By Hilderbran                                         H.B. No. 3808
         76R4258 WP-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 Kendall County Groundwater
 1-4     Conservation 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 Kendall County Groundwater
 1-8     Conservation District, is created in Kendall County, subject to
 1-9     approval at a confirmation election under Section 9 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           (c)  The district may develop and implement regulatory,
1-16     conservation, and recharge programs that preserve and protect
1-17     underground water resources located in the district.
1-18           SECTION 2.  DEFINITIONS.  In this Act:
1-19                 (1)  "District" means the Kendall County Groundwater
1-20     Conservation District.
1-21                 (2)  "Retail public utility" has the meaning assigned
1-22     by Section 13.002, Water Code.
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.  (a)  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           (b)  The rights, powers, privileges, authority, functions,
2-18     and duties of the district are subject to the continuing right of
2-19     supervision of the state to be exercised by and through the Texas
2-20     Natural Resource Conservation Commission.
2-21           SECTION 6.  ELECTION OF DIRECTORS.  (a)  The directors of the
2-22     district shall be elected according to the commissioners precinct
2-23     method as provided by this Act.
2-24           (b)  One director shall be elected by the qualified voters of
2-25     the entire district and one director shall be elected from each
2-26     county commissioners precinct by the qualified voters of that
2-27     precinct.
 3-1           (c)  A person shall indicate on the application for a place
 3-2     on the ballot the precinct that the person seeks to represent or
 3-3     that the person seeks to represent the district at large.
 3-4           (d)  At the first election after the county commissioners
 3-5     precincts are redrawn under Section 18, Article V, Texas
 3-6     Constitution, four new directors shall be elected to represent the
 3-7     precincts.  The directors elected shall draw lots to determine
 3-8     their terms.
 3-9           SECTION 7.  BOARD OF DIRECTORS.  (a)  The district is
3-10     governed by a board of five directors.
3-11           (b)  A vacancy in the office of director shall be filled by
3-12     appointment of the board until the next election for directors.  At
3-13     the next election for directors, a person shall be elected to fill
3-14     the position.  If the position is not scheduled to be filled at the
3-15     election, the person elected to fill the position shall serve only
3-16     for the remainder of the unexpired term.
3-17           (c)  To be eligible to serve as director a person must be a
3-18     registered voter in the precinct from which the person is elected
3-19     or appointed if representing a precinct or in the district if
3-20     representing the district at large.
3-21           SECTION 8.  TEMPORARY DIRECTORS.  (a)  The temporary board of
3-22     directors is composed of:
3-23                 (1)  James W. (Bill) Gooden--at large
3-24                 (2)  John C. Kight--precinct 1
3-25                 (3)  L. M. Holman--precinct 2
3-26                 (4)  Darrel Lux--precinct 3
3-27                 (5)  Duane DuBose--precinct 4
 4-1           (b)  If a temporary director fails to qualify for office, the
 4-2     temporary directors who have qualified shall appoint a person to
 4-3     fill the vacancy.  If at any time there are fewer than three
 4-4     qualified temporary directors, the Texas Natural Resource
 4-5     Conservation Commission shall appoint the necessary number of
 4-6     persons to fill all vacancies on the board.
 4-7           SECTION 9.  CONFIRMATION ELECTION.  (a)  The temporary board
 4-8     of directors shall call and hold an election to confirm
 4-9     establishment of the district.
4-10           (b)  Section 41.001(a), Election Code, does not apply to a
4-11     confirmation election held as provided by this section.
4-12           (c)  If a majority of the votes cast at the election favor
4-13     the creation of the district, the temporary directors shall declare
4-14     the district created.  If a majority of the votes cast at the
4-15     election are against the creation of the district, the temporary
4-16     directors shall declare the district defeated.  The temporary
4-17     directors shall file a copy of the election results with the Texas
4-18     Natural Resource Conservation Commission.
4-19           (d)  If a majority of the votes cast at the election are
4-20     against the creation of the district, the temporary directors may
4-21     call and hold subsequent elections to confirm establishment of the
4-22     district.  A subsequent election may not be held earlier than the
4-23     first anniversary of the date on which the previous election was
4-24     held.  If the district is not created before the fifth anniversary
4-25     of the effective date of this Act, this Act expires on that date.
4-26           (e)  Section 36.017(a), Water Code, does not apply to the
4-27     district.
 5-1           (f)  Except as provided by this section, a confirmation
 5-2     election must be conducted as provided by Sections 36.017(b)-(h),
 5-3     Water Code, and the Election Code.
 5-4           SECTION 10.  INITIAL DIRECTORS.  (a)  If creation of the
 5-5     district is confirmed under Section 9 of this Act, the temporary
 5-6     directors shall become the initial directors of the district and
 5-7     serve on the board of directors as provided by this section.
 5-8           (b)  The temporary directors for precincts 2 and 3 shall
 5-9     serve as initial directors until the first regular meeting of the
5-10     board of directors held after the first permanent directors'
5-11     election under Section 12 of this Act.  The temporary directors for
5-12     precincts 1 and 4 and the temporary director representing the
5-13     district at large shall serve as initial directors until the first
5-14     regular meeting of the board of directors held after the second
5-15     permanent directors' election under Section 12 of this Act.
5-16           SECTION 11.  SERVICE OF DIRECTORS.  (a)  Temporary directors
5-17     serve until the temporary directors become initial directors under
5-18     Section 10 of this Act or this Act expires under Section 9,
5-19     whichever occurs earlier.
5-20           (b)  Initial directors serve until permanent directors are
5-21     elected under Section 12 of this Act.
5-22           (c)  Permanent directors serve staggered four-year terms.
5-23           (d)  A director serves until the director's successor has
5-24     qualified.
5-25           (e)  Each director must qualify to serve as director in the
5-26     manner provided by Section 36.055, Water Code.         
5-27           SECTION 12.  ELECTION OF PERMANENT DIRECTORS.  Beginning in
 6-1     the second year after the year in which the district is authorized
 6-2     to be created at a confirmation election, an election shall be held
 6-3     in the district on the first Saturday in May every two years to
 6-4     elect the appropriate number of directors to the board.
 6-5           SECTION 13.  ADDITIONAL AUTHORITY.  (a)  The district may
 6-6     contract with one or more state agencies or other governmental
 6-7     bodies, including a county, a river authority, or another district
 6-8     to carry out any function of the district.
 6-9           (b)  Except for public water supply wells owned by retail
6-10     public utilities, the district may require a drilling permit before
6-11     a new well is drilled or an existing well is substantially altered.
6-12     Notwithstanding an exemption for a well under Section 36.117, Water
6-13     Code, written authorization granted by the district must be
6-14     received before a new well is drilled or an existing well is
6-15     substantially altered.
6-16           (c)  The district may participate in the construction,
6-17     implementation, and maintenance of best management practices for
6-18     water resource management in the district and may engage in and
6-19     promote the acceptance of best management practices through
6-20     education efforts sponsored by the district.  Construction,
6-21     implementation, and maintenance of best management practices must
6-22     address water quantity and quality practices such as brush
6-23     management, prescribed grazing, recharge structures, water and silt
6-24     detention and retention structures, plugging of abandoned wells,
6-25     and other treatment measures for the conservation of water
6-26     resources.
6-27           (d)  Except for public water supply wells owned by retail
 7-1     public utilities, reasonable fees, as determined by the district,
 7-2     may be imposed on an annual basis on each nonexempt well.  The
 7-3     district shall adopt any rules necessary for the assessment and
 7-4     collection of fees under this subsection.
 7-5           (e)  The district may use money collected from fees:
 7-6                 (1)  in any manner necessary for the management and
 7-7     operation of the district;
 7-8                 (2)  to pay all or part of the principal of and
 7-9     interest on district bonds or notes; and
7-10                 (3)  for any purpose consistent with the district's
7-11     certified water management plan, including making grants, loans, or
7-12     contractual payments to achieve, facilitate, or expedite the
7-13     development or distribution of alternative water supplies or
7-14     reductions in groundwater pumping.
7-15           (f)  The district may grant an exemption or other relief from
7-16     ad valorem taxes on property on which a water conservation
7-17     initiative has been implemented.  The district shall adopt rules to
7-18     implement this subsection.  A retail public utility shall receive
7-19     the same exemption or relief from ad valorem taxes on property as
7-20     any other customer of the district would receive.
7-21           SECTION 14.  PROHIBITED ACTS.  The district may not:
7-22                 (1)  impose an ad valorem property tax for
7-23     administrative, operation, or maintenance expenses that exceeds the
7-24     lesser of the rate approved by the majority of the qualified voters
7-25     voting in the election authorizing the tax, or five cents per $100
7-26     valuation;
7-27                 (2)  require the owner of a well used solely for
 8-1     domestic or livestock purposes to install a meter or measuring
 8-2     device on the well;
 8-3                 (3)  require a drilling, operating, or any other permit
 8-4     for a public water supply well if the Texas Natural Resource
 8-5     Conservation Commission approves the plan submitted for the
 8-6     installation of the well and the well is drilled and completed in
 8-7     accordance with the approved plan;
 8-8                 (4)  sell, transport, or export groundwater outside of
 8-9     the district; or
8-10                 (5)  enter into any contract or engage in any action to
8-11     supply water to any person in the service area of any municipality
8-12     or retail public utility located in the district, except with the
8-13     consent of the municipality or retail public utility.
8-14           SECTION 15.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
8-15     (a)  The proper and legal notice of the intention to introduce this
8-16     Act, setting forth the general substance of this Act, has been
8-17     published as provided by law, and the notice and a copy of this Act
8-18     have been furnished to all persons, agencies, officials, or
8-19     entities to which they are required to be furnished by the
8-20     constitution and other laws of this state, including the governor,
8-21     who has submitted the notice and Act to the Texas Natural Resource
8-22     Conservation Commission.
8-23           (b)  The Texas Natural Resource Conservation Commission has
8-24     filed its recommendations relating to this Act with the governor,
8-25     lieutenant governor, and speaker of the house of representatives
8-26     within the required time.
8-27           (c)  All requirements of the constitution and laws of this
 9-1     state and the rules and procedures of the legislature with respect
 9-2     to the notice, introduction, and passage of this Act are fulfilled
 9-3     and accomplished.
 9-4           SECTION 16.  EMERGENCY.  The importance of this legislation
 9-5     and the crowded condition of the calendars in both houses create an
 9-6     emergency and an imperative public necessity that the
 9-7     constitutional rule requiring bills to be read on three several
 9-8     days in each house be suspended, and this rule is hereby suspended,
 9-9     and that this Act take effect and be in force from and after its
9-10     passage, and it is so enacted.