Texas 2019 86th Regular

Texas House Bill HB3781 Introduced / Bill

Filed 03/07/2019

                    86R17084 TYPED
 By: Nevárez H.B. No. 3781


 A BILL TO BE ENTITLED
 AN ACT
 relating to the creation of the Val Verde County Groundwater
 Conservation District; providing authority to issue bonds;
 providing authority to impose fees, surcharges, 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 8872 to read as follows:
 CHAPTER 8872. VAL VERDE COUNTY GROUNDWATER CONSERVATION DISTRICT
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 8872.001.  DEFINITIONS. (a) Except as provided by
 Subsection (b), the definitions in Section 36.001, Water Code,
 apply to this chapter.
 (b)  In this chapter:
 (1)  "Aquifer" means that part of the Edwards-Trinity
 (Plateau) Aquifer located in Val Verde County.
 (2)  "Board" means the board of directors of the
 district.
 (3)  "Affected person" means a registered voter of Val
 Verde County or a person owning land in Val Verde County.
 (4)  "City" means the City of Del Rio.
 (5)  "Commissioners court" means the Val Verde County
 Commissioners Court.
 (6)  "Development board" means the Texas Water
 Development Board.
 (7)  "Director" means a member of the board.
 (8)  "District" means the Val Verde County Groundwater
 Conservation District.
 (9)  "Domestic use" means the use of groundwater in the
 district by a member of a well owner's household or by household
 employees, tenants, licensees, or guests for the following
 purposes:
 (A)  drinking, washing, or culinary activities;
 (B)  irrigation of:
 (i)  lawns;
 (ii)  family gardens; or
 (iii)  orchards, if the produce of the
 orchard is used only for household consumption;
 (C)  filling or maintaining swimming pools,
 decorative ponds, or fountains located on the well owner's
 property; and
 (D)  drinking water for domestic animals not
 raised, maintained, or sold for commercial purposes.
 (10)  "Existing well" means a well that is completed to
 produce groundwater in Val Verde County on or before January 1,
 2019. The term includes a well that is reworked or repaired after
 January 1, 2019, to restore the well's historic production
 capacity, provided that the reworking or repair does not enlarge
 the diameter of the well bore as the well bore existed on January 1,
 2019.
 (11)  "Historic use" means the production and
 beneficial use of groundwater from an existing well in any calendar
 year before January 1, 2019.
 (12)  "Political subdivision" means a governmental
 entity of this state, including a county, municipality, state
 agency, or district or authority created under Section 52, Article
 III, or Section 59, Article XVI, Texas Constitution. The term also
 includes a nonprofit water supply corporation created under Chapter
 67, Water Code.
 (13)  "Retail public utility" has the meaning assigned
 by Section 13.002, Water Code.
 (14)  "Rural area" means an area that is located:
 (A)  inside the boundaries of the district; and
 (B)  outside the corporate boundaries and
 extraterritorial jurisdiction of a municipality in the district.
 Sec. 8872.002.  NATURE OF DISTRICT; PURPOSE. (a) The
 district is a groundwater conservation district in Val Verde County
 created under and essential to accomplish the purposes of Section
 59, Article XVI, Texas Constitution, including:
 (1)  the permitting, recharge, conservation,
 protection, and prevention of the waste of groundwater in Val Verde
 County;
 (2)  the control of subsidence caused by the
 unreasonable withdrawal of groundwater;
 (3)  the regulation of transporting groundwater
 outside the boundaries of the district;
 (4)  the regulation of groundwater production and the
 implementation of drought management and conservation plans for the
 reduction of drawdown when conditions warrant action to protect
 spring flow and base flow;
 (5)  the maintenance of sufficient, good quality river
 flows during periods of drought and low-flow to protect endangered
 species and the habitats of endangered species;
 (6)  the development, with the assistance of the Texas
 Water Development Board, the Texas Parks and Wildlife Department,
 and the Texas Commission on Environmental Quality, of empirical
 groundwater flow models to inform the District's groundwater
 management; and
 (7)  the management of the issuance of permits by
 requiring studies and groundwater availability model analyses of
 permit applications that include the use of conservation triggers
 to mitigate the impact on spring flow, base flow, and drawdown.
 (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 benefit from the works and projects
 that are to be accomplished by the district under powers conferred
 by Section 59, Article XVI, Texas Constitution, this chapter, and
 Chapter 36, Water Code.
 Sec. 8872.003.  CONFIRMATION ELECTION REQUIRED. If the
 creation of the district is not confirmed at a confirmation
 election held under Section 8872.023 before September 1, 2021:
 (1)  the district is dissolved September 1, 2021,
 except that:
 (A)  any debts incurred shall be paid;
 (B)  any assets that remain after the payment of
 debts shall be transferred to Val Verde County and the city in
 proportion to the amount each entity has contributed to the costs of
 the confirmation election and district operations; 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, 2022.
 Sec. 8872.0034.  INITIAL DISTRICT TERRITORY. The boundaries
 of the district are coextensive with the boundaries of Val Verde
 County.
 Sec. 8872.0035.  MINIMUM STANDARDS. The Texas Water
 Development Board shall develop and set minimum flow and spring
 discharge standards for the District based on the best available
 science, historical data, and any other available data necessary to
 protect the property values of riverside landowners and endangered
 or threatened species in the District.
 SUBCHAPTER A-1. TEMPORARY PROVISIONS
 Sec. 8872.021.  APPOINTMENT OF TEMPORARY DIRECTORS;
 VACANCIES; TERMS. (a) As soon as practicable after the effective
 date of the Act enacting this chapter, nine temporary directors
 shall be appointed as follows:
 (1)  three temporary directors shall be appointed by
 the commissioners court;
 (2)  three temporary directors shall be appointed by
 the city council of the city; and
 (3)  three temporary directors shall be appointed
 jointly by the commissioners court, city council, and the mayor of
 the city;
 (b)  An individual appointed to serve as a temporary director
 must be at least 18 years of age and be:
 (1)  A registered voter of Val Verde County, or;
 (2)  A landowner in Val Verde County.
 (c)  If there is a vacancy on the temporary board of
 directors of the district, the remaining temporary directors shall
 appoint a person to fill the vacancy in a manner that meets the
 representational requirements of this section.
 (d)  Temporary directors serve until the earlier of:
 (1)  the date the temporary directors become initial
 directors under Section 8872.024; or
 (2)  the date this chapter expires under Section
 8872.003.
 (e)  Before the confirmation election under Section
 8872.023, the presiding officer of the district or the presiding
 officer's designee may represent the district in the joint planning
 process under Section 36.108, Water Code, and shall be considered a
 voting district representative.
 Sec. 8872.022.  ORGANIZATIONAL MEETING OF TEMPORARY
 DIRECTORS. (a) 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 within the
 district agreeable to a majority of the directors. If an agreement
 on location cannot be reached, the organizational meeting shall be
 at the Val Verde County Courthouse.
 (b)  At the organizational meeting described by Subsection
 (a), the temporary directors shall:
 (1)  elect a president as presiding officer, vice
 president, secretary, and treasurer;
 (2)  schedule the confirmation election described by
 Section 8872.023; and
 (3)  notify the applicable groundwater management area
 of the district's creation, subject to confirmation under Section
 8872.023.
 Sec. 8872.023.  CONFIRMATION ELECTION. (a) The temporary
 board shall order an election to be held on the first available
 uniform election date in November following January 1, 2019, to
 confirm the creation of the district and authorize the collection
 of taxes.
 (b)  The ballot for the election must be printed to permit
 voting for or against the following proposition: "The creation of
 the Val Verde County Groundwater Conservation District and the
 imposition of an ad valorem tax in the district at a rate not to
 exceed three cents for each $100 of assessed valuation."
 (c)  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.
 (d)  If the district's creation is not confirmed at an
 election held under this section, the temporary directors may order
 one or more subsequent elections to be held to confirm the creation
 of the district not earlier than the first anniversary of the
 preceding confirmation election. If the district's creation is not
 confirmed at an election held under this section before September
 1, 2021, the district is dissolved in accordance with Section
 8872.003.
 (e)  The costs of an election held under this chapter shall
 be paid equally by Val Verde County and the city.
 Sec. 8872.024.  INITIAL DIRECTORS. (a) If the creation of
 the district is confirmed at an election held under Section
 8872.023, the temporary directors become the initial directors and
 serve until permanent directors are elected or appointed under
 Section 8872.052.
 (b)  The initial directors of the board shall draw lots to
 determine which five 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 four 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.
 (c)  The initial directors shall provide notice to the
 members of the groundwater management area in which the district is
 located that the creation of the district is confirmed.
 Sec. 8872.025.  EXPIRATION OF SUBCHAPTER. This subchapter
 expires September 1, 2021.
 SUBCHAPTER B. BOARD OF DIRECTORS
 Sec. 8872.051.  COMPOSITION OF BOARD. The district is
 governed by a board of nine directors.
 Sec. 8872.052.  TERMS; APPOINTMENT OF DIRECTORS;
 QUALIFICATIONS. (a) Directors serve staggered four-year terms,
 with five or four terms expiring December 1 every other year.
 Directors are appointed as follows:
 (1)  one director is appointed from each of the three
 management zones by the Commissioners court;
 (2)  one director is appointed from each of the three
 management zones by the mayor and the city council;
 (3)  one director is appointed from each of the three
 management zones jointly by the Commissioners court, mayor of the
 city, and the city council.
 (b)  To be appointed under this section, a person must be at
 least 18 years of age and:
 (1)  a registered voter of Val Verde County; and
 (2)  own property within the management zone the
 director is appointed to represent.
 (d)  A director may serve consecutive terms.
 Sec. 8872.053.  VACANCIES. (a) If there is a vacancy on the
 board, a majority of the board shall appoint a person to fill the
 vacancy for the remainder of the term of the vacant director place.
 The person appointed to fill the vacancy must meet the
 qualifications under Section 8872.052 for the vacant place.
 (b)  If the board has not filled a vacancy before the 90th day
 after the date of the vacancy, the county judge of Val Verde County
 and the mayor of the city shall jointly appoint a person that meets
 the qualifications under Section 8872.052 for the vacant place to
 serve as director for the remainder of the term being filled.
 Sec. 8872.054.  COMPENSATION. (a) A director is not
 entitled to receive compensation for performing the duties of a
 director.
 (b)  The board may authorize a director to receive
 reimbursement for the director's reasonable and actual expenses
 incurred while engaging in activities inside or outside the
 district on behalf of the board.
 Sec. 8872.055.  ELECTION OF BOARD OFFICERS. (a) At the
 first meeting of the board in each calendar year, the board shall
 elect directors to serve as the president, vice president,
 secretary, and treasurer.
 (b)  The president shall serve as the presiding officer of
 the board.
 (c)  The treasurer shall serve as the financial officer of
 the district.
 SUBCHAPTER C. POWERS AND DUTIES
 Sec. 8872.101.  GENERAL POWERS. (a) Except as otherwise
 provided by this chapter, the district has all of the rights,
 powers, privileges, functions, and duties provided by the general
 law of this state applicable to groundwater conservation districts
 created under Section 59, Article XVI, Texas Constitution,
 including Chapter 36, Water Code.
 (b)  Before confirmation of the district, the district's
 powers are limited to:
 (1)  performance of the duties necessary to hold an
 election to confirm the creation of the district;
 (2)  registration of existing wells that are not exempt
 from the district requirement to obtain a permit under this chapter
 or Chapter 36, Water Code;
 (3)  collection of annual groundwater production
 reports from wells that are not exempt from the district
 requirement to obtain a permit under this chapter or Chapter 36,
 Water Code; and
 (4)  participation in joint planning with other
 districts as provided by Section 8872.021(e).
 (c)  The district shall adopt rules and prescribe forms
 necessary to implement Subsections (b)(2) and (3).
 (d)  Section 36.121, Water Code, does not apply to the
 district.
 Sec. 8872.102  APPEAL OF ACTION BY THE DISTRICT. (a)
 Section 36.066, Water Code, does not apply to the district.
 (b)  Not later than the 120th day after the date on which the
 district takes an official action, an affected person must file a
 petition for review with the Development board to appeal the
 validity of the district's action.
 (c)  Upon receipt of the petition, the Development board
 shall conduct an administrative review and make a determination as
 to whether the contested action taken by the district meets the
 requirements of this chapter.
 (d)  The Development board must complete and deliver the
 determination described in subsection (c) to the District and
 appealing party not later than the 120th day after the date the
 Development board receives a copy of the petition.
 (e)  The Development board's determination under subsection
 (c) is final and non-appealable in the courts of this state except
 to the extent the official action fails to conform with laws
 relating to conflicts of interest, abuse of office, or
 constitutional obligations.
 Sec. 8872.103.  NO EMINENT DOMAIN POWER. The district may
 not exercise the power of eminent domain.
 Sec. 8872.104.  PERMITS: RULES. (a) The district shall
 adopt rules to:
 (1)  require a person to obtain a permit from the
 district to drill and produce groundwater from a well, including an
 existing well, unless the well is exclusively for agricultural,
 domestic, or household use or is otherwise exempt from permitting
 under this chapter or Chapter 36, Water Code;
 (2)  regulate the terms of a transfer of groundwater
 out of the district;
 (3)  regulate the spacing of wells drilled after
 September 1, 2019, to prevent unreasonable adverse interference
 with other wells;
 (4)  provide for the uniform and nondiscriminatory
 reduction or curtailment of the production of groundwater by all
 permit holders the district, if necessary, to protect spring flow
 and base flow and reduce aquifer drawdown;
 (5)  provide for permit-specific provisions requiring
 production curtailment or the injection of a nontoxic tracer dye as
 part of a hydrologic study, if necessary, to protect spring flow and
 base flow and reduce aquifer drawdown;
 (6)  limit groundwater production:
 (A)  by the spacing of wells;
 (B)  by basing production on acreage or tract
 size; or
 (C)  for a public water supplier, by basing
 production on the service area of the supplier; and
 (7)  require the owner of a well that is not exempt from
 the district requirement to obtain a permit under this chapter or
 Chapter 36, Water Code, to report to the district in January of each
 year the annual production of groundwater from the well based on
 metered production.
 (b)  The terms of a permit that authorizes the production of
 groundwater for transfer out of the district for beneficial use
 must be consistent with applicable law, including Section 36.122,
 Water Code, and may not be more restrictive than the terms of a
 permit authorizing the production of groundwater for beneficial use
 inside the district.
 (c)  The district may establish permit conditions and
 limitations as provided by Section 36.122, Water Code.
 Sec. 8872.105.  PERMITS: LANDOWNERS GENERALLY. The district
 shall grant a permit for commercial use that authorizes a person to
 drill one or more wells not to exceed 12 inches in diameter on land
 owned or controlled by the person through a lease or other legal
 right.
 Sec. 8872.106.  PERMITS: CITY. The district shall grant the
 city permits in the city's name that authorize the city to pump from
 all wells operated or controlled by the city a cumulative volume of
 groundwater of 18,400 acre-feet per year.
 Sec. 8872.107.  PERMITS: RETAIL PUBLIC UTILITY. (a) The
 district shall grant a permit to a retail public utility in the
 district or to a political subdivision other than the city that is
 providing water or sewer service on or before the effective date of
 the Act enacting this chapter. The permit must authorize the
 production of a cumulative volume of groundwater from the wells
 owned by the entity in an amount equal to the amount of groundwater
 required to meet the entity's current and projected needs as
 determined under Section 13.250, Water Code.
 (b)  The permitted entity may not resell the groundwater
 produced under the permit to any person for use or resale outside
 the entity's service area, including the area covered by a
 certificate of convenience and necessity, and must put the water to
 beneficial use within the entity's service area, except with the
 written approval of the district.
 Sec. 8872.108.  PERMITS: EXISTING COMMERCE AND INDUSTRY.
 The district shall grant a permit for the production of groundwater
 from an existing well that is beneficially used for commercial or
 industrial purposes outside the limits or the extraterritorial
 jurisdiction of the city. The permit must authorize the production
 of a cumulative volume of groundwater that is equal to the maximum
 historic use as proven by the person seeking the permit.
 Sec. 8872.109.  WELL REGISTRATION. A permit issued under
 this chapter authorizing the production of groundwater from the
 aquifer must also authorize the drilling and operation of a well or
 wells in the aquifer, and must require the permit holder to:
 (1)  register each well with the district at no cost;
 and
 (2)  file a copy of the well driller's log with the
 district on completion of each well.
 Sec. 8872.110.  PROPERTY RIGHTS. (a) A permit issued by the
 district for the drilling, operation, or production of a well is
 appurtenant to the real property on which the well is located.
 Ownership of the groundwater, or the right to use and produce the
 groundwater authorized by the permit, may be sold, leased,
 assigned, or otherwise transferred by the owner, provided that the
 rights granted by the permit to drill a well and to produce
 groundwater are exercised on the real property described in the
 permit based on the actual production authorized by the permit.
 (b)  Except as provided by this chapter, groundwater
 produced as authorized by a permit, once captured at the wellhead,
 may be beneficially used for any lawful purpose at any location,
 whether on or off the real property to which the permit is attached,
 provided that any beneficial use outside the boundaries of the
 district is authorized by a transport permit issued by the
 district.
 Sec. 8872.111.  REDUCTION AND CURTAILMENT. (a) The board by
 rule may provide for the reduction and curtailment of the
 production of groundwater from a well permitted under this chapter
 to protect spring flow and base flow and reduce drawdown in
 accordance with Sections 8872.104(a)(4) and (5) only if river flow
 and spring discharge conditions fall below the minimum standards
 described by Sec. 8872.0035.
 (b)  To implement a reduction or curtailment, the district
 may, to the extent not otherwise authorized by Section 36.101(a),
 Water Code, limit groundwater production as provided by district
 rules.
 (c)  Rules adopted by the board requiring a reduction or
 curtailment of the production of groundwater must be applied on a
 proportional, uniform, and nondiscriminatory basis to all
 production, unless the cause or condition requiring reduction or
 curtailment is limited to a management zone created under Section
 8872.112.
 (d)  This Section does not apply to provisions described by
 Sec. 8872.104(a)(5) requiring the reduction or curtailment of the
 production of groundwater for a specific well or permit.
 Sec. 8872.112.  MANAGEMENT ZONES. (a) The district shall
 establish three management zones to better manage the groundwater
 resources and may adopt different rules to regulate production from
 the management zones based on acreage, tract size, or the service
 area of a public water supplier. The boundaries of the management
 zones shall be established as follows:
 (1)  The San Felipe Springs Management Zone shall
 comprise all of the territory contained within the following
 described area:
 BEGINNING: At the point at which U.S. Highway 77 intersects
 with the Eastern boundary of Val Verde County;
 THENCE: Along the Southeasterly right-of-way line of U.S.
 Route 77 to the junction of U.S. Route 90 and U.S. Route 377;
 THENCE: Along the Easterly right-of-way line of U.S. Route 90
 to the junction of U.S. Route 90 and Texas Highway 349, to the
 Southwestern boundary of Val Verde County;
 THENCE: Eastward along the border of Val Verde County, and in
 a Northward direction along the border of Val Verde County to the
 POINT OF BEGINNING.
 (2)  The Devil's River Management Zone shall comprise
 all of the territory contained within the following described area:
 BEGINNING: At the point at which U.S. Highway 77 intersects
 with the Eastern boundary of Val Verde County;
 THENCE: Along the Southeasterly right-of-way line of U.S.
 Route 77 to the junction of U.S. Route 90 and U.S. Route 377;
 THENCE: Along the Northerly right-of-way of U.S. Route 90 to
 the junction of U.S. Route 90 and Texas Ranch to Market Road 1024;
 THENCE: Along the Northerly right-of-way of Texas Ranch to
 Market Road 1024 to the point that Texas Ranch to Market Road 1024
 bears in a Westerly direction at an approximate latitude of
 30.188886 and an approximate longitude of -101.331504;
 THENCE: Northwesterly to the Northern boundary of Val Verde
 County;
 THENCE: Easterly along the boundary of Val Verde County and
 Southerly along the boundary of Val Verde County to the POINT OF
 BEGINNING.
 (3)  The Pecos River Management Zone shall comprise all
 of the territory contained within the following described area:
 BEGINNING: At the point Texas Highway 349 intersects with the
 Southeastern boundary of Val Verde County;
 THENCE: Northwesterly along the boundary of Val Verde County;
 continuing along the county's border until the Western boundary of
 the Devil's River Management Zone;
 THENCE: Southerly along the Western Boundary of the Devil's
 River Management Zone to the POINT OF BEGINNING.
 (b)  The district must regulate the production of
 groundwater in a management zone on a proportional, uniform, and
 nondiscriminatory basis, except such permit or well-specific
 actions as may be required by Sec. 8872.104(a)(5).
 (c)  The Devil's River is designated a river segment of
 unique ecological value as described by Water Code Section
 16.051(f).
 Sec. 8872.113.  PERMIT RENEWAL. (a) Except as provided by
 Subsection (b), the district shall without a hearing renew or
 approve an application to renew an operating permit before the date
 on which the permit expires, provided that:
 (1)  the application, if required by the district, is
 submitted in a timely manner and accompanied by any required fees in
 accordance with district rules; and
 (2)  the permit holder is not requesting a change
 related to the renewal that would require a permit amendment under
 district rules.
 (b)  The district is not required to renew a permit under
 this section if the applicant:
 (1)  is delinquent in paying a fee required by the
 district;
 (2)  is subject to a pending enforcement action for a
 substantive violation of a district permit, order, or rule that has
 not been settled by agreement with the district or a final
 adjudication; or
 (3)  has not paid a civil penalty or has otherwise
 failed to comply with an order resulting from a final adjudication
 of a violation of a district permit, order, or rule.
 (c)  If the district is not required to renew a permit under
 Subsection (b)(2), the permit remains in effect until the final
 settlement or adjudication on the matter of the substantive
 violation.
 Sec. 8872.114.  AGRICULTURAL, HOUSEHOLD, AND DOMESTIC USE
 UNRESTRICTED; LIMITATION ON PERMIT REQUIREMENTS. (a) The District
 may not require a person to install a meter or obtain a permit from
 the district for a well used to produce groundwater solely inside
 the district for domestic, household, or agricultural use. The
 District shall require a person to install a meter and obtain a
 permit from the district for commercial use, industrial use, or
 transport outside the District.
 (b)  The District shall not restrict the production of a well
 solely for domestic, household, or agricultural use.
 (c)  An owner of a well for domestic, household, or
 agricultural use described by this section shall register the well
 with the district.
 (d)  The district may not require a permit or a permit
 amendment for the maintenance or repair of a well that is not exempt
 from permitting under this chapter or Chapter 36, Water Code, if the
 maintenance or repair does not make the well capable of producing an
 amount of groundwater that is greater than the production amounts
 provided by the well's permit.
 (e)  Nothing in Subsection (a) prevents the applicability in
 the district of Section 36.113(a), Water Code.
 Sec. 8872.115.  PROHIBITION ON DISTRICT PURCHASE, SALE,
 TRANSPORT, OR DISTRIBUTION OF WATER. The district may not
 purchase, sell, transport, or distribute surface water or
 groundwater for any purpose.
 Sec. 8872.116.  RIGHT TO ENTER LAND. Section 36.123, Water
 Code, which authorizes a district's employees or agents to go on and
 inspect the property of a landowner, applies to the district
 provided that:
 (1)  access is subject to written notice to the
 landowner; and
 (2)  the district's employees and agents are prohibited
 from carrying firearms on the landowner's property.
 Sec. 8872.117.  WATER CONSERVATION INITIATIVE. The district
 may create a water conservation initiative as provided by Section
 11.32, Tax Code.
 Sec. 8872.118.  REGIONAL GROUNDWATER PLANNING. (a) The
 district shall obtain or develop groundwater models for use in
 planning and management of the aquifer and to assist the district in
 the district's role as a member of the groundwater management area
 in which the district is located.
 (b)  The district, to the extent possible and through the
 designated representative for the groundwater management area in
 which the district is located, shall diligently pursue an increase
 in the managed available groundwater and an improvement in the
 desired future conditions for the aquifer as compared to those
 indicators for the aquifer on January 1, 2019.
 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
 Sec. 8872.151.  LIMITATION ON TAXES. The district may not
 impose ad valorem taxes at a rate that exceeds three cents on each
 $100 valuation of taxable property in the district.
 Sec. 8872.152.  APPLICABILITY OF CERTAIN TAX PROVISIONS.
 (a) Sections 26.04, 26.05, 26.06, and 26.07, Tax Code, do not apply
 to a tax imposed by the district.
 (b)  Section 49.236, Water Code, as added by Chapter 248
 (H.B. 1541), Acts of the 78th Legislature, Regular Session, 2003,
 applies to the district.
 Sec. 8872.153.  FEES. (a) The board by rule may impose
 uniform, reasonable, equitable, and nondiscriminatory annual
 production fees on the amount of permitted water actually produced
 from each well.
 (b)  A production fee must be consistent with Section 36.205,
 Water Code, and 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)  The district may assess a uniform and nondiscriminatory
 export fee consistent with Section 36.122, Water Code, on
 groundwater that is produced from a well inside the district and
 transferred outside the district.
 (d)  The district may set fees by rule or resolution relating
 to administrative acts of the district, including filing
 applications, reviewing and processing permits, conducting permit
 hearings, providing public notice, and paying costs of legal fees,
 expert fees, and hearing facility rental fees. The district may not
 assess a fee in an amount greater than $250 for processing permits.
 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, 2019.