Amend CSSB 2 (Committee Printing), in ARTICLE 3 of the bill
by striking PART 3 and substituting the following:
      PART 3.  HAYS TRINITY GROUNDWATER CONSERVATION DISTRICT
      SECTION 3.0301.  RATIFICATION OF CREATION.  The creation by
Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999
((SB 1911)), of the Hays Trinity Groundwater Conservation District
in Hays County is ratified as required by Section 15(a) of that
Act, subject to approval at a confirmation election under Section
3.0309 of this part.
      SECTION 3.0302.  DEFINITION.  In this part, "district" means
the Hays Trinity Groundwater Conservation District.
      SECTION 3.0303.  BOUNDARIES.  The boundaries of the district
are coextensive with the boundaries of Hays County, Texas,
excluding any area in Hays County that is, on the effective date of
this Act, within another groundwater conservation district with
authority to require a permit to drill or alter a well for the
withdrawal of groundwater.  Not later than the 30th day after the
date of the first meeting of the board of directors of the
district, and before a confirmation election is held, the board
shall prepare and file a description of district boundaries with
the Hays County clerk and the Texas Natural Resource Conservation
Commission.
      SECTION 3.0304.  GENERAL POWERS.  (a)  The district has all
of the rights, powers, privileges, authority, functions, 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.  This
part prevails over any provision of general law that is in conflict
or inconsistent with this part, including any provision of Chapter
1331, Acts of the 76th Legislature, Regular Session, 1999
((SB 1911)).
      (b)  Notwithstanding Subsection (a) of this section, the
following provisions prevail over a conflicting or inconsistent
provision of this part:
            (1)  Sections 36.1071-36.108, Water Code;
            (2)  Sections 36.159-36.161, Water Code; and
            (3)  Subchapter I, Chapter 36, Water Code.
      (c)  The district may not enter property to inspect an exempt
well without the property owner's permission.
      (d)  The Hays County Commissioners Court by resolution may
require an election to affirm or reverse a decision of the board of
directors of the district not later than six months after the date
of the decision.
      (e)  The district may not adopt standards for the
construction of a residential well that are more stringent than
state standards for a residential well.
      SECTION 3.0305.  EXEMPT WELLS.  (a)  The following wells are
exempt from the requirements of Chapter 36, Water Code, and may not
be regulated, permitted, or metered by the district:
            (1)  a well used for domestic use by a single private
residential household and producing less than 25,000 gallons per
day; and
            (2)  a well used for conventional farming and ranching
activities, including such intensive operations as aquaculture,
livestock feedlots, or poultry operations.
      (b)  The district may not require a permit to construct a
well described by Subsection (a)(2) of this section.
      (c)  A well used for dewatering and monitoring in the
production of coal or lignite is exempt from permit requirements,
regulations, and fees imposed by the district.
      SECTION 3.0306.  FISCAL RESPONSIBILITIES.  (a)  The district
annually shall prepare a budget showing proposed expenditures and
disbursements and estimated receipts and collections for the next
fiscal year and shall hold a public hearing on the proposed budget.
The district must publish notice of the hearing at least once in a
newspaper of general circulation in the county not later than the
10th day before the date of the hearing.  A taxpayer of the
district is entitled to appear at the hearing to be heard regarding
any item in the proposed budget.
      (b)  At the written request of the Hays County Commissioners
Court, the county auditor shall audit the performance of the
district.  The court may request a general audit of the performance
of the district or may request an audit of only one or more
district matters.
      SECTION 3.0307.  BOARD OF DIRECTORS. (a)  The district is
governed by a board of five directors.
      (b)  Temporary directors serve until initial directors are
elected under Section 3.0309 of this part.
      (c)  Initial directors serve until permanent directors are
elected under Section 3.0310 of this part.
      (d)  Permanent directors serve staggered two-year terms.
      (e)  Each director must qualify to serve as director in the
manner provided by Section 36.055, Water Code.
      (f)  A director serves until the director's successor has
qualified.
      (g)  If there is a vacancy on the board, the Hays County
Commissioners Court shall appoint a director to serve the remainder
of the term.
      (h)  A director may not receive a salary or other
compensation for service as a director but may be reimbursed for
actual expenses of attending meetings at the rate in effect for
employees of Hays County.
      SECTION 3.0308.  METHOD OF ELECTING DIRECTORS: SINGLE-MEMBER
DISTRICTS. (a)  The temporary directors shall draw five numbered,
single-member districts for electing directors.
      (b)  For the conduct of an election under Section 3.0309 or
Section 3.0310 of this part, the board shall provide for one
director to be elected from each of the single-member districts.  A
director elected from a single-member district represents the
residents of that single-member district.
      (c)  To be qualified to be a candidate for or to serve as
director, a person must be a registered voter in the single-member
district that the person represents or seeks to represent.
      (d)  The initial or permanent directors may revise the
districts as necessary or appropriate.  The board of directors
shall revise each single-member district after each federal
decennial census to reflect population changes.  At the first
election after the single-member districts are revised, a new
director shall be elected from each district.  The directors shall
draw lots to determine which two directors serve one-year terms and
which three directors serve two-year terms.
      SECTION 3.0309.  CONFIRMATION AND INITIAL DIRECTORS'
ELECTION. (a)  The temporary board of directors shall call and hold
an election to confirm establishment of the district and to elect
initial directors.
      (b)  At the confirmation and initial directors' election, the
temporary board of directors shall have placed on the ballot the
name of any candidate filing for an initial director's position and
blank spaces to write in the names of other persons.  A temporary
director who is qualified to be a candidate under Section 3.0308 of
this part may file for an initial director's position.
      (c)  Section 41.001(a), Election Code, does not apply to a
confirmation and initial directors' election held as provided by
this section.
      (d)  Except as provided by this section, a confirmation and
initial directors' election must be conducted as provided by
Sections 36.017(b)-(h), Water Code, and the Election Code.
      SECTION 3.0310.  ELECTION OF DIRECTORS. (a)  On the first
Saturday in May or the first Tuesday after the first Monday in
November of the first even-numbered year after the year in which
the district is authorized to be created at a confirmation
election, an election shall be held in the district for the
election of three directors to serve two-year terms and two
directors to serve one-year terms.
      (b)  On the first Saturday in May or the first Tuesday after
the first Monday in November, as applicable, of each subsequent
second year following the election held under Subsection (a) of
this section, the appropriate number of directors shall be elected.
      SECTION 3.0311.  OTHER ELECTIONS. An election held by the
district, other than an election under Section 3.0309 or 3.0310 of
this part, must be scheduled to coincide with a general election in
May or November.
      SECTION 3.0312.  FUNDING AUTHORITY.  (a)  Except as provided
by Sections 3.0305(b) and (c) of this part, the district may
require a permit for the construction of a new well completed after
the effective date of this Act and may charge and collect a
construction permit fee not to exceed $300.
      (b)  The district may levy and collect a water utility
service connection fee not to exceed $300 for each new water
service connection made after the effective date of this Act. This
subsection does not apply to a water utility that has surface water
as its sole source of water.
      (c)  Notwithstanding Section 3.0304(a) of this part or
Subchapter G, Chapter 36, Water Code, the district may not impose a
tax or assess or collect any fees except as authorized by
Subsection (a) or (b) of this section.
      SECTION 3.0313.  EXPIRATION DATE.  If the creation of the
district is not confirmed at a confirmation election held under
Section 3.0309 of this part before September 1, 2003, this part
expires on that date.