By Hilderbran                                         H.B. No. 3808
         Substitute the following for H.B. No. 3808:
         By Counts                                         C.S.H.B. No. 3808
                                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 Bergesland 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 Bergesland Groundwater Conservation
 1-8     District, is created in Kendall County, subject to approval at a
 1-9     confirmation election under Section 9 of this Act.  The district is
1-10     a governmental agency and a body politic and corporate.
1-11           (b)  The district is created under and is essential to
1-12     accomplish the purposes of Section 59, Article XVI, Texas
1-13     Constitution.
1-14           (c)  The district may develop and implement regulatory,
1-15     conservation, and recharge programs that preserve and protect
1-16     underground water resources located in the district.
1-17           SECTION 2.  DEFINITIONS.  In this Act:
1-18                 (1)  "District" means the Bergesland Groundwater
1-19     Conservation District.
1-20                 (2)  "Retail public utility" means a retail public
1-21     utility as defined by Section 13.002, Water Code, that is providing
1-22     service in the district on the effective date of this Act.
1-23                 (3)  "Well" means any excavation drilled or dug into
1-24     the ground that may intercept or penetrate a water bearing strata
 2-1     or formation.
 2-2           SECTION 3.  BOUNDARIES.  The boundaries of the district are
 2-3     coextensive with the boundaries of Kendall County.
 2-4           SECTION 4.  FINDING OF BENEFIT.  All of the land and other
 2-5     property included within the boundaries of the district will be
 2-6     benefited by the works and projects that are to be accomplished by
 2-7     the district under powers conferred by Section 59, Article XVI,
 2-8     Texas Constitution.  The district is created to serve a public use
 2-9     and benefit.
2-10           SECTION 5.  POWERS.  Except as provided by this Act, the
2-11     district has all of the rights, powers, privileges, authority,
2-12     functions, and duties provided by the general law of this state,
2-13     including Chapter 36, Water Code, applicable to groundwater
2-14     conservation districts created under Section 59, Article XVI, Texas
2-15     Constitution.  This Act prevails over any provision of general law
2-16     that is in conflict or inconsistent with this Act.
2-17           SECTION 6.  ELECTION OF DIRECTORS.  (a)  The directors of the
2-18     district shall be elected according to the commissioners precinct
2-19     method as provided by this Act.
2-20           (b)  One director shall be elected by the qualified voters of
2-21     the entire district and one director shall be elected from each
2-22     county commissioners precinct by the qualified voters of that
2-23     precinct.
2-24           (c)  A person shall indicate on the application for a place
2-25     on the ballot the precinct that the person seeks to represent or
2-26     that the person seeks to represent the district at large.
2-27           SECTION 7.  BOARD OF DIRECTORS.  (a)  The district is
 3-1     governed by a board of five directors.
 3-2           (b)  A vacancy in the office of director shall be filled by
 3-3     appointment of the board until the next election for directors.  At
 3-4     the next election for directors, a person shall be elected to fill
 3-5     the position.  If the position is not scheduled to be filled at the
 3-6     election, the person elected to fill the position shall serve only
 3-7     for the remainder of the unexpired term.
 3-8           (c)  To be eligible to serve as director a person must be a
 3-9     registered voter in the precinct from which the person is elected
3-10     or appointed if representing a precinct or in the district if
3-11     representing the district at large.
3-12           SECTION 8.  TEMPORARY DIRECTORS.  (a)  The temporary board of
3-13     directors is composed of:
3-14                 (1)  James W. (Bill) Gooden--at large
3-15                 (2)  John C. Kight--precinct 1
3-16                 (3)  L. M. Holman--precinct 2
3-17                 (4)  Darrel Lux--precinct 3
3-18                 (5)  Duane DuBose--precinct 4
3-19           (b)  If a temporary director fails to qualify for office, the
3-20     temporary directors who have qualified shall appoint a person to
3-21     fill the vacancy.  If at any time there are fewer than three
3-22     qualified temporary directors, the Texas Natural Resource
3-23     Conservation Commission shall appoint the necessary number of
3-24     persons to fill all vacancies on the board.
3-25           SECTION 9.  CONFIRMATION ELECTION.  (a)  The temporary board
3-26     of directors shall call and hold an election to confirm
3-27     establishment of the district.
 4-1           (b)  Section 41.001(a), Election Code, does not apply to a
 4-2     confirmation election held as provided by this section.
 4-3           (c)  If a majority of the votes cast at the election favor
 4-4     the creation of the district, the temporary directors shall declare
 4-5     the district created.  If a majority of the votes cast at the
 4-6     election are against the creation of the district, the temporary
 4-7     directors shall declare the district defeated.  The temporary
 4-8     directors shall file a copy of the election results with the Texas
 4-9     Natural Resource Conservation Commission.
4-10           (d)  If a majority of the votes cast at the election are
4-11     against the creation of the district, the temporary directors may
4-12     call and hold subsequent elections to confirm establishment of the
4-13     district.  A subsequent election may not be held earlier than the
4-14     first anniversary of the date on which the previous election was
4-15     held.  If the district is not created before the fifth anniversary
4-16     of the effective date of this Act, this Act expires on that date.
4-17           (e)  Section 36.017(a), Water Code, does not apply to the
4-18     district.
4-19           (f)  Except as provided by this section, a confirmation
4-20     election must be conducted as provided by Sections 36.017(b)-(h),
4-21     Water Code, and the Election Code.
4-22           SECTION 10.  INITIAL DIRECTORS.  (a)  If creation of the
4-23     district is confirmed under Section 9 of this Act, the temporary
4-24     directors shall become the initial directors of the district and
4-25     serve on the board of directors as provided by this section.
4-26           (b)  The temporary directors for precincts 2 and 3 shall
4-27     serve as initial directors until the first regular meeting of the
 5-1     board of directors held after the first permanent directors'
 5-2     election under Section 12 of this Act.  The temporary directors for
 5-3     precincts 1 and 4 and the temporary director representing the
 5-4     district at large shall serve as initial directors until the first
 5-5     regular meeting of the board of directors held after the second
 5-6     permanent directors' election under Section 12 of this Act.
 5-7           SECTION 11.  SERVICE OF DIRECTORS.  (a)  Temporary directors
 5-8     serve until the temporary directors become initial directors under
 5-9     Section 10 of this Act or this Act expires under Section 9,
5-10     whichever occurs earlier.
5-11           (b)  Initial directors serve until permanent directors are
5-12     elected under Section 12 of this Act.
5-13           (c)  Permanent directors serve staggered four-year terms.
5-14           (d)  A director serves until the director's successor has
5-15     qualified.
5-16           (e)  Each director must qualify to serve as director in the
5-17     manner provided by Section 36.055, Water Code.         
5-18           SECTION 12.  ELECTION OF PERMANENT DIRECTORS.  Beginning in
5-19     the second year after the year in which the district is authorized
5-20     to be created at a confirmation election, an election shall be held
5-21     in the district on the first Saturday in May every two years to
5-22     elect the appropriate number of directors to the board.
5-23           SECTION 13.  ADDITIONAL AUTHORITY.  (a)  The district may
5-24     contract with one or more state agencies or other governmental
5-25     bodies, including a county, a river authority, or another district
5-26     to carry out any function of the district.
5-27           (b)  Except for public water supply wells owned by retail
 6-1     public utilities, the district may require a drilling permit before
 6-2     a new well is drilled or an existing well is substantially altered.
 6-3     Notwithstanding an exemption for a well under Section 36.117, Water
 6-4     Code, written authorization granted by the district must be
 6-5     received before a new well is drilled or an existing well is
 6-6     substantially altered.
 6-7           (c)  The district may participate in the construction,
 6-8     implementation, and maintenance of best management practices for
 6-9     water resource management in the district and may engage in and
6-10     promote the acceptance of best management practices through
6-11     education efforts sponsored by the district.  Construction,
6-12     implementation, and maintenance of best management practices must
6-13     address water quantity and quality practices such as brush
6-14     management, prescribed grazing, recharge structures, water and silt
6-15     detention and retention structures, plugging of abandoned wells,
6-16     and other treatment measures for the conservation of water
6-17     resources.
6-18           (d)  Except for public water supply wells owned by retail
6-19     public utilities, reasonable fees, as determined by the district,
6-20     may be imposed on an annual basis on each nonexempt well.  The
6-21     district shall adopt any rules necessary for the assessment and
6-22     collection of fees under this subsection.
6-23           (e)  The district may use money collected from fees:
6-24                 (1)  in any manner necessary for the management and
6-25     operation of the district;
6-26                 (2)  to pay all or part of the principal of and
6-27     interest on district bonds or notes; and
 7-1                 (3)  for any purpose consistent with the district's
 7-2     certified water management plan, including making grants, loans, or
 7-3     contractual payments to achieve, facilitate, or expedite the
 7-4     development or distribution of alternative water supplies or
 7-5     reductions in groundwater pumping.
 7-6           (f)  The district may grant an exemption or other relief from
 7-7     ad valorem taxes on property on which a water conservation
 7-8     initiative has been implemented.  The district shall adopt rules to
 7-9     implement this subsection.  A retail public utility shall receive
7-10     the same exemption or relief from ad valorem taxes on property as
7-11     any other customer of the district would receive.
7-12           (g)  As a water conservation initiative to encourage retail
7-13     public utilities to obtain water supplies from sources other than
7-14     groundwater and to make reclaimed water available for use, the
7-15     district shall exempt from taxation the taxpayers served by a
7-16     retail public utility if the retail public utility obtains or has
7-17     committed to obtain a portion of its water supply from sources
7-18     other than groundwater and uses reclaimed water or makes or has
7-19     committed to make reclaimed water available for use.
7-20           SECTION 14.  PROHIBITED ACTS.  The district may not:
7-21                 (1)  impose an ad valorem property tax for
7-22     administrative, operation, or maintenance expenses that exceeds the
7-23     lesser of the rate approved by the majority of the qualified voters
7-24     voting in the election authorizing the tax, or three cents per $100
7-25     valuation;
7-26                 (2)  require the owner of a well used solely for
7-27     domestic or livestock purposes to install a meter or measuring
 8-1     device on the well;
 8-2                 (3)  require a drilling, operating, or any other permit
 8-3     for a public water supply well if the Texas Natural Resource
 8-4     Conservation Commission approves the plan submitted for the
 8-5     installation of the well and the well is drilled and completed in
 8-6     accordance with the approved plan;
 8-7                 (4)  sell, transport, or export groundwater outside of
 8-8     the district; or
 8-9                 (5)  enter into any contract or engage in any action to
8-10     supply water to any person in the service area of any municipality
8-11     or retail public utility located in the district, except with the
8-12     consent of the municipality or retail public utility.
8-13           SECTION 15.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
8-14     (a)  The proper and legal notice of the intention to introduce this
8-15     Act, setting forth the general substance of this Act, has been
8-16     published as provided by law, and the notice and a copy of this Act
8-17     have been furnished to all persons, agencies, officials, or
8-18     entities to which they are required to be furnished by the
8-19     constitution and other laws of this state, including the governor,
8-20     who has submitted the notice and Act to the Texas Natural Resource
8-21     Conservation Commission.
8-22           (b)  The Texas Natural Resource Conservation Commission has
8-23     filed its recommendations relating to this Act with the governor,
8-24     lieutenant governor, and speaker of the house of representatives
8-25     within the required time.
8-26           (c)  All requirements of the constitution and laws of this
8-27     state and the rules and procedures of the legislature with respect
 9-1     to the notice, introduction, and passage of this Act are fulfilled
 9-2     and accomplished.
 9-3           SECTION 16.  EMERGENCY.  The importance of this legislation
 9-4     and the crowded condition of the calendars in both houses create an
 9-5     emergency and an imperative public necessity that the
 9-6     constitutional rule requiring bills to be read on three several
 9-7     days in each house be suspended, and this rule is hereby suspended,
 9-8     and that this Act take effect and be in force from and after its
 9-9     passage, and it is so enacted.