By: Nevárez	H.B. No. 4123

	A BILL TO BE ENTITLED
	AN ACT
	Relating to the creation of the Val Verde County Groundwater
	Conservation District; providing authority to impose fees and
	taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  CREATION. A groundwater conservation district,
	to be known as the Val Verde County Groundwater Conservation
	District, is created in Val Verde County, subject to approval at a
	confirmation election under Section 7 of this Act.
	SECTION 2.  FINDINGS OF BENEFIT. (a) The district is created
	to serve a public use and benefit.
	(b)  The district is created under and is essential to
	accomplish the purposes of Section 59, Article XVI, Texas
	Constitution.
	(c)  All of the land and other property included within the
	boundaries of the district will be benefited by the works and
	projects that are to be accomplished by the district under powers
	conferred by Section 59, Article XVI, Texas Constitution.
	SECTION 3.  CONTINUTING PROVISIONS OF DISTRICT. Subtitle H,
	Title 6, Special District Local Laws Code, is amended by adding
	Chapter 01 to read as follows:
	CHAPTER 01. VAL VERDE COUNTY GROUNDWATER CONSERVATION DISTRICT
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 01.001  DEFINITIONS. In this chapter:
	(1)  "Agricultural use" means any use or activity involving
	agriculture, including irrigation.
	(2)  "Agriculture" means any of the following activities:
	(A)  cultivating the soil to produce crops for human
	food, animal feed, or planting seed or for the production of fibers;
	(B)  the practice of floriculture viticulture,
	silviculture, and horticulture, including the cultivation of
	plants in containers of nonsoil media, by a nursery grower;
	(C)  raising, feeding, or keeping animals, other than
	fish, for breeding purposes or for the production of food or fiber,
	leather, pelts, or other tangible products having a commercial
	value;
	(D)  planting cover crops, including cover crops
	cultivated for transplantation, or leaving land idle for the
	purpose of participating in any governmental program or normal crop
	or livestock rotation procedure;
	(E)  wildlife management, including hunting, fishing,
	sightseeing, bird watching and other outdoor recreational
	activities; and
	(F)  raising or keeping equine animals.
	(3)  "Board" means the board of directors of the district.
	(4)  "Director" means a member of the board.
	(5)  "District" means the Val Verde County Groundwater
	Conservation District.
	(6)  "Domestic use" means use in the district of water by a
	person owning the well from which the water is withdrawn and by that
	person's household, employees, tenants, licensees or guests for:
	(A)  drinking, washing, or culinary purposes;
	(B)  irrigation of lawns;
	(C)  irrigation of a family garden or orchard the
	produce of which is for household consumption only;
	(D)  swimming pools, decorative ponds, or fountains on
	the person's property or;
	(E)  watering of domestic animals not raised,
	maintained, or sold for commercial purposes.
	(7)  "Greatest water usage" means the highest sum for a given
	calendar year of: (i) groundwater produced; and (ii) water used
	pursuant to a water right as defined in Section 11.002(5), Water
	Code.
	(7)  "Political subdivision" means a county, municipality,
	or other body politic or corporate of the state, including a
	district or authority created under Section 52, Article III, or
	Section 59, Article XVI, Texas Constitution, a state agency, or a
	nonprofit water supply corporation created under Chapter 67, Water
	Code.
	(8)  "Retail public utility" means an entity defined in
	Section 13.002(19), Water Code.
	(9)  "Del Rio Certificate of Adjudication" means the
	Certificate of Adjudication No.  23-2672 issued by the Texas Water
	Commission to the City of Del Rio on August 15, 1983.
	SEC. 01.002. NATURE OF DISTRICT. The district is a
	groundwater conservation district in Val Verde County created under
	Section 59, Article XVI, Texas Constitution.
	SEC. 01.003. DISTRICT PURPOSE. The district is created to:
	(1)  provide for the protection, recharging,
	conserving, protecting, and prevention of waste of groundwater in
	Val Verde County;
	(2)  control subsidence caused by the withdrawal of
	water from the groundwater in Val Verde County;
	(3)  regulate the transport of groundwater out of the
	boundaries of the district;
	(4)  regulate pumping in the district to protect spring
	flow, base flow and drawdown;
	(5)  implement conservation plans and pumping
	reduction when conditions warrant action to protect spring flow,
	base flow and drawdown; and
	(6)  manage the issuance of permits, by requiring
	studies and groundwater availability model analysis of permit
	applications, that include conservation triggers that mitigate
	impact to spring flow, base flow and drawdown.
	SUBCHAPTER B. TERRITORY
	Sec. 01.004.  BOUNDARIES. The boundaries of the district
	are coextensive with the boundaries of Val Verde County, Texas.
	SUBCHAPTER C. BOARD OF DIRECTORS
	Sec. 01.101.  BOARD. The board shall be governed by five
	directors.
	Sec. 01.102.  METHOD OF APPOINTING SELECTING DIRECTORS:
	(a)  The directors of the district shall be appointed or
	elected as provided by this section.
	(b)  One (1) director shall be appointed by the City Council
	of the City of Del Rio, Texas.
	(c)  One (1) director shall be appointed by the Commissioners
	court of Val Verde County, Texas.
	(d)  One (1) director shall be elected at-large by the voters
	of Val Verde, County.
	(e)  One (1) director shall be elected by the voters of
	Commissioner Precincts 2 and 3, combined, of the Commissioners
	Court of Val Verde County, as such precincts may be redrawn from
	time to time by such Commissioners Court.
	(f)  One (1) director shall be elected by the voters of
	Commissioner Precincts 1 and 4, combined, of the
	Commissioners Court of Val Verde County, as such
	precincts may be redrawn from time to time by such
	Commissioners Court
	(g)  To be eligible to serve as a director, a person must be a
	registered voter of Val Verde County, Texas.
	(h)  Elections for the director positions in subsections
	(d)-(f) of this Section shall be held in even-numbered years on the
	uniform election date in November.
	Sec. 01.103.  TERMS.
	(a)  Directors serve staggered four-tear terms and may serve
	consecutive terms.
	(b)  Directors 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 two 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.
	Sec. 01.104.  VACANCIES. If there is a vacancy on the board,
	the board shall appoint a director to serve the remainder of the
	term.
	Sec. 01.105  COMPENSATION. (a) A director is not entitled to
	receive fees of office for performing the duties of a director.
	(b)  The board may authorize a director to receive
	reimbursement for the director's reasonable expenses incurred
	while engaging in activities outside the district on behalf of the
	board.
	SUBCHAPTER D. POWERS AND DUTIES
	Sec. 01.150.  POWERS AND DUTIES. Except as otherwise
	provided by this chapter, the district has all of the rights,
	powers, privileges, authority, functions, and duties provided by
	the general law of this state, including Chapter 36, Water Code,
	applicable to groundwater conservation districts created under
	Section 59, Article XVI, Texas Constitution.
	Sec. 01.151  PERMITS TO PUMP GROUNDWATER.
	(a)  The district by rule shall:
	(1)  require a person to obtain a permit from the
	district to pump groundwater unless exempted under other sections
	of this legislation; and
	(2)  regulate the terms of a transfer of groundwater
	out of the district.
	(b)  The district shall develop rules under this section
	that:
	(1)  are consistent with the requirements of Section
	36.122, Water Code, except as otherwise provided in Section
	01.202(c) of this legislation; and
	(2)  provide for reduction and curtailment of
	groundwater pumping to protect spring flow, base flow and drawdown;
	and
	(3)  do not, in any event, seek to reduce or curtail
	usage or production under a water right as defined in Section
	11.002(5), Water Code, including the Del Rio Certificate of
	Adjudication.
	(c)  To implement the rules developed under 01.151(b)(2) of
	this legislation, the district may make and enforce rules as
	authorized under Section 36.101(a), Water Code, and to the extent
	not otherwise authorized by Section 36.101(a), limit groundwater
	production based on acreage, tract size, spacing of wells, or the
	service area of a public water supplier.
	(c-1)  Any district rules or enforcement of rules requiring
	reductions or curtailments on the production of groundwater
	otherwise authorized by permit shall be applied proportionally to
	all such permitted production.
	(d)  For better management of the groundwater resources
	located in the district, if the district determines that conditions
	in or use of an aquifer differ substantially from one geographic
	area of the district to another, the district may adopt different
	rules regulating production from 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 in whole or in part within the boundaries of
	the district; or
	(2)  each geographic area overlying an aquifer or
	subdivision of an aquifer located in whole or in part within the
	boundaries of the district.
	Sec. 01.152.  PERMITS FOR USE SOLELY INSIDE DISTRICT.
	(a)  The district shall grant the City of Del Rio a permit in
	the city's name that authorizes the city to pump from all city wells
	annually a cumulative volume of groundwater that is not less than
	the greatest water usage in a calendar year before the date the
	district is confirmed. The permit shall be for use solely inside the
	district.
	(b)  In addition to the permit in Section 01.152(a), the
	district shall grant a permit to each existing political
	subdivision and retail public utility in the district that
	authorizes each such political subdivision and retail public
	utility to pump from its wells annually a volume of water that is
	not less than the greatest water usage by such political
	subdivision and retail public utility in a calendar year before the
	date the district is confirmed. The permit shall be for use solely
	inside the district.
	(c)  Nothing in this section, or in Section 01.053(a)(1),
	shall be considered a limitation under Section 36.122(c), Water
	Code, on the district's authority to establish permit conditions
	for transporters.
	Sec. 01.153.  EXEMPTIONS. (a) The district shall not
	require a person to obtain a permit from the district for
	groundwater production from a well if the well is not capable of
	producing more than 72,000 gallons a groundwater a day and the
	groundwater is used inside the district.
	(a-1)  Nothing in Section 01.153(a) makes Section 36.113(a), Water
	Code, inapplicable in the district.
	(b)  An owner of a well described in this section may be
	required to register the well with the district.
	(c)  An owner of a well is entitled to a permit exemption
	under this section only if water from the well is used solely inside
	the district. If any water from a well is directly or indirectly
	(other than through an agricultural crop) used outside the
	district, the well owner must obtain a permit for its production, in
	addition to any permits that must be obtained for its use outside
	the district.
	(d)  The district may not require a permit or a permit
	amendment for maintenance or repair of a well if the maintenance or
	repair does not increase the production capabilities of the well to
	more than its authorized or permitted production rate.
	Sec. 01.154.  PROHIBITION OF DISTRICT PURCHASE, SALE, OR
	DISTRIBUTION OF WATER. The district may not purchase, sell,
	transport, or distribute surface water or groundwater for any
	purpose.
	Sec. 01.155.  PROHIBITION ON DISTRICT USE OF EMINENT DOMAIN.
	The district may not exercise the power of eminent domain.
	Sec. 01.156.  GROUNDWATER FLOW MODEL.
	(a)  The district shall develop a district specific model
	which shall be used in conjunction with joint planning in the
	management area process found in Section 36.108 of the Texas Water
	Code. Until a subsequent study is determined by the district board
	of directors to be more appropriate, the district shall use as its
	model the Val Verde County/City of Del Rio Hydrogeological Study
	dated May 2014 by EcoKai Environmental, Inc. and William R.
	Hutchison, Ph.D, P.E., P.G.
	(b)  Applicants for transfer will be required to pay for any
	cost to run updated modeling of the effects of the proposed pumping
	on the aquifer and spring flow, base flow and drawdown. The district
	will utilize the information provided by the model in considering
	the applications.
	(c)  The district can require any other permit applicant to
	pay for the cost of the model utilization, if it deems the volume of
	pumping warrants model review.
	Sec. 01.157.  WATER CONSERVATION INITIATIVE. The district
	may create a water conservation initiative as described by Section
	11.32, Tax Code.
	SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
	Sec. 01.201.  LIMITATION ON TAXES.
	(a)  The district may not levy ad valorem taxes at any rate
	that exceeds five (5) cents on each $100 of assessed valuation of
	taxable property in the district.
	(b)  Sections 26.04, 26.05 and 26.06 of the Texas Tax Code do
	not apply to a tax levied and collected by the District. Instead,
	the District must follow the requirements under Section 49.236 of
	the Texas Water Code.
	Sec. 01.202.  FEES.
	(a)  The board by rule may impose reasonable and equitable
	fees on each well:
	(1)  for which a permit is issued by the district; and
	(2)  that is not exempt from district regulation.
	(b)  A production fee may be based on:
	(1)  the size of column pipe used by the well, or
	(2)  the amount of water actually withdrawn from the
	well, or the amount authorized or anticipated to be withdrawn.
	(c)  In addition to the production fee authorized under this
	section, the district shall assess a reasonable export fee on
	groundwater produced from a well and transported outside the
	district.
	(d)  A district may set fees by rule or resolution for
	administrative acts of the district such as filing applications,
	reviewing and processing permits, conducting permit hearings, cost
	of public notices, legal fees, expert fees, hearing facility rental
	fees and other fees.
	(e)  Nothing in this section authorizes the board to impose a
	production fee on water used or produced under a water right as
	defined in Section 11.002(5), Water Code, including under the Del
	Rio Certificate of Adjudication.
	SECTION 5.  APPOINTMENT OF TEMPORARY DIRECTORS
	(a)  Not later than the 45th day after the effective date of
	this Act:
	(1)  the Val Verde County Commissioners Court shall
	appoint two temporary directors;
	(2)  the Del Rio City Council shall appoint two
	temporary directors; and
	(3)  the Val Verde County Judge and the Mayor of Del Rio
	shall jointly appoint one temporary director.
	(b)  Temporary directors serve until temporary directors
	become initial directors as provided by Section 8 of this Act or
	until this Act expires under Section 12, whichever occurs earlier.
	(c)  Before the confirmation election, the presiding officer
	of the district or the presiding officer's designee may represent
	the district in the joint planning process found in Section 36.108
	of the Texas Water Code and such designee shall be considered a
	voting representative.
	SECTION 6.  ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS.
	As soon as practicable after all the temporary directors have
	qualified under Section 36.055 of the Texas 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 no location can be agreed upon, the
	organizational meeting shall be at the Val Verde County Courthouse.
	SECTION 7.  CONFIRMATION ELECTION.
	(a)  The temporary directors shall hold an election to
	confirm the creation of the district.
	(b)  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.
	(c)  The district may hold a subsequent confirmation
	election if the previous confirmation election fails to pass. A
	subsequent confirmation election may not be held sooner than one
	year after the date of the previous confirmation election.
	(d)  The confirmation election ballot shall be printed to
	permit voting for or against the proposition: "To create the Val
	Verde County Groundwater Conservation District and to authorize a
	rate not to exceed 5 cents for each $100 valuation of all taxable
	property in the district."
	(e)  The costs of an election held under this chapter may be
	paid by Val Verde County and the City of Del Rio.
	(f)  If the establishment of the district is not confirmed at
	an election held under this section before September 1, 2020, the
	district is dissolved, except that:
	(1)  any debts incurred shall be paid;
	(2)  any assets that remain after the payment of the
	debts shall be transferred to Val Verde County and the City of Del
	Rio in proportion to the amounts each has contributed to the costs
	of the confirmation election and district operations; and
	(3)  the organization of the district shall be
	maintained until all debts are paid and remaining assets are
	transferred.
	SECTION 8.  INITIAL DIRECTORS
	If creation of the district is confirmed at an election held
	under Section 7 of this Act, the temporary directors of the district
	become the initial directors of the district and serve on the board
	of directors until replaced according to Section 01.102.
	SECTION 9.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS
	(a)  The legal notice of the intention to introduce this Act,
	setting forth the general substance of this Act, has been published
	as provided by law, and the notice and a copy of this Act have been
	furnished under Section 59, Article XVI, Texas Constitution, and
	Chapter 313
	, Government Code.
	(b)  The governor has submitted the notice and Act to the
	Texas Commission on Environmental Quality.
	(c)  The Texas Commission on Environmental Quality has filed
	its recommendations relating to this Act with the governor, the
	lieutenant governor, and the speaker of the house of
	representatives within the required time.
	(d)  All requirements of the constitution and laws of this
	state and the rules and procedures of the legislature with respect
	to the notice, introduction, and passage of this Act are fulfilled
	and accomplished.
	SECTION 10.  EXPIRATION
	(a)  If the creation of the district is not confirmed at a
	confirmation election held under Section 7 of this Act before
	September 1, 2020, this Act expires on that date.
	(b)  The expiration of this Act does not affect the liability
	of the district to pay any debt incurred or the transfer of any
	assets remaining to Val Verde County and the City of Del Rio as
	required by Section 7(f) of this Act.
	SECTION 11.  EFFECTIVE DATE
	This Act takes effect immediately if it receives a vote of
	two-thirds of all the members elected to each house, as provided by
	Section 39, Article III, Texas Constitution. If this Act does not
	receive the vote necessary for immediate effect, this Act takes
	effect September 1, 2015.