By: Seliger S.B. No. 956

(In the Senate - Filed February 25, 2011; March 8, 2011, read first time and referred to Committee on Natural Resources; April 26, 2011, reported adversely, with favorable Committee Substitute by the following vote: Yeas 7, Nays 0; April 26, 2011, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 956 By: Seliger

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Northern Dallam County 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 8853 to read as follows:

CHAPTER 8853. NORTHERN DALLAM COUNTY GROUNDWATER

CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8853.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Northern Dallam County Groundwater Conservation District.

Sec. 8853.002. 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. 8853.003. LEGISLATIVE FINDINGS. (a) The district is created to serve a public use and benefit.

(b) All land and other property in the district will benefit from the works and projects that are to be accomplished by the district under this chapter.

(c) Any fees imposed by the district are necessary to pay for the costs of accomplishing district purposes, including the conservation and management of groundwater resources, as provided by this chapter and Section 59, Article XVI, Texas Constitution.

Sec. 8853.004. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act enacting this chapter, except that the territory does not include any territory that was added to the North Plains Groundwater Conservation District before the effective date of the Act enacting this chapter.

(b) The boundaries and field notes contained in Section 2 of the Act enacting this chapter form a closure. A mistake made in the field notes or in copying the field notes 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 a tax; or

(4) legality or operation.

[Sections 8853.005-8853.020 reserved for expansion]

SUBCHAPTER A-1. TEMPORARY PROVISIONS

Sec. 8853.021. APPOINTMENT OF TEMPORARY DIRECTORS. (a) Not later than the 30th day after the effective date of this chapter, the Dallam County Commissioners Court shall appoint six temporary directors to represent the district at large.

(b) To be eligible to serve as a temporary director, a person must be a registered voter in Dallam County.

(c) Temporary directors serve until the date initial directors are elected under Section 8853.023.

Sec. 8853.022. 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 in the district agreeable to a majority of the directors. If an agreement on location cannot be reached, the organizational meeting shall be at the Dallam County Courthouse.

Sec. 8853.023. INITIAL DIRECTORS' ELECTION. (a) The temporary directors shall hold an election to elect the initial directors of the district.

(b) The temporary directors shall have placed on the ballot the names of all candidates for an initial director's position who have filed an application for a place on the ballot as provided by Section 52.003, Election Code.

(c) Section 41.001(a), Election Code, does not apply to an election held under this section.

(d) Except as provided by this section, an election under this section must be conducted as provided by Sections 36.017(b)-(i), Water Code, and the Election Code. The provision of Section 36.017(d), Water Code, relating to the election of permanent directors does not apply to an election under this section.

Sec. 8853.024. INITIAL DIRECTORS. (a) The six initial directors of the district serve on the board until permanent directors are elected under Section 8853.055. The six initial directors shall be elected from the district at large.

(b) The six initial directors shall draw lots to determine which three directors serve a term expiring June 1 following the first regularly scheduled election of directors under Section 8853.055 and which three directors serve a term expiring June 1 following the second regularly scheduled election of directors.

Sec. 8853.025. EXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2012.

[Sections 8853.026-8853.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8853.051. DIRECTORS; TERMS. (a) The district is governed by a board of six directors.

(b) Directors serve staggered four-year terms, with two or three directors' terms expiring June 1 of each even-numbered year.

(c) A director may serve not more than two consecutive terms. A director may serve a third or subsequent term if the director has not served in the preceding four years.

Sec. 8853.052. METHOD OF ELECTING DIRECTORS. The directors of the district are elected as follows:

(1) three directors from Area A, as described by Section 2 of the Act enacting this chapter; and

(2) three directors from Areas B and C, as described by Section 2 of the Act enacting this chapter.

Sec. 8853.053. ADDITIONAL ELIGIBILITY TO VOTE FOR PROPERTY OWNERS. A person who owns property in the district is not required to reside in the territory of the district as required by Section 11.001(a)(2), Election Code, to be eligible to vote in a district election.

Sec. 8853.054. DIRECTOR ELIGIBILITY; QUALIFICATION. (a) To be eligible to serve as a director a person must be:

(1) a registered voter; or

(2) a property owner in the area described by Section 2 of the Act enacting this chapter that the person seeks to represent.

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

Sec. 8853.055. ELECTION DATE. The district shall hold an election to elect the appropriate number of directors on the uniform election date prescribed by Section 41.001, Election Code, in May of each even-numbered year.

Sec. 8853.056. VACANCIES. If a vacancy occurs on the board, the Commissioners Court of Dallam County shall appoint a person who is qualified under Section 8853.054 to fill the vacancy for the unexpired term.

Sec. 8853.057. COMPENSATION. (a) Sections 36.060(a), (b), and (d), Water Code, do not apply to the district.

(b) A director is entitled to receive compensation of not more than $50 a day for each day the director performs the duties of a director. The compensation may not exceed $3,000 a year.

(c) A director is entitled to receive reimbursement for the director's reasonable expenses incurred while engaging in activities on behalf of the district.

[Sections 8853.058-8853.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8853.101. 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, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution.

Sec. 8853.102. APPLICABILITY OF DISTRICT RULES REGULATING GROUNDWATER. District rules regulating groundwater adopted under this chapter apply to all persons except as exempted under Section 36.117, Water Code, or this chapter.

Sec. 8853.103. CONTRACTS. The district may contract with any person, public or private, for any district purpose.

Sec. 8853.104. REGISTRATION AND REPORTING REQUIREMENTS FOR CERTAIN EXEMPT WELLS. The district may adopt rules that require the owner or operator of a well or class of wells exempt from permitting under Section 36.117, Water Code, to register the well with the district and, except for a well exempt from permitting under Section 36.117(b)(1), to report groundwater withdrawals from the well using reasonable and appropriate reporting methods and frequency.

Sec. 8853.105. PROHIBITION ON DISTRICT PURCHASE, SALE, TRANSPORT, OR DISTRIBUTION OF WATER. The district may not purchase, sell, transport, or distribute surface water or groundwater for any purpose.

Sec. 8853.106. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain.

Sec. 8853.107. ENFORCEMENT. (a) The district may enforce this chapter as provided by Chapter 36, Water Code, and this section.

(b) In addition to or instead of a remedy under Chapter 36, the district may impose an additional fee under Section 8853.151 on a person producing groundwater in violation of a district rule or order, including the failure or refusal to comply with a rule or order to reduce or cease groundwater usage.

(c) The fee imposed may not exceed an amount equal to 10 times the amount of a fee imposed under Section 8853.151.

[Sections 8853.108-8853.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8853.151. FEES. (a) The board by rule may impose reasonable fees on each well:

(1) for which a permit is issued by the district; and

(2) that is not exempt from district regulation.

(b) A production fee may be based on:

(1) the size of column pipe used by the well; or

(2) the amount of water actually withdrawn from the well, or the amount authorized or anticipated to be withdrawn.

(c) The board shall base the initial production fee on the criteria listed in Subsection (b)(2). The initial production fee:

(1) may not exceed:

(A) $1 per acre-foot for water used for agricultural irrigation; or

(B) 4.25 cents per thousand gallons for water used for any other purpose; and

(2) may be increased at a cumulative rate not to exceed three percent per year.

(d) In addition to the production fee authorized under this section, the district may assess an export fee on groundwater from a well that is produced for transport outside the district.

(e) Fees authorized by this section may be:

(1) assessed annually;

(2) used to pay the cost of district operations; and

(3) used for any other purpose allowed under Chapter 36, Water Code.

Sec. 8853.152. BOND DEBT LIMIT. The total debt created by the issuance of bonds and notes by the district under Subchapter F, Chapter 36, Water Code, may not exceed $500,000 at any time.

[Sections 8853.153-8853.200 reserved for expansion]

SUBCHAPTER E. LANDOWNER OPTION TO JOIN DISTRICT

Sec. 8853.201. APPLICABILITY OF SUBCHAPTER. This subchapter applies to a landowner who owns land that includes a portion of the boundary between the North Plains Groundwater Conservation District and the district.

Sec. 8853.202. PETITION. (a) Not later than the first anniversary of the effective date of the Act creating this chapter, a landowner may petition the Texas Commission on Environmental Quality to remove the land from the North Plains Groundwater Conservation District and add the land to the district.

(b) The Texas Commission on Environmental Quality shall grant the petition.

Sec. 8853.203. EXPIRATION OF SUBCHAPTER. This subchapter expires on the first anniversary of the effective date of the Act creating this chapter.

SECTION 2. Except as provided by Subchapter E, Chapter 8853, Special District Local Laws Code, as added by this Act, the Northern Dallam County Groundwater Conservation District initially includes all the territory contained in the following area:

AREA A

Beginning at the northwest corner of Dallam County, Texas, which point is also the northwest corner of the Panhandle, State of Texas, and a point in the east boundary line of the State of New Mexico;

Thence eastward along the north boundary line of Dallam county, Texas, and the south boundary line of Cimarron County, Oklahoma, to a point on said boundary line which is the northeast corner of Section 2, Block No. 17,C. S. S. Survey;

Thence south along the east section line Sections 2, 5 and 20, to a point in the southeast corner of Section 20, Block No. 17, C. S. S. Survey;

Thence west along the south section line of Sections 20 and 21, to the southwest corner of Section 21, Block No. 17, C. S. S. Survey, continuing west on the south section lines of Sections 18, 17, 16, 15, 14 and 13, of Block No. 1, F.D.W. Subdivision;

Thence north approximately 0.8 miles along the east section line of Fractional Sections 27 B and 27, to a point in Fractional Section 27, of the M. E. Hays Subdivision;

Thence west to a point on the east section line of Section 25 approximately 0.8 miles north of the southeast corner of Section 25, M. E. Hays Subdivision;

Thence south along the east section line of Section 25, to the southeast corner of section 25, of the M.E. Hays Subdivision;

Thence west along the south section line of Section 25, to the southwest corner of Section 25 of the M.E. Hays Subdivision;

Thence south along the east section line of Section 33, to the southeast corner of Section 33 of the M.E. Hay Subdivision;

Thence west along the south section line of Section 33 to the southeast corner of Section 32 all in the M.E. Hays;

Thence south along the east section line of Sections 41, 50, 59, 68, 75, 82, 88 and Fractional Section 93, to the southeast corner of Fractional Section 93, all in the M. E. Hays Subdivision, said line being also the north boundary line of the Block No. 7 C. S. S. Survey;

Thence east along the boundary line of the M. E. Hays Subdivision and Block No. 7, C. S. S. Survey, to the northeast corner of Section 79, which point is also the northwest corner of Section 80, both sections being in Block No.7, C. S. S. Survey;

Thence south along the east section line of Section 79 to the southeast corner of the Section 79 of Block No. 7, C. S. S. Survey;

Thence east along the north section line of Section 62 to the northeast corner of Section 62, of Block No. 7, C. S. S. Survey;

Thence south along the east section line of Section 62, to the southwest corner of Section 60, Block No. 7, C. S. S. Survey;

Thence northwest along the east section line of Section 59 and 58, to the northeast corner of Section 58, all in Block No. 7, C. S. S. Survey;

Thence west along the north section line of Sections 58, 57, 56, 55, 54, 53, 52, 51, to a point on the northwest corner of Section 51, all in Block No. 7, C. S. S. Survey;

Thence north along said state line to the northwest corner of Dallam County, Texas, the point of the beginning of this survey.

AREA B

Beginning at the northeast corner of Section 13, Block 18, C. S. S. Survey which point is also the most southerly west corner of Section 16, Block M-27, T. C. R.R. Co Survey;

Thence west along the north section line of Sections 13, 12, 11, 10, 9, 8 and 7 to the northwest corner of Section 7, all in Block 18, C. S. S. Survey;

Thence south along the west section line of Sections 7 and 20, to the southwest corner of Section 20 all in Block 18, C. S. S. Survey;

Thence east along the south section line of Sections 20 and 19 to the southeast corner of Section 19, all in Block 18, C. S. S. Survey;

Thence south along the west section line of Section 35, to the northeast corner of Section 35, of Block 18, C. S. S. Survey;

Thence west along the north section line of Sections 45 and 46, to the northwest corner of Section 46, of Block 18, C. S. S. Survey;

Thence south along the west section line of Section 46 to the southwest corner of Section 46, of Block 18, C. S. S. Survey;

Thence east along the south section line of Sections 46, 45 and 44, to the southeast corner of Section 44, all in Block 18, C. S. S. Survey;

Thence south along the west section line of Section 62, to the southwest corner of Section 62, of Block 18, C. S. S. Survey,

Thence east along the south section line of Sections 62, 63 and Fractional Sections 64 and 65, to the southeast corner of Fractional Section 65, all in Block 18, C. S. S. Survey;

Thence north along the boundary line of Block 18, C. S. S. Survey and Block M-27, T. C. R.R. Co Survey, to the west section line of Section 1, Block M-27, T. C. R.R. Co. Survey, said point being the northeast corner Section 13 of Block 18, C. S. S. Survey, the point of the beginning of this survey.

AREA C

Beginning at a point which is the southeast corner of Section 159, which point is also the northeast corner of Section 184 all in Block No. 1-T, T. & N. O. RR. Co Survey;

Thence west along the south section line of Sections 159, 158, 157, 156 and 155 in Block No. 1-T, T. & N. O. RR. Co Survey, and continuing west along the south section line of Sections 7 and 8 to the southwest corner of Section 8, in Block No. 1, I. & G. N. RR. Co Survey,

Thence north along the west section line of Section 8 to the northwest corner of Section 8 in Block No. 1, I. & G. N. RR. Co Survey;

Thence west along the south section line of Sections 94 and 93 to the southwest corner of Section 93 in Block No. 47 1/2, H. T. C. RR. Co. Survey,

Thence north along the west section line of Section 93 to the northwest corner of Section 93 in Block No. 47 1/2, H. & T. C. RR. Co. Survey;

Thence west along the south section line of Sections 97 and 98 to the southwest corner of Section 98 in Block No. 47 1/2, H. & T. C. RR. Co. Survey;

Thence north along the west section line of Section 98 to the northwest corner of Section 98 in Block No. 47 1/2, H. & T. C. RR. Co. Survey;

Thence west along the south section line of Sections 104 and 103 to the southwest corner of Section 103, which point is also the northeast corner of section 101, all in Block No. 47 1/2, H. & T. C. RR. Co. Survey

Thence south along the east section line of sections 101, 88, 87, 74, 63, 50, 39, 25, 16 and 5 of Block No. 47 1/2, H. & T. C. RR. Co. Survey and continuing south along the east section line of sections 1, 8, and 9 of Block 1, B. S. & F. Survey to the southeast corner of section 9, Block 1, B. S. & F. Survey;

Thence west along the south section line of section 9 and continuing west along the south section line of sections 21, 20, and 19, to the southwest corner of section 19, all in Block 1, Brooks & Burleson Survey;

Thence north along the west section line of section 19 to the northwest corner of section 19 all in the Block 1, Brooks & Burleson Survey;

Thence west along the south section line of sections 13 and 14 to the southwest corner of section 14 all in Block 1, Brooks & Burleson Survey;

Thence north along the west section line of section 14 to the northwest corner of section 14 of Block 1, Brooks & Burleson Survey;

Thence west along the south section line of section 1 to the southwest corner of section 1 of Block 1, Brooks & Burleson Survey;

Thence south along the east section line of sections 3, 15, 28 and 29 to the southeast corner of section 29 all in Block 1, Brooks & Burleson Survey;

Thence west along the south section line of section 29 of Block 1, Brooks & Burleson Survey and along the south line of D B Hill Survey, to the northeast corner of section 31 of Block 1, C. S. S. Survey;

Thence south along the east section line of section 31 to the southeast corner of section 31 of Block 1, C. S. S. Survey;

Thence east along the north section line of section 25 to the northeast corner of section 25 of Block 1, C. S. S. Survey;

Thence south along the east section line of section 25 to the southeast corner of section 25 of Block 1, C. S. S. Survey;

Thence east along the north section line of sections 21 and 22 of Block 1, C. S. S. Survey and continuing east along the north section line of Section 7 of Block Z, O K Mapes Survey and continuing east along the north section line of sections 47, 46, 45 and 44 of Block 1, Brooks & Burleson Survey to the northeast corner of section 44 of Block 1, Brooks & Burleson Survey;

Thence north along the west section line of section 19 to the northwest corner of section 19 of Block 1. B. S. & F. Survey;

Thence east along the north section line of sections 19 and 20 of Block 1, B. S. & F. Survey and continuing east along the north section line of sections 6, 5 and 4 of Block SUB, W. H. Pardue Survey also being a common point with the northwest corner of Section 7 of Block 1 A, C. T. R. R. Survey;

Thence south along the west section line of Sections 7 and 6 to the southwest corner of Section 6 of block 1 A, C. T. R. R. Survey;

Thence east along the south section line of section 6 to the southeast corner of Section 6 of Block 1 A, C. T. R. R. Survey;

Thence south along the west section line of Sections 4, and 1 of Block 1, A, C. T. R. R. Survey and continuing south along the west section line of Section 1A, J. A. Ritchey Survey to the southwest corner of section 1A, J. A. Ritchey Survey;

Thence east along the south section line of Section 1A, J. A. Ritchey Survey and continuing east along the south line of Section 2 of the S. Clark Survey to the southeast corner of Section 2 of the S. Clark Survey;

Thence north along the east section line of Section 2, S. Clark Survey to a point this line intersects with the south section line of section 1 of Block 7T, T. N. O. R. R. Survey;

Thence east along the south section line of Section 1 to the southeast corner of Section 1 of Block 7T, T. N. O. R. R. Survey;

Thence north along the east section line of Section 1, 4, 5 and 8 to the northeast corner of Section 8 of Block 7T, T. N. O. R. R. Survey, also being a common point with the northwest corner of Section 393 of Block 1T, T. & N. O. R. R. Survey;

Thence east along the north section line of Sections 393, 394, 395, 396 and 397 of Block 1T, T. & N. O. R. R. Survey until this line intersects with the common section of Dallam County and Sherman County in Texas;

Thence north along the east boundary of Dallam County which line is also the west boundary of Sherman County to a point which is the southeast corner of Section 159, in Block No. 1-T, T. & N. O. RR. Co Survey, the point of the beginning of this survey.

SECTION 3. As soon as practicable, the North Plains Groundwater Conservation District shall submit a metes and bounds description of the territory described by Section 2 of this Act that has been added to the North Plains Groundwater Conservation District before the effective date of this Act to the:

(1) Northern Dallam County Groundwater Conservation District; and

(2) Texas Commission on Environmental Quality.

SECTION 4. (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 5. 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, 2011.

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