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  S.B. No. 1840
 
 
 
 
AN ACT
  relating to the creation of the Deep East Texas Groundwater
  Conservation District; providing authority to issue bonds;
  providing authority to impose assessments, fees, and taxes.
         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 8873 to read as follows:
  CHAPTER 8873.  DEEP EAST TEXAS GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8873.001.  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 Deep East Texas Groundwater
  Conservation District.
         Sec. 8873.002.  NATURE OF DISTRICT; FINDINGS. (a)  The
  district is a groundwater conservation district in Sabine, San
  Augustine, and Shelby 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.
         Sec. 8873.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 8873.023 before September 1, 2015:
               (1)  the district is dissolved on September 1, 2015,
  except that:
                     (A)  any debts incurred shall be paid;
                     (B)  any assets that remain after the payment of
  debts shall be transferred to each county in proportion to the
  contribution of money made; 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, 2017.
         Sec. 8873.004.  INITIAL DISTRICT TERRITORY. (a)  Except as
  provided by Subsections (b) and (c), the initial boundaries of the
  district are coextensive with the boundaries of Sabine, San
  Augustine, and Shelby Counties.
         (b)  If the creation of the district is not confirmed by the
  voters of a county at an election held under Section 8873.023, that
  county is not included in the district.
         (c)  If a majority of the voters of the City of Center do not
  vote at an election under Section 8873.024 in favor of the inclusion
  in the district of the territory of the city, as that territory
  exists on the date of the election, the territory of the City of
  Center is not included in the district.
         Sec. 8873.005.  ADDITION OF ADJACENT COUNTY TO DISTRICT.
  (a)  An adjacent county may petition to join the district by
  resolution of the county commissioners court.
         (b)  If, after a hearing on the resolution, the board finds
  that the addition of the county would benefit the district and the
  county to be added, the board by resolution may approve the addition
  of the county to the district.
         (c)  The addition of a county under this section is not final
  until approved by the voters in the county to be added at an
  election held for that purpose.
         (d)  The ballot for the election shall be printed to permit
  voting for or against the proposition:  "The addition of (county's
  name) to the Deep East Texas Groundwater Conservation District."
         (e)  If a majority of the votes are cast in favor of the
  addition of the county to the district, the county is added to the
  district, and the district boundaries are adjusted accordingly. If
  less than a majority of the votes are cast in favor of the addition
  of the county to the district, the county is not added to the
  district.
         Sec. 8873.006.  LANDOWNERS' RIGHTS. The rights of
  landowners and their lessees and assigns in groundwater in the
  district are recognized. Nothing in this chapter shall be
  construed to deprive or divest the owners or their lessees and
  assigns of their rights, subject to district rules.
         Sec. 8873.007.  REVIEW OF RESOLUTION REQUESTING
  LEGISLATION. The board may not vote on a resolution requesting the
  legislature to amend this chapter unless the board first submits
  for review a copy of the proposed resolution to the commissioners
  court of each county included in the district.
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8873.021.  APPOINTMENT OF TEMPORARY DIRECTORS.  
  (a)  The district is initially governed by a board of seven
  temporary directors appointed as provided by Section 8873.051(b).
         (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 seven 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
  Section 8873.051(b).
         (d)  Each temporary director must qualify to serve as a
  director in the manner provided by Section 36.055, Water Code.
         (e)  Temporary directors serve until the earlier of:
               (1)  the time the temporary directors become the
  initial permanent directors under Section 8873.025; or
               (2)  the date this chapter expires under Section
  8873.003.
         Sec. 8873.022.  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.
         Sec. 8873.023.  CONFIRMATION ELECTION. (a)  The temporary
  directors shall hold an election on the same date in Sabine, San
  Augustine, and Shelby Counties and in the City of Center to confirm
  the creation of the district.
         (b)  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. Sections
  36.017(d) and (h), Water Code, do not apply to an election under
  this section.
         (c)  The ballot for the election must be printed to provide
  for voting for or against the proposition:  "The creation of the
  Deep East Texas Groundwater Conservation District and the levy of
  an ad valorem tax in the district at a rate not to exceed five cents
  for each $100 of assessed valuation."
         (d)  If the proposition receives a favorable vote of a
  majority of the voters voting in the election in two or more
  counties, the creation of the district is confirmed.
         (e)  If the proposition receives a favorable vote of a
  majority of the voters voting in the election in only one county,
  the creation of the district is not confirmed unless the
  commissioners court of that county votes to confirm the creation of
  the district.  The commissioners court must:
               (1)  hold two public hearings on the matter before
  voting on the matter; and
               (2)  vote to confirm the creation of the district not
  later than the 60th day after the date of the election.
         Sec. 8873.024.  MUNICIPAL ELECTION. (a)  Notwithstanding
  Section 36.018, Water Code, a separate voting district shall be
  established in the City of Center to determine whether the
  municipality is to be included in the district.
         (b)  The territory in the City of Center shall be included in
  the district only if a majority of the voters in the municipal
  territory of the City of Center vote in favor of the municipality's
  inclusion in the district.
         Sec. 8873.025.  INITIAL PERMANENT DIRECTORS; INITIAL TERMS.
  (a)  If the creation of the district is confirmed under Section
  8873.023, the temporary directors from the counties that are
  included in the district become the district's initial permanent
  directors.
         (b)  If the voters of Sabine, San Augustine, and Shelby
  Counties confirm the creation of the district at an election held
  under Section 8873.023:
               (1)  the two directors appointed from each county shall
  draw lots to determine which director serves an initial term
  expiring December 31, 2015, and which director serves an initial
  term expiring December 31, 2017; and
               (2)  the jointly appointed director serves an initial
  term expiring December 31, 2017.
         (c)  If the voters of only two of the counties confirm the
  creation of the district:
               (1)  the two directors appointed by the county judge of
  the county that does not confirm the creation of the district and
  the director jointly appointed by the county judges of all three
  counties are no longer eligible to serve as directors and their
  terms expire;
               (2)  the two directors appointed from each confirming
  county shall draw lots to determine which director serves an
  initial term expiring December 31, 2015, and which director serves
  an initial term expiring December 31, 2017; and
               (3)  the county judges of the confirming counties shall
  jointly appoint a director as provided by Section 8873.051(c), who
  serves an initial term expiring December 31, 2017.
         (d)  If the voters and the commissioners court of one county
  confirm the creation of the district:
               (1)  the four directors appointed by the county judges
  of the two counties that do not confirm the creation of the district
  and the director jointly appointed by the county judges of all three
  counties are no longer eligible to serve as director and their terms
  expire;
               (2)  the two directors appointed from the confirming
  county shall draw lots to determine which director serves an
  initial term expiring December 31, 2015, and which director serves
  an initial term expiring December 31, 2017; and
               (3)  the county judge of the confirming county:
                     (A)  shall appoint one initial director with a
  term expiring December 31, 2017, as board chair; and
                     (B)  may appoint two additional initial directors
  who are residents of that county and who, if appointed, shall draw
  lots to determine which director serves an initial term expiring
  December 31, 2015, and which director serves an initial term
  expiring December 31, 2017.
         Sec. 8873.026.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2016.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8873.051.  GOVERNING BODY; TERMS. (a)  The district is
  governed by a board of seven, five, or three directors appointed as
  provided by this section.
         (b)  If the voters in Sabine, San Augustine, and Shelby
  Counties confirm the creation of the district, seven directors
  shall be appointed as follows:
               (1)  the county judge of each confirming county shall
  appoint two directors who are residents of that county; and
               (2)  the county judges of the confirming counties shall
  by majority vote jointly appoint one director, who shall serve as
  board chair, from the district at large.
         (c)  If the voters in only two of the counties confirm the
  creation of the district, five directors shall be appointed as
  follows:
               (1)  the county judge of each confirming county shall
  appoint two directors who are residents of that county; and
               (2)  the county judges of the confirming counties shall
  jointly appoint one director, who shall serve as board chair, from
  the district at large.
         (d)  Notwithstanding Section 36.051(a), Water Code, if the
  voters and the commissioners court of only one county confirm the
  creation of the district, the county judge of that county:
               (1)  shall appoint three directors who are residents of
  that county and designate one of those directors as board chair; and
               (2)  may appoint two directors, in addition to the
  three directors appointed under Subdivision (1), who are residents
  of that county.
         (e)  Directors serve staggered four-year terms, with as near
  as possible to one-half of the directors' terms expiring December
  31 of each odd-numbered year.
         (f)  A director may not serve more than two terms.
         Sec. 8873.052.  CHANGE IN COMPOSITION; ADDITIONAL COUNTY.
  If a county is added to the district, the board may change the
  number of directors so that:
               (1)  an equal number of directors are appointed by the
  county judge of each county in the district;
               (2)  one director is appointed jointly by the county
  judges of each county in the district; and
               (3)  the board is composed of an odd number of
  directors.
         Sec. 8873.053.  QUALIFICATION OF DIRECTORS. Each director
  must qualify to serve as a director in the manner provided by
  Section 36.055, Water Code.
         Sec. 8873.054.  VACANCIES. If a vacancy occurs on the board,
  the appointing county judge or, if applicable, the appointing
  county judges for the vacant position shall appoint a person to fill
  the vacancy in a manner that meets the representational
  requirements of Section 8873.051. Section 36.051(c), Water Code,
  does not apply to the district.
         Sec. 8873.055.  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.
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8873.101.  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. 8873.102.  PERMIT TO TRANSFER GROUNDWATER. (a)  The
  board by rule may:
               (1)  require a person to obtain a permit from the
  district to transfer groundwater out of the district; and
               (2)  regulate the terms of a transfer of groundwater
  out of the district.
         (b)  A rule adopted by the board under this section must be
  consistent with the requirements of Section 36.122, Water Code.
         Sec. 8873.103.  PROHIBITION ON DISTRICT PURCHASE OF
  GROUNDWATER RIGHTS. The district may not purchase groundwater
  rights for any purpose.
         Sec. 8873.104.  PROHIBITION ON DISTRICT PRODUCTION OF
  GROUNDWATER FOR PURPOSE OF SALE. The district may not produce
  groundwater for the purpose of sale.
         Sec. 8873.105.  PROHIBITION ON DISTRICT METERING OF CERTAIN
  WELLS. The district may not require that a meter be placed on a well
  that is incapable of producing more than 25,000 gallons of
  groundwater per day.
         Sec. 8873.106.  PROHIBITION ON DISTRICT USE OF EMINENT
  DOMAIN POWER. The district may not exercise the power of eminent
  domain.
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8873.151.  LIMITATION ON TAXES. The district may not
  impose ad valorem taxes at a rate that exceeds five cents on each
  $100 valuation of taxable property in the district.
         Sec. 8873.152.  PERMIT FEES REFUNDABLE. The district shall
  refund a fee collected by the district that relates to an
  application for or the issuance of a permit if:
               (1)  the permit relates to a well that is incapable of
  producing more than 25,000 gallons of groundwater per day; and
               (2)  the applicant for the permit has complied with the
  applicable law and district rules relating to the issuance of the
  permit.
         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, one of the required recipients, 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, the
  lieutenant governor, and the 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, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1840 passed the Senate on
  April 25, 2013, by the following vote:  Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1840 passed the House on
  May 17, 2013, by the following vote:  Yeas 134, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor