H.B. No. 2294
1-1 AN ACT
1-2 relating to the regulation of groundwater; granting the power of
1-3 eminent domain.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The caption of Title 2, Water Code, is amended to
1-6 read as follows:
1-7 TITLE 2. <
STATE> WATER ADMINISTRATION
1-8 SECTION 2. Title 2, Water Code, is amended by adding
1-9 Subtitle E to read as follows:
1-10 SUBTITLE E. GROUNDWATER MANAGEMENT
1-11 CHAPTER 35. GROUNDWATER STUDIES
1-12 Sec. 35.001. PURPOSE. In order to provide for the
1-13 conservation, preservation, protection, recharging, and prevention
1-14 of waste of the groundwater, and of groundwater reservoirs or their
1-15 subdivisions, and to control subsidence caused by withdrawal of
1-16 water from those groundwater reservoirs or their subdivisions,
1-17 consistent with the objectives of Section 59, Article XVI, Texas
1-18 Constitution, groundwater management areas may be created as
1-19 provided by this chapter.
1-20 Sec. 35.002. DEFINITIONS. In this chapter:
1-21 (1) "District" means any district or authority created
1-22 under Section 52, Article III, or Section 59, Article XVI, Texas
1-23 Constitution, that has the authority to regulate the spacing of
1-24 water wells, the production from water wells, or both.
2-1 (2) "Commission" means the Texas Natural Resource
2-2 Conservation Commission.
2-3 (3) "Executive director" means the executive director
2-4 of the commission.
2-5 (4) "Executive administrator" means the executive
2-6 administrator of the Texas Water Development Board.
2-7 (5) "Groundwater" means water percolating below the
2-8 surface of the earth.
2-9 (6) "Groundwater reservoir" means a specific
2-10 subsurface water-bearing reservoir having ascertainable boundaries
2-11 containing groundwater.
2-12 (7) "Subdivision of a groundwater reservoir" means a
2-13 definable part of a groundwater reservoir in which the groundwater
2-14 supply will not be appreciably affected by withdrawing water from
2-15 any other part of the reservoir, as indicated by known geological
2-16 and hydrological conditions and relationships and on foreseeable
2-17 economic development at the time the subdivision is designated or
2-19 (8) "Subsidence" means the lowering in elevation of
2-20 the land surface caused by withdrawal of groundwater.
2-21 (9) "Board" means the board of directors of a
2-23 (10) "Director" means a member of a board.
2-24 (11) "Management area" means an area designated and
2-25 delineated by the commission as an area suitable for management of
2-26 groundwater resources.
2-27 (12) "Critical area" means an area designated and
3-1 delineated by the commission as an area that is experiencing or is
3-2 expected to experience critical groundwater problems.
3-3 (13) "Political subdivision" means a county,
3-4 municipality, or other body politic or corporate of the state,
3-5 including a district or authority created under Section 52, Article
3-6 III, or Section 59, Article XVI, Texas Constitution, a state
3-7 agency, or a nonprofit water supply corporation created under
3-8 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
3-9 (Article 1434a, Vernon's Texas Civil Statutes).
3-10 Sec. 35.003. SURFACE WATER LAWS NOT APPLICABLE. The laws
3-11 and administrative rules relating to the use of surface water do
3-12 not apply to groundwater.
3-13 Sec. 35.004. DESIGNATION OF MANAGEMENT AREAS. (a) On its
3-14 own motion from time to time, or on receiving a petition, the
3-15 commission may designate groundwater management areas. Each
3-16 management area shall be designated with the objective of providing
3-17 the most suitable area for the management of the groundwater
3-18 resources. To the extent feasible, the management area shall
3-19 coincide with the boundaries of a groundwater reservoir or a
3-20 subdivision of a groundwater reservoir. The commission also may
3-21 consider other factors, including the boundaries of political
3-23 (b) On the request of any person interested in the petition,
3-24 or on the request of the commission, the executive director shall
3-25 prepare available evidence relating to the configuration of a
3-26 groundwater management area. Before making the designation, the
3-27 commission shall consider the evidence prepared by the executive
4-1 director and other evidence submitted at the hearing.
4-2 (c) The commission may alter the boundaries of designated
4-3 management areas as required by future conditions and as justified
4-4 by factual data. An alteration of boundaries does not invalidate
4-5 the previous creation of any district.
4-6 (d) The commission shall designate groundwater management
4-7 areas using the procedures applicable to rulemaking under the
4-8 Administrative Procedure Act, Subchapter B, Chapter 2001,
4-9 Government Code.
4-10 Sec. 35.005. PETITION TO DESIGNATE A GROUNDWATER MANAGEMENT
4-11 AREA. (a) A petition may be submitted to the commission for the
4-12 sole purpose of requesting that the commission designate a
4-13 management area for all or part of one or more counties.
4-14 (b) A petition filed pursuant to this section must be signed
4-16 (1) a majority of the landowners in the proposed
4-17 management area; or
4-18 (2) if there are more than 50 landowners in the
4-19 proposed management area, at least 50 of those landowners.
4-20 (c) A petition filed pursuant to this section must contain
4-21 the following statement:
4-22 "Petitioners request that the Texas Natural Resource
4-23 Conservation Commission designate a groundwater management area to
4-24 include all or part of ______________ County (counties). The
4-25 management area shall be designated with the objective of providing
4-26 the most suitable area for the management of groundwater resources
4-27 of the part of the state in which a district is to be located.
5-1 Petitioners understand that this petition requests only the
5-2 designation of a management area, but that all or part of the land
5-3 in the management area designated may later be added to an existing
5-4 groundwater conservation district or become a new groundwater
5-5 conservation district, as provided by Chapter 36 of the Water
5-7 (d) A petition shall include a map that shows the location
5-8 of the proposed management area and may include any other
5-9 information desired by the petitioners concerning the proposed
5-10 management area.
5-11 (e) The petitioners shall file the petition with the
5-12 executive director for review in accordance with the rules of the
5-13 commission. The petitioners shall supply any additional
5-14 information requested by the commission or the executive director.
5-15 (f) The commission shall act on the petition within a
5-16 reasonable amount of time.
5-17 Sec. 35.006. NOTICE FOR DESIGNATION OF MANAGEMENT AREA. (a)
5-18 In addition to the notice required under the Administrative
5-19 Procedure Act, Section 2001.023, Government Code, the petitioners
5-20 shall have notice published in at least one newspaper with general
5-21 circulation in the county or counties in which the proposed
5-22 management area is to be located. Notice must be published not
5-23 later than the 30th day before the date set for the commission to
5-24 consider the designation of the management area.
5-25 (b) The notice must include:
5-26 (1) a statement of the general purpose and effect of
5-27 designating the proposed management area;
6-1 (2) a map generally outlining the boundaries of the
6-2 proposed management area or notice of the location at which a copy
6-3 of the map may be examined or obtained; and
6-4 (3) the time and place at which the commission will
6-5 consider the designation of the management area.
6-6 (c) If the commission designates a management area on its
6-7 own motion, the commission shall give the same notice as required
6-8 of the petitioner under this section.
6-9 Sec. 35.007. IDENTIFYING, DESIGNATING, AND DELINEATING
6-10 CRITICAL AREAS. (a) The executive director and the executive
6-11 administrator shall meet at least once a year to identify those
6-12 areas of the state that are experiencing or that are expected to
6-13 experience, based on information available to the commission and
6-14 the Texas Water Development Board, within the immediately following
6-15 20-year period, critical groundwater problems, including shortages
6-16 of surface or groundwater, land subsidence resulting from
6-17 groundwater withdrawal, and contamination of groundwater supplies.
6-18 (b) If the executive director concludes that an area of the
6-19 state should be considered for designation as a critical area, the
6-20 executive director shall prepare a report to the commission.
6-21 (c) The executive director shall begin preparation of a
6-22 critical area report by requesting a study from the executive
6-23 administrator. The study must include an appraisal of the
6-24 hydrogeology of the area and matters within the Texas Water
6-25 Development Board's planning expertise relevant to the area. The
6-26 study must be completed and delivered to the executive director on
6-27 or before the 90th day following the date of the request. If the
7-1 study is not delivered within this 90-day period, the executive
7-2 director may proceed with the preparation of the report.
7-3 (d) The report shall include:
7-4 (1) the recommended delineation of the boundaries of
7-5 any proposed critical area in the form of a rule to be considered
7-6 for adoption by the commission;
7-7 (2) the reasons and supporting information for or
7-8 against designating the area as a critical area;
7-9 (3) a recommendation regarding whether a district
7-10 should be created in the critical area or whether the critical area
7-11 should be added to an existing district;
7-12 (4) any other information that the executive director
7-13 considers helpful to the commission.
7-14 (e) The executive director must complete the report and file
7-15 it with the commission on or before the 210th day following the
7-16 date on which the executive administrator was requested to produce
7-17 a study. The executive director shall make the report available
7-18 for public inspection by providing a copy of the report to at least
7-19 one library in each county in which the proposed critical area is
7-21 (f) To carry out this section, the executive director may
7-22 make necessary studies, hold hearings, solicit and collect
7-23 information, and use information already prepared by the executive
7-24 director or the executive administrator for other purposes.
7-25 Sec. 35.008. PROCEDURES FOR DESIGNATION OF CRITICAL AREAS.
7-26 (a) The commission shall designate critical areas using the
7-27 procedures applicable to rulemaking under the Administrative
8-1 Procedure Act, Subchapter B, Chapter 2001, Government Code, but if
8-2 procedures required by this chapter are in conflict with that Act,
8-3 this chapter controls.
8-4 (b) The designation of a critical area may not be appealed
8-5 nor may it be challenged under the Administrative Procedure Act,
8-6 Section 2001.038, Government Code.
8-7 Sec. 35.009. NOTICE AND HEARING. (a) In addition to the
8-8 notice required for rulemaking under the Administrative Procedure
8-9 Act, Section 2001.023, Government Code, the commission shall have
8-10 notice published in at least one newspaper with general circulation
8-11 in the county or counties in which the proposed critical area is to
8-12 be located. Notice must be published not later than the 30th day
8-13 before the date set for the commission to consider the designation
8-14 of the critical area.
8-15 (b) The notice must include:
8-16 (1) a statement of the general purpose and effect of
8-17 designating the proposed critical areas;
8-18 (2) a map generally outlining the boundaries of the
8-19 proposed critical area or notice of the location at which a copy of
8-20 the map may be examined or obtained;
8-21 (3) a description or the name of the locations at
8-22 which the commission has provided copies of the executive
8-23 director's report to be made available for public inspection; and
8-24 (4) the date, time, and place at which the commission
8-25 will consider the designation of the critical areas.
8-26 Sec. 35.010. CONSIDERATION OF CREATION OF DISTRICT OR
8-27 ADDITION OF LAND IN CRITICAL AREA TO EXISTING DISTRICT. (a)
9-1 Following its designation of a critical area, the commission may
9-2 call a hearing to consider:
9-3 (1) whether a district should be created over all or
9-4 part of a critical area; or
9-5 (2) whether all or part of the land in the critical
9-6 area should be added to an existing district.
9-7 (b) Evidentiary hearings shall be held at a location in one
9-8 of the counties in which the critical area is located or in the
9-9 nearest convenient location if adequate facilities are not
9-10 available in the critical area.
9-11 (c) At the hearing, the commission shall hear testimony and
9-12 receive evidence from all interested parties. The commission shall
9-13 consider the executive director's report and supporting information
9-14 and the testimony and evidence received at the hearing. If the
9-15 commission considers further information necessary, it may request
9-16 it from any source.
9-17 Sec. 35.011. NOTICE OF HEARING TO CREATE DISTRICT OR ADD
9-18 CRITICAL AREA TO EXISTING DISTRICT. (a) The commission shall have
9-19 notice of the hearing published in a newspaper with general
9-20 circulation in the county or counties in which the area being
9-21 considered for district creation or addition to an existing
9-22 district is located. Notice must be published not later than the
9-23 30th day before the date of the hearing.
9-24 (b) The notice must include:
9-25 (1) a general statement of the nature and purpose of
9-26 the district that may be created in the critical area;
9-27 (2) if applicable, a statement that all or part of the
10-1 land in the critical area could be added to an existing district;
10-2 (3) a map generally outlining the boundaries of the
10-3 critical area being considered for district creation or addition to
10-4 an existing district or notice of the location at which a copy of
10-5 the map may be examined or obtained;
10-6 (4) a statement that the full executive director's
10-7 report concerning the critical area in question is available at the
10-8 commission's main office in Austin, Texas, and that the report is
10-9 available for inspection during regular business hours;
10-10 (5) the name and address of each library in the
10-11 proposed critical area to which the commission has provided copies
10-12 of the executive director's report; and
10-13 (6) the date, time, and place of the hearing.
10-14 (c) The commission also shall give written notice of the
10-15 date, time, place, and purpose of the hearing to the governing body
10-16 of each political subdivision located either partially or entirely
10-17 in the critical area. The notice must be given before the 30th day
10-18 preceding the date set for the hearing.
10-19 Sec. 35.012. COMMISSION ORDER. (a) At the conclusion of
10-20 its hearing and considerations, the commission shall issue an order
10-21 stating its findings and conclusions.
10-22 (b) If the commission finds that the land and other property
10-23 in the critical area would benefit from the creation of one or more
10-24 districts, that there is a public need for one or more districts,
10-25 and that the creation of one or more districts would further the
10-26 public welfare, the commission shall issue an order stating that
10-27 the creation of one or more districts is needed.
11-1 (c) During the period between the date of issuance of a
11-2 commission order under Subsection (b) and one year after the close
11-3 of the next regular session of the legislature following the
11-4 issuance of the order, the landowners in the critical area may:
11-5 (1) create one or more districts under Subchapter B,
11-6 Chapter 36;
11-7 (2) have the area annexed to a district that adjoins
11-8 the area; or
11-9 (3) create one or more districts through the
11-10 legislative process.
11-11 (d) The commission shall identify the areas subject to the
11-12 order of the commission issued under Subsection (b) that have not,
11-13 in the period provided by Subsection (c), been incorporated into a
11-14 district, and shall delineate proposed boundaries of a district to
11-15 include those areas. If the commission proposes the creation of
11-16 one or more districts, the commission shall begin the procedures
11-17 for creation of a district provided in Subchapter B, Chapter 36.
11-18 (e) If the commission fails to find that the district would
11-19 be a benefit to the land and other property within the critical
11-20 area, that there is a public need for the district, or that
11-21 creation of the district will further the public welfare, the
11-22 commission shall issue an order stating that a district should not
11-23 be created within the boundaries of the critical area.
11-24 (f) An order of the commission issued under this section may
11-25 not be appealed.
11-26 Sec. 35.013. ADDING CRITICAL AREA TO EXISTING DISTRICT. (a)
11-27 If land in a critical area is located adjacent to one or more
12-1 existing districts, the commission, instead of issuing an order
12-2 under Section 35.012, may issue an order recommending that the
12-3 critical area be added to the existing district designated by the
12-4 commission. In its order, the commission must find that the land
12-5 and other property in the critical area and the land in the
12-6 existing district will benefit from the addition of the area, that
12-7 there is a public need to add the critical area to the existing
12-8 district, and that the addition of the land to the existing
12-9 district would further the public welfare.
12-10 (b) If the executive director recommends that the critical
12-11 area be added to an existing district or if the commission
12-12 considers it possible to add the critical area to an adjacent
12-13 existing district, the commission shall give notice to the board of
12-14 the existing district recommended by the executive director or
12-15 considered by the commission to possibly serve the area and to any
12-16 other existing districts adjacent to the critical area.
12-17 (c) The commission shall submit a copy of the order to the
12-18 board of the district to which it is recommending the critical area
12-19 be added. The board shall vote on the addition of the critical
12-20 area to the district and shall advise the commission of the
12-22 (d) If the board votes to accept the addition of the
12-23 critical area to the district, the board shall call an election
12-24 within the critical area as delineated by the commission to
12-25 determine if the critical area will be added to the district. In
12-26 the order calling the election, the board shall designate election
12-27 precincts and polling places for the elections.
13-1 (e) The board shall give notice of the election and the
13-2 proposition to be voted on. The board shall publish notice of the
13-3 election at least one time in one or more newspapers with general
13-4 circulation within the boundaries of the critical area. The notice
13-5 must be published before the 30th day preceding the date set for
13-6 the election.
13-7 (f) The ballots for the election shall be printed to provide
13-8 for voting for or against the proposition: "The inclusion of
13-9 __________ (briefly describe critical area) in the __________
13-10 District." If the district has issued bonds, the proposition shall
13-11 include the following language: "and assumption by the described
13-12 area of a proportional share of the outstanding indebtedness of the
13-14 (g) Immediately after the election, the presiding judge of
13-15 each polling place shall deliver the returns of the election to the
13-16 board, and the board shall canvass the returns for the election
13-17 within the critical area and declare the results. If a majority of
13-18 the voters in the critical area voting on the proposition vote in
13-19 favor of the proposition, the board shall declare that the critical
13-20 area is added to the district. If a majority of the voters in the
13-21 critical area voting on the proposition vote against adding the
13-22 critical area to the district, the board shall declare that the
13-23 critical area is not added to the district. The board shall file a
13-24 copy of the election results with the commission.
13-25 (h) If the voters approve adding the critical area to the
13-26 district, the board of the district to which the critical area is
13-27 added shall provide reasonable representation on that board
14-1 compatible with the district's existing scheme of representation.
14-2 (i) If the proposition is defeated, another election to add
14-3 the critical area to an existing district may not be called before
14-4 the first anniversary of the date on which the election on the
14-5 proposition was held.
14-6 Sec. 35.014. COSTS OF ELECTIONS. (a) The costs of an
14-7 election to create a district at which a district is authorized to
14-8 be created shall be paid by the district.
14-9 (b) The costs of an election to add a critical area to an
14-10 existing district at which the voters approve adding the critical
14-11 area to the district shall be paid by the existing district.
14-12 (c) The costs of an election to create a district or add a
14-13 critical area to an existing district at which the proposition
14-14 fails shall be paid by the commission.
14-15 Sec. 35.015. STATE ASSISTANCE. (a) A political subdivision
14-16 located in or that has within its boundaries an area or part of an
14-17 area delineated as a critical area, and in which the qualified
14-18 voters fail to approve the creation of a district or to join an
14-19 existing district, shall not be eligible to receive any financial
14-20 assistance from the state under Chapter 15, 16, or 17 for use
14-21 within that portion of the critical area not covered by a district.
14-22 (b) A political subdivision located in an area delineated as
14-23 a critical area, and in which qualified voters approve the creation
14-24 of a district or annexation into an existing district, shall be
14-25 given consideration to receive financial assistance from the state
14-26 under Chapter 17 for funds to be used in addressing issues
14-27 identified in the critical area report in the manner provided by
15-1 Sections 17.124 and 17.125, except that the board is not required
15-2 to make the finding set out in Section 17.125(a)(2).
15-3 Sec. 35.016. EXEMPTION FROM CHAPTER. (a) This chapter does
15-4 not apply to any active groundwater conservation district or to
15-5 land within an active groundwater conservation district.
15-6 (b) A district is considered active if it meets the
15-7 requirements in Section 36.301(c).
15-8 Sec. 35.017. STATE-OWNED LAND. If state-owned land or a
15-9 portion of state-owned land is located in a critical area, the
15-10 state agency that has management and control over that land under
15-11 the constitution or by statute may elect by written agreement with
15-12 the commission and the district to include the state-owned land in
15-13 the district. The agreement shall be entered into as provided by
15-14 the Texas Intergovernmental Cooperation Act, Chapter 741,
15-15 Government Code, and may include provisions for the payment by the
15-16 state agency of reasonable fees to the district. If the state does
15-17 not elect to enter into the agreement to include the state-owned
15-18 land in the district, the state agency must establish a groundwater
15-19 management plan that will conserve, protect, and prevent the waste
15-20 of groundwater on that state-owned land.
15-21 CHAPTER 36. GROUNDWATER CONSERVATION DISTRICTS
15-22 SUBCHAPTER A. GENERAL PROVISIONS
15-23 Sec. 36.001. DEFINITIONS. In this chapter:
15-24 (1) "District" means any district or authority created
15-25 under Section 52, Article III, or Section 59, Article XVI, Texas
15-26 Constitution, that has the authority to regulate the spacing of
15-27 water wells, the production from water wells, or both.
16-1 (2) "Commission" means the Texas Natural Resource
16-2 Conservation Commission.
16-3 (3) "Executive director" means the executive director
16-4 of the commission.
16-5 (4) "Executive administrator" means the executive
16-6 administrator of the Texas Water Development Board.
16-7 (5) "Groundwater" means water percolating below the
16-8 surface of the earth.
16-9 (6) "Groundwater reservoir" means a specific
16-10 subsurface water-bearing reservoir having ascertainable boundaries
16-11 containing groundwater.
16-12 (7) "Subdivision of a groundwater reservoir" means a
16-13 definable part of a groundwater reservoir in which the groundwater
16-14 supply will not be appreciably affected by withdrawing water from
16-15 any other part of the reservoir, as indicated by known geological
16-16 and hydrological conditions and relationships and on foreseeable
16-17 economic development at the time the subdivision is designated or
16-19 (8) "Waste" means any one or more of the following:
16-20 (A) withdrawal of groundwater from a groundwater
16-21 reservoir at a rate and in an amount that causes or threatens to
16-22 cause intrusion into the reservoir of water unsuitable for
16-23 agricultural, gardening, domestic, or stock raising purposes;
16-24 (B) the flowing or producing of wells from a
16-25 groundwater reservoir if the water produced is not used for a
16-26 beneficial purpose;
16-27 (C) escape of groundwater from a groundwater
17-1 reservoir to any other reservoir or geologic strata that does not
17-2 contain groundwater;
17-3 (D) pollution or harmful alteration of
17-4 groundwater in a groundwater reservoir by saltwater or by other
17-5 deleterious matter admitted from another stratum or from the
17-6 surface of the ground;
17-7 (E) wilfully or negligently causing, suffering,
17-8 or allowing groundwater to escape into any river, creek, natural
17-9 watercourse, depression, lake, reservoir, drain, sewer, street,
17-10 highway, road, or road ditch, or onto any land other than that of
17-11 the owner of the well unless such discharge is authorized by
17-12 permit, rule, or order issued by the commission under Chapter 26;
17-13 (F) groundwater pumped for irrigation that
17-14 escapes as irrigation tailwater onto land other than that of the
17-15 owner of the well unless permission has been granted by the
17-16 occupant of the land receiving the discharge; or
17-17 (G) for water produced from an artesian well,
17-18 "waste" has the meaning assigned by Section 11.205.
17-19 (9) "Use for a beneficial purpose" means use for:
17-20 (A) agricultural, gardening, domestic, stock
17-21 raising, municipal, mining, manufacturing, industrial, commercial,
17-22 recreational, or pleasure purposes;
17-23 (B) exploring for, producing, handling, or
17-24 treating oil, gas, sulphur, or other minerals; or
17-25 (C) any other purpose that is useful and
17-26 beneficial to the user.
17-27 (10) "Subsidence" means the lowering in elevation of
18-1 the land surface caused by withdrawal of groundwater.
18-2 (11) "Board" means the board of directors of a
18-4 (12) "Director" means a member of a board.
18-5 (13) "Management area" means an area designated and
18-6 delineated by the commission under Chapter 35 as an area suitable
18-7 for management of groundwater resources.
18-8 (14) "Critical area" means an area designated and
18-9 delineated by the commission under Chapter 35 as an area
18-10 experiencing or expected to experience critical groundwater
18-12 (15) "Political subdivision" means a county,
18-13 municipality, or other body politic or corporate of the state,
18-14 including a district or authority created under Section 52, Article
18-15 III, or Section 59, Article XVI, Texas Constitution, a state
18-16 agency, or a nonprofit water supply corporation created under
18-17 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
18-18 (Article 1434a, Vernon's Texas Civil Statutes).
18-19 Sec. 36.002. OWNERSHIP OF GROUNDWATER. The ownership and
18-20 rights of the owners of the land and their lessees and assigns in
18-21 groundwater are hereby recognized, and nothing in this code shall
18-22 be construed as depriving or divesting the owners or their lessees
18-23 and assigns of the ownership or rights, subject to rules
18-24 promulgated by a district.
18-25 (Sections 36.003-36.010 reserved for expansion
18-26 SUBCHAPTER B. CREATION OF DISTRICT
18-27 Sec. 36.011. METHOD OF CREATING DISTRICT. (a) A
19-1 groundwater conservation district may be created under and subject
19-2 to the authority, conditions, and restrictions of Section 59,
19-3 Article XVI, Texas Constitution.
19-4 (b) The commission has exclusive jurisdiction over the
19-5 delineation of management areas and the creation of districts.
19-6 Sec. 36.012. COMPOSITION OF DISTRICT. (a) A district may
19-7 include all or part of one or more counties, cities, districts, or
19-8 other political subdivisions.
19-9 (b) A district may not include territory located in more
19-10 than one county except on a majority vote of the voters residing
19-11 within the territory in each county sought to be included in the
19-12 district at an election called for that purpose.
19-13 (c) The boundaries of a district must be coterminous with or
19-14 inside the boundaries of a management area or a critical area.
19-15 (d) A district may consist of separate bodies of land
19-16 separated by land not included in the district.
19-17 (e) A majority of the voters in a segregated area must
19-18 approve the creation of the district before that area may be
19-19 included in the district.
19-20 Sec. 36.013. PETITION TO CREATE DISTRICT. (a) A petition
19-21 requesting creation of a district must be filed with the executive
19-22 director for review and submission to the commission.
19-23 (b) The petition filed pursuant to this section must be
19-24 signed by:
19-25 (1) a majority of the landowners within the proposed
19-26 district, as indicated by the county tax rolls; or
19-27 (2) if there are more than 50 landowners in the
20-1 proposed district, at least 50 of those landowners.
20-2 (c) The petition must include:
20-3 (1) the name of the proposed district;
20-4 (2) the area and boundaries of the proposed district,
20-5 including a map generally outlining the boundaries of the proposed
20-7 (3) the purpose or purposes of the district;
20-8 (4) a statement of the general nature of any projects
20-9 proposed to be undertaken by the district, the necessity and
20-10 feasibility of the work, and the estimated costs of those projects
20-11 according to the persons filing the projects if the projects are to
20-12 be funded by the sale of bonds or notes; and
20-13 (5) any additional terms or conditions that restrict
20-14 the powers of the district from those provided in this chapter.
20-15 (d) If a part of the proposed district is not included
20-16 within either a management area or a critical area, the petition to
20-17 create a district may also contain a request to create a management
20-18 area. A request to create a management area must comply with the
20-19 requirements for a petition in Section 35.005, and may be acted on
20-20 by the commission separately from the petition to create the
20-22 Sec. 36.014. NOTICE AND HEARING ON DISTRICT CREATION. (a)
20-23 The notice of hearing on a petition must include a statement of the
20-24 nature and purpose of the proposed district and the date, time, and
20-25 place of hearing.
20-26 (b) The notice must be posted on the bulletin board used for
20-27 posting legal notices in each county in which all or part of the
21-1 proposed district is to be located.
21-2 (c) Notice of the hearing shall be published in a newspaper
21-3 with general circulation in the county or counties in which the
21-4 proposed district is to be located. Notice must be published not
21-5 later than the 30th day before the date of the hearing.
21-6 (d) If the petition contains a request to create a
21-7 management area in all or part of the proposed district, the notice
21-8 must also be given in accordance with the requirements in Section
21-9 35.006 for the designation of management areas.
21-10 Sec. 36.015. FINDINGS. (a) If the commission finds that a
21-11 district is feasible and practicable, that it would be a benefit to
21-12 the land in the district, and that it would be a public benefit or
21-13 utility, the commission shall issue an order containing these
21-14 findings granting the petition.
21-15 (b) If the commission finds that a district is not feasible
21-16 and practicable, that it would not be a benefit to the land in the
21-17 district, that it would not be a public benefit or utility, or that
21-18 it is not needed, the commission by order shall deny the petition.
21-19 (c) The commission may adjust the boundaries of the proposed
21-20 district to exclude any land that would not be benefited by
21-21 inclusion in the district and is not necessary to the district for
21-22 proper regulation of the groundwater reservoir.
21-23 (d) If the commission grants the petition to create the
21-24 district, it shall direct in its order creating the district that
21-25 an election be called by the temporary directors to confirm the
21-26 creation of the district and to elect permanent directors.
21-27 (e) The refusal to grant a petition to create a district
22-1 does not invalidate or affect the designation of any management
22-2 area requested in the same petition.
22-3 (f) The commission shall act on the petition within a
22-4 reasonable amount of time.
22-5 Sec. 36.016. APPOINTMENT OF TEMPORARY DIRECTORS. (a) If
22-6 the commission grants a petition to create a district, it shall
22-7 appoint five temporary directors who shall serve until the initial
22-8 directors are elected and have qualified for office or until the
22-9 voters fail to approve the creation of the district.
22-10 (b) If an appointee of the commission fails to qualify or if
22-11 a vacancy occurs in the office of temporary director, the
22-12 commission shall appoint an individual to fill the vacancy.
22-13 (c) As soon as all temporary directors have qualified, the
22-14 directors shall meet, take the oath of office, and elect a chairman
22-15 and vice chairman from among their membership. The chairman shall
22-16 preside at all meetings of the board and, in the chairman's
22-17 absence, the vice chairman shall preside.
22-18 Sec. 36.017. CONFIRMATION AND DIRECTORS' ELECTION. (a) Not
22-19 later than the 60th day after the date all temporary directors have
22-20 been appointed and have qualified, the temporary directors shall
22-21 meet and order an election to be held within the boundaries of the
22-22 proposed district to approve the creation of the district and to
22-23 elect permanent directors.
22-24 (b) In the order calling the election, the temporary
22-25 directors shall designate election precincts and polling places for
22-26 the election. In designating the polling places, the temporary
22-27 directors shall consider the needs of all voters for conveniently
23-1 located polling places.
23-2 (c) The temporary directors shall publish notice of the
23-3 election at least one time in at least one newspaper with general
23-4 circulation within the boundaries of the proposed district. The
23-5 notice must be published before the 30th day preceding the date of
23-6 the election.
23-7 (d) The ballot for the election must be printed to provide
23-8 for voting for or against the proposition: "The creation of
23-9 the ____________ Groundwater Conservation District." If the
23-10 district levies a maintenance tax for payment of its expenses, the
23-11 proposition shall include the following language: "and the levy of
23-12 a maintenance tax at a rate not to exceed ______ cents for each
23-13 $100 of assessed valuation."
23-14 (e) Immediately after the election, the presiding judge of
23-15 each polling place shall deliver the returns of the election to the
23-16 temporary board, and the board shall canvass the returns and
23-17 declare the result. The board shall file a copy of the election
23-18 result with the commission.
23-19 (f) If a majority of the votes cast at the election favor
23-20 the creation of the district, the temporary board shall declare the
23-21 district created and shall enter the result in its minutes.
23-22 (g) If a majority of the votes cast at the election are
23-23 against the creation of the district, the temporary board shall
23-24 declare the district defeated and shall enter the result in its
23-26 (h) If the majority of the votes cast at the election are
23-27 against the creation of the district, the district shall have no
24-1 further authority, except that any debts incurred shall be paid and
24-2 the organization of the district shall be maintained until all the
24-3 debts are paid.
24-4 Sec. 36.018. INCLUSION OF MUNICIPALITY. (a) If part of the
24-5 territory to be included in a district is located in a
24-6 municipality, a separate voting district may not be established in
24-7 the municipality for the purpose of determining whether the
24-8 municipality as a separate area is to be included in the district.
24-9 (b) If for any other reason the territory in a municipality
24-10 is established as a separate voting district, the failure by the
24-11 voters in the municipal territory to confirm the creation of the
24-12 district or the annexation of territory to a district does not
24-13 prevent the territory in the municipality from being included in
24-14 the district.
24-15 Sec. 36.019. CONFIRMATION ELECTION IN DISTRICT INCLUDING
24-16 LAND IN MORE THAN ONE COUNTY. A district, the major portion of
24-17 which is located in one county, may not be organized to include
24-18 land in another county unless the election held in the other county
24-19 to confirm and ratify the creation of the district is approved by a
24-20 majority of the voters of the other county voting in an election
24-21 called for that purpose.
24-22 Sec. 36.020. BOND AND TAX PROPOSAL. (a) At an election to
24-23 create a district, the temporary directors may include a
24-24 proposition for the issuance of bonds or notes, the levy of taxes
24-25 to retire all or part of the bonds or notes, and the levy of a
24-26 maintenance tax. The maintenance tax rate may not exceed 50 cents
24-27 on each $100 of assessed valuation.
25-1 (b) The board shall include in any bond and tax proposition
25-2 the maximum amount of bonds or notes to be issued and their maximum
25-3 maturity date.
25-4 Sec. 36.021. NOTIFICATION OF COUNTY CLERK. Within 30 days
25-5 following the creation of a district or any amendment to the
25-6 boundaries of a district, the board of directors shall file with
25-7 the county clerk of each county in which all or part of the
25-8 district is located a certified copy of the description of the
25-9 boundaries of the district. Each county clerk shall record the
25-10 certified copy of the boundaries in the property records of that
25-12 (Sections 36.022-36.050 reserved for expansion
25-13 SUBCHAPTER C. ADMINISTRATION
25-14 Sec. 36.051. BOARD OF DIRECTORS. (a) The governing body of
25-15 a district is the board of directors, which shall consist of not
25-16 fewer than five and not more than 11 directors elected for
25-17 four-year terms. The number of directors may be changed as
25-18 determined by the board when territory is annexed by the district.
25-19 (b) A member of a governing body of another political
25-20 subdivision is ineligible for appointment or election as a
25-21 director. A director is disqualified and vacates the office of
25-22 director if the director is appointed or elected as a member of the
25-23 governing body of another political subdivision. This subsection
25-24 does not apply to any district with a population less than 50,000.
25-25 (c) Vacancies in the office of director shall be filled by
25-26 appointment of the board. If the vacant office is not scheduled
25-27 for election for longer than two years at the time of the
26-1 appointment, the board shall order an election for the unexpired
26-2 term to be held as part of the next regularly scheduled director's
26-3 election. The appointed director's term shall end on qualification
26-4 of the director elected at that election.
26-5 Sec. 36.052. OTHER LAWS NOT APPLICABLE. Other laws
26-6 governing the administration or operations of districts created
26-7 under Section 52, Article III, or Section 59, Article XVI, Texas
26-8 Constitution, shall not apply to any district governed by this
26-9 chapter. This chapter prevails over any other law in conflict or
26-10 inconsistent with this chapter, except any special law governing a
26-11 specific district shall prevail over this chapter.
26-12 Sec. 36.053. QUORUM. A majority of the membership of the
26-13 board constitutes a quorum for any meeting, and a concurrence of a
26-14 majority of the entire membership of the board is sufficient for
26-15 transacting any business of the district.
26-16 Sec. 36.054. OFFICERS. (a) After a district is created and
26-17 the directors have qualified, the board shall meet, elect a
26-18 president, vice president, secretary, and any other officers or
26-19 assistant officers as the board may deem necessary and begin the
26-20 discharge of its duties.
26-21 (b) After each directors' election, the board shall meet and
26-22 elect officers.
26-23 (c) The president is the chief executive officer of the
26-24 district, presides at all meetings of the board, and shall execute
26-25 all documents on behalf of the district. The vice president shall
26-26 act as president in case of the absence or disability of the
26-27 president. The secretary is responsible for seeing that all
27-1 records and books of the district are properly kept and shall
27-2 attest the president's signature on all documents.
27-3 (d) The board may appoint another director, the general
27-4 manager, or any employee as assistant or deputy secretary to assist
27-5 the secretary, and any such person shall be entitled to certify as
27-6 to the authenticity of any record of the district, including but
27-7 not limited to all proceedings relating to bonds, contracts, or
27-8 indebtedness of the district.
27-9 (e) After any election or appointment of a director, a
27-10 district shall notify the executive director within 30 days after
27-11 the date of the election or appointment of the name and mailing
27-12 address of the director chosen and the date that director's term of
27-13 office expires. The executive director shall provide forms to the
27-14 district for such purpose.
27-15 Sec. 36.055. SWORN STATEMENT, BOND, AND OATH OF OFFICE. (a)
27-16 As soon as practicable after a director is elected or appointed,
27-17 that director shall make the sworn statement prescribed by the
27-18 constitution for public office.
27-19 (b) As soon as practicable after a director has made the
27-20 sworn statement, and before beginning to perform the duties of
27-21 office, that director shall take the oath of office prescribed by
27-22 the constitution for public officers.
27-23 (c) Before beginning to perform the duties of office, each
27-24 director shall execute a bond for $10,000 payable to the district
27-25 and conditioned on the faithful performance of that director's
27-26 duties. All bonds of the directors shall be approved by the board
27-27 and paid for by the district.
28-1 (d) The sworn statement, bond, and oath shall be filed with
28-2 the district and retained in its records. A duplicate original of
28-3 the sworn statement and the oath shall also be filed with the
28-4 secretary of state within 10 days after their execution and need
28-5 not be filed before the new director begins to perform the duties
28-6 of office.
28-7 Sec. 36.056. GENERAL MANAGER. (a) The board may employ or
28-8 contract with a person to perform such services as general manager
28-9 for the district as the board may from time to time specify. The
28-10 board may delegate to the general manager full authority to manage
28-11 and operate the affairs of the district subject only to orders of
28-12 the board.
28-13 (b) The board may delegate to the general manager the
28-14 authority to employ all persons necessary for the proper handling
28-15 of the business and operation of the district and to determine the
28-16 compensation to be paid all employees other than the general
28-18 (c) Except in a district that is composed of the territory
28-19 of more than one county, a director may be employed as general
28-20 manager of the district. The compensation of a general manager who
28-21 also serves as a director shall be established by the other
28-23 Sec. 36.057. MANAGEMENT OF DISTRICT. (a) The board shall
28-24 be responsible for the management of all the affairs of the
28-25 district. The district shall employ or contract with all persons,
28-26 firms, partnerships, corporations, or other entities, public or
28-27 private, deemed necessary by the board for the conduct of the
29-1 affairs of the district, including, but not limited to, engineers,
29-2 attorneys, financial advisors, operators, bookkeepers, tax
29-3 assessors and collectors, auditors, and administrative staff.
29-4 (b) The board shall set the compensation and terms for
29-6 (c) In selecting attorneys, engineers, auditors, financial
29-7 advisors, or other professional consultants, the district shall
29-8 follow the procedures provided in the Professional Services
29-9 Procurement Act, Subchapter A, Chapter 2254, Government Code.
29-10 (d) The board shall require an officer, employee, or
29-11 consultant who collects, pays, or handles any funds of the district
29-12 to furnish good and sufficient bond, payable to the district, in an
29-13 amount determined by the board to be sufficient to safeguard the
29-14 district. The bond shall be conditioned on the faithful
29-15 performance of that person's duties and on accounting for all funds
29-16 and property of the district. Such bond shall be signed or
29-17 endorsed by a surety company authorized to do business in the
29-19 (e) The board may pay the premium on surety bonds required
29-20 of officials, employees, or consultants of the district out of any
29-21 available funds of the district, including proceeds from the sale
29-22 of bonds.
29-23 (f) The board may adopt bylaws to govern the affairs of the
29-24 district to perform its purposes. The board may, by resolution,
29-25 authorize its general manager or other employee to execute
29-26 documents on behalf of the district.
29-27 (g) The board shall also have the right to purchase all
30-1 materials, supplies, equipment, vehicles, and machinery needed by
30-2 the district to perform its purposes.
30-3 Sec. 36.058. CONFLICTS OF INTEREST. A director of a
30-4 district is subject to the provisions of Chapter 171, Local
30-5 Government Code, relating to the regulation of conflicts of
30-6 officers of local governments.
30-7 Sec. 36.059. GENERAL ELECTIONS. (a) All elections shall be
30-8 generally conducted in accordance with the Election Code except as
30-9 otherwise provided for by this chapter. Write-in candidacies for
30-10 any district office shall be governed by Subchapter C, Chapter 146,
30-11 Election Code.
30-12 (b) The directors of the district shall be elected according
30-13 to the precinct method as defined by Chapter 12, page 1105, Special
30-14 Laws, Acts of the 46th Legislature, Regular Session, 1939. To be
30-15 qualified to be elected as a director, a person must be a
30-16 registered voter in the precinct that the person represents. If
30-17 any part of a municipal corporation is a part of one precinct, then
30-18 no part of the municipal corporation shall be included in another
30-19 precinct, except that a municipal corporation having a population
30-20 of more than 200,000 may be divided between two or more precincts.
30-21 In a multicounty district, not more than two of the five precincts
30-22 may include the same municipal corporation or part of the same
30-23 municipal corporation.
30-24 Sec. 36.060. FEES OF OFFICE; REIMBURSEMENT. (a) A director
30-25 is entitled to receive fees of office of not more than $100 a day
30-26 for each day the director actually spends performing the duties of
30-27 a director. The fees of office may not exceed $6,000 a year.
31-1 (b) Each director is also entitled to receive reimbursement
31-2 of actual expenses reasonably and necessarily incurred while
31-3 engaging in activities on behalf of the district.
31-4 (c) In order to receive fees of office and to receive
31-5 reimbursement for expenses, each director shall file with the
31-6 district a verified statement showing the number of days actually
31-7 spent in the service of the district and a general description of
31-8 the duties performed for each day of service.
31-9 Sec. 36.061. POLICIES. (a) Subject to the law governing
31-10 the district, the board shall adopt the following in writing:
31-11 (1) a code of ethics for district directors, officers,
31-12 employees, and persons who are engaged in handling investments for
31-13 the district;
31-14 (2) a policy relating to travel expenditures;
31-15 (3) a policy relating to district investments that
31-16 ensures that:
31-17 (A) purchases and sales of investments are
31-18 initiated by authorized individuals, conform to investment
31-19 objectives and regulations, and are properly documented and
31-20 approved; and
31-21 (B) periodic review is made of district
31-22 investments to evaluate investment performance and security;
31-23 (4) policies and procedures for selection, monitoring,
31-24 or review and evaluation of professional services;
31-25 (5) policies that ensure a better use of management
31-26 information, including:
31-27 (A) budgets for use in planning and controlling
32-2 (B) an audit or finance committee of the board;
32-4 (C) uniform reporting requirements that use
32-5 "Audits of State and Local Governmental Units" as a guide on audit
32-6 working papers and that uses "Governmental Accounting and Financial
32-7 Reporting Standards."
32-8 (b) The state auditor may audit the financial transactions
32-9 of any district if the state auditor determines that the audit is
32-11 Sec. 36.062. OFFICES AND MEETING PLACES. (a) The board
32-12 shall designate from time to time and maintain one or more regular
32-13 offices for conducting the business of the district and
32-14 maintaining the records of the district. Such offices may be
32-15 located either inside or outside the district's boundaries as
32-16 determined in the discretion of the board.
32-17 (b) The board shall designate one or more places inside or
32-18 outside the district for conducting the meetings of the board.
32-19 Sec. 36.063. NOTICE OF MEETINGS. Notice of meetings of the
32-20 board shall be given as set forth in the Open Meetings Act,
32-21 Chapter 551, Government Code. Neither failure to provide notice of
32-22 a regular meeting nor an insubstantial defect in notice of any
32-23 meeting shall affect the validity of any action taken at the
32-25 Sec. 36.064. MEETINGS. (a) The board shall hold regular
32-26 meetings at least quarterly. It may hold meetings at other times
32-27 as required for the business of the district.
33-1 (b) Meetings shall be conducted and notice of meetings
33-2 shall be posted in accordance with the Open Meetings Act, Chapter
33-3 551, Government Code. A meeting of a committee of the board, or a
33-4 committee composed of representatives of more than one board, where
33-5 less than a quorum of any one board is present is not subject to
33-6 the provisions of the Open Meetings Act, Chapter 551, Government
33-8 Sec. 36.065. RECORDS. (a) The board shall keep a complete
33-9 account of all its meetings and proceedings and shall preserve its
33-10 minutes, contracts, records, notices, accounts, receipts, and other
33-11 records in a safe place.
33-12 (b) The records of each district are the property of the
33-13 district and are subject to Chapter 552, Government Code.
33-14 (c) The preservation, storage, destruction, or other
33-15 disposition of the records of each district is subject to the
33-16 requirements of Chapter 201, Local Government Code, and rules
33-17 adopted thereunder.
33-18 Sec. 36.066. SUITS. (a) A district may sue and be sued in
33-19 the courts of this state in the name of the district by and through
33-20 its board. All courts shall take judicial notice of the creation
33-21 of the district and of its boundaries.
33-22 (b) Any court in the state rendering judgment for debt
33-23 against a district may order the board to levy, assess, and collect
33-24 taxes or assessments to pay the judgment.
33-25 (c) The president or the general manager of any district
33-26 shall be the agent of the district on whom process, notice, or
33-27 demand required or permitted by law to be served upon a district
34-1 may be served.
34-2 (d) Except as provided in Subsection (e), no suit may be
34-3 instituted in any court of this state contesting:
34-4 (1) the validity of the creation and boundaries of a
34-6 (2) any bonds or other obligations issued by a
34-7 district; or
34-8 (3) the validity or the authorization of a contract
34-9 with the United States by a district.
34-10 (e) The matters listed in Subsection (d) may be judicially
34-11 inquired into at any time and determined in any suit brought by the
34-12 State of Texas through the attorney general. The action shall be
34-13 brought on good cause shown, except where otherwise provided by
34-14 other provisions of this code or by the Texas Constitution. It is
34-15 specifically provided, however, that no such proceeding shall
34-16 affect the validity of or security for any bonds or other
34-17 obligations theretofore issued by a district if such bonds or other
34-18 obligations have been approved by the attorney general.
34-19 (f) A district shall not be required to give bond for
34-20 appeal, injunction, or costs in any suit to which it is a party and
34-21 shall not be required to deposit more than the amount of any award
34-22 in any eminent domain proceeding.
34-23 (g) If the district prevails in any suit other than a suit
34-24 in which it voluntarily intervenes, it may, in the same action,
34-25 recover reasonable fees for attorneys, expert witnesses, and other
34-26 costs incurred by the district before the court. The amount of the
34-27 attorney's fees shall be fixed by the court.
35-1 Sec. 36.067. CONTRACTS. (a) A district shall contract, and
35-2 be contracted with, in the name of the district.
35-3 (b) A district may purchase property from any other
35-4 governmental entity by negotiated contract without the necessity of
35-5 securing appraisals or advertising for bids.
35-6 Sec. 36.068. EMPLOYEE BENEFITS. (a) The board may provide
35-7 for and administer retirement, disability, and death compensation
35-8 funds for the employees of the district.
35-9 (b) The board may establish a public retirement system in
35-10 accordance with the provisions of Chapter 810, Government Code.
35-11 The board may also provide for a deferred compensation plan
35-12 described by Section 457 of the Internal Revenue Code of 1986 (26
35-13 U.S.C. Section 457).
35-14 (c) The board may include hospitalization and medical
35-15 benefits to its employees as part of the compensation paid to the
35-16 officers and employees and may adopt any plan, rule, or regulation
35-17 in connection with it and amend or change the plan, rule, or
35-18 regulation as it may determine.
35-19 (Sections 36.069-36.100 reserved for expansion
35-20 SUBCHAPTER D. POWERS AND DUTIES
35-21 Sec. 36.101. RULEMAKING POWER. (a) A district may make and
35-22 enforce rules to provide for conserving, preserving, protecting,
35-23 and recharging of the groundwater or of a groundwater reservoir or
35-24 its subdivisions in order to control subsidence or prevent waste of
35-25 groundwater and to carry out the powers and duties provided by this
35-27 (b) After notice and hearing, the board shall adopt and
36-1 enforce rules to implement this chapter, including rules governing
36-2 procedure before the board. Notice in this section shall include
36-3 publication of the agenda of the hearing in one or more newspapers
36-4 of general circulation in the county or counties in which the
36-5 district is located.
36-6 (c) The board shall compile its rules and make them
36-7 available for use and inspection at the district's principal
36-9 Sec. 36.102. ENFORCEMENT OF RULES. (a) A district may
36-10 enforce this chapter and its rules by injunction, mandatory
36-11 injunction, or other appropriate remedy in a court of competent
36-13 (b) The board may set reasonable civil penalties for breach
36-14 of any rule of the district that shall not exceed the jurisdiction
36-15 of a justice court as provided by Section 27.031, Government Code.
36-16 (c) A penalty under this section is in addition to any other
36-17 penalty provided by the law of this state and may be enforced by
36-18 complaints filed in the appropriate court of jurisdiction in the
36-19 county in which the district's principal office or meeting place is
36-21 (d) If the district prevails in any suit to enforce its
36-22 rules, it may, in the same action, recover reasonable fees for
36-23 attorneys, expert witnesses, and other costs incurred by the
36-24 district before the court. The amount of the attorney's fees shall
36-25 be fixed by the court.
36-26 Sec. 36.103. IMPROVEMENTS AND FACILITIES. (a) A district
36-27 may build, acquire, or obtain by any lawful means any property
37-1 necessary for the district to carry out its purpose and the
37-2 provisions of this chapter.
37-3 (b) A district may:
37-4 (1) acquire land to erect dams or to drain lakes,
37-5 draws, and depressions;
37-6 (2) construct dams;
37-7 (3) drain lakes, depressions, draws, and creeks;
37-8 (4) install pumps and other equipment necessary to
37-9 recharge a groundwater reservoir or its subdivision; and
37-10 (5) provide necessary facilities for the purchase,
37-11 sale, transportation, and distribution of water.
37-12 Sec. 36.104. PURCHASE, SALE, TRANSPORTATION, AND
37-13 DISTRIBUTION OF WATER. A district may purchase, sell, transport,
37-14 and distribute surface water or groundwater for any purpose.
37-15 Sec. 36.105. EMINENT DOMAIN. (a) A district may exercise
37-16 the power of eminent domain to acquire by condemnation a fee simple
37-17 or other interest in property if that property interest is
37-18 necessary to the exercise of the authority conferred by this
37-20 (b) The power of eminent domain authorized in this section
37-21 may not be used for the condemnation of land for the purpose of
37-22 acquiring rights to groundwater, surface water or water rights.
37-23 (c) The district must exercise the power of eminent domain
37-24 in the manner provided by Chapter 21, Property Code, but the
37-25 district is not required to deposit a bond as provided by Section
37-26 21.021(a), Property Code.
37-27 (d) In a condemnation proceeding brought by a district, the
38-1 district is not required to pay in advance or give bond or other
38-2 security for costs in the trial court, to give bond for the
38-3 issuance of a temporary restraining order or a temporary
38-4 injunction, or to give bond for costs or supersedeas on an appeal
38-5 or writ of error.
38-6 (e) In exercising the power of eminent domain, if the
38-7 district requires relocating, raising, lowering, rerouting,
38-8 changing the grade, or altering the construction of any railroad,
38-9 highway, pipeline, or electric transmission or distribution,
38-10 telegraph, or telephone lines, conduits, poles, or facilities, the
38-11 district must bear the actual cost of relocating, raising,
38-12 lowering, rerouting, changing the grade, or altering the
38-13 construction to provide comparable replacement without enhancement
38-14 of facilities after deducting the net salvage value derived from
38-15 the old facility.
38-16 Sec. 36.106. SURVEYS. A district may make surveys of the
38-17 groundwater reservoir or subdivision and surveys of the facilities
38-18 for development, production, transportation, distribution, and use
38-19 of the water, in order to determine the quantity of water available
38-20 for production and use and to determine the improvements,
38-21 development, and recharging needed by a reservoir or its
38-23 Sec. 36.107. RESEARCH AND PLANNING. (a) A district may
38-24 carry out any research projects deemed necessary by the board.
38-25 (b) Following notice and hearing, the district shall develop
38-26 a comprehensive management plan for the most efficient use of the
38-27 groundwater, for controlling and preventing waste of groundwater,
39-1 and for controlling and preventing subsidence. The plan may be
39-2 reviewed annually but must be reviewed by the board at least once
39-3 every five years.
39-4 (c) The district shall specify in the management plan, in as
39-5 much detail as possible, the acts, procedures, performance, and
39-6 avoidance that are or may be necessary to effect the plan,
39-7 including specifications and proposed rules. The district shall
39-8 adopt rules necessary to implement the management plan. The
39-9 district shall file a copy of the management plan and the rules
39-10 with the commission.
39-11 Sec. 36.108. JOINT PLANNING IN MANAGEMENT AREA. (a) If two
39-12 or more districts are located within the boundaries of the same
39-13 management area, each district shall prepare a comprehensive
39-14 management plan as required by Section 36.107 covering that
39-15 district's respective territory. On completion of the plan, each
39-16 district shall forward a copy of the new revised management plan to
39-17 the other districts in the management area.
39-18 (b) The board of directors of each district in the
39-19 management area may, by resolution, call a joint meeting with the
39-20 boards of directors of the other districts in the management area
39-21 to review the management plans and accomplishments for the
39-22 management area. The boards shall meet to consider the plans
39-23 individually and shall compare them to other management plans then
39-24 in force in the management area. In reviewing the management
39-25 plans, the boards shall consider:
39-26 (1) the goals of each management plan and its impact
39-27 on planning throughout the management area;
40-1 (2) the effectiveness of the measures established by
40-2 each management plan for conserving and protecting groundwater and
40-3 preventing waste, and the effectiveness of these measures in the
40-4 management area generally; and
40-5 (3) any other matters that the boards consider
40-6 relevant to the protection and conservation of groundwater and the
40-7 prevention of waste in the management area.
40-8 (c) A joint meeting of the boards of directors must be held
40-9 in accordance with the Open Meetings Act, Chapter 551, Government
40-10 Code. Notice of the meeting shall be given in accordance with the
40-11 requirements for notice of district board of directors meetings
40-12 under that Act. In addition, notice of the meeting shall be
40-13 published not later than the 30th day before the date of the
40-14 scheduled meeting in a newspaper with general circulation in each
40-15 county in the management area.
40-16 (d) A district in the management area may file a petition
40-17 with the commission requesting an inquiry if the petitioner
40-18 district believes that:
40-19 (1) another district in the management area has failed
40-20 to adopt rules;
40-21 (2) the groundwater in the management area is not
40-22 adequately protected by the rules adopted by another district; or
40-23 (3) the groundwater in the management area is not
40-24 adequately protected due to the failure of another district to
40-25 enforce substantial compliance with its rules.
40-26 (e) Not later than the 90th day after the date the petition
40-27 is filed, the commission shall review the petition and either:
41-1 (1) dismiss it if it finds that the evidence is not
41-2 adequate to show that any of the conditions alleged in the petition
41-3 exist; or
41-4 (2) select a review panel as provided in Subsection
41-6 (f) The commission may appoint a review panel consisting of
41-7 a chairman and four other members. A director or general manager
41-8 of a district located outside the management area that is the
41-9 subject of the petition may be appointed to the review panel. The
41-10 commission may not appoint more than two members of the review
41-11 panel from any one district. The commission also shall appoint a
41-12 disinterested person to serve as a nonvoting recording secretary
41-13 for the review panel. The recording secretary may be an employee
41-14 of the commission. The recording secretary shall record and
41-15 document the proceedings of the panel.
41-16 (g) Not later than the 120th day after appointment, the
41-17 review panel shall review the petition and any evidence relevant to
41-18 the petition and, in a public meeting, prepare a report to the
41-19 commission. The commission may direct the review panel to conduct
41-20 public hearings at a location in the management area to take
41-21 evidence on the petition. The review panel may attempt to
41-22 negotiate a settlement or resolve the dispute by any lawful means.
41-23 (h) In its report, the review panel shall include:
41-24 (1) a summary of all evidence taken in any hearing on
41-25 the petition;
41-26 (2) a list of findings and recommended actions
41-27 appropriate for the commission to take and the reasons it finds
42-1 those actions appropriate; and
42-2 (3) any other information the panel considers
42-4 Sec. 36.109. COLLECTION OF INFORMATION. A district may
42-5 collect any information the board deems necessary, including
42-6 information regarding the use of groundwater, water conservation,
42-7 and the practicability of recharging a groundwater reservoir.
42-8 Sec. 36.110. PUBLICATION OF PLANS AND INFORMATION. A
42-9 district may publish its plans and the information it develops,
42-10 bring them to the attention of the users of groundwater in the
42-11 district, and encourage the users to adopt and use them.
42-12 Sec. 36.111. RECORDS AND REPORTS. The district shall
42-13 require that records be kept and reports be made of the drilling,
42-14 equipping, and completing of water wells and of the production and
42-15 use of groundwater.
42-16 Sec. 36.112. DRILLERS' LOGS. A district shall require that
42-17 accurate drillers' logs be kept of water wells and that copies of
42-18 drillers' logs and electric logs be filed with the district.
42-19 Sec. 36.113. PERMITS FOR WELLS. A district shall require
42-20 permits for the drilling, equipping, or completing of wells, or for
42-21 substantially altering the size of wells or well pumps. Permits
42-22 may be issued subject to the rules promulgated by the district and
42-23 subject to terms and provisions with reference to the drilling,
42-24 equipping, completion, or alteration of wells or pumps that may be
42-25 necessary to conserve the groundwater, prevent waste, minimize as
42-26 far as practicable the drawdown of the water table or the reduction
42-27 of artesian pressure, lessen interference between wells, or control
43-1 and prevent subsidence.
43-2 Sec. 36.114. PERMIT: APPLICATION AND HEARING. The district
43-3 shall promptly consider and pass on each application for a permit.
43-4 If, within 20 days after the date it is submitted, an application
43-5 has not been passed on or set for a hearing on a specific date, the
43-6 applicant may petition the district court of the county where the
43-7 land is located for a writ of mandamus to compel the district to
43-8 act on the application or set a date for a hearing on the
43-9 application. A hearing shall be held within 35 days after the
43-10 setting of the date and the district shall act on the application
43-11 within 35 days after the date of the hearing.
43-12 Sec. 36.115. DRILLING OR ALTERING WELL WITHOUT PERMIT. (a)
43-13 No person, firm, or corporation may drill a well without first
43-14 obtaining a permit from the district.
43-15 (b) No person, firm, or corporation may alter the size of a
43-16 well or well pump such that it would bring that well under the
43-17 jurisdiction of the district without first obtaining a permit from
43-18 the district.
43-19 (c) No person, firm, or corporation may operate a well
43-20 without first obtaining a permit from the district.
43-21 (d) A violation occurs on the first day the drilling,
43-22 alteration, or operation begins and continues each day thereafter
43-23 until the appropriate permits are approved.
43-24 Sec. 36.116. REGULATION OF SPACING AND PRODUCTION. In order
43-25 to minimize as far as practicable the drawdown of the water table
43-26 or the reduction of artesian pressure, to control subsidence, or to
43-27 prevent waste, a district may provide for the spacing of water
44-1 wells and may regulate the production of wells.
44-2 Sec. 36.117. EXCEPTIONS; LIMITATIONS. (a) A district may
44-3 not require a permit for:
44-4 (1) drilling or producing from a well either drilled,
44-5 completed, or equipped so that it is incapable of producing more
44-6 than 25,000 gallons of groundwater a day;
44-7 (2) the drilling or alteration of the size of a well
44-8 or to restrict the production of a well if the water produced or to
44-9 be produced from the well is used or to be used to supply the
44-10 domestic needs of 10 or fewer households and a person who is a
44-11 member of each household is either the owner of the well, a person
44-12 related to the owner or a member of the owner's household within
44-13 the second degree by consanguinity, or an employee of the owner;
44-14 (3) the drilling or alteration of the size of a well
44-15 or to restrict the production from the well if the water produced
44-16 or to be produced from the well is used or to be used to provide
44-17 water for feeding livestock and poultry connected with farming,
44-18 ranching, or dairy enterprises;
44-19 (4) water wells to supply water for hydrocarbon
44-20 production activities, regardless of whether those wells are
44-21 producing, that are associated with any well permitted by the
44-22 Railroad Commission of Texas drilled before September 1, 1985; or
44-23 (5) jet wells used for domestic needs.
44-24 (b) The board shall adopt rules determining the
44-25 applicability of Subsection (a)(3) to facilities used primarily for
44-26 feeding livestock.
44-27 (c) The district shall not deny the owner of a tract of
45-1 land, or his lessee, who has no well equipped to produce more than
45-2 25,000 gallons a day on the tract, either a permit to drill a well
45-3 on his land or the privilege to produce groundwater from his land,
45-4 subject to the rules of the district.
45-5 (d) A district may not restrict the production of any well
45-6 equipped to produce 25,000 gallons or less a day.
45-7 (e) Nothing in this chapter applies to wells drilled for
45-8 oil, gas, sulphur, uranium, or brine, or for core tests, or for
45-9 injection of gas, saltwater, or other fluid, or for any other
45-10 purpose, under permits issued by the Railroad Commission of Texas.
45-11 A district may not require a permit to drill a well to supply water
45-12 for drilling any of these wells permitted by the Railroad
45-13 Commission of Texas. Any well that ceases to be used for these
45-14 purposes and is then used as an ordinary water well is subject to
45-15 the rules of the district.
45-16 (f) Water wells exempted under this section shall be
45-17 equipped and maintained so as to conform to the district's rules
45-18 requiring installation of casing, pipe, and fittings to prevent the
45-19 escape of groundwater from a groundwater reservoir to any reservoir
45-20 not containing groundwater and to prevent the pollution or harmful
45-21 alteration of the character of the water in any groundwater
45-23 (g) A district shall require water wells exempted under this
45-24 section to be registered with the district. All exempt water wells
45-25 shall be equipped and maintained so as to conform to the district's
45-26 rules requiring installation of casing, pipe, and fittings to
45-27 prevent the escape of groundwater from a groundwater reservoir to
46-1 any reservoir not containing groundwater and to prevent the
46-2 pollution or harmful alteration of the character of the water in
46-3 any groundwater reservoir.
46-4 Sec. 36.118. OPEN OR UNCOVERED WELLS. (a) A district may
46-5 require the owner or lessee of land on which an open or uncovered
46-6 well is located to keep the well permanently closed or capped with
46-7 a covering capable of sustaining weight of at least 400 pounds,
46-8 except when the well is in actual use.
46-9 (b) As used in this section, "open or uncovered well" means
46-10 an artificial excavation dug or drilled for the purpose of
46-11 exploring for or producing water from the groundwater reservoir and
46-12 is not capped or covered as required by this chapter.
46-13 (c) If the owner or lessee fails or refuses to close or cap
46-14 the well in compliance with this chapter in accordance with
46-15 district rules, any person, firm, or corporation employed by the
46-16 district may go on the land and close or cap the well safely and
46-18 (d) Reasonable expenses incurred by the district in closing
46-19 or capping a well constitute a lien on the land on which the well
46-20 is located.
46-21 (e) The lien arises and attaches upon recordation in the
46-22 deed records of the county where the well is located an affidavit,
46-23 executed by any person conversant with the facts, stating the
46-25 (1) the existence of the well;
46-26 (2) the legal description of the property on which the
46-27 well is located;
47-1 (3) the approximate location of the well on the
47-3 (4) the failure or refusal of the owner or lessee,
47-4 after notification, to close the well within 10 days after the
47-6 (5) the closing of the well by the district, or by an
47-7 authorized agent, representative, or employee of the district; and
47-8 (6) the expense incurred by the district in closing
47-9 the well.
47-10 (f) Nothing in this section affects the enforcement of
47-11 Subchapter A, Chapter 756, Health and Safety Code.
47-12 Sec. 36.119. ILLEGAL DRILLING AND OPERATION OF WELL; CITIZEN
47-13 SUIT. (a) Drilling a well without a required permit or operating
47-14 a well at a higher rate of production than the rate approved for
47-15 the well is declared to be illegal, wasteful per se, and a
47-17 (b) A person who has an estate in land adjacent to the land
47-18 on which the well is located, or a part that lies within one-half
47-19 mile of the well, may sue in a court of competent jurisdiction to
47-20 restrain or enjoin the illegal drilling or operation, or both. The
47-21 suit may be brought with or without the joinder of the district.
47-22 (c) The aggrieved party may also sue for damages for
47-23 injuries suffered by reason of the illegal operation and for other
47-24 relief to which they may be entitled. In a suit for damages, the
47-25 existence or operation of a well in violation of the rules of the
47-26 district is prima facie evidence of illegal drainage.
47-27 (d) The suit may be brought in the county where the illegal
48-1 well is located or in the county where all or part of the affected
48-2 land is located.
48-3 (e) The remedies provided by this section are cumulative of
48-4 other remedies available to the individual or the district.
48-5 (f) A suit brought under this section shall be advanced for
48-6 trial and determined as expeditiously as possible. The court shall
48-7 not grant a postponement or continuance, including a first motion,
48-8 except for reasons considered imperative by the court.
48-9 Sec. 36.120. INFORMATION. On request of the executive
48-10 director or the executive administrator, the district shall make
48-11 available information that it acquires concerning the groundwater
48-12 resources within its jurisdiction. The district shall also provide
48-13 information to the commission and Texas Water Development Board
48-14 concerning its plans and activities in conserving and protecting
48-15 groundwater resources. On request of a district, the executive
48-16 director and the executive administrator shall provide information
48-17 they acquire concerning the groundwater resources within the
48-18 district's jurisdiction.
48-19 Sec. 36.121. LIMITATION ON RULEMAKING POWER OF DISTRICTS
48-20 OVER WELLS IN CERTAIN COUNTIES. Except as provided by Section
48-21 36.117, a district that is created under this chapter on or after
48-22 September 1, 1991, shall exempt from regulation under this chapter
48-23 a well and any water produced or to be produced by a well that is
48-24 located in a county that has a population of 14,000 or less if the
48-25 water is to be used solely to supply a municipality that has a
48-26 population of 115,000 or less and the rights to the water produced
48-27 from the well are owned by a political subdivision that is not a
49-1 municipality, or by a municipality that has a population of 93,000
49-2 or less, and that purchased, owned, or held rights to the water
49-3 before the date on which the district was created, regardless of
49-4 the date the well is drilled or the water is produced. The
49-5 district may not prohibit the political subdivision or municipality
49-6 from transporting produced water inside or outside the district's
49-8 (Sections 36.122-36.150 reserved for expansion
49-9 SUBCHAPTER E. DISTRICT FINANCES
49-10 Sec. 36.151. EXPENDITURES. (a) A district's money may be
49-11 disbursed only by check, draft, order, or other instrument.
49-12 (b) Disbursements shall be signed by at least two directors,
49-13 except the board may by resolution allow certain employees of the
49-14 district, or a combination of employees and directors, to sign
49-15 disbursements on behalf of the board.
49-16 (c) The board may by resolution allow disbursements to be
49-17 transferred by federal reserve wire system to accounts in the name
49-18 of the district.
49-19 Sec. 36.152. FISCAL YEAR. (a) The district shall be
49-20 operated on the basis of a fiscal year established by the board.
49-21 (b) The fiscal year may not be changed during a period in
49-22 which revenue bonds of the district are outstanding or more than
49-23 once in a 24-month period.
49-24 Sec. 36.153. ANNUAL AUDIT. (a) Annually, the board shall
49-25 have an audit made of the financial condition of the district.
49-26 (b) The annual audit and other district records must be open
49-27 to inspection during regular business hours at the principal office
50-1 of the district.
50-2 Sec. 36.154. ANNUAL BUDGET. (a) The board shall prepare
50-3 and approve an annual budget.
50-4 (b) The budget shall contain a complete financial statement,
50-5 including a statement of:
50-6 (1) the outstanding obligations of the district;
50-7 (2) the amount of cash on hand to the credit of each
50-8 fund of the district;
50-9 (3) the amount of money received by the district from
50-10 all sources during the previous year;
50-11 (4) the amount of money available to the district from
50-12 all sources during the ensuing year;
50-13 (5) the amount of the balances expected at the end of
50-14 the year in which the budget is being prepared;
50-15 (6) the estimated amount of revenues and balances
50-16 available to cover the proposal budget; and
50-17 (7) the estimated tax rate or fee revenues that will
50-18 be required.
50-19 (c) The annual budget may be amended on the board's
50-21 Sec. 36.155. DEPOSITORY. (a) The board shall name one or
50-22 more banks to serve as depository for the district funds.
50-23 (b) District funds, other than those transmitted to a bank
50-24 for payment of bonds issued by the district, shall be deposited as
50-25 received with the depository bank and shall remain on deposit.
50-26 This subsection does not limit the power of the board to place a
50-27 portion of the district's funds on time deposit or to purchase
51-1 certificates of deposit.
51-2 (c) To the extent that funds in the depository are not
51-3 insured by the Federal Deposit Insurance Corporation, they shall be
51-4 secured in the manner provided by law for the security of funds by
51-5 the Public Funds Collateral Act, Chapter 2257, Government Code.
51-6 Sec. 36.156. INVESTMENTS. (a) Funds of the district may be
51-7 invested and reinvested in accordance with the provisions of the
51-8 Public Funds Investment Act, Chapter 2256, Government Code.
51-9 (b) The board, by resolution, may provide that an authorized
51-10 representative of the district may invest and reinvest the funds of
51-11 the district and provide for money to be withdrawn from the
51-12 appropriate accounts of the district for investments on such terms
51-13 as the board considers advisable.
51-14 Sec. 36.157. REPAYMENT OF ORGANIZATIONAL EXPENSES. (a) A
51-15 district may pay all costs and expenses necessarily incurred in the
51-16 creation and organization of a district, including legal fees and
51-17 other incidental expenses, and may reimburse any person for money
51-18 advanced for these purposes.
51-19 (b) Payments may be made from money obtained from the sale
51-20 of bonds first issued by the district or out of maintenance taxes
51-21 or other revenues of the district.
51-22 Sec. 36.158. GRANTS. A district may make or accept grants,
51-23 gratuities, advances, or loans in any form to or from any source
51-24 approved by the board, including any governmental entity, and may
51-25 enter into contracts, agreements, and covenants in connection with
51-26 grants, gratuities, advances, or loans that the board considers
52-1 (Sections 36.159-36.170 reserved for expansion
52-2 SUBCHAPTER F. BONDS AND NOTES
52-3 Sec. 36.171. ISSUANCE OF BONDS AND NOTES. (a) The board
52-4 may issue and sell bonds and notes in the name of the district for
52-5 any lawful purpose of the district. A district may not issue bonds
52-6 unless the commission determines that the project to be financed by
52-7 the bonds is feasible and issues an order approving the issuance of
52-8 the bonds. This section does not apply to refunding bonds.
52-9 (b) A district may submit to the commission a written
52-10 application for investigation of feasibility. An engineer's report
52-11 describing the project, including the data, profiles, maps, plans,
52-12 and specifications prepared in connection with the report, must be
52-13 submitted with the application.
52-14 (c) The executive director shall examine the application and
52-15 the report and shall inspect the project area. The district shall,
52-16 on request, supply the executive director with additional data and
52-17 information necessary for an investigation of the application, the
52-18 engineer's report, and the project.
52-19 (d) The executive director shall prepare a written report on
52-20 the project and include suggestions, if any, for changes or
52-21 improvements in the project. The executive director shall retain a
52-22 copy of the report and send a copy of the report to both the
52-23 commission and the district.
52-24 (e) The commission shall consider the application, the
52-25 engineer's report, the executive director's report, and any other
52-26 evidence allowed by commission rule to be considered in determining
52-27 the feasibility of the project.
53-1 (f) The commission shall determine whether the project to be
53-2 financed by the bonds is feasible and issue an order either
53-3 approving or disapproving, as appropriate, the issuance of the
53-4 bonds. The commission shall retain a copy of the order and send a
53-5 copy of the order to the district.
53-6 (g) Notwithstanding any provision of this code to the
53-7 contrary, the commission may approve the issuance of bonds of a
53-8 district without the submission of plans and specifications of the
53-9 improvements to be financed with the bonds. The commission may
53-10 condition the approval on any terms or conditions considered
53-11 appropriate by the commission.
53-12 Sec. 36.172. MANNER OF REPAYMENT OF BONDS AND NOTES. The
53-13 board may provide for the payment of principal of and interest on
53-14 the bonds and notes in any one of the following manners:
53-15 (1) from the levy and collection of ad valorem taxes
53-16 on taxable property within the district;
53-17 (2) from fees;
53-18 (3) by pledging all or any part of the designated
53-19 revenues from the ownership or operation of the district's works,
53-20 improvements, and facilities and from the sale, transportation, and
53-21 distribution of water; or
53-22 (4) from any combination of these sources.
53-23 Sec. 36.173. ADDITIONAL SECURITY FOR BONDS AND NOTES. (a)
53-24 The bonds and notes may be additionally secured by a deed of trust
53-25 or mortgage lien on part or all of the physical properties of the
53-26 district and rights appurtenant to those properties, vesting in the
53-27 trustee power to sell the properties for payment of the
54-1 indebtedness, power to operate the properties, and all other powers
54-2 necessary for the further security of the bonds and notes.
54-3 (b) The trust indenture, regardless of the existence of the
54-4 deed trust or mortgage lien on the properties, may contain
54-5 provisions established by the board for the security of the bonds
54-6 and notes and the preservation of the trust estate, may make
54-7 provisions for amendment or modification, and may make provisions
54-8 for investment of funds of the district.
54-9 (c) A purchaser under a sale under the deed trust or
54-10 mortgage lien shall be absolute owner of the properties and rights
54-11 purchased and may maintain and operate them.
54-12 Sec. 36.174. FORM OF BONDS OR NOTES. (a) A district may
54-13 issue its bonds or notes in various series or issues.
54-14 (b) Bonds or notes may mature serially or otherwise not more
54-15 than 50 years from their date and shall bear interest at any rate
54-16 permitted by the constitution and laws of this state.
54-17 (c) A district's bonds, notes, and interest coupons, if any,
54-18 are investment securities under the terms of Chapter 8, Business &
54-19 Commerce Code, and may be issued registrable as to principal or as
54-20 to both principal and interest and may be made redeemable before
54-21 maturity, at the option of the district, or may contain a mandatory
54-22 redemption provision.
54-23 (d) A district's bonds and notes may be issued in the form,
54-24 denominations, and manner and under the terms, conditions, and
54-25 details, and shall be signed and executed as provided by the board
54-26 in the resolution or order authorizing their issuance.
54-27 Sec. 36.175. PROVISIONS OF BONDS AND NOTES. (a) In the
55-1 orders or resolutions authorizing the issuance of bonds or notes,
55-2 including refunding bonds, the board may provide for the flow of
55-3 funds, the establishment and maintenance of the interest and
55-4 sinking fund, the reserve fund, and other funds. The board may
55-5 make additional covenants with respect to bonds or notes, pledged
55-6 revenues, and the operation and maintenance of those works,
55-7 improvements, and facilities, of which the revenue is pledged.
55-8 (b) The orders or resolutions of the board authorizing the
55-9 issuance of bonds or notes may also prohibit the further issuance
55-10 of bonds, notes, or other obligations payable from the pledged
55-11 revenue or may reserve the right to issue additional bonds or notes
55-12 to be secured by a pledge of and payable from the revenue on a
55-13 parity with or subordinate to the lien and pledge in support of the
55-14 bonds or notes being issued.
55-15 (c) The orders or resolutions of the board issuing bonds or
55-16 notes may contain other provisions and covenants as the board may
55-18 (d) The board may adopt and have executed any other
55-19 proceeding or instruments necessary and convenient in the issuance
55-20 of bonds or notes.
55-21 Sec. 36.176. REFUNDING BONDS. (a) A district may issue
55-22 bonds to refund all or any part of its outstanding bonds or notes,
55-23 including matured but unpaid interest coupons.
55-24 (b) Refunding bonds shall mature serially or otherwise not
55-25 more than 50 years from their date and shall bear interest at any
55-26 rate or rates permitted by the constitution and laws of the state.
55-27 (c) Refunding bonds may be payable from the same source as
56-1 the bonds or notes being refunded or from other additional sources.
56-2 (d) The refunding bonds must be approved by the attorney
56-3 general as in the case of other bonds or notes and shall be
56-4 registered by the comptroller on the surrender and cancellation of
56-5 the bonds or notes being refunded.
56-6 (e) The orders or resolutions authorizing the issuance of
56-7 the refunding bonds may provide that they be sold and the proceeds
56-8 deposited in the place or places at which the bonds or notes being
56-9 refunded are payable, in which case the refunding bonds may be
56-10 issued before the cancellation of the bonds or notes being
56-11 refunded. If refunding bonds are issued before cancellation of the
56-12 other bonds or notes, an amount sufficient to pay the principal of
56-13 and interest on the bonds or notes being refunded to their maturity
56-14 dates, or to their option dates if the bonds or notes have been
56-15 duly called for payment prior to maturity according to their terms,
56-16 shall be deposited in the place or places at which the bonds or
56-17 notes being refunded are payable. The comptroller shall register
56-18 the refunding bonds without the surrender and cancellation of bonds
56-19 or notes being refunded.
56-20 (f) A refunding may be accomplished in one or in several
56-21 installment deliveries. Refunding bonds and their interest coupons
56-22 are investment securities under Chapter 8, Business & Commerce
56-24 (g) In lieu of the method set forth in Subsections (a)-(f),
56-25 a district may refund bonds, notes, or other obligations as
56-26 provided by the general laws of the state.
56-27 Sec. 36.177. BONDS AND NOTES AS INVESTMENTS. District bonds
57-1 and notes are legal and authorized investments for:
57-2 (1) banks;
57-3 (2) savings banks;
57-4 (3) trust companies;
57-5 (4) savings and loan associations;
57-6 (5) insurance companies;
57-7 (6) fiduciaries;
57-8 (7) trustees;
57-9 (8) guardians; and
57-10 (9) sinking funds of cities, counties, school
57-11 districts, and other political subdivisions of the state and other
57-12 public funds of the state and its agencies, including the permanent
57-13 school fund.
57-14 Sec. 36.178. BONDS AND NOTES AS SECURITY FOR DEPOSITS.
57-15 District bonds and notes are eligible to secure deposits of public
57-16 funds of the state and cities, counties, school districts, and
57-17 other political subdivisions of the state. The bonds or notes are
57-18 lawful and sufficient security for deposits to the extent of their
57-19 value when accompanied by all unmatured coupons.
57-20 Sec. 36.179. TAX STATUS OF BONDS AND NOTES. Since a
57-21 district governed by this chapter is a public entity performing an
57-22 essential public function, bonds and notes issued by the district,
57-23 any transaction relating to the bonds and notes, and profits made
57-24 in the sale of the bonds and notes, are free from taxation by the
57-25 state or by any city, county, special district, or other political
57-26 subdivision of the state.
57-27 Sec. 36.180. ELECTION. (a) Bonds or notes secured in whole
58-1 or in part by taxes may not be issued by the district until
58-2 authorized by a majority vote of the qualified voters of the
58-3 district at an election called for that purpose.
58-4 (b) The board may order an election, and the order calling
58-5 the election shall state the nature and the date of the election,
58-6 the hours during which the polls will be open, the location of the
58-7 polling places, the amount of bonds or notes to be authorized, and
58-8 the maximum maturity of the bonds or notes.
58-9 (c) At an election to authorize bonds or notes payable
58-10 wholly from ad valorem taxes, the ballots must be printed to
58-11 provide for voting for or against the proposition: "The issuance
58-12 of (bonds or notes) and the levy of taxes for payment of the (bonds
58-13 or notes)." At any election to authorize bonds or notes payable
58-14 from both ad valorem taxes and revenues, the ballots must be
58-15 printed to provide for voting for or against: "The issuance of
58-16 (bonds or notes) and the pledge of net revenues and the levy of ad
58-17 valorem taxes adequate to provide for the payment of the (bonds or
58-19 (d) The board shall canvass the returns and declare the
58-20 results of the election. If a majority of the votes cast at the
58-21 election favor the issuance of the bonds or notes, the bonds or
58-22 notes may be issued by the board, but if a majority of the votes
58-23 cast at the election do not favor issuance of the bonds or notes,
58-24 the bonds or notes may not be issued.
58-25 Sec. 36.181. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
58-26 COMPTROLLER. (a) Bonds and notes issued by a district must be
58-27 submitted to the attorney general for examination.
59-1 (b) If the attorney general finds that the bonds or notes
59-2 have been authorized in accordance with law, the attorney general
59-3 shall approve them, and they shall be registered by the
59-5 (c) After the approval and registration of bonds or notes,
59-6 the bonds or notes are incontestable in any court or other forum,
59-7 for any reason, and are valid and binding obligations in accordance
59-8 with their terms for all purposes.
59-9 (Sections 36.182-36.200 reserved for expansion
59-10 SUBCHAPTER G. DISTRICT REVENUES
59-11 Sec. 36.201. LEVY OF TAXES. (a) The board may annually
59-12 levy taxes to pay the bonds issued by the district that are payable
59-13 in whole or in part by taxes.
59-14 (b) The board may annually levy taxes to pay the maintenance
59-15 and operating expenses of the district at a rate not to exceed 50
59-16 cents on each $100 of assessed valuation.
59-17 (c) The board may not levy a tax to pay the maintenance and
59-18 operating expenses of the district under this section until the tax
59-19 is approved by a majority of the electors voting at an election in
59-20 the district held for that purpose. The district may:
59-21 (1) hold an election for approval of the tax at the
59-22 same time and in conjunction with an election to authorize bonds,
59-23 following the procedures applicable to a bond election; or
59-24 (2) hold a separate election for approval of the tax
59-25 in accordance with Subsection (d).
59-26 (d) An order calling a separate election for approval of a
59-27 tax under this section must be issued at least 15 days before the
60-1 date of the election, and the election notice must be published at
60-2 least twice in a newspaper of general circulation in the district.
60-3 The first publication of the notice must be at least 14 days before
60-4 the date of the election.
60-5 Sec. 36.202. BOARD AUTHORITY. (a) The board may levy taxes
60-6 for the entire year in which the district is created.
60-7 (b) If territory is added to or annexed by the district, the
60-8 board may levy taxes in the new territory for the entire year in
60-9 which the territory is added or annexed.
60-10 (c) The board shall levy taxes on all property in the
60-11 district subject to district taxation.
60-12 Sec. 36.203. TAX RATE. In setting the tax rate, the board
60-13 shall take into consideration the income of the district from
60-14 sources other than taxation. On determination of the amount of tax
60-15 required to be levied, the board shall make the levy and certify it
60-16 to the tax assessor-collector.
60-17 Sec. 36.204. TAX APPRAISAL, ASSESSMENT AND COLLECTION. (a)
60-18 The Tax Code governs the appraisal, assessment, and collection of
60-19 district taxes.
60-20 (b) The board may provide for the appointment of a tax
60-21 assessor-collector for the district or may contract for the
60-22 assessment and collection of taxes as provided by the Tax Code.
60-23 Sec. 36.205. AUTHORITY TO SET FEES. (a) A district may set
60-24 fees for administrative acts of the district, such as filing
60-25 applications. Fees set by a district may not unreasonably exceed
60-26 the cost to the district of performing the administrative function
60-27 for which the fee is charged.
61-1 (b) A district shall set and collect fees for all services
61-2 provided outside the boundaries of the district.
61-3 (c) Fees based on the amount of water to be withdrawn from a
61-4 well shall not exceed:
61-5 (1) one dollar per acre foot for water used for the
61-6 purpose of irrigating agricultural crops; or
61-7 (2) 17 cents per thousand gallons for water used for
61-8 any other purpose.
61-9 (d) A district affected by Subsection (c)(2) that also may
61-10 assess a water use fee against a specific municipality shall assess
61-11 an amount not to exceed 60 percent of the total funding of the
61-12 district received from water use fees assessed against that
61-13 municipality and other nonexempt users in the district. This
61-14 subsection shall take precedence over all prior enactments.
61-15 (e) Subsection (c) does not apply to the following
61-17 (1) the Edwards Aquifer Authority;
61-18 (2) the Fort Bend Subsidence District; or
61-19 (3) the Harris-Galveston Coastal Subsidence District.
61-20 (Sections 36.206-36.250 reserved for expansion
61-21 SUBCHAPTER H. JUDICIAL REVIEW
61-22 Sec. 36.251. SUIT AGAINST DISTRICT. A person, firm,
61-23 corporation, or association of persons affected by and dissatisfied
61-24 with any provision or with any rule or order made by a district is
61-25 entitled to file a suit against the district or its directors to
61-26 challenge the validity of the law, rule, or order. The suit shall
61-27 be filed in a court of competent jurisdiction in any county in
62-1 which the district or any part of the district is located. The
62-2 suit may only be filed after all administrative appeals to the
62-3 district are final.
62-4 Sec. 36.252. SUIT TO BE EXPEDITED. A suit brought under
62-5 this subchapter shall be advanced for trial and determined as
62-6 expeditiously as possible. No postponement or continuance shall be
62-7 granted except for reasons considered imperative by the court.
62-8 Sec. 36.253. TRIAL OF SUIT. The burden of proof is on the
62-9 petitioner, and the challenged law, rule, order, or act shall be
62-10 deemed prima facie valid. The review on appeal is governed by the
62-11 substantial evidence rule as defined by Section 2001.174,
62-12 Government Code.
62-13 Sec. 36.254. SUBCHAPTER CUMULATIVE. The provisions of this
62-14 subchapter do not affect other legal or equitable remedies that may
62-15 be available.
62-16 (Sections 36.255-36.300 reserved for expansion
62-17 SUBCHAPTER I. DISSOLUTION OF DISTRICT
62-18 Sec. 36.301. DISSOLUTION. (a) After notice and hearing,
62-19 the commission may dissolve a district that:
62-20 (1) has been inactive for a period of three
62-21 consecutive years; and
62-22 (2) has no outstanding bonded indebtedness.
62-23 (b) A district composed of territory entirely within one
62-24 county may be dissolved even if it has outstanding indebtedness
62-25 that matures after the year in which the district is dissolved,
62-26 whereupon the commissioners court shall levy and collect taxes on
62-27 all taxable property in the district in an amount sufficient to pay
63-1 the principal of and interest on the indebtedness when due. The
63-2 taxes shall be levied and collected in the same manner as county
63-4 (c) A district is considered active if:
63-5 (1) the district has a board as required by Subchapter
63-7 (2) the board holds regularly scheduled meetings and
63-8 has on file minutes of its meetings;
63-9 (3) the district has developed and filed with the
63-10 commission a management plan for the district;
63-11 (4) the district has copies of drillers' logs on file;
63-12 (5) the district has on file well permits issued by
63-13 the district; and
63-14 (6) the district has on file annual district audits.
63-15 Sec. 36.302. NOTICE OF HEARING. (a) The commission shall
63-16 give notice of the dissolution hearing which briefly describes the
63-17 reasons for the proceeding.
63-18 (b) The notice shall be published once each week for two
63-19 consecutive weeks before the day of hearing in some newspaper
63-20 having general circulation in the county or counties in which the
63-21 district is located. The first publication shall be 30 days before
63-22 the day of the hearing.
63-23 (c) The commission shall give notice of the hearing by first
63-24 class mail addressed to the directors of the district according to
63-25 the last record on file with the executive director.
63-26 Sec. 36.303. INVESTIGATION. The executive director shall
63-27 investigate the facts and circumstances of the district to be
64-1 dissolved and the result of the investigation shall be included in
64-2 a written report.
64-3 Sec. 36.304. ORDER OF DISSOLUTION. The commission may enter
64-4 an order dissolving the district at the conclusion of the hearing
64-5 if it finds that the district has performed none of the functions
64-6 for which it was created for a period of three consecutive years
64-7 before the day of the proceeding and that the district has no
64-8 outstanding bonded indebtedness.
64-9 Sec. 36.305. CERTIFIED COPY OF ORDER. The commission shall
64-10 file a certified copy of the order of dissolution of the district
64-11 in the deed records of the county or counties in which the district
64-12 is located. If the district was created by a special Act of the
64-13 legislature, the commission shall file a certified copy of the
64-14 order of dissolution with the secretary of state.
64-15 Sec. 36.306. APPEALS. (a) Appeals from a commission order
64-16 dissolving a district shall be filed and heard in the district
64-17 court of any of the counties in which the land is located.
64-18 (b) The trial on appeal shall be de novo and the substantial
64-19 evidence rule shall not apply.
64-20 Sec. 36.307. ASSETS ESCHEAT TO STATE. Upon the dissolution
64-21 of a district by the commission, all assets of the district shall
64-22 escheat to the State of Texas. The assets shall be administered by
64-23 the state treasurer and shall be disposed of in the manner provided
64-24 by Chapter 72, Property Code.
64-25 (Sections 36.308-36.320 reserved for expansion
64-26 SUBCHAPTER J. ADDING TERRITORY TO DISTRICT
64-27 Sec. 36.321. ADDING LAND BY PETITION OF LANDOWNER. The
65-1 owner of land contiguous to a district may file with the board a
65-2 notarized petition requesting that the owner's land be included in
65-3 the district. The petition must describe the land by legal
65-4 description or by metes and bounds or by lot and block number if
65-5 there is a recorded plat of the area to be included in the
65-7 Sec. 36.322. ASSUMPTION OF BONDS. If the district has
65-8 bonds, notes, or other obligations outstanding or bonds payable in
65-9 whole or in part from taxation that have been voted but are
65-10 unissued, the petitioner shall assume its share of the outstanding
65-11 bonds, notes, or other obligations and any voted but unissued tax
65-12 bonds of the district, and the property shall be assessed an ad
65-13 valorem tax at the same rate as that set for the existing district
65-14 to pay for outstanding bonds and for the maintenance and operation
65-15 of the district.
65-16 Sec. 36.323. HEARING AND DETERMINATION OF PETITION. (a)
65-17 The board shall hear and consider the petition and may add to the
65-18 district the land described in the petition if it is considered to
65-19 be to the advantage of the petitioner and to the existing district.
65-20 (b) If the district has bonds payable in whole or in part
65-21 from taxation that are voted but unissued at the time of the
65-22 annexation, the board may issue the voted but unissued bonds even
65-23 though the boundaries of the district have been altered since the
65-24 authorization of the bonds.
65-25 Sec. 36.324. RECORDING PETITION. A petition that is granted
65-26 which adds land to the district shall be recorded in the office of
65-27 the county clerk of the county or counties in which the land is
66-1 located and the county or counties in which the existing district's
66-2 principal office is located.
66-3 Sec. 36.325. ADDING CERTAIN TERRITORY BY PETITION. (a)
66-4 Landowners of a defined area of territory not already in a district
66-5 may file with any district a petition requesting inclusion in that
66-7 (b) The petition must be signed by:
66-8 (1) a majority of the landowners in the territory;
66-9 (2) at least 50 landowners if the number of landowners
66-10 is more than 50; or
66-11 (3) the commissioners court of the county in which the
66-12 area is located if the area is identified as a critical area or
66-13 includes the entire county. The petition must describe the land by
66-14 legal description or by metes and bounds or by lot and block number
66-15 if there is a recorded plat of the area to be included in the
66-17 Sec. 36.326. HEARING ON PETITION. The board by order shall
66-18 set the time and place of separate hearings on the petition to
66-19 include the territory in the district. At least one hearing shall
66-20 be held in the existing district and one hearing shall be held in
66-21 the territory to be added.
66-22 Sec. 36.327. RESOLUTION TO ADD TERRITORY. If the board
66-23 finds after the hearing on the petition that the addition of the
66-24 land would benefit the district and the territory to be added, it
66-25 may add the territory to the district by resolution. The board
66-26 does not have to include all the territory described in the
66-27 petition if it finds that a modification or change is necessary or
67-2 Sec. 36.328. ELECTION TO RATIFY ANNEXATION OF LAND. (a)
67-3 Annexation of the territory is not final until ratified by a
67-4 majority vote of the voters in the territory to be added. An
67-5 election in the existing district accepting the addition of land is
67-6 not required.
67-7 (b) The ballots for the election shall be printed to provide
67-8 for voting for or against the proposition: "The inclusion of
67-9 (briefly describe additional area) in the __________ District." If
67-10 the district levies a property tax for payment of its maintenance
67-11 and operating expenses, the proposition shall include the following
67-12 language: "and the levy of a tax on property at a rate not to
67-13 exceed _____ cents on each $100 of assessed valuation for payment
67-14 of maintenance and operating expenses of the district."
67-15 (c) The amount of the tax included in the proposition shall
67-16 be the maximum amount that the district is authorized to levy. If
67-17 the district has outstanding or authorized bonded indebtedness, the
67-18 proposition shall include language providing for the assumption by
67-19 the additional area of a proportional share of the bonded
67-20 indebtedness of the district.
67-21 Sec. 36.329. NOTICE AND PROCEDURE OF ELECTION. The notice
67-22 of the election, the manner and the time of giving the notice, the
67-23 manner of holding the election, and qualifications of the voters
67-24 are governed by the Election Code.
67-25 Sec. 36.330. LIABILITY OF ADDED TERRITORY. The added
67-26 territory shall bear its pro rata share of indebtedness or taxes
67-27 that may be owed, contracted, or authorized by the district to
68-1 which it is added.
68-2 Sec. 36.331. ANNEXATION OF NONCONTIGUOUS TERRITORY. Land
68-3 not contiguous to the existing boundaries of a district may not be
68-4 added to or annexed to a district unless the land is located either
68-5 within the same management area, critical area, or a groundwater
68-6 subdivision designated by the commission or its predecessors.
68-7 (Sections 36.332-36.350 reserved for expansion
68-8 SUBCHAPTER K. CONSOLIDATION OF DISTRICTS
68-9 Sec. 36.351. CONSOLIDATION OF DISTRICTS. (a) Two or more
68-10 districts may consolidate into one district.
68-11 (b) Adjacent districts may consolidate portions of either
68-12 district if one district relinquishes land within that district to
68-13 the jurisdiction of the other district.
68-14 (c) A consolidation under this subchapter occurs if the
68-15 board of each involved district adopts a resolution containing the
68-16 terms and conditions of the consolidation.
68-17 Sec. 36.352. TERMS AND CONDITIONS OF CONSOLIDATION. (a)
68-18 The terms and conditions for consolidation shall include:
68-19 (1) adoption of a name for the district;
68-20 (2) the number and apportionment of directors to serve
68-21 on the board;
68-22 (3) the effective date of the consolidation;
68-23 (4) an agreement on finances for the consolidated
68-24 district, including disposition of funds, property, and other
68-25 assets of each district;
68-26 (5) transfer of all permits issued in the area that is
68-27 the subject of the consolidation to the consolidated district; and
69-1 (6) an agreement on governing the districts during the
69-2 transition period, including selection of officers.
69-3 (b) The terms and conditions for consolidation may include:
69-4 (1) assumption by each district of the other
69-5 district's bonds, notes, voted but unissued bonds, or other
69-7 (2) an agreement to levy taxes to pay for bonds;
69-8 (3) any other terms of conditions agreed upon by the
69-9 board of each district.
69-10 Sec. 36.353. NOTICE AND HEARING ON CONSOLIDATION. (a) Each
69-11 board shall publish notice and hold a public hearing within that
69-12 district on the terms and conditions for consolidation of the
69-14 (b) After the hearing, the board may, by resolution, approve
69-15 the terms and conditions for consolidation and enter an order
69-16 consolidating the districts.
69-17 Sec. 36.354. ELECTIONS TO APPROVE CONSOLIDATION. (a) An
69-18 election to ratify the consolidation is required unless the
69-19 districts to be consolidated meet the following requirements:
69-20 (1) the districts have not authorized or issued bonds
69-21 and do not levy or assess taxes; or
69-22 (2) the consolidation would not result in any
69-23 additional taxing or bonding authority for any of the districts,
69-24 and would not require any district to contribute to the debt
69-25 payments of any other district.
69-26 (b) The board shall order an election in each district to be
69-27 consolidated only after the board of each district has agreed on
70-1 the terms and conditions of consolidation. The directors of each
70-2 district shall order the election to be held on the same day in
70-3 each district. The election shall be held and notice given in the
70-4 manner provided by the Election Code.
70-5 (c) The ballots for the election shall be printed to provide
70-6 for voting for or against the proposition: "The consolidation of
70-7 (names of the districts to be consolidated) in the __________
70-8 District." If the district levies a property tax for payment of
70-9 its bonded indebtedness, the proposition shall include the
70-10 following language: "and the levy of a tax on property at a rate
70-11 not to exceed _____ cents on each $100 of assessed valuation for
70-12 payment of bonds." If the district levies a property tax for
70-13 payment of its maintenance and operating expenses, the proposition
70-14 shall include the following language: "and the levy of a tax on
70-15 property at a rate not to exceed _____ cents on each $100 of
70-16 assessed valuation for payment of maintenance and operating
70-17 expenses of the district."
70-18 (d) A district may be consolidated only if a majority of the
70-19 electors in each district vote in favor of the consolidation. If
70-20 more than two districts are consolidating, failure of any one
70-21 district to ratify the consolidation shall not prevent the
70-22 consolidation of the other districts.
70-23 Sec. 36.355. GOVERNING CONSOLIDATED DISTRICTS. (a) After
70-24 two or more districts are consolidated, they become one district
70-25 and are governed as one district.
70-26 (b) During the transition period, the officers of each
70-27 district shall continue to act jointly as officers of the original
71-1 districts to settle the affairs of their respective districts.
71-2 (c) If the consolidated district elects directors, directors
71-3 for the consolidated district shall be elected in the same manner
71-4 and for the same term as directors elected at a confirmation
71-5 election. The directors' election shall be set for the next
71-6 regular election.
71-7 Sec. 36.356. DEBTS OF ORIGINAL DISTRICTS. (a) After two or
71-8 more districts are consolidated, the consolidated district shall
71-9 protect the debts of the original districts and shall assure that
71-10 the debts are not impaired. If the consolidated district has
71-11 taxing authority, the debts may be paid by taxes levied on the land
71-12 in the original districts as if they had not consolidated or from
71-13 contributions from the consolidated district on terms stated in the
71-14 consolidation agreement.
71-15 (b) If the consolidated district has taxing authority and
71-16 assumes the bonds, notes, and other obligations of the original
71-17 districts, taxes may be levied uniformly on all taxable property
71-18 within the consolidated district to pay the debts.
71-19 Sec. 36.357. ASSESSMENT AND COLLECTION OF TAXES. If the
71-20 consolidated district has taxing authority, the district shall
71-21 assess and collect taxes on property on all property in the
71-22 district for maintenance and operation of the district.
71-23 Sec. 36.358. VOTED BUT UNISSUED BONDS. If either district
71-24 has voted but unissued bonds payable in whole or in part from
71-25 taxation assumed by the consolidated district, the consolidated
71-26 district may issue the voted but unissued bonds in the name of the
71-27 consolidated district and levy a uniform tax on all taxable
72-1 property in the consolidated district to pay for the bonds.
72-2 Sec. 36.359. FILING OF ORDER WITH COUNTY CLERK AND EXECUTIVE
72-3 DIRECTOR. A consolidation order issued by the board shall be kept
72-4 in the records of the consolidated district, recorded in the office
72-5 of the county clerk in each of the counties in the consolidated
72-6 district, and filed with the executive director.
72-7 SECTION 3. Section 151.003(b), Water Code, is amended to
72-8 read as follows:
72-9 (b) Except as provided in this subsection, an adjoining
72-10 county may be added to the district on application of the
72-11 commissioners court of the adjoining county and by complying with
72-12 the procedures provided in Subchapter K, Chapter 36 < Sections
72-13 55.730-55.744 of this code, to the extent that those provisions are
72-14 applicable>. Any county added to the district under this
72-15 subsection is subject to the jurisdiction of the board and this
72-16 chapter, and two members shall be added to the board. One shall be
72-17 chosen by the commissioners court of the county added to the
72-18 district and one shall be chosen by the mayor of the city that has
72-19 the largest population in the county that is added. The two new
72-20 members shall draw lots to establish staggered terms of office.
72-21 SECTION 4. Section 151.005(a), Water Code, is amended to
72-22 read as follows:
72-23 (a) The district has all of the rights, powers, privileges,
72-24 authority, functions, and duties provided by the general law of
72-25 this state, including Chapter 36 < Chapters 50 and 52 of this code>,
72-26 applicable to groundwater < underground water> conservation
72-27 districts created under Article XVI, Section 59, of the Texas
73-2 SECTION 5. Section 151.005(c), Water Code, is amended to
73-3 read as follows:
73-4 (c) Sections 36.104, 36.114, 36.117, 36.201, 36.202, 36.203,
73-5 and 36.204 < 52.1511, 52.156, 52.167, 52.168, 52.170, and 52.173 of
73-6 this code> and Subchapter I, Chapter 36, < Subchapters B, C, H, I,
73-7 J, and K of Chapter 52 of this code> do not apply to the district.
73-8 SECTION 6. Chapter 52, Water Code, is repealed.
73-9 SECTION 7. An election conducted by a district formerly
73-10 governed by Chapter 52, Water Code, on August 14, 1993, at which
73-11 voters in the district approved the levy of taxes for the
73-12 district's maintenance and operating expenses, is validated in all
73-13 respects as of the date on which the election occurred. A
73-14 district's levy and collection of taxes, as approved by that
73-15 election, and a district's subsequent acts and proceedings may not
73-16 be held invalid on the grounds that the district was not authorized
73-17 to levy the taxes or conduct the election.
73-18 SECTION 8. This Act takes effect September 1, 1995, and
73-19 applies to all actions by a district or board taken after that
73-20 date. Any provision of this Act relating to suits to which a
73-21 district governed by this Act is a party shall only apply to suits
73-22 filed on or after the effective date of this Act.
73-23 SECTION 9. The importance of this legislation and the
73-24 crowded condition of the calendars in both houses create an
73-25 emergency and an imperative public necessity that the
73-26 constitutional rule requiring bills to be read on three several
73-27 days in each house be suspended, and this rule is hereby suspended.