WATER CODE
CHAPTER 36. GROUNDWATER CONSERVATION DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
§ 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 Texas Water Development Board 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 67.
(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.
(18) "Public water supply well" means, for purposes of
a district governed by this chapter, a well that produces the
majority of its water for use by a public water system.
(19) "Agriculture" means any of the following
activities:
(A) cultivating the soil to produce crops for
human food, animal feed, or planting seed or for the production of
fibers;
(B) the practice of floriculture, viticulture,
silviculture, and horticulture, including the cultivation of
plants in containers or nonsoil media, by a nursery grower;
(C) raising, feeding, or keeping animals for
breeding purposes or for the production of food or fiber, leather,
pelts, or other tangible products having a commercial value;
(D) planting cover crops, including cover crops
cultivated for transplantation, or leaving land idle for the
purpose of participating in any governmental program or normal crop
or livestock rotation procedure;
(E) wildlife management; and
(F) raising or keeping equine animals.
(20) "Agricultural use" means any use or activity
involving agriculture, including irrigation.
(21) "Conjunctive use" means the combined use of
groundwater and surface water sources that optimizes the beneficial
characteristics of each source.
(22) "Nursery grower" means a person who grows more
than 50 percent of the products that the person either sells or
leases, regardless of the variety sold, leased, or grown. For the
purpose of this definition, "grow" means the actual cultivation or
propagation of the product beyond the mere holding or maintaining
of the item prior to sale or lease and typically includes activities
associated with the production or multiplying of stock such as the
development of new plants from cuttings, grafts, plugs, or
seedlings.
(23) "River basin" means a river or coastal basin
designated as a river basin by the board under Section 16.051. The
term does not include waters of the bays or arms originating in the
Gulf of Mexico.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1010, § 4.20, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 62, § 18.65, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 966, § 2.29, eff. Sept. 1, 2001; Acts
2001, 77th Leg., ch. 1234, § 34, eff. Sept. 1, 2001; Acts 2003,
78th Leg., ch. 1275, § 2(147), eff. Sept. 1, 2003.
§ 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 through rules developed, adopted,
and promulgated by a district in accordance with the provisions of
this chapter.
Added by Acts 1997, 75th Leg., ch. 1010, § 4.21, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 966, § 2.30, eff.
Sept. 1, 2001.
§ 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, except as those rights may
be limited or altered by rules promulgated by a district.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 966, § 2.31, eff. Sept. 1,
2001.
SUBCHAPTER B. CREATION OF DISTRICT
§ 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
creation of districts.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 966, § 2.32, eff. Sept. 1,
2001.
§ 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.
(f) This section does not apply to districts created under
Section 36.0151.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1010, § 4.22, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 966, § 2.33, eff. Sept. 1, 2001.
§ 36.013. PETITION TO CREATE DISTRICT. (a) A petition
requesting creation of a district must be filed with the commission
for review and certification under Section 36.015.
(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;
(5) the names of at least five individuals qualified
to serve as temporary directors; and
(6) financial information, including the projected
maintenance tax or production fee rate and a proposed budget of
revenues and expenses for the district.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1010, § 4.23, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 966, § 2.34, eff. Sept. 1, 2001.
§ 36.014. NOTICE AND PUBLIC MEETING ON DISTRICT
CREATION. (a) If a petition is filed under Section 36.013, the
commission shall give notice of the application and shall conduct a
public meeting in a central location within the area of the proposed
district on the application not later than the 60th day after the
date the commission issues notice. The notice must contain the
date, time, and location of the public meeting and must be published
in one or more newspapers of general circulation in the area of the
proposed district.
(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, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 1, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 966, § 2.35, eff. Sept. 1, 2001.
§ 36.015. COMMISSION CERTIFICATION AND ORDER. (a) Not
later than the 90th day after the date the commission holds a public
meeting on a petition under Section 36.014, the commission shall
certify the petition if the petition is administratively complete.
A petition is administratively complete if it complies with the
requirements of Sections 36.013(b) and (c).
(b) The commission may not certify a petition if the
commission finds that the proposed district cannot be adequately
funded to carry out its purposes based on the financial information
provided in the petition under Section 36.013(c)(6) or that the
boundaries of the proposed district do not provide for the
effective management of the groundwater resources. The commission
shall give preference to boundary lines that are coterminous with
those of a groundwater management area but may also consider
boundaries along existing political subdivision boundaries if such
boundaries would facilitate district creation and confirmation.
(c) If a petition proposes the creation of a district in an
area, in whole or in part, that has not been designated as a
management area, the commission shall provide notice to the Texas
Water Development Board. On the receipt of notice from the
commission, the Texas Water Development Board shall initiate the
process of designating a management area for the area of the
proposed district not included in a management area. The
commission may not certify the petition until the Texas Water
Development Board has adopted a rule whereby the boundaries of the
proposed district are coterminous with or inside the boundaries of
a management area.
(d) If the commission does not certify the petition, the
commission shall provide to the petitioners, in writing, the
reasons for not certifying the petition. The petitioners may
resubmit the petition, without paying an additional fee, if the
petition is resubmitted within 90 days after the date the
commission sends the notice required by this subsection.
(e) If the commission certifies the petition as
administratively complete, the commission shall issue an order,
notify the petitioners, and appoint temporary directors as provided
by Section 36.016.
(f) Refusal by the commission to certify a petition to
create a district does not invalidate or affect the designation of
any management area.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 966, § 2.36, eff. Sept. 1,
2001.
§ 36.0151. CREATION OF DISTRICT FOR PRIORITY GROUNDWATER
MANAGEMENT AREA. (a) If the commission is required to create a
district under Section 35.012(b), it shall, without an evidentiary
hearing, issue an order creating the district and shall provide in
its order that temporary directors be appointed under Section
36.016 and that an election be called by the temporary directors to
authorize the district to assess taxes 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, § 4.24, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 966, § 2.37, eff.
Sept. 1, 2001.
§ 36.016. APPOINTMENT OF TEMPORARY DIRECTORS. (a) If
the commission certifies a petition to create a district under
Section 36.015, the commission shall appoint the temporary
directors named in the petition. If 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, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1010, § 4.25, eff. Sept. 1,
1977; Acts 2001, 77th Leg., ch. 966, § 2.38, eff. Sept. 1, 2001.
§ 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, § 4.26, eff. Sept. 1,
1997.
§ 36.017. CONFIRMATION AND DIRECTORS' ELECTION FOR
DISTRICT IN A MANAGEMENT AREA. (a) For a district created under
Section 36.015, not later than the 120th 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, then
an additional proposition shall be included with the following
language: "The levy of a maintenance tax at a rate not to exceed
______ cents for each $100 of assessed valuation." The same ballot
or another ballot must provide for the election of permanent
directors, in accordance with Section 36.059.
(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. The temporary board shall continue operations in
accordance with Subsection (h).
(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.
(i) If a majority of the votes cast at the election are
against the levy of a maintenance tax, the district shall set
production fees to pay for the district's regulation of groundwater
in the district, including fees based on the amount of water to be
withdrawn from a well.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 966, § 2.39, eff. Sept. 1,
2001.
§ 36.0171. TAX AUTHORITY AND DIRECTORS' ELECTION FOR
DISTRICT IN A PRIORITY GROUNDWATER MANAGEMENT AREA. (a) For a
district created under Section 36.0151, not later than the 120th
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 authorize the district to assess taxes 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 once 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 levy of a
maintenance tax by the ___________________ Groundwater
Conservation District at a rate not to exceed ______ cents for each
$100 of assessed valuation." The same ballot or another ballot must
provide for the election of permanent directors, in accordance with
Section 36.059.
(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, declare
the result, and turn over the operations of the district to the
elected permanent directors. 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
levy of a maintenance tax, the temporary board shall declare the
levy approved and shall enter the result in its minutes.
(g) If a majority of the votes cast at the election are
against the levy of a maintenance tax, the temporary board shall
declare the levy defeated and shall enter the result in its minutes.
(h) If the majority of the votes cast at the election are
against the levy of a maintenance tax, the district shall set permit
fees to pay for the district's regulation of groundwater in the
district, including fees based on the amount of water to be
withdrawn from a well.
Added by Acts 2001, 77th Leg., ch. 966, § 2.40, eff. Sept. 1,
2001.
§ 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, § 2, eff. Sept. 1995.
§ 36.019. CONFIRMATION ELECTION IN DISTRICT INCLUDING
LAND IN MORE THAN ONE COUNTY. (a) 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.
(b) This section does not apply to districts created under
Section 36.0151.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 966, § 2.41, eff. Sept. 1,
2001.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
SUBCHAPTER C. ADMINISTRATION
§ 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.
(d) In a district with a population of less than 50,000, the
common law doctrine of incompatibility does not disqualify:
(1) a member of the governing body or officer of
another political subdivision other than a municipality or county
from serving as a director of the district; or
(2) a director of the district from serving as a member
of the governing body or officer of another political subdivision
other than a municipality or county.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 78, § 1, eff. May 19, 2003.
§ 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, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1010, § 4.27, eff. Sept. 1,
1997.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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 shall be filed as prescribed by the
constitution. The bond and oath shall be filed with the district
and retained in its records. A duplicate original of the oath shall
also be filed with the secretary of state within 10 days after its
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, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 249, § 1, eff. Aug. 30,
1999.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 36.060. FEES OF OFFICE; REIMBURSEMENT. (a) A
director is entitled to receive fees of office of not more than $150
a day for each day the director actually spends performing the
duties of a director. The fees of office may not exceed $9,000 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.
(d) Section 36.052(a) notwithstanding, Subsection (a)
prevails over any other law in conflict with or inconsistent with
that subsection, including a special law governing a specific
district unless the special law prohibits the directors of that
district from receiving a fee of office. If the application of this
section results in an increase in the fees of office for any
district, that district's fees of office shall not increase unless
the district's board by resolution authorizes payment of the higher
fees.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 1354, § 1, eff. Sept. 1,
1999; Acts 2001, 77th Leg., ch. 966, § 2.42, eff. Sept. 1, 2001;
Acts 2003, 78th Leg., ch. 905, § 1, eff. June 20, 2003.
§ 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 records of any district
if the state auditor determines that the audit is necessary.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 785, § 51, eff. Sept. 1,
2003.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, the district may seek and the
court shall grant, in the same action, recovery for attorney's
fees, costs for 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, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 966, § 2.43, eff. Sept. 1,
2001.
§ 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.
(c) A district may use the reverse auction procedure, as
defined by Section 2155.062(d), Government Code, for purchasing.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 436, § 8, eff. May 28, 2001.
§ 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.
(d) The board may establish a sick leave pool for employees
of the district in the same manner as that authorized for the
creation of a sick leave pool for state employees by Subchapter A,
Chapter 661, Government Code.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 1354, § 2, eff. Sept. 1,
1999.
SUBCHAPTER D. POWERS AND DUTIES
§ 36.101. RULEMAKING POWER. (a) A district may make
and enforce rules, including rules limiting groundwater production
based on tract size or the spacing of wells, to provide for
conserving, preserving, protecting, and recharging of the
groundwater or of a groundwater reservoir or its subdivisions in
order to control subsidence, prevent degradation of water quality,
or prevent waste of groundwater and to carry out the powers and
duties provided by this chapter. During the rulemaking process the
board shall consider all groundwater uses and needs and shall
develop rules which are fair and impartial.
(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, § 2, eff. Sept. 1, 1994.
Amended by Acts 2001, 77th Leg., ch. 966, § 2.44, eff. Sept. 1,
2001.
§ 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 by rule may set reasonable civil penalties for
breach of any rule of the district not to exceed $10,000 per day per
violation, and each day of a continuing violation constitutes a
separate violation.
(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, the district may seek and the court shall grant, in the same
action, recovery for attorney's fees, costs for 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, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 548, § 2, eff. June 11,
2001; Acts 2001, 77th Leg., ch. 966, § 2.45, eff. Sept. 1, 2001.
§ 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 water
conservation purposes.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 560, § 1, eff. Sept. 1,
2003.
§ 36.104. PURCHASE, SALE, TRANSPORTATION, AND
DISTRIBUTION OF WATER. A district may purchase, sell, transport,
and distribute surface water or groundwater.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 560, § 2, eff. Sept. 1,
2003.
§ 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:
(1) within the boundaries of the district; and
(2) necessary for conservation purposes, including
recharge and reuse.
(b) The power of eminent domain authorized in this section
may not be used for the condemnation of land for the purpose of:
(1) acquiring rights to groundwater, surface water or
water rights; or
(2) production, sale, or distribution of groundwater
or surface water.
(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, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 560, § 3, eff. Sept. 1,
2003.
§ 36.106. SURVEYS. A district may make surveys of the
groundwater reservoir or subdivision and surveys of the facilities
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, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 560, § 4, eff. Sept. 1,
2003.
§ 36.107. RESEARCH. A district may carry out any
research projects deemed necessary by the board.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1010, § 4.28, eff. Sept. 1,
1997.
§ 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;
(5) addressing natural resource issues;
(6) addressing drought conditions; and
(7) addressing conservation.
(b) After January 5, 2002, a district management plan, or
any amendments to a district management plan, shall be developed by
the district using the district's best available data and forwarded
to the regional water planning group for consideration in their
planning process.
(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.
(h) In developing its management plan, the district shall
use the groundwater availability modeling information provided by
the executive administrator in conjunction with any available
site-specific information provided by the district and acceptable
to the executive administrator.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Redesignated from 36.107(b) and (c) and amended by Acts 1997, 75th
Leg., ch. 1010, § 4.28, eff. Sept. 1, 1997. Amended by Acts
2001, 77th Leg., ch. 966, § 2.46, eff. Sept. 1, 2001.
§ 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.
(g) In this subsection, "board" means the Texas Water
Development Board. A person with a legally defined interest in
groundwater in a district or the regional water planning group may
file a petition with the board stating that a conflict requiring
resolution may exist between the district's certified groundwater
conservation district management plan developed under Section
36.1071 and the state water plan. If a conflict exists, the board
shall facilitate coordination between the involved person or
regional water planning group and the district to resolve the
conflict. If conflict remains, the board shall resolve the
conflict. The board action under this provision may be
consolidated, at the option of the board, with related action under
Section 16.053(p). If the board determines that resolution of the
conflict requires a revision of the certified groundwater
conservation district management plan, the board shall suspend the
certification of the plan and provide information to the district.
The district shall prepare any revisions to the plan specified by
the board and shall hold, after notice, at least one public hearing
at some central location within the district. The district shall
consider all public and board comments, prepare, revise, and adopt
its plan, and submit the revised plan to the board for
certification. On the request of the district or the regional water
planning group, the board shall include discussion of the conflict
and its resolution in the state water plan that the board provides
to the governor, the lieutenant governor, and the speaker of the
house of representatives under Section 16.051(e).
Added by Acts 1997, 75th Leg., ch. 1010, § 4.28, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 966, § 2.47, eff.
Sept. 1, 2001.
§ 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, § 4.28, eff. Sept. 1,
1997.
§ 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 and certification
of the plan as required by Section 36.1072, each district shall
forward a copy of the new or revised management plan to the other
districts in the management area. The boards of the districts shall
consider the plans individually and shall compare them to other
management plans then in force in the management area.
(b) The board of directors of each district in the
management area may, by resolution, call for joint planning with
the other districts in the management area to review the management
plans and accomplishments for 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) If a joint meeting of the boards of directors is called,
the meeting must be held in accordance with 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.
(d) A district in the management area may file with good
cause a petition with the commission requesting an inquiry if the
petitioner district adopted a resolution calling for joint planning
and the other district or districts refused to join in the planning
process or the process failed to result in adequate planning, and
the petition provides evidence 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) If the petition is not dismissed under Subsection (e),
the commission shall 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, consider and adopt a report
to be submitted 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.
(i) The review panel shall submit its report to the
commission.
(j) Districts located within the same management areas or in
adjacent management areas may contract to jointly conduct studies
or research, or to construct projects, under terms and conditions
that the districts consider beneficial. These joint efforts may
include studies of groundwater availability and quality, aquifer
modeling, and the interaction of groundwater and surface water;
educational programs; the purchase and sharing of equipment; and
the implementation of projects to make groundwater available,
including aquifer recharge, brush control, weather modification,
desalination, regionalization, and treatment or conveyance
facilities. The districts may contract under their existing
authorizations including those of Chapter 791, Government Code, if
their contracting authority is not limited by Sections
791.011(c)(2) and (d)(3) and Section 791.014, Government Code.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1010, § 4.29, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 519, § 1, eff. Sept. 1, 2001;
Acts 2001, 77th Leg., ch. 966, § 2.48, eff. Sept. 1, 2001.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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 or existing permit
holders;
(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) The district may impose more restrictive permit
conditions on new permit applications and increased use by historic
users if the limitations:
(1) apply to all subsequent new permit applications
and increased use by historic users, regardless of type or location
of use;
(2) bear a reasonable relationship to the existing
district management plan; and
(3) are reasonably necessary to protect existing use.
(f) 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.
(g) 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, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1010, § 4.30, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 966, § 2.49, eff. Sept. 1, 2001.
§ 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, § 4.31, eff. Sept. 1,
1997.
§ 36.114. PERMIT; APPLICATION AND HEARING. The
district shall promptly consider and act on each administratively
complete application for a permit. If, within 30 days after the
date the administratively complete application is submitted, an
application has not been acted 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. The district may by
rule set a time when an application will expire if the information
requested in the application is not provided to the district. An
administratively complete application requires information set
forth in accordance with Sections 36.113 and 36.1131.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 319, § 1, eff. May 24, 2001.
§ 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, § 2, eff. Sept. 1, 1995.
§ 36.116. REGULATION OF SPACING AND
PRODUCTION. (a) In order to minimize as far as practicable the
drawdown of the water table or the reduction of artesian pressure,
to control subsidence, to prevent interference between wells, to
prevent degradation of water quality, or to prevent waste, a
district by rule may regulate:
(1) the spacing of water wells by:
(A) requiring all water wells to be spaced a
certain distance from property lines or adjoining wells;
(B) requiring wells with a certain production
capacity, pump size, or other characteristic related to the
construction or operation of and production from a well to be spaced
a certain distance from property lines or adjoining wells; or
(C) imposing spacing requirements adopted by the
board; and
(2) the production of groundwater by:
(A) setting production limits on wells;
(B) limiting the amount of water produced based
on acreage or tract size;
(C) limiting the amount of water that may be
produced from a defined number of acres assigned to an authorized
well site;
(D) limiting the maximum amount of water that may
be produced on the basis of acre-feet per acre or gallons per minute
per well site per acre; or
(E) any combination of the methods listed above
in Paragraphs (A) through (D).
(b) In promulgating any rules limiting groundwater
production, the district may preserve historic use before the
effective date of the rules to the maximum extent practicable
consistent with the district's comprehensive management plan under
Section 36.1071.
(c) In regulating the production of groundwater based on
tract size or acreage, a district may consider the service needs or
service area of a retail water utility. For the purposes of this
subsection, "retail water utility" shall have the meaning provided
at Section 13.002.
(d) For better management of the groundwater resources
located in a district or if a district determines that conditions in
or use of an aquifer differ substantially from one geographic area
of the district to another, the district may adopt different rules
for:
(1) each aquifer, subdivision of an aquifer, or
geologic strata located in whole or in part within the boundaries of
the district; or
(2) each geographic area overlying an aquifer or
subdivision of an aquifer located in whole or in part within the
boundaries of the district.
(e) In regulating the production of groundwater under
Subsection (a)(2), a district:
(1) shall select a method that is appropriate based on
the hydrogeological conditions of the aquifer or aquifers in the
district; and
(2) may limit the amount of water produced based on
contiguous surface acreage.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 1164, § 1, eff. June 15,
2001; Acts 2001, 77th Leg., ch. 966, § 2.50, eff. Sept. 1, 2001;
Acts 2003, 78th Leg., ch. 1242, § 1, eff. June 20, 2003; Acts
2003, 78th Leg., ch. 1276, § 18.006, eff. Sept. 1, 2003.
§ 36.117. EXEMPTIONS; EXCEPTION; LIMITATIONS. (a) A
district may exempt wells from the requirement of obtaining a
drilling permit, an operating permit, or any other permit required
by this chapter or the district's rules.
(b) A district may not require any permit issued by the
district for:
(1) a well used solely for domestic use or for
providing water for livestock or poultry on a tract of land larger
than 10 acres that is either drilled, completed, or equipped so that
it is incapable of producing more than 25,000 gallons of
groundwater a day;
(2) the drilling of a water well used solely to supply
water for a rig that is actively engaged in drilling or exploration
operations for an oil or gas well permitted by the Railroad
Commission of Texas provided that the person holding the permit is
responsible for drilling and operating the water well and the well
is located on the same lease or field associated with the drilling
rig; or
(3) the drilling of a water well authorized under a
permit issued by the Railroad Commission of Texas under Chapter
134, Natural Resources Code, or for production from such a well to
the extent the withdrawals are required for mining activities
regardless of any subsequent use of the water.
(c) A district may not restrict the production of any well
that is exempt from permitting under Subsection (b)(1).
(d) Notwithstanding Subsection (b), a district may require
a well to be permitted by the district and to comply with all
district rules if:
(1) the purpose of a well exempted under Subsection
(b)(2) is no longer solely to supply water for a rig that is
actively engaged in drilling or exploration operations for an oil
or gas well permitted by the Railroad Commission of Texas; or
(2) the withdrawals from a well exempted under
Subsection (b)(3) are no longer necessary for mining activities or
are greater than the amount necessary for mining activities
specified in the permit issued by the Railroad Commission of Texas
under Chapter 134, Natural Resources Code.
(e) An entity holding a permit issued by the Railroad
Commission of Texas under Chapter 134, Natural Resources Code, that
authorizes the drilling of a water well shall report monthly to the
district:
(1) the total amount of water withdrawn during the
month;
(2) the quantity of water necessary for mining
activities; and
(3) the quantity of water withdrawn for other
purposes.
(f) Notwithstanding Subsection (d), a district may not
require a well exempted under Subsection (b)(3) to comply with the
spacing requirements of the district.
(g) A district may not deny an application for a permit to
drill and produce water for hydrocarbon production activities if
the application meets all applicable rules as promulgated by the
district.
(h) A water well exempted under Subsection (a) or (b) shall:
(1) be registered in accordance with rules promulgated
by the district; and
(2) 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.
(i) The driller of a well exempted under Subsection (a) or
(b) shall file the drilling log with the district.
(j) A well to supply water for a subdivision of land for
which a plat approval is required by Chapter 232, Local Government
Code, is not exempted under Subsection (b).
(k) Groundwater withdrawn from a well exempt from
permitting or regulation under this section and subsequently
transported outside the boundaries of the district is subject to
any applicable production and export fees under Sections 36.122 and
36.205.
(l) This chapter applies to water wells, including water
wells used to supply water for activities related to the
exploration or production of hydrocarbons or minerals. This
chapter does not apply to production or injection wells drilled for
oil, gas, sulphur, uranium, or brine, or for core tests, or for
injection of gas, saltwater, or other fluids, under permits issued
by the Railroad Commission of Texas.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1010, § 4.32, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 239, § 1, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 966, § 2.51, eff. Sept. 1, 2001.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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 121,000 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 100,000
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, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 966, § 11.04, eff. Sept. 1,
2001.
§ 36.122. TRANSFER OF GROUNDWATER OUT OF
DISTRICT. (a) If an application for a permit or an amendment to a
permit under Section 36.113 proposes the transfer of groundwater
outside of a district's boundaries, the district may also consider
the provisions of this section in determining whether to grant or
deny the permit or permit amendment.
(b) A district may promulgate rules requiring a person to
obtain a permit or an amendment to a permit under Section 36.113
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.
(c) Except as provided in Section 36.113(e), the district
may not impose more restrictive permit conditions on transporters
than the district imposes on existing in-district users.
(d) The district may impose a reasonable fee for processing
an application under this section. The fee may not exceed fees that
the district imposes for processing other applications under
Section 36.113. An application filed to comply with this section
shall be considered and processed under the same procedures as
other applications for permits under Section 36.113 and shall be
combined with applications filed to obtain a permit for in-district
water use under Section 36.113 from the same applicant.
(e) The district may impose a reasonable fee or surcharge
for an export fee using one of the following methods:
(1) a fee negotiated between the district and the
transporter;
(2) a rate not to exceed the equivalent of the
district's tax rate per hundred dollars of valuation for each
thousand gallons of water transferred out of the district or 2.5
cents per thousand gallons of water, if the district assesses a tax
rate of less than 2.5 cents per hundred dollars of valuation; or
(3) for a fee-based district, a 50 percent export
surcharge, in addition to the district's production fee, for water
transferred out of the district.
(f) In reviewing a proposed transfer of groundwater out of
the district, 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 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
(3) the approved regional water plan and certified
district management plan.
(g) The district may not deny a permit based on the fact that
the applicant seeks to transfer groundwater outside of the district
but may limit a permit issued under this section if conditions in
Subsection (f) warrant the limitation, subject to Subsection (c).
(h) 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.
(i) The period specified by Subsection (h)(2) shall be:
(1) at least three years if construction of a
conveyance system has not been initiated prior to the issuance of
the permit; or
(2) at least 30 years if construction of a conveyance
system has been initiated prior to the issuance of the permit.
(j) A term under Subsection (i)(1) shall automatically be
extended to the terms agreed to under Subsection (i)(2) if
construction of a conveyance system is begun before the expiration
of the initial term.
(k) Notwithstanding the period specified in Subsections (i)
and (j) during which water may be transferred under a permit, a
district may periodically review the amount of water that may be
transferred under the permit and may limit the amount if additional
factors considered in Subsection (f) warrant the limitation,
subject to Subsection (c). The review described by this subsection
may take place not more frequently than the period provided for the
review or renewal of regular permits issued by the district. In its
determination of whether to renew a permit issued under this
section, the district shall consider relevant and current data for
the conservation of groundwater resources and shall consider the
permit in the same manner it would consider any other permit in the
district.
(l) A district is prohibited from using revenues obtained
under Subsection (e) to prohibit the transfer of groundwater
outside of a district. A district is not prohibited from using
revenues obtained under Subsection (e) for paying expenses related
to enforcement of this chapter or district rules.
(m) A district may not prohibit the export of groundwater if
the purchase was in effect on or before June 1, 1997.
(n) This section applies only to a transfer of water that is
permitted after September 1, 1997.
(o) A district shall adopt rules as necessary to implement
this section but may not adopt rules expressly prohibiting the
export of groundwater.
(p) Subsection (e) does not apply to a district that is
collecting an export fee or surcharge on March 1, 2001.
(q) In applying this section, a district must be fair,
impartial, and nondiscriminatory.
Added by Acts 1997, 75th Leg., ch. 1010, § 4.33, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 966, § 2.52, eff.
Sept. 1, 2001.
§ 36.123. RIGHT TO ENTER LAND. (a) The directors,
engineers, attorneys, agents, operators, and employees of a
district or water supply corporation may go on any land to inspect,
make surveys, or perform tests to determine the condition, value,
and usability of the property, with reference to the proposed
location of works, improvements, plants, facilities, equipment, or
appliances. The cost of restoration shall be borne by the district
or the water supply corporation.
(b) District employees and agents are entitled to enter any
public or private property within the boundaries of the district or
adjacent to any reservoir or other property owned by the district at
any reasonable time for the purpose of inspecting and investigating
conditions relating to the quality of water in the state or the
compliance with any rule, regulation, permit, or other order of the
district. District employees or agents acting under this authority
who enter private property shall observe the establishment's rules
and regulations concerning safety, internal security, and fire
protection and shall notify any occupant or management of their
presence and shall exhibit proper credentials.
Added by Acts 1999, 76th Leg., ch. 1354, § 3, eff. Sept. 1, 1999.
§ 36.124. DISTRICT ACT OR PROCEEDING PRESUMED
VALID. (a) A governmental act or proceeding of a district is
conclusively presumed, as of the date it occurred, valid and to have
occurred in accordance with all applicable statutes and rules if:
(1) the third anniversary of the effective date of the
act or proceeding has expired; and
(2) a lawsuit to annul or invalidate the act or
proceeding has not been filed on or before that third anniversary.
(b) This section does not apply to:
(1) an act or proceeding that was void at the time it
occurred;
(2) an act or proceeding that, under a statute of this
state or the United States, was a misdemeanor or felony at the time
the act or proceeding occurred;
(3) a rule that, at the time it was passed, was
preempted by a statute of this state or the United States, including
Section 1.06 or 109.57, Alcoholic Beverage Code; or
(4) a matter that on the effective date of this
section:
(A) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final
judgment of a court; or
(B) has been held invalid by a final judgment of a
court.
Added by Acts 2001, 77th Leg., ch. 389, § 1, eff. May 28, 2001.
SUBCHAPTER E. DISTRICT FINANCES
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 36.153. ANNUAL AUDIT. (a) Annually and subject to
Subsection (c), 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.
(c) The district is exempt from the requirement under
Subsection (a) if it had:
(1) not more than $500 in receipts from operations,
tax assessments, loans, contributions, or any other sources during
the calendar year;
(2) not more than $500 in disbursements of funds
during the calendar year;
(3) no bonds or other liabilities with terms of more
than one year outstanding during the calendar year; and
(4) no cash or investments amounting to more than
$5,000 at any time during the calendar year.
(d) A financially dormant district may elect to submit to
the executive director a financial dormancy affidavit instead of
complying with the audit requirements of Section 49.191.
Added by Acts 1995, 74th Leg., ch. 933, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 785, § 52, eff. Sept. 1,
2003.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 36.1561. INVESTMENT OFFICER. (a) Notwithstanding
Section 2256.005(f), Government Code, the board may contract with a
person to act as investment officer of the district.
(b) The investment officer of a district shall:
(1) not later than the first anniversary of the date
the officer takes office or assumes the officer's duties, attend a
training session of at least six hours of instruction relating to
investment responsibilities under Chapter 2256, Government Code;
and
(2) attend at least four hours of additional
investment training within each two-year period after the first
year.
(c) Training under this section must be from an independent
source approved by:
(1) the board; or
(2) a designated investment committee advising the
investment officer.
(d) Training under this section must include education in
investment controls, security risks, strategy risks, market risks,
diversification of investment portfolio, and compliance with
Chapter 2256, Government Code.
(e) During January of each year, each individual,
association, business, organization, governmental entity, or other
person that provides training under this section shall report to
the comptroller a list of the districts for which the person
provided required training under this section during the previous
calendar year. An individual's reporting requirements under this
subsection are satisfied by a report of the individual's employer
or the sponsoring or organizing entity of a training program or
seminar.
Added by Acts 2001, 77th Leg., ch. 69, § 1, eff. May 14, 2001.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 4.34, eff. Sept. 1,
1997.
§ 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, § 4.34, eff. Sept. 1,
1997.
§ 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 Administ
