Amend SB 2  on third reading as follows:
      (1)  At the end of the heading for ARTICLE 3 of the bill, add
"AND CREATIONS".
      (2)  Add an appropriately numbered new PART to ARTICLE 3 of
the bill, and appropriately number SECTIONS of that PART and
renumber subsequent SECTIONS of that ARTICLE, to read as follows:
PART __.  KIMBLE COUNTY GROUNDWATER CONSERVATION DISTRICT
      SECTION ____. CREATION. (a)  A groundwater conservation
district, to be known as the Kimble County Groundwater Conservation
District, is created in Kimble County, subject to approval at a
confirmation election under this part.  The district is a
governmental agency and a body politic and corporate.
      (b)  The district is created under and is essential to
accomplish the purposes of Section 59, Article XVI, Texas
Constitution.
      SECTION ____. DEFINITION. In this part, "district" means the
Kimble County Groundwater Conservation District.
      SECTION ____. BOUNDARIES. The boundaries of the district are
coextensive with the boundaries of Kimble County, Texas, excluding
that part of Kimble County that lies within the boundaries of the
Hickory Underground Water District.
      SECTION ____. FINDING OF BENEFIT. All of the land and other
property included within the boundaries of the district will be
benefited by the works and projects that are to be accomplished by
the district under powers conferred by Section 59, Article XVI,
Texas Constitution.  The district is created to serve a public use
and benefit.
      SECTION ____. 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 is inconsistent with this part.
      (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)  Chapter 49, Water Code, does not apply to the district.
      SECTION ____. BOARD OF DIRECTORS. (a)  The district is
governed by a board of five directors.
      (b)  Temporary directors serve until initial directors are
elected under this part.
      (c)  Initial directors serve until permanent directors are
elected under this part.
      (d)  Permanent directors serve staggered four-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.
      SECTION ____. COMPENSATION OF DIRECTORS. A director is not
entitled to fees of office but is entitled to reimbursement of
actual expenses reasonably and necessarily incurred while engaging
in activities on behalf of the district.
      SECTION ____. TEMPORARY DIRECTORS. (a)  The temporary board
of directors consists of five members appointed by the
Commissioners Court of Kimble County.
      (b)  If a temporary director fails to qualify for office, the
Commissioners Court of Kimble County shall appoint a person to fill
the vacancy.
      SECTION ____. 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 the following two
sections 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 two-year terms and
which three directors serve four-year terms.
      SECTION ____. 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 the preceding
section 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 ____. ELECTION OF DIRECTORS. (a)  On the first
Saturday in May 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 four-year terms and two
directors to serve two-year terms.
      (b)  On the first Saturday in May of each subsequent second
year following the election, the appropriate number of directors
shall be elected.
      SECTION ____. TAX RATE. The district may not levy a tax to
pay any part of bonds or notes issued by the district that exceeds
20 cents on each $100 of assessed valuation.
      SECTION ____. EFFECTIVE DATE; EXPIRATION DATE. (a)  This part
takes effect September 1, 2001.
      (b)  If the creation of the district is not confirmed at a
confirmation election held under this part before September 1,
2003, this part expires on that date.