By Cook                                               H.B. No. 2237
         76R3618 MI-F                           
                                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 Bastrop-Lee Counties Groundwater
 1-4     Conservation District; granting the power of eminent domain.
 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 Bastrop-Lee Counties Groundwater
 1-8     Conservation District, is created in Bastrop and Lee counties
 1-9     subject to a confirmation election held as provided by Section 9 of
1-10     this Act. The district is a governmental agency and a body politic
1-11     and 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     Bastrop-Lee Counties Groundwater Conservation District.
1-17           SECTION 3.  BOUNDARIES.  The boundaries of the district are
1-18     coextensive with the boundaries of Bastrop and Lee counties.
1-19           SECTION 4.  FINDING OF BENEFIT.  All of the land and other
1-20     property included within the boundaries of the district will be
1-21     benefited by the works and projects that are to be accomplished by
1-22     the district under powers conferred by Section 59, Article XVI,
1-23     Texas Constitution.  The district is created to serve a public use
1-24     and benefit.
 2-1           SECTION 5.  POWERS.  (a)  Except as provided by Subsections
 2-2     (c)-(e) of this section, the district has all of the rights,
 2-3     powers, privileges, authority, functions, and duties provided by
 2-4     the general law of this state, including Chapter 36, Water Code,
 2-5     applicable to groundwater conservation districts created under
 2-6     Section 59, Article XVI, Texas Constitution.  Chapter 49, Water
 2-7     Code, does not apply to the district.  This Act prevails over any
 2-8     provision of general law that is in conflict or inconsistent with
 2-9     this Act.
2-10           (b)  The rights, powers, privileges, authority, functions,
2-11     and duties of the district are subject to the continuing right of
2-12     supervision of the state to be exercised by and through the Texas
2-13     Natural Resource Conservation Commission.
2-14           (c)  The district may not levy or collect taxes.
2-15           (d)  The district may not require a permit for, impose a fee
2-16     on, or restrict production of a well that is not capable of
2-17     producing more than 50,000 gallons of groundwater a day.
2-18           (e)  Notwithstanding Subsection (a)  of this section, the
2-19     following provisions prevail over a conflicting or inconsistent
2-20     provision in this Act:
2-21                 (1)  Sections 36.107-36.108, Water Code;
2-22                 (2)  Sections 36.159-36.161, Water Code; and
2-23                 (3)  Subchapter I, Chapter 36, Water Code.
2-24           SECTION 6.  WATER EXPORT RULES.  (a)  The board of directors
2-25     of the district by rule shall define "export line" to mean the
2-26     outer perimeter of the area that extends five miles from the outer
2-27     perimeter of the combined area described or delineated in
 3-1     certificates of convenience and necessity issued by the Texas
 3-2     Natural Resource Conservation Commission, in effect on January 1,
 3-3     1999, and held by:
 3-4                 (1)  Aqua Water Supply Corporation;
 3-5                 (2)  Manville Water Supply Corporation;
 3-6                 (3)  the City of Bastrop;
 3-7                 (4)  the City of Elgin;
 3-8                 (5)  the City of Smithville;
 3-9                 (6)  the City of Giddings;
3-10                 (7)  the City of Lexington; and
3-11                 (8)  Lee County Water Supply Corporation.
3-12           (b)  The board by rule may require a person to obtain a
3-13     permit from the district to transfer groundwater outside the export
3-14     line.  The rules must be consistent with Section 36.122, Water
3-15     Code, except that the export line is substituted for the district
3-16     boundaries.
3-17           (c)  This section does not affect the right of a retail
3-18     public utility listed in Subsection (a) of this section to contract
3-19     to provide wholesale or bulk water to a customer who resells water
3-20     for consumption within the export line without regard to whether
3-21     that water is provided under a certificate of convenience and
3-22     necessity.
3-23           (d)  This section does not restrict a retail public utility
3-24     listed in Subsection (a) of this section from transporting water
3-25     outside the export line for emergency purposes for a period not to
3-26     exceed 90 days.  Transportation of water outside the export line
3-27     under this subsection may be voluntary or may be directed by the
 4-1     Texas Natural Resource Conservation Commission.
 4-2           (e)  On or before the 30th day after the effective date of
 4-3     this Act, each retail public utility listed in Subsection (a) of
 4-4     this section shall file with the district the certificate of
 4-5     convenience and  necessity held by that utility and in effect on
 4-6     January 1, 1999.
 4-7           SECTION 7.  FEES.  (a)  The board of directors of the
 4-8     district by rule may impose reasonable fees on the owner, operator,
 4-9     or both the owner and the operator of each well in the district,
4-10     regardless of the date on which the well was drilled or began
4-11     producing, if a permit is issued for the well by the district and
4-12     the well is not exempt from regulation by the district.
4-13           (b)  The district may use all fees collected under applicable
4-14     law for all purposes necessary to carry out the purposes of this
4-15     Act and the powers granted by Chapter 36, Water Code, as the
4-16     district considers necessary for the district's protection,
4-17     conservation, and regulation of groundwater, including
4-18     administrative and operating expense.
4-19           (c)  A fee that is based on the amount of water to be
4-20     withdrawn from a well may not exceed the limits set by Section
4-21     36.205(c), Water Code.
4-22           SECTION 8.  BOARD OF DIRECTORS.  (a)  The district is
4-23     governed by a board of 10 directors.
4-24           (b)  The governing bodies of each of the following entities
4-25     shall appoint one director:
4-26                 (1)  the Bastrop County Commissioners Court;
4-27                 (2)  the City of Bastrop;
 5-1                 (3)  the City of Elgin;
 5-2                 (4)  the City of Smithville;
 5-3                 (5)  the Lower Colorado River Authority;
 5-4                 (6)  Aqua Water Supply Corporation;
 5-5                 (7)  the Lee County Commissioners Court;
 5-6                 (8)  the City of Giddings;
 5-7                 (9)  the City of Lexington; and
 5-8                 (10)  Lee County Water Supply Corporation.
 5-9           (c)  Each governing body shall appoint an initial director as
5-10     soon as practicable, but not later than 45 days after the effective
5-11     date of this Act.
5-12           (d)  The initial directors shall draw lots to determine:
5-13                 (1)  which five directors shall serve four-year terms
5-14     that expire at the end of the calendar year four years after the
5-15     effective date of this Act; and
5-16                 (2)  which five directors shall serve two-year terms
5-17     that expire at the end of the calendar year two years after the
5-18     effective date of this Act.
5-19           (e)  Except as provided by Subsection (d) of this section,
5-20     directors serve staggered four-year terms.
5-21           (f)  Directors may serve consecutive terms.
5-22           (g)  Each director must qualify to serve as director in the
5-23     manner provided by Section 36.055, Water Code.
5-24           (h)  A director serves until the director's successor has
5-25     qualified.
5-26           (i)  A director may not receive compensation for serving on
5-27     the board but is entitled to reimbursement for actual reasonable
 6-1     expenses incurred in performing duties as a director.
 6-2           (j)  If a vacancy occurs on the board, the governing body of
 6-3     the entity that appointed the director who vacated the office shall
 6-4     appoint a director to serve the remainder of the term.
 6-5           SECTION 9.  ORGANIZATIONAL MEETING. (a)  As soon as
 6-6     practicable after the initial directors are appointed and have
 6-7     qualified as provided by this Act, the directors shall hold the
 6-8     organizational meeting of the board.
 6-9           (b)  The directors shall hold the meeting:
6-10                 (1)  at a location within the district agreeable to a
6-11     majority of the directors; or
6-12                 (2)  at the Bastrop County Courthouse if the directors
6-13     cannot agree on a location.
6-14           SECTION 10.  CONFIRMATION ELECTION.  (a)  The initial board
6-15     of directors shall call and hold an election in each of the two
6-16     counties, individually, to confirm the establishment of the
6-17     district.
6-18           (b)  Section 41.001(a), Election Code, does not apply to a
6-19     confirmation election held as provided by this section.
6-20           SECTION 11.   FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
6-21     (a)  The proper and legal notice of the intention to introduce this
6-22     Act, setting forth the general substance of this Act, has been
6-23     published as provided by law, and the notice and a copy of this Act
6-24     have been furnished to all persons, agencies, officials, or
6-25     entities to which they are required to be furnished by the
6-26     constitution and other laws of this state, including the governor,
6-27     who has submitted the notice and Act to the Texas Natural Resource
 7-1     Conservation Commission.
 7-2           (b)  The Texas Natural Resource Conservation Commission has
 7-3     filed its recommendations relating to this Act with the governor,
 7-4     lieutenant governor, and speaker of the house of representatives
 7-5     within the required time.
 7-6           (c)  All requirements of the constitution and laws of this
 7-7     state and the rules and procedures of the legislature with respect
 7-8     to the notice, introduction, and passage of this Act are fulfilled
 7-9     and accomplished.
7-10           SECTION 12.  EMERGENCY.  The importance of this legislation
7-11     and the crowded condition of the calendars in both houses create an
7-12     emergency and an imperative public necessity that the
7-13     constitutional rule requiring bills to be read on three several
7-14     days in each house be suspended, and this rule is hereby suspended,
7-15     and that this Act take effect and be in force from and after its
7-16     passage, and it is so enacted.