Texas 2015 - 84th Regular

Texas Senate Bill SB1413 Compare Versions

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1	1	By: Estes S.B. No. 1413
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the powers, duties, and administration of groundwater
7	7	conservation districts.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 36.001, Water Code, is amended by
10	10	amending Subdivisions (8) and (16) and adding Subdivision (31) to
11	11	read as follows:
12	12	(8) "Waste" means any one or more of the following:
13	13	(A) withdrawal of groundwater from a groundwater
14	14	reservoir at a rate and in an amount that causes or threatens to
15	15	cause intrusion into the reservoir of water unsuitable for
16	16	agricultural, gardening, domestic, or stock raising purposes;
17	17	(B) the flowing or producing of wells from a
18	18	groundwater reservoir if the water produced is not used for a
19	19	beneficial purpose;
20	20	(C) escape of groundwater from a groundwater
21	21	reservoir to any other reservoir or geologic strata that does not
22	22	contain groundwater;
23	23	(D) pollution or harmful alteration of
24	24	groundwater in a groundwater reservoir by saltwater or by other
25	25	deleterious matter admitted from another stratum or from the
26	26	surface of the ground;
27	27	(E) willfully [wilfully] or negligently causing,
28	28	suffering, or allowing groundwater to escape into any river, creek,
29	29	natural watercourse, depression, lake, reservoir, drain, sewer,
30	30	street, highway, road, or road ditch, or onto any land other than
31	31	that of the owner of the well unless such discharge is authorized by
32	32	permit, rule, or order issued by the commission under Chapter 26;
33	33	(F) groundwater pumped for irrigation that
34	34	escapes as irrigation tailwater onto land other than that of the
35	35	owner of the well unless permission has been granted by the occupant
36	36	of the land receiving the discharge; or
37	37	(G) for water produced from an artesian well,
38	38	"waste" also has the meaning assigned by Section 11.205.
39	39	(16) "Loan fund" means the groundwater conservation
40	40	district loan assistance fund created under Section 36.371.
41	41	(31) "Operating permit" as used in this chapter means
42	42	any type of permit issued by a district that relates to the
43	43	operation of or production from a water well, which may include
44	44	authorization to drill or complete a water well if the district
45	45	does not require a separate permit for drilling or completing a
46	46	water well.
47	47	SECTION 2. Section 36.017(i), Water Code, is amended to
48	48	read as follows:
49	49	(i) If a majority of the votes cast at the election are
50	50	against the levy of a maintenance tax, the district shall set
51	51	[production] fees authorized by this chapter to pay for the
52	52	district's regulation of groundwater in the district[, including
53	53	fees based on the amount of water to be withdrawn from a well].
54	54	SECTION 3. Section 36.0171(h), Water Code, is amended to
55	55	read as follows:
56	56	(h) If the majority of the votes cast at the election are
57	57	against the levy of a maintenance tax, the district shall set
58	58	[production] fees authorized by this chapter in accordance with
59	59	Section 35.013(g-1) to pay for the district's regulation of
60	60	groundwater in the district[, including fees based on the amount of
61	61	water to be withdrawn from a well].
62	62	SECTION 4. Section 36.058, Water Code, is amended to read as
63	63	follows:
64	64	Sec. 36.058. CONFLICTS OF INTEREST. A director of a
65	65	district is subject to the provisions of Chapters [Chapter] 171 and
66	66	176, Local Government Code, relating to the regulation of conflicts
67	67	of officers of local governments.
68	68	SECTION 5. Section 36.061(a), Water Code, is amended to
69	69	read as follows:
70	70	(a) Subject to the law governing the district, the board
71	71	shall adopt the following in writing:
72	72	(1) a code of ethics for district directors, officers,
73	73	employees, and persons who are engaged in handling investments for
74	74	the district;
75	75	(2) a policy relating to travel expenditures;
76	76	(3) a policy relating to district investments that
77	77	ensures that:
78	78	(A) purchases and sales of investments are
79	79	initiated by authorized individuals, conform to investment
80	80	objectives and regulations, and are properly documented and
81	81	approved; and
82	82	(B) periodic review is made of district
83	83	investments to evaluate investment performance and security;
84	84	(4) policies and procedures for selection,
85	85	monitoring, or review and evaluation of professional services; and
86	86	(5) policies that ensure a better use of management
87	87	information, including:
88	88	(A) budgets for use in planning and controlling
89	89	cost; and
90	90	(B) an audit or finance committee of the board.[;
91	91	and
92	92	[(C) uniform reporting requirements that use
93	93	"Audits of State and Local Governmental Units" as a guide on audit
94	94	working papers and that uses "Governmental Accounting and Financial
95	95	Reporting Standards."]
96	96	SECTION 6. Section 36.116(c), Water Code, is amended to
97	97	read as follows:
98	98	(c) In regulating the production of groundwater based on
99	99	tract size or acreage, a district may consider the service needs or
100	100	service area of a retail public [water] utility. For the purposes
101	101	of this subsection, "retail public [water] utility" shall have the
102	102	meaning provided by [at] Section 13.002.
103	103	SECTION 7. Sections 36.117(a) and (d), Water Code, are
104	104	amended to read as follows:
105	105	(a) A district by rule may provide an exemption from the
106	106	district's requirement to obtain [a drilling permit, an operating
107	107	permit, or] any [other] permit required by this chapter or the
108	108	district's rules.
109	109	(d) A district may cancel a previously granted exemption[,]
110	110	and may require an operating permit for or restrict production from
111	111	a well and assess any appropriate fees[,] if:
112	112	(1) [the well is located in the Hill Country Priority
113	113	Groundwater Management Area and] the groundwater withdrawals that
114	114	were exempted under Subsection (b)(1) are no longer used solely for
115	115	domestic use or to provide water for livestock or poultry;
116	116	(2) the groundwater withdrawals that were exempted
117	117	under Subsection (b)(2) are no longer used solely to supply water
118	118	for a rig that is actively engaged in drilling or exploration
119	119	operations for an oil or gas well permitted by the Railroad
120	120	Commission of Texas; or
121	121	(3) the groundwater withdrawals that were exempted
122	122	under Subsection (b)(3) are no longer necessary for mining
123	123	activities or are greater than the amount necessary for mining
124	124	activities specified in the permit issued by the Railroad
125	125	Commission of Texas under Chapter 134, Natural Resources Code.
126	126	SECTION 8. Section 36.122(e), Water Code, is amended to
127	127	read as follows:
128	128	(e) The district may impose an export [a reasonable] fee or
129	129	surcharge [for an export fee] using one of the following methods:
130	130	(1) a fee negotiated between the district and the
131	131	exporter [transporter];
132	132	(2) a rate not to exceed the equivalent of the
133	133	district's tax rate per hundred dollars of valuation for each
134	134	thousand gallons of water exported from [transferred out of] the
135	135	district or 2.5 cents per thousand gallons of water, if the district
136	136	assesses a tax rate of less than 2.5 cents per hundred dollars of
137	137	valuation; or
138	138	(3) for a fee-based district, a 50 percent [export]
139	139	surcharge, in addition to the district's production fee, for water
140	140	exported from [transferred out of] the district.
141	141	SECTION 9. Sections 36.153(a), (b), and (d), Water Code,
142	142	are amended to read as follows:
143	143	(a) Annually and subject to Subsection (c), the board shall
144	144	have an audit made of the financial condition of the district. The
145	145	district audit shall be performed according to the generally
146	146	accepted government auditing standards adopted by the American
147	147	Institute of Certified Public Accountants.
148	148	(b) Financial statements shall be prepared in accordance
149	149	with generally accepted accounting principles as adopted by the
150	150	American Institute of Certified Public Accountants. The annual
151	151	audit and other district records must be open to inspection during
152	152	regular business hours at the principal office of the district.
153	153	(d) A financially dormant district may elect not to conduct
154	154	an audit and instead submit to the executive director a financial
155	155	dormancy affidavit [instead of complying with the audit
156	156	requirements of Section 49.191].
157	157	SECTION 10. Section 36.157(a), Water Code, is amended to
158	158	read as follows:
159	159	(a) A district, or the county or counties where the district
160	160	is to be located, may pay all costs and expenses necessarily
161	161	incurred in the creation and organization of a district, including
162	162	legal fees and other incidental expenses, and may reimburse any
163	163	person, including a county, for money advanced for these purposes.
164	164	SECTION 11. Section 36.159, Water Code, is amended to read
165	165	as follows:
166	166	Sec. 36.159. GROUNDWATER CONSERVATION DISTRICT MANAGEMENT
167	167	PLAN FUNDS. The Texas Water Development Board may allocate funds
168	168	from the water assistance fund to a district to:
169	169	(1) conduct initial data collections under this
170	170	chapter;
171	171	(2) [, to] develop and implement a long-term
172	172	management plan under Section 36.1071;[,] and
173	173	(3) [to] participate in regional water plans.
174	174	SECTION 12. Section 36.204, Water Code, is amended by
175	175	adding Subsection (c) to read as follows:
176	176	(c) Sections 26.04(c)-(j), 26.05(b), (c), (d), (e), and
177	177	(g), and 26.07, Tax Code, do not apply to a tax levied and collected
178	178	under this chapter or an ad valorem tax levied and collected for the
179	179	payment of the interest on and principal of bonds issued by a
180	180	district.
181	181	SECTION 13. Sections 36.205(f) and (g), Water Code, are
182	182	amended to read as follows:
183	183	(f) A district, including a district described under
184	184	Subsection (d), may assess a production fee under Subsection (c)
185	185	and an export fee under Subsection (g), if applicable, for any water
186	186	produced under an exemption under Section 36.117 if that water is
187	187	subsequently sold to another person.
188	188	(g) A district may assess an export [a transportation] fee
189	189	under Section 36.122.
190	190	SECTION 14. Section 36.206(a), Water Code, is amended to
191	191	read as follows:
192	192	(a) A temporary board may set [user] fees authorized by this
193	193	chapter to pay for the creation and initial operation of a district,
194	194	until such time as the district creation has been confirmed and a
195	195	permanent board has been elected by a majority vote of the qualified
196	196	voters voting in the district in an election called for those
197	197	purposes.
198	198	SECTION 15. Section 36.207, Water Code, is amended to read
199	199	as follows:
200	200	Sec. 36.207. USE OF [PERMIT] FEES [AUTHORIZED BY SPECIAL
201	201	LAW]. A district may use funds obtained from administrative,
202	202	production, or export [permit] fees collected under a [pursuant to
203	203	the] special law governing the district or this chapter for any
204	204	purpose consistent with the district's approved management plan,
205	205	including, without limitation, making grants, loans, or
206	206	contractual payments to achieve, facilitate, or expedite
207	207	reductions in groundwater pumping or the development or
208	208	distribution of alternative water supplies.
209	209	SECTION 16. Section 36.251, Water Code, is amended to read
210	210	as follows:
211	211	Sec. 36.251. SUIT AGAINST DISTRICT. (a) A person, firm,
212	212	corporation, or association of persons affected by and dissatisfied
213	213	with any [provision or with any] rule or order made by a district,
214	214	including an appeal of a decision on a permit application, is
215	215	entitled to file a suit against the district or its directors to
216	216	challenge the validity of the law, rule, or order.
217	217	(b) Only the district, the applicant, and parties to a
218	218	contested case hearing may participate in an appeal of a decision on
219	219	the application that was the subject of that contested case
220	220	hearing. An appeal of a decision on a permit application must
221	221	include the applicant as a necessary party.
222	222	(c) The suit shall be filed in a court of competent
223	223	jurisdiction in any county in which the district or any part of the
224	224	district is located. The suit may only be filed after all
225	225	administrative appeals to the district are final.
226	226	SECTION 17. Section 36.3011, Water Code, is amended to read
227	227	as follows:
228	228	Sec. 36.3011. COMMISSION INQUIRY AND ACTION REGARDING
229	229	DISTRICT DUTIES. (a) In this section, "affected person" means, with
230	230	respect to a management area:
231	231	(1) an owner of land in the management area;
232	232	(2) a groundwater conservation district or subsidence
233	233	district in or adjacent to the management area;
234	234	(3) a regional water planning group with a water
235	235	management strategy in the management area;
236	236	(4) a person who holds or is applying for a permit from
237	237	a district in the management area;
238	238	(5) a person with a legally defined interest in
239	239	groundwater in the management area; or
240	240	(6) any other person defined as affected by commission
241	241	rule.
242	242	(b) An affected person may file a petition with the
243	243	commission requesting an inquiry for any of the following reasons:
244	244	(1) a district fails to submit its management plan to
245	245	the executive administrator;
246	246	(2) a district fails to participate in the joint
247	247	planning process under Section 36.108;
248	248	(3) a district fails to adopt rules;
249	249	(4) a district fails to adopt the applicable desired
250	250	future conditions adopted by the management area at a joint
251	251	meeting;
252	252	(5) a district fails to update its management plan
253	253	before the second anniversary of the adoption of desired future
254	254	conditions by the management area;
255	255	(6) a district fails to update its rules to implement
256	256	the applicable desired future conditions before the first
257	257	anniversary of the date it updated its management plan with the
258	258	adopted desired future conditions;
259	259	(7) the rules adopted by a district are not designed to
260	260	achieve the adopted desired future conditions;
261	261	(8) the groundwater in the management area is not
262	262	adequately protected by the rules adopted by a district; or
263	263	(9) the groundwater in the management area is not
264	264	adequately protected due to the failure of a district to enforce
265	265	substantial compliance with its rules.
266	266	(c) Not later than the 90th day after the date the petition
267	267	is filed, the commission shall review the petition and either:
268	268	(1) dismiss the petition if the commission finds that
269	269	the evidence is not adequate to show that any of the conditions
270	270	alleged in the petition exist; or
271	271	(2) select a review panel as provided in Subsection
272	272	(d).
273	273	(d) If the petition is not dismissed under Subsection (c),
274	274	the commission shall appoint a review panel consisting of a
275	275	chairperson and four other members. A director or general manager
276	276	of a district located outside the management area that is the
277	277	subject of the petition may be appointed to the review panel. The
278	278	commission may not appoint more than two members of the review panel
279	279	from any one district. The commission also shall appoint a
280	280	disinterested person to serve as a nonvoting recording secretary
281	281	for the review panel. The recording secretary may be an employee of
282	282	the commission. The recording secretary shall record and document
283	283	the proceedings of the panel.
284	284	(e) Not later than the 120th day after appointment, the
285	285	review panel shall review the petition and any evidence relevant to
286	286	the petition and, in a public meeting, consider and adopt a report
287	287	to be submitted to the commission. The commission may direct the
288	288	review panel to conduct public hearings at a location in the
289	289	management area to take evidence on the petition. The review panel
290	290	may attempt to negotiate a settlement or resolve the dispute by any
291	291	lawful means.
292	292	(f) In its report, the review panel shall include:
293	293	(1) a summary of all evidence taken in any hearing on
294	294	the petition;
295	295	(2) a list of findings and recommended actions
296	296	appropriate for the commission to take and the reasons it finds
297	297	those actions appropriate; and
298	298	(3) any other information the panel considers
299	299	appropriate.
300	300	(g) The review panel shall submit its report to the
301	301	commission.
302	302	(h) Not later than the 45th day after receiving the review
303	303	panel's report under this section [Section 36.1082], the executive
304	304	director or the commission shall take action to implement any or all
305	305	of the panel's recommendations. The commission may take any action
306	306	against a district it considers necessary in accordance with
307	307	Section 36.303 if the commission finds that:
308	308	(1) the district has failed to submit its management
309	309	plan to the executive administrator;
310	310	(2) the district has failed to participate in the
311	311	joint planning process under Section 36.108;
312	312	(3) the district has failed to adopt rules;
313	313	(4) the district has failed to adopt the applicable
314	314	desired future conditions adopted by the management area at a joint
315	315	meeting;
316	316	(5) the district has failed to update its management
317	317	plan before the second anniversary of the adoption of desired
318	318	future conditions by the management area;
319	319	(6) the district has failed to update its rules to
320	320	implement the applicable desired future conditions before the first
321	321	anniversary of the date it updated its management plan with the
322	322	adopted desired future conditions;
323	323	(7) the rules adopted by the district are not designed
324	324	to achieve the desired future conditions adopted by the management
325	325	area during the joint planning process;
326	326	(8) the groundwater in the management area is not
327	327	adequately protected by the rules adopted by the district; or
328	328	(9) the groundwater in the management area is not
329	329	adequately protected because of the district's failure to enforce
330	330	substantial compliance with its rules.
331	331	SECTION 18. Section 36.303(a), Water Code, is amended to
332	332	read as follows:
333	333	(a) If Section [36.108,] 36.301, 36.3011, or 36.302(f)
334	334	applies, the commission, after notice and hearing in accordance
335	335	with Chapter 2001, Government Code, shall take action the
336	336	commission considers appropriate, including:
337	337	(1) issuing an order requiring the district to take
338	338	certain actions or to refrain from taking certain actions;
339	339	(2) dissolving the board in accordance with Sections
340	340	36.305 and 36.307 and calling an election for the purpose of
341	341	electing a new board;
342	342	(3) requesting the attorney general to bring suit for
343	343	the appointment of a receiver to collect the assets and carry on the
344	344	business of the groundwater conservation district; or
345	345	(4) dissolving the district in accordance with
346	346	Sections 36.304, 36.305, and 36.308.
347	347	SECTION 19. Section 36.321, Water Code, is amended to read
348	348	as follows:
349	349	Sec. 36.321. ADDING LAND BY PETITION OF LANDOWNER. Subject
350	350	to Section 36.331, the [The] owner of land not already in
351	351	[contiguous to] a district may file with the board a notarized
352	352	petition requesting that the owner's land be included in the
353	353	district. The petition must describe the land by legal description
354	354	or by metes and bounds or by lot and block number if there is a
355	355	recorded plat of the area to be included in the district.
356	356	SECTION 20. Section 36.325, Water Code, is amended to read
357	357	as follows:
358	358	Sec. 36.325. ADDING CERTAIN TERRITORY BY PETITION. (a)
359	359	Landowners of a defined area of territory not already in a district
360	360	may file with any district a petition requesting inclusion in that
361	361	district and, subject to Section 36.331, the defined area of
362	362	territory is not required to be contiguous with that district.
363	363	(b) The petition must be signed by:
364	364	(1) a majority of the landowners in the territory;
365	365	(2) at least 50 landowners if the number of landowners
366	366	is more than 50; or
367	367	(3) the commissioners court of the county in which the
368	368	area is located if the area is identified as a priority groundwater
369	369	management area or includes the entire county.
370	370	(c) The petition must describe the land by legal description
371	371	or by metes and bounds or by lot and block number if there is a
372	372	recorded plat of the area to be included in the district.
373	373	SECTION 21. Section 36.328(a), Water Code, is amended to
374	374	read as follows:
375	375	(a) Annexation of the territory by petition filed under
376	376	Section 36.325 is not final until ratified by a majority vote of the
377	377	voters in the territory to be added. An election in the existing
378	378	district accepting the addition of land is not required.
379	379	SECTION 22. The heading to Subchapter L, Chapter 36, Water
380	380	Code, is amended to read as follows:
381	381	SUBCHAPTER L. GROUNDWATER CONSERVATION DISTRICT LOAN ASSISTANCE
382	382	FUND
383	383	SECTION 23. Section 36.371, Water Code, is amended to read
384	384	as follows:
385	385	Sec. 36.371. GROUNDWATER CONSERVATION DISTRICT LOAN
386	386	ASSISTANCE FUND. (a) The groundwater conservation district loan
387	387	assistance fund is created, to be funded by direct appropriation
388	388	and by the Texas Water Development Board from the water assistance
389	389	fund.
390	390	(b) Repayments of loans shall be deposited in the water
391	391	assistance fund.
392	392	SECTION 24. Section 36.1082, Water Code, is repealed.
393	393	SECTION 25. This Act takes effect immediately if it
394	394	receives a vote of two-thirds of all the members elected to each
395	395	house, as provided by Section 39, Article III, Texas Constitution.
396	396	If this Act does not receive the vote necessary for immediate
397	397	effect, this Act takes effect September 1, 2015.