This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

 
 
  S.B. No. 2529
 
 
 
 
AN ACT
  relating to the creation of the Red River Groundwater Conservation
  District; providing authority to issue bonds; granting the 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 Chapter 8859 to read as follows:
  CHAPTER 8859.  RED RIVER GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8859.001.  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 Red River Groundwater
  Conservation District.
               (4)  "Water services district" means a district created
  under the authority of Section 59, Article XVI, or Section 52,
  Article III, Texas Constitution, with the authority to provide
  retail water service in the district.
               (5)  "Water supply corporation" means a water supply
  corporation operating under Chapter 67, Water Code.
         Sec. 8859.002.  NATURE OF DISTRICT; FINDINGS. (a)  The
  district is a groundwater conservation district in Grayson and
  Fannin 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. 8859.003.  INITIAL DISTRICT TERRITORY. The initial
  boundaries of the district are coextensive with the boundaries of
  Grayson and Fannin Counties.
         Sec. 8859.004.  APPLICABILITY OF OTHER GROUNDWATER
  CONSERVATION DISTRICT LAW. (a)  Except as otherwise provided by
  this chapter, Chapter 36, Water Code, applies to the district.
         (b)  Subchapter B, Chapter 36, Water Code, does not apply to
  the district.
         Sec. 8859.005.  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 8859.006-8859.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8859.021.  INITIAL DIRECTORS; APPOINTMENT. (a)  Not
  later than the 30th day after the effective date of the Act creating
  this chapter, the persons designated by Sections 8859.053(a)(1),
  (2), (3), and (4) to appoint directors shall appoint initial
  directors as prescribed by Section 8859.053 and in writing shall
  submit the appointed directors' names to the county judge of Fannin
  County. The persons responsible for making nominations for the
  appointments under Sections 8859.053(a)(2) and (3) shall submit
  initial director nominations to the commissioners court of Fannin
  County not later than the 20th day after the effective date of the
  Act enacting this chapter.
         (b)  Not later than the 30th day after the effective date of
  the Act creating this chapter, the county judge of Fannin County
  shall set the date, time, and location for a meeting of the
  representatives designated under Subsection (d) for the
  appointment of initial directors by the entities that Sections
  8859.053(a)(5) and (6) authorize to appoint directors.
         (c)  The county judge of Fannin County shall give notice of
  the meeting required by Subsection (b) not later than the 20th day
  before the date of the meeting by:
               (1)  providing a notice to the county clerk of Fannin
  County for public posting; and
               (2)  mailing a notice to the commissioners court of
  Grayson County.
         (d)  The governing body of each entity described by Sections
  8859.053(a)(5) and (6) shall designate a representative to attend
  the meeting described by Subsection (b) and to cast the vote on
  behalf of the entity. Failure of a governing body to designate a
  representative or of a representative to cast a vote does not
  invalidate the appointment of the initial directors.
         (e)  The county judge of Fannin County shall preside at the
  meeting described in Subsection (b) and may require representatives
  described by Subsection (d) to provide evidence demonstrating
  representation of an appropriate entity and qualification under
  Section 8859.053(f). The county judge of Fannin County in writing
  shall certify to the board and to the executive director of the
  Texas Commission on Environmental Quality the results of the
  meeting described in Subsection (b), including:
               (1)  the identity of each representative described by
  Subsection (d) who attended the meeting; and
               (2)  the names and terms of each initial director
  appointed.
         (f)  If the county judge of Fannin County does not perform
  any duty established by this section before the 90th day after the
  effective date of the Act creating this chapter, the executive
  director of the Texas Commission on Environmental Quality shall
  perform that duty as soon as practicable after that date.
         Sec. 8859.022.  INITIAL DIRECTORS; TERMS OF OFFICE.
  (a)  The following initial directors shall serve from the date of
  appointment until August 31, 2011:
               (1)  the initial director appointed by the
  commissioners court of Fannin County under Section 8859.053(a)(1);
               (2)  one initial director appointed by the governing
  body of the municipality under Section 8859.053(a)(4); and
               (3)  the initial director appointed by the governing
  bodies of the municipalities under Section 8859.053(a)(5).
         (b)  The following initial directors shall serve from the
  date of appointment until August 31, 2013:
               (1)  the two initial directors appointed by the
  commissioners court of Fannin County under Sections 8859.053(a)(2)
  and (3);
               (2)  one initial director appointed by the governing
  body of the municipality described by Section 8859.053(a)(4); and
               (3)  the initial director appointed by the governing
  boards described by Section 8859.053(a)(6).
         (c)  The governing body of the municipality that appoints
  initial directors under Section 8859.053(a)(4) shall indicate in
  the submission for each appointment the length of the term for the
  appointment as described by Subsection (b).
         Sec. 8859.023.  INITIAL DIRECTORS; QUALIFICATIONS.  (a)  To
  be eligible to serve as an initial director:
               (1)  a person appointed under Section 8859.053(a)(1),
  (2), or (3) must be a registered voter of Fannin County; and
               (2)  a person appointed under Section 8859.053(a)(4),
  (5), or (6) must be a registered voter of Grayson County.
         (b)  Each initial director must qualify to serve as a
  director in the manner provided by Section 36.055, Water Code.
         Sec. 8859.024.  ORGANIZATIONAL MEETING OF INITIAL
  DIRECTORS. (a)  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 the Grayson County courthouse or at
  another location in the district agreeable to a majority of the
  initial directors.
         (b)  The initial directors shall elect officers of the
  initial board in accordance with Section 36.054(b), Water Code, at
  its organizational meeting.
         Sec. 8859.025.  EXPIRATION OF SUBCHAPTER.  This subchapter
  expires December 31, 2013.
  [Sections 8859.026-8859.050 reserved for expansion]
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 8859.051.  GOVERNING BODY; TERMS. (a)  The district is
  governed by a board of seven directors appointed as provided by this
  section.
         (b)  Directors serve staggered four-year terms, with the
  terms of three or four directors from each appointing county
  expiring on August 31 of each odd-numbered year.
         (c)  A director serves until the director's successor has
  qualified to serve.
         Sec. 8859.052.  DIRECTOR ELIGIBILITY; QUALIFICATION.  
  (a)  To be eligible to serve as a director:
               (1)  a person appointed under Section 8859.053(a)(1),
  (2), or (3) must be a registered voter of Fannin County; and
               (2)  a person appointed under Section 8859.053(a)(4),
  (5), or (6) must be a registered voter of Grayson County.
         (b)  Each director must qualify to serve in the manner
  provided by Section 36.055, Water Code.
         (c)  A person who qualifies as a director may participate in
  all votes relating to the business of the district, regardless of
  any common law doctrine or statutory prohibition related to
  conflicts of interest or incompatibility.
         (d)  Section 36.058, Water Code, does not apply to a
  director.
         Sec. 8859.053.  APPOINTMENT OF DIRECTORS. (a)  The board
  consists of seven directors as follows:
               (1)  one director appointed by the commissioners court
  of Fannin County at the discretion of the commissioners court;
               (2)  one director appointed by the commissioners court
  of Fannin County selected from a list of nominees submitted to the
  commissioners court by the governing bodies of the municipalities
  in Fannin County;
               (3)  one director appointed by the commissioners court
  of Fannin County selected from a list of nominees submitted to the
  commissioners court by the water services districts and water
  supply corporations that provide retail water service to customers
  in Fannin County, subject to the limitation provided by Subsection
  (f);
               (4)  two directors appointed by the governing body of
  the municipality in Grayson County that has the largest annual
  production of groundwater by volume for the four years preceding
  the appointment;
               (5)  one director appointed jointly by the governing
  bodies of the municipalities in Grayson County other than the
  municipality described by Subdivision (4); and
               (6)  one director appointed jointly by the governing
  boards of all water services districts and water supply
  corporations that provide retail water service to customers in
  Grayson County, subject to the limitation provided by Subsection
  (f).
         (b)  Directors must be appointed not later than the second
  Monday in August of each odd-numbered year.
         (c)  Not later than the 60th day before the second Monday in
  August of each odd-numbered year, the district shall mail written
  notice to each entity authorized to make an appointment under
  Subsection (a).
         (d)  The board by rule shall adopt a procedure for the
  written submission of appointments to the district.
         (e)  An entity that Subsection (a)(2) or (3) authorizes to
  nominate persons for director shall submit a list of nominees not
  later than the 30th day before the date the appointment is to be
  made under this section.  If an entity designated by Subsection
  (a)(2) or (3) does not submit the list before that date, the
  commissioners court of Fannin County may appoint a director to the
  position for which the list was not received at the discretion of
  the commissioners court.
         (f)  A water services district or water supply corporation in
  Grayson and Fannin Counties may not participate in the appointment
  of a director unless that district or corporation used groundwater
  produced from wells located within the district to provide retail
  water service in the district during the calendar year of the
  appointment or the calendar year preceding the appointment. The
  board may require evidence of eligibility to participate.
         Sec. 8859.054.  VACANCIES. If a vacancy occurs on the board,
  the entity that appointed the director who vacated the office shall
  appoint a person to fill the vacancy for the unexpired term in the
  manner provided for the vacant position by Section 8859.053.
         Sec. 8859.055.  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.
         (c)  A position on the board is not a civil office of
  emolument for any purpose, including a purpose described in Section
  40, Article XVI, Texas Constitution.
         Sec. 8859.056.  QUORUM; CONCURRENCE FOR TRANSACTING
  BUSINESS.  (a)  A majority of the board membership constitutes a
  quorum for any meeting and a concurrence of a majority of the board
  shall be sufficient to transact district business, except as
  provided by Subsection (b).
         (b)  A concurrence of not fewer than six directors is
  required for transacting the following district business:
               (1)  establishing or amending a groundwater production
  fee assessed by the district based on the amount of groundwater
  authorized by permit to be withdrawn from a well or on the amount of
  water actually withdrawn from a well;
               (2)  adopting the annual budget of the district; and
               (3)  except as provided by Subsection (c), granting or
  denying a permit or permit amendment for a well that is intended to
  produce water within the district which will be transported in any
  amount for use outside the boundaries of the district.
         (c)  A concurrence of a majority of the board is sufficient
  to grant or deny a permit or permit amendment submitted by a retail
  public utility that provides retail water service in the district
  and intends to:
               (1)  produce water from a well located:
                     (A)  within the district; and
                     (B)  inside the boundaries or a certificated
  service area of a retail public utility; and
               (2)  transport the water outside the district, so long
  as the water is used within the same certificated service area or
  boundary of the retail public utility.
         Sec. 8859.057.  DECENNIAL REVIEW OF DISTRICT
  REPRESENTATION. (a)  Not later than January 1, 2019, and every 10
  years following that date, the board shall complete a review of the
  adequacy of representation of water users on the board based on
  groundwater production and use within the district.
         (b)  Not later than the 20th day following the date the
  review is complete, the board shall submit the review described in
  Subsection (a) and any recommendation the board may have relating
  to the reapportionment of directors or the representational
  structure of the board to each member of the house of
  representatives and each member of the senate whose state
  legislative district includes territory in the district.
  [Sections 8859.058-8859.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8859.101.  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. 8859.102.  CONTRACTS.  The district may enter into a
  contract with any person, public or private, for any purpose
  authorized by law.
         Sec. 8859.103.  APPLICABILITY OF DISTRICT RULES REGULATING
  GROUNDWATER.  District rules regulating groundwater adopted under
  this chapter apply to all persons except as exempted under Section
  36.117, Water Code, or this chapter.
         Sec. 8859.104.  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 by rule may provide 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 8859.103, 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. 8859.105.  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. 8859.106.  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 8859.152 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
  8859.152.
  [Sections 8859.107-8859.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 8859.151.  TAXES PROHIBITED.  The district may not
  impose a tax. Sections 36.201-36.204, Water Code, do not apply to
  the district.
         Sec. 8859.152.  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, 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 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 assess a fee for transporting water
  that is produced from a well located inside the district and inside
  a certificated service area of a retail public utility and
  transported outside of the district, if the water is used in the
  same certificated service area of the retail public utility.
         SECTION 2.  The legislature finds that for the purpose of
  Subdivision (4), Subsection (a), Section 8859.053, Special
  District Local Laws Code, as added by this Act, the City of Sherman
  is the municipality in Grayson County with the largest annual
  production of groundwater by volume for the four years preceding
  the effective date of this Act.
         SECTION 3.  (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 4.  This Act takes effect September 1, 2009.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2529 passed the Senate on
  April 28, 2009, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2529 passed the House on
  May 25, 2009, by the following vote:  Yeas 145, Nays 0, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor