Texas 2009 - 81st Regular

Texas House Bill HB4736 Compare Versions

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1	1	81R11686 SLB-F
2	2	By: Phillips H.B. No. 4736
3	3	Substitute the following for H.B. No. 4736:
4	4	By: Martinez Fischer C.S.H.B. No. 4736
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation of the Red River Groundwater Conservation
10	10	District; providing authority to issue bonds.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle H, Title 6, Special District Local Laws
13	13	Code, is amended by adding Chapter 8859 to read as follows:
14	14	CHAPTER 8859. RED RIVER GROUNDWATER CONSERVATION DISTRICT
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 8859.001. DEFINITIONS. In this chapter:
17	17	(1) "Board" means the board of directors of the
18	18	district.
19	19	(2) "Director" means a member of the board.
20	20	(3) "District" means the Red River Groundwater
21	21	Conservation District.
22	22	(4) "Water services district" means a district created
23	23	under the authority of Section 59, Article XVI, or Section 52,
24	24	Article III, Texas Constitution, with the authority to provide
25	25	retail water service in the district.
26	26	(5) "Water supply corporation" means a water supply
27	27	corporation operating under Chapter 67, Water Code.
28	28	Sec. 8859.002. NATURE OF DISTRICT; FINDINGS. (a) The
29	29	district is a groundwater conservation district in Grayson and
30	30	Fannin Counties created under and essential to accomplish the
31	31	purposes of Section 59, Article XVI, Texas Constitution.
32	32	(b) The district is created to serve a public use and
33	33	benefit.
34	34	(c) All of the land and other property included within the
35	35	boundaries of the district will be benefited by the works and
36	36	projects that are to be accomplished by the district under powers
37	37	conferred by this chapter and by Chapter 36, Water Code.
38	38	(d) Any fees imposed by the district under this chapter are
39	39	necessary to pay for the costs of accomplishing the purposes of the
40	40	district, including the conservation and management of groundwater
41	41	resources, as provided by this chapter and Section 59, Article XVI,
42	42	Texas Constitution.
43	43	Sec. 8859.003. INITIAL DISTRICT TERRITORY. The initial
44	44	boundaries of the district are coextensive with the boundaries of
45	45	Grayson and Fannin Counties.
46	46	Sec. 8859.004. APPLICABILITY OF OTHER GROUNDWATER
47	47	CONSERVATION DISTRICT LAW. (a) Except as otherwise provided by
48	48	this chapter, Chapter 36, Water Code, applies to the district.
49	49	(b) Subchapter B, Chapter 36, Water Code, does not apply to
50	50	the district.
51	51	Sec. 8859.005. CONSTRUCTION OF CHAPTER. This chapter shall
52	52	be liberally construed to achieve the legislative intent and
53	53	purposes of Chapter 36, Water Code. A power granted by Chapter 36,
54	54	Water Code, or this chapter shall be broadly interpreted to achieve
55	55	that intent and those purposes.
56	56	[Sections 8859.006-8859.020 reserved for expansion]
57	57	SUBCHAPTER A-1. TEMPORARY PROVISIONS
58	58	Sec. 8859.021. INITIAL DIRECTORS; APPOINTMENT. (a) Not
59	59	later than the 30th day after the effective date of the Act creating
60	60	this chapter, the persons designated by Sections 8859.053(a)(1),
61	61	(2), (3), and (4) to appoint directors shall appoint initial
62	62	directors as prescribed by Section 8859.053 and in writing shall
63	63	submit the appointed directors' names to the county judge of Fannin
64	64	County. The persons responsible for making nominations for the
65	65	appointments under Sections 8859.053(a)(2) and (3) shall submit
66	66	initial director nominations to the commissioners court of Fannin
67	67	County not later than the 20th day after the effective date of the
68	68	Act enacting this chapter.
69	69	(b) Not later than the 30th day after the effective date of
70	70	the Act creating this chapter, the county judge of Fannin County
71	71	shall set the date, time, and location for a meeting of the
72	72	representatives designated under Subsection (d) for the
73	73	appointment of initial directors by the entities that Sections
74	74	8859.053(a)(5) and (6) authorize to appoint directors.
75	75	(c) The county judge of Fannin County shall give notice of
76	76	the meeting required by Subsection (b) not later than the 20th day
77	77	before the date of the meeting by:
78	78	(1) providing a notice to the county clerk of Fannin
79	79	County for public posting; and
80	80	(2) mailing a notice to the commissioners court of
81	81	Grayson County.
82	82	(d) The governing body of each entity described by Sections
83	83	8859.053(a)(5) and (6) shall designate a representative to attend
84	84	the meeting described by Subsection (b) and to cast the vote on
85	85	behalf of the entity. Failure of a governing body to designate a
86	86	representative or of a representative to cast a vote does not
87	87	invalidate the appointment of the initial directors.
88	88	(e) The county judge of Fannin County shall preside at the
89	89	meeting described in Subsection (b) and may require representatives
90	90	described by Subsection (d) to provide evidence demonstrating
91	91	representation of an appropriate entity and qualification under
92	92	Section 8859.053(f). The county judge of Fannin County in writing
93	93	shall certify to the board and to the executive director of the
94	94	Texas Commission on Environmental Quality the results of the
95	95	meeting described in Subsection (b), including:
96	96	(1) the identity of each representative described by
97	97	Subsection (d) who attended the meeting; and
98	98	(2) the names and terms of each initial director
99	99	appointed.
100	100	(f) If the county judge of Fannin County does not perform
101	101	any duty established by this section before the 90th day after the
102	102	effective date of the Act creating this chapter, the executive
103	103	director of the Texas Commission on Environmental Quality shall
104	104	perform that duty as soon as practicable after that date.
105	105	Sec. 8859.022. INITIAL DIRECTORS; TERMS OF OFFICE. (a) The
106	106	following initial directors shall serve from the date of
107	107	appointment until August 31, 2011:
108	108	(1) the initial director appointed by the
109	109	commissioners court of Fannin County under Section 8859.053(a)(1);
110	110	(2) one initial director appointed by the governing
111	111	body of the municipality under Section 8859.053(a)(4); and
112	112	(3) the initial director appointed by the governing
113	113	bodies of the municipalities under Section 8859.053(a)(5).
114	114	(b) The following initial directors shall serve from the
115	115	date of appointment until August 31, 2013:
116	116	(1) the two initial directors appointed by the
117	117	commissioners court of Fannin County under Sections 8859.053(a)(2)
118	118	and (3);
119	119	(2) one initial director appointed by the governing
120	120	body of the municipality described by Section 8859.053(a)(4); and
121	121	(3) the initial director appointed by the governing
122	122	boards described by Section 8859.053(a)(6).
123	123	(c) The governing body of the municipality that appoints
124	124	initial directors under Section 8859.053(a)(4) shall indicate in
125	125	the submission for each appointment the length of the term for the
126	126	appointment as described by Subsection (b).
127	127	Sec. 8859.023. INITIAL DIRECTORS; QUALIFICATIONS. (a) To
128	128	be eligible to serve as an initial director:
129	129	(1) a person appointed under Section 8859.053(a)(1),
130	130	(2), or (3) must be a registered voter of Fannin County; and
131	131	(2) a person appointed under Section 8859.053(a)(4),
132	132	(5), or (6) must be a registered voter of Grayson County.
133	133	(b) Each initial director must qualify to serve as a
134	134	director in the manner provided by Section 36.055, Water Code.
135	135	Sec. 8859.024. ORGANIZATIONAL MEETING OF INITIAL
136	136	DIRECTORS. (a) As soon as practicable after all the initial
137	137	directors have qualified under Section 36.055, Water Code, a
138	138	majority of the initial directors shall convene the organizational
139	139	meeting of the district at the Grayson County courthouse or at
140	140	another location in the district agreeable to a majority of the
141	141	initial directors.
142	142	(b) The initial directors shall elect officers of the
143	143	initial board in accordance with Section 36.054(b), Water Code, at
144	144	its organizational meeting.
145	145	Sec. 8859.025. EXPIRATION OF SUBCHAPTER. This subchapter
146	146	expires December 31, 2013.
147	147	[Sections 8859.026-8859.050 reserved for expansion]
148	148	SUBCHAPTER B. BOARD OF DIRECTORS
149	149	Sec. 8859.051. GOVERNING BODY; TERMS. (a) The district is
150	150	governed by a board of seven directors appointed as provided by this
151	151	section.
152	152	(b) Directors serve staggered four-year terms, with the
153	153	terms of three or four directors from each appointing county
154	154	expiring on August 31 of each odd-numbered year.
155	155	(c) A director serves until the director's successor has
156	156	qualified to serve.
157	157	Sec. 8859.052. DIRECTOR ELIGIBILITY; QUALIFICATION. (a)
158	158	To be eligible to serve as a director:
159	159	(1) a person appointed under Section 8859.053(a)(1),
160	160	(2), or (3) must be a registered voter of Fannin County; and
161	161	(2) a person appointed under Section 8859.053(a)(4),
162	162	(5), or (6) must be a registered voter of Grayson County.
163	163	(b) Each director must qualify to serve in the manner
164	164	provided by Section 36.055, Water Code.
165	165	(c) A person who qualifies as a director may participate in
166	166	all votes relating to the business of the district, regardless of
167	167	any common law doctrine or statutory prohibition related to
168	168	conflicts of interest or incompatibility.
169	169	(d) Section 36.058, Water Code, does not apply to a
170	170	director.
171	171	Sec. 8859.053. APPOINTMENT OF DIRECTORS. (a) The board
172	172	consists of seven directors as follows:
173	173	(1) one director appointed by the commissioners court
174	174	of Fannin County at the discretion of the commissioners court;
175	175	(2) one director appointed by the commissioners court
176	176	of Fannin County selected from a list of nominees submitted to the
177	177	commissioners court by the governing bodies of the municipalities
178	178	in Fannin County;
179	179	(3) one director appointed by the commissioners court
180	180	of Fannin County selected from a list of nominees submitted to the
181	181	commissioners court by the water services districts and water
182	182	supply corporations that provide retail water service to customers
183	183	in Fannin County, subject to the limitation provided by Subsection
184	184	(f);
185	185	(4) two directors appointed by the governing body of
186	186	the municipality in Grayson County that has the largest annual
187	187	production of groundwater by volume for the four years preceding
188	188	the appointment;
189	189	(5) one director appointed jointly by the governing
190	190	bodies of the municipalities in Grayson County other than the
191	191	municipality described by Subdivision (4); and
192	192	(6) one director appointed jointly by the governing
193	193	boards of all water services districts and water supply
194	194	corporations that provide retail water service to customers in
195	195	Grayson County, subject to the limitation provided by Subsection
196	196	(f).
197	197	(b) Directors must be appointed not later than the second
198	198	Monday in August of each odd-numbered year.
199	199	(c) Not later than the 60th day before the second Monday in
200	200	August of each odd-numbered year, the district shall mail written
201	201	notice to each entity authorized to make an appointment under
202	202	Subsection (a).
203	203	(d) The board by rule shall adopt a procedure for the
204	204	written submission of appointments to the district.
205	205	(e) An entity that Subsection (a)(2) or (3) authorizes to
206	206	nominate persons for director shall submit a list of nominees not
207	207	later than the 30th day before the date the appointment is to be
208	208	made under this section. If an entity designated by Subsection
209	209	(a)(2) or (3) does not submit the list before that date, the
210	210	commissioners court of Fannin County may appoint a director to the
211	211	position for which the list was not received at the discretion of
212	212	the commissioners court.
213	213	(f) A water services district or water supply corporation in
214	214	Grayson and Fannin Counties may not participate in the appointment
215	215	of a director unless that district or corporation used groundwater
216	216	produced from wells located within the district to provide retail
217	217	water service in the district during the calendar year of the
218	218	appointment or the calendar year preceding the appointment. The
219	219	board may require evidence of eligibility to participate.
220	220	Sec. 8859.054. VACANCIES. If a vacancy occurs on the board,
221	221	the entity that appointed the director who vacated the office shall
222	222	appoint a person to fill the vacancy for the unexpired term in the
223	223	manner provided for the vacant position by Section 8859.053.
224	224	Sec. 8859.055. COMPENSATION; REIMBURSEMENT. (a)
225	225	Notwithstanding Sections 36.060(a) and (d), Water Code, a director
226	226	may not receive compensation for performing the duties of director.
227	227	(b) A director is entitled to reimbursement of actual
228	228	expenses reasonably and necessarily incurred while engaging in
229	229	activities on behalf of the district.
230	230	(c) A position on the board is not a civil office of
231	231	emolument for any purpose, including a purpose described in Section
232	232	40, Article XVI, Texas Constitution.
233	233	Sec. 8859.056. QUORUM; CONCURRENCE FOR TRANSACTING
234	234	BUSINESS. (a) A majority of the board membership constitutes a
235	235	quorum for any meeting and a concurrence of a majority of the board
236	236	shall be sufficient to transact district business, except as
237	237	provided by Subsection (b).
238	238	(b) A concurrence of not fewer than six directors is
239	239	required for transacting the following district business:
240	240	(1) establishing or amending a groundwater production
241	241	fee assessed by the district based on the amount of groundwater
242	242	authorized by permit to be withdrawn from a well or on the amount of
243	243	water actually withdrawn from a well;
244	244	(2) adopting the annual budget of the district; and
245	245	(3) except as provided by Subsection (c), granting or
246	246	denying a permit or permit amendment for a well that is intended to
247	247	produce water within the district which will be transported in any
248	248	amount for use outside the boundaries of the district.
249	249	(c) A concurrence of a majority of the board is sufficient
250	250	to grant or deny a permit or permit amendment submitted by a retail
251	251	public utility that provides retail water service in the district
252	252	and intends to:
253	253	(1) produce water from a well located:
254	254	(A) within the district; and
255	255	(B) inside the boundaries or a certificated
256	256	service area of a retail public utility; and
257	257	(2) transport the water outside the district, so long
258	258	as the water is used within the same certificated service area or
259	259	boundary of the retail public utility.
260	260	Sec. 8859.057. DECENNIAL REVIEW OF DISTRICT
261	261	REPRESENTATION. (a) Not later than January 1, 2019, and every 10
262	262	years following that date, the board shall complete a review of the
263	263	adequacy of representation of water users on the board based on
264	264	groundwater production and use within the district.
265	265	(b) Not later than the 20th day following the date the
266	266	review is complete, the board shall submit the review described in
267	267	Subsection (a) and any recommendation the board may have relating
268	268	to the reapportionment of directors or the representational
269	269	structure of the board to each member of the house of
270	270	representatives and each member of the senate whose state
271	271	legislative district includes territory in the district.
272	272	[Sections 8859.058-8859.100 reserved for expansion]
273	273	SUBCHAPTER C. POWERS AND DUTIES
274	274	Sec. 8859.101. GROUNDWATER CONSERVATION DISTRICT POWERS
275	275	AND DUTIES. Except as provided by this chapter, the district has
276	276	the powers and duties provided by the general law of this state,
277	277	including Chapter 36, Water Code, applicable to groundwater
278	278	conservation districts created under Section 59, Article XVI, Texas
279	279	Constitution.
280	280	Sec. 8859.102. CONTRACTS. The district may enter into a
281	281	contract with any person, public or private, for any purpose
282	282	authorized by law.
283	283	Sec. 8859.103. APPLICABILITY OF DISTRICT RULES REGULATING
284	284	GROUNDWATER. District rules regulating groundwater adopted under
285	285	this chapter apply to all persons except as exempted under Section
286	286	36.117, Water Code, or this chapter.
287	287	Sec. 8859.104. WELL SPACING RULES; EXEMPTIONS. (a) Except
288	288	as provided by Subsection (b), the district shall exempt from the
289	289	well spacing requirements adopted by the district any well that is
290	290	completed on or before the effective date of those requirements.
291	291	(b) The district by rule may provide that a well may lose its
292	292	exemption under this section if the well is modified in a manner
293	293	that substantially increases the capacity of the well after the
294	294	effective date of the well spacing requirements adopted by the
295	295	district.
296	296	(c) Except as provided by this section and notwithstanding
297	297	Section 8859.103, the district may require any well or class of
298	298	wells exempt from permitting under Chapter 36, Water Code, to
299	299	comply with the well spacing requirements adopted by the district.
300	300	The district shall apply well spacing requirements uniformly to any
301	301	well or class of wells based on the size or capacity of the well and
302	302	without regard to the type of use of the groundwater produced by the
303	303	well.
304	304	Sec. 8859.105. REGISTRATION AND REPORTING REQUIREMENTS FOR
305	305	CERTAIN EXEMPT WELLS. The district may adopt rules that require the
306	306	owner or operator of a well or class of wells exempt from permitting
307	307	under Section 36.117, Water Code, to register the well with the
308	308	district and, except for a well exempt from permitting under
309	309	Subsection (b)(1) of that section, to report groundwater
310	310	withdrawals from the well using reasonable and appropriate
311	311	reporting methods and frequency.
312	312	Sec. 8859.106. ENFORCEMENT. (a) The district may enforce
313	313	this chapter in the manner provided by Chapter 36, Water Code. In
314	314	lieu of a remedy available to the district under Section 36.102,
315	315	Water Code, or in addition to those remedies, the district may
316	316	impose a fee in addition to a fee assessed under Section 8859.152 on
317	317	a person producing groundwater in violation of a rule of the
318	318	district, including the failure or refusal to comply with any order
319	319	or rule of the district to reduce or cease groundwater usage. The
320	320	purpose of a fee authorized under this subsection is to serve as a
321	321	disincentive to producing groundwater except as authorized by the
322	322	district.
323	323	(b) A fee imposed under Subsection (a) may not exceed an
324	324	amount equal to 10 times the amount of a fee assessed under Section
325	325	8859.152.
326	326	[Sections 8859.107-8859.150 reserved for expansion]
327	327	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
328	328	Sec. 8859.151. TAXES PROHIBITED. The district may not
329	329	impose a tax. Sections 36.201-36.204, Water Code, do not apply to
330	330	the district.
331	331	Sec. 8859.152. DISTRICT REVENUES. (a) The district by
332	332	rule, resolution, or order may establish, amend, pledge, encumber,
333	333	expend the proceeds from, and assess to any person production fees
334	334	based on the amount of groundwater authorized by permit to be
335	335	withdrawn from a well or on the amount of water actually withdrawn,
336	336	to enable the district to fulfill its purposes and regulatory
337	337	functions as provided by this chapter. The district may use
338	338	revenues generated by fees it assesses for any lawful purpose.
339	339	(b) Notwithstanding any provision of general law to the
340	340	contrary, a fee authorized by Subsection (a) may not exceed:
341	341	(1) $1 per acre-foot annually for groundwater used for
342	342	agricultural purposes; or
343	343	(2) 30 cents per thousand gallons annually for
344	344	groundwater used for nonagricultural purposes.
345	345	(c) Notwithstanding any provision of general law or this
346	346	chapter to the contrary, the district may assess a production fee
347	347	under this section for groundwater produced from a well or class of
348	348	wells exempt from permitting under Section 36.117, Water Code,
349	349	except for a well exempt from permitting under Subsection (b)(1) of
350	350	that section. A production fee assessed by the district under this
351	351	subsection must be based on the amount of groundwater actually
352	352	withdrawn from the well and may not exceed the amount established by
353	353	the district for permitted uses under Subsection (b)(2) of this
354	354	section.
355	355	(d) Notwithstanding Section 36.1071(f), Water Code, the
356	356	district by rule, resolution, or order before the adoption of its
357	357	management plan may:
358	358	(1) establish, assess, and enforce the collection of
359	359	production fees under this section; and
360	360	(2) establish and enforce metering and reporting
361	361	requirements, except for a well exempt from permitting under
362	362	Section 36.117(b)(1), Water Code.
363	363	(e) The district by rule may establish a temporary or
364	364	permanent discounted fee rate for persons who prepay production
365	365	fees to the district under this section on or before the dates
366	366	established by district rule.
367	367	(f) The district may not assess a fee for transporting water
368	368	that is produced from a well located inside the district and inside
369	369	a certificated service area of a retail public utility and
370	370	transported outside of the district, if the water is used in the
371	371	same certificated service area of the retail public utility.
372	372	SECTION 2. The legislature finds that for the purpose of
373	373	Section 8859.053(a)(4), Special District Local Laws Code, as added
374	374	by this Act, the City of Sherman is the municipality in Grayson
375	375	County with the largest annual production of groundwater by volume
376	376	for the four years preceding the effective date of this Act.
377	377	SECTION 3. (a) The legal notice of the intention to
378	378	introduce this Act, setting forth the general substance of this
379	379	Act, has been published as provided by law, and the notice and a
380	380	copy of this Act have been furnished to all persons, agencies,
381	381	officials, or entities to which they are required to be furnished
382	382	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
383	383	Government Code.
384	384	(b) The governor has submitted the notice and Act to the
385	385	Texas Commission on Environmental Quality.
386	386	(c) The Texas Commission on Environmental Quality has filed
387	387	its recommendations relating to this Act with the governor,
388	388	lieutenant governor, and speaker of the house of representatives
389	389	within the required time.
390	390	(d) All requirements of the constitution and laws of this
391	391	state and the rules and procedures of the legislature with respect
392	392	to the notice, introduction, and passage of this Act are fulfilled
393	393	and accomplished.
394	394	SECTION 4. This Act takes effect immediately if it receives
395	395	a vote of two-thirds of all the members elected to each house, as
396	396	provided by Section 39, Article III, Texas Constitution. If this
397	397	Act does not receive the vote necessary for immediate effect, this
398	398	Act takes effect September 1, 2009.