By: Nevárez H.B. No. 4123
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  Relating to the creation of the Val Verde County Groundwater
  Conservation District; providing authority to impose fees and
  taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  CREATION. A groundwater conservation district,
  to be known as the Val Verde County Groundwater Conservation
  District, is created in Val Verde County, subject to approval at a
  confirmation election under Section 7 of this Act.
         SECTION 2.  FINDINGS OF BENEFIT. (a) The district is created
  to serve a public use and benefit.
         (b)  The district is created under and is essential to
  accomplish the purposes of Section 59, Article XVI, Texas
  Constitution.
         (c)  All of the land and other property included within the
  boundaries of the district will be benefited by the works and
  projects that are to be accomplished by the district under powers
  conferred by Section 59, Article XVI, Texas Constitution.
         SECTION 3.  CONTINUTING PROVISIONS OF DISTRICT. Subtitle H,
  Title 6, Special District Local Laws Code, is amended by adding
  Chapter 01 to read as follows:
  CHAPTER 01. VAL VERDE COUNTY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 01.001  DEFINITIONS. In this chapter:
         (1)  "Agricultural use" means any use or activity involving
  agriculture, including irrigation.
         (2)  "Agriculture" means any of the following activities:
               (A)  cultivating the soil to produce crops for human
  food, animal feed, or planting seed or for the production of fibers;
               (B)  the practice of floriculture viticulture,
  silviculture, and horticulture, including the cultivation of
  plants in containers of nonsoil media, by a nursery grower;
               (C)  raising, feeding, or keeping animals, other than
  fish, for breeding purposes or for the production of food or fiber,
  leather, pelts, or other tangible products having a commercial
  value;
               (D)  planting cover crops, including cover crops
  cultivated for transplantation, or leaving land idle for the
  purpose of participating in any governmental program or normal crop
  or livestock rotation procedure;
               (E)  wildlife management, including hunting, fishing,
  sightseeing, bird watching and other outdoor recreational
  activities; and
               (F)  raising or keeping equine animals.
         (3)  "Board" means the board of directors of the district.
         (4)  "Director" means a member of the board.
         (5)  "District" means the Val Verde County Groundwater
  Conservation District.
         (6)  "Domestic use" means use in the district of water by a
  person owning the well from which the water is withdrawn and by that
  person's household, employees, tenants, licensees or guests for:
               (A)  drinking, washing, or culinary purposes;
               (B)  irrigation of lawns;
               (C)  irrigation of a family garden or orchard the
  produce of which is for household consumption only;
               (D)  swimming pools, decorative ponds, or fountains on
  the person's property or;
               (E)  watering of domestic animals not raised,
  maintained, or sold for commercial purposes.
         (7)  "Greatest water usage" means the highest sum for a given
  calendar year of: (i) groundwater produced; and (ii) water used
  pursuant to a water right as defined in Section 11.002(5), Water
  Code.
         (7)  "Political subdivision" means a county, municipality,
  or other body politic or corporate of the state, including a
  district or authority created under Section 52, Article III, or
  Section 59, Article XVI, Texas Constitution, a state agency, or a
  nonprofit water supply corporation created under Chapter 67, Water
  Code.
         (8)  "Retail public utility" means an entity defined in
  Section 13.002(19), Water Code.
         (9)  "Del Rio Certificate of Adjudication" means the
  Certificate of Adjudication No.  23-2672 issued by the Texas Water
  Commission to the City of Del Rio on August 15, 1983.
         SEC. 01.002. NATURE OF DISTRICT. The district is a
  groundwater conservation district in Val Verde County created under
  Section 59, Article XVI, Texas Constitution.
         SEC. 01.003. DISTRICT PURPOSE. The district is created to:
               (1)  provide for the protection, recharging,
  conserving, protecting, and prevention of waste of groundwater in
  Val Verde County;
               (2)  control subsidence caused by the withdrawal of
  water from the groundwater in Val Verde County;
               (3)  regulate the transport of groundwater out of the
  boundaries of the district;
               (4)  regulate pumping in the district to protect spring
  flow, base flow and drawdown;
               (5)  implement conservation plans and pumping
  reduction when conditions warrant action to protect spring flow,
  base flow and drawdown; and
               (6)  manage the issuance of permits, by requiring
  studies and groundwater availability model analysis of permit
  applications, that include conservation triggers that mitigate
  impact to spring flow, base flow and drawdown.
  SUBCHAPTER B. TERRITORY
         Sec. 01.004.  BOUNDARIES. The boundaries of the district
  are coextensive with the boundaries of Val Verde County, Texas.
  SUBCHAPTER C. BOARD OF DIRECTORS
         Sec. 01.101.  BOARD. The board shall be governed by five
  directors.
         Sec. 01.102.  METHOD OF APPOINTING SELECTING DIRECTORS:
         (a)  The directors of the district shall be appointed or
  elected as provided by this section.
         (b)  One (1) director shall be appointed by the City Council
  of the City of Del Rio, Texas.
         (c)  One (1) director shall be appointed by the Commissioners
  court of Val Verde County, Texas.
         (d)  One (1) director shall be elected at-large by the voters
  of Val Verde, County.
         (e)  One (1) director shall be elected by the voters of
  Commissioner Precincts 2 and 3, combined, of the Commissioners
  Court of Val Verde County, as such precincts may be redrawn from
  time to time by such Commissioners Court.
               (f)  One (1) director shall be elected by the voters of
  Commissioner Precincts 1 and 4, combined, of the
  Commissioners Court of Val Verde County, as such
  precincts may be redrawn from time to time by such
  Commissioners Court
         (g)  To be eligible to serve as a director, a person must be a
  registered voter of Val Verde County, Texas.
         (h)  Elections for the director positions in subsections
  (d)-(f) of this Section shall be held in even-numbered years on the
  uniform election date in November.
         Sec. 01.103.  TERMS.
         (a)  Directors serve staggered four-tear terms and may serve
  consecutive terms.
         (b)  Directors shall draw lots to determine which three
  directors shall serve a term expiring December 1 of the year two
  years after the date of the election in which the district is
  confirmed and which two directors shall serve a term expiring
  December 1 of the year four years after the date of the election in
  which the district is confirmed.
         Sec. 01.104.  VACANCIES. If there is a vacancy on the board,
  the board shall appoint a director to serve the remainder of the
  term.
         Sec. 01.105  COMPENSATION. (a) A director is not entitled to
  receive fees of office for performing the duties of a director.
         (b)  The board may authorize a director to receive
  reimbursement for the director's reasonable expenses incurred
  while engaging in activities outside the district on behalf of the
  board.
  SUBCHAPTER D. POWERS AND DUTIES
         Sec. 01.150.  POWERS AND DUTIES. Except as otherwise
  provided by this chapter, the district has all of the rights,
  powers, privileges, authority, functions, 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. 01.151  PERMITS TO PUMP GROUNDWATER.
         (a)  The district by rule shall:
               (1)  require a person to obtain a permit from the
  district to pump groundwater unless exempted under other sections
  of this legislation; and
               (2)  regulate the terms of a transfer of groundwater
  out of the district.
         (b)  The district shall develop rules under this section
  that:
               (1)  are consistent with the requirements of Section
  36.122, Water Code, except as otherwise provided in Section
  01.202(c) of this legislation; and
               (2)  provide for reduction and curtailment of
  groundwater pumping to protect spring flow, base flow and drawdown;
  and
               (3)  do not, in any event, seek to reduce or curtail
  usage or production under a water right as defined in Section
  11.002(5), Water Code, including the Del Rio Certificate of
  Adjudication.
         (c)  To implement the rules developed under 01.151(b)(2) of
  this legislation, the district may make and enforce rules as
  authorized under Section 36.101(a), Water Code, and to the extent
  not otherwise authorized by Section 36.101(a), limit groundwater
  production based on acreage, tract size, spacing of wells, or the
  service area of a public water supplier.
         (c-1)  Any district rules or enforcement of rules requiring
  reductions or curtailments on the production of groundwater
  otherwise authorized by permit shall be applied proportionally to
  all such permitted production.
         (d)  For better management of the groundwater resources
  located in the district, if the district determines that conditions
  in or use of an aquifer differ substantially from one geographic
  area of the district to another, the district may adopt different
  rules regulating production from management zones based on acreage,
  tract size, or the service area of a public water supplier . In
  creating management zones, the district may consider:
               (1)  each aquifer, subdivision of an aquifer, or
  geologic strata located in whole or in part within the boundaries of
  the district; or
               (2)  each geographic area overlying an aquifer or
  subdivision of an aquifer located in whole or in part within the
  boundaries of the district.
         Sec. 01.152.  PERMITS FOR USE SOLELY INSIDE DISTRICT.
         (a)  The district shall grant the City of Del Rio a permit in
  the city's name that authorizes the city to pump from all city wells
  annually a cumulative volume of groundwater that is not less than
  the greatest water usage in a calendar year before the date the
  district is confirmed. The permit shall be for use solely inside the
  district.
         (b)  In addition to the permit in Section 01.152(a), the
  district shall grant a permit to each existing political
  subdivision and retail public utility in the district that
  authorizes each such political subdivision and retail public
  utility to pump from its wells annually a volume of water that is
  not less than the greatest water usage by such political
  subdivision and retail public utility in a calendar year before the
  date the district is confirmed. The permit shall be for use solely
  inside the district.
         (c)  Nothing in this section, or in Section 01.053(a)(1),
  shall be considered a limitation under Section 36.122(c), Water
  Code, on the district's authority to establish permit conditions
  for transporters.
         Sec. 01.153.  EXEMPTIONS. (a) The district shall not
  require a person to obtain a permit from the district for
  groundwater production from a well if the well is not capable of
  producing more than 72,000 gallons a groundwater a day and the
  groundwater is used inside the district.
  (a-1)  Nothing in Section 01.153(a) makes Section 36.113(a), Water
  Code, inapplicable in the district.
         (b)  An owner of a well described in this section may be
  required to register the well with the district.
         (c)  An owner of a well is entitled to a permit exemption
  under this section only if water from the well is used solely inside
  the district. If any water from a well is directly or indirectly
  (other than through an agricultural crop) used outside the
  district, the well owner must obtain a permit for its production, in
  addition to any permits that must be obtained for its use outside
  the district.
         (d)  The district may not require a permit or a permit
  amendment for maintenance or repair of a well if the maintenance or
  repair does not increase the production capabilities of the well to
  more than its authorized or permitted production rate.
         Sec. 01.154.  PROHIBITION OF DISTRICT PURCHASE, SALE, OR
  DISTRIBUTION OF WATER. The district may not purchase, sell,
  transport, or distribute surface water or groundwater for any
  purpose.
         Sec. 01.155.  PROHIBITION ON DISTRICT USE OF EMINENT DOMAIN.
  The district may not exercise the power of eminent domain.
         Sec. 01.156.  GROUNDWATER FLOW MODEL.
         (a)  The district shall develop a district specific model
  which shall be used in conjunction with joint planning in the
  management area process found in Section 36.108 of the Texas Water
  Code. Until a subsequent study is determined by the district board
  of directors to be more appropriate, the district shall use as its
  model the Val Verde County/City of Del Rio Hydrogeological Study
  dated May 2014 by EcoKai Environmental, Inc. and William R.
  Hutchison, Ph.D, P.E., P.G.
         (b)  Applicants for transfer will be required to pay for any
  cost to run updated modeling of the effects of the proposed pumping
  on the aquifer and spring flow, base flow and drawdown. The district
  will utilize the information provided by the model in considering
  the applications.
         (c)  The district can require any other permit applicant to
  pay for the cost of the model utilization, if it deems the volume of
  pumping warrants model review.
         Sec. 01.157.  WATER CONSERVATION INITIATIVE. The district
  may create a water conservation initiative as described by Section
  11.32, Tax Code.
  SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
         Sec. 01.201.  LIMITATION ON TAXES.
         (a)  The district may not levy ad valorem taxes at any rate
  that exceeds five (5) cents on each $100 of assessed valuation of
  taxable property in the district.
         (b)  Sections 26.04, 26.05 and 26.06 of the Texas Tax Code do
  not apply to a tax levied and collected by the District. Instead,
  the District must follow the requirements under Section 49.236 of
  the Texas Water Code.
         Sec. 01.202.  FEES.
         (a)  The board by rule may impose reasonable and equitable
  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)  In addition to the production fee authorized under this
  section, the district shall assess a reasonable export fee on
  groundwater produced from a well and transported outside the
  district.
         (d)  A district may set fees by rule or resolution for
  administrative acts of the district such as filing applications,
  reviewing and processing permits, conducting permit hearings, cost
  of public notices, legal fees, expert fees, hearing facility rental
  fees and other fees.
         (e)  Nothing in this section authorizes the board to impose a
  production fee on water used or produced under a water right as
  defined in Section 11.002(5), Water Code, including under the Del
  Rio Certificate of Adjudication.
         SECTION 5.  APPOINTMENT OF TEMPORARY DIRECTORS
         (a)  Not later than the 45th day after the effective date of
  this Act:
               (1)  the Val Verde County Commissioners Court shall
  appoint two temporary directors;
               (2)  the Del Rio City Council shall appoint two
  temporary directors; and
               (3)  the Val Verde County Judge and the Mayor of Del Rio
  shall jointly appoint one temporary director.
         (b)  Temporary directors serve until temporary directors
  become initial directors as provided by Section 8 of this Act or
  until this Act expires under Section 12, whichever occurs earlier.
         (c)  Before the confirmation election, the presiding officer
  of the district or the presiding officer's designee may represent
  the district in the joint planning process found in Section 36.108
  of the Texas Water Code and such designee shall be considered a
  voting representative.
         SECTION 6.  ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS.
         As soon as practicable after all the temporary directors have
  qualified under Section 36.055 of the Texas 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 no location can be agreed upon, the
  organizational meeting shall be at the Val Verde County Courthouse.
         SECTION 7.  CONFIRMATION ELECTION.
         (a)  The temporary directors shall hold an election to
  confirm the creation of the district.
         (b)  Except as provided by this section, a confirmation
  election must be conducted as provided by Sections 36.017(b)-(i),
  Water Code, and the Election Code.
         (c)  The district may hold a subsequent confirmation
  election if the previous confirmation election fails to pass. A
  subsequent confirmation election may not be held sooner than one
  year after the date of the previous confirmation election.
         (d)  The confirmation election ballot shall be printed to
  permit voting for or against the proposition: "To create the Val
  Verde County Groundwater Conservation District and to authorize a
  rate not to exceed 5 cents for each $100 valuation of all taxable
  property in the district."
         (e)  The costs of an election held under this chapter may be
  paid by Val Verde County and the City of Del Rio.
         (f)  If the establishment of the district is not confirmed at
  an election held under this section before September 1, 2020, the
  district is dissolved, except that:
               (1)  any debts incurred shall be paid;
               (2)  any assets that remain after the payment of the
  debts shall be transferred to Val Verde County and the City of Del
  Rio in proportion to the amounts each has contributed to the costs
  of the confirmation election and district operations; and
               (3)  the organization of the district shall be
  maintained until all debts are paid and remaining assets are
  transferred.
         SECTION 8.  INITIAL DIRECTORS
         If creation of the district is confirmed at an election held
  under Section 7 of this Act, the temporary directors of the district
  become the initial directors of the district and serve on the board
  of directors until replaced according to Section 01.102.
         SECTION 9.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS
         (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 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, the
  lieutenant governor, and the 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 10.  EXPIRATION
         (a)  If the creation of the district is not confirmed at a
  confirmation election held under Section 7 of this Act before
  September 1, 2020, this Act expires on that date.
         (b)  The expiration of this Act does not affect the liability
  of the district to pay any debt incurred or the transfer of any
  assets remaining to Val Verde County and the City of Del Rio as
  required by Section 7(f) of this Act.
         SECTION 11.  EFFECTIVE DATE
         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, 2015.