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  S.B. No. 726
 
 
 
 
AN ACT
  relating to the creation of the Harrison County and Prairielands
  Groundwater Conservation Districts; providing authority to impose
  a tax and issue bonds and granting a limited power of eminent
  domain.
         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 Chapters 8850 and 8855 to read as
  follows:
  CHAPTER 8850. HARRISON COUNTY GROUNDWATER
  CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8850.001.  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 Harrison County Groundwater
  Conservation District.
         Sec. 8850.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district in Harrison County created under
  and essential to accomplish the purposes of Section 59, Article
  XVI, Texas Constitution.
         Sec. 8850.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 8850.023 before December 31, 2010:
               (1)  the district is dissolved December 31, 2010,
  except that:
                     (A)  any debts incurred shall be paid;
                     (B)  any assets that remain after the payment of
  debts shall be transferred to Harrison County; 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, 2014.
         Sec. 8850.004.  INITIAL DISTRICT TERRITORY. The initial
  boundaries of the district are coextensive with the boundaries of
  Harrison County, Texas.
         Sec. 8850.005.  APPLICABILITY OF OTHER GROUNDWATER
  CONSERVATION DISTRICT LAW. Except as otherwise provided by this
  chapter, Chapter 36, Water Code, applies to the district.
  [Sections 8850.006-8850.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8850.021.  APPOINTMENT OF TEMPORARY DIRECTORS.
  (a)  Not later than the 45th day after the effective date of the Act
  enacting this chapter, five temporary directors shall be appointed
  as follows:
               (1)  the Harrison County Commissioners Court shall
  appoint four temporary directors, with one 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 Harrison 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 Harrison 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 date initial directors are elected under
  Section 8850.023; or
               (2)  the fourth anniversary of the effective date of
  the Act creating this chapter.
         (e)  If initial directors have not been elected under Section
  8850.023 and the terms of the temporary directors have expired,
  successor temporary directors shall be appointed in the manner
  provided by Subsections (a) and (b) to serve terms that expire on
  the date this subchapter expires under Section 8850.026.
         Sec. 8850.022.  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 Harrison County Courthouse.
         Sec. 8850.023.  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 Harrison 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 1.5 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. 8850.024.  INITIAL DIRECTORS. (a)  If creation of the
  district is confirmed at an election held under Section 8850.023,
  the directors elected shall take office as initial directors of the
  district and serve on the board of directors until permanent
  directors are elected under Section 8850.025 or 8850.053.
         (b)  The four initial directors representing the
  commissioners precincts shall draw lots to determine which two
  shall serve a term expiring June 1 following the first regularly
  scheduled election of directors under Section 8850.025, and which
  two 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. 8850.025.  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 two directors to replace the initial directors who, under
  Section 8850.024(b), serve a term expiring June 1 following that
  election.
         Sec. 8850.026.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2014.
  [Sections 8850.027-8850.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8850.051.  DIRECTORS; TERMS. (a)  The district is
  governed by a board of five directors.
         (b)  Directors serve staggered four-year terms, with two or
  three directors' terms expiring June 1 of each even-numbered year.
         (c)  A director may serve consecutive terms.
         Sec. 8850.052.  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 one director 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. 8850.053.  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. 8850.054.  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. 8850.055.  BOARD ACTION. A majority vote of a quorum is
  required for board action. If there is a tie vote, the proposed
  action fails.
  [Sections 8850.056-8850.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8850.101.  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. 8850.102.  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. 8850.103.  PROHIBITION ON DISTRICT USE OF EMINENT
  DOMAIN POWER. The district may not exercise the power of eminent
  domain.
  [Sections 8850.104-8850.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8850.151.  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. 8850.152.  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)  4.25 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. 8850.153.  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.
  CHAPTER 8855. PRAIRIELANDS GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8855.001.  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 Prairielands Groundwater
  Conservation District.
         Sec. 8855.002.  NATURE OF DISTRICT; FINDINGS. (a)  The
  district is a groundwater conservation district initially composed
  of Ellis, Hill, Johnson, and Somervell 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. 8855.003.  DISTRICT TERRITORY. The initial boundaries
  of the district are coextensive with the boundaries of Ellis, Hill,
  Johnson, and Somervell Counties.
         Sec. 8855.004.  APPLICABILITY OF OTHER GROUNDWATER
  CONSERVATION DISTRICT LAW. Except as otherwise provided by this
  chapter, Chapter 36, Water Code, applies to the district.
         Sec. 8855.005.  CONSTRUCTION OF CHAPTER. This chapter shall
  be liberally construed to achieve the purposes expressed by this
  chapter and Chapter 36, Water Code. A power granted by this chapter
  or Chapter 36, Water Code, shall be broadly interpreted to achieve
  that intent and those purposes.
  [Sections 8855.006-8855.020 reserved for expansion]
  SUBCHAPTER B. INITIAL ORGANIZATION
         Sec. 8855.021.  APPOINTMENT OF INITIAL DIRECTORS. (a)  The
  district is governed by a board of eight initial directors
  appointed as provided by Section 8855.051(a).
         (b)  Initial 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 eight initial directors have been
  appointed, each unfilled initial director position shall be
  considered a vacancy and filled by the remaining initial directors.
         (c)  Except as provided under Subsection (b) for failure to
  appoint an initial director, if a vacancy occurs on the board in a
  position for which an initial director has previously been
  appointed, the appointing county commissioners court for the vacant
  position shall appoint a person to fill the vacancy in a manner that
  meets the representational requirements of Section 8855.051.
         (d)  To be eligible to serve as an initial director, a person
  must be a registered voter in the appointing county.
         (e)  Each initial director must qualify to serve as a
  director under Section 36.055, Water Code.
         Sec. 8855.022.  ORGANIZATIONAL MEETING OF INITIAL
  DIRECTORS. As soon as practicable after all the initial directors
  have qualified under Section 36.055, Water Code, a majority of the
  initial 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 held at a suitable location on the
  Hill College campus in Cleburne, Johnson County, Texas.
         Sec. 8855.023.  INITIAL TERMS. (a)  The two initial
  directors appointed from each county shall draw lots to determine
  which director serves an initial term expiring August 31, 2011, and
  which director serves an initial term expiring August 31, 2013.
         (b)  Each successor director shall be appointed and shall
  serve in accordance with Subchapter C.
  [Sections 8855.024-8855.050 reserved for expansion]
  SUBCHAPTER C. BOARD OF DIRECTORS
         Sec. 8855.051.  GOVERNING BODY; TERMS. (a)  Except as
  provided by Subchapter D, the district is governed by a board of
  eight directors appointed as follows:
               (1)  two directors appointed by the Ellis County
  Commissioners Court;
               (2)  two directors appointed by the Hill County
  Commissioners Court;
               (3)  two directors appointed by the Johnson County
  Commissioners Court; and
               (4)  two directors appointed by the Somervell County
  Commissioners Court.
         (b)  Directors serve staggered four-year terms, with the
  term of one director from each of the four counties expiring on
  August 31 of each odd-numbered year.
         (c)  A director may serve multiple consecutive terms.
         Sec. 8855.052.  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 under Section
  36.055, Water Code.
         Sec. 8855.053.  VACANCIES. If a vacancy occurs on the board,
  the appointing county commissioners court for the vacant position
  shall appoint a person to fill the vacancy. Section 36.051(c),
  Water Code, does not apply to the district.
         Sec. 8855.054.  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.
  [Sections 8855.055-8855.070 reserved for expansion]
  SUBCHAPTER D. DISTRICT EXPANSION
         Sec. 8855.071.  EXPANSION OF DISTRICT BOUNDARIES.
  (a)  After the effective date of the Act enacting this chapter, the
  district territory described in Section 8855.003 shall be expanded
  to include all of the territory in Navarro County, and the governing
  board described by Section 8855.051(a) shall be expanded to 10
  members and include two directors appointed by the Navarro County
  Commissioners Court, if:
               (1)  pursuant to Chapter 35, Water Code, the Texas
  Commission on Environmental Quality designates all or any portion
  of the territory in Navarro County as a priority groundwater
  management area; and
               (2)  following the designation described by
  Subdivision (1), the commissioners court of Navarro County:
                     (A)  adopts a resolution that states, "By this
  action of the Navarro County Commissioners Court, all of the
  territory in Navarro County, Texas, shall, as of the date of this
  resolution, be included in the boundaries of the Prairielands
  Groundwater Conservation District"; and
                     (B)  appoints two directors who are registered to
  vote in Navarro County to the board.
         (b)  A person appointed under this section must qualify to
  serve under Section 36.055, Water Code.
         (c)  At the first regular meeting of the board following the
  qualification of both directors, the two directors appointed under
  this section shall draw lots to determine which director serves a
  term expiring August 31 of the first odd-numbered year after the
  directors' appointment, and which director serves a term expiring
  August 31 of the next odd-numbered year.
         (d)  A director appointed under this section shall otherwise
  serve in accordance with Subchapter C.
  [Sections 8855.072-8855.100 reserved for expansion]
  SUBCHAPTER E. POWERS AND DUTIES
         Sec. 8855.101.  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
  applicable to groundwater conservation districts created under
  Section 59, Article XVI, Texas Constitution, including Chapter 36,
  Water Code.
         Sec. 8855.102.  CONTRACTS. The district may enter into a
  contract with any person, public or private, for any purpose
  authorized by law.
         Sec. 8855.103.  APPLICABILITY OF DISTRICT REGULATIONS.
  Groundwater regulation under this chapter applies to all persons
  except as exempted from permitting under Section 36.117, Water
  Code, or this chapter.
         Sec. 8855.104.  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 8855.103, the district may require a 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. 8855.105.  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
  Section 36.117(b)(1), to report groundwater withdrawals from the
  well using reasonable and appropriate reporting methods and
  frequency.
         Sec. 8855.106.  ENFORCEMENT. (a)  The district may enforce
  this chapter against any person 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 8855.152 on a person producing groundwater in violation of
  a district order or rule, including the failure or refusal to comply
  with any district order or rule relating to reducing or ceasing
  groundwater use. The purpose of a fee authorized by 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
  8855.152.
         [Sections 8855.107-8855.150 reserved for expansion]
  SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS
         Sec. 8855.151.  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. 8855.152.  DISTRICT REVENUES. (a)  The district by
  rule, resolution, or order may establish, amend, pledge, encumber,
  spend 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 revenue
  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 exempt from permitting under Section
  36.117(b)(1). 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.
         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.  (a)  Except as provided by Subsection (b) of
  this section, 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.
         (b)  Chapter 8855, Special District Local Laws Code, as added
  by Section 1 of this Act, takes effect September 1, 2009.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 726 passed the Senate on
  April 22, 2009, by the following vote:  Yeas 30, Nays 0;
  May 28, 2009, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 30, 2009, House
  granted request of the Senate; May 31, 2009, Senate adopted
  Conference Committee Report by the following vote:  Yeas 31,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 726 passed the House, with
  amendments, on May 27, 2009, by the following vote:  Yeas 148,
  Nays 0, one present not voting; May 30, 2009, House granted request
  of the Senate for appointment of Conference Committee;
  May 31, 2009, House adopted Conference Committee Report by the
  following vote:  Yeas 144, Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor