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.