81R21250 SGA-D
By: Hardcastle H.B. No. 4809
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the North Texas Groundwater
Conservation District; providing authority to 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 8856 to read as follows:
CHAPTER 8856. NORTH TEXAS GROUNDWATER CONSERVATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8856.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "Director" means a member of the board.
(3) "District" means the North Texas Groundwater
Conservation District.
Sec. 8856.002. NATURE OF DISTRICT; FINDINGS. (a) The
district is a groundwater conservation district in Collin, Cooke,
and Denton Counties created under and essential to accomplish the
purposes of Section 59, Article XVI, Texas Constitution.
(b) The district is created to serve a public use and
benefit.
(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 this chapter and by Chapter 36, Water Code.
(d) Any fees imposed by the district under this chapter are
necessary to pay for the costs of accomplishing the purposes of the
district, including the conservation and management of groundwater
resources, as provided by this chapter and Section 59, Article XVI,
Texas Constitution.
Sec. 8856.003. PUBLIC HEARING IN EACH COUNTY. (a) Not
later than December 1, 2009, the commissioners court of each county
in the district shall hold a public hearing on the topic of
including the territory of the county in the district.
(b) After the public hearings and not later than December
31, 2009, the commissioners court of each county shall vote to
confirm or reject the county's inclusion in the district. The
commissioners court shall adopt a resolution reflecting the result
of that vote and provide a copy of the resolution to the temporary
directors.
Sec. 8856.004. CONFIRMATION REQUIRED. (a) The creation of
the district is confirmed only if the commissioners courts of two or
more of the counties in the district submit a resolution confirming
the county's inclusion in the district to the temporary board. If
the commissioners court of a county does not submit a resolution
confirming the county's inclusion in the district to the temporary
board, that county is not included in the district. The temporary
board shall provide a copy of the resolutions and the final district
boundaries to the Texas Commission on Environmental Quality.
(b) If the creation of the district is not confirmed as
provided by Subsection (a) before January 1, 2010:
(1) the district is dissolved on January 1, 2010,
except that:
(A) any debts incurred shall be paid;
(B) any assets that remain after the payment of
debts shall be transferred in equal amounts to Collin, Cooke, and
Denton Counties; and
(C) the organization of the district shall be
maintained until all debts are paid and remaining assets are
transferred; and
(2) this chapter expires September 1, 2011.
Sec. 8856.005. INITIAL DISTRICT TERRITORY. The initial
boundaries of the district are coextensive with the boundaries of
Collin, Cooke, and Denton Counties.
Sec. 8856.006. APPLICABILITY OF OTHER GROUNDWATER
CONSERVATION DISTRICT LAW. Except as otherwise provided by this
chapter, Chapter 36, Water Code, applies to the district.
Sec. 8856.007. CONSTRUCTION OF CHAPTER. This chapter shall
be liberally construed to achieve the legislative intent and
purposes of Chapter 36, Water Code. A power granted by Chapter 36,
Water Code, or this chapter shall be broadly interpreted to achieve
that intent and those purposes.
[Sections 8856.008-8856.020 reserved for expansion]
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 8856.021. APPOINTMENT OF TEMPORARY DIRECTORS. (a)
The district is initially governed by a board of nine temporary
directors appointed as provided by Sections 8856.051(b) and (d).
(b) Temporary directors shall be appointed not later than
the 90th day after the effective date of the Act enacting this
chapter. If after the 90th day fewer than nine temporary directors
have been appointed, each unfilled position shall be considered a
vacancy and filled in accordance with Subsection (c).
(c) If a vacancy occurs on the temporary board, the
remaining temporary directors shall appoint a person to fill the
vacancy in a manner that meets the representational requirements of
this section.
(d) To be eligible to serve as a temporary director, a
person must be a registered voter in the appointing county.
(e) Each temporary director must qualify to serve as a
director in the manner provided by Section 36.055, Water Code.
(f) Temporary directors serve until the earlier of:
(1) the time the temporary directors become the
initial permanent directors under Section 8856.023; or
(2) the date this chapter expires under Section
8856.004.
Sec. 8856.022. 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 Pilot Point High School in Denton County.
Sec. 8856.023. INITIAL PERMANENT DIRECTORS; INITIAL TERMS.
(a) If the creation of the district is confirmed under Section
8856.004, the temporary directors from the counties that are
included in the district become the initial permanent directors.
(b) If the Commissioners Courts of Collin, Cooke, and Denton
Counties confirm the inclusion of those counties in the district,
the three directors appointed from each county shall draw lots as
follows to determine:
(1) for Denton and Cooke Counties, which director's
term expires June 1, 2011, and which two directors' terms expire
June 1, 2013; and
(2) for Collin County, which two directors' terms
expire June 1, 2011, and which director's term expires June 1, 2013.
(c) If the commissioners courts of only two of the counties
confirm the inclusion of those counties in the district, the three
directors appointed from each county shall draw lots as follows to
determine:
(1) for the first county to confirm, which director's
term expires June 1, 2011, and which two directors' terms expire
June 1, 2013; and
(2) for the second county to confirm, which two
directors' terms expire June 1, 2011, and which director's term
expires June 1, 2013.
Sec. 8856.024. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2011.
[Sections 8856.025-8856.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8856.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of six or nine directors appointed as provided
by this section.
(b) If the Commissioners Courts of Collin, Cooke, and Denton
Counties confirm the inclusion of those counties in the district,
nine directors shall be appointed as follows:
(1) the Collin County Commissioners Court shall
appoint three directors;
(2) the Cooke County Commissioners Court shall appoint
three directors; and
(3) the Denton County Commissioners Court shall
appoint three directors.
(c) If the commissioners courts of only two of the counties
confirm the inclusion of those counties in the district, the
commissioners court of each of those counties shall appoint three
directors.
(d) The commissioners court of each appointing county shall
appoint two of the three directors from that county as follows:
(1) one director from a slate of not more than three
nominees submitted by the largest municipal groundwater producer in
the county; and
(2) one director from a slate of not more than three
nominees submitted by the other groundwater producers in that
county.
(e) Directors serve staggered four-year terms, with the
term of one or two directors from each appointing county expiring on
June 1 of each odd-numbered year.
(f) A director may serve multiple consecutive terms.
(g) A position on the board may not be construed to be a
civil office of emolument for any purpose, including a purpose
described by Section 40, Article XVI, Texas Constitution.
(h) A person who qualifies to serve on the board may serve as
a director and participate in all votes relating to the business of
the district regardless of any common law doctrine of
incompatibility. Section 36.051, Water Code, does not apply to the
district.
Sec. 8856.052. DIRECTOR ELIGIBILITY; QUALIFICATION. (a)
To be eligible to serve as a director, a person must be a registered
voter in the appointing county.
(b) Each director must qualify to serve in the manner
provided by Section 36.055, Water Code.
Sec. 8856.053. VACANCIES. If a vacancy occurs on the board,
the commissioners court that appointed the director who vacated the
office shall appoint a person to fill the vacancy in a manner that
meets the representational requirements of Section 8856.051.
Sec. 8856.054. COMPENSATION; REIMBURSEMENT. (a)
Notwithstanding Sections 36.060(a) and (d), Water Code, a director
may not receive compensation for performing the duties of director.
(b) A director is entitled to reimbursement of actual
expenses reasonably and necessarily incurred while engaging in
activities on behalf of the district.
Sec. 8856.055. BOARD CHAIR. The board shall select one of
its members to serve as the chair for a two-year term. The position
of chair must rotate among the counties in the district every two
years in alphabetical order by county.
[Sections 8856.056-8856.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8856.101. GROUNDWATER CONSERVATION DISTRICT POWERS
AND DUTIES. Except as 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. 8856.102. CONTRACTS. The district may enter into a
contract with any person, public or private, for any purpose
authorized by law.
Sec. 8856.103. APPLICABILITY OF DISTRICT REGULATIONS.
Groundwater regulation under this chapter applies to all persons
except as exempted from the requirement to obtain a permit for a
well under Section 36.117, Water Code, or this chapter.
Sec. 8856.104. WELL SPACING RULES; EXEMPTIONS. (a) Except
as provided by Subsection (b), the district shall exempt from the
well spacing requirements adopted by the district any well that is
completed on or before the effective date of those requirements.
(b) The district may provide by rule that a well may lose its
exemption under this section if the well is modified in a manner
that substantially increases the capacity of the well after the
effective date of the well spacing requirements adopted by the
district.
(c) Except as provided by this section and notwithstanding
Section 8856.103, the district may require any well or class of
wells exempt from permitting under Chapter 36, Water Code, to
comply with the well spacing requirements adopted by the district.
The district shall apply well spacing requirements uniformly to any
well or class of wells based on the size or capacity of the well and
without regard to the type of use of the groundwater produced by the
well.
Sec. 8856.105. 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
Subsection (b)(1) of that section, to report groundwater
withdrawals from the well using reasonable and appropriate
reporting methods and frequency.
Sec. 8856.106. ENFORCEMENT. (a) The district may enforce
this chapter in the manner provided by Chapter 36, Water Code. In
lieu of a remedy available to the district under Section 36.102,
Water Code, or in addition to those remedies, the district may
impose a fee in addition to a fee assessed under Section 8856.152 on
a person producing groundwater in violation of a rule of the
district, including the failure or refusal to comply with any order
or rule of the district to reduce or cease groundwater usage. The
purpose of a fee authorized under this subsection is to serve as a
disincentive to producing groundwater except as authorized by the
district.
(b) A fee imposed under Subsection (a) may not exceed an
amount equal to 10 times the amount of a fee assessed under Section
8856.152.
Sec. 8856.107. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
[Sections 8856.108-8856.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8856.151. TAXES PROHIBITED. The district may not
impose a tax. Sections 36.020(a) and 36.201-36.204, Water Code, do
not apply to the district.
Sec. 8856.152. DISTRICT REVENUES. (a) The district by
rule, resolution, or order may establish, amend, pledge, encumber,
expend the proceeds from, and assess to any person production fees
based on the amount of groundwater authorized by permit to be
withdrawn from a well or on the amount of water actually withdrawn,
to enable the district to fulfill its purposes and regulatory
functions as provided by this chapter. The district may use
revenues generated by fees it assesses for any lawful purpose.
(b) Notwithstanding any provision of general law to the
contrary, a fee authorized by Subsection (a) may not exceed:
(1) $1 per acre-foot annually for groundwater used for
agricultural purposes; or
(2) 30 cents per thousand gallons annually for
groundwater used for nonagricultural purposes.
(c) Notwithstanding any provision of general law or this
chapter to the contrary, if any, the district may assess a
production fee under this section for groundwater produced from a
well or class of wells exempt from permitting under Section 36.117,
Water Code, except for a well exempted under Subsection (b)(1) of
that section. A production fee assessed by the district under this
subsection must be based on the amount of groundwater actually
withdrawn from the well and may not exceed the amount established by
the district for permitted uses under Subsection (b)(2) of this
section.
(d) Notwithstanding Section 36.1071(f), Water Code, the
district by rule, resolution, or order before the adoption of its
management plan may:
(1) establish, assess, and enforce the collection of
production fees under this section; and
(2) establish and enforce metering and reporting
requirements, except for a well exempt from permitting under
Section 36.117(b)(1), Water Code.
(e) The district by rule may establish a temporary or
permanent discounted fee rate for persons who prepay production
fees to the district under this section on or before the dates
established by district rule.
(f) The district may not charge an export fee to a producer
of groundwater withdrawn from a well in the district who
distributes the water to any part of the territory under the
provider's certificate of public convenience and necessity even if
the territory is outside the district's boundaries.
SECTION 2. (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 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.