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  H.B. No. 2859
 
 
 
 
AN ACT
  relating to the creation of the Terrell 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 8837 to read as follows:
  CHAPTER 8837. TERRELL COUNTY GROUNDWATER
  CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8837.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the board of directors of the
  district.
               (2)  "Commissioners court" means the Terrell County
  Commissioners Court.
               (3)  "Director" means a member of the board.
               (4)  "District" means the Terrell County Groundwater
  Conservation District.
         Sec. 8837.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district in Terrell County created under
  and essential to accomplish the purposes of Section 59, Article
  XVI, Texas Constitution.
         Sec. 8837.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 8837.022 before December 31, 2012:
               (1)  the district is dissolved December 31, 2012,
  except that:
                     (A)  any debts incurred shall be paid;
                     (B)  any assets that remain after the payment of
  debts shall be transferred to Terrell 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, 2016.
         Sec. 8837.004.  INITIAL DISTRICT TERRITORY. The initial
  boundaries of the district are coextensive with the boundaries of
  Terrell County, Texas.
         Sec. 8837.005.  DISTRICT NAME CHANGE.  The board may change
  the district's name when the district annexes territory.
         Sec. 8837.006.  APPLICABILITY OF OTHER GROUNDWATER
  CONSERVATION DISTRICT LAW. (a)  Except as otherwise provided by
  this chapter, Chapter 36, Water Code, applies to the district.
         (b)  Section 36.121, Water Code, does not apply to the
  district.
  [Sections 8837.007-8837.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8837.021.  APPOINTMENT OF INITIAL DIRECTORS; TERMS.
  (a)  Not later than the 45th day after the effective date of the Act
  enacting this chapter, the commissioners court shall appoint five
  initial directors in a manner that meets the representational
  requirements of Section 8837.051.
         (b)  Except as provided by Section 8837.003, and
  notwithstanding Section 8837.053, one director representing urban
  interests and two directors representing agricultural interests
  shall be appointed to terms that expire April 1, 2013.  The other
  two directors shall be appointed to terms that expire April 1, 2015.
         Sec. 8837.022.  CONFIRMATION ELECTION. (a) The initial
  directors shall hold an election to confirm the creation of the
  district.
         (b)  Section 41.001(a), Election Code, does not apply to an
  election held under this section.
         (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. The provision of Section
  36.017(d), Water Code, relating to the election of directors does
  not apply to an election under this section.
         Sec. 8837.023.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2016.
  [Sections 8837.024-8837.050 reserved for expansion]
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 8837.051.  COMPOSITION OF BOARD. (a) The district is
  governed by a board of five directors appointed by the
  commissioners court.
         (b)  Two directors must represent urban interests in the
  district and three must represent agricultural interests in the
  district.
         Sec. 8837.052.  TERMS OF DIRECTORS. (a) Directors serve
  staggered four-year terms, with two or three directors' terms
  expiring April 1 of each odd-numbered year.
         (b)  A director may serve consecutive terms.
         (c)  The commissioners court shall appoint a director to
  succeed a serving director on or before the date the serving
  director's term expires.
         Sec. 8837.053.  VACANCIES.  If there is a vacancy on the
  board, the commissioners court shall appoint a person to fill the
  vacancy for the remainder of the term in a manner that meets the
  representational requirements of Section 8837.051.
         Sec. 8837.054.  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.
  [Sections 8837.055-8837.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8837.101.  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. 8837.102.  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. 8837.103.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
  [Sections 8837.104-8837.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8837.151.  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. 8837.152.  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. 8837.153.  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 September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2859 was passed by the House on April
  26, 2011, by the following vote:  Yeas 146, Nays 0, 3 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2859 was passed by the Senate on May
  19, 2011, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor