By: Rios Ybarra H.B. No. 4705

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Brush Country Groundwater Conservation District; providing conditional authority to impose a tax and authority to issue bonds.

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

SECTION 1. Subtitle H, Title 6, Special District Local Laws Code, is amended by adding Chapter ____ to read as follows:

CHAPTER . BRUSH COUNTRY GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. . 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 Brush Country Groundwater Conservation District.

Sec. . NATURE OF DISTRICT. The district is a groundwater conservation district in Jim Hogg, Brooks, and Hidalgo Counties created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

Sec. . CONFIRMATION ELECTION REQUIRED. (a) If a majority of the qualified voters voting in the election in each designated area vote to confirm the district, the district is confirmed as to the designated area. If a majority of the qualified voters voting in the election in one or more of the four designated areas vote to confirm the creation of the district, the district is created for the designated areas voting to confirm.

(b) The four designated areas referenced in subsection (a) are as follows:

(1) All real property within the corporate limits of the City of Falfurrias as of January 1, 2009;

(2) All real property in Brooks County outside of the corporate limits of the City of Falfurrias and not located within the Kenedy County Groundwater Conservation District as of January 1, 2009 and the part of Hidalgo County described with a metes and bounds description in Section 2 of this Act and which is not located within the Kenedy County Groundwater Conservation District as of January 1, 2009;

(3) All real property within the certificated retail water service area of the Jim Hogg County Water Control and Improvement District No. 2 (CCN No. 12744) as of January 1, 2009; and

(4) All real property in Jim Hogg County outside of the certificated retail water service area of the Jim Hogg Water Control and Improvement District No. 2 as of January 1, 2009.

(c) The offices of the directors who represent an interest in a designated area that does not confirm the district lapse on the date the canvass of the vote failing to confirm the district is recorded.

(d) The district may solicit and accept gifts and grants from any private or public source to provide revenue for the district prior to the confirmation election for the district;

(e) If the creation of the district is not confirmed by any designated areas at a confirmation election held on or before September 1, 2011:

(1) the district is dissolved on September 1, 2011, except that:

(A) any debts incurred shall be paid;

(B) any assets that remain after the payment of debts shall be transferred in equal amounts to Jim Hogg and Brooks Counties; and

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

(2) this chapter expires September 1, 2011.

Sec. . INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act creating this chapter.

(b) The boundaries described in Section 2 of the Act creating this chapter form a closure. A mistake made in describing the district's boundaries in the legislative process does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bond for the purposes for which the district is created or to pay the principal of an interest on a bond;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

Sec. . APPLICABILITY OF OTHER GROUNDWATER CONSERVATION DISTRICT LAWS. Except as otherwise provided by this chapter, Chapter 36, Water Code, applies to the district.

Sec. . CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to achieve the legislative intent and purposes of Chapter 36, Water Code. A power granted by Chapter 36, Water Code, or this chapter shall be broadly interpreted to achieve that intent and those purposes.

(b) Section 36.121, Water Code, does not apply to the district.

Sec. . TEMPORARY DIRECTORS. (a) The temporary board of directors consists of:

(1) David Grall, representing the agricultural interests of the designated area of Brooks County outside the corporate limits of the City of Falfurrias and not part of the Kenedy County Groundwater Conservation District as of January 1, 2009 and the part of Hidalgo County described in Section 2 of this Act and which is not located within the Kenedy County Groundwater Conservation District as of January 1, 2009;

(2) Mauro Garcia, representing the agricultural interests of Brooks County outside the corporate limits of the City of Falfurrias and not part of the Kenedy County Groundwater Conservation District as of January 1, 2009 and the part of Hidalgo County described in Section 2 of this Act and which is not located within the Kenedy County Groundwater Conservation District as of January 1, 2009;

(3) Richard Jones, representing the agricultural interests of Jim Hogg County outside of the certificated retail water service area of the Jim Hogg County Water Control and Improvement District No. 2 (CCN No. 12744) as of January 1, 2009;

(4) Mario Martinez, representing the agricultural interests of Jim Hogg County outside of the certificated retail water service area of the Jim Hogg County Water Control and Improvement District No. 2 (CCN No. 12744) as of January 1, 2009;

(5) Robert Scott, representing the municipal interests of Brooks County within the corporate limits of the City of Falfurrias as of January 1, 2009;

(6) Israel Hinojosa, representing the interests of Jim Hogg County within the certificated retail water service area of the Jim Hogg County Water Control and Improvement District No. 2 (CCN No. 12744) as of January 1, 2009;

(7) William P. Goranson, representing the industrial and mining interests of Jim Hogg and Brooks Counties.

(b) 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.

(c) Temporary directors serve until the earlier of:

(1) the time the temporary directors become initial permanent directors under Section .00; or

(2) the date this chapter expires under Section .

Sec. . ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS. (a) 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 temporary directors. If an agreement on location cannot be reached, the organizational meeting shall be at the Brooks County Courthouse.

Sec. . CONFIRMATION ELECTION. (a) The temporary directors shall hold an election to confirm the creation of the district and the imposition of a maintenance tax.

(b) Section 41.001(a), Election Code, does not apply to an election held as provided by this section.

(c) Except as provided by this section, an election under this section must be conducted as provided by Sections 36.017(b), (c), and (e)-(i), Water Code, and the Election Code.

(d) The ballot for the election must be printed to provide for voting for or against the proposition: "The creation of the Brush Country Groundwater Conservation District and the levy of a maintenance tax at a rate not to exceed three cents ($0.03) for each $100 of assessed valuation."

(e) If a majority of the votes cast at the election in all of the designated areas are not in favor of the creation of the district, the temporary directors may call a subsequent confirmation election.

(f) The district may not impose a maintenance tax unless the tax is confirmed under this section.

(g) If creation of the district is confirmed at an election held under Section in one or more designated areas, the temporary directors who represent designated areas which confirmed the creation of the district become the initial permanent directors of the district.

Sec. . APPOINTMENT OF DIRECTORS. (a) At least 60 days before the expiration of the initial terms of the initial permanent directors, the Brooks and Jim Hogg Counties Commissioners Courts shall reappoint the existing directors or appoint new directors in a manner which is consistent with the requirements of this section.

(b) the Brooks County Commissioners Court shall reappoint or appoint three directors to represent the director positions described in Section . (a)(1); (a)(2); and (a)(5).

(c) The Jim Hogg County Commissioners Court shall reappoint or appoint three directors to represent the director positions described in Section (a)(3); (a)(4); and (a)(6).

(d) The Jim Hogg County Commissioners Court and the Brooks County Commissioners Court shall jointly reappoint or appoint one director to represent the director position described in Section (a)(7).

(e) A director is not disqualified from service because the director is an employee, manager, director, or officer of a groundwater producer that is or may be regulated by the district.

(f) If the creation of the district is confirmed at a confirmation election under Section . of this Act in one or more of the designated areas, the directors appointed from the designated areas whose voters did not confirm the establishment of the district are not eligible to serve as directors of the district as of the date of the canvass of the vote confirming the district.

Sec. . EXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2013.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. . Except as otherwise provided by this chapter, directors serve staggered four-year terms, with three directors' terms expiring June 1 of each even-numbered year.

(b) The initial permanent directors shall draw lots to determine which directors serve a term expiring June 1 of the first even-numbered year after the confirmation election and which directors serve a term expiring June 1 of the next even-numbered year.

(c) A director may serve an unlimited number of consecutive terms.

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

Sec. . FEES OF OFFICE; REIMBURSEMENT. (a) Notwithstanding Sections 36.060(a) and (d), Water Code, a director may not receive fees of office for performing the duties of director.

(b) A director is entitled to receive reimbursement of actual expenses reasonably and necessarily incurred while engaging in activities on behalf of the district in accordance with Sections 36.060(b) and (c), Water Code.

Sec . QUALIFICATIONS; GROUNDWATER PRODUCER. (a) A person is not disqualified from serving as a director if that person is an employee, manager, director, or officer of a groundwater producer that is or may be regulated by the district.

SUBCHAPTER C. POWERS AND DUTIES

Sec. . GENERAL POWERS. Except as otherwise provided by this chapter, the district has the powers and duties provided by the general law of this state, including Chapter 36, Water Code, and Section 59, Article XVI, Texas Constitution, applicable to groundwater conservation districts.

Sec. . CONTRACTS. The district may enter into a contract with any person, public or private, for any purpose authorized by law.

Sec. . EXEMPTIONS. (a) In this section:

(1) "Domestic use" means the use of groundwater by an individual or a household to support domestic activities, including the use of groundwater for drinking, washing, or culinary purposes; for irrigating a lawn or a family garden or orchard; for watering domestic animals; and for water recreation, including aquatic and wildlife enjoyment. Domestic use does not include the use of water to support an activity for which consideration is given or received or for which the product of the activity is sold. Domestic use does not include use by or for a public water system.

(2) "Livestock use" means the use of groundwater for the open-range watering of livestock, exotic livestock, game animals, or fur-bearing animals. For purposes of this definition, the terms "livestock" and "exotic livestock" have the meanings assigned by Sections 1.003 and 142.001, Agriculture Code, respectively, and the terms "game animal" and "fur-bearing animal" have the meanings assigned by Sections 63.001 and 71.001, Parks and Wildlife Code, respectively. Livestock use does not include use by or for a public water system.

(b) Section 36.117, Water Code, applies to the district.

Sec. . IMPACT OF TRANSFER. (a) If the district finds that a transfer of groundwater out of the district negatively impacts any of the considerations described by Section 36.122(f), Water Code, the district may impose additional requirements or limitations on the permit that are designed to minimize those impacts.

(b) Sections 36.122(c), (i), and (j), Water Code, do not apply to a requirement or limitation imposed under this section.

(c) The district may impose a fee or surcharge as an export fee. The rate restrictions under Section 36.122(e), Water Code, do not apply to a fee or surcharge imposed under this subsection.

Sec. . APPLICABILITY OF DISTRICT REGULATIONS. (a) Groundwater regulation under this chapter applies to all persons except as exempted under Section 36.117, Water Code, or this chapter.

Sec. . NO EMINENT DOMAIN POWER. (a) The district may not exercise the power of eminent domain.

Sec. . LANDOWNERS' RIGHTS. (a) The rights of landowners and their lessees and assigns in groundwater in the district are recognized. Nothing in this Act shall be construed to deprive or divest the owners or their lessees and assigns of their rights, subject to district rules.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. . REVENUE. To pay the maintenance and operating costs of the district and to pay any bonds or notes issued by the district, the district may:

(1) impose an ad valorem tax through the levy of the maintenance tax authorized by Section . at a rate not to exceed three cents ($0.03) on each $100 of assessed valuation of taxable property; or

(2) solicit and accept grants from any private or public source.

SECTION 2. The initial boundaries of the Brush Country Groundwater Conservation District are as follows:

(a) all real property within the boundaries of Jim Hogg County, Texas;

(b) all real property in Brooks County save and except all of those portions of Brooks County that as of January 1, 2009, are located within the Kenedy County Groundwater Conservation District; and

(c) all real property in Hidalgo County contained in the following described area and which is not located within the Kenedy County Groundwater Conservation District as of January 1, 2009:

10,953.38 acres of land, more or less, out of Guadalupe Sanchez Grant, Abstract 481, Brooks County, Texas, also known as the "La Rucia Grant", and any adjoining surveys, the said 10,953.38 acres being more particularly described as follows:

COMMENCING at a Stone marking the southwest corner of the Juan Garza Diaz Grant, Abstract 192, Brooks County, Texas, and Abstract 82, in Hidalgo County, Texas, being also an inner corner of the Argyle McAllen 8827.00 acre-tract as described in that certain Oil, Gas and Mineral Lease executed by Argyle McAllen in favor of Shell Oil Company, dated January 10, 1958, and recorded in Volume 210, Page 342, of the Oil and Gas Records of said County;

THENCE North 01° 15' 50" East with the east line of the said "La Rucia Grant" and with a fence, a distance of 322.2 varas to a fence corner marking the south-east corner and BEGINNING POINT of the herein described tract;

THENCE in a westerly direction with the said fence, being also the north line of the said McAllen 8827.00-acre tract and with the north line of the Argyle McAllen 23,597.00 acre tract as described in the Oil, Gas and Mineral lease executed by Argyle McAllen in favor of Shell Oil Company, dated September 5, 1947, and recorded in Volume 74, page 112, of the Oil and Gas Records of Hidalgo County, Texas; thence with said line the following courses and distances: North 85° 06' 40" West, 3538.3 varas; North 84° 39' 20" West, 2104.4 varas; and North 81° 32' 50" West, 725.3 varas to a southeast corner of the J. C. McGill, Jr., et al 640-acre tract, being a part of a 38,644.1-acre tract, being also a point on the east line of the Texas-Mexico R. R. Survey No. 189, Abstract 157;

THENCE North 00° 55' East with the said fence and the east lines of the said Tex-Mex R. R. Survey No. 189, the Tex-Mex R. R. Survey No. 190, Abstract 785, and the Tex-Mex R. R. Survey No. 191, Abstract 158, a total distance of 5076.5 varas to a point for corner, from which a Mesquite Marked "X" bears South 61° 45' East 74.0 varas;

THENCE, North 00° 54' East with the said fence and with the east line of the Jose Antonio Morales Garcia and Apolinario Morales Garcia Grant, known as the "San Antonio Grant", Abstract 214, Brooks County, Abstract 578, Hidalgo County, and Abstract 103 in Starr County, a distance of 4280.8 varas to the fence corner, the southwest corner of the Louella Jones Borglum 7036.01-acre tract (called 8576.50 acres);

THENCE, South 89° 40' East with the south fence and with the south line of the said Borglum 7036.01 acre tract a distance of 6202.3 varas to a fence corner marking the southeast corner of the same, being also a point on the west line of the Juan Garza Diaz Grant, also known as the "Vargas Grant", Abstract 192, in Brooks County, and Abstract 82, in Hidalgo County, Texas;

THENCE South 00° 04' West with the said fence and the west line of the said "Vargas Grant", a distance of 9924.7 varas to the PLACE OF BEGINNING and containing 10,953.38 acres of land, more or less.

SECTION 3. (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 __. B. ___ 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 4. 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, 2009.