By: Hinojosa, Zaffirini  S.B. No. 2456
         (In the Senate - Filed March 20, 2009; March 31, 2009, read
  first time and referred to Committee on Natural Resources;
  April 16, 2009, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 9, Nays 0; April 16, 2009,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 2456 By:  Hinojosa
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the creation of the Brush Country Groundwater
  Conservation District; providing authority to impose a tax and
  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 8852 to read as follows:
  CHAPTER 8852. BRUSH COUNTRY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8852.001.  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 Brush Country Groundwater
  Conservation District.
         Sec. 8852.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district created under and essential to
  accomplish the purposes of Section 59, Article XVI, Texas
  Constitution.
         Sec. 8852.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed in at least one of the
  territories described by Section 8852.023 at a confirmation
  election held 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, Brooks,
  Hidalgo, and Jim Wells 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, 2013.
         Sec. 8852.004.  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 and
  interest on a bond;
               (3)  right to impose an assessment or tax; or
               (4)  legality or operation.
         Sec. 8852.005.  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.
  [Sections 8852.006-8852.020 reserved for expansion]
  SUBCHAPTER B.  DISTRICT CREATION
         Sec. 8852.021.  TEMPORARY DIRECTORS.  (a)  The temporary
  board consists of:
               (1)  David Grall;
               (2)  Mauro Garcia;
               (3)  Robert Scott;
               (4)  A. C. Jones IV;
               (5)  Mario Martinez;
               (6)  Israel Hinojosa;
               (7)  William P. Goranson;
               (8)  Jesse Howell;
               (9)  Pearson Knolle; and
               (10)  Lawrence Cornelius.
         (b)  If there is a vacancy on the temporary board, the
  remaining temporary directors shall select a qualified person to
  fill the vacancy.
         (c)  Unless the temporary director's term expires under
  Subsection (d), a temporary director serves until the earlier of:
               (1)  the date the temporary director becomes an initial
  permanent director under Section 8852.024; or
               (2)  the date this chapter expires under Section
  8852.003.
         (d)  The following temporary directors' terms expire on the
  date of the canvass of the election to confirm the creation of the
  district:
               (1)  David Grall and Mauro Garcia, if the voters in the
  territory described by Section 8852.023(a)(3) vote not to confirm
  the creation of the district;
               (2)  Robert Scott, if the voters in the territory
  described by Section 8852.023(a)(1) vote not to confirm the
  creation of the district;
               (3)  A. C. Jones IV and Mario Martinez, if the voters in
  the territory described by Section 8852.023(a)(5) vote not to
  confirm the creation of the district;
               (4)  Israel Hinojosa, if the voters in the territory
  described by Section 8852.023(a)(4) vote not to confirm the
  creation of the district;
               (5)  William P. Goranson, if the creation of the
  district is confirmed by voters of none of the territories
  described by Section 8852.023;
               (6)  Jesse Howell and Pearson Knolle, if the voters in
  the territory described by Section 8852.023(a)(6) vote not to
  confirm the creation of the district; and
               (7)  Lawrence Cornelius, if the voters in the territory
  described by Section 8852.023(a)(2) vote not to confirm the
  creation of the district.
         Sec. 8852.022.  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 an agreement
  on location cannot be reached, the organizational meeting shall be
  at the Brooks County Courthouse.
         Sec. 8852.023.  CONFIRMATION ELECTION. (a)  The temporary
  board shall hold an election in each of the following territories in
  the district to confirm the creation of the district and the
  imposition of a maintenance tax:
               (1)  the territory in the corporate limits of the city
  of Falfurrias as of January 1, 2009;
               (2)  the territory in the corporate limits of the city
  of Alice as of January 1, 2009;
               (3)  the territory:
                     (A)  in Brooks County that, as of January 1, 2009,
  is:
                           (i)  outside the corporate limits of the
  city of Falfurrias; and
                           (ii)  not in the Kenedy County Groundwater
  Conservation District; and
                     (B)  in Hidalgo County that is:
                           (i)  described by a metes and bounds
  description in Section 2 of the Act creating this chapter; and
                           (ii)  not in the Kenedy County Groundwater
  Conservation District as of January 1, 2009;
               (4)  the territory in the certificated retail water
  service area of the Jim Hogg County Water Control and Improvement
  District No. 2 as of January 1, 2009;
               (5)  the territory in Jim Hogg County that is outside
  the certificated retail water service area of the Jim Hogg County
  Water Control and Improvement District No. 2 as of January 1, 2009;
  and
               (6)  the territory in Jim Wells County that, as of
  January 1, 2009, is:
                     (A)  outside the corporate limits of the city of
  Alice; and
                     (B)  not in the Kenedy County Groundwater
  Conservation 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, an election under
  this section must be conducted as provided by Sections 36.017(b),
  (c), and (e), 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 an
  ad valorem tax in the district at a rate not to exceed three cents
  for each $100 of assessed valuation."
         (e)  If the majority of voters in a territory described by
  Subsection (a) voting at an election held under this section vote to
  confirm the creation of the district, that territory is included in
  the district. If the majority of voters in a territory described by
  Subsection (a) voting at an election held under this section vote
  not to confirm the creation of the district, that territory is
  excluded from the district.
         (f)  If the majority of voters in any of the territories
  described by Subsection (a) voting at an election held under this
  section vote not to confirm the creation of the district, the
  temporary board or any successor board may hold a subsequent
  confirmation election in that territory.
         (g)  The district may not impose a maintenance tax unless the
  tax is confirmed under this section.
         Sec. 8852.024.  INITIAL PERMANENT DIRECTORS. (a)  If the
  creation of the district is confirmed at an election held under
  Section 8852.023 in one or more territories in the district, each
  temporary director who represents a territory that is included in
  the district becomes an initial permanent director of the district.
         (b)  The initial permanent directors shall draw lots to
  determine which directors serve a term expiring on June 1 of the
  first even-numbered year after the confirmation election and which
  directors serve a term expiring on June 1 of the next even-numbered
  year.
         Sec. 8852.025.  GIFTS AND GRANTS.  The temporary board may
  solicit and accept gifts and grants, including services, on the
  district's behalf from any public or private source to provide
  revenue for the district before a confirmation election is held
  under Section 8852.023.
         Sec. 8852.026.  RIGHT OF CERTAIN LANDOWNERS TO WITHDRAW FROM
  DISTRICT. A person who owns a tract of land in Brooks or Hidalgo
  County that adjoins the boundaries of the Kenedy County Groundwater
  Conservation District as of the effective date of the Act creating
  this chapter may petition the Kenedy County Groundwater
  Conservation District for annexation into that district.
  Notwithstanding any other law, the Kenedy County Groundwater
  Conservation District may annex territory described by a petition
  under this section.  Territory annexed by the Kenedy County
  Groundwater Conservation District under this section not later than
  January 1, 2010, is disannexed at that time from the district
  created by this chapter.
  [Sections 8852.027-8852.050 reserved for expansion]
  SUBCHAPTER C.  BOARD OF DIRECTORS
         Sec. 8852.051.  APPOINTMENT OF DIRECTORS; TERMS.  (a)  Not
  later than June 1 of each even-numbered year, the Commissioners
  Courts of Brooks County, Jim Hogg County, and Jim Wells County shall
  appoint directors as follows:
               (1)  the Commissioners Court of Brooks County shall
  appoint:
                     (A)  one director who represents the municipal
  interests of the territory described by Section 8852.023(a)(1), if
  the territory described by Section 8852.023(a)(1) is included in
  the district; and
                     (B)  two directors who represent the agricultural
  interests of the territory described by Sections 8852.023(a)(3)(A)
  and (B), if the territory described by Sections 8852.023(a)(3)(A)
  and (B) is included in the district;
               (2)  the Commissioners Court of Jim Hogg County shall
  appoint:
                     (A)  one director who represents the interests of
  Jim Hogg County in the territory described by Section
  8852.023(a)(4), if the territory described by Section
  8852.023(a)(4) is included in the district; and
                     (B)  two directors who represent the agricultural
  interests of the territory described by Section 8852.023(a)(5), if
  the territory described by Section 8852.023(a)(5) is included in
  the district;
               (3)  the Commissioners Court of Jim Wells County shall
  appoint:
                     (A)  one director who represents the municipal
  interests of the territory described by Section 8852.023(a)(2), if
  the territory described by Section 8852.023(a)(2) is included in
  the district; and
                     (B)  two directors who represent the agricultural
  interests of the territory described by Section 8852.023(a)(6), if
  the territory described by Section 8852.023(a)(6) is included in
  the district; and
               (4)  the Commissioners Courts of Brooks County and Jim
  Hogg County jointly shall appoint one director to represent the
  industrial and mining interests of Jim Hogg and Brooks Counties.
         (b)  Directors serve staggered four-year terms that expire
  on June 1 of an even-numbered year.
         Sec. 8852.052.  ELIGIBILITY. (a)  A director is not
  disqualified from service because the director is an employee,
  manager, director of the board, or officer of a groundwater
  producer that is or may be regulated by the district.
         (b)  A temporary director whose term of office expires under
  Section 8852.021(d) is not eligible for appointment as a director.
         Sec. 8852.053.  COMPENSATION; REIMBURSEMENT.
  (a)  Notwithstanding Section 36.060, Water Code, a director is not
  entitled to receive compensation for performing the duties of a
  director.
         (b)  A director is entitled to receive reimbursement for the
  director's reasonable expenses incurred while engaging in
  activities on behalf of the district in accordance with Sections
  36.060(b) and (c), Water Code.
         Sec. 8852.054.  VACANCY. A vacancy in the office of director
  shall be filled by appointment of the board in a manner consistent
  with the representational requirements of Section 8852.051. The
  appointed director serves only for the remainder of the unexpired
  term to which the director was appointed.
  [Sections 8852.055-8852.100 reserved for expansion]
  SUBCHAPTER D.  POWERS AND DUTIES
         Sec. 8852.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES.  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. 8852.102.  CONTRACTS. The district may enter into a
  contract with any person, public or private, for any purpose
  authorized by law.
         Sec. 8852.103.  EXEMPTIONS FROM PERMIT REQUIREMENTS.
  (a)  Section 36.117, Water Code, applies to the district except
  that for the purposes of applying that section to the district,
  "domestic use" and "livestock use" have the meanings assigned by
  Subsection (b).
         (b)  In this section:
               (1)  "Domestic use":
                     (A)  means the use of groundwater by an individual
  or a household to support domestic activities, including the use of
  groundwater for:
                           (i)  drinking, washing, or culinary
  purposes;
                           (ii)  irrigating a lawn or a family garden or
  orchard;
                           (iii)  watering domestic animals; or
                           (iv)  water recreation, including aquatic
  and wildlife enjoyment; and
                     (B)  does not include the use of water:
                           (i)  to support an activity for which
  consideration is given or received or for which the product of the
  activity is sold; or
                           (ii)  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 subdivision,
  "livestock" and "exotic livestock" have the meanings assigned by
  Sections 1.003 and 142.001, Agriculture Code, respectively, and
  "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.
         Sec. 8852.104.  EFFECTS OF TRANSFER. (a)  In reviewing a
  proposed transfer of groundwater out of the district in accordance
  with Section 36.122(f), Water Code, the district shall determine
  whether the proposed transfer would have a negative effect on:
               (1)  the availability of water in the district;
               (2)  the conditions of any aquifer that overlies the
  district;
               (3)  subsidence in the district;
               (4)  existing permit holders or other groundwater users
  in the district; and
               (5)  any applicable approved regional water plan or
  certified district management plan.
         (b)  If the district determines under Subsection (a) that the
  transfer would have a negative effect, the district may, in
  addition to the conditions authorized by Section 36.122, Water
  Code, impose other requirements or limitations on the permit that
  are designed to minimize the effect.
         (c)  Sections 36.122(c), (i), and (j), Water Code, do not
  apply to a requirement or limitation imposed under this section.
         (d)  The district may impose a fee or surcharge as an export
  fee. The restrictions under Section 36.122(e), Water Code, do not
  apply to a fee or surcharge imposed under this subsection.
         Sec. 8852.105.  APPLICABILITY OF DISTRICT REGULATIONS.  
  Groundwater regulations adopted by the district under this chapter
  apply to all persons except as exempted under Section 36.117, Water
  Code, or this chapter.
         Sec. 8852.106.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         Sec. 8852.107.  LANDOWNERS' RIGHTS. The rights of
  landowners and their lessees and assigns in groundwater in the
  district are recognized. Nothing in this chapter shall be
  construed to deprive or divest the owners or their lessees and
  assigns of their rights, subject to district rules.
         Sec. 8852.108.  LIMITATION ON RULEMAKING POWER NOT
  APPLICABLE.  Section 36.121, Water Code, does not apply to the
  district.
  [Sections 8852.109-8852.150 reserved for expansion]
  SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
         Sec. 8852.151.  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 impose ad valorem taxes at a rate
  not to exceed three cents on each $100 of assessed valuation of
  taxable property in the district.
         Sec. 8852.152.  GRANTS, GIFTS, AND DONATIONS. The district
  may solicit and accept grants, gifts, and donations from any public
  or private source.
  [Sections 8852.153-8852.200 reserved for expansion]
  SUBCHAPTER F. DISSOLUTION
         Sec. 8852.201.  SUBCHAPTER CUMULATIVE.  The provisions of
  this subchapter are cumulative of the provisions of Subchapter I,
  Chapter 36, Water Code.
         Sec. 8852.202.  DISSOLUTION BY ELECTION. (a)  After January
  1, 2016, the board shall order an election on the question of
  dissolving the district if the board receives a petition requesting
  that an election be held for that purpose that is signed by at least
  15 percent of the district's registered voters.
         (b)  Not later than the 30th day after the date the board
  receives the petition, the directors shall:
               (1)  validate the signatures on the petition; and
               (2)  if the signatures are validated, order an election
  on the next uniform election date under Section 41.001, Election
  Code.
         (c)  The order calling the election must state the nature of
  the election, including the proposition that is to appear on the
  ballot.
         Sec. 8852.203.  NOTICE OF ELECTION. Notice of an election
  under this subchapter must be provided by posting a copy of the
  order calling the election in at least one conspicuous place for at
  least 10 days before the day of the election at the county
  courthouse in Brooks County, Jim Hogg County, Jim Wells County, and
  Hidalgo County.
         Sec. 8852.204.  BALLOT. The ballot for an election under
  this subchapter must be printed to permit voting for or against the
  proposition: "The dissolution of the Brush Country Groundwater
  Conservation District."
         Sec. 8852.205.  ELECTION RESULTS; DISPOSITION OF ASSETS. If
  a majority of the votes in an election under this subchapter favor
  dissolution:
               (1)  the board shall find that the district is
  dissolved; and
               (2)  Section 36.310, Water Code, applies for the
  purpose of disposition of the district's assets.
         SECTION 2.  The Brush Country Groundwater Conservation
  District initially includes all the territory contained in the
  following area:
         (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 the effective date of
  this Act, are located within the Kenedy County Groundwater
  Conservation District;
         (c)  all real property in Jim Wells County save and except
  all of those portions of Jim Wells County that, as of January 1,
  2009, are located within the Kenedy County Groundwater Conservation
  District; and
         (d)  all real property in Hidalgo County contained in the
  following described area:
         10,953.38 acres of land, more or less, out of the 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
  its recommendations relating to this Act with the governor,
  lieutenant governor, and 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 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.
 
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