By: Nichols S.B. No. 1840
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Deep East Texas Groundwater
Conservation District; providing authority to issue bonds;
providing authority to impose assessments, fees, and taxes.
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 8873 to read as follows:
CHAPTER 8873. DEEP EAST TEXAS GROUNDWATER CONSERVATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8873.001. 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 Deep East Texas Groundwater
Conservation District.
Sec. 8873.002. NATURE OF DISTRICT; FINDINGS. (a) The
district is a groundwater conservation district in Sabine, San
Augustine, and Shelby 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.
Sec. 8873.003. CONFIRMATION ELECTION REQUIRED. If the
creation of the district is not confirmed at a confirmation
election held under Section 8873.023 before September 1, 2015:
(1) the district is dissolved on September 1, 2015,
except that:
(A) any debts incurred shall be paid;
(B) any assets that remain after the payment of
debts shall be transferred to each county in proportion to the
contribution of money made; 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, 2017.
Sec. 8873.004. INITIAL DISTRICT TERRITORY. (a) Except as
provided by Subsections (b) and (c), the initial boundaries of the
district are coextensive with the boundaries of Sabine, San
Augustine, and Shelby Counties.
(b) If the creation of the district is not confirmed by the
voters of a county at an election held under Section 8873.023, that
county is not included in the district.
(c) If a majority of the voters of the City of Center do not
vote at an election under Section 8873.024 in favor of the inclusion
in the district of the territory of the city, as that territory
exists on the date of the election, the territory of the City of
Center is not included in the district.
Sec. 8873.005. ADDITION OF ADJACENT COUNTY TO DISTRICT.
(a) An adjacent county may petition to join the district by
resolution of the county commissioners court.
(b) If, after a hearing on the resolution, the board finds
that the addition of the county would benefit the district and the
county to be added, the board by resolution may approve the addition
of the county to the district.
(c) The addition of a county under this section is not final
until approved by the voters in the county to be added at an
election held for that purpose.
(d) The ballot for the election shall be printed to permit
voting for or against the proposition: "The addition of (county's
name) to the Deep East Texas Groundwater Conservation District."
(e) If a majority of the votes are cast in favor of the
addition of the county to the district, the county is added to the
district, and the district boundaries are adjusted accordingly. If
less than a majority of the votes are cast in favor of the addition
of the county to the district, the county is not added to the
district.
Sec. 8873.006. LANDOWNERS' RIGHTS. The rights of
landowners and their lessees and assigns in groundwater in the
district are recognized. Nothing in this chapter shall be
construed to deprive or divest the owners or their lessees and
assigns of their rights, subject to district rules.
Sec. 8873.007. REVIEW OF RESOLUTION REQUESTING
LEGISLATION. The board may not vote on a resolution requesting the
legislature to amend this chapter unless the board first submits
for review a copy of the proposed resolution to the commissioners
court of each county included in the district.
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 8873.021. APPOINTMENT OF TEMPORARY DIRECTORS.
(a) The district is initially governed by a board of seven
temporary directors appointed as provided by Section 8873.051(b).
(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 seven 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
Section 8873.051(b).
(d) Each temporary director must qualify to serve as a
director in the manner provided by Section 36.055, Water Code.
(e) Temporary directors serve until the earlier of:
(1) the time the temporary directors become the
initial permanent directors under Section 8873.025; or
(2) the date this chapter expires under Section
8873.003.
Sec. 8873.022. 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.
Sec. 8873.023. CONFIRMATION ELECTION. (a) The temporary
directors shall hold an election on the same date in Sabine, San
Augustine, and Shelby Counties and in the City of Center to confirm
the creation of the district.
(b) 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. Sections
36.017(d) and (h), Water Code, do not apply to an election under
this section.
(c) The ballot for the election must be printed to provide
for voting for or against the proposition: "The creation of the
Deep East Texas Groundwater Conservation District and the levy of
an ad valorem tax in the district at a rate not to exceed five cents
for each $100 of assessed valuation."
(d) If the proposition receives a favorable vote of a
majority of the voters voting in the election in two or more
counties, the creation of the district is confirmed.
(e) If the proposition receives a favorable vote of a
majority of the voters voting in the election in only one county,
the creation of the district is not confirmed unless the
commissioners court of that county votes to confirm the creation of
the district. The commissioners court must:
(1) hold two public hearings on the matter before
voting on the matter; and
(2) vote to confirm the creation of the district not
later than the 60th day after the date of the election.
Sec. 8873.024. MUNICIPAL ELECTION. (a) Notwithstanding
Section 36.018, Water Code, a separate voting district shall be
established in the City of Center to determine whether the
municipality is to be included in the district.
(b) The territory in the City of Center shall be included in
the district only if a majority of the voters in the municipal
territory of the City of Center vote in favor of the municipality's
inclusion in the district.
Sec. 8873.025. INITIAL PERMANENT DIRECTORS; INITIAL TERMS.
(a) If the creation of the district is confirmed under Section
8873.023, the temporary directors from the counties that are
included in the district become the district's initial permanent
directors.
(b) If the voters of Sabine, San Augustine, and Shelby
Counties confirm the creation of the district at an election held
under Section 8873.023:
(1) the two directors appointed from each county shall
draw lots to determine which director serves an initial term
expiring December 31, 2015, and which director serves an initial
term expiring December 31, 2017; and
(2) the jointly appointed director serves an initial
term expiring December 31, 2017.
(c) If the voters of only two of the counties confirm the
creation of the district:
(1) the two directors appointed by the county judge of
the county that does not confirm the creation of the district and
the director jointly appointed by the county judges of all three
counties are no longer eligible to serve as directors and their
terms expire;
(2) the two directors appointed from each confirming
county shall draw lots to determine which director serves an
initial term expiring December 31, 2015, and which director serves
an initial term expiring December 31, 2017; and
(3) the county judges of the confirming counties shall
jointly appoint a director as provided by Section 8873.051(c), who
serves an initial term expiring December 31, 2017.
(d) If the voters and the commissioners court of one county
confirm the creation of the district:
(1) the four directors appointed by the county judges
of the two counties that do not confirm the creation of the district
and the director jointly appointed by the county judges of all three
counties are no longer eligible to serve as director and their terms
expire;
(2) the two directors appointed from the confirming
county shall draw lots to determine which director serves an
initial term expiring December 31, 2015, and which director serves
an initial term expiring December 31, 2017; and
(3) the county judge of the confirming county:
(A) shall appoint one initial director with a
term expiring December 31, 2017, as board chair; and
(B) may appoint two additional initial directors
who are residents of that county and who, if appointed, shall draw
lots to determine which director serves an initial term expiring
December 31, 2015, and which director serves an initial term
expiring December 31, 2017.
Sec. 8873.026. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2016.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8873.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of seven, five, or three directors appointed as
provided by this section.
(b) If the voters in Sabine, San Augustine, and Shelby
Counties confirm the creation of the district, seven directors
shall be appointed as follows:
(1) the county judge of each confirming county shall
appoint two directors who are residents of that county; and
(2) the county judges of the confirming counties shall
by majority vote jointly appoint one director, who shall serve as
board chair, from the district at large.
(c) If the voters in only two of the counties confirm the
creation of the district, five directors shall be appointed as
follows:
(1) the county judge of each confirming county shall
appoint two directors who are residents of that county; and
(2) the county judges of the confirming counties shall
jointly appoint one director, who shall serve as board chair, from
the district at large.
(d) Notwithstanding Section 36.051(a), Water Code, if the
voters and the commissioners court of only one county confirm the
creation of the district, the county judge of that county:
(1) shall appoint three directors who are residents of
that county and designate one of those directors as board chair; and
(2) may appoint two directors, in addition to the
three directors appointed under Subdivision (1), who are residents
of that county.
(e) Directors serve staggered four-year terms, with as near
as possible to one-half of the directors' terms expiring December
31 of each odd-numbered year.
(f) A director may not serve more than two terms.
Sec. 8873.052. CHANGE IN COMPOSITION; ADDITIONAL COUNTY.
If a county is added to the district, the board may change the
number of directors so that:
(1) an equal number of directors are appointed by the
county judge of each county in the district;
(2) one director is appointed jointly by the county
judges of each county in the district; and
(3) the board is composed of an odd number of
directors.
Sec. 8873.053. QUALIFICATION OF DIRECTORS. Each director
must qualify to serve as a director in the manner provided by
Section 36.055, Water Code.
Sec. 8873.054. VACANCIES. If a vacancy occurs on the board,
the appointing county judge or, if applicable, the appointing
county judges for the vacant position shall appoint a person to fill
the vacancy in a manner that meets the representational
requirements of Section 8873.051. Section 36.051(c), Water Code,
does not apply to the district.
Sec. 8873.055. 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.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8873.101. 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. 8873.102. PERMIT TO TRANSFER GROUNDWATER. (a) The
board by rule may:
(1) require a person to obtain a permit from the
district to transfer groundwater out of the district; and
(2) regulate the terms of a transfer of groundwater
out of the district.
(b) A rule adopted by the board under this section must be
consistent with the requirements of Section 36.122, Water Code.
Sec. 8873.103. PROHIBITION ON DISTRICT PURCHASE OF
GROUNDWATER RIGHTS. The district may not purchase groundwater
rights for any purpose.
Sec. 8873.104. PROHIBITION ON DISTRICT PRODUCTION OF
GROUNDWATER FOR PURPOSE OF SALE. The district may not produce
groundwater for the purpose of sale.
Sec. 8873.105. PROHIBITION ON DISTRICT METERING OF CERTAIN
WELLS. The district may not require that a meter be placed on a well
that is incapable of producing more than 25,000 gallons of
groundwater per day.
Sec. 8873.106. PROHIBITION ON DISTRICT USE OF EMINENT
DOMAIN POWER. The district may not exercise the power of eminent
domain.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8873.151. LIMITATION ON TAXES. The district may not
impose ad valorem taxes at a rate that exceeds five cents on each
$100 valuation of taxable property in the district.
Sec. 8873.152. PERMIT FEES REFUNDABLE. The district shall
refund a fee collected by the district that relates to an
application for or the issuance of a permit if:
(1) the permit relates to a well that is incapable of
producing more than 25,000 gallons of groundwater per day; and
(2) the applicant for the permit has complied with the
applicable law and district rules relating to the issuance of the
permit.
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, one of the required recipients, 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 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, 2013.