectively and
expeditiously accomplish the purpose of this chapter.
Sec. 8801.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
(b) The works and projects accomplished by the district
under powers conferred by Section 59, Article XVI, Texas
Constitution, will benefit all the land and other property included
in the district.
Sec. 8801.005. DISTRICT TERRITORY. The district includes
the territory located within the boundaries of Harris County and
Galveston County, as that territory may have been modified under:
(1) Section 8801.006 or its predecessor statute,
former Section 151.003(b), Water Code; or
(2) [Subchapter J, Chapter 36, Water Code; or
(3)] other law.
[Sec. 8801.006. ADDITION OF ADJACENT COUNTY TO DISTRICT.
(a) A county adjoining the district may be added to the district:
(1) on application by the commissioners court of the
adjoining county; and
(2) by complying with the procedures provided by
Subchapter K, Chapter 36, Water Code.
(b) A county added to the district under this section is
subject to this chapter and the jurisdiction of the board.]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 8801.051. DIRECTORS. (a) The district is governed by
a board composed of 19 directors appointed as provided by this
section. Directors serve for two-year, staggered terms. A
director must be a qualified voter of the district.
(b) The mayor of the municipality with the largest
population of any municipality in the district shall appoint six
directors from that municipality. One of those directors must be a
representative of industry.
(c) The mayor of the municipality with the second largest
population of any municipality in the district shall appoint one
director from that municipality.
(d) The mayors of all municipalities in Galveston County
shall jointly appoint two directors from those municipalities.
(e) The mayor of Baytown shall appoint one director from the
municipality of Baytown.
(f) The Commissioners Court of Harris County shall appoint
three directors who are not residents of the municipality that has
the largest population of any municipality in the district. One of
those directors must be a representative of agriculture, one must
be a representative of industry, and one must be a representative of
municipal utility districts and a resident of a municipal utility
district in the district.
(g) The Commissioners Court of Galveston County shall
appoint three directors. One of those directors must be a
representative of municipal utility districts and a resident of a
municipal utility district in the district.
(h) The president of the Clear Lake City Water Authority and
the mayors of the municipalities of Deer Park, Galena Park, La
Porte, Nassau Bay, and Seabrook shall jointly appoint one director
from Harris County.
(i) The mayors of the municipalities of West University
Place, Southside Place, Bellaire, and Jacinto City shall jointly
appoint one director from Harris County.
(j) The mayors of the municipalities of Humble, Piney Point
Village, Hedwig Village, Bunker Hill Village, Hunters Creek
Village, Hilshire Village, and Spring Valley shall jointly appoint
one director from Harris County.
Sec. 8801.052. FEES OF OFFICE; REIMBURSEMENT. (a) A
director is entitled to receive fees of office of not more than $150
a day for each day the director actually spends performing the
duties of a director. The fees of office may not exceed $9,000 a
year.
(b) Each director is also entitled to receive reimbursement
of actual expenses reasonably and necessarily incurred while
engaging in activities on behalf of the district.
(c) In order to receive fees of office and to receive
reimbursement for expenses, each director shall file with the
district a verified statement showing the number of days actually
spent in the service of the district and a general description of
the duties performed for each day of service.
[APPOINTMENT OF DIRECTORS ON ADDITION OF COUNTY TO
DISTRICT. (a) On addition of a county to the district under
Section 8801.006, two directors are added to the board as follows:
(1) the commissioners court of the county added to the
district shall appoint one director; and
(2) the mayor of the municipality that has the largest
population in the added county shall appoint one director.
(b) The directors added to the board under Subsection (a)
shall draw lots to establish staggered terms of office.]
Sec. 8801.053. BOARD POWERS AND DUTIES. (a) In addition
to the powers and duties described in this chapter, the board has
all other powers necessary or convenient to carry out its
responsibilities and accomplish the purpose of this chapter.
(b) The board may adopt bylaws and policies to govern the
affairs of the district to perform its purposes. The board shall
also have the right to purchase all materials, supplies, equipment,
vehicles, and machinery needed by the district to perform its
purposes.
Sec. 8801.054. OFFICERS. (a) Each year, at the first
meeting after the new directors take office, the directors shall
select from among the directors a chairman [president], a
vice-chairman [president], and a secretary.
(b) The chairman shall preside over meetings of the board
and shall execute all documents on behalf of the district. The
vice-chairman shall act as chairman in case of the absence or
disability of the chairman. The secretary is responsible for
seeing that all records and books of the district are properly kept
and shall attest the chairman's signature on all documents. The
board may authorize another director, the general manager, or any
employee to execute documents on behalf of the district and to
certify as to the authenticity of any record of the district.
Sec. 8801.055. MEETINGS. (a) The board shall hold regular
meetings once each month at a time set by the board. The board may
hold special meetings at the call of the chairman [president] or on
the written request of at least three directors.
(b) A meeting of a committee of the board where less than a
quorum is present is not subject to the provisions of the Open
Meetings Act, Chapter 551, Government Code.
(c) Notice of meetings of the board shall be given as set
forth in the Open Meetings Act, Chapter 551, Government Code.
Neither failure to provide notice of a regular meeting nor an
insubstantial defect in notice of any meeting shall affect the
validity of any action taken at the meeting.
Sec. 8801.0551. QUORUM. A majority of the membership of
the board constitutes a quorum for any meeting, and a concurrence of
a majority of the entire membership of the board is sufficient for
transacting any business of the district.
Sec. 8801.0552. SWORN STATEMENT, BOND, AND OATH OF
OFFICE. (a) As soon as practicable after a director is appointed,
that director shall make the sworn statement prescribed by the
constitution for public office.
(b) As soon as practicable after a director has made the
sworn statement, and before beginning to perform the duties of
office, that director shall take the oath of office prescribed by
the constitution for public officers.
(c) Before beginning to perform the duties of office, each
director shall execute a bond for $10,000 payable to the district
and conditioned on the faithful performance of that director's
duties. All bonds of the directors shall be approved by the board
and paid for by the district.
(d) The sworn statement shall be filed as prescribed by the
constitution. The bond and oath shall be filed with the district
and retained in its records. A duplicate original of the oath shall
also be filed with the secretary of state within 10 days after its
execution and need not be filed before the new director begins to
perform the duties of office.
Sec. 8801.056. VACANCIES. If a vacancy occurs on the
board, a person representing the same area as the vacating director
shall be appointed as provided by Section 8801.051 to serve the
unexpired term.
Sec. 8801.057. GENERAL MANAGER. (a) The board shall
employ a general manager, who serves as the chief administrative
officer of the district. The board may delegate to the general
manager full authority to manage and operate the affairs of the
district subject only to orders of the board.
(b) The duties of the general manager include:
(1) administering board orders;
(2) coordinating with state, federal, and local
agencies;
(3) overseeing development of district plans and
programs; and
(4) performing other duties assigned by the board.
(c) The board shall determine the compensation and terms of
office and employment for the general manager.
(d) The board by majority vote may discharge the general
manager.
Sec. 8801.058. EMPLOYEES; BOND. (a) The general manager
shall employ persons necessary to properly handle district business
and operation. The general manager may employ attorneys,
bookkeepers, engineers, and other expert and specialized personnel
considered necessary.
(b) The general manager shall determine the compensation
paid to district employees.
(c) The general manager may discharge a district employee.
(d) The board shall require an employee who collects, pays,
or handles district funds to furnish a good and sufficient bond.
The bond must be in an amount sufficient to safeguard the district
and must be:
(1) payable to the district; and
(2) conditioned on the faithful performance of the
employee's duties and on accounting for all district funds and
property in the employee's hands.
(e) The district shall pay for the bond described by
Subsection (d).
Sec. 8801.059. EMPLOYEE BENEFITS. (a) The board may
provide for and administer retirement, disability, and death
compensation funds for the employees of the district.
(b) The board may establish a public retirement system in
accordance with the provisions of Chapter 810, Government Code.
The board may also provide for a deferred compensation plan
described by Section 457 of the Internal Revenue Code of 1986 (26
U.S.C. Section 457).
(c) The board may include hospitalization and medical
benefits to its employees as part of the compensation paid to
employees and may adopt any plan, rule, or regulation in connection
with it and amend or change the plan, rule, or regulation as it may
determine.
(d) The board may establish a sick leave pool for employees
of the district in the same manner as that authorized for the
creation of a sick leave pool for state employees by Subchapter A,
Chapter 661, Government Code.
Sec. 8801.060. EXPENDITURES. (a) The district's money may
be disbursed only by check, draft, order, electronic funds
transfer, or other instrument. The board may by resolution allow
disbursements to be transferred by federal reserve wire system to
accounts in the name of the district.
(b) Disbursements shall be signed by at least two directors,
except the board may by resolution allow certain employees of the
district, or a combination of employees and directors, to sign
disbursements on behalf of the board.
Sec. 8801.061. FISCAL YEAR. The district shall be operated
on the basis of a fiscal year equal to a calender year.
Sec. 8801.062. ANNUAL AUDIT. (a) Annually the board shall
have an audit made of the financial condition of the district.
(b) The annual audit and other district records must be open
to inspection during regular business hours at the principal office
of the district.
Sec. 8801.063. ANNUAL BUDGET. (a) The board shall adopt an
annual budget.
(b) The budget shall contain a complete financial
statement, including a statement of:
(1) the outstanding obligations of the district;
(2) the amount of cash on hand to the credit of each
fund of the district;
(3) the amount of money received by the district from
all sources during the previous year;
(4) the amount of money available to the district from
all sources during the ensuing year;
(5) the amount of the balances expected at the end of
the year in which the budget is being prepared;
(6) the estimated amount of revenues and balances
available to cover the proposed budget; and
(7) the estimated fee revenues that will be required.
(c) The annual budget may be amended on the board's
approval.
Sec. 8801.064. DEPOSITORY. (a) The board shall name one or
more banks to serve as depository for district funds.
(b) District funds shall be deposited as received with the
depository bank and shall remain on deposit. This subsection does
not limit the power of the board to place a portion of the
district's funds on time deposit or to purchase certificates of
deposit or other authorized investments.
(c) To the extent that funds in the depository are not
insured by the Federal Deposit Insurance Corporation, they shall be
secured in the manner provided by law for the security of funds by
the Public Funds Collateral Act, Chapter 2257, Government Code.
Sec. 8801.065. INVESTMENTS. (a) Funds of the district may
be invested and reinvested in accordance with the provisions of the
Public Funds Investment Act, Chapter 2256, Government Code.
(b) The board, by resolution, may provide that an authorized
representative of the district may invest and reinvest the funds of
the district and provide for money to be withdrawn from the
appropriate accounts of the district for investments on such terms
as the board considers advisable.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8801.101. DISTRICT POWERS AND DUTIES. [(a)] Except as
provided by [Sections 8801.102 and] Section 8801.103, the district
has all of the rights, powers, privileges, and authority necessary
and convenient to the exercise of its jurisdiction and powers as
provided by this chapter, whether such jurisdiction and powers are
specifically authorized by this chapter or implied by this chapter
or other law[, functions, and duties provided by the general laws of
this state, including Chapter 36, Water Code, that are applicable
to groundwater conservation districts created under Section 59,
Article XVI, Texas Constitution].
[(b) This chapter prevails over any other law in conflict or
inconsistent with this chapter.]
Sec. 8801.102. OTHER LAWS NOT APPLICABLE. (a) Other laws
governing the administration or operations of districts created
under Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, including Chapters 36 and 49, Water Code, shall not
apply to the district.
(b) Notwithstanding Section 36.052, Water Code, this
chapter prevails over any other law in conflict or inconsistent
with this chapter. [EXEMPTIONS. Sections 36.104, 36.114, 36.117,
and 36.201-36.204, Water Code, do not apply to the district.]
Sec. 8801.103. SALE OR DISTRIBUTION OF WATER PROHIBITED.
The district may not sell or distribute surface water or
groundwater for any purpose.
Sec. 8801.104. AUTHORITY TO COMPEL TESTIMONY, ADMINISTER
OATHS, AND ISSUE SUBPOENAS. If necessary to carry out its powers,
duties, and functions under this chapter, the board may:
(1) compel the testimony of a person;
(2) administer an oath to a person compelled to
testify before the board or a person designated by the board; and
(3) issue a subpoena to compel the testimony of a
person and the production of a document.
Sec. 8801.105. SUITS; REPRESENTATION BY ATTORNEY GENERAL.
(a) The district may sue and be sued in the courts of this state in
the name of the district by and through the board. All courts shall
take judicial notice of the creation of the district and of its
boundaries.
(b) At the request of the district, the [The] attorney
general shall defend the district in suits brought against the
district in all district and appellate courts of this state and in
the courts of the United States.
(c) Nothing in this chapter shall be construed to prohibit
the district from engaging outside attorneys to initiate or defend
suits on behalf of the district.
(d) The general manager shall be the agent of the district
on whom process, notice, or demand required or permitted by law to
be served upon the district may be served.
(e) The district shall not be required to give bond for
appeal, injunction, or costs in any suit to which it is a party.
(f) If the district prevails in any suit other than a suit in
which it voluntarily intervenes, the district may seek and the
court shall grant, in the same action, recover for attorney's fees,
costs for expert witnesses, and other costs incurred by the
district before the court. The amount of the attorney's fees shall
be fixed by the court.
Sec. 8801.106. GRANTS; CONTRACTS. (a) The district may
make or accept a grant, gratuity, advance, or loan in any form to or
from any public source approved by the board, including a
governmental entity, and may enter into a contract, agreement, or
covenant that the board considers appropriate in connection with a
grant, gratuity, advance, or loan.
(b) The district shall contract, and be contracted with, in
the name of the district.
(c) The district may purchase property from any other
governmental entity by negotiated contract without the necessity of
securing appraisals or advertising for bids.
(d) The district may use the reverse auction procedure, as
defined by Section 2155.062(d), Government Code, for purchasing.
Sec. 8801.107. COOPERATION WITH GOVERNMENTAL ENTITIES. In
implementing this chapter, the board may request the assistance of
and cooperate with a local government or an agency of this state or
of the United States.
Sec. 8801.108. RULES. (a) After notice and hearing, the
board shall adopt rules designed to expeditiously and effectively
implement this chapter and accomplish its purpose, including rules
governing procedures before the board. The board may adopt rules
intended to prevent the waste of groundwater or the degradation of
water quality. The board shall enforce the rules.
(b) The board shall compile its rules in a book and make the
rules available for use and inspection at the district's principal
office.
Sec. 8801.109. HEARINGS. (a) Board hearings must be
conducted as provided by this section and Section 8801.110.
(b) At a regular meeting of the board, the board shall set
the dates, times, and locations for hearings to be held under this
chapter. The board may hold hearings at any location in the
district and may recess a hearing from day to day.
(c) A person may appear at a hearing and present testimony,
evidence, exhibits, or other information in person or by counsel,
or both.
(d) The board may use hearing examiners to hear a subject
set for the hearing, but the board must make the decision on the
subject. Procedures for use of hearing examiners shall be provided
by rule.
Sec. 8801.110. NOTICE OF HEARINGS. (a) Except as provided
by this section, notice of hearings shall be provided according to
Chapter 551, Government Code.
(b) At a meeting at which the board sets a hearing, the board
shall direct the general manager of the district to give notice of
the hearing.
(c) For hearings other than hearings on permit
applications, written [Written] notice must be given to:
(1) each county and municipal government in the
district; and
(2) each person that the board believes has an
interest in the subject matter of the hearing.
(d) Notice of a hearing must be published at least once in a
newspaper of general circulation in each county in the district.
(e) A copy of the notice must be posted in the place where
notices are usually posted at the county courthouse of each county
in the district.
Sec. 8801.111. DISTRICT PLAN. (a) The board shall
formulate a plan to control and prevent subsidence in the district.
(b) The plan must:
(1) reduce groundwater withdrawals to amounts that
will restore and maintain sufficient artesian pressure to control
and prevent subsidence; and
(2) specify in as much detail as practicable the acts,
procedures, performance, and avoidance that are necessary to
accomplish the purpose of this chapter.
(c) Information gathered for formulating the plan must
include:
(1) a list of all wells in the district that are
subject to regulation under this chapter;
(2) a list of all available sources of water, other
than groundwater, in the district;
(3) the purposes for which the water described by
Subdivision (2) is used and for which it is proposed to be used;
(4) accurate estimates of:
(A) groundwater withdrawal from all wells or
proposed wells in the district;
(B) the amount of groundwater that may be
withdrawn from each area in the district without causing a
reduction of artesian pressure that will lead to subsidence in the
district; and
(C) current and future water needs in the
district;
(5) information relating to formulating a permit
system; and
(6) other information and material necessary to manage
groundwater in the district and to effectively and expeditiously
accomplish the purpose of this chapter.
Sec. 8801.112. ADOPTION OF DISTRICT PLAN. (a) The board
shall hold a hearing to consider a plan formulated under Section
8801.111.
(b) After the hearing, the board shall:
(1) make any changes it considers necessary according
to evidence and material presented at the hearing; and
(2) adopt the plan.
(c) The board may amend or repeal a plan adopted under this
section and may adopt a new plan as provided by this section for the
adoption of the original plan.
(d) An adopted plan remains in effect until a new plan is
adopted.
Sec. 8801.113. WATER CONSERVATION MEASURES. (a) The
board may adopt rules requiring the use of water conservation
measures to reduce groundwater withdrawals.
(b) The district may cooperate with the commission and any
local government to establish water conservation goals,
guidelines, and plans to be used in the district.
(c) The district may contract with a local government in the
district to provide services needed to meet water conservation
requirements that the commission establishes.
Sec. 8801.114. DISTRICT RESEARCH. (a) The district may
conduct studies and research that the board considers necessary to
implement this chapter. In conducting studies and research, the
district may use the services of geologists, hydrologists, licensed
engineers, or other expert personnel.
(b) The district may collect any information the board deems
necessary, including information regarding the use of groundwater,
water conservation, and the practicability of recharging a
groundwater reservoir.
Sec. 8801.115. STUDIES BY BOARD STAFF. At least once each
year and at any other time the board considers necessary, the board
shall have its staff and, if necessary, the staff of the Texas Water
Development Board make a complete study of the groundwater in the
district and determine:
(1) the water level;
(2) the rates and amounts of groundwater withdrawal;
and
(3) other information relating to groundwater
withdrawal that may effect subsidence in the district.
Sec. 8801.116. ACCESS TO PROPERTY. (a) To perform
technical and other investigations needed to implement this
chapter, the board and its agents and employees are entitled to
access to all property in the district.
(b) Before entering property for the purposes of this
section, the person seeking access shall:
(1) give notice to the owner of the property as
provided by district rules; and
(2) present proper credentials.
(c) The board and its agents and employees who enter private
property shall observe the establishment's rules concerning
safety, internal security, and fire protection.
Sec. 8801.117. ANNUAL GROUNDWATER WITHDRAWAL
DETERMINATION. (a) Not later than March 31 of each year, the board
shall hold a hearing to determine the effects of groundwater
withdrawal during the preceding calendar year on subsidence in the
district.
(b) At the hearing, the board shall consider information
provided under Sections 8801.115 and 8801.162 and information
presented by persons appearing before the board.
(c) After the hearing, the board shall:
(1) consider all information presented to it;
(2) determine groundwater withdrawal in the district
during the preceding calendar year; and
(3) make findings on the effects of groundwater
withdrawal during the preceding calendar year on subsidence in the
district.
(d) The board's findings and determinations under
Subsection (c) shall be included in a report adopted by the board.
The board shall make the report available for examination by any
interested person.
(e) The report adopted under Subsection (d) shall be
submitted to the appropriate regional water planning group along
with a copy of the most recently approved district plan adopted
under Section 8801.112.
Sec. 8801.118. MONITORING AND SUPERVISION BY DISTRICT. (a)
The district may use subsidence compaction monitors, water-level
observation wells, and other materials and equipment to determine
the amount of groundwater that may be withdrawn while allowing
groundwater to rebound and stabilize to a level that will halt
subsidence.
(b) The district may use global positioning systems and
other geodetic survey methods to monitor land surface elevations
and measure subsidence. The district may coordinate monitoring and
data-collection activities with other entities, including private
entities and federal, state, or local governmental entities.
Sec. 8801.119. REGULATION OF SPACING AND GROUNDWATER
WITHDRAWAL. (a) To minimize as far as practicable the drawdown of
the water table and the reduction of artesian pressure and to
control and prevent subsidence, the board may provide for the
spacing of wells in the district and may regulate groundwater
withdrawal from wells, taking into consideration the economic
impact on well owners, the resulting effect on subsidence, and
other relevant factors.
(b) Before issuing an order or rule under this section, the
board shall set a hearing on the proposed order or rule.
(c) The district may adopt different rules for:
(1) each aquifer, subdivision of an aquifer, or
geologic strata located in whole or in part within the boundaries of
the district; or
(2) each geographic area overlying an aquifer or
subdivision of an aquifer located in whole or in part within the
boundaries of the district.
Sec. 8801.120. WATER-METERING DEVICES. The board may
require water-metering devices to be placed on wells in the
district and may adopt standards for meter accuracy, testing, and
calibration.
Sec. 8801.121. POLICIES. The board shall adopt the
following in writing:
(1) a code of ethics for district directors, officers,
employees, and persons who are engaged in handling investments for
the district;
(2) a policy relating to travel expenditures;
(3) a policy relating to district investments;
(4) policies and procedures for selection,
monitoring, or review and evaluation of professional services;
(5) policies that ensure a better use of management
information, including:
(A) budgets for use in planning and controlling
cost;
(B) an audit or finance committee of the board;
and
(C) uniform reporting requirements that use
"Audits of State and Local Governmental Units" as a guide on audit
working papers and that uses "Governmental Accounting and Financial
Reporting Standards."
Sec. 8801.122. RECORDS. The board shall keep a complete
account of all its meetings and proceedings and shall preserve its
minutes, contracts, records, notices, accounts, receipts, and
other records in a safe place.
Sec. 8801.123. OPEN OR UNCOVERED WELLS. (a) The district
may require the owner or lessee of land on which an open or
uncovered well is located to keep the well permanently closed or
capped with a covering capable of sustaining weight of at least 400
pounds, except when the well is in actual use.
(b) If the owner or lessee fails or refuses to close or cap
the well, any person, firm, or corporation employed by the district
may go on the land and close or cap the well safely and securely.
SUBCHAPTER D. REGULATORY PROVISIONS
Sec. 8801.151. GROUNDWATER WITHDRAWALS SUBJECT TO BOARD
RULE. Groundwater withdrawals governed by this chapter are
subject to reasonable board rules and orders, taking into account
all factors, including availability of surface water, economic
impact on persons and the community, degree and effect of
subsidence on the surface of land, and differing topographical and
geophysical characteristics of land areas in the district.
Sec. 8801.152. CERTAIN WELLS EXEMPT. The regulatory
provisions of this chapter do not apply to:
(1) a well regulated under Chapter 27, Water Code;
(2) a well with a casing diameter of less than five
inches that solely serves a single-family dwelling; and
(3) any other well as provided by board rule.
Sec. 8801.153. RESTRICTION ON REQUIREMENTS FOR CERTAIN
MUNICIPALITIES. The board may require a municipality with a
population of less than 100,000 to reduce its groundwater
withdrawal by more than 50 percent in a three-year period only if
the board determines at a public hearing that the reduction:
(1) would not cause the municipality to have an
inadequate supply of water for its residents; and
(2) would not cause an increase of 50 percent or more
in water rates for the municipality or its residents.
Sec. 8801.154. WELL REGISTRATION. The board by rule may
require the registration of any well in the district.
Sec. 8801.155. PERMIT REQUIRED. (a) The owner or operator
of a well located in the district must obtain a permit from the
board before:
(1) drilling, equipping, or completing the well;
(2) substantially altering the size of the well or a
well pump; or
(3) operating the well.
(b) A well must remain permitted as long as the well is
operational.
(c) A violation occurs on the first day the drilling,
alteration, or operation begins, and each day of a continuing
violation constitutes a separate violation.
Sec. 8801.156. APPLICATION FOR PERMIT. (a) A person must
submit an application to the board to obtain a permit under this
chapter.
(b) The application must state:
(1) the name and address of the person requesting the
permit;
(2) the location and wellhead elevation of the well or
proposed well;
(3) the amount of water being withdrawn or proposed to
be withdrawn; and
(4) any other information necessary for the board to
control and prevent subsidence in the district.
(c) The board shall set a reasonable fee for processing an
application. The application must be accompanied by the fee.
Sec. 8801.157. NOTICE AND HEARING ON PERMIT. (a) On
receiving an application for a permit, the board shall issue notice
and set a time for a hearing on the application.
(b) The board must give written notice of the date, time,
and location of the hearing to the applicant [by certified mail,
return receipt requested]. Notice to the applicant may be given by
regular mail or by certified mail, return receipt requested.
(c) The board may consider as many applications for permits
as necessary at a hearing.
Sec. 8801.158. ISSUANCE OF PERMIT. (a) Within a
reasonable period after a permit hearing under Section 8801.157,
but not later than the 60th day after the date of the hearing, the
board shall:
(1) decide whether to issue the permit; and
(2) set the terms of the permit if it decides to issue
the permit.
(b) In deciding whether to issue a permit and in setting the
terms of the permit, the board shall consider:
(1) the purpose of this chapter;
(2) the district plan;
(3) the quality, quantity, and availability of surface
water at prices that are competitive with prices charged by
suppliers of surface water in the district;
(4) the economic impact on the applicant of a decision
to issue or deny the permit, or of the permit terms, in relation to
the effect on subsidence that would result;
(5) the applicant's use of water conservation
measures; [and]
(6) the applicant's compliance with the requirements
of this chapter or any rule, permit, or other order of the district;
and
(7) all other relevant factors.
(c) The board shall issue a permit to an applicant if, on
presentation of adequate proof, the board finds that:
(1) there is no other adequate and available
substitute or supplemental source of surface water at prices
competitive with the prices charged by suppliers of surface water
in the district; and
(2) compliance with any provision of this chapter or
any district rule will result in an arbitrary taking of property or
in the practical closing and elimination of a lawful business,
occupation, or activity without sufficient corresponding benefit
or advantage to the public.
(d) The permit must state the terms prescribed by the board.
The permit must include:
(1) the name and address of the person to whom the
permit is issued;
(2) the location of the well;
(3) the date the permit expires;
(4) conditions and restrictions placed on groundwater
withdrawal; and
(5) other terms necessary to control and prevent
subsidence.
(e) The board may condition issuance of a permit on the
resolution, including by payment of a civil penalty, of a prior or
continuing violation of this chapter or any rule, permit, or order
of the district.
Sec. 8801.159. TERM OF PERMIT. (a) A permit issued under
this chapter may be for a term not to exceed five years as set by the
board.
(b) A permit does not become a vested right of the permit
holder. The board may revoke or suspend a permit or amend its terms
after notice and hearing when reasonably necessary to accomplish
the purpose of this chapter.
Sec. 8801.160. RENEWAL OF PERMIT. The board may renew a
permit for a well in the manner provided for obtaining the original
permit.
Sec. 8801.161. PERMIT FEES. (a) When the board issues or
renews a permit, the board shall collect a permit fee from the
applicant. The fee shall be determined by a schedule based on the
term of the permit and the maximum annual amount of groundwater that
the board authorizes to be withdrawn from the well. In addition to
the regular permit fee described above, the board may also
establish a disincentive permit fee to serve as a regulatory tool by
creating a disincentive to continued over-reliance on groundwater.
(b) The board shall determine the amount of a regular or
disincentive permit fee after a hearing. The regular permit fee may
not exceed 110 percent of the highest rate that the City of Houston
charges for surface water supplied to its customers in the
district.
(c) The amount of a permit fee applicable to a well used for
irrigating agricultural crops shall not exceed [is the lowest of:
(1)] 70 percent of the lowest amount determined under
Subsection (b)[;
(2) 70 percent of a base amount of one cent for each
thousand gallons authorized to be withdrawn, except that the board
may adjust the base amount annually to account for increases since
1992 in the most recently published Consumer Price Index for All
Urban Consumers, All Items (Houston, Texas, Average), as compiled
by the Bureau of Labor Statistics, United States Department of
Labor; or
(3) the amount determined in accordance with
Subsection (d)].
(d) The district may set fees for administrative acts of the
district, such as receiving applications for permits or permit
amendments. [At a hearing, the board shall calculate and express as
a percentage the relative contribution to subsidence by wells used
for irrigating agricultural crops and wells used for other
purposes. The board shall use information prepared by the United
States Geological Survey, which is presumed to be correct. The
permit fee for wells used for irrigating agricultural crops must be
such that the percentage of total permit fee revenue that permit fee
revenue from those wells represents equals the percentage that
agricultural use contributes to subsidence.]
(e) The board shall use permit fees collected under this
section to pay the cost of issuing permits and performing other
regulatory functions, including, without limitation, making
grants, loans, or contractual payments to achieve, facilitate, or
expedite reductions in groundwater pumping or the development or
distribution of alternative water supplies.
Sec. 8801.162. ANNUAL REPORT. Before January 31 each year,
a well owner who holds a permit under this chapter shall submit to
the board a report stating:
(1) the well owner's name;
(2) the total amount of groundwater withdrawn from the
well during the preceding 12-month period;
(3) the total amount of groundwater withdrawn from the
well during each month of the preceding 12-month period;
(4) the purpose for which the groundwater was used;
and
(5) any other information the board considers
necessary.
Sec. 8801.163. CONVERSION TO SURFACE WATER. (a) In this
section, "alternative water supply" means a water supply that a
person needs to acquire from sources other than the person's own
groundwater supply to comply with a board order issued under this
section.
(b) The board may issue an order requiring a person to
completely or partially discontinue the use of groundwater only if
the person is able to:
(1) acquire [a] an alternative water supply [composed
of surface water] needed to replace the water supply covered by the
order; or
(2) participate in a groundwater reduction plan or
other agreement recognized by the board as achieving compliance
with the district's regulatory requirements.
(c) A notice of public hearing must inform a person when the
board will consider an order to convert to surface water.
(d) [In addition to the percentage of groundwater that a
board order authorizes a person to use, the person may use in the
current permit year a percentage of groundwater that is equal to the
percentage result of multiplying the annual average percentage of
groundwater, as determined under Section 8801.164(d), delivered to
the person during the preceding permit year by the total percentage
of alternative water supply required by the board's order for the
current year.
(e)] This section does not limit the board's authority to
issue an order or adopt a rule requiring a person to reduce
groundwater use by eliminating waste or implementing water
conservation.
[Sec. 8801.164. MONITORING OF ALTERNATIVE WATER SUPPLY.
(a) In this section, "alternative water supply" has the meaning
assigned by Section 8801.163.
(b) If a person who is issued an order under Section
8801.163 acquires an alternative water supply and files with the
commission a written request for monitoring the supply, the
commission shall monitor annually the water delivered to the person
from the date of the request to the expiration of the annual permit
to determine the percentage of the water that is surface water and
the percentage that is groundwater.
(c) If required under Subsection (b) to monitor water
deliveries, the commission shall monitor the deliveries at random
times at all points of connection between the purchaser's and
seller's water systems. Samples taken through monitoring must be
analyzed by water chemists employed by or contracting with the
commission. The water chemist making each analysis shall issue a
certified written analysis of the percentages of surface water and
groundwater included in the sample.
(d) Not later than the 15th day after the last day of each
permit year, the commission shall issue a certified written
analysis based on all samples collected that states the annual
average percentages of surface water and groundwater that the
seller provided to the purchaser for the permit year.
(e) The commission shall make results of an analysis under
this section available on request to the purchaser, seller, or
board.
(f) The commission shall assess reasonable fees to cover the
costs of water sampling and analysis under this section. The
commission shall assess one-half of the fees to the purchaser and
one-half to the seller.]
SUBCHAPTER E. APPEAL AND ENFORCEMENT PROVISIONS
Sec. 8801.201. APPEAL OF SURFACE WATER RATES. (a) A
person who is required to convert to surface water under this
chapter and who purchases that water supply wholesale from a
political subdivision as defined by Section 12.013(b), Water Code,
may appeal to the commission the rates the political subdivision
charges to the person. Chapter 12, Water Code, and rules adopted
under that chapter apply to an appeal under this section.
(b) The commission shall hear the appeal not later than the
180th day after the date the appeal is filed.
(c) The commission shall issue a final decision on the
appeal not later than the 60th day after the date the hearing ends.
Sec. 8801.202. APPEAL OF DISTRICT ACTIONS. (a) A person
who is adversely affected by rule, order, or other official action
of the district under this chapter, including a person residing in
or owning real property in the district whose residence or real
property is subsiding, may appeal the action in a district court in
any county in the district. The suit may only be filed after all
administrative appeals to the district are final. An appeal under
this section must be filed not later than the 45th day after the
date the final action is taken.
(b) On a written request from a person residing in or owning
real property in the district, the board shall make written
findings and conclusions regarding a rule, order, or other official
action of the district. The board shall provide certified copies of
those findings and conclusions to the person not later than the 35th
day after the date the board receives the request.
(c) An appeal under this section is governed by the
substantial evidence rule as provided by Subchapter G, Chapter
2001, Government Code. The burden of proof is on the petitioner,
and the challenged law, rule, order, or act shall be deemed prima
facie valid.
(d) A suit brought under this section shall be advanced for
trial and determined as expeditiously as possible. No postponement
or continuance shall be granted except for reasons considered
imperative by the court.
[Sec. 8801.203. ALTERNATIVE APPEAL OF CERTAIN DISTRICT
ACTIONS TO COMMISSION. (a) As an alternative to the appeal
procedure provided by Section 8801.202, a person who is granted a
permit authorizing groundwater withdrawal in an amount less than
the person requested may appeal the board's final decision to the
commission. The person must file the appeal not later than the 60th
day after the date the board issues its final order.
(b) On a written request from a person proposing to appeal
an order under this section, the board shall make written findings
and conclusions regarding the order. The board shall provide
certified copies of the findings and conclusions to the person not
later than the 35th day after the date the board receives the
request.
(c) The effect of a board order is stayed until the
commission's decision on an appeal under this section is final.
(d) An appeal to the commission under this section is
governed by the substantial evidence rule as provided by Subchapter
G, Chapter 2001, Government Code.
(e) The commission may:
(1) adopt rules necessary to implement this section;
and
(2) adopt and assess reasonable and necessary fees
adequate to recover the commission's costs in administering this
section.
(f) An appeal of a final commission decision is to a
district court in Travis County. The appeal shall be under the
substantial evidence rule. A party appealing a decision of the
district court is not required to provide an appeal bond.]
Sec. 8801.204. INJUNCTIVE RELIEF; CIVIL PENALTY. (a) If it
appears that a person has violated or is violating or threatening to
violate this chapter or a rule, permit, or other order of the
district issued or adopted under this chapter, the district may
institute an action in a district court in the district for:
(1) injunctive relief to restrain the person from
continuing the violation or threat of violation;
(2) the assessment and recovery of a civil penalty of
not less than $50 and not more than $5,000 for each violation and
for each day of a continuing violation; or
(3) both injunctive relief and civil penalties.
(b) On application for injunctive relief and a finding that
a person is violating or threatening to violate this chapter or a
rule, permit, or other order of the district issued or adopted under
this chapter, the district court shall grant injunctive relief as
the facts warrant.
(c) At the request of the board, or the general manager if
authorized by the board, the attorney general shall institute and
conduct an action in the name of the district for injunctive relief
or to recover a civil penalty, or both.
(d) The district is not required to post a bond or other
security with the court.
(e) In a suit to recover a civil penalty or for both
injunctive relief and a civil penalty, if the court finds that a
person has violated or is violating a provision of this chapter or a
rule, permit, or order of the district, the court shall assess a
civil penalty in the amount provided by this section.
SECTION 2. Chapter 1045, 1989 Tex. Gen. Laws 4251 (H.B. No.
2819), is amended to read as follows:
Section 1. PURPOSE AND INTENT. (a) The purpose of this Act
is to provide for the regulation of the withdrawal of groundwater
within the district created by this Act to prevent subsidence,
which [that] contributes to or precipitates flooding, inundation,
or overflow of areas within the district, including rising waters
resulting from storms or hurricanes.
(b) It is the intent of the legislature that the district
created by this Act shall administer and enforce the terms of this
Act and shall exercise its rights, powers, and duties in a manner
that will effectively and expeditiously accomplish the purposes of
this Act.
Section 2. DEFINITIONS. In this Act:
(1) "Person" includes a corporation, individual,
organization, government, governmental subdivision or agency,
business trust, estate, trust partnership, or association, and any
other legal entity.
(2) "District" means the Fort Bend Subsidence
District.
(3) "Board" means the board of directors of the Fort
Bend Subsidence District.
(4) "Groundwater" means water existing below the
earth's surface within the district, but does not include water
produced with oil in the production of oil and gas.
(5) "Well" means a facility, device, or method used to
withdraw groundwater.
(6) "Withdraw" means the act of extracting groundwater
by pumping or some other method.
(7) "Drill" means drilling, equipping, or completing
wells or substantially altering the size of wells or well pumps.
(8) "Subsidence" means the lowering in elevation of
the surface of land by the withdrawal of groundwater.
(9) "Commission" means the Texas [Water] Commission on
Environmental Quality.
(10) "Agricultural crop" means food or fiber
commodities grown for resale or commercial purposes, that provide
food, clothing, or animal feed, and also includes nursery products
and florist items while in the hands of a nursery grower.
(11) "Florist item" means a cut flower, potted plant,
blooming plant, inside foliage plant, bedding plant, corsage
flower, cut foliage, floral decoration, or live decorative
material.
(12) "Nursery grower" means a person who grows, in any
medium, more than 50 percent of the nursery products or florist
items that the person either sells or leases, regardless of the
variety sold, leased, or grown. For the purposes of this
definition, "grow" means the actual cultivation or propagation of
the nursery product or florist item beyond the mere holding or
maintaining of the item prior to sale or lease and typically
includes activities associated with the production or multiplying
of stock such as the development of new plants from cuttings,
grafts, plugs, or seedlings.
(13) "Nursery product" includes a tree, shrub, vine,
cutting, graft, scion, grass, bulb, or bud that is grown for, kept
for, or is capable of, propagation and distribution for sale or
lease.
(14) "Beneficial use" means use for:
(A) agricultural, gardening, domestic, stock
raising, municipal, mining, manufacturing, industrial, commercial,
recreational, or pleasure purposes;
(B) exploring for, producing, handling, or
treating oil, gas, sulphur, or other minerals; or
(C) any other purpose that is useful and
beneficial to the user.
(15) "Waste" means any one or more of the following:
(A) withdrawal of groundwater from a groundwater
reservoir at a rate and in an amount that causes or threatens to
cause intrusion into the reservoir of water unsuitable for
agricultural, gardening, domestic, or stock raising purposes;
(B) the flowing or producing of wells from a
groundwater reservoir if the water produced is not used for a
beneficial use or if the amount used is more than is reasonably
required for a beneficial use;
(C) escape of groundwater from a groundwater
reservoir to any other reservoir or geologic strata that does not
contain groundwater;
(D) pollution or harmful alteration of
groundwater in a groundwater reservoir by saltwater or by other
deleterious matter admitted from another stratum or from the
surface of the ground;
(E) wilfully or negligently causing, suffering,
or allowing groundwater to escape or flow into any river, creek,
natural watercourse, depression, lake, reservoir, drain, sewer,
street, highway, road, or road ditch, or onto any land other than
that of the owner of the well unless such discharge is authorized by
permit, rule, or order issued by the commission under Chapter 26;
(F) groundwater pumped for irrigation that
escapes as irrigation tailwater onto land other than that of the
owner of the well unless permission has been granted by the occupant
of the land receiving the discharge; or
(G) for water produced from an artesian well,
"waste" has the meaning assigned by Section 11.205.
Section 3. CREATION; FINDING OF BENEFIT AND PUBLIC PURPOSE.
(a) Under Article XVI, Section 59, of the Texas Constitution, a
conservation and reclamation district is created to be known as the
Fort Bend Subsidence District. The district is a governmental
agency, a political subdivision of the state, and a body politic and
corporate.
(b) The district is created to serve a public use and
benefit.
Section 4. BOUNDARIES. [(a)] The district includes all of
the territory within Fort Bend County.
[(b) An adjoining county may be added to the district on
application of the commissioners court of the adjoining county and
compliance with the applicable provisions of Sections
55.730-55.744, Water Code.
[(c) The proposition on the ballots for an election to add
an adjoining county to the district shall be printed to permit
voting for or against the proposition: "Addition of _____ County to
the Fort Bend Subsidence District."
[(d) A county added to the district under this section is
subject to the jurisdiction of the board and this Act.]
Section 5. BOARD OF DIRECTORS. (a) The district is
governed by a board of 13 directors.
(b) One director from each of the following cities in Fort
Bend County shall be appointed by the mayor of the respective city:
(1) Houston;
(2) Missouri City;
(3) Stafford;
(4) Sugar Land;
(5) Rosenberg; and
(6) Richmond.
(c) The Commissioners Court of Fort Bend County shall
appoint two directors who represent agricultural interests and live
in an unincorporated area, two directors who represent industrial
interests, and two directors who represent business interests.
(d) One director shall be appointed by the mayors of the
incorporated cities within the county not listed in Subsection (b)
of this section.
(e) [If an adjoining county is added to the district, four
members shall be added to the board. Two members shall be chosen by
the commissioners court of the county added to the district. One
member each shall be chosen by the mayors of the two cities in the
county added to the district that have the largest populations
according to the most recent federal decennial census. The four new
members shall draw lots to establish staggered terms of office.
(f)] All directors must be residents of and qualified voters
in the district.
[(g) The county judge of Fort Bend County shall set a date,
time, and place for a meeting of the persons designated in
Subsections (b), (c), and (d) of this section to choose the initial
directors. The county judge shall choose a date not later than the
30th day after the effective date of this Act. The county judge
shall mail notices of the meeting to the persons designated to
choose the directors. The county judge shall appoint a person to
preside at the meeting. The directors chosen at the meeting shall
assume their positions not later than the fifth day after the date
of the meeting.]
[(h)] (f) Selection of subsequent directors shall be made
[on the second Monday in] each January [at 11 a.m. in the district's
main office]. Not later than the 20th day before the date of the the
board's January meeting, the district shall mail notice [of the
meeting] to the persons designated in Subsections (b), (c), and
(d)[, and (e)] of this section to choose directors.
[(i)] (g) The terms of office for the initial directors
shall be as follows:
(1) five members chosen under Subsection (b) of this
section and four members chosen under Subsection (c) of this
section shall serve for terms expiring January 31, 1991; and
(2) one member chosen under Subsection (b) of this
section, two members chosen under Subsection (c) of this section,
and the member chosen under Subsection (d) of this section shall
serve for terms expiring January 31, 1990.
[(j)] (h) Except as provided by Subsection [(i)] (g) of this
section, members of the board shall serve for terms of two years.
[(k) At the time the county judge of Fort Bend County sets
the meeting required by Subsection (g) of this section, the county
judge shall set the date, time, and place for the initial meeting of
the board. No later than the 20th day before the date of the initial
meeting of the board, the county judge shall mail notices of the
meeting to the initial directors.]
[(l)] (i) [At the initial meeting of the board and each]
Each year at the first meeting after new directors take office, the
directors shall select a chairman, a vice-chairman, and a
secretary. The chairman, vice-chairman, and secretary shall serve
at the pleasure of the board and may be removed and replaced by a
majority of the board at any time.
[(m)] (j) The chairman shall preside over meetings of the
board. If the chairman is not present, the vice-chairman shall
preside.
[(n)] (k) Each director is entitled to receive fees of
office of not more than $150 [$50] a day for each day he is engaged
in the exercise of his duties as a director. [under this Act] The
fees of office may not exceed $9,000 a year. Each director is also
entitled to receive reimbursement of actual expenses reasonably and
necessarily [and necessary travel and other expenses] incurred in
the exercise of his duties under this Act. [A member of the board
may not receive compensation and travel and other expenses for more
than 120 day in any one calendar year.] In order to receive fees of
office and to receive reimbursement for expenses, each director
shall file with the district a verified statement showing the
number of days actually spent in the service of the district and a
general description of the duties performed for each day of
service.
[(o)] (l) If a vacancy occurs on the board, the person or
persons designated in Subsection (b), (c), or (d)[, or (e)] of this
section to appoint a director for the position that is vacated shall
appoint a director to serve the unexpired term.
[(p)] (m) Each director shall make the sworn statement and
take the oath of office prescribed by the constitution for public
officers [law for county commissioners] and shall execute a bond in
the amount of $5,000, payable to the district, conditioned on the
faithful performance of his duties. The district shall pay for the
bond.
[(q)] (n) A majority of the directors constitute a quorum
for transaction of business of the district. An official act of the
board is not valid without the affirmative vote of a majority of the
directors.
[(r)] (o) The board shall hold one regular meeting each
month at a time set by the board. The board may hold special
meetings at the call of the chairman or on the written request of at
least three directors. A meeting of a committee of the board where
less than a quorum is present is not subject to the provisions of
the Open Meetings Act, Chapter 551, Government Code. Notice of
meetings of the board shall be given as set forth in the Open
Meetings Act, Chapter 551, Government Code. Neither failure to
provide notice of a regular meeting nor an insubstantial defect in
notice of any meeting shall affect the validity of any action taken
at the meeting.
Section 6. POWERS AND DUTIES IN GENERAL; OTHER LAWS NOT
APPLICABLE. (a) The board shall administer this Act as provided by
Section 1 of this Act.
(b) Withdrawals of groundwater covered by this Act are
subject to reasonable rules, regulations, and orders adopted by the
board.
(c) In adopting rules, regulations, and orders, the board
shall consider the following factors:
(1) availability of surface water;
(2) economic impact on persons and the community;
(3) degree and effect of subsidence on the surface of
the land; and
(4) differing topographical and geophysical
characteristics of the land.
(d) In addition to the powers and duties described by this
Act, the [The] board has all other powers necessary or convenient to
carry out its responsibilities and achieve the purpose of this Act,
whether such powers are specifically authorized by this Act or
implied by this Act or other law.
(e) Other laws governing the administration or operation of
districts created under Section 52, Article III, or Section 59,
Article XVI, Texas Constitution, including Chapters 36 and 49,
Water Code, shall not apply to the district. Notwithstanding
Section 36.052, Water Code, this Act prevails over any other law in
conflict or inconsistent with this Act.
(f) The board may adopt bylaws and policies to govern the
affairs of the district to perform its purposes. The board shall
also have the right to purchase all materials, supplies, equipment,
vehicles, and machinery needed by the district to perform its
purposes.
(g) The board shall adopt the following in writing:
(1) a code of ethics for district directors, officers,
employees, and persons who are engaged in handling investments for
the district;
(2) a policy relating to travel expenditures;
(3) a policy relating to district investments;
(4) policies and procedures for selection,
monitoring, or review and evaluation of professional services;
(5) policies that ensure a better use of management
information, including:
(A) budgets for use in planning and controlling
cost;
(B) an audit or finance committee of the board;
and
(C) uniform reporting requirements that use
"Audits of State and Local Governmental Units" as a guide on audit
working papers and that uses "Governmental Accounting and Financial
Reporting Standards."
Section 7. GENERAL MANAGER. (a) The board may employ a
general manager who shall be the chief administrative officer of
the district. The board may delegate to the general manager the
authority to manage and operate the affairs of the district subject
only to orders of the board.
(b) The duties of the general manager include:
(1) administration of the orders of the board;
(2) coordination with state, federal, and local
agencies;
(3) supervision of the development of plans and
programs of the district;
(4) preparation and submission of the annual budget to
the board; and
(5) other duties assigned by the board.
(c) The general manager shall execute a bond in an amount
determined by the board payable to the district, conditioned on the
faithful performance of his duties. The district shall pay for the
bond.
(d) The district may contract with any person to perform the
duties of general manager.
(e) The board shall determine the compensation and terms of
office and employment for the general manager. The board may
discharge the general manager by a majority vote.
Section 8. EMPLOYEES; BENEFITS. (a) The [board] general
manager shall employ personnel necessary for the proper handling of
the business and operation of the district and may employ
attorneys, bookkeepers, engineers, and other expert and
specialized personnel that are considered necessary. The [board]
general manager shall determine the compensation to be paid by the
district to the employees.
(b) [The board shall determine the term of office of and the
compensation to be paid to the general manager. The board may
discharge the general manager by a majority vote.] The [board]
general manager may discharge employees of the district.
(c) The board shall require an employee who collects, pays,
or handles funds of the district to furnish good and sufficient
bond, payable to the district, for a sufficient amount to safeguard
the district. The bond shall be conditioned on the faithful
performance of the employee's duties and on accounting for all
funds and property of the district under the employee's control.
The district shall pay for the bond.
(d) The board may provide for and administer retirement,
disability, and death compensation funds for the employees of the
district. The board may establish a public retirement system in
accordance with the provisions of Chapter 810, Government Code.
The board may also provide for a deferred compensation plan
described by Section 457 of the Internal Revenue Code of 1986 (26
U.S.C. Section 457). The board may include hospitalization and
medical benefits to its employees as part of the compensation paid
to employees and may adopt any plan, rule, or regulation in
connection with it and amend or change the plan, rule, or regulation
as it may determine. The board may establish a sick leave pool for
employees of the district in the same manner as that authorized for
the creation of a sick leave pool for state employees by Subchapter
A, Chapter 661, Government Code.
Section 9. DISTRICT OFFICE. The board shall maintain its
principal office for conducting the business of the district. The
office must be located inside the district.
Section 10. MINUTES AND RECORDS OF DISTRICT. The district
shall keep a true and complete account of the board's meetings and
proceedings and shall preserve the board's minutes, contracts,
records, notices, accounts, and receipts in a [fireproof vault or]
safe place. The board's minutes, contracts, records, notices,
accounts, and receipts are the property of the district and are
subject to public inspection.
Section 11. SUITS. (a) The district may sue and be sued in
the courts of this state in the name of the district by and through
the board. If requested by the district, the attorney general shall
represent the district in the district and appellate courts of this
state and in the courts of the United States. The board, in its sole
discretion, may employ attorneys to represent the district in the
district and appellate courts of this state and in the courts of the
United States. All courts shall take judicial notice of the
creation of the district and of its boundaries.
(b) The general manager shall be the agent of the district
on whom process, notice, or demand required or permitted by law to
be served upon the district may be served.
(c) The district shall not be required to give bond for
appeal, injunction, or costs in any suit to which it is a party.
(d) If the district prevails in any suit other than a suit in
which it voluntarily intervenes, the district may seek and the
court shall grant, in the same action, recover for attorney's fees,
costs for expert witnesses, and other costs incurred by the
district before the court. The amount of the attorney's fees shall
be fixed by the court.
Section 12. SEAL. The board shall adopt a seal.
Section 13. RULES AND REGULATION. (a) After notice and
hearing [under Section 14 of this Act], the board shall adopt and
enforce rules and regulations that are designed to expeditiously
and effectively accomplish the provisions and purposes of this Act,
including rules governing procedure before the board. The board
may adopt rules intended to prevent the waste of groundwater or the
degradation of water quality.
(b) The board shall compile its rules and regulations in a
book and make the book available for use and inspection at the
district's principal office. The district shall provide copies of
its rules and regulations on payment of the cost of reproduction.
Section 14. HEARINGS. (a) At regular meetings of the
board, the board shall set the dates, times, and locations for
hearings to be held under this Act.
(b) For hearings other than hearings on permit
applications, not [Not] later than the 10th [20th] day before the
date set for a hearing, the district shall deliver or mail notice of
the hearing under this section to each county and municipal
government within the district and to each person that the board
believes has an interest in the subject matter to be dealt with at
the hearing.
(c) Not later than the 10th [20th] day before the date set
for a hearing, the district shall publish notice of the hearing
under this section once in a newspaper of general circulation in
each county within the district.
(d) Not later than the 10th [20th] day before the date set
for a hearing, the district shall post the notice of the hearing
under this section at the county courthouse of each county within
the district in the place where notices are usually posted.
(e) Any person who desires to appear at a hearing and
present testimony, evidence, exhibits, or other information may do
so in person, by counsel, or both.
(f) The board may hold hearings at any location within the
district.
(g) The board may recess a hearing from day to day.
(h) The board may use hearing examiners to hear any subject
set for the hearing, but the board must make the final decision on
the subject. Procedures for use of hearing examiners shall be
provided by rule [in the rules and regulations].
Section 15. COMPELLING TESTIMONY, SWEARING WITNESSES, AND
SUBPOENAS. The board may subpoena a person to testify if the
person's testimony is necessary to carry out the powers, duties and
functions of the board under this Act. The board may administer
oaths to persons who testify before the board. The board may
subpoena documents if the documents are necessary to carry out the
powers, duties, and functions of the board under this Act. On
application of the board, a district court shall enforce the
subpoena in the same manner as a subpoena issued by the court.
Section 16. DISTRICT PLAN. (a) [Under Section 14 of this
Act, the] The board shall formulate a plan to control and mitigate
subsidence within the district. The plan shall accomplish this
purpose by the regulation of groundwater withdrawals to maintain
sufficient artesian pressure to control and mitigate subsidence.
(b) The plan shall specify, in as much detail as
practicable, the acts, procedures, performance, and avoidance that
are necessary to carry out the purposes of this Act.
(c) When formulating the plan, the board shall compile and
consider:
(1) a list of wells in the district that will be
subject to regulation under this Act;
(2) an accurate estimate of groundwater production
from all wells [each well] or proposed wells [well] in the district;
(3) an accurate estimate of the amount of groundwater
that may be produced from each [well and each] area in the district
without causing long-term static water level decline and reduction
of artesian pressure that will lead to subsidence within the
district;
(4) an accurate estimate of the current and future
water needs [of each well owner] in the district;
(5) [an accurate estimate of the groundwater
production capacity of each well in the district;
(6)] a list of all available sources of water in the
district other than groundwater;
[(7)] (6) the purpose for which the water is currently
used and for which it is proposed to be used in the future;
[(8)] (7) information relating to formulation of a
permit system; and
[(9)] (8) other information necessary to carry out the
management of groundwater in the district and to effectively and
expeditiously accomplish the purposes of this Act.
(d) The initial plan shall be formulated not later than 12
months after the initial effective date of this Act.
(e) Not later than the 60th day after the date the initial
plan is formulated, the board shall review and adopt the plan.
(f) Before a [the] plan is adopted, the board shall hold a
hearing under Section 14 of this Act to consider the proposed plan.
(g) After the hearing, the board shall make any changes it
considers necessary based on evidence and material presented at the
hearing and shall adopt the plan.
(h) The plan adopted under this section may be amended or
repealed. A new plan may be adopted in the manner provided in this
section for the adoption of the original plan. A plan, once
adopted, shall remain in effect until the adoption of a new plan.
Section 17. WELL REGISTRATION. The board by rule may
require the registration of any well in the district. [TEMPORARY
REGULATION. During the period that the board is formulating and
adopting the plan under Section 16 of this Act, the board shall
adopt temporary rules and regulations relating to the withdrawal of
groundwater that are necessary to control subsidence.]
Section 18. PERMIT REQUIREMENT. (a) The owner of a well
located in the district must obtain a permit from the board [to
withdraw groundwater] before:
(1) drilling, equipping, or completing the well;
(2) substantially altering the size of the well or a
well pump; or
(3) operating the well.
(b) A well must remain permitted as long as the well is
operational. A violation occurs on the first day the drilling,
alteration, or operation begins, and each day of a continuing
violation constitutes a separate violation [Owners of wells
operating or being drilled on the effective date of this Act must
apply for a permit before January 1, 1990, and may continue to
operate the well without a permit until the application for a permit
for the well is acted on by the board].
(c) A permit issued under this Act is valid for a term of one
year from the date it is issued unless a longer or shorter term is
specified by the board. The board may issue a permit for a term not
to exceed five years in order to aid the district in the effective
and expeditious performance of its duties if issuance of the permit
does not impair the ability of the district to control and prevent
subsidence within the district.
(d) A permit does not become a vested right of the permit
holder. A permit may be revoked, suspended, modified, or amended
after notice and [public] hearing [under Section 14 of this Act]
whenever reasonably necessary to accomplish the purposes of this
Act.
(e) Permits may be renewed in the same manner as permits are
issued.
(f) To obtain a permit, a person must submit an application
and an application fee to the board. The application must state:
(1) the person's name;
(2) the person's address;
(3) the location and wellhead elevation of the well or
proposed well;
(4) the amount of water being produced or proposed to
be produced; and
(5) any other information required by the board as
necessary for the board to control and prevent subsidence in the
district.
(g) The board shall use the application fee to process
applications.
Section 19. NOTICE AND HEARING ON PERMIT. (a) The board
shall hold a hearing on each application.
(b) Not later than the 10th [20th] day before the date set
for the hearing, the board shall notify the applicant [by certified
mail, return receipt requested,] of the date, time, and location of
the hearing. Notice to the applicant may be given by regular mail
or by certified mail, return receipt requested.
(c) [Except as provided by this section, the hearing shall
be conducted and notice of hearing given under Section 14 of this
Act.
[(d)] The board may consider as many applications for
permits as it considers necessary at a hearing.
Section 20. ISSUANCE OF PERMIT. (a) Not later than the
60th [35th] day after the date of the hearing, the board shall
decide whether or not to issue a permit and shall formulate the
terms of the permit, if issued.
(b) In deciding whether or not to issue a permit and in
setting the terms of the permit, the board shall consider:
(1) the purpose of this Act;
(2) the district plan;
(3) the quality, quantity, and availability of surface
water at prices competitive with those charged by suppliers of
surface water within the district; [and]
(4) the economic impact on the applicant of granting
or denying the permit or of the terms prescribed by a permit in
relation to the effect on subsidence that would result;
(5) the applicant's compliance with the requirements
of this chapter or any rule, permit, or other order of the district;
and
(6) any other relevant factors.
(c) The board shall grant a permit to an applicant whenever
the board finds on sufficient evidence that:
(1) there is no other adequate and available
substitute or supplemental source of surface water at prices
competitive with those charges by suppliers of surface water within
the district; and
(2) compliance with any provision of this Act[,] or
any rule or regulation of the district will result in an arbitrary
taking of property or in the practical closing and elimination of
any lawful business, occupation, or activity, without sufficient
corresponding benefit or advantage to the public [people].
(d) If the board decides to issue the permit, the permit
must state the terms prescribed by the board.
(e) The permit must include the following:
(1) the name and address of the permittee;
(2) the location of the well;
(3) the date the permit begins and the date the permit
expires;
(4) conditions and restrictions placed on the
withdrawal of groundwater; and
(5) [adoption of water conservation measures for the
purpose of preventing waste of groundwater, including educational
programs; and
[(6)] any other terms and conditions necessary to
control and prevent subsidence.
(f) The board may condition the issuance of a permit on the
resolution, including by payment of a civil penalty, or a prior or
continuing violation of this Act or any rule, permit, or order of
the district.
Section 21. PERMIT NOT TRANSFERABLE. A permit issued under
this Act is not transferable unless the permittee and new owner
notify the district by certified mail, return receipt requested, of
the transfer of ownership of the well and provide the name and
address of the new owner. On receipt of that information, the
district shall issue an amended permit with the new owner of the
well as permittee. The remaining terms of the permit shall remain
unchanged.
Section 22. ANNUAL REPORTS. Before January 31 of each year,
each owner of a well who holds a permit under this Act shall submit a
report to the board stating the following:
(1) the person's name;
(2) the location of the well;
(3) the total amount of groundwater produced by the
well during the immediately preceding 12-month period;
(4) the total amount of groundwater produced by the
well during each separate month of the immediately preceding
12-month period;
(5) the purpose for which the groundwater was used;
and
(6) [the date the permit expires; and
[(7)] any other information required by the board as
necessary for the board to control and prevent subsidence within
the district.
Section 23. BOARD INVESTIGATION. At least once each year
and at any other time that the board considers necessary, the board
may have its staff make a complete study of the groundwater
situation within the district and determine the water level, rates
of withdrawal, amounts of withdrawal, and other information
relating to withdrawal of groundwater that may affect the
subsidence of land within the district.
Section 24. ANNUAL GROUNDWATER WITHDRAWAL DETERMINATION.
(a) Before March 31 of each year, the board shall hold a hearing
[under Section 14 of this Act] to determine the effects during the
preceding calender year of groundwater withdrawal on the subsidence
of land within the district.
(b) At the hearing, the board shall consider the annual
reports submitted under Section 22 of this Act and the
investigation made under Section 23 of this Act in addition to
information presented [represented] by persons appearing before
the board.
(c) After the hearing, the board shall consider all the
information presented to it and shall determine the groundwater
withdrawal in the district during the preceding calender year and
shall make findings of the effects of groundwater withdrawal during
that year on the subsidence of land within the district. A report
of the board's findings and determinations shall be made available
for examination by any interested person.
(d) The report adopted under Subsection (c) shall be
submitted to the appropriate regional water planning group along
with a copy of the most recently approved district plan adopted
under Section 16.
Section 25. REGULATION OF SPACING AND PRODUCTION. (a) In
order to minimize as far as practicable the drawdown of the water
table and reduction of artesian pressure and to control and prevent
subsidence, the board may provide for the spacing of wells and
regulate the production of groundwater from [the] wells, taking
into consideration any relevant factors, including the economic
impact on well owners and the resulting effect on subsidence.
(b) Before issuing any rule, regulation, or order under this
section, the board shall set a hearing on the proposed rule,
regulation, or order [and issue notice of the hearing. Notice must
be given and hearings conducted in the manner provided in Section 14
of this Act].
(c) The district may adopt different rules for:
(1) each aquifer, subdivision of an aquifer, or
geologic strata located in whole or in part within the boundaries of
the district; or
(2) each geographic area overlying an aquifer or
subdivision of an aquifer located in whole or in part within the
boundaries of the district.
(d) The board may issue an order requiring a person to
completely or partially discontinue the use of groundwater by:
(1) acquiring an alternative water supply needed to
replace the water supply covered by the order; or
(2) participating in a groundwater reduction plan or
other agreement recognized by the board as achieving compliance
with the district's regulatory requirements.
(e) The board may issue an order or adopt a rule requiring a
person to reduce groundwater use by eliminating waste or
implementing water conservation.
Section 26. REQUIRING WATER-METERING DEVICES. The board
may [adopt orders after notice and hearing under Section 14 of this
Act requiring] require water-metering devices to be placed on wells
in the district and may adopt standards for meter accuracy,
testing, and calibration.
Section 27. ACCESS TO PROPERTY. (a) To carry out technical
and other investigations necessary to the implementation of this
Act, the board and its agents and employees are entitled to access
to all property within the district.
(b) Before entering property for the purpose stated in
Subsection (a) of this section, the person seeking access shall
give notice to the owner of the property in the manner provided by
the rules and regulations of the district and shall present proper
credentials.
(c) The board, and its agents and employees who enter
private property, shall observe the establishment's rules and
regulations concerning safety, internal security, and fire
protection.
Section 28. MONITORING AND SUPERVISIONS OF DISTRICT. (a)
The district may use subsidence compaction monitors, water level
observation wells, and other materials and equipment to determine
the amount of groundwater that may be produced while allowing the
rebound and stabilization of groundwater to a level that will halt
subsidence.
(b) The district may use global positioning systems and
other geodetic survey methods to monitor land surface elevations
and measure subsidence. The district may coordinate monitoring and
data-collection activities with other entities, including private
entities and federal, state, or local governmental entities.
Section 29. RESEARCH AND STUDIES. (a) The board may
conduct studies and research that it considers necessary to
implement this Act. The board may use the services of geologists,
hydrologists, registered professional engineers, or other expert
personnel to accomplish the purposes of this section.
(b) The district may collect any information the board deems
necessary, including information regarding the use of groundwater,
water conservation, and the practicability of recharging a
groundwater reservoir.
Section 30. COOPERATION WITH AND ASSISTANCE OF OTHER
GOVERNMENTAL ENTITIES. The board may cooperate with and request
the assistance of the Texas Water Development Board, the
commission, the United States Geological Survey, local
governments, and other agencies of the United States and the State
of Texas in implementing this Act.
Section 31. CONTRACTS. The board may enter into contracts
with any person to carry out this Act. The district shall contract,
and be contracted with, in the name of the district.
Section 32. APPEAL OF DISTRICT ACTIONS TO A DISTRICT COURT.
(a) A person who is adversely affected by a rule,
regulation, order, or other official action of the board may appeal
to a district court in any county in the district.
(b) For the purposes of this section, "a person who is
adversely affected" includes a person residing in or owning real
property in the district whose residence or real property is
subsiding. The appeal may only be filed after all administrative
appeals to the district are final. An appeal under this section
must be filed not later than the 45th day after the date the rule,
regulation, order, or other official action appealed from is
promulgated.
(c) On written request of a person who is adversely
affected, the board shall make written findings and conclusions
with respect to a rule, regulation, order or other official action
of the district. Not later than the 35th day after the request was
made, the board shall provide a certified copy of the findings and
conclusions to the person who made the request.
(d) In appeals taken under this section, the substantial
evidence rule, as provided by Subchapter G, Chapter 2001,
Government Code, shall be used to determine the legal propriety of a
rule, regulation, order, or other action of the board. The burden
of proof is on the petitioner, and the challenged law, rule, order,
or act shall be deemed prima facie valid.
(e) A suit brought under this section shall be advanced for
trial and determined as expeditiously as possible. No postponement
or continuance shall be granted except for reasons considered
imperative by the court.
[Section 33. APPEAL OF CERTAIN DISTRICT ACTIONS TO THE
COMMISSION. (a) As an alternative to the appeal provided by
Section 32 of this Act, a person who is granted a permit authorizing
withdrawal of groundwater in an amount less than requested by that
person may appeal the board's final decision to the commission. The
appeal shall be filed not later than the 60th day after the date of
the final order of the board.
(b) On written request of the person proposing to appeal an
order under Subsection (a) of this section, the board shall make
written findings and conclusions with respect to the order and
shall provide certified copies of the findings and conclusions to
the person making the request not later than the 35th day after the
date on which the written request is submitted to the board.
(c) The effect of a board order is stayed until the decision
of the commission in an appeal under this section is final.
(d) The review on appeal to the commission under this
section is governed by the substantial evidence rule as provided by
Section 19(e), Administrative Procedure and Texas Register Act
(Article 6252-13a, Vernon's Texas Civil Statutes).
(e) The commission may adopt necessary rules to carry out
the provisions of this section.
(f) An appeal from a final decision of the commission is to a
district court in Travis County and is governed by the substantial
evidence rule. Any party to the proceedings before the commission
may appeal a decision of the district court in the manner provided
for other civil actions but a party appealing a decision of a
district court is not required to provide an appeal bond.
(g) Under this section, the commission may adopt and assess
reasonable and necessary fees adequate to recover the costs of the
commission in administering this section.]
Section 34. PERMIT FEE. (a) At the time a permit is issued
or renewed, the board shall collect from the permittee a permit fee,
established by schedule, based on the term of the permit and the
maximum amount of groundwater authorized by the board to be
withdrawn annually from the well. The board may also establish a
disincentive permit fee to serve as a regulatory tool by creating a
disincentive to continued over-reliance on groundwater.
(b) The fee schedule shall be determined by the board after
a hearing [under Section 14 of this Act].
(c) The board shall use the funds obtained from permit fees
to cover the costs of issuing permits and performing other
regulatory functions under this Act, including, without
limitation, making grants, loans, or contractual payments to
achieve, facilitate, or expedite reductions in groundwater pumping
or the development or distribution of alternative water supplies.
Section 35. GRANTS, PURCHASES, GIFTS, LEASES, ETC. (a) On
behalf of the district, the board may:
(1) purchase, lease, own, convey, and dispose of
property both inside and outside the district necessary or
convenient to the exercise of the powers, duties, and functions of
the board under this Act;
(2) accept grants, gifts, and devises of property;
(3) construct, purchase, lease, or acquire in some
other manner any material or property necessary to carry out this
Act; and
(4) accept gifts, grants, loans, or other
distributions of money.
(b) The district may make or accept a grant, gratuity,
advance, or loan in any form to or from any public source approved
by the board, including a governmental entity, and may enter into a
contract, agreement, or covenant that the board considers
appropriate in connection with a grant, gratuity, advance, or loan.
Section 36. WATER CONSERVATION MEASURES. (a) The board may
adopt rules requiring the use of water conservation measures to
reduce groundwater withdrawals.
(b) The district may cooperate with the commission and any
local government to establish water conservation goals,
guidelines, and plans to be used in the district.
(c) The district may contract with a local government in the
district to provide services needed to meet water conservation
requirements that the commission establishes. [OWNERSHIP OF
GROUNDWATER. The ownership and rights of the owner of land and his
lessees and assigns in groundwater are recognized and nothing in
this Act shall be construed as depriving or divesting the owner or
his lessees and assigns of the ownership or rights, subject to rules
and regulations and orders and other official actions of the
district.]
Section 37. OPEN OR UNCOVERED WELLS. (a) The district may
require the owner or lessee of land on which an open or uncovered
well is located to keep the well permanently closed or capped with a
covering capable of sustaining weight of at least 400 pounds,
except when the well is in actual use.
(b) If the owner or lessee fails or refuses to close or cap
the well, any person, firm, or corporation employed by the district
may go on the land and close or cap the well safely and securely.
[SURFACE WATER LAWS NOT APPLICABLE. The laws and administrative
rules relating to the use of surface water do not apply to
groundwater.]
Section 38. SALE AND DISTRIBUTION OF WATER PROHIBITED. The
district may not sell or distribute surface water or groundwater
for any purpose.
Section 39. EXCLUSIONS. This Act does not apply to:
(1) wells regulated under Chapter 27, Water Code;
(2) shallow wells producing water solely to prevent
hazardous sand boils, dewater surface construction sites, or
relieve hydrostatic uplift on permanent structures and not used to
provide water for human consumption, agricultural use,
manufacturing or industrial use, or water injection;
(3) shallow wells producing water solely for
groundwater quality analysis and for monitoring migration of
subsurface contaminants or pollution and not used to provide water
for human consumption, agricultural use, manufacturing or
industrial uses, or water injection;
(4) shallow wells producing water solely for recovery
of contamination or pollution and not used to provide water for
human consumption, agricultural use, manufacturing or industrial
use, or water injection;
(5) [persons owning only one well within the district
if the well has a casing with an inside diameter of five inches or
less; and
(6) on application for an exemption on a form
prescribed by the board, other] wells with a casing that has an
inside diameter of five inches or less that solely serve a
single-family dwelling [and have a negligible effect on subsidence
within the district].
Section 40. DISBURSEMENT OF FUNDS. (a) The district's
money may be disbursed by check, draft, order, or other
instruments, signed by the person or persons authorized to do so by
the board's bylaws or by resolution of the board. The district's
money may also be disbursed by electronic fund transfer.
Section 41. ACCOUNTS AND INDEPENDENT AUDIT; BUDGET. (a)
The district shall keep a complete system of accounts and shall have
its affairs audited each year by an independent certified public
accountant or a firm of independent certified public accountants of
recognized integrity and ability. The district shall pay for the
audit.
(b) [The board shall deliver a copy of the audit to the
commissioners court of each county in the district.] The board
shall keep one copy of the audit at the district office, open to
inspection by any interested person during normal office hours.
(c) The district shall be operated on the basis of a fiscal
year equal to a calendar year.
(d) The board shall adopt an annual budget containing a
complete financial statement. The annual budget may be amended on
the board's approval.
Section 42. DEPOSITORY BANKS; INVESTMENTS. (a) The board
shall designate one or more banks within the district to serve as
depository for the funds of the district. [Except as provided by
Subsection (b) of this section, all] All funds of the district shall
be deposited in a depository bank. This subsection does not limit
the power of the board to place a portion of the district's funds on
time deposit or to purchase certificates of deposit or other
authorized investments.
(b) [To the extent provided in a trust indenture, bond
proceeds and funds pledged to pay bonds may be deposited with the
trustee bank named in the trust indenture and shall be remitted to
the bank of payment for the payment of the principal of and interest
on the bonds.
(c)] To the extent that funds in a depository bank or a
trustee bank are not invested or insured by the Federal Deposit
Insurance Corporation, they shall be secured in the manner provided
by law for the security of [county] funds by the Public Funds
Investment Act, Chapter 2257, Government Code.
[(d)] (c) Before designating a depository bank, the board
shall issue a notice stating the time and place the board will meet
for that purpose and shall invite [the] banks in the district to
submit applications to be designated depositories. The term of
service for depositories shall be prescribed by the board. [The
board shall publish the notice once in a newspaper of general
circulation in the district or mail a copy of the notice to each
bank in the district.]
[(e)] (d) The board shall consider the management and
condition of the banks that apply and shall designate as
depositories the bank or banks that offer the most favorable terms
and conditions for handling of the funds of the district and that
the board finds have proper management and are in condition to
warrant handling of district funds.
[(f)] (e) Membership on the board of an officer or director
of a bank does not disqualify the bank from being designated as
depository.
[(g)] (f) If no applications are received before the
meeting, the board shall designate a bank or banks within or outside
the district on terms and conditions it finds advantageous to the
district.
(g) Funds of the district may be invested and reinvested in
accordance with the provisions of the Public Funds Investment Act,
Chapter 2256, Government Code. The board, by resolution, may
provide that an authorized representative of the district may
invest and reinvest the funds of the district and provide for money
to be withdrawn from the appropriate accounts of the district for
investments on such terms as the board considers advisable.
Section 43. PENALTIES. (a) If a person has violated, is
violating, or is threatening to violate a provision of this Act or a
rule, regulation, permit, or other order of the district, the
district may bring a civil action in a district court within the
district for an injunction to restrain the person from continuing
the violation or threat of violation, for a civil penalty of not
less than $50 nor more than $5,000 for each violation and for each
day of violation, or for both injunctive relief and civil penalty.
(b) At the request of the board [district], or the general
manager if authorized by the board, the attorney general shall
institute the action. However, the district in its sole discretion
may employ attorneys of its choice to institute the action.
(c) The district [board] is not required to post bond or
other security with the court [under this section].
(d) On application for injunctive relief and a finding that
a person is violating or threatening to violate any provision of
this Act or any rule, permit, or other order of the district, the
district court shall grant any injunctive relief the facts may
warrant.
(e) In a suit to recover a civil penalty or for both
injunctive relief and a civil penalty, if the court finds that a
person has violated or is violating a provision of this chapter or a
rule, permit, or order of the district, the court shall assess a
civil penalty in the amount provided by this section.
Section 44. LEGISLATIVE FINDING OF AUTHORITY. The
legislature finds that the requirements of Article XVI, Sections
59(d) and (e), of the Texas Constitution have been performed and
accomplished and that the legislature has the power and authority
to enact this Act.
Section 45. EMERGENCY. The importance of this legislation
and crowded condition of the calenders in both houses create an
emergency and an imperative public necessity that the
constitutional rule requiring bills to be read on three several
days in each house be suspended, and this rule is hereby suspended,
and that this Act take effect and be in force from and after its
passage, and it is so enacted.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.