79R2202 SGA-F

By:  Madla                                                        S.B. No. 1896


A BILL TO BE ENTITLED
AN ACT
relating to the creation, administration, powers, duties, operation, and financing of the Val Verde County Groundwater Conservation District. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. DEFINITIONS. In this Act: (1) "Board" means the board of directors of the district. (2) "District" means the Val Verde County Groundwater Conservation District. SECTION 2. CREATION. A groundwater conservation district, to be known as the Val Verde County Groundwater Conservation District, is created in Val Verde County, subject to approval at a confirmation election under Section 7 of this Act. SECTION 3. FINDINGS OF BENEFIT. (a) The district is created to serve a public use and benefit. (b) The district is created under and is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (c) All of the land and other property included within the boundaries of the district will be benefited by the works and projects that are to be accomplished by the district under powers conferred by Section 59, Article XVI, Texas Constitution. SECTION 4. CONTINUING PROVISIONS OF DISTRICT. Subtitle H, Title 6, Special District Local Laws Code, is amended by adding Chapter 8804 to read as follows:
CHAPTER 8804. VAL VERDE COUNTY GROUNDWATER
CONSERVATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8804.001. DEFINITIONS. In this chapter: (1) "Agricultural use" means any use or activity involving agriculture, including irrigation. (2) "Agriculture" means any of the following activities: (A) cultivating the soil to produce crops for human food, animal feed, or planting seed or for the production of fibers; (B) the practice of floriculture, viticulture, silviculture, and horticulture, including the cultivation of plants in containers of nonsoil media, by a nursery grower; (C) raising, feeding, or keeping animals, other than fish, for breeding purposes or for the production of food or fiber, leather, pelts, or other tangible products having a commercial value; (D) planting cover crops, including cover crops cultivated for transplantation, or leaving land idle for the purpose of participating in any governmental program or normal crop or livestock rotation procedure; (E) wildlife management; and (F) raising or keeping equine animals. (3) "Board" means the board of directors of the district. (4) "Director" means a member of the board. (5) "District" means the Val Verde County Groundwater Conservation District. (6) "Domestic use" means use in the district of water by a person owning the well from which the water is withdrawn and by that person's household for: (A) drinking, washing, or culinary purposes; (B) irrigation of lawns; (C) irrigation of a family garden or orchard the produce of which is for household consumption only; (D) swimming pools, decorative ponds, or fountains on the person's property; and (E) watering of domestic animals not raised, maintained, or sold for commercial purposes. (7) "Political subdivision" means a county, municipality, or other body politic or corporate of the state, including a district or authority created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, a state agency, or a nonprofit water supply corporation created under Chapter 67, Water Code. Sec. 8804.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Val Verde County created under Section 59, Article XVI, Texas Constitution. Sec. 8804.003. DISTRICT PURPOSE. The district is created to: (1) provide for the protection, recharging, and prevention of waste of groundwater in the Val Verde County area; (2) control subsidence caused by the withdrawal of water from the groundwater reservoirs in the Val Verde County area; (3) regulate the transport of groundwater out of the boundaries of the district; (4) maintain at least the minimum spring flow of San Felipe Springs based on the 1996 San Felipe Springs flow; and (5) manage the issuance of permits for the transfer of groundwater by: (A) requiring groundwater availability models of permit applicants; and (B) using sustainable yield calculations to manage withdrawal of groundwater to protect the aquifer and springs in the district.
[Sections 8804.004-8804.050 reserved for expansion]
SUBCHAPTER B. TERRITORY
Sec. 8804.051. BOUNDARIES. The boundaries of the district are coextensive with the boundaries of Val Verde County, Texas.
[Sections 8804.052-8804.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 8804.101. BOARD. The board consists of seven directors. Sec. 8804.102. METHOD OF ELECTING DIRECTORS: COMMISSIONERS PRECINCTS. (a) The directors of the district shall be elected according to the commissioners precinct method as provided by this section. (b) Three directors shall be elected by the voters of the entire district, and one director shall be elected from each county commissioners precinct by the voters of that precinct. (c) Except as provided by Subsection (e), to be eligible to be a candidate for or to serve as director at large, a person must be a registered voter in the district. To be a candidate for or to serve as director from a county commissioners precinct, a person must be a registered voter of that precinct. (d) A person shall indicate on the application for a place on the ballot: (1) the precinct that the person seeks to represent; or (2) that the person seeks to represent the district at large. (e) When the boundaries of the county commissioners precincts are redrawn after each federal decennial census to reflect population changes, a director in office on the effective date of the change, or a director elected or appointed before the effective date of the change whose term of office begins on or after the effective date of the change, shall serve in the precinct from which elected or appointed even though the change in boundaries places the person's residence outside the precinct from which the person was elected or appointed. Sec. 8804.103. ELECTION DATE. The district shall hold an election to elect the appropriate number of directors on the uniform election date prescribed by Section 41.001, Election Code, in November of each even-numbered year. Sec. 8804.104. TERMS. (a) Directors serve staggered four-year terms. (b) A director may serve for consecutive terms. Sec. 8804.105. COMPENSATION. (a) A director is not entitled to receive fees of office for performing the duties of a director. (b) The board may authorize a director to receive reimbursement for the director's reasonable expenses incurred while engaging in activities outside the district on behalf of the board.
[Sections 8804.106-8804.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
Sec. 8804.151. POWERS AND DUTIES. Except as otherwise provided by this chapter, the district has all of the rights, powers, privileges, authority, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. Sec. 8804.152. PERMIT TO TRANSFER GROUNDWATER. (a) The district by rule shall: (1) require a person to obtain a permit from the district to transfer groundwater out of the district; and (2) regulate the terms of a transfer of groundwater out of the district. (b) The district shall develop rules under this section that: (1) are consistent with the requirements of Section 36.122, Water Code; (2) manage the issuance of permits using a sustainable yield calculation in which the sustainable yield of the aquifer is measured by calculating the average water withdrawal during a calendar year and determining that the average water withdrawal does not exceed the long-term recharge as determined by the Texas Water Development Board under Section 8804.161; and (3) maintain at least the 1996 minimum spring flow of San Felipe Springs and at least the minimum flows of all other springs in the district as determined by the initial groundwater study conducted under Section 8804.161. (c) The district shall use a groundwater availability model, and not historical use, as the basis for issuing permits. (d) A permit issued under this section, except for a permit issued under Section 8804.153(a), does not establish historical use. Sec. 8804.153. PERMITS FOR USE SOLELY INSIDE DISTRICT. (a) The district shall grant the City of Del Rio a permit in the city's name that authorizes the city to pump from all city wells a stated cumulative amount of not less than 15,000 acre-feet of water annually for use solely inside the district. If the study performed under Section 8804.162 finds that sufficient groundwater is available, the district shall amend the city's permit to authorize the city to pump from all city wells a stated cumulative amount of not less than 20,000 acre-feet of water annually for use solely inside the district. This subsection does not limit the City of Del Rio's right to apply for or obtain a permit to transfer groundwater under Section 8804.152. (b) The district shall grant to a nonprofit rural water supply corporation, water district, or other political subdivision a permit that authorizes the water supply corporation, water district, or other political subdivision to pump from its wells annually a volume of water that is not less than the volume equal to twice its greatest water usage in a calendar year before the date the district is confirmed at an election held for that purpose, for use solely inside the district. Sec. 8804.154. AGRICULTURAL USE PERMIT. (a) Except as provided by Section 8804.155, the district shall grant any application for an agricultural use permit for any well that is used solely for agricultural use inside the district. The district shall issue an agricultural use permit in an amount that is not less than five acre-feet of water per acre actually cultivated per year. An agricultural use permit is nontransferable and expires on the date the well ceases to be used solely for agricultural use inside the district. (b) This section does not limit the well owner's right to apply for or obtain a permit to transfer groundwater under Section 8804.152. Sec. 8804.155. LIMITATION ON WELL PERMIT REQUIREMENTS. (a) The district may not require a person to obtain a permit from the district for: (1) a well used solely for domestic use or for providing water for livestock or poultry on a tract of land smaller than 10 acres that is either drilled, completed, or equipped so that it is incapable of producing more than 30,000 gallons of groundwater a day; (2) a well used solely for domestic use or for providing water for livestock or poultry on a tract of land 10 acres or larger that is either drilled, completed, or equipped so that it is incapable of producing more than 50,000 gallons of groundwater a day; or (3) any well in use before the date the district is confirmed at an election held for that purpose and used solely for agricultural use. (b) The district shall require a permit for a well described by Subsection (a)(3) that ceases to be used solely for agricultural use. The district also may impose a fee on the well as provided by Section 8804.202(c)(1)(A). (c) An owner of a well described by this section shall register the well with the district. (d) A well owner is entitled to a permit exemption under this section only if water from the well is used solely inside the district. If water from a well is not used solely inside the district, the well owner must obtain a permit. Sec. 8804.156. REPLACEMENT WELL. (a) A new well that replaces an abandoned or decommissioned well is subject to the same permit requirements or exemption as the well it replaces if the replacement well: (1) is used solely for the same purposes as the well it replaces; and (2) serves the same area as the well it replaces. (b) The district may not require a person who repairs or modifies a well to obtain a permit for that well if the well: (1) is exempt under Section 8804.155; and (2) continues to be used solely for agricultural use. Sec. 8804.157. PROHIBITION ON DISTRICT PURCHASE, SALE, TRANSPORT, OR DISTRIBUTION OF WATER. The district may not purchase, sell, transport, or distribute surface water or groundwater for any purpose. Sec. 8804.158. PROHIBITION ON DISTRICT USE OF EMINENT DOMAIN. The district may not exercise the power of eminent domain. Sec. 8804.159. REGIONAL COOPERATION. To provide for regional continuity, the district shall: (1) participate as needed in coordination meetings with other groundwater districts in its designated management area; (2) coordinate the collection of data with other groundwater conservation districts in its designated management area in such a way as to achieve relative uniformity of data type and quality; (3) coordinate efforts to monitor water quality with other groundwater conservation districts in its designated management area, local governments, and state agencies; (4) provide groundwater level data to other groundwater conservation districts in its designated management area; (5) investigate any groundwater or aquifer pollution with the intention of locating its source; (6) notify other groundwater conservation districts in its designated management area and all appropriate agencies of any groundwater pollution detected; and (7) include other groundwater conservation districts in its designated management area on the mailing lists for district newsletters, seminars, public education events, news articles, and field days. Sec. 8804.160. WATER CONSERVATION INITIATIVE. The district may create a water conservation initiative as described by Section 11.32, Tax Code. Sec. 8804.161. TEXAS WATER DEVELOPMENT BOARD STUDY. At least once every 10 years and at any other time the board considers necessary to implement Section 8804.152(b)(2), the staff of the Texas Water Development Board shall make a complete study of the groundwater in the district and determine: (1) the water level; (2) the rates and amounts of groundwater withdrawal; (3) the rates and amounts by which the groundwater is recharged; (4) rainwater levels; and (5) other information relating to the sustainable yield of the aquifer under Section 8804.152(b)(2). Sec. 8804.162. LOCAL STUDY OF GROUNDWATER AVAILABILITY. (a) Except as provided by Subsection (b), not later than the 10th anniversary of the date on which the district is confirmed, the district shall complete a study to determine whether there is sufficient groundwater to amend the permit granted under Section 8804.153(a) to the City of Del Rio as authorized by Section 8804.153(a). (b) In place of the district's study, the City of Del Rio may perform a study of the groundwater availability in the district and the board may rely on the city's study if the city's study meets the criteria of the Texas Water Development Board study required by Section 8804.161. Sec. 8804.163. MORATORIUM ON TRANSFER PERMITS. (a) The district shall impose a moratorium on the issuance of permits for the transfer of groundwater during each period set aside to conduct and consider a groundwater study under Section 8804.161. (b) Except for the initial study, the district by rule shall specify the length of the period set aside to conduct and consider groundwater studies under Section 8804.161. (c) The district may not issue a permit for the transfer of groundwater until: (1) an initial groundwater study under Section 8804.161 is completed and submitted to the district; (2) the district determines the amount of groundwater needed to maintain the minimum flow of each spring in the district; and (3) the district establishes by rule the amount of groundwater reserved solely to maintain minimum flows for all springs in the district.
[Sections 8804.164-8804.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 8804.201. LIMITATION ON TAXES. (a) The district may not levy ad valorem taxes at a rate that exceeds five cents on each $100 of assessed valuation of taxable property in the district. (b) The district may not levy ad valorem taxes at a rate that exceeds 2-1/2 cents on each $100 of assessed valuation of taxable property in the district for the first two tax years after the district's confirmation. (c) Not later than the seventh anniversary of the date on which the district is confirmed, the district shall maintain in reserve at all times not less than six months and not more than two years of operating capital. If the district's reserve operating capital at any time exceeds the amount needed to operate the district for two years, the district must: (1) reduce taxes so as not to collect more revenue than is needed to operate the district; or (2) perform a recharge project with the excess revenue. Sec. 8804.202. FEES. (a) The board by rule may impose reasonable fees on each well: (1) for which a permit is issued by the district; and (2) that is not exempt from district regulation. (b) A production fee may be based on: (1) the size of column pipe used by the well; or (2) the amount of water actually withdrawn from the well, or the amount authorized or anticipated to be withdrawn. (c) The board shall base the initial production fee on the criteria listed in Subsection (b)(2). The initial production fee: (1) may not exceed: (A) $0.25 per acre-foot for water used for agricultural irrigation; or (B) $0.0425 per thousand gallons for water used for any other purpose; and (2) may be increased at a cumulative rate not to exceed three percent per year. (d) In addition to the production fee authorized under this section, the district may assess an export fee on groundwater from a well that is produced for transport outside the district. (e) Fees authorized by this section may be: (1) assessed annually or monthly; and (2) used to pay the cost of district operations. Sec. 8804.203. EXEMPTION FROM FEES. (a) Except as provided by Subsection (b), the district may not impose a fee on a well drilled by a nonprofit rural water supply corporation, water district, or other political subdivision if the well's production is for use within the district. (b) The district by emergency order of the board may impose a reasonable and temporary production fee on a well described by Subsection (a) if: (1) severe drought or another district emergency makes the fee necessary; and (2) the term of the order does not exceed 180 days. SECTION 5. APPOINTMENT OF TEMPORARY DIRECTORS. (a) Not later than the 45th day after the effective date of this Act: (1) the Val Verde County Commissioners Court shall appoint one temporary director from each of the four commissioners precincts in the county to represent the precinct in which the temporary director resides; (2) the county judge of Val Verde County shall appoint one temporary director who resides in the district to represent the district at large; and (3) the Del Rio City Council shall appoint two temporary directors, each of whom resides in the district, to represent the district at large. (b) Of the temporary directors, at least one director must represent rural water suppliers in the district, one must represent agricultural interests in the district, one must represent industrial interests in the district, and one must represent municipal water suppliers. (c) If there is a vacancy on the temporary board of directors of the district, the remaining temporary directors shall appoint a person to fill the vacancy in a manner that meets the representational requirements of this section. (d) Temporary directors serve until temporary directors become initial directors as provided by Section 8 of this Act or this Act expires under Section 12, whichever occurs earlier. SECTION 6. ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS. As soon as practicable after all the temporary directors have qualified under Section 36.055, Water Code, a majority of the temporary directors shall convene the organizational meeting of the district at a location within the district agreeable to a majority of the directors. If no location can be agreed upon, the organizational meeting shall be at the Val Verde County Courthouse. SECTION 7. CONFIRMATION ELECTION. (a) The temporary directors shall hold an election to confirm the creation of the district. (b) Section 41.001(a), Election Code, does not apply to a confirmation election held as provided by this section. (c) Except as provided by this section, a confirmation election must be conducted as provided by Sections 36.017(b)-(i), Water Code, and the Election Code. (d) The district may hold a subsequent confirmation election if the previous confirmation election fails to pass. A subsequent confirmation election may not be held sooner than one year after the date of the previous confirmation election. (e) The confirmation election ballot shall be printed to permit voting for or against the proposition: "To create the Val Verde County Groundwater Conservation District and to authorize the district to impose an ad valorem tax at a rate not to exceed 5 cents for each $100 valuation of all taxable property in the district with no more than a 2.5-cent tax for each $100 valuation of all taxable property in the district for the first two tax years after the district's confirmation." (f) If the establishment of the district is not confirmed at an election held under this section before September 1, 2010, the district is dissolved, except that: (1) any debts incurred shall be paid; (2) any assets that remain after the payment of debts shall be transferred to Val Verde County; and (3) the organization of the district shall be maintained until all debts are paid and remaining assets are transferred. SECTION 8. INITIAL DIRECTORS. If creation of the district is confirmed at an election held under Section 7 of this Act, the temporary directors of the district become the initial directors of the district and serve on the board of directors until permanent directors are elected under Section 9 of this Act. SECTION 9. ELECTION OF PERMANENT DIRECTORS. (a) The initial directors serve until the first regularly scheduled election of directors under Subsection (b) of this section. (b) On the uniform election date prescribed by Section 41.001, Election Code, in November of the first even-numbered year after the year in which the district is authorized to be created at a confirmation election, an election shall be held in the district for the election of seven directors. The elected directors shall draw lots to determine which three directors shall serve terms lasting until the first regularly scheduled election under Section 8804.103, Special District Local Laws Code, as added by this Act, and which four shall serve until the second regularly scheduled directors election. SECTION 10. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor has submitted the notice and Act to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, the lieutenant governor, and the speaker of the house of representatives within the required time. (d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 11. STUDY COMPLETION. Not later than the 180th day after the date the district is confirmed at an election held for that purpose, the Texas Water Development Board shall complete the initial study required by Section 8804.161, Special District Local Laws Code, as added by this Act, and deliver the findings of the study to the board. SECTION 12. EXPIRATION. (a) If the creation of the district is not confirmed at a confirmation election held under Section 7 of this Act before September 1, 2010, this Act expires on that date. (b) The expiration of this Act does not affect the liability of the district to pay any debt incurred or the transfer of any assets remaining to Val Verde County as required by Section 7(f) of this Act. SECTION 13. EFFECTIVE DATE. 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.