Water Code
CHAPTER 36. GROUNDWATER CONSERVATION DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 36.001. Definitions.
In this chapter:
(1) "District" means any district or authority created under
Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, that has the authority to regulate the spacing of
water wells, the production from water wells, or both.
(2) "Commission" means the Texas Natural Resource
Conservation Commission.
(3) "Executive director" means the executive director of the
commission.
(4) "Executive administrator" means the executive
administrator of the Texas Water Development Board.
(5) "Groundwater" means water percolating below the surface
of the earth.
(6) "Groundwater reservoir" means a specific subsurface
water-bearing reservoir having ascertainable boundaries
containing groundwater.
(7) "Subdivision of a groundwater reservoir" means a
definable part of a groundwater reservoir in which the
groundwater supply will not be appreciably affected by
withdrawing water from any other part of the reservoir, as
indicated by known geological and hydrological conditions and
relationships and on foreseeable economic development at the
time the subdivision is designated or altered.
(8) "Waste" means any one or more of the following:
(A) withdrawal of groundwater from a groundwater
reservoir at a rate and in an amount that causes or
threatens to cause intrusion into the reservoir of water
unsuitable for agricultural, gardening, domestic, or stock
raising purposes;
(B) the flowing or producing of wells from a groundwater
reservoir if the water produced is not used for a beneficial
purpose;
(C) escape of groundwater from a groundwater reservoir
to any other reservoir or geologic strata that does not
contain groundwater;
(D) pollution or harmful alteration of groundwater in a
groundwater reservoir by saltwater or by other deleterious
matter admitted from another stratum or from the surface of
the ground;
(E) wilfully or negligently causing, suffering, or
allowing groundwater to escape into any river, creek,
natural watercourse, depression, lake, reservoir, drain,
sewer, street, highway, road, or road ditch, or onto any
land other than that of the owner of the well unless such
discharge is authorized by permit, rule, or order issued by
the commission under Chapter 26;
(F) groundwater pumped for irrigation that escapes as
irrigation tailwater onto land other than that of the owner
of the well unless permission has been granted by the
occupant of the land receiving the discharge; or
(G) for water produced from an artesian well, "waste"
has the meaning assigned by Section 11.205.
(9) "Use for a beneficial purpose" means use for:
(A) agricultural, gardening, domestic, stock raising,
municipal, mining, manufacturing, industrial, commercial,
recreational, or pleasure purposes;
(B) exploring for, producing, handling, or treating oil,
gas, sulphur, or other minerals; or
(C) any other purpose that is useful and beneficial to
the user.
(10) "Subsidence" means the lowering in elevation of the
land surface caused by withdrawal of groundwater.
(11) "Board" means the board of directors of a district.
(12) "Director" means a member of a board.
(13) "Management area" means an area designated and
delineated by the commission under Chapter 35 as an area
suitable for management of groundwater resources.
(14) "Priority groundwater management area" means an area
designated and delineated by the commission under Chapter 35 as
an area experiencing or expected to experience critical
groundwater problems.
(15) "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 76,
Acts of the 43rd Legislature, 1st Called Session, 1933 (Article
1434a, Vernon's Texas Civil Statutes).
(16) "Loan fund" means the groundwater district loan
assistance fund created under Section 36.371.
(17) "Applicant" means a newly confirmed district applying
for a loan from the loan fund.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.20, eff.
Sept. 1, 1997.
Sec. 36.0015. Purpose.
In order to provide for the conservation, preservation,
protection, recharging, and prevention of waste of groundwater,
and of groundwater reservoirs or their subdivisions, and to
control subsidence caused by withdrawal of water from those
groundwater reservoirs or their subdivisions, consistent with the
objectives of Section 59, Article XVI, Texas Constitution,
groundwater conservation districts may be created as provided by
this chapter. Groundwater conservation districts created as
provided by this chapter are the state's preferred method of
groundwater management.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.21, eff. Sept. 1,
1997.
Sec. 36.002. Ownership of Groundwater.
The ownership and rights of the owners of the land and their
lessees and assigns in groundwater are hereby recognized, and
nothing in this code shall be construed as depriving or divesting
the owners or their lessees and assigns of the ownership or
rights, subject to rules promulgated by a district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 36.011. Method of Creating District.
(a) A groundwater conservation district may be created under and
subject to the authority, conditions, and restrictions of Section
59, Article XVI, Texas Constitution.
(b) The commission has exclusive jurisdiction over the
delineation of management areas and the creation of districts.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.012. Composition of District.
(a) A district may include all or part of one or more counties,
cities, districts, or other political subdivisions.
(b) A district may not include territory located in more than
one county except on a majority vote of the voters residing
within the territory in each county sought to be included in the
district at an election called for that purpose.
(c) The boundaries of a district must be coterminous with or
inside the boundaries of a management area or a priority
groundwater management area.
(d) A district may consist of separate bodies of land separated
by land not included in the district.
(e) A majority of the voters in a segregated area must approve
the creation of the district before that area may be included in
the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.22, eff.
Sept. 1, 1997.
Sec. 36.013. Petition to Create District.
(a) A petition requesting creation of a district must be filed
with the executive director for review and submission to the
commission.
(b) The petition filed pursuant to this section must be signed
by:
(1) a majority of the landowners within the proposed
district, as indicated by the county tax rolls; or
(2) if there are more than 50 landowners in the proposed
district, at least 50 of those landowners.
(c) The petition must include:
(1) the name of the proposed district;
(2) the area and boundaries of the proposed district,
including a map generally outlining the boundaries of the
proposed district;
(3) the purpose or purposes of the district;
(4) a statement of the general nature of any projects
proposed to be undertaken by the district, the necessity and
feasibility of the work, and the estimated costs of those
projects according to the persons filing the projects if the
projects are to be funded by the sale of bonds or notes; and
(5) any additional terms or conditions that restrict the
powers of the district from those provided in this chapter.
(d) If a part of the proposed district is not included within
either a management area or a priority groundwater management
area, the petition to create a district may also contain a
request to create a management area. A request to create a
management area must comply with the requirements for a petition
in Section 35.005, and may be acted on by the commission
separately from the petition to create the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.23, eff.
Sept. 1, 1997.
Sec. 36.014. Notice and Hearing on District Creation.
(a) If a petition is filed under Section 36.013, the commission
shall give notice of an application as required by Section
49.011(a) and may conduct a hearing on the application if the
commission determines that a hearing is necessary under Section
49.011.
(b) If the petition contains a request to create a management
area in all or part of the proposed district, the notice must
also be given in accordance with the requirements in Section
35.006 for the designation of management areas.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1070, Sec. 1, eff.
Sept. 1, 1997.
Sec. 36.015. Findings.
(a) If the commission finds that a district is feasible and
practicable, that it would be a benefit to the land in the
district, and that it would be a public benefit or utility, the
commission shall issue an order containing these findings
granting the petition.
(b) If the commission finds that a district is not feasible and
practicable, that it would not be a benefit to the land in the
district, that it would not be a public benefit or utility, or
that it is not needed, the commission by order shall deny the
petition.
(c) The commission may adjust the boundaries of the proposed
district to exclude any land that would not be benefited by
inclusion in the district and is not necessary to the district
for proper regulation of the groundwater reservoir.
(d) If the commission grants the petition to create the
district, it shall direct in its order creating the district that
an election be called by the temporary directors to confirm the
creation of the district and to elect permanent directors.
(e) The refusal to grant a petition to create a district does
not invalidate or affect the designation of any management area
requested in the same petition.
(f) The commission shall act on the petition within a
reasonable amount of time.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.0151. Creation of District for Priority Groundwater Management
Area.
(a) If the commission proposes that a district be created under
Section 35.012(d), it shall in its order creating the district
provide that temporary directors be appointed under Section
36.016 and that an election be called by the temporary directors
to confirm the creation of the district and to elect permanent
directors.
(b) The commission shall notify the county commissioners court
of each county with territory in the district of the district's
creation as soon as practicable after issuing the order creating
the district.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.24, eff. Sept. 1,
1997.
Sec. 36.016. Appointment of Temporary Directors.
(a) If the commission grants a petition to create a district
under Section 36.015 or after the commission dissolves a
district's board under Section 36.303, it shall appoint five
temporary directors.
(b) If the commission creates a district under Section 36.0151,
the county commissioners court or courts of the county or
counties that contain the area of the district shall, within 90
days after receiving notification by the commission under Section
36.0151(b), appoint five temporary directors, or more if the
district contains the territory of more than five counties, for
the district's board using the method provided by Section
36.0161. A county commissioners court shall not make any
appointments after the expiration of the 90-day period. If fewer
than five temporary directors have been appointed at the
expiration of the period, the commission shall appoint additional
directors so that the board has at least five members.
(c) Temporary directors appointed under this section shall
serve until the initial directors are elected and have qualified
for office or until the voters fail to approve the creation of
the district.
(d) If an appointee of the commission or of a county
commissioners court fails to qualify or if a vacancy occurs in
the office of temporary director, the commission or the county
commissioners court, as appropriate, shall appoint an individual
to fill the vacancy.
(e) As soon as all temporary directors have qualified, the
directors shall meet, take the oath of office, and elect a
chairman and vice chairman from among their membership. The
chairman shall preside at all meetings of the board and, in the
chairman's absence, the vice chairman shall preside.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.25, eff.
Sept. 1, 1977.
Sec. 36.0161. Method for Appointing Temporary Directors for District in
Priority Groundwater Management Area.
(a) If a district in a priority groundwater management area is:
(1) contained within one county, the county commissioners
court of that county shall appoint five temporary directors for
the district;
(2) contained within two counties, the county commissioners
court of each county shall appoint at least one temporary
director, with the appointments of the three remaining
directors to be apportioned as provided by Subsection (b);
(3) contained within three counties, the county
commissioners court of each county shall appoint at least one
temporary director, with the appointments of the two remaining
directors to be apportioned as provided by Subsection (b);
(4) contained within four counties, the county commissioners
court of each county shall appoint at least one temporary
director, with the appointment of the remaining director to be
apportioned as provided by Subsection (b); or
(5) contained within five or more counties, the county
commissioners court of each county shall appoint one temporary
director.
(b)(1) In this subsection, "estimated groundwater use" means
the estimate of groundwater use in acre-feet developed by the
commission under Subsection (c) for the area of a county that is
within the district.
(2) The apportionment of appointments under Subsection (a)
shall be made by the commission so as to reflect, as closely as
possible, the proportion each county's estimated groundwater
use bears to the sum of the estimated groundwater use for the
district as determined under Subsection (c). The commission
shall by rule determine the method it will use to implement
this subdivision.
(c) If a district for which temporary directors are to be
appointed is contained within two, three, or four counties, the
commission shall develop an estimate of annual groundwater use in
acre-feet for each county area within the district.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.26, eff. Sept. 1,
1997.
Sec. 36.017. Confirmation and Directors' Election.
(a) Not later than the 60th day after the date all temporary
directors have been appointed and have qualified, the temporary
directors shall meet and order an election to be held within the
boundaries of the proposed district to approve the creation of
the district and to elect permanent directors.
(b) In the order calling the election, the temporary directors
shall designate election precincts and polling places for the
election. In designating the polling places, the temporary
directors shall consider the needs of all voters for conveniently
located polling places.
(c) The temporary directors shall publish notice of the
election at least one time in at least one newspaper with general
circulation within the boundaries of the proposed district. The
notice must be published before the 30th day preceding the date
of the election.
(d) The ballot for the election must be printed to provide for
voting for or against the proposition: "The creation of the
____________ Groundwater Conservation District." If the district
levies a maintenance tax for payment of its expenses, the
proposition shall include the following language: "and the levy
of a maintenance tax at a rate not to exceed ______ cents for
each $100 of assessed valuation."
(e) Immediately after the election, the presiding judge of each
polling place shall deliver the returns of the election to the
temporary board, and the board shall canvass the returns and
declare the result. The board shall file a copy of the election
result with the commission.
(f) If a majority of the votes cast at the election favor the
creation of the district, the temporary board shall declare the
district created and shall enter the result in its minutes.
(g) If a majority of the votes cast at the election are against
the creation of the district, the temporary board shall declare
the district defeated and shall enter the result in its minutes.
(h) If the majority of the votes cast at the election are
against the creation of the district, the district shall have no
further authority, except that any debts incurred shall be paid
and the organization of the district shall be maintained until
all the debts are paid.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.018. Inclusion of Municipality.
(a) If part of the territory to be included in a district is
located in a municipality, a separate voting district may not be
established in the municipality for the purpose of determining
whether the municipality as a separate area is to be included in
the district.
(b) If for any other reason the territory in a municipality is
established as a separate voting district, the failure by the
voters in the municipal territory to confirm the creation of the
district or the annexation of territory to a district does not
prevent the territory in the municipality from being included in
the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1995.
Sec. 36.019. Confirmation Election in District Including Land in More Than
One County.
A district, the major portion of which is located in one
county, may not be organized to include land in another county
unless the election held in the other county to confirm and
ratify the creation of the district is approved by a majority of
the voters of the other county voting in an election called for
that purpose.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.020. Bond and Tax Proposal.
(a) At an election to create a district, the temporary
directors may include a proposition for the issuance of bonds or
notes, the levy of taxes to retire all or part of the bonds or
notes, and the levy of a maintenance tax. The maintenance tax
rate may not exceed 50 cents on each $100 of assessed valuation.
(b) The board shall include in any bond and tax proposition the
maximum amount of bonds or notes to be issued and their maximum
maturity date.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.021. Notification of County Clerk.
Within 30 days following the creation of a district or any
amendment to the boundaries of a district, the board of directors
shall file with the county clerk of each county in which all or
part of the district is located a certified copy of the
description of the boundaries of the district. Each county clerk
shall record the certified copy of the boundaries in the property
records of that county.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
SUBCHAPTER C. ADMINISTRATION
Sec. 36.051. Board of Directors.
(a) The governing body of a district is the board of directors,
which shall consist of not fewer than five and not more than 11
directors elected for four-year terms. The number of directors
may be changed as determined by the board when territory is
annexed by the district.
(b) A member of a governing body of another political subdivision
is ineligible for appointment or election as a director. A
director is disqualified and vacates the office of director if
the director is appointed or elected as a member of the governing
body of another political subdivision. This subsection does not
apply to any district with a population less than 50,000.
(c) Vacancies in the office of director shall be filled by
appointment of the board. If the vacant office is not scheduled
for election for longer than two years at the time of the
appointment, the board shall order an election for the unexpired
term to be held as part of the next regularly scheduled
director's election. The appointed director's term shall end on
qualification of the director elected at that election.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.052. Other Laws Not Applicable.
(a) Other laws governing the administration or operations of
districts created under Section 52, Article III, or Section 59,
Article XVI, Texas Constitution, shall not apply to any district
governed by this chapter. This chapter prevails over any other
law in conflict or inconsistent with this chapter, except any
special law governing a specific district shall prevail over this
chapter.
(b) Notwithstanding Subsection (a), the following provisions
prevail over a conflicting or inconsistent provision of a special
law that governs a specific district:
(1) Sections 36.107-36.108;
(2) Sections 36.159-36.161; and
(3) Subchapter I.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.27, eff.
Sept. 1, 1997.
Sec. 36.053. Quorum.
A majority of the membership of the board constitutes a quorum
for any meeting, and a concurrence of a majority of the entire
membership of the board is sufficient for transacting any
business of the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.054. Officers.
(a) After a district is created and the directors have
qualified, the board shall meet, elect a president, vice
president, secretary, and any other officers or assistant
officers as the board may deem necessary and begin the discharge
of its duties.
(b) After each directors' election, the board shall meet and
elect officers.
(c) The president is the chief executive officer of the
district, presides at all meetings of the board, and shall
execute all documents on behalf of the district. The vice
president shall act as president in case of the absence or
disability of the president. The secretary is responsible for
seeing that all records and books of the district are properly
kept and shall attest the president's signature on all documents.
(d) The board may appoint another director, the general
manager, or any employee as assistant or deputy secretary to
assist the secretary, and any such person shall be entitled to
certify as to the authenticity of any record of the district,
including but not limited to all proceedings relating to bonds,
contracts, or indebtedness of the district.
(e) After any election or appointment of a director, a district
shall notify the executive director within 30 days after the date
of the election or appointment of the name and mailing address of
the director chosen and the date that director's term of office
expires. The executive director shall provide forms to the
district for such purpose.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.055. Sworn Statement, Bond, and Oath of Office.
(a) As soon as practicable after a director is elected or
appointed, that director shall make the sworn statement
prescribed by the constitution for public office.
(b) As soon as practicable after a director has made the sworn
statement, and before beginning to perform the duties of office,
that director shall take the oath of office prescribed by the
constitution for public officers.
(c) Before beginning to perform the duties of office, each
director shall execute a bond for $10,000 payable to the district
and conditioned on the faithful performance of that director's
duties. All bonds of the directors shall be approved by the
board and paid for by the district.
(d) The sworn statement, bond, and oath shall be filed with the
district and retained in its records. A duplicate original of
the sworn statement and the oath shall also be filed with the
secretary of state within 10 days after their execution and need
not be filed before the new director begins to perform the duties
of office.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.056. General Manager.
(a) The board may employ or contract with a person to perform
such services as general manager for the district as the board
may from time to time specify. The board may delegate to the
general manager full authority to manage and operate the affairs
of the district subject only to orders of the board.
(b) The board may delegate to the general manager the authority
to employ all persons necessary for the proper handling of the
business and operation of the district and to determine the
compensation to be paid all employees other than the general
manager.
(c) Except in a district that is composed of the territory of
more than one county, a director may be employed as general
manager of the district. The compensation of a general manager
who also serves as a director shall be established by the other
directors.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.057. Management of District.
(a) The board shall be responsible for the management of all
the affairs of the district. The district shall employ or
contract with all persons, firms, partnerships, corporations, or
other entities, public or private, deemed necessary by the board
for the conduct of the affairs of the district, including, but
not limited to, engineers, attorneys, financial advisors,
operators, bookkeepers, tax assessors and collectors, auditors,
and administrative staff.
(b) The board shall set the compensation and terms for
consultants.
(c) In selecting attorneys, engineers, auditors, financial
advisors, or other professional consultants, the district shall
follow the procedures provided in the Professional Services
Procurement Act, Subchapter A, Chapter 2254, Government Code.
(d) The board shall require an officer, employee, or consultant
who collects, pays, or handles any funds of the district to
furnish good and sufficient bond, payable to the district, in an
amount determined by the board to be sufficient to safeguard the
district. The bond shall be conditioned on the faithful
performance of that person's duties and on accounting for all
funds and property of the district. Such bond shall be signed or
endorsed by a surety company authorized to do business in the
state.
(e) The board may pay the premium on surety bonds required of
officials, employees, or consultants of the district out of any
available funds of the district, including proceeds from the sale
of bonds.
(f) The board may adopt bylaws to govern the affairs of the
district to perform its purposes. The board may, by resolution,
authorize its general manager or other employee to execute
documents on behalf of the district.
(g) The board shall also have the right to purchase all
materials, supplies, equipment, vehicles, and machinery needed by
the district to perform its purposes.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.058. Conflicts of Interest.
A director of a district is subject to the provisions of
Chapter 171, Local Government Code, relating to the regulation of
conflicts of officers of local governments.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.059. General Elections.
(a) All elections shall be generally conducted in accordance
with the Election Code except as otherwise provided for by this
chapter. Write-in candidacies for any district office shall be
governed by Subchapter C, Chapter 146, Election Code.
(b) The directors of the district shall be elected according to
the precinct method as defined by Chapter 12, page 1105, Special
Laws, Acts of the 46th Legislature, Regular Session, 1939. To be
qualified to be elected as a director, a person must be a
registered voter in the precinct that the person represents. If
any part of a municipal corporation is a part of one precinct,
then no part of the municipal corporation shall be included in
another precinct, except that a municipal corporation having a
population of more than 200,000 may be divided between two or
more precincts. In a multicounty district, not more than two of
the five precincts may include the same municipal corporation or
part of the same municipal corporation.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.060. Fees of Office; Reimbursement.
(a) A director is entitled to receive fees of office of not
more than $100 a day for each day the director actually spends
performing the duties of a director. The fees of office may not
exceed $6,000 a year.
(b) Each director is also entitled to receive reimbursement of
actual expenses reasonably and necessarily incurred while
engaging in activities on behalf of the district.
(c) In order to receive fees of office and to receive
reimbursement for expenses, each director shall file with the
district a verified statement showing the number of days actually
spent in the service of the district and a general description of
the duties performed for each day of service.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.061. Policies.
(a) Subject to the law governing the district, the board shall
adopt the following in writing:
(1) a code of ethics for district directors, officers,
employees, and persons who are engaged in handling investments
for the district;
(2) a policy relating to travel expenditures;
(3) a policy relating to district investments that ensures
that:
(A) purchases and sales of investments are initiated by
authorized individuals, conform to investment objectives and
regulations, and are properly documented and approved; and
(B) periodic review is made of district investments to
evaluate investment performance and security;
(4) policies and procedures for selection, monitoring, or
review and evaluation of professional services;
(5) policies that ensure a better use of management
information, including:
(A) budgets for use in planning and controlling cost;
(B) an audit or finance committee of the board; and
(C) uniform reporting requirements that use "Audits of
State and Local Governmental Units" as a guide on audit
working papers and that uses "Governmental Accounting and
Financial Reporting Standards."
(b) The state auditor may audit the financial transactions of
any district if the state auditor determines that the audit is
necessary.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.062. Offices and Meeting Places.
(a) The board shall designate from time to time and maintain
one or more regular offices for conducting the business of the
district and maintaining the records of the district. Such
offices may be located either inside or outside the district's
boundaries as determined in the discretion of the board.
(b) The board shall designate one or more places inside or
outside the district for conducting the meetings of the board.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.063. Notice of Meetings.
Notice of meetings of the board shall be given as set forth in
the Open Meetings Act, Chapter 551, Government Code. Neither
failure to provide notice of a regular meeting nor an
insubstantial defect in notice of any meeting shall affect the
validity of any action taken at the meeting.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.064. Meetings.
(a) The board shall hold regular meetings at least quarterly.
It may hold meetings at other times as required for the business
of the district.
(b) Meetings shall be conducted and notice of meetings shall be
posted in accordance with the Open Meetings Act, Chapter 551,
Government Code. A meeting of a committee of the board, or a
committee composed of representatives of more than one board,
where less than a quorum of any one board is present is not
subject to the provisions of the Open Meetings Act, Chapter 551,
Government Code.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.065. Records.
(a) The board shall keep a complete account of all its meetings
and proceedings and shall preserve its minutes, contracts,
records, notices, accounts, receipts, and other records in a safe
place.
(b) The records of each district are the property of the
district and are subject to Chapter 552, Government Code.
(c) The preservation, storage, destruction, or other
disposition of the records of each district is subject to the
requirements of Chapter 201, Local Government Code, and rules
adopted thereunder.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.066. Suits.
(a) A district may sue and be sued in the courts of this state
in the name of the district by and through its board. All courts
shall take judicial notice of the creation of the district and of
its boundaries.
(b) Any court in the state rendering judgment for debt against
a district may order the board to levy, assess, and collect taxes
or assessments to pay the judgment.
(c) The president or the general manager of any district shall
be the agent of the district on whom process, notice, or demand
required or permitted by law to be served upon a district may be
served.
(d) Except as provided in Subsection (e), no suit may be
instituted in any court of this state contesting:
(1) the validity of the creation and boundaries of a
district;
(2) any bonds or other obligations issued by a district; or
(3) the validity or the authorization of a contract with the
United States by a district.
(e) The matters listed in Subsection (d) may be judicially
inquired into at any time and determined in any suit brought by
the State of Texas through the attorney general. The action
shall be brought on good cause shown, except where otherwise
provided by other provisions of this code or by the Texas
Constitution. It is specifically provided, however, that no such
proceeding shall affect the validity of or security for any bonds
or other obligations theretofore issued by a district if such
bonds or other obligations have been approved by the attorney
general.
(f) A district shall not be required to give bond for appeal,
injunction, or costs in any suit to which it is a party and shall
not be required to deposit more than the amount of any award in
any eminent domain proceeding.
(g) If the district prevails in any suit other than a suit in
which it voluntarily intervenes, it may, in the same action,
recover reasonable fees for attorneys, expert witnesses, and
other costs incurred by the district before the court. The
amount of the attorney's fees shall be fixed by the court.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.067. Contracts.
(a) A district shall contract, and be contracted with, in the
name of the district.
(b) A district may purchase property from any other
governmental entity by negotiated contract without the necessity
of securing appraisals or advertising for bids.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.068. Employee Benefits.
(a) The board may provide for and administer retirement,
disability, and death compensation funds for the employees of the
district.
(b) The board may establish a public retirement system in
accordance with the provisions of Chapter 810, Government Code.
The board may also provide for a deferred compensation plan
described by Section 457 of the Internal Revenue Code of 1986 (26
U.S.C. Section 457).
(c) The board may include hospitalization and medical benefits
to its employees as part of the compensation paid to the officers
and employees and may adopt any plan, rule, or regulation in
connection with it and amend or change the plan, rule, or
regulation as it may determine.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 36.101. Rulemaking Power.
(a) A district may make and enforce rules to provide for
conserving, preserving, protecting, and recharging of the
groundwater or of a groundwater reservoir or its subdivisions in
order to control subsidence or prevent waste of groundwater and
to carry out the powers and duties provided by this chapter.
(b) After notice and hearing, the board shall adopt and enforce
rules to implement this chapter, including rules governing
procedure before the board. Notice in this section shall include
publication of the agenda of the hearing in one or more
newspapers of general circulation in the county or counties in
which the district is located.
(c) The board shall compile its rules and make them available for
use and inspection at the district's principal office.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1994.
Sec. 36.102. Enforcement of Rules.
(a) A district may enforce this chapter and its rules by
injunction, mandatory injunction, or other appropriate remedy in
a court of competent jurisdiction.
(b) The board may set reasonable civil penalties for breach of
any rule of the district that shall not exceed the jurisdiction
of a justice court as provided by Section 27.031, Government
Code.
(c) A penalty under this section is in addition to any other
penalty provided by the law of this state and may be enforced by
complaints filed in the appropriate court of jurisdiction in the
county in which the district's principal office or meeting place
is located.
(d) If the district prevails in any suit to enforce its rules,
it may, in the same action, recover reasonable fees for
attorneys, expert witnesses, and other costs incurred by the
district before the court. The amount of the attorney's fees
shall be fixed by the court.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.103. Improvements and Facilities.
(a) A district may build, acquire, or obtain by any lawful
means any property necessary for the district to carry out its
purpose and the provisions of this chapter.
(b) A district may:
(1) acquire land to erect dams or to drain lakes, draws, and
depressions;
(2) construct dams;
(3) drain lakes, depressions, draws, and creeks;
(4) install pumps and other equipment necessary to recharge
a groundwater reservoir or its subdivision; and
(5) provide necessary facilities for the purchase, sale,
transportation, and distribution of water.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.104. Purchase. Sale, Transportation, and Distribution of Water.
A district may purchase, sell, transport, and distribute
surface water or groundwater for any purpose.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.105. Eminent Domain.
(a) A district may exercise the power of eminent domain to
acquire by condemnation a fee simple or other interest in
property if that property interest is necessary to the exercise
of the authority conferred by this chapter.
(b) The power of eminent domain authorized in this section may
not be used for the condemnation of land for the purpose of
acquiring rights to groundwater, surface water or water rights.
(c) The district must exercise the power of eminent domain in
the manner provided by Chapter 21, Property Code, but the
district is not required to deposit a bond as provided by Section
21.021(a), Property Code.
(d) In a condemnation proceeding brought by a district, the
district is not required to pay in advance or give bond or other
security for costs in the trial court, to give bond for the
issuance of a temporary restraining order or a temporary
injunction, or to give bond for costs or supersedeas on an appeal
or writ of error.
(e) In exercising the power of eminent domain, if the district
requires relocating, raising, lowering, rerouting, changing the
grade, or altering the construction of any railroad, highway,
pipeline, or electric transmission or distribution, telegraph, or
telephone lines, conduits, poles, or facilities, the district
must bear the actual cost of relocating, raising, lowering,
rerouting, changing the grade, or altering the construction to
provide comparable replacement without enhancement of facilities
after deducting the net salvage value derived from the old
facility.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.106. Surveys.
A district may make surveys of the groundwater reservoir or
subdivision and surveys of the facilities for development,
production, transportation, distribution, and use of the water,
in order to determine the quantity of water available for
production and use and to determine the improvements,
development, and recharging needed by a reservoir or its
subdivision.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.107. Research.
A district may carry out any research projects deemed necessary
by the board.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.28, eff.
Sept. 1, 1997.
Sec. 36.1071. Management Plan.
(a) Following notice and hearing, the district shall, in
coordination with surface water management entities on a regional
basis, develop a comprehensive management plan which addresses
the following management goals, as applicable:
(1) providing the most efficient use of groundwater;
(2) controlling and preventing waste of groundwater;
(3) controlling and preventing subsidence;
(4) addressing conjunctive surface water management issues;
and
(5) addressing natural resource issues.
(b) A district management plan, or any amendments to a district
management plan, adopted after the Texas Water Development Board
approval of a regional water plan for the region in which the
district is located shall be consistent with the regional water
plan.
(c) The commission and the Texas Water Development Board shall
provide technical assistance to a district in the development of
the management plan required under Subsection (a) which may
include, if requested by the district, a preliminary review and
comment on the plan prior to final approval by the board. If
such review and comment by the commission is requested, the
commission shall provide comment not later than 30 days from the
date the request is received.
(d) The commission shall provide technical assistance to a
district during its initial operational phase.
(e) In the management plan described under Subsection (a), the
district shall:
(1) identify the performance standards and management
objectives under which the district will operate to achieve the
management goals identified under Subsection (a);
(2) specify, in as much detail as possible, the actions,
procedures, performance, and avoidance that are or may be
necessary to effect the plan, including specifications and
proposed rules;
(3) include estimates of the following:
(A) the existing total usable amount of groundwater in
the district;
(B) the amount of groundwater being used within the
district on an annual basis;
(C) the annual amount of recharge, if any, to the
groundwater resources within the district and how natural or
artificial recharge may be increased; and
(D) the projected water supply and demand for water
within the district; and
(4) address water supply needs in a manner that is not in
conflict with the appropriate approved regional water plan if a
regional water plan has been approved under Section 16.053.
(f) The district shall adopt rules necessary to implement the
management plan.
(g) The board shall adopt amendments to the management plan as
necessary. Amendments to the management plan shall be adopted
after notice and hearing and shall otherwise comply with the
requirements of this section.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Redesignated from 36.107(b) and (c) and amended by Acts
1997, 75th Leg., ch. 1010, Sec. 4.28, eff. Sept. 1, 1997.
Sec. 36.1072. Texas Water Development Board Review and Certification of
Management Plan.
(a) A district shall, not later than two years after the
creation of the district or, if the district required
confirmation, after the election confirming the district's
creation, submit the management plan required under Section
36.1071 to the executive administrator for review and
certification .
(b) Within 60 days of receipt of a management plan adopted
under Section 36.1071, the executive administrator shall certify
a management plan if the plan is administratively complete. A
management plan is administratively complete when it contains the
information required to be submitted under Section 36.1071. The
executive administrator may determine that conditions justify
waiver of the requirements under Section 36.1071(e)(4).
(c) Once a determination that a management plan is
administratively complete has been made:
(1) the executive administrator may not revoke the
determination that a management plan is administratively
complete;
(2) the executive administrator may request additional
information from the district if the information is necessary
to clarify, modify, or supplement previously submitted
material; and
(3) a request for additional information does not render the
management plan incomplete.
(d) A management plan takes effect on certification by the
executive administrator or, if appealed, on certification by the
Texas Water Development Board.
(e) The board may review the plan annually and must review and
readopt the plan with or without revisions at least once every
five years.
(f) If the executive administrator does not certify the
management plan, the executive administrator shall provide to the
district, in writing, the reasons for the action. Not later than
the 180th day after the date a district receives notice that its
management plan has not been certified, the district may submit a
revised management plan for review and certification. The
executive administrator's decision may be appealed to the Texas
Water Development Board. The decision of the Texas Water
Development Board on whether to certify the management plan may
not be appealed. The commission shall not take enforcement
action against a district under Subchapter I until the later of
the expiration of the 180-day period or the date the Texas Water
Development Board has taken final action withholding
certification of a revised management plan.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.28, eff. Sept. 1,
1997.
Sec. 36.1073. Amendment to Management Plan.
Any amendment to the management plan shall be submitted to the
executive administrator within 60 days following adoption of the
amendment by the district's board. The executive administrator
shall review and certify any amendment which substantially
affects the management plan in accordance with the procedures
established under Section 36.1072.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.28, eff. Sept. 1,
1997.
Sec. 36.108. Joint Planning in Management Area.
(a) If two or more districts are located within the boundaries
of the same management area, each district shall prepare a
comprehensive management plan as required by Section 36.1071
covering that district's respective territory. On completion of
the plan, each district shall forward a copy of the new revised
management plan to the other districts in the management area.
(b) The board of directors of each district in the management
area may, by resolution, call a joint meeting with the boards of
directors of the other districts in the management area to review
the management plans and accomplishments for the management area.
The boards shall meet to consider the plans individually and
shall compare them to other management plans then in force in the
management area. In reviewing the management plans, the boards
shall consider:
(1) the goals of each management plan and its impact on
planning throughout the management area;
(2) the effectiveness of the measures established by each
management plan for conserving and protecting groundwater and
preventing waste, and the effectiveness of these measures in
the management area generally; and
(3) any other matters that the boards consider relevant to
the protection and conservation of groundwater and the
prevention of waste in the management area.
(c) A joint meeting of the boards of directors must be held in
accordance with the Open Meetings Act, Chapter 551, Government
Code. Notice of the meeting shall be given in accordance with
the requirements for notice of district board of directors
meetings under that Act. In addition, notice of the meeting
shall be published not later than the 30th day before the date of
the scheduled meeting in a newspaper with general circulation in
each county in the management area.
(d) A district in the management area may file a petition with
the commission requesting an inquiry if the petitioner district
believes that:
(1) another district in the management area has failed to
adopt rules;
(2) the groundwater in the management area is not adequately
protected by the rules adopted by another district; or
(3) the groundwater in the management area is not adequately
protected due to the failure of another district to enforce
substantial compliance with its rules.
(e) Not later than the 90th day after the date the petition is
filed, the commission shall review the petition and either:
(1) dismiss it if it finds that the evidence is not adequate
to show that any of the conditions alleged in the petition
exist; or
(2) select a review panel as provided in Subsection (f).
(f) The commission may appoint a review panel consisting of a
chairman and four other members. A director or general manager
of a district located outside the management area that is the
subject of the petition may be appointed to the review panel.
The commission may not appoint more than two members of the
review panel from any one district. The commission also shall
appoint a disinterested person to serve as a nonvoting recording
secretary for the review panel. The recording secretary may be
an employee of the commission. The recording secretary shall
record and document the proceedings of the panel.
(g) Not later than the 120th day after appointment, the review
panel shall review the petition and any evidence relevant to the
petition and, in a public meeting, prepare a report to the
commission. The commission may direct the review panel to
conduct public hearings at a location in the management area to
take evidence on the petition. The review panel may attempt to
negotiate a settlement or resolve the dispute by any lawful
means.
(h) In its report, the review panel shall include:
(1) a summary of all evidence taken in any hearing on the
petition;
(2) a list of findings and recommended actions appropriate
for the commission to take and the reasons it finds those
actions appropriate; and
(3) any other information the panel considers appropriate.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.29, eff.
Sept. 1, 1997.
Sec. 36.109. Collection of Information.
A district may collect any information the board deems
necessary, including information regarding the use of
groundwater, water conservation, and the practicability of
recharging a groundwater reservoir.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.110. Publication of Plans and Information.
A district may publish its plans and the information it
develops, bring them to the attention of the users of groundwater
in the district, and encourage the users to adopt and use them.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.111. Records and Reports.
The district shall require that records be kept and reports be
made of the drilling, equipping, and completing of water wells
and of the production and use of groundwater.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995 .
Sec. 36.112. Drillers' Logs.
A district shall require that accurate drillers' logs be kept
of water wells and that copies of drillers' logs and electric
logs be filed with the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.113. Permits for Wells.
(a) A district shall require permits for the drilling,
equipping, or completing of wells or for substantially altering
the size of wells or well pumps.
(b) A district shall require that an application for a permit
be in writing and sworn to.
(c) A district may require that the following be included in
the permit application:
(1) the name and mailing address of the applicant and the
owner of the land on which the well will be located;
(2) if the applicant is other than the owner of the
property, documentation establishing the applicable authority
to construct and operate a well for the proposed use;
(3) a statement of the nature and purpose of the proposed
use and the amount of water to be used for each purpose;
(4) a water conservation plan or a declaration that the
applicant will comply with the district's management plan;
(5) the location of each well and the estimated rate at
which water will be withdrawn;
(6) a water well closure plan or a declaration that the
applicant will comply with well plugging guidelines and report
closure to the commission; and
(7) a drought contingency plan.
(d) Before granting or denying a permit, the district shall
consider whether:
(1) the application conforms to the requirements prescribed
by this chapter and is accompanied by the prescribed fees;
(2) the proposed use of water unreasonably affects existing
groundwater and surface water resources;
(3) the proposed use of water is dedicated to any beneficial
use;
(4) the proposed use of water is consistent with the
district's certified water management plan;
(5) the applicant has agreed to avoid waste and achieve
water conservation; and
(6) the applicant has agreed that reasonable diligence will
be used to protect groundwater quality and that the applicant
will follow well plugging guidelines at the time of well
closure.
(e) Permits may be issued subject to the rules promulgated by
the district and subject to terms and provisions with reference
to the drilling, equipping, completion, or alteration of wells or
pumps that may be necessary to prevent waste and achieve water
conservation, minimize as far as practicable the drawdown of the
water table or the reduction of artesian pressure, lessen
interference between wells, or control and prevent subsidence.
(f) A district may require that changes in the withdrawal and
use of groundwater under a permit not be made without the prior
approval of a permit amendment issued by the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.30, eff.
Sept. 1, 1997.
Sec. 36.1131. Elements of Permit.
(a) A permit issued by the district to the applicant under
Section 36.113 shall state the terms and provisions prescribed by
the district.
(b) The permit may include:
(1) the name and address of the person to whom the permit is
issued;
(2) the location of the well;
(3) the date the permit is to expire if no well is drilled;
(4) a statement of the purpose for which the well is to be
used;
(5) a requirement that the water withdrawn under the permit
be put to beneficial use at all times;
(6) the location of the use of the water from the well;
(7) a water well closure plan or a declaration that the
applicant will comply with well plugging guidelines and report
closure to the commission;
(8) the conditions and restrictions, if any, placed on the
rate and amount of withdrawal;
(9) any conservation-oriented methods of drilling and
operating prescribed by the district;
(10) a drought contingency plan prescribed by the district;
and
(11) other terms and conditions as provided by Section
36.113.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.31, eff. Sept. 1,
1997.
Sec. 36.114. Permit; Application and Hearing.
The district shall promptly consider and pass on each
application for a permit. If, within 20 days after the date it
is submitted, an application has not been passed on or set for a
hearing on a specific date, the applicant may petition the
district court of the county where the land is located for a writ
of mandamus to compel the district to act on the application or
set a date for a hearing on the application. A hearing shall be
held within 35 days after the setting of the date and the
district shall act on the application within 35 days after the
date of the hearing.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.115. Drilling or Altering Well Without Permit.
(a) No person, firm, or corporation may drill a well without
first obtaining a permit from the district.
(b) No person, firm, or corporation may alter the size of a
well or well pump such that it would bring that well under the
jurisdiction of the district without first obtaining a permit
from the district.
(c) No person, firm, or corporation may operate a well without
first obtaining a permit from the district.
(d) A violation occurs on the first day the drilling,
alteration, or operation begins and continues each day thereafter
until the appropriate permits are approved.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.116. Regulation of Spacing and Production.
In order to minimize as far as practicable the drawdown of the
water table or the reduction of artesian pressure, to control
subsidence, or to prevent waste, a district may provide for the
spacing of water wells and may regulate the production of wells.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.117. Exemptions; Exception; Limitations.
(a) A district may exempt wells from the requirements to obtain
a drilling permit, an operating permit, or any other permit
required by this chapter or the district's rules. A district may
not require a permit for:
(1) drilling or producing from a well either drilled,
completed, or equipped so that it is incapable of producing
more than 25,000 gallons of groundwater a day;
(2) the drilling or alteration of the size of a well or to
restrict the production of a well if the water produced or to
be produced from the well is used or to be used to supply the
domestic needs of 10 or fewer households and a person who is a
member of each household is either the owner of the well, a
person related to the owner or a member of the owner's
household within the second degree by consanguinity, or an
employee of the owner;
(3) the drilling or alteration of the size of a well or to
restrict the production from the well if the water produced or
to be produced from the well is used or to be used to provide
water for feeding livestock and poultry connected with farming,
ranching, or dairy enterprises;
(4) water wells to supply water for hydrocarbon production
activities, regardless of whether those wells are producing,
that are associated with any well permitted by the Railroad
Commission of Texas drilled before September 1, 1985; or
(5) jet wells used for domestic needs.
(b) The board shall adopt rules determining the applicability
of Subsection (a)(3) to facilities used primarily for feeding
livestock.
(c) The district shall not deny the owner of a tract of land,
or his lessee, who has no well equipped to produce more than
25,000 gallons a day on the tract, either a permit to drill a
well on his land or the privilege to produce groundwater from his
land, subject to the rules of the district.
(d) A district may not restrict the production of any well
equipped to produce 25,000 gallons or less a day.
(e) Nothing in this chapter applies to wells drilled for oil,
gas, sulphur, uranium, or brine, or for core tests, or for
injection of gas, saltwater, or other fluid, or for any other
purpose, under permits issued by the Railroad Commission of
Texas. A district may not require a drilling permit for a well
to supply water for drilling any wells permitted by the Railroad
Commission of Texas. Any well that ceases to be used for these
purposes and is then used as an ordinary water well is subject to
the rules of the district. Water wells drilled after September
1, 1997, to supply water for hydrocarbon production activities
must meet the spacing requirements of the district unless no
space is available within 300 feet of the production well or the
central injection station.
(f) Water wells exempted under this section shall be equipped
and maintained so as to conform to the district's rules requiring
installation of casing, pipe, and fittings to prevent the escape
of groundwater from a groundwater reservoir to any reservoir not
containing groundwater and to prevent the pollution or harmful
alteration of the character of the water in any groundwater
reservoir.
(g) A district shall require water wells exempted under this
section to be registered with the district before drilling. All
exempt water wells shall be equipped and maintained so as to
conform to the district's rules requiring installation of casing,
pipe, and fittings to prevent the escape of groundwater from a
groundwater reservoir to any reservoir not containing groundwater
and to prevent the pollution or harmful alteration of the
character of the water in any groundwater reservoir.
(h) A well to supply water for a subdivision of land for which
a plat approval is required by law is not exempted under this
section.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.32, eff.
Sept. 1, 1997.
Sec. 36.118. Open or Uncovered Wells.
(a) A district may require the owner or lessee of land on which
an open or uncovered well is located to keep the well permanently
closed or capped with a covering capable of sustaining weight of
at least 400 pounds, except when the well is in actual use.
(b) As used in this section, "open or uncovered well" means an
artificial excavation dug or drilled for the purpose of exploring
for or producing water from the groundwater reservoir and is not
capped or covered as required by this chapter.
(c) If the owner or lessee fails or refuses to close or cap the
well in compliance with this chapter in accordance with district
rules, any person, firm, or corporation employed by the district
may go on the land and close or cap the well safely and securely.
(d) Reasonable expenses incurred by the district in closing or
capping a well constitute a lien on the land on which the well is
located.
(e) The lien arises and attaches upon recordation in the deed
records of the county where the well is located an affidavit,
executed by any person conversant with the facts, stating the
following:
(1) the existence of the well;
(2) the legal description of the property on which the well
is located;
(3) the approximate location of the well on the property;
(4) the failure or refusal of the owner or lessee, after
notification, to close the well within 10 days after the
notification;
(5) the closing of the well by the district, or by an
authorized agent, representative, or employee of the district;
and
(6) the expense incurred by the district in closing the
well.
(f) Nothing in this section affects the enforcement of
Subchapter A, Chapter 756, Health and Safety Code.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.119. Illegal Drilling and Operation of Well; Citizen Suit.
(a) Drilling a well without a required permit or operating a
well at a higher rate of production than the rate approved for
the well is declared to be illegal, wasteful per se, and a
nuisance.
(b) A person who has an estate in land adjacent to the land on
which the well is located, or a part that lies within one-half
mile of the well, may sue in a court of competent jurisdiction to
restrain or enjoin the illegal drilling or operation, or both.
The suit may be brought with or without the joinder of the
district.
(c) The aggrieved party may also sue for damages for injuries
suffered by reason of the illegal operation and for other relief
to which they may be entitled. In a suit for damages, the
existence or operation of a well in violation of the rules of the
district is prima facie evidence of illegal drainage.
(d) The suit may be brought in the county where the illegal
well is located or in the county where all or part of the
affected land is located.
(e) The remedies provided by this section are cumulative of
other remedies available to the individual or the district.
(f) A suit brought under this section shall be advanced for
trial and determined as expeditiously as possible. The court
shall not grant a postponement or continuance, including a first
motion, except for reasons considered imperative by the court.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.120. Information.
On request of the executive director or the executive
administrator, the district shall make available information that
it acquires concerning the groundwater resources within its
jurisdiction. The district shall also provide information to the
commission and Texas Water Development Board concerning its plans
and activities in conserving and protecting groundwater
resources. On request of a district, the executive director and
the executive administrator shall provide information they
acquire concerning the groundwater resources within the
district's jurisdiction.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.121. Limitation on Rulemaking Power of Districts Over Wells in
Certain Counties.
Except as provided by Section 36.117, a district that is
created under this chapter on or after September 1, 1991, shall
exempt from regulation under this chapter a well and any water
produced or to be produced by a well that is located in a county
that has a population of 14,000 or less if the water is to be
used solely to supply a municipality that has a population of
115,000 or less and the rights to the water produced from the
well are owned by a political subdivision that is not a
municipality, or by a municipality that has a population of
93,000 or less, and that purchased, owned, or held rights to the
water before the date on which the district was created,
regardless of the date the well is drilled or the water is
produced. The district may not prohibit the political
subdivision or municipality from transporting produced water
inside or outside the district's boundaries.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.122. Transfer of Groundwater Out of District.
(a) A district may promulgate rules requiring a person to
obtain a permit from the district for the transfer of groundwater
out of the district to:
(1) increase, on or after March 2, 1997, the amount of
groundwater to be transferred under a continuing arrangement in
effect before that date; or
(2) transfer groundwater out of the district on or after
March 2, 1997, under a new arrangement.
(b) The district may impose a reasonable fee for processing an
application for a permit under this section.
(c) Before issuing a permit under this section, the district
must give notice of the application and hold a public hearing.
(d) In determining whether to issue a permit under this
section, the district shall consider:
(1) the availability of water in the district and in the
proposed receiving area during the period for which the water
supply is requested;
(2) the availability of feasible and practicable alternative
supplies to the applicant;
(3) the amount and purposes of use in the proposed receiving
area for which water is needed;
(4) the projected effect of the proposed transfer on aquifer
conditions, depletion, subsidence, or effects on existing
permit holders or other groundwater users within the district;
and
(5) the approved regional water plan and certified district
management plan.
(e) The district may limit a permit issued under this section
if conditions in Subsection (d) warrant the limitation.
(f) In addition to conditions provided by Section 36.1131, the
permit shall specify:
(1) the amount of water that may be transferred out of the
district; and
(2) the period for which the water may be transferred.
(g) A district may not prohibit the export of groundwater if
the purchase was in effect on or before June 1, 1997.
(h) This section applies only to a transfer of water that is
initiated or increased after the effective date of this section.
(i) A district shall adopt rules as necessary to implement this
section.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.33, eff. Sept. 1,
1997.
SUBCHAPTER E. DISTRICT FINANCES
Sec. 36.151. Expenditures.
(a) A district's money may be disbursed only by check, draft,
order, or other instrument.
(b) Disbursements shall be signed by at least two directors,
except the board may by resolution allow certain employees of the
district, or a combination of employees and directors, to sign
disbursements on behalf of the board.
(c) The board may by resolution allow disbursements to be
transferred by federal reserve wire system to accounts in the
name of the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.152. Fiscal Year.
(a) The district shall be operated on the basis of a fiscal
year established by the board.
(b) The fiscal year may not be changed during a period in which
revenue bonds of the district are outstanding or more than once
in a 24-month period.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.153. Annual Audit.
(a) Annually, the board shall have an audit made of the
financial condition of the district.
(b) The annual audit and other district records must be open to
inspection during regular business hours at the principal office
of the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.154. Annual Budget.
(a) The board shall prepare and approve an annual budget.
(b) The budget shall contain a complete financial statement,
including a statement of:
(1) the outstanding obligations of the district;
(2) the amount of cash on hand to the credit of each fund of
the district;
(3) the amount of money received by the district from all
sources during the previous year;
(4) the amount of money available to the district from all
sources during the ensuing year;
(5) the amount of the balances expected at the end of the
year in which the budget is being prepared;
(6) the estimated amount of revenues and balances available
to cover the proposal budget; and
(7) the estimated tax rate or fee revenues that will be
required.
(c) The annual budget may be amended on the board's approval.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.155. Depository.
(a) The board shall name one or more banks to serve as
depository for the district funds.
(b) District funds, other than those transmitted to a bank for
payment of bonds issued by the district, shall be deposited as
received with the depository bank and shall remain on deposit.
This subsection does not limit the power of the board to place a
portion of the district's funds on time deposit or to purchase
certificates of deposit.
(c) To the extent that funds in the depository are not insured
by the Federal Deposit Insurance Corporation, they shall be
secured in the manner provided by law for the security of funds
by the Public Funds Collateral Act, Chapter 2257, Government
Code.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.156. Investments.
(a) Funds of the district may be invested and reinvested in
accordance with the provisions of the Public Funds Investment
Act, Chapter 2256, Government Code.
(b) The board, by resolution, may provide that an authorized
representative of the district may invest and reinvest the funds
of the district and provide for money to be withdrawn from the
appropriate accounts of the district for investments on such
terms as the board considers advisable.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.157. Repayment of Organizational Expenses.
(a) A district may pay all costs and expenses necessarily
incurred in the creation and organization of a district,
including legal fees and other incidental expenses, and may
reimburse any person for money advanced for these purposes.
(b) Payments may be made from money obtained from the sale of
bonds first issued by the district or out of maintenance taxes or
other revenues of the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.158. Grants.
A district may make or accept grants, gratuities, advances, or
loans in any form to or from any source approved by the board,
including any governmental entity, and may enter into contracts,
agreements, and covenants in connection with grants, gratuities,
advances, or loans that the board considers appropriate.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.159. Groundwater District Management Plan Funds.
The Texas Water Development Board may allocate funds from the
water assistance fund to a district to conduct initial data
collections under this chapter, to develop and implement a
long-term management plan under Section 36.1071, and to
participate in regional water plans.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.34, eff. Sept. 1,
1997.
Sec. 36.160. Funds.
The Texas Water Development Board, the commission, the Parks
and Wildlife Department, the Texas Agricultural Extension
Service, and institutions of higher education may allocate funds
to carry out the objectives of this chapter and Chapter 35, which
include but are not limited to:
(1) conducting initial and subsequent studies and surveys
under Sections 36.106, 36.107, and 36.109;
(2) providing appropriate education in affected areas
identified in Section 35.007 relating to the problems and
issues concerning water management that may arise;
(3) processing priority groundwater management area
evaluations under this chapter and Chapter 35;
(4) providing technical and administrative assistance to
newly created districts under this chapter and Chapter 35;
(5) covering the costs of newspaper notices required under
Sections 35.009 and 36.014 and failed elections in accordance
with Sections 35.014(c), 36.017(h), and 36.019; and
(6) providing for assistance from the Parks and Wildlife
Department to the Texas Water Development Board or a district
for the purpose of assessing fish and wildlife resource habitat
needs as they may apply to overall management plan goals and
objectives of the district.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.34, eff. Sept. 1,
1997.
Sec. 36.161. Eligibility for Funding.
(a) The Texas Water Development Board may provide funds under
Sections 36.159 and 36.160, Chapters 15, 16, and 17, and
Subchapter L of this chapter to a district if the Texas Water
Development Board determines that such funding will allow the
district to comply or continue to comply with provisions of this
chapter.
(b) The Texas Water Development Board may, after notice and
hearing, discontinue funding described in Subsection (a) if the
Texas Water Development Board finds that the district is not
using the funds to comply with the provisions of this chapter.
(c) The Texas Water Development Board, when considering a
discontinuance under Subsection (b), shall give written notice of
the hearing to the district at least 20 days before the date set
for the hearing. The hearing shall be conducted in accordance
with Chapter 2001, Government Code, or the rules of the
respective agency. General notice of the hearing shall be given
in accordance with the rules of the agency.
(d) The Texas Water Development Board may delegate to the State
Office of Administrative Hearings the responsibility to conduct a
hearing under this section.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.34, eff. Sept. 1,
1997.
SUBCHAPTER F. BONDS AND NOTES
Sec. 36.171. Issuance of Bonds and Notes.
(a) The board may issue and sell bonds and notes in the name of
the district for any lawful purpose of the district. A district
may not issue bonds unless the commission determines that the
project to be financed by the bonds is feasible and issues an
order approving the issuance of the bonds. This section does not
apply to refunding bonds.
(b) A district may submit to the commission a written application
for investigation of feasibility. An engineer's report
describing the project, including the data, profiles, maps,
plans, and specifications prepared in connection with the report,
must be submitted with the application.
(c) The executive director shall examine the application and the
report and shall inspect the project area. The district shall,
on request, supply the executive director with additional data
and information necessary for an investigation of the
application, the engineer's report, and the project.
(d) The executive director shall prepare a written report on the
project and include suggestions, if any, for changes or
improvements in the project. The executive director shall retain
a copy of the report and send a copy of the report to both the
commission and the district.
(e) The commission shall consider the application, the engineer's
report, the executive director's report, and any other evidence
allowed by commission rule to be considered in determining the
feasibility of the project.
(f) The commission shall determine whether the project to be
financed by the bonds is feasible and issue an order either
approving or disapproving, as appropriate, the issuance of the
bonds. The commission shall retain a copy of the order and send
a copy of the order to the district.
(g) Notwithstanding any provision of this code to the contrary,
the commission may approve the issuance of bonds of a district
without the submission of plans and specifications of the
improvements to be financed with the bonds. The commission may
condition the approval on any terms or conditions considered
appropriate by the commission.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.172. Manner of Repayment of Bonds and Notes.
The board may provide for the payment of principal of and
interest on the bonds and notes in any one of the following
manners:
(1) from the levy and collection of ad valorem taxes on
taxable property within the district;
(2) from fees;
(3) by pledging all or any part of the designated revenues
from the ownership or operation of the district's works,
improvements, and facilities and from the sale, transportation,
and distribution of water; or
(4) from any combination of these sources.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.173. Additional Security for Bonds and Notes.
(a) The bonds and notes may be additionally secured by a deed
of trust or mortgage lien on part or all of the physical
properties of the district and rights appurtenant to those
properties, vesting in the trustee power to sell the properties
for payment of the indebtedness, power to operate the properties,
and all other powers necessary for the further security of the
bonds and notes.
(b) The trust indenture, regardless of the existence of the
deed trust or mortgage lien on the properties, may contain
provisions established by the board for the security of the bonds
and notes and the preservation of the trust estate, may make
provisions for amendment or modification, and may make provisions
for investment of funds of the district.
(c) A purchaser under a sale under the deed trust or mortgage
lien shall be absolute owner of the properties and rights
purchased and may maintain and operate them.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.174. Form of Bonds or Notes.
(a) A district may issue its bonds or notes in various series
or issues.
(b) Bonds or notes may mature serially or otherwise not more
than 50 years from their date and shall bear interest at any rate
permitted by the constitution and laws of this state.
(c) A district's bonds, notes, and interest coupons, if any,
are investment securities under the terms of Chapter 8, Business
& Commerce Code, and may be issued registrable as to principal or
as to both principal and interest and may be made redeemable
before maturity, at the option of the district, or may contain a
mandatory redemption provision.
(d) A district's bonds and notes may be issued in the form,
denominations, and manner and under the terms, conditions, and
details, and shall be signed and executed as provided by the
board in the resolution or order authorizing their issuance.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.175. Provisions of Bonds and Notes.
(a) In the orders or resolutions authorizing the issuance of
bonds or notes, including refunding bonds, the board may provide
for the flow of funds, the establishment and maintenance of the
interest and sinking fund, the reserve fund, and other funds.
The board may make additional covenants with respect to bonds or
notes, pledged revenues, and the operation and maintenance of
those works, improvements, and facilities, of which the revenue
is pledged.
(b) The orders or resolutions of the board authorizing the
issuance of bonds or notes may also prohibit the further issuance
of bonds, notes, or other obligations payable from the pledged
revenue or may reserve the right to issue additional bonds or
notes to be secured by a pledge of and payable from the revenue
on a parity with or subordinate to the lien and pledge in support
of the bonds or notes being issued.
(c) The orders or resolutions of the board issuing bonds or
notes may contain other provisions and covenants as the board may
determine.
(d) The board may adopt and have executed any other proceeding
or instruments necessary and convenient in the issuance of bonds
or notes.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.176. Refunding Bonds.
(a) A district may issue bonds to refund all or any part of its
outstanding bonds or notes, including matured but unpaid interest
coupons.
(b) Refunding bonds shall mature serially or otherwise not more
than 50 years from their date and shall bear interest at any rate
or rates permitted by the constitution and laws of the state.
(c) Refunding bonds may be payable from the same source as the
bonds or notes being refunded or from other additional sources.
(d) The refunding bonds must be approved by the attorney
general as in the case of other bonds or notes and shall be
registered by the comptroller on the surrender and cancellation
of the bonds or notes being refunded.
(e) The orders or resolutions authorizing the issuance of the
refunding bonds may provide that they be sold and the proceeds
deposited in the place or places at which the bonds or notes
being refunded are payable, in which case the refunding bonds may
be issued before the cancellation of the bonds or notes being
refunded. If refunding bonds are issued before cancellation of
the other bonds or notes, an amount sufficient to pay the
principal of and interest on the bonds or notes being refunded to
their maturity dates, or to their option dates if the bonds or
notes have been duly called for payment prior to maturity
according to their terms, shall be deposited in the place or
places at which the bonds or notes being refunded are payable.
The comptroller shall register the refunding bonds without the
surrender and cancellation of bonds or notes being refunded.
(f) A refunding may be accomplished in one or in several
installment deliveries. Refunding bonds and their interest
coupons are investment securities under Chapter 8, Business &
Commerce Code.
(g) In lieu of the method set forth in Subsections (a)-(f), a
district may refund bonds, notes, or other obligations as
provided by the general laws of the state.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.177. Bonds and Notes as Investments.
District bonds and notes are legal and authorized investments
for:
(1) banks;
(2) savings banks;
(3) trust companies;
(4) savings and loan associations;
(5) insurance companies;
(6) fiduciaries;
(7) trustees;
(8) guardians; and
(9) sinking funds of cities, counties, school districts, and
other political subdivisions of the state and other public
funds of the state and its agencies, including the permanent
school fund.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.178. Bonds and Notes as Security for Deposits.
District bonds and notes are eligible to secure deposits of
public funds of the state and cities, counties, school districts,
and other political subdivisions of the state. The bonds or
notes are lawful and sufficient security for deposits to the
extent of their value when accompanied by all unmatured coupons.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.179. Tax Status of Bonds and Notes.
Since a district governed by this chapter is a public entity
performing an essential public function, bonds and notes issued
by the district, any transaction relating to the bonds and notes,
and profits made in the sale of the bonds and notes, are free
from taxation by the state or by any city, county, special
district, or other political subdivision of the state.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.180. Election.
(a) Bonds or notes secured in whole or in part by taxes may not
be issued by the district until authorized by a majority vote of
the qualified voters of the district at an election called for
that purpose.
(b) The board may order an election, and the order calling the
election shall state the nature and the date of the election, the
hours during which the polls will be open, the location of the
polling places, the amount of bonds or notes to be authorized,
and the maximum maturity of the bonds or notes.
(c) At an election to authorize bonds or notes payable wholly
from ad valorem taxes, the ballots must be printed to provide for
voting for or against the proposition: "The issuance of (bonds
or notes) and the levy of taxes for payment of the (bonds or
notes)." At any election to authorize bonds or notes payable
from both ad valorem taxes and revenues, the ballots must be
printed to provide for voting for or against: "The issuance of
(bonds or notes) and the pledge of net revenues and the levy of
ad valorem taxes adequate to provide for the payment of the
(bonds or notes)."
(d) The board shall canvass the returns and declare the results
of the election. If a majority of the votes cast at the election
favor the issuance of the bonds or notes, the bonds or notes may
be issued by the board, but if a majority of the votes cast at
the election do not favor issuance of the bonds or notes, the
bonds or notes may not be issued.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.181. Approval by Attorney General; Registration by Comptroller.
(a) Bonds and notes issued by a district must be submitted to
the attorney general for examination.
(b) If the attorney general finds that the bonds or notes have
been authorized in accordance with law, the attorney general
shall approve them, and they shall be registered by the
comptroller.
(c) After the approval and registration of bonds or notes, the
bonds or notes are incontestable in any court or other forum, for
any reason, and are valid and binding obligations in accordance
with their terms for all purposes.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
SUBCHAPTER G. DISTRICT REVENUES
Sec. 36.201. Levy of Taxes.
(a) The board may annually levy taxes to pay the bonds issued by
the district that are payable in whole or in part by taxes.
(b) The board may annually levy taxes to pay the maintenance and
operating expenses of the district at a rate not to exceed 50
cents on each $100 of assessed valuation.
(c) The board may not levy a tax to pay the maintenance and
operating expenses of the district under this section until the
tax is approved by a majority of the electors voting at an
election in the district held for that purpose. The district
may:
(1) hold an election for approval of the tax at the same time and
in conjunction with an election to authorize bonds, following the
procedures applicable to a bond election; or
(2) hold a separate election for approval of the tax in
accordance with Subsection (d).
(d) An order calling a separate election for approval of a tax
under this section must be issued at least 15 days before the
date of the election, and the election notice must be published
at least twice in a newspaper of general circulation in the
district. The first publication of the notice must be at least
14 days before the date of the election.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.202. Board Authority.
(a) The board may levy taxes for the entire year in which the
district is created.
(b) If territory is added to or annexed by the district, the
board may levy taxes in the new territory for the entire year in
which the territory is added or annexed.
(c) The board shall levy taxes on all property in the district
subject to district taxation.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.203. Tax Rate.
In setting the tax rate, the board shall take into
consideration the income of the district from sources other than
taxation. On determination of the amount of tax required to be
levied, the board shall make the levy and certify it to the tax
assessor-collector.
Added by Acts 1995, 74th Leg., ch. 933, Secs. 2, eff. Sept. 1,
1995.
Sec. 36.204. Tax Appraisal, Assessment and Collection.
(a) The Tax Code governs the appraisal, assessment, and
collection of district taxes.
(b) The board may provide for the appointment of a tax
assessor-collector for the district or may contract for the
assessment and collection of taxes as provided by the Tax Code.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.205. Authority to Set Fees.
(a) A district may set fees for administrative acts of the
district, such as filing applications. Fees set by a district
may not unreasonably exceed the cost to the district of
performing the administrative function for which the fee is
charged.
(b) A district shall set and collect fees for all services
provided outside the boundaries of the district.
(c) Fees based on the amount of water to be withdrawn from a
well shall not exceed:
(1) one dollar per acre foot for water used for the purpose
of irrigating agricultural crops; or
(2) 17 cents per thousand gallons for water used for any
other purpose.
(d) A district affected by Subsection (c)(2) that also may
assess a water use fee against a specific municipality shall
assess an amount not to exceed 60 percent of the total funding of
the district received from water use fees assessed against that
municipality and other nonexempt users in the district. This
subsection shall take precedence over all prior enactments.
(e) Subsection (c) does not apply to the following districts:
(1) the Edwards Aquifer Authority;
(2) the Fort Bend Subsidence District; or
(3) the Harris-Galveston Coastal Subsidence District.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.206. District Fees.
(a) A temporary board may set user fees to pay for the creation
and initial operation of a district, until such time as the
district creation has been confirmed and a permanent board has
been elected by a majority vote of the qualified voters voting in
the district in an election called for those purposes.
(b) The rate of fees set for crop or livestock production or
other agricultural uses shall be no more than 20 percent of the
rate applied to municipal uses.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.35, eff. Sept. 1,
1997.
Sec. 36.207. Use of Permit Fees Authorized by Special Law.
A district may use funds obtained from permit fees collected
pursuant to the special law governing the district for any
purpose consistent with the district's certified water management
plan including, without limitation, making grants, loans, or
contractual payments to achieve, facilitate, or expedite
reductions in groundwater pumping or the development or
distribution of alternative water supplies.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.35, eff. Sept. 1,
1997.
SUBCHAPTER H. JUDICIAL REVIEW
Sec. 36.251. Suit Against District.
A person, firm, corporation, or association of persons affected
by and dissatisfied with any provision or with any rule or order
made by a district is entitled to file a suit against the
district or its directors to challenge the validity of the law,
rule, or order. The suit shall be filed in a court of competent
jurisdiction in any county in which the district or any part of
the district is located. The suit may only be filed after all
administrative appeals to the district are final.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.252. Suit to be Expedited.
A suit brought under this subchapter shall be advanced for
trial and determined as expeditiously as possible. No
postponement or continuance shall be granted except for reasons
considered imperative by the court.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.253. Trial of Suit.
The burden of proof is on the petitioner, and the challenged
law, rule, order, or act shall be deemed prima facie valid. The
review on appeal is governed by the substantial evidence rule as
defined by Section 2001.174, Government Code.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.254. Subchapter Cumulative.
The provisions of this subchapter do not affect other legal or
equitable remedies that may be available.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
SUBCHAPTER I. PERFORMANCE REVIEW AND DISSOLUTION
Sec. 36.301. Failure to Submit a Management Plan.
If a board fails to submit a management plan or to receive
certification of its management plan under Section 36.1072 or
fails to submit or receive certification of an amendment to the
management plan under Section 36.1073, the commission shall take
appropriate action under Section 36.303.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.36, eff. Sept. 1,
1997.
Sec. 36.302. Legislative Audit Review; Determination of Whether District is
Operational.
(a) A district is subject to review by the state auditor under
the direction of the legislative audit committee pursuant to
Chapter 321, Government Code.
(b) The commission, the Texas Water Development Board, and the
Parks and Wildlife Department shall provide technical assistance
to the state auditor's office for the review.
(c) The state auditor shall make a determination of whether a
district is actively engaged in achieving the objectives of the
district's management plan based on an audit of the district's
performance under the plan.
(d) The state auditor shall conduct such audits following the
first anniversary of the initial certification of the plan by the
Texas Water Development Board under Section 36.1072 and following
the end of every five-year period thereafter.
(e) The state auditor shall report findings of the review to
the legislative audit committee and to the commission.
(f) If it is determined under Subsection (c) that the district
is not operational, the commission shall take appropriate action
under Section 36.303.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.36, eff. Sept. 1,
1997.
Sec. 36.303. Action by Commission.
(a) If Section 36.301 or 36.302(f) applies, the commission,
after notice and hearing in accordance with Chapter 2001,
Government Code, shall take action the commission considers
appropriate, including:
(1) issuing an order requiring the district to take certain
actions or to refrain from taking certain actions;
(2) dissolving the board in accordance with Sections 36.305
and 36.307;
(3) removing the district's taxing authority; or
(4) dissolving the district in accordance with Sections
36.304, 36.305, and 36.308.
(b) In addition to actions identified under Subsection (a), the
commission may recommend to the legislature, based upon the
report required by Section 35.018, actions the commission deems
necessary to accomplish comprehensive management in the district.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.36, eff. Sept. 1,
1997.
Sec. 36.304. Dissolution of District.
(a) The commission may dissolve a district that:
(1) is not operational, as determined under Section 36.302;
and
(2) has no outstanding bonded indebtedness.
(b) A district composed of territory entirely within one county
may be dissolved even if the district has outstanding
indebtedness that matures after the year in which the district is
dissolved, whereupon the commissioners court shall levy and
collect taxes on all taxable property in the district in an
amount sufficient to pay the principal of and interest on the
indebtedness when due. The taxes shall be levied and collected
in the same manner as county taxes.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Water Code Sec. 36.301 and
amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.36, eff. Sept.
1, 1997.
Sec. 36.305. Notice of Hearing for Dissolution of Board or District.
(a) The commission shall give notice of the hearing for
dissolution of a district or of a board which briefly describes
the reasons for the proceeding.
(b) The notice shall be published once each week for two
consecutive weeks before the day of hearing in a newspaper having
general circulation in the county or counties in which the
district is located. The first publication shall be 30 days
before the day of the hearing.
(c) The commission shall give notice of the hearing by first
class mail addressed to the directors of the district according
to the last record on file with the executive director.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Water Code Sec. 36.302 and
amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.36, eff. Sept.
1, 1997.
Sec. 36.306. Investigation.
The executive director shall investigate the facts and
circumstances of any violations of any rule or order of the
commission or any provisions of this chapter and shall prepare
and file a written report with the commission and district and
include any actions the executive director believes the
commission should take under Section 36.303.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Water Code Sec. 36.303 and
amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.36, eff. Sept.
1, 1997.
Sec. 36.307. Order of Dissolution of Board.
If the commission enters an order to dissolve the board, the
commission shall notify the county commissioners court of each
county which contains territory in the district and the
commission shall provide that temporary directors be appointed
under Section 36.016 to serve until an election for a new board
can be held under Section 36.017, provided, however, that
district confirmation shall not be required for continued
existence of the district and shall not be an issue in the
election.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.36, eff. Sept. 1,
1997.
Sec. 36.308. Certified Copy of Order.
The commission shall file a certified copy of the order of
dissolution of the district in the deed records of the county or
counties in which the district is located. If the district was
created by a special Act of the legislature, the commission shall
file a certified copy of the order of dissolution with the
secretary of state.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Water Code Sec. 36.305 by Acts
1997, 75th Leg., ch. 1010, Sec. 4.36, eff. Sept. 1, 1997.
Sec. 36.309. Appeals.
Appeals from any commission order shall be filed and heard in
the district court of any of the counties in which the land is
located.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Water Code Sec. 36.306 and
amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.36, eff. Sept.
1, 1997.
Sec. 36.310. Assets Escheat.
Upon the dissolution of a district by the commission, all
assets of the district shall be sold at public auction and the
proceeds given to the county if it is a single-county district.
If it is a multicounty district, the proceeds shall be divided
with the counties in proportion to the surface land area in each
county served by the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 20.10,
eff. Sept. 1, 1997. Renumbered from V.T.C.A., Water Code Sec.
36.307 and amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.36,
eff. Sept. 1, 1997.
SUBCHAPTER J. ADDING TERRITORY TO DISTRICT
Sec. 36.321. Adding Land by Petition of Landowner.
The owner of land contiguous to a district may file with the
board a notarized petition requesting that the owner's land be
included in the district. The petition must describe the land by
legal description or by metes and bounds or by lot and block
number if there is a recorded plat of the area to be included in
the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.322. Assumption of Bonds.
If the district has bonds, notes, or other obligations
outstanding or bonds payable in whole or in part from taxation
that have been voted but are unissued, the petitioner shall
assume its share of the outstanding bonds, notes, or other
obligations and any voted but unissued tax bonds of the district,
and the property shall be assessed an ad valorem tax at the same
rate as that set for the existing district to pay for outstanding
bonds and for the maintenance and operation of the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.323. Hearing and Determination of Petition.
(a) The board shall hear and consider the petition and may add
to the district the land described in the petition if it is
considered to be to the advantage of the petitioner and to the
existing district.
(b) If the district has bonds payable in whole or in part from
taxation that are voted but unissued at the time of the
annexation, the board may issue the voted but unissued bonds even
though the boundaries of the district have been altered since the
authorization of the bonds.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.324. Recording Petition.
A petition that is granted which adds land to the district
shall be recorded in the office of the county clerk of the county
or counties in which the land is located and the county or
counties in which the existing district's principal office is
located.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.325. Adding Certain Territory by Petition.
(a) Landowners of a defined area of territory not already in a
district may file with any district a petition requesting
inclusion in that district.
(b) The petition must be signed by:
(1) a majority of the landowners in the territory;
(2) at least 50 landowners if the number of landowners is
more than 50; or
(3) the commissioners court of the county in which the area
is located if the area is identified as a priority groundwater
management area or includes the entire county. The petition
must describe the land by legal description or by metes and
bounds or by lot and block number if there is a recorded plat
of the area to be included in the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.37, eff.
Sept. 1, 1997.
Sec. 36.326. Hearing on Petition.
The board by order shall set the time and place of separate
hearings on the petition to include the territory in the
district. At least one hearing shall be held in the existing
district and one hearing shall be held in the territory to be
added.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.327. Resolution to Add Territory.
If the board finds after the hearing on the petition that the
addition of the land would benefit the district and the territory
to be added, it may add the territory to the district by
resolution. The board does not have to include all the territory
described in the petition if it finds that a modification or
change is necessary or desirable.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.328. Election to Ratify Annexation of Land.
(a) Annexation of the territory is not final until ratified by
a majority vote of the voters in the territory to be added. An
election in the existing district accepting the addition of land
is not required.
(b) The ballots for the election shall be printed to provide
for voting for or against the proposition: "The inclusion of
(briefly describe additional area) in the __________ District."
If the district levies a property tax for payment of its
maintenance and operating expenses, the proposition shall include
the following language: "and the levy of a tax on property at a
rate not to exceed _____ cents on each $100 of assessed valuation
for payment of maintenance and operating expenses of the
district."
(c) The amount of the tax included in the proposition shall be
the maximum amount that the district is authorized to levy. If
the district has outstanding or authorized bonded indebtedness,
the proposition shall include language providing for the
assumption by the additional area of a proportional share of the
bonded indebtedness of the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.329. Notice and Procedure of Election.
The notice of the election, the manner and the time of giving
the notice, the manner of holding the election, and
qualifications of the voters are governed by the Election Code.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.330. Liability of Added Territory.
The added territory shall bear its pro rata share of
indebtedness or taxes that may be owed, contracted, or authorized
by the district to which it is added.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.331. Annexation of Noncontiguous Territory.
Land not contiguous to the existing boundaries of a district
may not be added to or annexed to a district unless the land is
located either within the same management area, priority
groundwater management area, or a groundwater subdivision
designated by the commission or its predecessors.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 4.38, eff.
Sept. 1, 1997.
SUBCHAPTER K. CONSOLIDATION OF DISTRICTS
Sec. 36.351. Consolidation of Districts.
(a) Two or more districts may consolidate into one district.
(b) Adjacent districts may consolidate portions of either
district if one district relinquishes land within that district
to the jurisdiction of the other district.
(c) A consolidation under this subchapter occurs if the board of
each involved district adopts a resolution containing the terms
and conditions of the consolidation.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.352. Terms and Conditions of Consolidation.
(a) The terms and conditions for consolidation shall include:
(1) adoption of a name for the district;
(2) the number and apportionment of directors to serve on
the board;
(3) the effective date of the consolidation;
(4) an agreement on finances for the consolidated district,
including disposition of funds, property, and other assets of
each district;
(5) transfer of all permits issued in the area that is the
subject of the consolidation to the consolidated district; and
(6) an agreement on governing the districts during the
transition period, including selection of officers.
(b) The terms and conditions for consolidation may include:
(1) assumption by each district of the other district's
bonds, notes, voted but unissued bonds, or other obligations;
(2) an agreement to levy taxes to pay for bonds;
(3) any other terms of conditions agreed upon by the board
of each district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.353. Notice and Hearing on Consolidation.
(a) Each board shall publish notice and hold a public hearing
within that district on the terms and conditions for
consolidation of the districts.
(b) After the hearing, the board may, by resolution, approve
the terms and conditions for consolidation and enter an order
consolidating the districts.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.354. Elections to Approve Consolidation.
(a) An election to ratify the consolidation is required unless
the districts to be consolidated meet the following requirements:
(1) the districts have not authorized or issued bonds and do
not levy or assess taxes; or
(2) the consolidation would not result in any additional
taxing or bonding authority for any of the districts, and would
not require any district to contribute to the debt payments of
any other district.
(b) The board shall order an election in each district to be
consolidated only after the board of each district has agreed on
the terms and conditions of consolidation. The directors of each
district shall order the election to be held on the same day in
each district. The election shall be held and notice given in
the manner provided by the Election Code.
(c) The ballots for the election shall be printed to provide
for voting for or against the proposition: "The consolidation of
(names of the districts to be consolidated) in the __________
District." If the district levies a property tax for payment of
its bonded indebtedness, the proposition shall include the
following language: "and the levy of a tax on property at a rate
not to exceed _____ cents on each $100 of assessed valuation for
payment of bonds." If the district levies a property tax for
payment of its maintenance and operating expenses, the
proposition shall include the following language: "and the levy
of a tax on property at a rate not to exceed _____ cents on each
$100 of assessed valuation for payment of maintenance and
operating expenses of the district."
(d) A district may be consolidated only if a majority of the
electors in each district vote in favor of the consolidation. If
more than two districts are consolidating, failure of any one
district to ratify the consolidation shall not prevent the
consolidation of the other districts.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.355. Governing Consolidated Districts.
(a) After two or more districts are consolidated, they become
one district and are governed as one district.
(b) During the transition period, the officers of each district
shall continue to act jointly as officers of the original
districts to settle the affairs of their respective districts.
(c) If the consolidated district elects directors, directors
for the consolidated district shall be elected in the same manner
and for the same term as directors elected at a confirmation
election. The directors' election shall be set for the next
regular election.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.356. Debts of Original Districts.
(a) After two or more districts are consolidated, the
consolidated district shall protect the debts of the original
districts and shall assure that the debts are not impaired. If
the consolidated district has taxing authority, the debts may be
paid by taxes levied on the land in the original districts as if
they had not consolidated or from contributions from the
consolidated district on terms stated in the consolidation
agreement.
(b) If the consolidated district has taxing authority and
assumes the bonds, notes, and other obligations of the original
districts, taxes may be levied uniformly on all taxable property
within the consolidated district to pay the debts.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.357. Assessment and Collection of Taxes.
If the consolidated district has taxing authority, the district
shall assess and collect taxes on property on all property in the
district for maintenance and operation of the district.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.358. Voted but Unissued Bonds.
If either district has voted but unissued bonds payable in
whole or in part from taxation assumed by the consolidated
district, the consolidated district may issue the voted but
unissued bonds in the name of the consolidated district and levy
a uniform tax on all taxable property in the consolidated
district to pay for the bonds.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
Sec. 36.359. Filing of Order With County Clerk and Executive Director.
A consolidation order issued by the board shall be kept in the
records of the consolidated district, recorded in the office of
the county clerk in each of the counties in the consolidated
district, and filed with the executive director.
Added by Acts 1995, 74th Leg., ch. 933, Sec. 2, eff. Sept. 1,
1995.
SUBCHAPTER L. GROUNDWATER DISTRICT LOAN ASSISTANCE FUND
Sec. 36.371. Groundwater District Loan Assistance Fund.
(a) The groundwater district loan assistance fund is created, to
be funded by direct appropriation and by the Texas Water
Development Board from the water assistance fund.
(b) Repayments of loans shall be deposited in the water
assistance fund.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.39, eff. Sept. 1,
1997.
Sec. 36.372. Financial Assistance.
(a) The loan fund may be used by the Texas Water Development
Board to provide loans to newly confirmed districts and
legislatively created districts that do not require a
confirmation election to pay for their creation and initial
operations.
(b) The Texas Water Development Board shall establish rules for
the use and administration of the loan fund.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.39, eff. Sept. 1,
1997.
Sec. 36.373. Application for Assistance.
(a) In an application to the Texas Water Development Board for
financial assistance from the loan fund, the applicant shall
include:
(1) the name of the district and its board members;
(2) a citation of the law under which the district operates
and was created;
(3) a description of the initial operations;
(4) the total start-up cost of the initial operations;
(5) the amount of state financial assistance requested;
(6) the plan for repaying the total cost of the loan; and
(7) any other information the Texas Water Development Board
may require to perform its duties and protect the public
interest.
(b) The Texas Water Development Board may not accept an
application for a loan from the loan fund unless it is submitted
in affidavit form by the applicant's board. The Texas Water
Development Board shall prescribe the affidavit form in its
rules.
(c) The rules implementing this section shall not restrict or
prohibit the Texas Water Development Board from requiring
additional factual material from an applicant.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.39, eff. Sept. 1,
1997.
Sec. 36.374. Approval of Application.
The Texas Water Development Board, by resolution, may approve
an application if it finds that:
(1) granting financial assistance to the applicant will
serve the public interest; and
(2) the revenue pledged by the applicant from district taxes
and fees and other sources will be sufficient to meet all the
obligations assumed by the applicant.
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.39, eff. Sept. 1,
1997