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          A BILL TO BE ENTITLED
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          AN ACT
         | 
      
      
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        relating to the creation of the Val Verde County Groundwater  | 
      
      
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        Conservation District; providing authority to issue bonds;  | 
      
      
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        providing authority to impose fees, surcharges, and taxes. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
        | 
           
			 | 
               SECTION 1.  Subtitle H, Title 6, Special District Local Laws  | 
      
      
        | 
           
			 | 
        Code, is amended by adding Chapter 8872 to read as follows: | 
      
      
        | 
           
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        CHAPTER 8872.  VAL VERDE COUNTY GROUNDWATER CONSERVATION DISTRICT | 
      
      
        | 
           
			 | 
        SUBCHAPTER A.  GENERAL PROVISIONS | 
      
      
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               Sec. 8872.001.  DEFINITIONS.  (a)  Except as provided by  | 
      
      
        | 
           
			 | 
        Subsection (b), the definitions in Section 36.001, Water Code,  | 
      
      
        | 
           
			 | 
        apply to this chapter. | 
      
      
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               (b)  In this chapter: | 
      
      
        | 
           
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                     (1)  "Aquifer" means that part of the Edwards-Trinity  | 
      
      
        | 
           
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        (Plateau) Aquifer located in Val Verde County. | 
      
      
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                     (2)  "Board" means the board of directors of the  | 
      
      
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        district. | 
      
      
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                     (3)  "City" means the City of Del Rio. | 
      
      
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                     (4)  "Commissioners court" means the Val Verde County  | 
      
      
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        Commissioners Court. | 
      
      
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                     (5)  "Director" means a member of the board. | 
      
      
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                     (6)  "District" means the Val Verde County Groundwater  | 
      
      
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        Conservation District. | 
      
      
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                     (7)  "Domestic use" means the use of groundwater in the  | 
      
      
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        district by a member of a well owner's household or by household  | 
      
      
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        employees, tenants, licensees, or guests for the following  | 
      
      
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        purposes: | 
      
      
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                           (A)  drinking, washing, or culinary activities; | 
      
      
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                           (B)  irrigation of: | 
      
      
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                                 (i)  lawns; | 
      
      
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                                 (ii)  family gardens; or | 
      
      
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                                 (iii)  orchards, if the produce of the  | 
      
      
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        orchard is used only for household consumption; | 
      
      
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                           (C)  filling or maintaining swimming pools,  | 
      
      
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        decorative ponds, or fountains located on the well owner's  | 
      
      
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        property; and | 
      
      
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                           (D)  drinking water for domestic animals not  | 
      
      
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        raised, maintained, or sold for commercial purposes. | 
      
      
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                     (8)  "Existing well" means a well that is completed to  | 
      
      
        | 
           
			 | 
        produce groundwater in Val Verde County on or before January 1,  | 
      
      
        | 
           
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        2015.  The term includes a well that is reworked or repaired after  | 
      
      
        | 
           
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        January 1, 2015, to restore the well's historic production  | 
      
      
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        capacity, provided that the reworking or repair does not enlarge  | 
      
      
        | 
           
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        the diameter of the well bore as the well bore existed on January 1,  | 
      
      
        | 
           
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        2015. | 
      
      
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                     (9)  "Historic use" means the production and beneficial  | 
      
      
        | 
           
			 | 
        use of groundwater from an existing well in any calendar year before  | 
      
      
        | 
           
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        January 1, 2015. | 
      
      
        | 
           
			 | 
                     (10)  "Political subdivision" means a governmental  | 
      
      
        | 
           
			 | 
        entity of this state, including a county, municipality, state  | 
      
      
        | 
           
			 | 
        agency, or district or authority created under Section 52, Article  | 
      
      
        | 
           
			 | 
        III, or Section 59, Article XVI, Texas Constitution.  The term also  | 
      
      
        | 
           
			 | 
        includes a nonprofit water supply corporation created under Chapter  | 
      
      
        | 
           
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        67, Water Code. | 
      
      
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                     (11)  "Retail public utility" has the meaning assigned  | 
      
      
        | 
           
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        by Section 13.002, Water Code.  | 
      
      
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                     (12)  "Rural area"  means an area that is located: | 
      
      
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                           (A)  inside the boundaries of the district; and | 
      
      
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                           (B)  outside the corporate boundaries and  | 
      
      
        | 
           
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        extraterritorial jurisdiction of a municipality in the district. | 
      
      
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               Sec. 8872.002.  NATURE OF DISTRICT; PURPOSE.  (a)  The  | 
      
      
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        district is a groundwater conservation district in Val Verde County  | 
      
      
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        created under and essential to accomplish the purposes of Section  | 
      
      
        | 
           
			 | 
        59, Article XVI, Texas Constitution, including: | 
      
      
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                     (1)  the permitting, recharge, conservation,  | 
      
      
        | 
           
			 | 
        protection, and prevention of the waste of groundwater in Val Verde  | 
      
      
        | 
           
			 | 
        County; | 
      
      
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                     (2)  the control of subsidence caused by the  | 
      
      
        | 
           
			 | 
        unreasonable withdrawal of groundwater; | 
      
      
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                     (3)  the regulation of transporting groundwater  | 
      
      
        | 
           
			 | 
        outside the boundaries of the district; | 
      
      
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                     (4)  the regulation of groundwater production and the  | 
      
      
        | 
           
			 | 
        implementation of drought management and conservation plans for the  | 
      
      
        | 
           
			 | 
        reduction of drawdown when conditions warrant action to protect  | 
      
      
        | 
           
			 | 
        spring flow and base flow; and | 
      
      
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                     (5)  the management of the issuance of permits by  | 
      
      
        | 
           
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        requiring studies and groundwater availability model analyses of  | 
      
      
        | 
           
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        permit applications that include the use of conservation triggers  | 
      
      
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        to mitigate the impact on spring flow, base flow, and drawdown. | 
      
      
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               (b)  The district is created to serve a public use and  | 
      
      
        | 
           
			 | 
        benefit. | 
      
      
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               (c)  All of the land and other property included within the  | 
      
      
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			 | 
        boundaries of the district will benefit from the works and projects  | 
      
      
        | 
           
			 | 
        that are to be accomplished by the district under powers conferred  | 
      
      
        | 
           
			 | 
        by Section 59, Article XVI, Texas Constitution, this chapter, and  | 
      
      
        | 
           
			 | 
        Chapter 36, Water Code. | 
      
      
        | 
           
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               Sec. 8872.003.  CONFIRMATION ELECTION REQUIRED.  If the  | 
      
      
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			 | 
        creation of the district is not confirmed at a confirmation  | 
      
      
        | 
           
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        election held under Section 8872.023 before September 1, 2020: | 
      
      
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                     (1)  the district is dissolved September 1, 2020,  | 
      
      
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        except that: | 
      
      
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                           (A)  any debts incurred shall be paid; | 
      
      
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                           (B)  any assets that remain after the payment of  | 
      
      
        | 
           
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        debts shall be transferred to Val Verde County and the city in  | 
      
      
        | 
           
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        proportion to the amount each entity has contributed to the costs of  | 
      
      
        | 
           
			 | 
        the confirmation election and district operations; and | 
      
      
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                           (C)  the organization of the district shall be  | 
      
      
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			 | 
        maintained until all debts are paid and remaining assets are  | 
      
      
        | 
           
			 | 
        transferred; and | 
      
      
        | 
           
			 | 
                     (2)  this chapter expires September 1, 2022. | 
      
      
        | 
           
			 | 
               Sec. 8872.004.  INITIAL DISTRICT TERRITORY.  The boundaries  | 
      
      
        | 
           
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        of the district are coextensive with the boundaries of Val Verde  | 
      
      
        | 
           
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        County. | 
      
      
        | 
           
			 | 
        SUBCHAPTER A-1.  TEMPORARY PROVISIONS | 
      
      
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               Sec. 8872.021.  APPOINTMENT OF TEMPORARY DIRECTORS;  | 
      
      
        | 
           
			 | 
        VACANCIES; TERMS.  (a)  As soon as practicable after the effective  | 
      
      
        | 
           
			 | 
        date of the Act enacting this chapter, seven temporary directors  | 
      
      
        | 
           
			 | 
        shall be appointed as follows: | 
      
      
        | 
           
			 | 
                     (1)  three temporary directors shall be appointed by  | 
      
      
        | 
           
			 | 
        the commissioners court; | 
      
      
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                     (2)  three temporary directors shall be appointed by  | 
      
      
        | 
           
			 | 
        the city council of the city; and | 
      
      
        | 
           
			 | 
                     (3)  one temporary director shall be appointed jointly  | 
      
      
        | 
           
			 | 
        by the county judge of Val Verde County and the mayor of the city. | 
      
      
        | 
           
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               (b)  An individual appointed to serve as a temporary director  | 
      
      
        | 
           
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        must be at least 18 years of age and be a registered voter of Val  | 
      
      
        | 
           
			 | 
        Verde County. | 
      
      
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               (c)  If there is a vacancy on the temporary board of  | 
      
      
        | 
           
			 | 
        directors of the district, the remaining temporary directors shall  | 
      
      
        | 
           
			 | 
        appoint a person to fill the vacancy in a manner that meets the  | 
      
      
        | 
           
			 | 
        representational requirements of this section. | 
      
      
        | 
           
			 | 
               (d)  Temporary directors serve until the earlier of: | 
      
      
        | 
           
			 | 
                     (1)  the date the temporary directors become initial  | 
      
      
        | 
           
			 | 
        directors under Section 8872.024; or | 
      
      
        | 
           
			 | 
                     (2)  the date this chapter expires under Section  | 
      
      
        | 
           
			 | 
        8872.003. | 
      
      
        | 
           
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               (e)  Before the confirmation election under Section  | 
      
      
        | 
           
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        8872.023, the presiding officer of the district or the presiding  | 
      
      
        | 
           
			 | 
        officer's designee may represent the district in the joint planning  | 
      
      
        | 
           
			 | 
        process under Section 36.108, Water Code, and shall be considered a  | 
      
      
        | 
           
			 | 
        voting district representative. | 
      
      
        | 
           
			 | 
               Sec. 8872.022.  ORGANIZATIONAL MEETING OF TEMPORARY  | 
      
      
        | 
           
			 | 
        DIRECTORS.  (a)  As soon as practicable after all the temporary  | 
      
      
        | 
           
			 | 
        directors have qualified under Section 36.055, Water Code, a  | 
      
      
        | 
           
			 | 
        majority of the temporary directors shall convene the  | 
      
      
        | 
           
			 | 
        organizational meeting of the district at a location within the  | 
      
      
        | 
           
			 | 
        district agreeable to a majority of the directors. If an agreement  | 
      
      
        | 
           
			 | 
        on location cannot be reached, the organizational meeting shall be  | 
      
      
        | 
           
			 | 
        at the Val Verde County Courthouse. | 
      
      
        | 
           
			 | 
               (b)  At the organizational meeting described by Subsection  | 
      
      
        | 
           
			 | 
        (a), the temporary directors shall: | 
      
      
        | 
           
			 | 
                     (1)  elect a president as presiding officer, vice  | 
      
      
        | 
           
			 | 
        president, secretary, and treasurer; | 
      
      
        | 
           
			 | 
                     (2)  schedule the confirmation election described by  | 
      
      
        | 
           
			 | 
        Section 8872.023; and | 
      
      
        | 
           
			 | 
                     (3)  notify the applicable groundwater management area  | 
      
      
        | 
           
			 | 
        of the district's creation, subject to confirmation under Section  | 
      
      
        | 
           
			 | 
        8872.023. | 
      
      
        | 
           
			 | 
               Sec. 8872.023.  CONFIRMATION ELECTION.  (a)  The temporary  | 
      
      
        | 
           
			 | 
        board shall order an election to be held on the first available  | 
      
      
        | 
           
			 | 
        uniform election date in November following January 1, 2016, to  | 
      
      
        | 
           
			 | 
        confirm the creation of the district and authorize the collection  | 
      
      
        | 
           
			 | 
        of taxes. | 
      
      
        | 
           
			 | 
               (b)  The ballot for the election must be printed to permit  | 
      
      
        | 
           
			 | 
        voting for or against the following proposition:  "The creation of  | 
      
      
        | 
           
			 | 
        the Val Verde County Groundwater Conservation District and the  | 
      
      
        | 
           
			 | 
        imposition of an ad valorem tax in the district at a rate not to  | 
      
      
        | 
           
			 | 
        exceed five cents for each $100 of assessed valuation." | 
      
      
        | 
           
			 | 
               (c)  Except as provided by this section, a confirmation  | 
      
      
        | 
           
			 | 
        election must be conducted as provided by Sections 36.017(b)-(i),  | 
      
      
        | 
           
			 | 
        Water Code, and the Election Code. | 
      
      
        | 
           
			 | 
               (d)  If the district's creation is not confirmed at an  | 
      
      
        | 
           
			 | 
        election held under this section, the temporary directors may order  | 
      
      
        | 
           
			 | 
        one or more subsequent elections to be held to confirm the creation  | 
      
      
        | 
           
			 | 
        of the district not earlier than the first anniversary of the  | 
      
      
        | 
           
			 | 
        preceding confirmation election.  If the district's creation is not  | 
      
      
        | 
           
			 | 
        confirmed at an election held under this section before September  | 
      
      
        | 
           
			 | 
        1, 2020, the district is dissolved in accordance with Section  | 
      
      
        | 
           
			 | 
        8872.003. | 
      
      
        | 
           
			 | 
               (e)  The costs of an election held under this chapter shall  | 
      
      
        | 
           
			 | 
        be paid by Val Verde County and the city. | 
      
      
        | 
           
			 | 
               Sec. 8872.024.  INITIAL DIRECTORS.  (a)  If the creation of  | 
      
      
        | 
           
			 | 
        the district is confirmed at an election held under Section  | 
      
      
        | 
           
			 | 
        8872.023, the temporary directors become the initial directors and  | 
      
      
        | 
           
			 | 
        serve until permanent directors are elected or appointed under  | 
      
      
        | 
           
			 | 
        Section 8872.052. | 
      
      
        | 
           
			 | 
               (b)  The initial directors of the board shall draw lots to  | 
      
      
        | 
           
			 | 
        determine which three directors shall serve a term expiring  | 
      
      
        | 
           
			 | 
        December 1 of the year two years after the date of the election in  | 
      
      
        | 
           
			 | 
        which the district is confirmed and which four directors shall  | 
      
      
        | 
           
			 | 
        serve a term expiring December 1 of the year four years after the  | 
      
      
        | 
           
			 | 
        date of the election in which the district is confirmed. | 
      
      
        | 
           
			 | 
               (c)  The initial directors shall provide notice to the  | 
      
      
        | 
           
			 | 
        members of the groundwater management area in which the district is  | 
      
      
        | 
           
			 | 
        located that the creation of the district is confirmed. | 
      
      
        | 
           
			 | 
               Sec. 8872.025.  EXPIRATION OF SUBCHAPTER.  This subchapter  | 
      
      
        | 
           
			 | 
        expires September 1, 2021. | 
      
      
        | 
           
			 | 
        SUBCHAPTER B.  BOARD OF DIRECTORS | 
      
      
        | 
           
			 | 
               Sec. 8872.051.  COMPOSITION OF BOARD.  The district is  | 
      
      
        | 
           
			 | 
        governed by a board of seven directors. | 
      
      
        | 
           
			 | 
               Sec. 8872.052.  TERMS; APPOINTMENT AND ELECTION OF  | 
      
      
        | 
           
			 | 
        DIRECTORS; QUALIFICATIONS.  (a)  Directors serve staggered  | 
      
      
        | 
           
			 | 
        four-year terms, with three or four terms expiring December 1 every  | 
      
      
        | 
           
			 | 
        other year.  Directors are elected or appointed as follows: | 
      
      
        | 
           
			 | 
                     (1)  one director is elected from each of the four  | 
      
      
        | 
           
			 | 
        county commissioners precincts by the voters of the applicable  | 
      
      
        | 
           
			 | 
        precinct to be designated as the director whose place number  | 
      
      
        | 
           
			 | 
        matches the applicable precinct number; | 
      
      
        | 
           
			 | 
                     (2)  one director is elected by the voters of the  | 
      
      
        | 
           
			 | 
        district at-large to be designated as the director for place number  | 
      
      
        | 
           
			 | 
        five; and | 
      
      
        | 
           
			 | 
                     (3)  two directors who each own at least 1,000 acres of  | 
      
      
        | 
           
			 | 
        land in the rural area are appointed by the county judge of Val  | 
      
      
        | 
           
			 | 
        Verde County and the mayor of the city, respectively, to be  | 
      
      
        | 
           
			 | 
        designated as the directors for place numbers six and seven. | 
      
      
        | 
           
			 | 
               (b)  To be elected or appointed under this section, a person  | 
      
      
        | 
           
			 | 
        must be at least 18 years of age and: | 
      
      
        | 
           
			 | 
                     (1)  a registered voter of Val Verde County; and | 
      
      
        | 
           
			 | 
                     (2)  if elected from a commissioners court precinct, a  | 
      
      
        | 
           
			 | 
        resident of that precinct. | 
      
      
        | 
           
			 | 
               (c)  An election to elect directors must be held on the  | 
      
      
        | 
           
			 | 
        uniform election date in November of even-numbered years. | 
      
      
        | 
           
			 | 
               (d)  A director may serve consecutive terms. | 
      
      
        | 
           
			 | 
               Sec. 8872.053.  VACANCIES.  (a)  If there is a vacancy on the  | 
      
      
        | 
           
			 | 
        board, a majority of the board shall appoint a person to fill the  | 
      
      
        | 
           
			 | 
        vacancy for the remainder of the term of the vacant director place.   | 
      
      
        | 
           
			 | 
        The person appointed to fill the vacancy must meet the  | 
      
      
        | 
           
			 | 
        qualifications under Section 8872.052 for the vacant place. | 
      
      
        | 
           
			 | 
               (b)  If the board has not filled a vacancy before the 90th day  | 
      
      
        | 
           
			 | 
        after the date of the vacancy, the county judge of Val Verde County  | 
      
      
        | 
           
			 | 
        and the mayor of the city shall jointly appoint a person that meets  | 
      
      
        | 
           
			 | 
        the qualifications under Section 8872.052 for the vacant place to  | 
      
      
        | 
           
			 | 
        serve as director for the remainder of the term being filled. | 
      
      
        | 
           
			 | 
               Sec. 8872.054.  COMPENSATION.  (a)  A director is not  | 
      
      
        | 
           
			 | 
        entitled to receive compensation for performing the duties of a  | 
      
      
        | 
           
			 | 
        director. | 
      
      
        | 
           
			 | 
               (b)  The board may authorize a director to receive  | 
      
      
        | 
           
			 | 
        reimbursement for the director's reasonable and actual expenses  | 
      
      
        | 
           
			 | 
        incurred while engaging in activities inside or outside the  | 
      
      
        | 
           
			 | 
        district on behalf of the board. | 
      
      
        | 
           
			 | 
               Sec. 8872.055.  ELECTION OF BOARD OFFICERS.  (a)  At the  | 
      
      
        | 
           
			 | 
        first meeting of the board in each calendar year, the board shall  | 
      
      
        | 
           
			 | 
        elect directors to serve as the president, vice president,  | 
      
      
        | 
           
			 | 
        secretary, and treasurer. | 
      
      
        | 
           
			 | 
               (b)  The president shall serve as the presiding officer of  | 
      
      
        | 
           
			 | 
        the board. | 
      
      
        | 
           
			 | 
               (c)  The treasurer shall serve as the financial officer of  | 
      
      
        | 
           
			 | 
        the district. | 
      
      
        | 
           
			 | 
        SUBCHAPTER C.  POWERS AND DUTIES | 
      
      
        | 
           
			 | 
               Sec. 8872.101.  GENERAL POWERS.  (a)  Except as otherwise  | 
      
      
        | 
           
			 | 
        provided by this chapter, the district has all of the rights,  | 
      
      
        | 
           
			 | 
        powers, privileges, functions, and duties provided by the general  | 
      
      
        | 
           
			 | 
        law of this state applicable to groundwater conservation districts  | 
      
      
        | 
           
			 | 
        created under Section 59, Article XVI, Texas Constitution,  | 
      
      
        | 
           
			 | 
        including Chapter 36, Water Code. | 
      
      
        | 
           
			 | 
               (b)  Before confirmation of the district, the district's  | 
      
      
        | 
           
			 | 
        powers are limited to: | 
      
      
        | 
           
			 | 
                     (1)  performance of the duties necessary to hold an  | 
      
      
        | 
           
			 | 
        election to confirm the creation of the district; | 
      
      
        | 
           
			 | 
                     (2)  registration of existing wells that are not exempt  | 
      
      
        | 
           
			 | 
        from the district requirement to obtain a permit under this chapter  | 
      
      
        | 
           
			 | 
        or Chapter 36, Water Code; | 
      
      
        | 
           
			 | 
                     (3)  collection of annual groundwater production  | 
      
      
        | 
           
			 | 
        reports from wells that are not exempt from the district  | 
      
      
        | 
           
			 | 
        requirement to obtain a permit under this chapter or Chapter 36,  | 
      
      
        | 
           
			 | 
        Water Code; and | 
      
      
        | 
           
			 | 
                     (4)  participation in joint planning with other  | 
      
      
        | 
           
			 | 
        districts as provided by Section 8872.021(e). | 
      
      
        | 
           
			 | 
               (c)  The district shall adopt rules and prescribe forms  | 
      
      
        | 
           
			 | 
        necessary to implement Subsections (b)(2) and (3). | 
      
      
        | 
           
			 | 
               (d)  Section 36.121, Water Code, does not apply to the  | 
      
      
        | 
           
			 | 
        district. | 
      
      
        | 
           
			 | 
               Sec. 8872.102.  NO EMINENT DOMAIN POWER.  The district may  | 
      
      
        | 
           
			 | 
        not exercise the power of eminent domain. | 
      
      
        | 
           
			 | 
               Sec. 8872.103.  PERMITS: RULES.  (a)  The district shall  | 
      
      
        | 
           
			 | 
        adopt rules to: | 
      
      
        | 
           
			 | 
                     (1)  require a person to obtain a permit from the  | 
      
      
        | 
           
			 | 
        district to drill and produce groundwater from a well, including an  | 
      
      
        | 
           
			 | 
        existing well, unless the well is exempt from permitting under this  | 
      
      
        | 
           
			 | 
        chapter or Chapter 36, Water Code; | 
      
      
        | 
           
			 | 
                     (2)  regulate the terms of a transfer of groundwater  | 
      
      
        | 
           
			 | 
        out of the district;  | 
      
      
        | 
           
			 | 
                     (3)  regulate the spacing of wells drilled after  | 
      
      
        | 
           
			 | 
        September 1, 2015, to prevent unreasonable adverse interference  | 
      
      
        | 
           
			 | 
        with other wells; | 
      
      
        | 
           
			 | 
                     (4)  provide for the uniform and nondiscriminatory  | 
      
      
        | 
           
			 | 
        reduction or curtailment of the production of groundwater by all  | 
      
      
        | 
           
			 | 
        permit holders in the district, if necessary, to protect spring  | 
      
      
        | 
           
			 | 
        flow and base flow and reduce aquifer drawdown based on scientific  | 
      
      
        | 
           
			 | 
        data provided to the district; | 
      
      
        | 
           
			 | 
                     (5)  limit groundwater production: | 
      
      
        | 
           
			 | 
                           (A)  by the spacing of wells; | 
      
      
        | 
           
			 | 
                           (B)  by basing production on acreage or tract  | 
      
      
        | 
           
			 | 
        size; or | 
      
      
        | 
           
			 | 
                           (C)  for a public water supplier, by basing  | 
      
      
        | 
           
			 | 
        production on the service area of the supplier; and | 
      
      
        | 
           
			 | 
                     (6)  require the owner of a well that is not exempt from  | 
      
      
        | 
           
			 | 
        the district requirement to obtain a permit under this chapter or  | 
      
      
        | 
           
			 | 
        Chapter 36, Water Code, to report to the district in January of each  | 
      
      
        | 
           
			 | 
        year the annual production of groundwater from the well based on  | 
      
      
        | 
           
			 | 
        metered production. | 
      
      
        | 
           
			 | 
               (b)  The terms of a permit that authorizes the production of  | 
      
      
        | 
           
			 | 
        groundwater for transfer out of the district for beneficial use  | 
      
      
        | 
           
			 | 
        must be consistent with applicable law, including Section 36.122,  | 
      
      
        | 
           
			 | 
        Water Code, and may not be more restrictive than the terms of a  | 
      
      
        | 
           
			 | 
        permit authorizing the production of groundwater for beneficial use  | 
      
      
        | 
           
			 | 
        inside the district. | 
      
      
        | 
           
			 | 
               (c)  The district may establish permit conditions and  | 
      
      
        | 
           
			 | 
        limitations as provided by Section 36.122, Water Code. | 
      
      
        | 
           
			 | 
               Sec. 8872.104.  PERMITS: LANDOWNERS GENERALLY.  (a)  The  | 
      
      
        | 
           
			 | 
        district shall grant a permit that authorizes a person to drill one  | 
      
      
        | 
           
			 | 
        or more wells not to exceed 12 inches in diameter on land owned or  | 
      
      
        | 
           
			 | 
        controlled by the person through a lease or other legal right. | 
      
      
        | 
           
			 | 
               (b)  Under this section, the district shall grant the  | 
      
      
        | 
           
			 | 
        drilling permit holder a permit for the production of groundwater  | 
      
      
        | 
           
			 | 
        not to exceed an actual production capacity of two acre-feet per  | 
      
      
        | 
           
			 | 
        year for each contiguous acre of land associated with the well. | 
      
      
        | 
           
			 | 
               (c)  The district shall issue a production permit described  | 
      
      
        | 
           
			 | 
        by Subsection (b) for an existing well that has a diameter not  | 
      
      
        | 
           
			 | 
        greater than 12 inches for the production of groundwater not to  | 
      
      
        | 
           
			 | 
        exceed an actual production capacity of two acre-feet per year. | 
      
      
        | 
           
			 | 
               Sec. 8872.105.  PERMITS: CITY.  The district shall grant the  | 
      
      
        | 
           
			 | 
        city permits in the city's name that authorize the city to pump from  | 
      
      
        | 
           
			 | 
        all wells operated or controlled by the city a cumulative volume of  | 
      
      
        | 
           
			 | 
        groundwater of 18,400 acre-feet per year. | 
      
      
        | 
           
			 | 
               Sec. 8872.106.  PERMITS: RETAIL PUBLIC UTILITY.  (a)  The  | 
      
      
        | 
           
			 | 
        district shall grant a permit to a retail public utility in the  | 
      
      
        | 
           
			 | 
        district or to a political subdivision other than the city that is  | 
      
      
        | 
           
			 | 
        providing water or sewer service on or before the effective date of  | 
      
      
        | 
           
			 | 
        the Act enacting this chapter.  The permit must authorize the  | 
      
      
        | 
           
			 | 
        production of a cumulative volume of groundwater from the wells  | 
      
      
        | 
           
			 | 
        owned by the entity in an amount equal to the amount of groundwater  | 
      
      
        | 
           
			 | 
        required to meet the entity's current and projected needs as  | 
      
      
        | 
           
			 | 
        determined under Section 13.250, Water Code. | 
      
      
        | 
           
			 | 
               (b)  The permitted entity may not resell the groundwater  | 
      
      
        | 
           
			 | 
        produced under the permit to any person for use or resale outside  | 
      
      
        | 
           
			 | 
        the entity's service area, including the area covered by a  | 
      
      
        | 
           
			 | 
        certificate of convenience and necessity, and must put the water to  | 
      
      
        | 
           
			 | 
        beneficial use within the entity's service area. | 
      
      
        | 
           
			 | 
               Sec. 8872.107.  PERMITS: AGRICULTURE.  (a)  A person is  | 
      
      
        | 
           
			 | 
        entitled to apply for and receive a permit granted for agricultural  | 
      
      
        | 
           
			 | 
        irrigation.  The permit must authorize the production of  | 
      
      
        | 
           
			 | 
        groundwater necessary for the irrigation of crops equal to three  | 
      
      
        | 
           
			 | 
        acre-feet per year for each acre of land inside the district using  | 
      
      
        | 
           
			 | 
        pivot, roller, echo drip, or bordered floor irrigation. | 
      
      
        | 
           
			 | 
               (b)  A permit issued under this section is nontransferable  | 
      
      
        | 
           
			 | 
        and expires on the date the well ceases to be used solely for  | 
      
      
        | 
           
			 | 
        irrigation inside the district. | 
      
      
        | 
           
			 | 
               Sec. 8872.108.  PERMITS: COMMERCE AND INDUSTRY.  The  | 
      
      
        | 
           
			 | 
        district shall grant a permit for the production of groundwater  | 
      
      
        | 
           
			 | 
        from an existing well that is beneficially used for commercial or  | 
      
      
        | 
           
			 | 
        industrial purposes outside the limits  or the extraterritorial  | 
      
      
        | 
           
			 | 
        jurisdiction of the city.  The permit must authorize the production  | 
      
      
        | 
           
			 | 
        of a cumulative volume of groundwater that is equal to the maximum  | 
      
      
        | 
           
			 | 
        historic use as proven by the person seeking the permit. | 
      
      
        | 
           
			 | 
               Sec. 8872.109.  WELL REGISTRATION.  A permit issued under  | 
      
      
        | 
           
			 | 
        this chapter authorizing the production of groundwater from the  | 
      
      
        | 
           
			 | 
        aquifer must also authorize the drilling and operation of a well or  | 
      
      
        | 
           
			 | 
        wells in the aquifer, and must require the permit holder to: | 
      
      
        | 
           
			 | 
                     (1)  register each well with the district; and | 
      
      
        | 
           
			 | 
                     (2)  file a copy of the well driller's log with the  | 
      
      
        | 
           
			 | 
        district on completion of each well. | 
      
      
        | 
           
			 | 
               Sec. 8872.110.  PROPERTY RIGHTS.  (a)  A permit issued by the  | 
      
      
        | 
           
			 | 
        district for the drilling, operation, or production of a well is  | 
      
      
        | 
           
			 | 
        appurtenant to the real property on which the well is located.   | 
      
      
        | 
           
			 | 
        Ownership of the groundwater, or the right to use and produce the  | 
      
      
        | 
           
			 | 
        groundwater authorized by the permit, may be sold, leased,  | 
      
      
        | 
           
			 | 
        assigned, or otherwise transferred by the owner, provided that the  | 
      
      
        | 
           
			 | 
        rights granted by the permit to drill a well and to produce  | 
      
      
        | 
           
			 | 
        groundwater are exercised on the real property described in the  | 
      
      
        | 
           
			 | 
        permit based on the actual production authorized by the permit. | 
      
      
        | 
           
			 | 
               (b)  Except as provided by this chapter, groundwater  | 
      
      
        | 
           
			 | 
        produced as authorized by a permit, once captured at the wellhead,  | 
      
      
        | 
           
			 | 
        may be beneficially used for any lawful purpose at any location,  | 
      
      
        | 
           
			 | 
        whether on or off the real property to which the permit is attached,  | 
      
      
        | 
           
			 | 
        provided that any beneficial use outside the boundaries of the  | 
      
      
        | 
           
			 | 
        district is authorized by a transport permit issued by the  | 
      
      
        | 
           
			 | 
        district. | 
      
      
        | 
           
			 | 
               Sec. 8872.111.  REDUCTION AND CURTAILMENT.  (a)  The board by  | 
      
      
        | 
           
			 | 
        rule may provide for the reduction and curtailment of the  | 
      
      
        | 
           
			 | 
        production of groundwater from a well permitted under this chapter  | 
      
      
        | 
           
			 | 
        to protect spring flow and base flow and reduce drawdown in  | 
      
      
        | 
           
			 | 
        accordance with Sections 8872.103(a)(4) and (5). | 
      
      
        | 
           
			 | 
               (b)  To implement a reduction or curtailment, the district  | 
      
      
        | 
           
			 | 
        may, to the extent not otherwise authorized by Section 36.101(a),  | 
      
      
        | 
           
			 | 
        Water Code, limit groundwater production as provided by district  | 
      
      
        | 
           
			 | 
        rules. | 
      
      
        | 
           
			 | 
               (c)  Rules adopted by the board requiring a reduction or  | 
      
      
        | 
           
			 | 
        curtailment of the production of groundwater must be applied on a  | 
      
      
        | 
           
			 | 
        proportional, uniform, and nondiscriminatory basis to all  | 
      
      
        | 
           
			 | 
        permitted production, unless the condition requiring reduction or  | 
      
      
        | 
           
			 | 
        curtailment is limited to a management zone created under Section  | 
      
      
        | 
           
			 | 
        8872.112. | 
      
      
        | 
           
			 | 
               Sec. 8872.112.  MANAGEMENT ZONES.  (a)  If the district  | 
      
      
        | 
           
			 | 
        determines based on scientific data received by the district in a  | 
      
      
        | 
           
			 | 
        meeting held for that purpose that conditions in or use of an  | 
      
      
        | 
           
			 | 
        aquifer differ substantially between hydrogeological areas of the  | 
      
      
        | 
           
			 | 
        district, the district may establish management zones to better  | 
      
      
        | 
           
			 | 
        manage the groundwater resources and adopt different rules to  | 
      
      
        | 
           
			 | 
        regulate production from the management zones based on acreage,  | 
      
      
        | 
           
			 | 
        tract size, or the service area of a public water supplier.  In  | 
      
      
        | 
           
			 | 
        creating management zones, the district may consider: | 
      
      
        | 
           
			 | 
                     (1)  each aquifer, subdivision of an aquifer, or  | 
      
      
        | 
           
			 | 
        geologic strata located wholly or partly within the district; or | 
      
      
        | 
           
			 | 
                     (2)  each geographic area overlying an aquifer or  | 
      
      
        | 
           
			 | 
        subdivision of an aquifer located wholly or partly within the  | 
      
      
        | 
           
			 | 
        district. | 
      
      
        | 
           
			 | 
               (b)  The district must regulate the production of  | 
      
      
        | 
           
			 | 
        groundwater in a management zone on a proportional, uniform, and  | 
      
      
        | 
           
			 | 
        nondiscriminatory basis. | 
      
      
        | 
           
			 | 
               Sec. 8872.113.  PERMIT RENEWAL.  (a)  Except as provided by  | 
      
      
        | 
           
			 | 
        Subsection (b), the district shall without a hearing renew or  | 
      
      
        | 
           
			 | 
        approve an application to renew an operating permit before the date  | 
      
      
        | 
           
			 | 
        on which the permit expires, provided that: | 
      
      
        | 
           
			 | 
                     (1)  the application, if required by the district, is  | 
      
      
        | 
           
			 | 
        submitted in a timely manner and accompanied by any required fees in  | 
      
      
        | 
           
			 | 
        accordance with district rules; and | 
      
      
        | 
           
			 | 
                     (2)  the permit holder is not requesting a change  | 
      
      
        | 
           
			 | 
        related to the renewal that would require a permit amendment under  | 
      
      
        | 
           
			 | 
        district rules. | 
      
      
        | 
           
			 | 
               (b)  The district is not required to renew a permit under  | 
      
      
        | 
           
			 | 
        this section if the applicant: | 
      
      
        | 
           
			 | 
                     (1)  is delinquent in paying a fee required by the  | 
      
      
        | 
           
			 | 
        district; | 
      
      
        | 
           
			 | 
                     (2)  is subject to a pending enforcement action for a  | 
      
      
        | 
           
			 | 
        substantive violation of a district permit, order, or rule that has  | 
      
      
        | 
           
			 | 
        not been settled by agreement with the district or a final  | 
      
      
        | 
           
			 | 
        adjudication; or | 
      
      
        | 
           
			 | 
                     (3)  has not paid a civil penalty or has otherwise  | 
      
      
        | 
           
			 | 
        failed to comply with an order resulting from a final adjudication  | 
      
      
        | 
           
			 | 
        of a violation of a district permit, order, or rule. | 
      
      
        | 
           
			 | 
               (c)  If the district is not required to renew a permit under  | 
      
      
        | 
           
			 | 
        Subsection (b)(2), the permit remains in effect until the final  | 
      
      
        | 
           
			 | 
        settlement or adjudication on the matter of the substantive  | 
      
      
        | 
           
			 | 
        violation. | 
      
      
        | 
           
			 | 
               Sec. 8872.114.  LIMITATION ON WELL PERMIT REQUIREMENTS.  (a)   | 
      
      
        | 
           
			 | 
        The district may not require a person to install a meter or obtain a  | 
      
      
        | 
           
			 | 
        permit from the district for: | 
      
      
        | 
           
			 | 
                     (1)  a well drilled after January 1, 2015, and used to  | 
      
      
        | 
           
			 | 
        produce groundwater solely inside the district for domestic use or  | 
      
      
        | 
           
			 | 
        for another exempt purpose on a tract of land not larger than 10  | 
      
      
        | 
           
			 | 
        acres and that produces not more than 30,000 gallons of groundwater  | 
      
      
        | 
           
			 | 
        a day, notwithstanding the production capability of the well; or | 
      
      
        | 
           
			 | 
                     (2)  a well drilled after January 1, 2015, and used to  | 
      
      
        | 
           
			 | 
        produce groundwater solely inside the district for domestic use or  | 
      
      
        | 
           
			 | 
        for another exempt purpose on a tract of land larger than 10 acres  | 
      
      
        | 
           
			 | 
        and that produces not more than 72,000 gallons of groundwater a day,  | 
      
      
        | 
           
			 | 
        notwithstanding the production capability of the well. | 
      
      
        | 
           
			 | 
               (b)  An owner of a well described by this section shall  | 
      
      
        | 
           
			 | 
        register the well with the district. | 
      
      
        | 
           
			 | 
               (c)  The district may not require a permit or a permit  | 
      
      
        | 
           
			 | 
        amendment for the maintenance or repair of a well that is not exempt  | 
      
      
        | 
           
			 | 
        from permitting under this chapter or Chapter 36, Water Code, if the  | 
      
      
        | 
           
			 | 
        maintenance or repair does not make the well capable of producing an  | 
      
      
        | 
           
			 | 
        amount of groundwater that is greater than the production amounts  | 
      
      
        | 
           
			 | 
        provided by the well's permit. | 
      
      
        | 
           
			 | 
               (d)  Nothing in Subsection (a) prevents the applicability in  | 
      
      
        | 
           
			 | 
        the district of Section 36.113(a), Water Code. | 
      
      
        | 
           
			 | 
               (e)  The owner of an existing well is exempt from the  | 
      
      
        | 
           
			 | 
        district's production permit requirements provided that the  | 
      
      
        | 
           
			 | 
        groundwater produced is for domestic use. | 
      
      
        | 
           
			 | 
               (f)  The owner of a well is exempt from the district's permit  | 
      
      
        | 
           
			 | 
        requirements provided that any groundwater produced is for  | 
      
      
        | 
           
			 | 
        agricultural use. | 
      
      
        | 
           
			 | 
               Sec. 8872.115.  PROHIBITION ON DISTRICT PURCHASE, SALE,  | 
      
      
        | 
           
			 | 
        TRANSPORT, OR DISTRIBUTION OF WATER.  The district may not  | 
      
      
        | 
           
			 | 
        purchase, sell, transport, or distribute surface water or  | 
      
      
        | 
           
			 | 
        groundwater for any purpose. | 
      
      
        | 
           
			 | 
               Sec. 8872.116.  RIGHT TO ENTER LAND.  Section 36.123, Water  | 
      
      
        | 
           
			 | 
        Code, which authorizes a district's employees or agents to go on and  | 
      
      
        | 
           
			 | 
        inspect the property of a landowner, applies to the district  | 
      
      
        | 
           
			 | 
        provided that: | 
      
      
        | 
           
			 | 
                     (1)  access is subject to written notice to the  | 
      
      
        | 
           
			 | 
        landowner; and | 
      
      
        | 
           
			 | 
                     (2)  the district's employees and agents are prohibited  | 
      
      
        | 
           
			 | 
        from carrying firearms on the landowner's property. | 
      
      
        | 
           
			 | 
               Sec. 8872.117.  WATER CONSERVATION INITIATIVE.  The district  | 
      
      
        | 
           
			 | 
        may create a water conservation initiative as provided by Section  | 
      
      
        | 
           
			 | 
        11.32, Tax Code. | 
      
      
        | 
           
			 | 
               Sec. 8872.118.  REGIONAL GROUNDWATER PLANNING.  (a)  The  | 
      
      
        | 
           
			 | 
        district shall obtain or develop groundwater models for use in  | 
      
      
        | 
           
			 | 
        planning and management of the aquifer and to assist the district in  | 
      
      
        | 
           
			 | 
        the district's role as a member of the groundwater management area  | 
      
      
        | 
           
			 | 
        in which the district is located. | 
      
      
        | 
           
			 | 
               (b)  The district, to the extent possible and through the  | 
      
      
        | 
           
			 | 
        designated representative for the groundwater management area in  | 
      
      
        | 
           
			 | 
        which the district is located, shall diligently pursue an increase  | 
      
      
        | 
           
			 | 
        in the managed available groundwater and an improvement in the  | 
      
      
        | 
           
			 | 
        desired future conditions for the aquifer as compared to those  | 
      
      
        | 
           
			 | 
        indicators for the aquifer on January 1, 2015. | 
      
      
        | 
           
			 | 
        SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS | 
      
      
        | 
           
			 | 
               Sec. 8872.151.  LIMITATION ON TAXES.  The district may not  | 
      
      
        | 
           
			 | 
        impose ad valorem taxes at a rate that exceeds five cents on each  | 
      
      
        | 
           
			 | 
        $100 valuation of taxable property in the district. | 
      
      
        | 
           
			 | 
               Sec. 8872.152.  APPLICABILITY OF CERTAIN TAX PROVISIONS.   | 
      
      
        | 
           
			 | 
        (a)  Sections 26.04, 26.05, 26.06, and 26.07, Tax Code, do not apply  | 
      
      
        | 
           
			 | 
        to a tax imposed by the district. | 
      
      
        | 
           
			 | 
               (b)  Section 49.236, Water Code, as added by Chapter 248  | 
      
      
        | 
           
			 | 
        (H.B. 1541), Acts of the 78th Legislature, Regular Session, 2003,  | 
      
      
        | 
           
			 | 
        applies to the district. | 
      
      
        | 
           
			 | 
               Sec. 8872.153. FEES.  (a)  The board by rule may impose  | 
      
      
        | 
           
			 | 
        uniform, reasonable, equitable, and nondiscriminatory annual  | 
      
      
        | 
           
			 | 
        production fees on the amount of permitted water actually produced  | 
      
      
        | 
           
			 | 
        from each well. | 
      
      
        | 
           
			 | 
               (b)  A production fee must be consistent with Section 36.205,  | 
      
      
        | 
           
			 | 
        Water Code, and may be based on: | 
      
      
        | 
           
			 | 
                     (1)  the size of column pipe used by the well; or | 
      
      
        | 
           
			 | 
                     (2)  the amount of water actually withdrawn from the  | 
      
      
        | 
           
			 | 
        well, or the amount authorized or anticipated to be withdrawn. | 
      
      
        | 
           
			 | 
               (c)  The district may assess a uniform and nondiscriminatory  | 
      
      
        | 
           
			 | 
        export fee consistent with Section 36.122, Water Code, on  | 
      
      
        | 
           
			 | 
        groundwater that is produced from a well inside the district and  | 
      
      
        | 
           
			 | 
        transferred outside the district. | 
      
      
        | 
           
			 | 
               (d)  The district may set fees by rule or resolution relating  | 
      
      
        | 
           
			 | 
        to administrative acts of the district, including filing  | 
      
      
        | 
           
			 | 
        applications, reviewing and processing permits, conducting permit  | 
      
      
        | 
           
			 | 
        hearings, providing public notice, and paying costs of legal fees,  | 
      
      
        | 
           
			 | 
        expert fees, and hearing facility rental fees.  The district may not  | 
      
      
        | 
           
			 | 
        assess a fee in an amount greater than $250 for processing permits. | 
      
      
        | 
           
			 | 
               SECTION 2.  (a)  The legal notice of the intention to  | 
      
      
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        introduce this Act, setting forth the general substance of this  | 
      
      
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        Act, has been published as provided by law, and the notice and a  | 
      
      
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        copy of this Act have been furnished to all persons, agencies,  | 
      
      
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        officials, or entities to which they are required to be furnished  | 
      
      
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        under Section 59, Article XVI, Texas Constitution, and Chapter 313,  | 
      
      
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        Government Code. | 
      
      
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               (b)  The governor, one of the required recipients, has  | 
      
      
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        submitted the notice and Act to the Texas Commission on  | 
      
      
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        Environmental Quality. | 
      
      
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               (c)  The Texas Commission on Environmental Quality has filed  | 
      
      
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        its recommendations relating to this Act with the governor, the  | 
      
      
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        lieutenant governor, and the speaker of the house of  | 
      
      
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        representatives within the required time. | 
      
      
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               (d)  All requirements of the constitution and laws of this  | 
      
      
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        state and the rules and procedures of the legislature with respect  | 
      
      
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        to the notice, introduction, and passage of this Act are fulfilled  | 
      
      
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        and accomplished. | 
      
      
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               SECTION 3.  This Act takes effect immediately if it receives  | 
      
      
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        a vote of two-thirds of all the members elected to each house, as  | 
      
      
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        provided by Section 39, Article III, Texas Constitution.  If this  | 
      
      
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        Act does not receive the vote necessary for immediate effect, this  | 
      
      
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        Act takes effect September 1, 2015. |