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  S.B. No. 2497
 
 
 
 
AN ACT
  relating to the creation of the North Texas Groundwater
  Conservation District; providing authority to 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 8856 to read as follows:
  CHAPTER 8856. NORTH TEXAS GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8856.001.  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 North Texas Groundwater
  Conservation District.
         Sec. 8856.002.  NATURE OF DISTRICT; FINDINGS. (a)  The
  district is a groundwater conservation district in Collin, Cooke,
  and Denton 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. 8856.003.  PUBLIC HEARING IN EACH COUNTY. (a)  Not
  later than December 1, 2009, the commissioners court of each county
  in the district shall hold a public hearing on the topic of
  including the territory of the county in the district.
         (b)  After the public hearings and not later than December
  31, 2009, the commissioners court of each county shall vote to
  confirm or reject the county's inclusion in the district. The
  commissioners court shall adopt a resolution reflecting the result
  of that vote and provide a copy of the resolution to the temporary
  directors.
         Sec. 8856.004.  CONFIRMATION REQUIRED. (a)  The creation of
  the district is confirmed only if the commissioners courts of two or
  more of the counties in the district submit a resolution confirming
  the county's inclusion in the district to the temporary board. If
  the commissioners court of a county does not submit a resolution
  confirming the county's inclusion in the district to the temporary
  board, that county is not included in the district. The temporary
  board shall provide a copy of the resolutions and the final district
  boundaries to the Texas Commission on Environmental Quality.
         (b)  If the creation of the district is not confirmed as
  provided by Subsection (a) before January 1, 2010:
               (1)  the district is dissolved on January 1, 2010,
  except that:
                     (A)  any debts incurred shall be paid;
                     (B)  any assets that remain after the payment of
  debts shall be transferred in equal amounts to Collin, Cooke, and
  Denton Counties; 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, 2011.
         Sec. 8856.005.  INITIAL DISTRICT TERRITORY. The initial
  boundaries of the district are coextensive with the boundaries of
  Collin, Cooke, and Denton Counties.
         Sec. 8856.006.  APPLICABILITY OF OTHER GROUNDWATER
  CONSERVATION DISTRICT LAW. Except as otherwise provided by this
  chapter, Chapter 36, Water Code, applies to the district.
         Sec. 8856.007.  CONSTRUCTION OF CHAPTER. This chapter shall
  be liberally construed to achieve the legislative intent and
  purposes of Chapter 36, Water Code. A power granted by Chapter 36,
  Water Code, or this chapter shall be broadly interpreted to achieve
  that intent and those purposes.
  [Sections 8856.008-8856.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8856.021.  APPOINTMENT OF TEMPORARY DIRECTORS.
  (a)  The district is initially governed by a board of nine
  temporary directors appointed as provided by Sections 8856.051(b)
  and (d).
         (b)  Temporary directors shall be appointed not later than
  the 90th day after the effective date of the Act enacting this
  chapter. If after the 90th day fewer than nine temporary directors
  have been appointed, each unfilled position shall be considered a
  vacancy and filled in accordance with Subsection (c).
         (c)  If a vacancy occurs on the temporary board, the
  remaining temporary directors shall appoint a person to fill the
  vacancy in a manner that meets the representational requirements of
  this section.
         (d)  To be eligible to serve as a temporary director, a
  person must be a registered voter in the appointing county.
         (e)  Each temporary director must qualify to serve as a
  director in the manner provided by Section 36.055, Water Code.
         (f)  Temporary directors serve until the earlier of:
               (1)  the time the temporary directors become the
  initial permanent directors under Section 8856.023; or
               (2)  the date this chapter expires under Section
  8856.004.
         Sec. 8856.022.  ORGANIZATIONAL MEETING OF TEMPORARY
  DIRECTORS. As soon as practicable after all the temporary
  directors have qualified under Section 36.055, Water Code, a
  majority of the temporary directors shall convene the
  organizational meeting of the district at a location in the
  district agreeable to a majority of the directors. If an agreement
  on location cannot be reached, the organizational meeting shall be
  at the Pilot Point High School in Denton County.
         Sec. 8856.023.  INITIAL PERMANENT DIRECTORS; INITIAL TERMS.
  (a)  If the creation of the district is confirmed under Section
  8856.004, the temporary directors from the counties that are
  included in the district become the initial permanent directors.
         (b)  If the Commissioners Courts of Collin, Cooke, and Denton
  Counties confirm the inclusion of those counties in the district,
  the three directors appointed from each county shall draw lots as
  follows to determine:
               (1)  for Denton and Cooke Counties, which director's
  term expires June 1, 2011, and which two directors' terms expire
  June 1, 2013; and
               (2)  for Collin County, which two directors' terms
  expire June 1, 2011, and which director's term expires June 1, 2013.
         (c)  If the commissioners courts of only two of the counties
  confirm the inclusion of those counties in the district, the three
  directors appointed from each county shall draw lots as follows to
  determine:
               (1)  for the first county to confirm, which director's
  term expires June 1, 2011, and which two directors' terms expire
  June 1, 2013; and
               (2)  for the second county to confirm, which two
  directors' terms expire June 1, 2011, and which director's term
  expires June 1, 2013.
         Sec. 8856.024.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2011.
  [Sections 8856.025-8856.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8856.051.  GOVERNING BODY; TERMS. (a)  The district is
  governed by a board of six or nine directors appointed as provided
  by this section.
         (b)  If the Commissioners Courts of Collin, Cooke, and Denton
  Counties confirm the inclusion of those counties in the district,
  nine directors shall be appointed as follows:
               (1)  the Collin County Commissioners Court shall
  appoint three directors;
               (2)  the Cooke County Commissioners Court shall appoint
  three directors; and
               (3)  the Denton County Commissioners Court shall
  appoint three directors.
         (c)  If the commissioners courts of only two of the counties
  confirm the inclusion of those counties in the district, the
  commissioners court of each of those counties shall appoint three
  directors.
         (d)  The commissioners court of each appointing county shall
  appoint two of the three directors from that county as follows:
               (1)  one director from a slate of not more than three
  nominees submitted by the largest municipal groundwater producer in
  the county; and
               (2)  one director from a slate of not more than three
  nominees submitted by the other groundwater producers in that
  county.
         (e)  Directors serve staggered four-year terms, with the
  term of one or two directors from each appointing county expiring on
  June 1 of each odd-numbered year.
         (f)  A director may serve multiple consecutive terms.
         (g)  A position on the board may not be construed to be a
  civil office of emolument for any purpose, including a purpose
  described by Section 40, Article XVI, Texas Constitution.
         (h)  A person who qualifies to serve on the board may serve as
  a director and participate in all votes relating to the business of
  the district regardless of any common law doctrine of
  incompatibility. Section 36.051, Water Code, does not apply to the
  district.
         Sec. 8856.052.  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 in the manner
  provided by Section 36.055, Water Code.
         Sec. 8856.053.  VACANCIES. If a vacancy occurs on the board,
  the commissioners court that appointed the director who vacated the
  office shall appoint a person to fill the vacancy in a manner that
  meets the representational requirements of Section 8856.051.
         Sec. 8856.054.  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.
         Sec. 8856.055.  BOARD CHAIR. The board shall select one of
  its members to serve as the chair for a two-year term. The position
  of chair must rotate among the counties in the district every two
  years in alphabetical order by county.
  [Sections 8856.056-8856.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8856.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES. Except as provided by this chapter, the district has
  the powers and duties provided by the general law of this state,
  including Chapter 36, Water Code, applicable to groundwater
  conservation districts created under Section 59, Article XVI, Texas
  Constitution.
         Sec. 8856.102.  CONTRACTS. The district may enter into a
  contract with any person, public or private, for any purpose
  authorized by law.
         Sec. 8856.103.  APPLICABILITY OF DISTRICT REGULATIONS.
  Groundwater regulation under this chapter applies to all persons
  except as exempted from the requirement to obtain a permit for a
  well under Section 36.117, Water Code, or this chapter.
         Sec. 8856.104.  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 8856.103, the district may require any 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. 8856.105.  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
  Subsection (b)(1) of that section, to report groundwater
  withdrawals from the well using reasonable and appropriate
  reporting methods and frequency.
         Sec. 8856.106.  ENFORCEMENT. (a)  The district may enforce
  this chapter 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 8856.152 on
  a person producing groundwater in violation of a rule of the
  district, including the failure or refusal to comply with any order
  or rule of the district to reduce or cease groundwater usage. The
  purpose of a fee authorized under 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
  8856.152.
         Sec. 8856.107.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
  [Sections 8856.108-8856.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8856.151.  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. 8856.152.  DISTRICT REVENUES. (a)  The district by
  rule, resolution, or order may establish, amend, pledge, encumber,
  expend 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
  revenues 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 exempted under Subsection (b)(1) of
  that section. 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.
         (f)  The district may not charge an export fee to a producer
  of groundwater withdrawn from a well in the district who
  distributes the water to any part of the territory under the
  provider's certificate of public convenience and necessity even if
  the territory is outside the district's boundaries.
         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, 2009.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2497 passed the Senate on
  April 30, 2009, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2497 passed the House on
  May 19, 2009, by the following vote:  Yeas 145, Nays 0, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor