CHAPTER 8856. NORTH TEXAS GROUNDWATER CONSERVATION DISTRICT

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE H. DISTRICTS GOVERNING GROUNDWATER

CHAPTER 8856. NORTH TEXAS GROUNDWATER CONSERVATION DISTRICT

For contingent expiration of this chapter, see Section 8856.004.

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8856.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) "Director" means a member of the board.

(3) "District" means the North Texas Groundwater Conservation

District.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.002. NATURE OF DISTRICT; FINDINGS. (a) The district

is a groundwater conservation district in Collin, Cooke, and

Denton Counties created under and essential to accomplish the

purposes of Section 59, Article XVI, Texas Constitution.

(b) The district is created to serve a public use and benefit.

(c) All of the land and other property included within the

boundaries of the district will be benefited by the works and

projects that are to be accomplished by the district under powers

conferred by this chapter and by Chapter 36, Water Code.

(d) Any fees imposed by the district under this chapter are

necessary to pay for the costs of accomplishing the purposes of

the district, including the conservation and management of

groundwater resources, as provided by this chapter and Section

59, Article XVI, Texas Constitution.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.003. PUBLIC HEARING IN EACH COUNTY. (a) Not later

than December 1, 2009, the commissioners court of each county in

the district shall hold a public hearing on the topic of

including the territory of the county in the district.

(b) After the public hearings and not later than December 31,

2009, the commissioners court of each county shall vote to

confirm or reject the county's inclusion in the district. The

commissioners court shall adopt a resolution reflecting the

result of that vote and provide a copy of the resolution to the

temporary directors.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.004. CONFIRMATION REQUIRED. (a) The creation of the

district is confirmed only if the commissioners courts of two or

more of the counties in the district submit a resolution

confirming the county's inclusion in the district to the

temporary board. If the commissioners court of a county does not

submit a resolution confirming the county's inclusion in the

district to the temporary board, that county is not included in

the district. The temporary board shall provide a copy of the

resolutions and the final district boundaries to the Texas

Commission on Environmental Quality.

(b) If the creation of the district is not confirmed as provided

by Subsection (a) before January 1, 2010:

(1) the district is dissolved on January 1, 2010, except that:

(A) any debts incurred shall be paid;

(B) any assets that remain after the payment of debts shall be

transferred in equal amounts to Collin, Cooke, and Denton

Counties; and

(C) the organization of the district shall be maintained until

all debts are paid and remaining assets are transferred; and

(2) this chapter expires September 1, 2011.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.005. INITIAL DISTRICT TERRITORY. The initial

boundaries of the district are coextensive with the boundaries of

Collin, Cooke, and Denton Counties.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.006. APPLICABILITY OF OTHER GROUNDWATER CONSERVATION

DISTRICT LAW. Except as otherwise provided by this chapter,

Chapter 36, Water Code, applies to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.007. CONSTRUCTION OF CHAPTER. This chapter shall be

liberally construed to achieve the legislative intent and

purposes of Chapter 36, Water Code. A power granted by Chapter

36, Water Code, or this chapter shall be broadly interpreted to

achieve that intent and those purposes.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

SUBCHAPTER A-1. TEMPORARY PROVISIONS

For expiration of this subchapter, see Section 8856.024.

Sec. 8856.021. APPOINTMENT OF TEMPORARY DIRECTORS. (a) The

district is initially governed by a board of nine temporary

directors appointed as provided by Sections 8856.051(b) and (d).

(b) Temporary directors shall be appointed not later than the

90th day after the effective date of the Act enacting this

chapter. If after the 90th day fewer than nine temporary

directors have been appointed, each unfilled position shall be

considered a vacancy and filled in accordance with Subsection

(c).

(c) If a vacancy occurs on the temporary board, the remaining

temporary directors shall appoint a person to fill the vacancy in

a manner that meets the representational requirements of this

section.

(d) To be eligible to serve as a temporary director, a person

must be a registered voter in the appointing county.

(e) Each temporary director must qualify to serve as a director

in the manner provided by Section 36.055, Water Code.

(f) Temporary directors serve until the earlier of:

(1) the time the temporary directors become the initial

permanent directors under Section 8856.023; or

(2) the date this chapter expires under Section 8856.004.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.022. ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS.

As soon as practicable after all the temporary directors have

qualified under Section 36.055, Water Code, a majority of the

temporary directors shall convene the organizational meeting of

the district at a location in the district agreeable to a

majority of the directors. If an agreement on location cannot be

reached, the organizational meeting shall be at the Pilot Point

High School in Denton County.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.023. INITIAL PERMANENT DIRECTORS; INITIAL TERMS. (a)

If the creation of the district is confirmed under Section

8856.004, the temporary directors from the counties that are

included in the district become the initial permanent directors.

(b) If the Commissioners Courts of Collin, Cooke, and Denton

Counties confirm the inclusion of those counties in the district,

the three directors appointed from each county shall draw lots as

follows to determine:

(1) for Denton and Cooke Counties, which director's term expires

June 1, 2011, and which two directors' terms expire June 1, 2013;

and

(2) for Collin County, which two directors' terms expire June 1,

2011, and which director's term expires June 1, 2013.

(c) If the commissioners courts of only two of the counties

confirm the inclusion of those counties in the district, the

three directors appointed from each county shall draw lots as

follows to determine:

(1) for the first county to confirm, which director's term

expires June 1, 2011, and which two directors' terms expire June

1, 2013; and

(2) for the second county to confirm, which two directors' terms

expire June 1, 2011, and which director's term expires June 1,

2013.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.024. EXPIRATION OF SUBCHAPTER. This subchapter

expires September 1, 2011.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8856.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of six or nine directors appointed as

provided by this section.

(b) If the Commissioners Courts of Collin, Cooke, and Denton

Counties confirm the inclusion of those counties in the district,

nine directors shall be appointed as follows:

(1) the Collin County Commissioners Court shall appoint three

directors;

(2) the Cooke County Commissioners Court shall appoint three

directors; and

(3) the Denton County Commissioners Court shall appoint three

directors.

(c) If the commissioners courts of only two of the counties

confirm the inclusion of those counties in the district, the

commissioners court of each of those counties shall appoint three

directors.

(d) The commissioners court of each appointing county shall

appoint two of the three directors from that county as follows:

(1) one director from a slate of not more than three nominees

submitted by the largest municipal groundwater producer in the

county; and

(2) one director from a slate of not more than three nominees

submitted by the other groundwater producers in that county.

(e) Directors serve staggered four-year terms, with the term of

one or two directors from each appointing county expiring on June

1 of each odd-numbered year.

(f) A director may serve multiple consecutive terms.

(g) A position on the board may not be construed to be a civil

office of emolument for any purpose, including a purpose

described by Section 40, Article XVI, Texas Constitution.

(h) A person who qualifies to serve on the board may serve as a

director and participate in all votes relating to the business of

the district regardless of any common law doctrine of

incompatibility. Section 36.051, Water Code, does not apply to

the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.052. DIRECTOR ELIGIBILITY; QUALIFICATION. (a) To be

eligible to serve as a director, a person must be a registered

voter in the appointing county.

(b) Each director must qualify to serve in the manner provided

by Section 36.055, Water Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.053. VACANCIES. If a vacancy occurs on the board, the

commissioners court that appointed the director who vacated the

office shall appoint a person to fill the vacancy in a manner

that meets the representational requirements of Section 8856.051.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.054. COMPENSATION; REIMBURSEMENT. (a)

Notwithstanding Sections 36.060(a) and (d), Water Code, a

director may not receive compensation for performing the duties

of director.

(b) A director is entitled to reimbursement of actual expenses

reasonably and necessarily incurred while engaging in activities

on behalf of the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.055. BOARD CHAIR. The board shall select one of its

members to serve as the chair for a two-year term. The position

of chair must rotate among the counties in the district every two

years in alphabetical order by county.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8856.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND

DUTIES. Except as provided by this chapter, the district has the

powers and duties provided by the general law of this state,

including Chapter 36, Water Code, applicable to groundwater

conservation districts created under Section 59, Article XVI,

Texas Constitution.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.102. CONTRACTS. The district may enter into a

contract with any person, public or private, for any purpose

authorized by law.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.103. APPLICABILITY OF DISTRICT REGULATIONS.

Groundwater regulation under this chapter applies to all persons

except as exempted from the requirement to obtain a permit for a

well under Section 36.117, Water Code, or this chapter.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.104. WELL SPACING RULES; EXEMPTIONS. (a) Except as

provided by Subsection (b), the district shall exempt from the

well spacing requirements adopted by the district any well that

is completed on or before the effective date of those

requirements.

(b) The district may provide by rule that a well may lose its

exemption under this section if the well is modified in a manner

that substantially increases the capacity of the well after the

effective date of the well spacing requirements adopted by the

district.

(c) Except as provided by this section and notwithstanding

Section 8856.103, the district may require any well or class of

wells exempt from permitting under Chapter 36, Water Code, to

comply with the well spacing requirements adopted by the

district. The district shall apply well spacing requirements

uniformly to any well or class of wells based on the size or

capacity of the well and without regard to the type of use of the

groundwater produced by the well.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.105. REGISTRATION AND REPORTING REQUIREMENTS FOR

CERTAIN EXEMPT WELLS. The district may adopt rules that require

the owner or operator of a well or class of wells exempt from

permitting under Section 36.117, Water Code, to register the well

with the district and, except for a well exempt from permitting

under Subsection (b)(1) of that section, to report groundwater

withdrawals from the well using reasonable and appropriate

reporting methods and frequency.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.106. ENFORCEMENT. (a) The district may enforce this

chapter in the manner provided by Chapter 36, Water Code. In

lieu of a remedy available to the district under Section 36.102,

Water Code, or in addition to those remedies, the district may

impose a fee in addition to a fee assessed under Section 8856.152

on a person producing groundwater in violation of a rule of the

district, including the failure or refusal to comply with any

order or rule of the district to reduce or cease groundwater

usage. The purpose of a fee authorized under this subsection is

to serve as a disincentive to producing groundwater except as

authorized by the district.

(b) A fee imposed under Subsection (a) may not exceed an amount

equal to 10 times the amount of a fee assessed under Section

8856.152.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.107. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8856.151. TAXES PROHIBITED. The district may not impose a

tax. Sections 36.020(a) and 36.201-36.204, Water Code, do not

apply to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.

Sec. 8856.152. DISTRICT REVENUES. (a) The district by rule,

resolution, or order may establish, amend, pledge, encumber,

expend the proceeds from, and assess to any person production

fees based on the amount of groundwater authorized by permit to

be withdrawn from a well or on the amount of water actually

withdrawn, to enable the district to fulfill its purposes and

regulatory functions as provided by this chapter. The district

may use revenues generated by fees it assesses for any lawful

purpose.

(b) Notwithstanding any provision of general law to the

contrary, a fee authorized by Subsection (a) may not exceed:

(1) $1 per acre-foot annually for groundwater used for

agricultural purposes; or

(2) 30 cents per thousand gallons annually for groundwater used

for nonagricultural purposes.

(c) Notwithstanding any provision of general law or this chapter

to the contrary, if any, the district may assess a production fee

under this section for groundwater produced from a well or class

of wells exempt from permitting under Section 36.117, Water Code,

except for a well exempted under Subsection (b)(1) of that

section. A production fee assessed by the district under this

subsection must be based on the amount of groundwater actually

withdrawn from the well and may not exceed the amount established

by the district for permitted uses under Subsection (b)(2) of

this section.

(d) Notwithstanding Section 36.1071(f), Water Code, the district

by rule, resolution, or order before the adoption of its

management plan may:

(1) establish, assess, and enforce the collection of production

fees under this section; and

(2) establish and enforce metering and reporting requirements,

except for a well exempt from permitting under Section

36.117(b)(1), Water Code.

(e) The district by rule may establish a temporary or permanent

discounted fee rate for persons who prepay production fees to the

district under this section on or before the dates established by

district rule.

(f) The district may not charge an export fee to a producer of

groundwater withdrawn from a well in the district who distributes

the water to any part of the territory under the provider's

certificate of public convenience and necessity even if the

territory is outside the district's boundaries.

Added by Acts 2009, 81st Leg., R.S., Ch.

248, Sec. 1, eff. May 27, 2009.