By: King of Parker H.B. No. 4052

A BILL TO BE ENTITLED

AN ACT

relating to the creation, administration, powers, duties, operations and financing of the Upper Trinity Groundwater Conservation District.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle H, Title 6, Special District Laws Code, is amended by adding Chapter 8814 to read as follows: CHAPTER 8814. UPPER TRINITY GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8814.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) "Director" means a member of the board.

(3) "District" means the Upper Trinity Groundwater Conservation District.

Sec. 8814.002. DISTRICT TERRITORY. The district is coextensive with and thus encompasses all of the territory within Hood County, Montague County, Parker County, and Wise County, Texas, subject to a confirmation election under Section 8814.009.

Sec. 8814.003. NATURE OF DISTRICT; FINDING OF BENEFIT. The district is a groundwater conservation district created under and essential to accomplishing the purposes of Article XVI, Section 59, Texas Constitution. The district is created to serve a public use and benefit. 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 the powers delegated to it by this chapter and by Chapter 36, Water Code. Any fees imposed by the district under this chapter are necessary to pay for the costs of accomplishing the purposes of the district as set forth in Section 59, Article XVI, Texas Constitution, and this Act, including the conservation and management of groundwater resources.

Sec. 8814.004. APPLICABILITY OF OTHER LAW. Except as otherwise provided by this chapter, Chapter 36, Water Code, applies to the district.

Sec. 8814.005. CONSTRUCTION OF CHAPTER. (a) This chapter shall be liberally construed to achieve the legislative intent and purpose of Chapter 36, Water Code. All powers delegated by Chapter 36, Water Code, and by this chapter, shall be broadly interpreted to achieve the intent and purposes of each enactment.

(b) This chapter prevails over any provision of general law, including Chapter 36, Water Code, that is in conflict or is inconsistent with this chapter.

(c) Notwithstanding Subsection (b) of this section, the following provisions prevail over a conflicting or inconsistent provision of this chapter:

(1) Sections 36.107 through 36.108, Water Code;

(2) Sections 36.159 through 36.161, Water Code; and

(3) Subchapter I, Chapter 36, Water Code.

(d) Chapter 49, Water Code, does not apply to the district.

Sec. 8814.006. CONFIRMATION ELECTION REQUIRED. (a) If the creation of the district is not confirmed at a confirmation election held pursuant to Section 8814.009 before September 1, 2009:

(1) the district is dissolved on September 1, 2009, except that:

(A) any debts incurred shall be paid;

(B) any assets that remain after the payment of debts shall be transferred in equal proportion to Hood County, Montague County, Parker County, and Wise County; and

(C) the organization of the district shall be maintained until all the debts are paid and remaining assets are transferred; and

(2) this chapter expires on September 1, 2012. SUBCHAPTER A-l. TEMPORARY PROVISIONS

Sec. 8814.007. APPOINTMENT OF TEMPORARY DIRECTORS. (a) The district will initially be governed by a board of eight temporary directors. This temporary board will consist of the following:

(1) Two temporary directors appointed by the Hood County Commissioners Court;

(2) Two temporary directors appointed by the Montague County Commissioners Court;

(3) Two temporary directors appointed by the Parker County Commissioners Court;

(4) Two temporary directors appointed by the Wise County Commissioners Court.

(b) Each of the temporary directors shall be appointed within 90 days of the effective date of this chapter. If, after the passage of 90 days from the effective date of this chapter, fewer than eight temporary directors have been appointed, then the unfilled temporary directors positions shall each be considered a vacancy, and shall be filled in accordance with Subsection (c) of this section.

(c) If a vacancy occurs on the temporary board, the remaining temporary directors shall appoint a person to fill the vacancy in a manner that meets the representational requirements of this section.

(d) To be eligible to serve as a temporary director, a person must be a registered voter in the district and in the county of appointment.

(e) Each temporary director must qualify to serve as a director in the manner provided for by Section 36.055, Water Code.

(f) The temporary directors shall serve until the earlier of:

(1) the time the temporary directors become permanent directors as provided for in Section 8814.010; or

(2) the date this chapter expires under Section 8814.006.

Sec. 8814.008. ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS. As soon as practicable after each of the eight 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 temporary directors. If an agreement on location cannot be reached, the organizational meeting shall be at the Poolville Junior High School in Parker County.

Sec. 8814.009. CONFIRMATION ELECTION. (a) The temporary directors shall order an election to be held within the boundaries of the district to approve 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 otherwise provided by this section, a confirmation election must be conducted as provided by Sections 36.017(b), (c), (e)-(g), Water Code, and the Election Code.

(d) The ballot for the election must be printed to provide for voting for or against the following proposition: "The creation of a non-taxing, locally controlled groundwater conservation district to be known as the Upper Trinity Groundwater Conservation District, in lieu and instead of anticipated action by the Texas Commission on Environmental Quality to otherwise establish a conservation and reclamation district within the same or larger area."

(e) If a majority of the votes cast at the election are not in favor of the creation of the district, the temporary directors may order a subsequent confirmation election to be held in accordance with this section.

Sec. 8814.010. PERMANENT DIRECTORS. (a) Upon confirmation of the district by the voters within the district at an election called for that purpose, within 60 days following the completion of canvassing of the votes in said election, the permanent directors shall be appointed to the board pursuant to and in accordance with Subchapter B of this chapter.

(b) If, at the close of the 60-day period provided in Subsection (a), fewer than eight permanent directors have been appointed, then the unfilled permanent directors positions shall each be considered a vacancy, and shall be filled in accordance with Section 8814.007(c).

Sec. 8814.011. COMMENCEMENT OF PERMANENT TERMS; INITIAL TERMS. (a) The permanent terms referenced in Section 8814.013(b) shall commence on the first occurring June 1 of an odd-numbered year following the appointment of permanent directors pursuant to Section 8814.010.

(b) The two permanent directors from each county first appointed pursuant to Section 8814.010 shall draw lots to determine which permanent director from that county shall serve a two-year permanent term and which permanent director from that county shall serve a four-year permanent term. Said permanent terms will commence on the date provided in Subsection (a).

(c) The initial terms for the permanent directors appointed pursuant to Section 8814.010 shall extend from the time first appointed pursuant to Section 8814.010 through the end of the directors' first permanent term, as determined by Subsection (b).

Sec. 8814.012. EXPIRATION OF SUBCHAPTER. This subchapter expires on September 1, 2012. SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8814.013. GOVERNING BODY; TERMS. (a) The district is governed by a board of eight directors. The board will consist of the following:

(1) two directors appointed by the Hood County Commissioners Court;

(2) two directors appointed by the Montague County Commissioners Court;

(3) two directors appointed by the Parker County Commissioners Court;

(4) two directors appointed by the Wise County Commissioners Court.

(b) Directors serve staggered four-year terms, with the terms expiring on June 1 of odd numbered years.

(c) A director serves until the director's successor has qualified.

(d) A director may serve multiple, successive terms.

Sec. 8814.014. ELIGIBILITY; QUALIFICATION TO SERVE. (a) To be eligible to serve as a director, a person must be a registered voter in the district and in the county of appointment.

(b) Each director must qualify to serve as a director in the manner provided for by Section 36.055, Water Code.

Sec. 8814.015. COMPENSATION OF DIRECTORS; REIMBURSEMENT OF EXPENSES. (a) Notwithstanding Section 36.060(a) and (d), Water Code, a director is prohibited from receiving fees of office for performing the duties of director.

(b) Notwithstanding Subsection (a), a director is entitled to reimbursement of actual expenses reasonably and necessarily incurred while engaging in activities on behalf of the district. SUBCHAPTER C. POWERS AND DUTIES

Sec. 8814.016. DISTRICT POWERS AND DUTIES. Except as otherwise provided in this chapter, the district has all of the rights, powers, privileges, authority, functions and duties provided to by the general law of this state, including Chapter 36, Water Code, and otherwise by Article XVI, Section 59, Texas Constitution.

Sec. 8814.017. EXEMPTION OF CERTAIN WELLS FROM DISTRICT WELL SPACING REQUIREMENTS. Wells already completed and existing within the district on the effective date of this chapter are exempt from any well spacing requirements of the district. A well may lose its exemption under this section if provided by district rule if it is subsequently replaced, re-equipped, or re-completed in a manner that increases the capacity of the well from its capacity on the effective date of this chapter.

Sec. 8814.018. APPLICABILITY OF DISTRICT REGULATIONS. (a) All persons are subject to groundwater regulation under this chapter, except as exempted under Section 36.117, Water Code, or this chapter. For a person that is a government or governmental subdivision or agency, sovereign immunity to suit and to liability is waived for the purpose of the district's implementation and enforcement of this chapter, Chapter 36, Water Code, and the rules of the district.

(b) Notwithstanding Subsection (a), the district may require any well or class of wells exempt from permitting under Chapter 36, Water Code, to comply with any spacing regulations established by district rule.

Sec. 8814.019. PROHIBITION ON CERTAIN ACTIVITIES. (a) The district by rule may prohibit a person from holding or otherwise storing groundwater produced from wells within the district in a surface impoundment if said water is subsequently:

(1) made available for commercial sale; or

(2) withdrawn or diverted from said holding or storage impoundment for use in commercial or industrial activity.

(b) This section does not apply to provision of groundwater for municipal, domestic, or livestock use.

Sec. 8814.020. CONTRACTS. The district may enter into contracts with any person, including any public or private entity, for any purpose otherwise authorized by law.

Sec. 8814.021. REPORTING REQUIREMENTS FOR CERTAIN EXEMPT WELLS. In lieu of the requirement to obtain a permit from the district for the drilling, equipping, operating, or completing of wells or for substantially altering the size of the wells or well pumps as required by Section 36.113, Water Code, a person drilling or operating a water well exempted under Section 36.117(b)(2), Water Code, shall in accordance with district rules register the well with the district and report periodically to the district the total amount of water withdrawn.

Sec. 8814.022. NON-APPLICABILITY. Section 36.121, Water Code, does not apply to the district.

Sec. 8814.023. ENFORCEMENT. The district may enforce this chapter in the manner set forth under Chapter 36, Water Code. In lieu of the enforcement remedies available to the district under Section 36.102, Water Code, or in addition to those remedies, the district may assess to any person producing water in violation of the rules or regulations of the district, including failure or refusal to timely comply with any order, rule, or regulation of the district to reduce or cease groundwater usage, an additional fee not to exceed ten times the amount of the fee assessed to the person under Section 8814.025 of this chapter to serve as a disincentive to producing groundwater. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8814.024. TAXES PROHIBITED. The district may not impose a tax. Sections 36.020(a) and 36.201-36.204, Water Code, do not apply to the district.

Sec. 8814.025. DISTRICT REVENUES. (a) The district by rule, resolution, or order may establish, adjust from time to time, pledge, encumber, expend the proceeds from, and assess to any person production fees based upon the amount of water authorized by permit to be withdrawn from a well, or based upon the amount of water actually withdrawn, to enable the district to fulfill its purposes and regulatory functions as provided by this chapter. The district may use revenues generated by any fees assessed by the district for any lawful purpose.

(b) Notwithstanding any provision of general law to the contrary, the fees authorized by Subsection (a) of this section shall not exceed:

(1) one dollar ($1.00) per acre-foot annually for water used for agricultural use; or

(2) thirty cents ($0.30) per thousand gallons annually for water used for any other purpose.

(c) Notwithstanding any provision of general law or this chapter to the contrary, if any, the district may assess a production fee under this section for water produced from a well that is exempt from permitting by the district under Section 36.117(b)(2), Water Code. Production fees assessed by the district to the owner or operator of a well described by this subsection shall be based upon the amount of water actually withdrawn from the well and shall not exceed the amount established by the district for permitted uses under Subsection (b)(2).

(d) Notwithstanding Section 36.1071(f), Water Code, the district may, prior to the adoption of its management plan, by rule, resolution, or order:

(1) establish, assess, and enforce the collection of fees; and

(2) establish and enforce metering and reporting requirements.

(e) The district by rule may establish a temporary or permanent discounted fee rate for persons who pre-pay fees to the district under this section on or before dates established by district rule.

SECTION 2. (a) The proper and 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 by the constitution and other laws of this state, including the governor, who has submitted the notice and the Act to the Texas Commission on Environmental Quality.

(b) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time.

(c) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to notice, introduction and passage of this Act are fulfilled and accomplished.

(d) The Legislature finds that sovereign immunity to suit and to liability by a government or governmental subdivision or agency is already waived for the purpose of implementation and enforcement of Chapter 36, Water Code, by a groundwater conservation district notwithstanding the changes in law made by this Act.

SECTION 3. (a) This Act takes effect immediately if it receives the vote of two-thirds of all the members elected to each House, as provided for by Article III, Section 39, of the Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect on September 1, 2007.

(b) If the creation of the district is not confirmed at a confirmation election before September 1, 2009, this Act expires on September 1, 2012.