Amend CSSB 2 on page 39, line 15 by inserting a new Part 3
and renumber the subsequent sections appropriately.
      PART 3.  HAYS/TRINITY GROUNDWATER CONSERVATION DISTRICT
      SECTION 1.  CREATION AND RATIFICATION.  (a)  A groundwater
conservation district, to be known as the Hays Trinity Groundwater
Conservation District, created under SB 1911 of the 76th
Legislature in a portion of Hays County, subject to approval at a
confirmation election under Section 10 of that Act is hereby
affirmed, ratified, and validated in this act.  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 2.  DEFINITION.  In this Act, "district" means the
Hays Trinity Groundwater Conservation District.
      SECTION 3.  BOUNDARIES.  The boundaries of the district are
coextensive with the boundaries of Hays County Texas, save and
exempt any areas in Hays County which are currently within another
groundwater conservation district with the authority to require
permit for the drilling or alteration of wells for the withdrawal
of groundwater.  Within thirty (30) days of its initial meeting and
prior to holding any confirmation election, the district shall
cause a description of its boundaries to be prepared and filed with
the Hays County Clerk and the Texas Natural Resource Conservation
Commission.
      SECTION 4.  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 5.  POWERS.  (a)  Except as provided by this act, the
district has all 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.  Chapter 49, Water Code, does not apply to the
district.  This Act prevails over any provision of general law that
is in conflict or inconsistent with this Act.
      (b)  The rights, powers, privileges, authority, functions,
and duties of the district are subject to the continuing right of
supervision of the state to be exercised by and through the Texas
Natural Resources Conservation Commission
      (c)  The district has the power to limit the transfer of
groundwater out of the district, including the power to prohibit
the transfer.
      (d)  The district does not have authority to enter property
to inspect an exempt well without the property owner's permission.
      (e)  The Hays County Commissioners' Court, by resolution, may
require an election to be conducted within six (6) months to affirm
or reverse a decision of the Board of Directors of the district.
      (f)  The district shall not have the power to require well
construction standards for residential wells higher than state
standards for such wells.
      SECTION 6.  EXEMPTIONS.  (a)  The following wells are exempt
from Chapter 36 Water Code rules and shall not be regulated,
permitted or metered by the district:
      A well used to satisfy the domestic needs of a single private
residential household and producing less than 25,000 gallons per
day.
      A well used for conventional farming and ranching activities,
not to include intensive operations such as aquaculture, livestock
feedlots and poultry operations.
      (b)  A well used for conventional farming and ranching
activities, not to include intensive operations such as
aquaculture, livestock feedlots and poultry operations, is not
required to obtain construction authorization.
      SECTION 7.  FISCAL RESPONSIBILITIES.  (a)  The district shall
each year cause a budget to be prepared showing the proposed
expenditures and disbursements and the estimated receipts and
collections for the following fiscal year and shall hold a public
hearing on the proposed budget after publication of a notice of
hearing in a newspaper of general circulation in the county at
least once not less than ten (10) days prior to the date set for
the hearing.  Any person who is a taxpayer of the district shall
have the right to appear at the time and place designated in the
notice and be heard with reference to any item shown in the
proposed budget.  The proposed budget shall also show the amount of
revenues expected to be collected during such fiscal year.
      (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
particular duties, practices, functions, or other district matters.
      SECTION 8.  BOARD OF DIRECTORS.  (a)  A board of five
appointed directors governs the district.
      (b)  Directors must reside in the district.
      Each director must qualify to serve as director in the manner
provided by Section 36.055, Water Code.
      Directors serve staggered two-year terms.
      A director serves until the director's successor has
qualified.
      If there is a vacancy on the board, the commissioners' court
shall appoint a director to serve the remainder of the term.
      The commissioners' court shall appoint a director to succeed
a director on or before the date the director's term expires.
      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 9.  APPOINTMENT AND TERMS OF INITIAL DIRECTORS.  Not
later than the 31st day after the effective date of this Act, the
Hays County Commissioners Court shall appoint:
      (1)  two directors to serve terms expiring February 1, 2003;
and
      (2)  three directors to serve terms expiring February 1,
2004.
      SECTION 10.  CONFIRMATION ELECTION.  (a)  The initial board
of directors shall call and hold an election to confirm
establishment of the district no later than the second Saturday in
May, 2002.
      (b)  Section 41.001(a), Election Code, does not apply to a
confirmation election held as provided by this section.
      (c)  Except as provided by this section, a confirmation
election must be conducted as provided by Sections 36.017(b)-(h),
Water Code, and the Election Code.
      (d)  If the establishment of the district has not been
confirmed at an election held under this section before the second
anniversary of the effective date of this Act, this Act expires on
that date.
      SECTION 11.  FUNDING AUTHORITY.  (a)  The district may levy
or collect a fee (not to exceed $300) for construction
authorization for new wells completed after the effective date of
this bill, except as prohibited in SECTION 6.(b).
      (b)  The district may levy or collect a water utility service
connection fee (not to exceed $300) for all new water service
connections made after the effective date of this bill.  This fee
may not be charged on connection fees to a water utility which has
surface water as it's sole source of water.
      SECTION 12.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
(a)  The proper and legal notice of the intention to introduce this
Act, setting forth the general substance of this Act, has been
published as provided by law, and the notice and a copy of this Act
have been furnished to all persons, agencies, officials, or
entities to which they are required to be furnished by the
constitution and other laws of this state, including the governor,
who has submitted the notice and Act to the Texas Natural Resource
Conservation Commission.
      (b)  The Texas Natural Resource Conservation Commission has
filed its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time.
      (c)  All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act are fulfilled
and accomplished.