76R10705 E                           
         By Cook, et al.                                       H.B. No. 2237
         Substitute the following for H.B. No. 2237:
         By Counts                                         C.S.H.B. No. 2237
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, administration, powers, duties,
 1-3     operation, and financing of the Lost Pines Groundwater Conservation
 1-4     District.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  CREATION.  (a)  A groundwater conservation
 1-7     district, to be known as the Lost Pines Groundwater Conservation
 1-8     District, is created in Bastrop and Lee counties subject to a
 1-9     confirmation election held as provided by Section 8 of this Act.
1-10     The district is a governmental agency and a body politic and
1-11     corporate.
1-12           (b)  The district is created under and is essential to
1-13     accomplish the purposes of Section 59, Article XVI, Texas
1-14     Constitution.
1-15           SECTION 2.  DEFINITION.  In this Act, "district" means the
1-16     Lost Pines Groundwater Conservation District.
1-17           SECTION 3.  BOUNDARIES.  Subject to Section 8(d) of this Act,
1-18     the boundaries of the district are coextensive with the boundaries
1-19     of Bastrop and Lee counties.
1-20           SECTION 4.  FINDING OF BENEFIT.  All of the land and other
1-21     property included within the boundaries of the district will be
1-22     benefited by the works and projects that are to be accomplished by
1-23     the district under powers conferred by Section 59, Article XVI,
1-24     Texas Constitution.  The district is created to serve a public use
 2-1     and benefit.
 2-2           SECTION 5.  POWERS.  (a)  Except as provided by Subsection
 2-3     (b) of this section, the district has all of the rights, powers,
 2-4     privileges, authority, functions, and duties provided by the
 2-5     general law of this state, including Chapter 36, Water Code,
 2-6     applicable to groundwater conservation districts created under
 2-7     Section 59, Article XVI, Texas Constitution.  Chapter 49, Water
 2-8     Code, does not apply to the district.  This Act prevails over any
 2-9     provision of general law that is in conflict or inconsistent with
2-10     this Act.
2-11           (b)  The district may not levy or collect taxes.
2-12           (c)  Notwithstanding Subsection (a)  of this section, the
2-13     following provisions prevail over a conflicting or inconsistent
2-14     provision in this Act:
2-15                 (1)  Sections 36.107-36.108, Water Code;
2-16                 (2)  Sections 36.159-36.161, Water Code; and
2-17                 (3)  Subchapter I, Chapter 36, Water Code.
2-18           SECTION 6.  BOARD OF DIRECTORS.  (a)  The district is
2-19     governed by a board of 12 directors.
2-20           (b)  The directors shall be appointed as follows:
2-21                 (1)  the Bastrop County Commissioners Court shall
2-22     appoint two directors, one of whom must be a representative of
2-23     business and industry;
2-24                 (2)  the Lee County Commissioners Court shall appoint
2-25     two directors, one of whom must be a representative of business and
2-26     industry; and
2-27                 (3)  the governing bodies of each of the following
 3-1     entities shall appoint one director:
 3-2                       (A)  the City of Bastrop;
 3-3                       (B)  the City of Elgin;
 3-4                       (C)  the City of Smithville;
 3-5                       (D)  the Lower Colorado River Authority;
 3-6                       (E)  Aqua Water Supply Corporation;
 3-7                       (F)  the City of Giddings;
 3-8                       (G)  the City of Lexington; and
 3-9                       (H)  Lee County Water Supply Corporation.
3-10           (c)  Each appointing entity shall appoint initial directors
3-11     as soon as practicable but not later than 45 days after the
3-12     effective date of this Act.
3-13           (d)  The initial directors shall draw lots to determine:
3-14                 (1)  which six directors shall serve four-year terms
3-15     that expire at the end of the calendar year four years after the
3-16     effective date of this Act; and
3-17                 (2)  which six directors shall serve two-year terms
3-18     that expire at the end of the calendar year two years after the
3-19     effective date of this Act.
3-20           (e)  Except as provided by Subsection (d) of this section,
3-21     directors serve staggered four-year terms.
3-22           (f)  Directors may serve consecutive terms.
3-23           (g)  Each director must qualify to serve as director in the
3-24     manner provided by Section 36.055, Water Code.
3-25           (h)  A director serves until the director's successor has
3-26     qualified.
3-27           (i)  If a vacancy occurs on the board, the governing body of
 4-1     the entity that appointed the director who vacated the office shall
 4-2     appoint a director to serve the remainder of the term.
 4-3           SECTION 7.  ORGANIZATIONAL MEETING. (a)  As soon as
 4-4     practicable after the initial directors are appointed and have
 4-5     qualified as provided by this Act, the directors shall hold the
 4-6     organizational meeting of the board.
 4-7           (b)  The directors shall hold the meeting:
 4-8                 (1)  at a location within the district agreeable to a
 4-9     majority of the directors; or
4-10                 (2)  at the Bastrop County Courthouse if the directors
4-11     cannot agree on a location.
4-12           SECTION 8.  CONFIRMATION ELECTION.  (a)  The initial board of
4-13     directors shall call and hold an election in each of the two
4-14     counties, individually, to confirm the establishment of the
4-15     district.
4-16           (b)  Section 41.001(a), Election Code, does not apply to a
4-17     confirmation election held as provided by this section.
4-18           (c)  The ballot for the election must be printed to provide
4-19     for voting for or against the proposition: "The creation of the
4-20     Lost Pines Groundwater Conservation District."
4-21           (d)  If a majority of the qualified voters voting in the
4-22     election in each county vote to confirm the district, the district
4-23     is confirmed as to both Bastrop and Lee counties.  If a majority of
4-24     the qualified voters voting in the election in only one of the two
4-25     counties vote to confirm the creation of the district, the district
4-26     is created coterminous with the boundaries of that county only.
4-27           (e)  The offices of the initial directors appointed by the
 5-1     commissioners court and the city councils of municipalities in a
 5-2     county that does not confirm the district lapse effective on the
 5-3     date the canvass of the vote failing to confirm the district is
 5-4     recorded.  If the terms of the remaining initial directors are not
 5-5     staggered as provided for by the drawing under Section 6(d) of this
 5-6     Act, the remaining initial directors shall redraw lots to provide
 5-7     for staggered terms.
 5-8           (f)  If the establishment of the district has not been
 5-9     confirmed at an election held under this section before the second
5-10     anniversary of the effective date of this Act, this Act expires on
5-11     that date.
5-12           SECTION 9.  PERMIT EXEMPTIONS.  (a)  Except as provided by
5-13     Subsections (b) and (c) of this section and Sections 10-12 of this
5-14     Act, Section 36.117, Water Code, applies to the district and to all
5-15     wells within the district.
5-16           (b)  The district may not require a permit for, impose a fee
5-17     on, or restrict production of a well that is:
5-18                 (1)  not capable of producing more than 50,000 gallons
5-19     of groundwater a day; or
5-20                 (2)  exempt under Section 36.117(e), Water Code, as a
5-21     well permitted for mining purposes by the Railroad Commission of
5-22     Texas, to the extent that the well does not produce a greater
5-23     volume of groundwater than that produced for mining purposes.
5-24           (c)  The district may require a permit for, impose a fee on,
5-25     or restrict production and withdrawals from a well described by
5-26     Subsection (b)(2) of this section for the volume of groundwater
5-27     produced that exceeds the volume produced for mining purposes.
 6-1           SECTION 10.  TRANSFER PERMITS FOR CERTAIN EXEMPT WELLS;
 6-2     TRANSPORTATION FEE.  (a)  The district, without notice or hearing,
 6-3     shall issue to a person who desires to transfer water from the
 6-4     district from a well exempt under Section 9(b)(2) of this Act an
 6-5     unconditional permit for the volume of groundwater produced from
 6-6     that well for mining purposes.  The district may require a permit
 6-7     and charge fees to authorize the transfer from the district of any
 6-8     volume of groundwater produced from a well exempt under Section
 6-9     9(b)(2) of this Act that exceeds the volume produced for mining
6-10     purposes.
6-11           (b)  The district may not charge a pumping fee under Section
6-12     13(a) of this Act for a well exempt under Section 9(b)(2) of this
6-13     Act but may charge a water transportation fee for all mining water
6-14     transported from the district to compensate the district for the
6-15     conservation, preservation, protection, recharging, and prevention
6-16     of waste of groundwater and of groundwater reservoirs or their
6-17     subdivisions and for controlling subsidence caused by withdrawal of
6-18     water from those groundwater reservoirs or their subdivisions.  The
6-19     water transportation fee may not exceed the fee charged to other
6-20     persons who transport water from the district or a fee charged for
6-21     withdrawing water under Section 13(a) of this Act.
6-22           (c)  Groundwater produced for mining that is  discharged and
6-23     not sold may not be considered to have been transferred from the
6-24     district.
6-25           SECTION 11.  PERMITS AND OTHER REQUIREMENTS FOR CERTAIN WATER
6-26     UNDER CONTRACT.  (a)  The district shall issue permits for the
6-27     transfer, production, or withdrawal of groundwater to a person who
 7-1     before March 4, 1999, contracted in writing to supply to another
 7-2     person groundwater withdrawn from one or more existing or proposed
 7-3     wells within the district.  Except as provided by Subsection (b) of
 7-4     this section, the permits shall authorize the production or
 7-5     withdrawal annually of a total volume of groundwater not to exceed
 7-6     the smallest of the following volumes:
 7-7                 (1)  the total volume of groundwater in the district
 7-8     annually available for permitting as determined by the district,
 7-9     taking into consideration relevant studies performed by the Texas
7-10     Water Development Board or other similar studies; or
7-11                 (2)  a volume equal to 40,000 acre-feet annually from
7-12     within the district, less the total volume of water the supplier
7-13     produces annually within the district for mining purposes.
7-14           (b)  A permit or group of permits issued to the same person
7-15     under Subsection (a) of this section may not authorize that person
7-16     to produce or withdraw annually in any county in the district a
7-17     volume of groundwater that exceeds a volume equal to 30,000
7-18     acre-feet, less the total volume of groundwater the supplier
7-19     produces or withdraws annually in the county for mining purposes.
7-20           (c)  The Railroad Commission of Texas shall ensure that all
7-21     requirements imposed by that agency on a supplier to mitigate
7-22     impacts caused by withdrawals of groundwater for mining purposes in
7-23     any county in the district apply also to all withdrawals of
7-24     groundwater in that county that are required to be permitted by the
7-25     district under Subsection (a)  of this section.
7-26           (d)  The district under Section 36.116, Water Code, may
7-27     provide for the spacing of nonexempt wells proposed by a supplier,
 8-1     and the construction of those wells is subject to rules adopted by
 8-2     the district.
 8-3           SECTION 12.  EMERGENCY TRANSFER BY RETAIL PUBLIC UTILITY.  A
 8-4     retail public utility that owns wells located in and permitted by
 8-5     the district may transport water outside the district for emergency
 8-6     purposes for a period not to exceed 90 days.  Transportation of
 8-7     water outside the district under this section may be voluntary or
 8-8     may be directed by the Texas Natural Resource Conservation
 8-9     Commission.
8-10           SECTION 13.  FEES.  (a)  The board of directors of the
8-11     district by rule may impose reasonable fees on the owner, the
8-12     operator, or both the owner and the operator of each well in the
8-13     district, regardless of the date on which the well was drilled or
8-14     began producing, if a permit is issued for the well by the district
8-15     and the well is not exempt from regulation by the district.
8-16           (b)  The district may use all fees collected under applicable
8-17     law for all purposes necessary to carry out the purposes of this
8-18     Act and the powers granted by Chapter 36, Water Code, as the
8-19     district considers necessary for the district's protection,
8-20     conservation, and regulation of groundwater, including
8-21     administrative and operating expense.
8-22           (c)  A fee that is based on the amount of water to be
8-23     withdrawn from a well may not exceed the limits set by Section
8-24     36.205(c), Water Code.
8-25           SECTION 14.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
8-26     (a)  The proper and legal notice of the intention to introduce this
8-27     Act, setting forth the general substance of this Act, has been
 9-1     published as provided by law, and the notice and a copy of this Act
 9-2     have been furnished to all persons, agencies, officials, or
 9-3     entities to which they are required to be furnished by the
 9-4     constitution and other laws of this state, including the governor,
 9-5     who has submitted the notice and Act to the Texas Natural Resource
 9-6     Conservation Commission.
 9-7           (b)  The Texas Natural Resource Conservation Commission has
 9-8     filed its recommendations relating to this Act with the governor,
 9-9     lieutenant governor, and speaker of the house of representatives
9-10     within the required time.
9-11           (c)  All requirements of the constitution and laws of this
9-12     state and the rules and procedures of the legislature with respect
9-13     to the notice, introduction, and passage of this Act are fulfilled
9-14     and accomplished.
9-15           SECTION 15.  EMERGENCY.  The importance of this legislation
9-16     and the crowded condition of the calendars in both houses create an
9-17     emergency and an imperative public necessity that the
9-18     constitutional rule requiring bills to be read on three several
9-19     days in each house be suspended, and this rule is hereby suspended,
9-20     and that this Act take effect and be in force from and after its
9-21     passage, and it is so enacted.