H.B. No. 1498
 
 
 
 
AN ACT
  relating to the creation of the Panola County Groundwater
  Conservation District; providing authority to impose a tax and
  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 8819 to read as follows:
  CHAPTER 8819. PANOLA COUNTY GROUNDWATER
  CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8819.001.  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 Panola County Groundwater
  Conservation District.
         Sec. 8819.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district in Panola County created under
  and essential to accomplish the purposes of Section 59, Article
  XVI, Texas Constitution.
         Sec. 8819.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held on or before December 31, 2008, the district is
  dissolved on that date, except that:
               (1)  any debts incurred shall be paid;
               (2)  any assets that remain after the payment of debts
  shall be transferred to Panola County; and
               (3)  the organization of the district shall be
  maintained until all debts are paid and remaining assets are
  transferred.
         Sec. 8819.004.  INITIAL DISTRICT TERRITORY. The initial
  boundaries of the district are coextensive with the boundaries of
  Panola County, Texas.
         Sec. 8819.005.  APPLICABILITY OF OTHER GROUNDWATER
  CONSERVATION DISTRICT LAW. Except as otherwise provided by this
  chapter, Chapter 36, Water Code, applies to the district.
  [Sections 8819.006-8819.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8819.021.  APPOINTMENT OF TEMPORARY DIRECTORS. (a)
  Not later than the 45th day after the effective date of this
  chapter, nine temporary directors shall be appointed as follows:
               (1)  the Panola County Commissioners Court shall
  appoint eight temporary directors, with two of the temporary
  directors appointed from each of the four commissioners precincts
  in the county to represent the precincts in which the temporary
  directors reside; and
               (2)  the county judge of Panola County shall appoint
  one temporary director who resides in the district to represent the
  district at large.
         (b)  Of the temporary directors, at least one director must
  represent rural water suppliers in the district, one must represent
  agricultural interests in the district, and one must represent
  industrial interests in the district.
         (c)  If there is a vacancy on the temporary board of
  directors of the district, the Panola County Commissioners Court
  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 election of initial directors under Section
  8819.023; or
               (2)  the date this subchapter expires under Section
  8819.026.
         Sec. 8819.022.  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 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 Panola County Courthouse.
         Sec. 8819.023.  CONFIRMATION AND INITIAL DIRECTORS'
  ELECTION. (a) The temporary directors shall hold an election to
  confirm the creation of the district and to elect the initial
  directors of the district.
         (b)  The temporary directors shall have placed on the ballot
  the names of all candidates for an initial director's position who
  have filed an application for a place on the ballot as provided by
  Section 52.003, Election Code.
         (c)  The ballot must be printed to provide for voting for or
  against the proposition: "The creation of the Panola County
  Groundwater Conservation District."
         (d)  If the district levies a maintenance tax for payment of
  expenses, the ballot must be printed to provide for voting for or
  against the proposition: "The levy of a maintenance tax at a rate
  not to exceed ____ cents for each $100 of assessed valuation."
         (e)  Section 41.001(a), Election Code, does not apply to an
  election held under this section.
         (f)  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. The provision of
  Section 36.017(d), Water Code, relating to the election of
  permanent directors does not apply to an election under this
  section.
         Sec. 8819.024.  INITIAL DIRECTORS. (a) If creation of the
  district is confirmed at an election held under Section 8819.023,
  the initial directors of the district serve on the board of
  directors until permanent directors are elected under Section
  8819.025 or 8819.053.
         (b)  The two initial directors representing each of the four
  commissioners precincts shall draw lots to determine which of the
  two directors shall serve a term expiring June 1 following the first
  regularly scheduled election of directors under Section 8819.025,
  and which of the two directors shall serve a term expiring June 1
  following the second regularly scheduled election of directors.
  The at-large director shall serve a term expiring June 1 following
  the second regularly scheduled election of directors.
         Sec. 8819.025.  INITIAL ELECTION OF PERMANENT DIRECTORS. On
  the uniform election date prescribed by Section 41.001, Election
  Code, in May of the first even-numbered year after the year in which
  the district is authorized to be created at a confirmation
  election, an election shall be held in the district for the election
  of four directors to replace the initial directors who, under
  Section 8819.024(b), serve a term expiring June 1 following that
  election.
         Sec. 8819.026.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2012.
  [Sections 8819.027-8819.050 reserved for expansion]
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 8819.051.  DIRECTORS; TERMS. (a) The district is
  governed by a board of nine directors.
         (b)  Directors serve staggered four-year terms, with four or
  five directors' terms expiring June 1 of each even-numbered year.
         (c)  A director may serve consecutive terms.
         Sec. 8819.052.  METHOD OF ELECTING DIRECTORS: COMMISSIONERS
  PRECINCTS. (a) The directors of the district shall be elected
  according to the commissioners precinct method as provided by this
  section.
         (b)  One director shall be elected by the voters of the
  entire district, and two directors shall be elected from each
  county commissioners precinct by the voters of that precinct.
         (c)  Except as provided by Subsection (e), to be eligible to
  be a candidate for or to serve as director at large, a person must be
  a registered voter in the district. To be a candidate for or to
  serve as director from a county commissioners precinct, a person
  must be a registered voter of that precinct.
         (d)  A person shall indicate on the application for a place
  on the ballot:
               (1)  the precinct that the person seeks to represent;
  or
               (2)  that the person seeks to represent the district at
  large.
         (e)  When the boundaries of the county commissioners
  precincts are redrawn after each federal decennial census to
  reflect population changes, a director in office on the effective
  date of the change, or a director elected or appointed before the
  effective date of the change whose term of office begins on or after
  the effective date of the change, shall serve in the precinct to
  which elected or appointed even though the change in boundaries
  places the person's residence outside the precinct for which the
  person was elected or appointed.
         Sec. 8819.053.  ELECTION DATE. The district shall hold an
  election to elect the appropriate number of directors on the
  uniform election date prescribed by Section 41.001, Election Code,
  in May of each even-numbered year.
         Sec. 8819.054.  COMPENSATION. (a) Sections 36.060(a), (b),
  and (d), Water Code, do not apply to the district.
         (b)  A director is entitled to receive compensation of not
  more than $50 a day for each day the director actually spends
  performing the duties of a director. The compensation may not
  exceed $3,000 a year.
         (c)  The board may authorize a director to receive
  reimbursement for the director's reasonable expenses incurred
  while engaging in activities on behalf of the board.
         Sec. 8819.055.  BOARD ACTION. A majority vote of a quorum is
  required for board action. If there is a tie vote, the proposed
  action fails.
  [Sections 8819.056-8819.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8819.101.  GENERAL POWERS. 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.
         Sec. 8819.102.  GROUNDWATER WELLS UNDER RAILROAD COMMISSION
  JURISDICTION. (a) Except as provided by this section, a
  groundwater well drilled or operated within the district under a
  permit issued by the Railroad Commission of Texas is under the
  jurisdiction of the railroad commission, and, in respect to such a
  well, the district has only the authority provided by Chapter 36,
  Water Code.
         (b)  Groundwater produced in an amount authorized by a
  railroad commission permit may be used within or exported from the
  district without a permit from the district.
         (c)  To the extent groundwater is produced in excess of
  railroad commission authorization, the holder of the railroad
  commission permit:
               (1)  shall apply to the district for the appropriate
  permit for the excess production; and
               (2)  is subject to the applicable regulatory fees.
         Sec. 8819.103.  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. 8819.104.  PROHIBITION ON DISTRICT USE OF EMINENT
  DOMAIN POWERS. The district may not exercise the power of eminent
  domain.
         Sec. 8819.105.  REGIONAL COOPERATION. (a) In this section,
  "designated groundwater management area" means an area designated
  as a groundwater management area under Section 35.004, Water Code.
         (b)  To provide for regional continuity, the district shall
  comply with the requirements of Section 36.108, Water Code, and:
               (1)  participate as needed in coordination meetings
  with other groundwater conservation districts in its designated
  groundwater management area;
               (2)  coordinate the collection of data with other
  groundwater conservation districts in its designated groundwater
  management area in such a way as to achieve relative uniformity of
  data type and quality;
               (3)  coordinate efforts to monitor water quality with
  other groundwater conservation districts in its designated
  groundwater management area, local governments, and state
  agencies;
               (4)  provide groundwater level data to other
  groundwater conservation districts in its designated groundwater
  management area;
               (5)  investigate any groundwater or aquifer pollution
  with the intention of locating its source;
               (6)  notify other groundwater conservation districts
  in its designated groundwater management area and all appropriate
  agencies of any groundwater pollution detected;
               (7)  annually provide to other groundwater
  conservation districts in its designated groundwater management
  area an inventory of water wells and an estimate of groundwater
  production in the district; and
               (8)  include other groundwater conservation districts
  in its designated groundwater management area on the mailing lists
  for district newsletters, seminars, public education events, news
  articles, and field days.
  [Sections 8819.106-8819.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8819.151.  LIMITATION ON TAXES. The district may not
  impose ad valorem taxes at a rate that exceeds 1.5 cents on each
  $100 valuation of taxable property in the district.
         Sec. 8819.152.  FEES. (a) The board by rule may impose
  reasonable fees on each well:
               (1)  for which a permit is issued by the district; and
               (2)  that is not exempt from district regulation.
         (b)  A production fee 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 board shall base the initial production fee on the
  criteria listed in Subsection (b)(2). The initial production fee:
               (1)  may not exceed:
                     (A)  25 cents per acre-foot for water used for
  agricultural irrigation; or
                     (B)  6.75 cents per thousand gallons for water
  used for any other purpose; and
               (2)  may be increased at a cumulative rate not to exceed
  three percent per year.
         (d)  In addition to the production fee authorized under this
  section, the district may assess an export fee on groundwater from a
  well that is produced for transport outside the district.
         (e)  Fees authorized by this section may be:
               (1)  assessed annually;
               (2)  used to pay the cost of district operations; and
               (3)  used for any other purpose allowed under Chapter
  36, Water Code.
         Sec. 8819.153.  LIMITATION ON INDEBTEDNESS. The district
  may issue bonds and notes under Subchapter F, Chapter 36, Water
  Code, except that the total indebtedness created by that issuance
  may not exceed $500,000 at any time.
         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, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1498 was passed by the House on May 2,
  2007, by the following vote:  Yeas 147, Nays 0, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 1498 on May 24, 2007, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 1498 on May 26, 2007, by the following vote:  Yeas 140,
  Nays 0, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1498 was passed by the Senate, with
  amendments, on May 21, 2007, by the following vote:  Yeas 31, Nays
  0; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  1498 on May 26, 2007, by the following vote:  Yeas 30, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor