Bill Text: TX HB4322 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to the creation of the Val Verde County Groundwater Conservation District; providing authority to issue bonds; providing authority to impose fees, surcharges, and taxes.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2017-05-25 - Recommendations filed with the Speaker [HB4322 Detail]

Download: Texas-2017-HB4322-Introduced.html

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85R4810 TSR-F
By: Nevárez H.B. No. 4322

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Val Verde County Groundwater
Conservation District; providing authority to issue bonds;
providing authority to impose fees, surcharges, 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 8872 to read as follows:
CHAPTER 8872. VAL VERDE COUNTY GROUNDWATER CONSERVATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8872.001. DEFINITIONS. (a) Except as provided by
Subsection (b), the definitions in Section 36.001, Water Code,
apply to this chapter.
(b) In this chapter:
(1) "Aquifer" means that part of the Edwards-Trinity
(Plateau) Aquifer located in Val Verde County.
(2) "Board" means the board of directors of the
district.
(3) "City" means the City of Del Rio.
(4) "Commissioners court" means the Val Verde County
Commissioners Court.
(5) "Director" means a member of the board.
(6) "District" means the Val Verde County Groundwater
Conservation District.
(7) "Domestic use" means the use of groundwater in the
district by a member of a well owner's household or by household
employees, tenants, licensees, or guests for the following
purposes:
(A) drinking, washing, or culinary activities;
(B) irrigation of:
(i) lawns;
(ii) family gardens; or
(iii) orchards, if the produce of the
orchard is used only for household consumption;
(C) filling or maintaining swimming pools,
decorative ponds, or fountains located on the well owner's
property; and
(D) drinking water for domestic animals not
raised, maintained, or sold for commercial purposes.
(8) "Existing well" means a well that is completed to
produce groundwater in Val Verde County on or before January 1,
2017. The term includes a well that is reworked or repaired after
January 1, 2017, to restore the well's historic production
capacity, provided that the reworking or repair does not enlarge
the diameter of the well bore as the well bore existed on January 1,
2017.
(9) "Historic use" means the production and beneficial
use of groundwater from an existing well in any calendar year before
January 1, 2017.
(10) "Political subdivision" means a governmental
entity of this state, including a county, municipality, state
agency, or district or authority created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution. The term also
includes a nonprofit water supply corporation created under Chapter
67, Water Code.
(11) "Retail public utility" has the meaning assigned
by Section 13.002, Water Code.
(12) "Rural area" means an area that is located:
(A) inside the boundaries of the district; and
(B) outside the corporate boundaries and
extraterritorial jurisdiction of a municipality in the district.
Sec. 8872.002. NATURE OF DISTRICT; PURPOSE. (a) The
district is a groundwater conservation district in Val Verde County
created under and essential to accomplish the purposes of Section
59, Article XVI, Texas Constitution, including:
(1) the permitting, recharge, conservation,
protection, and prevention of the waste of groundwater in Val Verde
County;
(2) the control of subsidence caused by the
unreasonable withdrawal of groundwater;
(3) the regulation of transporting groundwater
outside the boundaries of the district;
(4) the regulation of groundwater production and the
implementation of drought management and conservation plans for the
reduction of drawdown when conditions warrant action to protect
spring flow and base flow; and
(5) the management of the issuance of permits by
requiring studies and groundwater availability model analyses of
permit applications that include the use of conservation triggers
to mitigate the impact on spring flow, base flow, and drawdown.
(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 benefit from the works and projects
that are to be accomplished by the district under powers conferred
by Section 59, Article XVI, Texas Constitution, this chapter, and
Chapter 36, Water Code.
Sec. 8872.003. CONFIRMATION ELECTION REQUIRED. If the
creation of the district is not confirmed at a confirmation
election held under Section 8872.023 before September 1, 2022:
(1) the district is dissolved September 1, 2022,
except that:
(A) any debts incurred shall be paid;
(B) any assets that remain after the payment of
debts shall be transferred to Val Verde County and the city in
proportion to the amount each entity has contributed to the costs of
the confirmation election and district operations; 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, 2024.
Sec. 8872.004. INITIAL DISTRICT TERRITORY. The boundaries
of the district are coextensive with the boundaries of Val Verde
County.
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 8872.021. APPOINTMENT OF TEMPORARY DIRECTORS;
VACANCIES; TERMS. (a) As soon as practicable after the effective
date of the Act enacting this chapter, seven temporary directors
shall be appointed as follows:
(1) three temporary directors shall be appointed by
the commissioners court;
(2) three temporary directors shall be appointed by
the city council of the city; and
(3) one temporary director shall be appointed jointly
by the county judge of Val Verde County and the mayor of the city.
(b) An individual appointed to serve as a temporary director
must be at least 18 years of age and be a registered voter of Val
Verde County.
(c) If there is a vacancy on the temporary board of
directors of the district, the remaining temporary directors 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 the temporary directors become initial
directors under Section 8872.024; or
(2) the date this chapter expires under Section
8872.003.
(e) Before the confirmation election under Section
8872.023, the presiding officer of the district or the presiding
officer's designee may represent the district in the joint planning
process under Section 36.108, Water Code, and shall be considered a
voting district representative.
Sec. 8872.022. ORGANIZATIONAL MEETING OF TEMPORARY
DIRECTORS. (a) 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 Val Verde County Courthouse.
(b) At the organizational meeting described by Subsection
(a), the temporary directors shall:
(1) elect a president as presiding officer, vice
president, secretary, and treasurer;
(2) schedule the confirmation election described by
Section 8872.023; and
(3) notify the applicable groundwater management area
of the district's creation, subject to confirmation under Section
8872.023.
Sec. 8872.023. CONFIRMATION ELECTION. (a) The temporary
board shall order an election to be held on the first available
uniform election date in November following January 1, 2018, to
confirm the creation of the district and authorize the collection
of taxes.
(b) The ballot for the election must be printed to permit
voting for or against the following proposition: "The creation of
the Val Verde County Groundwater Conservation District and the
imposition of an ad valorem tax in the district at a rate not to
exceed five cents for each $100 of assessed valuation."
(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.
(d) If the district's creation is not confirmed at an
election held under this section, the temporary directors may order
one or more subsequent elections to be held to confirm the creation
of the district not earlier than the first anniversary of the
preceding confirmation election. If the district's creation is not
confirmed at an election held under this section before September
1, 2022, the district is dissolved in accordance with Section
8872.003.
(e) The costs of an election held under this chapter shall
be paid by Val Verde County and the city.
Sec. 8872.024. INITIAL DIRECTORS. (a) If the creation of
the district is confirmed at an election held under Section
8872.023, the temporary directors become the initial directors and
serve until permanent directors are elected or appointed under
Section 8872.052.
(b) The initial directors of the board shall draw lots to
determine which three directors shall serve a term expiring
December 1 of the year two years after the date of the election in
which the district is confirmed and which four directors shall
serve a term expiring December 1 of the year four years after the
date of the election in which the district is confirmed.
(c) The initial directors shall provide notice to the
members of the groundwater management area in which the district is
located that the creation of the district is confirmed.
Sec. 8872.025. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2023.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8872.051. COMPOSITION OF BOARD. The district is
governed by a board of seven directors.
Sec. 8872.052. TERMS; APPOINTMENT AND ELECTION OF
DIRECTORS; QUALIFICATIONS. (a) Directors serve staggered
four-year terms, with three or four terms expiring December 1 every
other year. Directors are elected or appointed as follows:
(1) one director is elected from each of the four
county commissioners precincts by the voters of the applicable
precinct to be designated as the director whose place number
matches the applicable precinct number;
(2) one director is elected by the voters of the
district at large to be designated as the director for place number
five; and
(3) two directors who each own at least 1,000 acres of
land in the rural area are appointed by the county judge of Val
Verde County and the mayor of the city, respectively, to be
designated as the directors for place numbers six and seven.
(b) To be elected or appointed under this section, a person
must be at least 18 years of age and:
(1) a registered voter of Val Verde County; and
(2) if elected from a commissioners court precinct, a
resident of that precinct.
(c) An election to elect directors must be held on the
uniform election date in November of even-numbered years.
(d) A director may serve consecutive terms.
Sec. 8872.053. VACANCIES. (a) If there is a vacancy on the
board, a majority of the board shall appoint a person to fill the
vacancy for the remainder of the term of the vacant director place.
The person appointed to fill the vacancy must meet the
qualifications under Section 8872.052 for the vacant place.
(b) If the board has not filled a vacancy before the 90th day
after the date of the vacancy, the county judge of Val Verde County
and the mayor of the city shall jointly appoint a person that meets
the qualifications under Section 8872.052 for the vacant place to
serve as director for the remainder of the term being filled.
Sec. 8872.054. COMPENSATION. (a) A director is not
entitled to receive compensation for performing the duties of a
director.
(b) The board may authorize a director to receive
reimbursement for the director's reasonable and actual expenses
incurred while engaging in activities inside or outside the
district on behalf of the board.
Sec. 8872.055. ELECTION OF BOARD OFFICERS. (a) At the
first meeting of the board in each calendar year, the board shall
elect directors to serve as the president, vice president,
secretary, and treasurer.
(b) The president shall serve as the presiding officer of
the board.
(c) The treasurer shall serve as the financial officer of
the district.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8872.101. GENERAL POWERS. (a) 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,
including Chapter 36, Water Code.
(b) Before confirmation of the district, the district's
powers are limited to:
(1) performance of the duties necessary to hold an
election to confirm the creation of the district;
(2) registration of existing wells that are not exempt
from the district requirement to obtain a permit under this chapter
or Chapter 36, Water Code;
(3) collection of annual groundwater production
reports from wells that are not exempt from the district
requirement to obtain a permit under this chapter or Chapter 36,
Water Code; and
(4) participation in joint planning with other
districts as provided by Section 8872.021(e).
(c) The district shall adopt rules and prescribe forms
necessary to implement Subsections (b)(2) and (3).
(d) Section 36.121, Water Code, does not apply to the
district.
Sec. 8872.102. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
Sec. 8872.103. PERMITS: RULES. (a) The district shall
adopt rules to:
(1) require a person to obtain a permit from the
district to drill and produce groundwater from a well, including an
existing well, unless the well is exempt from permitting under this
chapter or Chapter 36, Water Code;
(2) regulate the terms of a transfer of groundwater
out of the district;
(3) regulate the spacing of wells drilled after
September 1, 2017, to prevent unreasonable adverse interference
with other wells;
(4) provide for the uniform and nondiscriminatory
reduction or curtailment of the production of groundwater by all
permit holders in the district, if necessary, to protect spring
flow and base flow and reduce aquifer drawdown based on scientific
data provided to the district;
(5) limit groundwater production:
(A) by the spacing of wells;
(B) by basing production on acreage or tract
size; or
(C) for a public water supplier, by basing
production on the service area of the supplier; and
(6) require the owner of a well that is not exempt from
the district requirement to obtain a permit under this chapter or
Chapter 36, Water Code, to report to the district in January of each
year the annual production of groundwater from the well based on
metered production.
(b) The terms of a permit that authorizes the production of
groundwater for transfer out of the district for beneficial use
must be consistent with applicable law, including Section 36.122,
Water Code, and may not be more restrictive than the terms of a
permit authorizing the production of groundwater for beneficial use
inside the district.
(c) The district may establish permit conditions and
limitations as provided by Section 36.122, Water Code.
Sec. 8872.104. PERMITS: LANDOWNERS GENERALLY. (a) The
district shall grant a permit that authorizes a person to drill one
or more wells not to exceed 12 inches in diameter on land owned or
controlled by the person through a lease or other legal right.
(b) Under this section, the district shall grant the
drilling permit holder a permit for the production of groundwater
not to exceed an actual production capacity of two acre-feet per
year for each contiguous acre of land associated with the well.
(c) The district shall issue a production permit described
by Subsection (b) for an existing well that has a diameter not
greater than 12 inches for the production of groundwater not to
exceed an actual production capacity of two acre-feet per year.
Sec. 8872.105. PERMITS: CITY. The district shall grant the
city permits in the city's name that authorize the city to pump from
all wells operated or controlled by the city a cumulative volume of
groundwater of 18,400 acre-feet per year.
Sec. 8872.106. PERMITS: RETAIL PUBLIC UTILITY. (a) The
district shall grant a permit to a retail public utility in the
district or to a political subdivision other than the city that is
providing water or sewer service on or before the effective date of
the Act enacting this chapter. The permit must authorize the
production of a cumulative volume of groundwater from the wells
owned by the entity in an amount equal to the amount of groundwater
required to meet the entity's current and projected needs as
determined under Section 13.250, Water Code.
(b) The permitted entity may not resell the groundwater
produced under the permit to any person for use or resale outside
the entity's service area, including the area covered by a
certificate of convenience and necessity, and must put the water to
beneficial use within the entity's service area.
Sec. 8872.107. PERMITS: AGRICULTURE. (a) A person is
entitled to apply for and receive a permit granted for agricultural
irrigation. The permit must authorize the production of
groundwater necessary for the irrigation of crops equal to three
acre-feet per year for each acre of land inside the district using
pivot, roller, echo drip, or bordered floor irrigation.
(b) A permit issued under this section is nontransferable
and expires on the date the well ceases to be used solely for
irrigation inside the district.
Sec. 8872.108. PERMITS: COMMERCE AND INDUSTRY. The
district shall grant a permit for the production of groundwater
from an existing well that is beneficially used for commercial or
industrial purposes outside the limits or the extraterritorial
jurisdiction of the city. The permit must authorize the production
of a cumulative volume of groundwater that is equal to the maximum
historic use as proven by the person seeking the permit.
Sec. 8872.109. WELL REGISTRATION. A permit issued under
this chapter authorizing the production of groundwater from the
aquifer must also authorize the drilling and operation of a well or
wells in the aquifer, and must require the permit holder to:
(1) register each well with the district; and
(2) file a copy of the well driller's log with the
district on completion of each well.
Sec. 8872.110. PROPERTY RIGHTS. (a) A permit issued by the
district for the drilling, operation, or production of a well is
appurtenant to the real property on which the well is located.
Ownership of the groundwater, or the right to use and produce the
groundwater authorized by the permit, may be sold, leased,
assigned, or otherwise transferred by the owner, provided that the
rights granted by the permit to drill a well and to produce
groundwater are exercised on the real property described in the
permit based on the actual production authorized by the permit.
(b) Except as provided by this chapter, groundwater
produced as authorized by a permit, once captured at the wellhead,
may be beneficially used for any lawful purpose at any location,
whether on or off the real property to which the permit is attached,
provided that any beneficial use outside the boundaries of the
district is authorized by a transport permit issued by the
district.
Sec. 8872.111. REDUCTION AND CURTAILMENT. (a) The board by
rule may provide for the reduction and curtailment of the
production of groundwater from a well permitted under this chapter
to protect spring flow and base flow and reduce drawdown in
accordance with Sections 8872.103(a)(4) and (5).
(b) To implement a reduction or curtailment, the district
may, to the extent not otherwise authorized by Section 36.101(a),
Water Code, limit groundwater production as provided by district
rules.
(c) Rules adopted by the board requiring a reduction or
curtailment of the production of groundwater must be applied on a
proportional, uniform, and nondiscriminatory basis to all
permitted production, unless the condition requiring reduction or
curtailment is limited to a management zone created under Section
8872.112.
Sec. 8872.112. MANAGEMENT ZONES. (a) If the district
determines based on scientific data received by the district in a
meeting held for that purpose that conditions in or use of an
aquifer differ substantially between hydrogeological areas of the
district, the district may establish management zones to better
manage the groundwater resources and adopt different rules to
regulate production from the management zones based on acreage,
tract size, or the service area of a public water supplier. In
creating management zones, the district may consider:
(1) each aquifer, subdivision of an aquifer, or
geologic strata located wholly or partly within the district; or
(2) each geographic area overlying an aquifer or
subdivision of an aquifer located wholly or partly within the
district.
(b) The district must regulate the production of
groundwater in a management zone on a proportional, uniform, and
nondiscriminatory basis.
Sec. 8872.113. PERMIT RENEWAL. (a) Except as provided by
Subsection (b), the district shall without a hearing renew or
approve an application to renew an operating permit before the date
on which the permit expires, provided that:
(1) the application, if required by the district, is
submitted in a timely manner and accompanied by any required fees in
accordance with district rules; and
(2) the permit holder is not requesting a change
related to the renewal that would require a permit amendment under
district rules.
(b) The district is not required to renew a permit under
this section if the applicant:
(1) is delinquent in paying a fee required by the
district;
(2) is subject to a pending enforcement action for a
substantive violation of a district permit, order, or rule that has
not been settled by agreement with the district or a final
adjudication; or
(3) has not paid a civil penalty or has otherwise
failed to comply with an order resulting from a final adjudication
of a violation of a district permit, order, or rule.
(c) If the district is not required to renew a permit under
Subsection (b)(2), the permit remains in effect until the final
settlement or adjudication on the matter of the substantive
violation.
Sec. 8872.114. LIMITATION ON WELL PERMIT REQUIREMENTS. (a)
The district may not require a person to install a meter or obtain a
permit from the district for:
(1) a well drilled after January 1, 2017, and used to
produce groundwater solely inside the district for domestic use or
for another exempt purpose on a tract of land not larger than 10
acres and that produces not more than 30,000 gallons of groundwater
a day, notwithstanding the production capability of the well; or
(2) a well drilled after January 1, 2017, and used to
produce groundwater solely inside the district for domestic use or
for another exempt purpose on a tract of land larger than 10 acres
and that produces not more than 72,000 gallons of groundwater a day,
notwithstanding the production capability of the well.
(b) An owner of a well described by this section shall
register the well with the district.
(c) The district may not require a permit or a permit
amendment for the maintenance or repair of a well that is not exempt
from permitting under this chapter or Chapter 36, Water Code, if the
maintenance or repair does not make the well capable of producing an
amount of groundwater that is greater than the production amounts
provided by the well's permit.
(d) Nothing in Subsection (a) prevents the applicability in
the district of Section 36.113(a), Water Code.
(e) The owner of an existing well is exempt from the
district's production permit requirements provided that the
groundwater produced is for domestic use.
(f) The owner of a well is exempt from the district's permit
requirements provided that any groundwater produced is for
agricultural use.
Sec. 8872.115. 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. 8872.116. RIGHT TO ENTER LAND. Section 36.123, Water
Code, which authorizes a district's employees or agents to go on and
inspect the property of a landowner, applies to the district
provided that:
(1) access is subject to written notice to the
landowner; and
(2) the district's employees and agents are prohibited
from carrying firearms on the landowner's property.
Sec. 8872.117. WATER CONSERVATION INITIATIVE. The district
may create a water conservation initiative as provided by Section
11.32, Tax Code.
Sec. 8872.118. REGIONAL GROUNDWATER PLANNING. (a) The
district shall obtain or develop groundwater models for use in
planning and management of the aquifer and to assist the district in
the district's role as a member of the groundwater management area
in which the district is located.
(b) The district, to the extent possible and through the
designated representative for the groundwater management area in
which the district is located, shall diligently pursue an increase
in the managed available groundwater and an improvement in the
desired future conditions for the aquifer as compared to those
indicators for the aquifer on January 1, 2017.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8872.151. 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. 8872.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
(a) Sections 26.04, 26.05, 26.06, and 26.07, Tax Code, do not apply
to a tax imposed by the district.
(b) Section 49.236, Water Code, as added by Chapter 248
(H.B. 1541), Acts of the 78th Legislature, Regular Session, 2003,
applies to the district.
Sec. 8872.153. FEES. (a) The board by rule may impose
uniform, reasonable, equitable, and nondiscriminatory annual
production fees on the amount of permitted water actually produced
from each well.
(b) A production fee must be consistent with Section 36.205,
Water Code, and 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 district may assess a uniform and nondiscriminatory
export fee consistent with Section 36.122, Water Code, on
groundwater that is produced from a well inside the district and
transferred outside the district.
(d) The district may set fees by rule or resolution relating
to administrative acts of the district, including filing
applications, reviewing and processing permits, conducting permit
hearings, providing public notice, and paying costs of legal fees,
expert fees, and hearing facility rental fees. The district may not
assess a fee in an amount greater than $250 for processing permits.
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, 2017.