The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined that:

The bill creates the Panola County Groundwater Conservation District (District) in Panola County with the powers and duties of Water Code, Chapter 36 related to general law for groundwater conservation districts (GCDs). The purpose of the District is to benefit property by providing for the conservation, preservation, protection, recharging, and prevention of waste of groundwater, and to control subsidence caused by the withdrawal of groundwater under powers conferred by Article XVI, Section 59 of the Texas Constitution. Creation of the District is subject to a confirmation election.

3)  Comments on Powers/Duties Different from Similar Types of Districts  -  Unlike general law GCDs, the bill provides that the District has county-appointed temporary directors to represent varied water user groups and then be governed by nine directors elected by the commissioners precinct method. Directors may not receive fees of office that exceed $50 a day or $3,000 a year. The District may not purchase, sell, transport or distribute surface water or groundwater for any purpose, or exercise the power of eminent domain. The District is subject to more stringent requirements for cooperation with other GCDs within the same groundwater management area. The District’s initial well production fees may not exceed $0.25 per acre-foot of water used for agricultural irrigation and $0.0675 per 1,000 gallons for water used for any other purposes and the fees may be increased at a cumulative rate not to exceed three percent per year. The District may not levy a tax that exceeds $0.015 per $100 assessed valuation and may not exceed bond or note indebtedness of $500,000. The District would be dissolved on December 31, 2008, if it is not confirmed by this date, and temporary provisions in Chapter 8819, Subchapter A-1 would expire on September 1, 2012.

4)  Overlapping Services -   There are no other GCDs in Panola County. GCD functions do not conflict with services provided by other types of water districts or utilities.

5)  TCEQ=s Supervision -   As with general law GCDs, the TCEQ will have general supervisory authority, including bond review authority and authority as it is related to the District’s development and implementation of a management plan; the District would not have to comply with TCEQ financial auditing requirements.