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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of the North Texas Groundwater |
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Conservation District; providing authority to issue bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle H, Title 6, Special District Local Laws |
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Code, is amended by adding Chapter 8856 to read as follows: |
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CHAPTER 8856. NORTH TEXAS GROUNDWATER CONSERVATION DISTRICT |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 8856.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the board of directors of the |
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district. |
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(2) "Director" means a member of the board. |
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(3) "District" means the North Texas Groundwater |
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Conservation District. |
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Sec. 8856.002. NATURE OF DISTRICT; FINDINGS. (a) The |
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district is a groundwater conservation district in Collin, Cooke, |
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and Denton Counties created under and essential to accomplish the |
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purposes of Section 59, Article XVI, Texas Constitution. |
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(b) The district is created to serve a public use and |
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benefit. |
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(c) All of the land and other property included within the |
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boundaries of the district will be benefited by the works and |
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projects that are to be accomplished by the district under powers |
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conferred by this chapter and by Chapter 36, Water Code. |
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(d) Any fees imposed by the district under this chapter are |
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necessary to pay for the costs of accomplishing the purposes of the |
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district, including the conservation and management of groundwater |
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resources, as provided by this chapter and Section 59, Article XVI, |
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Texas Constitution. |
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Sec. 8856.003. PUBLIC HEARING IN EACH COUNTY. (a) Not |
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later than December 1, 2009, the commissioners court of each county |
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in the district shall hold a public hearing on the topic of |
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including the territory of the county in the district. |
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(b) After the public hearings and not later than December |
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31, 2009, the commissioners court of each county shall vote to |
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confirm or reject the county's inclusion in the district. The |
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commissioners court shall adopt a resolution reflecting the result |
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of that vote and provide a copy of the resolution to the temporary |
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directors. |
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Sec. 8856.004. CONFIRMATION REQUIRED. (a) The creation of |
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the district is confirmed only if the commissioners courts of two or |
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more of the counties in the district submit a resolution confirming |
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the county's inclusion in the district to the temporary board. If |
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the commissioners court of a county does not submit a resolution |
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confirming the county's inclusion in the district to the temporary |
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board, that county is not included in the district. The temporary |
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board shall provide a copy of the resolutions and the final district |
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boundaries to the Texas Commission on Environmental Quality. |
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(b) If the creation of the district is not confirmed as |
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provided by Subsection (a) before January 1, 2010: |
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(1) the district is dissolved on January 1, 2010, |
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except that: |
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(A) any debts incurred shall be paid; |
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(B) any assets that remain after the payment of |
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debts shall be transferred in equal amounts to Collin, Cooke, and |
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Denton Counties; and |
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(C) the organization of the district shall be |
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maintained until all debts are paid and remaining assets are |
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transferred; and |
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(2) this chapter expires September 1, 2011. |
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Sec. 8856.005. INITIAL DISTRICT TERRITORY. The initial |
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boundaries of the district are coextensive with the boundaries of |
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Collin, Cooke, and Denton Counties. |
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Sec. 8856.006. APPLICABILITY OF OTHER GROUNDWATER |
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CONSERVATION DISTRICT LAW. Except as otherwise provided by this |
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chapter, Chapter 36, Water Code, applies to the district. |
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Sec. 8856.007. CONSTRUCTION OF CHAPTER. This chapter shall |
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be liberally construed to achieve the legislative intent and |
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purposes of Chapter 36, Water Code. A power granted by Chapter 36, |
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Water Code, or this chapter shall be broadly interpreted to achieve |
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that intent and those purposes. |
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[Sections 8856.008-8856.020 reserved for expansion] |
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SUBCHAPTER A-1. TEMPORARY PROVISIONS |
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Sec. 8856.021. APPOINTMENT OF TEMPORARY DIRECTORS. |
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(a) The district is initially governed by a board of nine |
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temporary directors appointed as provided by Sections 8856.051(b) |
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and (d). |
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(b) Temporary directors shall be appointed not later than |
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the 90th day after the effective date of the Act enacting this |
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chapter. If after the 90th day fewer than nine temporary directors |
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have been appointed, each unfilled position shall be considered a |
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vacancy and filled in accordance with Subsection (c). |
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(c) If a vacancy occurs on the temporary board, the |
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remaining temporary directors shall appoint a person to fill the |
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vacancy in a manner that meets the representational requirements of |
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this section. |
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(d) To be eligible to serve as a temporary director, a |
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person must be a registered voter in the appointing county. |
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(e) Each temporary director must qualify to serve as a |
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director in the manner provided by Section 36.055, Water Code. |
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(f) Temporary directors serve until the earlier of: |
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(1) the time the temporary directors become the |
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initial permanent directors under Section 8856.023; or |
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(2) the date this chapter expires under Section |
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8856.004. |
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Sec. 8856.022. ORGANIZATIONAL MEETING OF TEMPORARY |
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DIRECTORS. As soon as practicable after all the temporary |
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directors have qualified under Section 36.055, Water Code, a |
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majority of the temporary directors shall convene the |
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organizational meeting of the district at a location in the |
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district agreeable to a majority of the directors. If an agreement |
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on location cannot be reached, the organizational meeting shall be |
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at the Pilot Point High School in Denton County. |
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Sec. 8856.023. INITIAL PERMANENT DIRECTORS; INITIAL TERMS. |
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(a) If the creation of the district is confirmed under Section |
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8856.004, the temporary directors from the counties that are |
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included in the district become the initial permanent directors. |
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(b) If the Commissioners Courts of Collin, Cooke, and Denton |
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Counties confirm the inclusion of those counties in the district, |
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the three directors appointed from each county shall draw lots as |
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follows to determine: |
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(1) for Denton and Cooke Counties, which director's |
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term expires June 1, 2011, and which two directors' terms expire |
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June 1, 2013; and |
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(2) for Collin County, which two directors' terms |
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expire June 1, 2011, and which director's term expires June 1, 2013. |
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(c) If the commissioners courts of only two of the counties |
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confirm the inclusion of those counties in the district, the three |
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directors appointed from each county shall draw lots as follows to |
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determine: |
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(1) for the first county to confirm, which director's |
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term expires June 1, 2011, and which two directors' terms expire |
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June 1, 2013; and |
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(2) for the second county to confirm, which two |
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directors' terms expire June 1, 2011, and which director's term |
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expires June 1, 2013. |
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Sec. 8856.024. EXPIRATION OF SUBCHAPTER. This subchapter |
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expires September 1, 2011. |
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[Sections 8856.025-8856.050 reserved for expansion] |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 8856.051. GOVERNING BODY; TERMS. (a) The district is |
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governed by a board of six or nine directors appointed as provided |
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by this section. |
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(b) If the Commissioners Courts of Collin, Cooke, and Denton |
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Counties confirm the inclusion of those counties in the district, |
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nine directors shall be appointed as follows: |
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(1) the Collin County Commissioners Court shall |
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appoint three directors; |
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(2) the Cooke County Commissioners Court shall appoint |
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three directors; and |
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(3) the Denton County Commissioners Court shall |
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appoint three directors. |
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(c) If the commissioners courts of only two of the counties |
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confirm the inclusion of those counties in the district, the |
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commissioners court of each of those counties shall appoint three |
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directors. |
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(d) The commissioners court of each appointing county shall |
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appoint two of the three directors from that county as follows: |
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(1) one director from a slate of not more than three |
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nominees submitted by the largest municipal groundwater producer in |
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the county; and |
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(2) one director from a slate of not more than three |
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nominees submitted by the other groundwater producers in that |
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county. |
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(e) Directors serve staggered four-year terms, with the |
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term of one or two directors from each appointing county expiring on |
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June 1 of each odd-numbered year. |
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(f) A director may serve multiple consecutive terms. |
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(g) A position on the board may not be construed to be a |
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civil office of emolument for any purpose, including a purpose |
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described by Section 40, Article XVI, Texas Constitution. |
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(h) A person who qualifies to serve on the board may serve as |
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a director and participate in all votes relating to the business of |
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the district regardless of any common law doctrine of |
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incompatibility. Section 36.051, Water Code, does not apply to the |
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district. |
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Sec. 8856.052. DIRECTOR ELIGIBILITY; QUALIFICATION. |
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(a) To be eligible to serve as a director, a person must be a |
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registered voter in the appointing county. |
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(b) Each director must qualify to serve in the manner |
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provided by Section 36.055, Water Code. |
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Sec. 8856.053. VACANCIES. If a vacancy occurs on the board, |
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the commissioners court that appointed the director who vacated the |
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office shall appoint a person to fill the vacancy in a manner that |
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meets the representational requirements of Section 8856.051. |
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Sec. 8856.054. COMPENSATION; REIMBURSEMENT. |
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(a) Notwithstanding Sections 36.060(a) and (d), Water Code, a |
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director may not receive compensation for performing the duties of |
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director. |
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(b) A director is entitled to reimbursement of actual |
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expenses reasonably and necessarily incurred while engaging in |
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activities on behalf of the district. |
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Sec. 8856.055. BOARD CHAIR. The board shall select one of |
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its members to serve as the chair for a two-year term. The position |
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of chair must rotate among the counties in the district every two |
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years in alphabetical order by county. |
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[Sections 8856.056-8856.100 reserved for expansion] |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 8856.101. GROUNDWATER CONSERVATION DISTRICT POWERS |
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AND DUTIES. Except as provided by this chapter, the district has |
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the powers and duties provided by the general law of this state, |
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including Chapter 36, Water Code, applicable to groundwater |
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conservation districts created under Section 59, Article XVI, Texas |
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Constitution. |
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Sec. 8856.102. CONTRACTS. The district may enter into a |
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contract with any person, public or private, for any purpose |
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authorized by law. |
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Sec. 8856.103. APPLICABILITY OF DISTRICT REGULATIONS. |
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Groundwater regulation under this chapter applies to all persons |
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except as exempted from the requirement to obtain a permit for a |
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well under Section 36.117, Water Code, or this chapter. |
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Sec. 8856.104. WELL SPACING RULES; EXEMPTIONS. (a) Except |
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as provided by Subsection (b), the district shall exempt from the |
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well spacing requirements adopted by the district any well that is |
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completed on or before the effective date of those requirements. |
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(b) The district may provide by rule that a well may lose its |
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exemption under this section if the well is modified in a manner |
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that substantially increases the capacity of the well after the |
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effective date of the well spacing requirements adopted by the |
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district. |
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(c) Except as provided by this section and notwithstanding |
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Section 8856.103, the district may require any well or class of |
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wells exempt from permitting under Chapter 36, Water Code, to |
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comply with the well spacing requirements adopted by the district. |
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The district shall apply well spacing requirements uniformly to any |
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well or class of wells based on the size or capacity of the well and |
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without regard to the type of use of the groundwater produced by the |
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well. |
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Sec. 8856.105. REGISTRATION AND REPORTING REQUIREMENTS FOR |
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CERTAIN EXEMPT WELLS. The district may adopt rules that require the |
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owner or operator of a well or class of wells exempt from permitting |
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under Section 36.117, Water Code, to register the well with the |
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district and, except for a well exempt from permitting under |
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Subsection (b)(1) of that section, to report groundwater |
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withdrawals from the well using reasonable and appropriate |
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reporting methods and frequency. |
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Sec. 8856.106. ENFORCEMENT. (a) The district may enforce |
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this chapter in the manner provided by Chapter 36, Water Code. In |
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lieu of a remedy available to the district under Section 36.102, |
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Water Code, or in addition to those remedies, the district may |
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impose a fee in addition to a fee assessed under Section 8856.152 on |
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a person producing groundwater in violation of a rule of the |
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district, including the failure or refusal to comply with any order |
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or rule of the district to reduce or cease groundwater usage. The |
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purpose of a fee authorized under this subsection is to serve as a |
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disincentive to producing groundwater except as authorized by the |
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district. |
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(b) A fee imposed under Subsection (a) may not exceed an |
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amount equal to 10 times the amount of a fee assessed under Section |
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8856.152. |
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Sec. 8856.107. NO EMINENT DOMAIN POWER. The district may |
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not exercise the power of eminent domain. |
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[Sections 8856.108-8856.150 reserved for expansion] |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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Sec. 8856.151. TAXES PROHIBITED. The district may not |
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impose a tax. Sections 36.020(a) and 36.201-36.204, Water Code, do |
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not apply to the district. |
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Sec. 8856.152. DISTRICT REVENUES. (a) The district by |
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rule, resolution, or order may establish, amend, pledge, encumber, |
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expend the proceeds from, and assess to any person production fees |
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based on the amount of groundwater authorized by permit to be |
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withdrawn from a well or on the amount of water actually withdrawn, |
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to enable the district to fulfill its purposes and regulatory |
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functions as provided by this chapter. The district may use |
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revenues generated by fees it assesses for any lawful purpose. |
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(b) Notwithstanding any provision of general law to the |
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contrary, a fee authorized by Subsection (a) may not exceed: |
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(1) $1 per acre-foot annually for groundwater used for |
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agricultural purposes; or |
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(2) 30 cents per thousand gallons annually for |
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groundwater used for nonagricultural purposes. |
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(c) Notwithstanding any provision of general law or this |
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chapter to the contrary, if any, the district may assess a |
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production fee under this section for groundwater produced from a |
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well or class of wells exempt from permitting under Section 36.117, |
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Water Code, except for a well exempted under Subsection (b)(1) of |
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that section. A production fee assessed by the district under this |
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subsection must be based on the amount of groundwater actually |
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withdrawn from the well and may not exceed the amount established by |
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the district for permitted uses under Subsection (b)(2) of this |
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section. |
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(d) Notwithstanding Section 36.1071(f), Water Code, the |
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district by rule, resolution, or order before the adoption of its |
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management plan may: |
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(1) establish, assess, and enforce the collection of |
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production fees under this section; and |
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(2) establish and enforce metering and reporting |
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requirements, except for a well exempt from permitting under |
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Section 36.117(b)(1), Water Code. |
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(e) The district by rule may establish a temporary or |
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permanent discounted fee rate for persons who prepay production |
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fees to the district under this section on or before the dates |
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established by district rule. |
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(f) The district may not charge an export fee to a producer |
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of groundwater withdrawn from a well in the district who |
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distributes the water to any part of the territory under the |
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provider's certificate of public convenience and necessity even if |
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the territory is outside the district's boundaries. |
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SECTION 2. (a) The legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor has submitted the notice and Act to the |
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Texas Commission on Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, |
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lieutenant governor, and speaker of the house of representatives |
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within the required time. |
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(d) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act are fulfilled |
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and accomplished. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |