By Cook, Kolkhorst, et al.                            H.B. No. 1784
         77R9958 MI-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the ratification, creation, administration, powers,
 1-3     duties, operation, and financing of groundwater conservation
 1-4     districts for the management of groundwater resources in the
 1-5     central Carrizo-Wilcox area.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7                       ARTICLE I.  GENERAL PROVISIONS
 1-8           SECTION 1.01.  TITLE. This Act may be referred to as the
 1-9     Central Carrizo-Wilcox Groundwater Management Act.
1-10           SECTION 1.02.  PURPOSE. The purpose of this Act is to ratify
1-11     and create locally controlled groundwater districts in order to
1-12     protect, recharge, and prevent the waste of groundwater in the
1-13     central Carrizo-Wilcox area, to control subsidence caused by
1-14     withdrawal of water from the groundwater reservoirs in that area,
1-15     and to regulate the transport of water out of the boundaries of the
1-16     districts.
1-17        ARTICLE II.  BRAZOS VALLEY GROUNDWATER CONSERVATION DISTRICT
1-18           SECTION 2.01.  RATIFICATION OF CREATION. The creation by
1-19     Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999
1-20     (Senate Bill No. 1911), of the Brazos Valley Groundwater
1-21     Conservation District in Robertson and Brazos counties is ratified
1-22     as required by Section 15(a) of that Act, subject to approval at a
1-23     confirmation election under Section 2.13 of this article.
1-24           SECTION 2.02.  DEFINITIONS. In this article:
 2-1                 (1)  "Designated management area" means an area
 2-2     designated as a management area under Section 35.004, Water Code,
 2-3     by the Texas Natural Resource Conservation Commission.
 2-4                 (2)  "District" means the Brazos Valley Groundwater
 2-5     Conservation District.
 2-6           SECTION 2.03.  BOUNDARIES. The boundaries of the district are
 2-7     coextensive with the boundaries of Robertson and Brazos counties,
 2-8     Texas.
 2-9           SECTION 2.04.  GENERAL POWERS. (a)  Except as otherwise
2-10     provided by this Act, the district has all of the rights, powers,
2-11     privileges, authority, functions, and duties provided by the
2-12     general law of this state, including Chapter 36, Water Code,
2-13     applicable to groundwater conservation districts created under
2-14     Section 59, Article XVI, Texas Constitution.  This article prevails
2-15     over any provision of general law that is in conflict or
2-16     inconsistent with this article, including any provision of Chapter
2-17     36, Water Code, or Chapter 1331, Acts of the 76th Legislature,
2-18     Regular Session, 1999 (Senate Bill No. 1911).
2-19           (b)  The district does not have the authority granted by the
2-20     following provisions of Chapter 36, Water Code:
2-21                 (1)  Section 36.105, relating to eminent domain; and
2-22                 (2)  Sections 36.020 and 36.201-36.204, relating to
2-23     taxes.
2-24           SECTION 2.05.  BONDS. The district may issue bonds and notes
2-25     under Sections 36.171-36.181, Water Code, not to exceed $500,000
2-26     total indebtedness at any time.
2-27           SECTION 2.06.  PURCHASE, SALE, TRANSPORTATION, OR
 3-1     DISTRIBUTION OF WATER. The district may not purchase, sell,
 3-2     transport, or distribute surface water or groundwater for any
 3-3     purpose.
 3-4           SECTION 2.07.  FEES. (a)  The board of directors of the
 3-5     district by rule may impose reasonable fees on each well for which
 3-6     a permit is issued by the district and that is not exempt from
 3-7     regulation by the district.  A fee may be based on the size of
 3-8     column pipe used by the well or on the actual, authorized, or
 3-9     anticipated amount of water to be withdrawn from the well.
3-10           (b)  The initial fee shall be based on the amount of water to
3-11     be withdrawn from the well.  The initial fee:
3-12                 (1)  may not exceed:
3-13                       (A)  $0.25 per acre-foot for water used for
3-14     irrigating agricultural crops or operating existing steam electric
3-15     stations; or
3-16                       (B)  $0.0425 per thousand gallons for water used
3-17     for any other purpose; and
3-18                 (2)  may be increased at a cumulative rate not to
3-19     exceed three percent per year.
3-20           (c)  In addition to the fee authorized under Subsection (b)
3-21     of this section, the district may assess a fee on groundwater from
3-22     a well that is produced for transport outside the district.
3-23           (d)  Fees authorized by this section may be assessed annually
3-24     and may be used to fund the cost of district operations.
3-25           SECTION 2.08.  GROUNDWATER WELLS UNDER JURISDICTION OF
3-26     RAILROAD  COMMISSION. (a)  A groundwater well drilled or operated
3-27     within the district under a permit issued by the Railroad
 4-1     Commission of Texas is under the exclusive jurisdiction of the
 4-2     railroad commission and is exempt from regulation by the district.
 4-3           (b)  Groundwater produced in an amount authorized by a
 4-4     railroad commission permit may be used within or exported from the
 4-5     district without a permit from the district.
 4-6           (c)  To the extent groundwater is produced in excess of
 4-7     railroad commission authorization, the holder of the railroad
 4-8     commission permit must apply to the district for the appropriate
 4-9     permit for the  excess production and is subject to the applicable
4-10     regulatory fees.
4-11           (d)  Groundwater produced from a well under the jurisdiction
4-12     of the railroad commission is generally exempt from water district
4-13     fees.  However, the district may impose either a pumping fee or an
4-14     export fee on groundwater produced from an otherwise exempt mine
4-15     well that is used for municipal purposes or by a public utility.
4-16     Any fee imposed by the district under this subsection may not
4-17     exceed the fee imposed on other groundwater producers in the
4-18     district.
4-19           SECTION 2.09.  REGIONAL COOPERATION. To provide for regional
4-20     continuity, the district shall:
4-21                 (1)  participate as needed in coordination meetings
4-22     with other groundwater districts in its designated management area;
4-23                 (2)  coordinate the collection of data with other
4-24     groundwater districts in its designated management area in such a
4-25     way as to achieve relative uniformity of data type and quality;
4-26                 (3)  coordinate efforts to monitor water quality with
4-27     other groundwater districts in its designated management area,
 5-1     local governments, and state agencies;
 5-2                 (4)  provide groundwater level data to other
 5-3     groundwater districts in its designated management area;
 5-4                 (5)  investigate any groundwater and aquifer pollution
 5-5     with the intention of locating its source;
 5-6                 (6)  notify other groundwater districts in its
 5-7     designated management area and all appropriate agencies of any
 5-8     detected groundwater pollution;
 5-9                 (7)  annually provide to other groundwater districts in
5-10     its designated management area an inventory of water wells and an
5-11     estimate of groundwater production within the district; and
5-12                 (8)  include other groundwater districts in its
5-13     designated management area on the mailing lists for district
5-14     newsletters, seminars, public education events, news articles, and
5-15     field days.
5-16           SECTION 2.10.  BOARD OF DIRECTORS. (a)  The district is
5-17     governed by a board of eight directors.
5-18           (b)  Initial directors serve until permanent directors are
5-19     appointed under Section 2.11 of this article and qualified as
5-20     required by Subsection (d) of this section.
5-21           (c)  Permanent directors serve staggered four-year terms.
5-22           (d)  Each director must qualify to serve as a director in the
5-23     manner provided by Section 36.055, Water Code.
5-24           (e)  A director serves until the director's successor has
5-25     qualified.
5-26           (f)  A director may serve consecutive terms.
5-27           (g)  If there is a vacancy on the board, the governing body
 6-1     of the entity that appointed the director who vacated the office
 6-2     shall appoint a director to serve the remainder of the term.
 6-3           (h)  Directors are not entitled to receive compensation for
 6-4     serving as a director but may be reimbursed for actual, reasonable
 6-5     expenses incurred in the discharge of official duties.
 6-6           (i)  A majority vote of a quorum is required for board
 6-7     action.  If there is a tie vote, the proposed action fails.
 6-8           SECTION 2.11.  APPOINTMENT OF DIRECTORS. (a)  The Robertson
 6-9     County Commissioners Court shall appoint four directors, of whom:
6-10                 (1)  one must represent municipal interests in the
6-11     county;
6-12                 (2)  one must represent agricultural interests in the
6-13     county;
6-14                 (3)  one must represent rural water suppliers'
6-15     interests in the county; and
6-16                 (4)  one must represent industrial interests in the
6-17     county.
6-18           (b)  The Brazos County Commissioners Court shall appoint two
6-19     directors, of whom:
6-20                 (1)  one must represent rural water suppliers'
6-21     interests in the county; and
6-22                 (2)  one must represent agricultural interests in the
6-23     county.
6-24           (c)  The governing body of the City of Bryan shall appoint
6-25     one director.
6-26           (d)  The governing body of the City of College Station shall
6-27     appoint one director.
 7-1           (e)  Each of the governing bodies authorized by this section
 7-2     to make an appointment shall appoint the appropriate number of
 7-3     initial directors as soon as practicable following the effective
 7-4     date of this Act, but not later than the 45th day after the
 7-5     effective date of this Act.
 7-6           (f)  The four initial directors from Robertson County shall
 7-7     draw lots to determine their terms.  Two initial directors from
 7-8     Robertson County and the two initial directors from Brazos County
 7-9     serve terms that expire on January 1 of the second year following
7-10     the confirmation of the district at an election held under Section
7-11     2.13 of this article.  The remaining four initial directors serve
7-12     terms that expire on January 1 of the fourth year following the
7-13     confirmation of the district.  On January 1 of the second year
7-14     following confirmation of the district and every two years after
7-15     that date, the appropriate governing body shall appoint the
7-16     appropriate number of permanent directors.
7-17           SECTION 2.12.  ORGANIZATIONAL MEETING. As soon as practicable
7-18     after all the initial directors have been appointed and have
7-19     qualified as provided in this article, a majority of the directors
7-20     shall convene the organizational meeting of the district at a
7-21     location within the district agreeable to a majority of the
7-22     directors.  If no location can be agreed on, the organizational
7-23     meeting of the directors shall be at the Robertson County
7-24     Courthouse.
7-25           SECTION 2.13.  CONFIRMATION ELECTION. (a)  The initial board
7-26     of directors shall call and hold an election on the same date in
7-27     each county within the district to confirm the creation of the
 8-1     district.
 8-2           (b)  Except as provided by this section, a confirmation
 8-3     election must be conducted as provided by Sections 36.017, 36.018,
 8-4     and 36.019, Water Code, and Section 41.001, Election Code.
 8-5           (c)  Confirmation of the district requires a vote in favor of
 8-6     confirmation by a majority of the qualified voters voting in the
 8-7     election.
 8-8           (d)  If the establishment of the district is not confirmed by
 8-9     an election held under this section before the second anniversary
8-10     of the effective date of this Act, the district is dissolved and
8-11     this article expires on that date.
8-12      ARTICLE III.  POST OAK SAVANNAH GROUNDWATER CONSERVATION DISTRICT
8-13           SECTION 3.01.  CREATION. (a)  A groundwater conservation
8-14     district, to be known as the Post Oak Savannah Groundwater
8-15     Conservation District, is created in Milam and Burleson counties,
8-16     subject to approval at a confirmation election under Section 3.11
8-17     of this article.  The district is a governmental agency and a body
8-18     politic and corporate.
8-19           (b)  The district is created under and is essential to
8-20     accomplish the purposes of Section 59, Article XVI, Texas
8-21     Constitution.
8-22           SECTION 3.02.  DEFINITIONS. In this article:
8-23                 (1)  "Designated management area" means an area
8-24     designated as a management area under Section 35.004, Water Code,
8-25     by the Texas Natural Resource Conservation Commission.
8-26                 (2)  "District" means the Post Oak Savannah Groundwater
8-27     Conservation District.
 9-1           SECTION 3.03.  BOUNDARIES. The boundaries of the Post Oak
 9-2     Savannah Groundwater Conservation District are coextensive with the
 9-3     boundaries of Milam and Burleson counties.
 9-4           SECTION 3.04.  GENERAL POWERS. (a)  Except as otherwise
 9-5     provided by this article, the district has all of the rights,
 9-6     powers, privileges, authority, functions, and duties provided by
 9-7     the general law of this state, including Chapter 36, Water Code,
 9-8     applicable to groundwater conservation districts created under
 9-9     Section 59, Article XVI, Texas Constitution.  This article prevails
9-10     over any provision of general law that is in conflict or
9-11     inconsistent with this article, including any provision of Chapter
9-12     36, Water Code.
9-13           (b)  The district does not have the authority granted by the
9-14     following provisions of Chapter 36, Water Code:
9-15                 (1)  Section 36.105, relating to eminent domain; and
9-16                 (2)  Sections 36.020 and 36.201-36.204, relating to
9-17     taxes.
9-18           SECTION 3.05.  FEES. (a)  The board of directors of the
9-19     district by rule may impose reasonable fees on each well for which
9-20     a permit is issued by the district and that is not exempt from
9-21     regulation by the district.  A fee may be based on the size of
9-22     column pipe used by the well or on the actual, authorized, or
9-23     anticipated amount of water to be withdrawn from the well.
9-24           (b)  Fees may not exceed:
9-25                 (1)  $1 per acre-foot for water used for irrigating
9-26     agricultural crops; or
9-27                 (2)  17 cents per thousand gallons for water used for
 10-1    any other purpose.
 10-2          (c)  In addition to the fee authorized under Subsection (b)
 10-3    of this section, the district may assess a fee on groundwater from
 10-4    a well that is produced for transport outside the district.
 10-5          (d)  Fees authorized by this section may be assessed annually
 10-6    and may be used to fund the cost of district operations.
 10-7          SECTION 3.06.  GROUNDWATER WELLS UNDER JURISDICTION OF
 10-8    RAILROAD COMMISSION. (a)  A groundwater well drilled or operated
 10-9    within the district under a permit issued by the Railroad
10-10    Commission of Texas is under the exclusive jurisdiction of the
10-11    railroad commission and is exempt from regulation by the district.
10-12          (b)  Groundwater produced in an amount authorized by a
10-13    railroad commission permit may be used within or exported from the
10-14    district without a permit from the district.
10-15          (c)  To the extent groundwater is produced in excess of
10-16    railroad commission authorization, the holder of the railroad
10-17    commission permit must apply to the district for the appropriate
10-18    permit for the  excess production and is subject to the applicable
10-19    regulatory fees.
10-20          (d)  Groundwater produced from a well under the jurisdiction
10-21    of the railroad commission is generally exempt from water district
10-22    fees.  However, the district may impose either a pumping fee or an
10-23    export fee on groundwater produced from an otherwise exempt mine
10-24    well that is used for municipal purposes or by a public utility.
10-25    Any fee imposed by the district under this subsection may not
10-26    exceed the fee imposed on other groundwater producers in the
10-27    district.
 11-1          SECTION 3.07.  REGIONAL COOPERATION. To provide for regional
 11-2    continuity, the district shall:
 11-3                (1)  participate as needed in coordination meetings
 11-4    with other groundwater districts in its designated management area;
 11-5                (2)  coordinate the collection of data with other
 11-6    groundwater districts in its designated management area in such a
 11-7    way as to achieve relative uniformity of data type and quality;
 11-8                (3)  coordinate efforts to monitor water quality with
 11-9    other groundwater districts in its designated management area,
11-10    local governments, and state agencies;
11-11                (4)  provide groundwater level data to other
11-12    groundwater districts in its designated management area;
11-13                (5)  investigate any groundwater and aquifer pollution
11-14    with the intention of locating its source;
11-15                (6)  notify other groundwater districts in its
11-16    designated management area and all appropriate agencies of any
11-17    detected groundwater pollution;
11-18                (7)  annually provide to other groundwater districts in
11-19    its designated management area an inventory of water wells and an
11-20    estimate of groundwater production within the district; and
11-21                (8)  include other groundwater districts in its
11-22    designated management area on the mailing lists for district
11-23    newsletters, seminars, public education events, news articles, and
11-24    field days.
11-25          SECTION 3.08.  BOARD OF DIRECTORS. (a)  The district is
11-26    governed by a board of 10 directors.
11-27          (b)  Initial directors serve until permanent directors are
 12-1    appointed under Section 3.09 of this article and qualified as
 12-2    required by Subsection (d) of this section.
 12-3          (c)  Permanent directors serve staggered four-year terms.
 12-4          (d)  Each director must qualify to serve as a director in the
 12-5    manner provided by Section 36.055, Water Code.
 12-6          (e)  A director serves until the director's successor has
 12-7    qualified.
 12-8          (f)  A director may serve consecutive terms.
 12-9          (g)  If there is a vacancy on the board, the governing body
12-10    of the entity that appointed the director who vacated the office
12-11    shall appoint a director to serve the remainder of the term.
12-12          (h)  Directors are not entitled to receive compensation for
12-13    serving as a director but may be reimbursed for actual, reasonable
12-14    expenses incurred in the discharge of official duties.
12-15          (i)  A quorum exists when at least two-thirds of the board
12-16    members are present.  A majority vote of a quorum is required for
12-17    board action.  If there is a tie vote, the proposed action fails.
12-18          SECTION 3.09.  APPOINTMENT OF DIRECTORS. (a)  The Milam
12-19    County Commissioners Court shall appoint five directors, of whom:
12-20                (1)  one must represent municipal interests in the
12-21    county;
12-22                (2)  one must represent agricultural interests in the
12-23    county;
12-24                (3)  one must represent rural water suppliers'
12-25    interests in the county;
12-26                (4)  one must represent industrial interests in the
12-27    county; and
 13-1                (5)  one must represent the interests of the county at
 13-2    large.
 13-3          (b)  The Burleson County Commissioners Court shall appoint
 13-4    five directors, of whom:
 13-5                (1)  one must represent municipal interests in the
 13-6    county;
 13-7                (2)  one must represent agricultural interests in the
 13-8    county;
 13-9                (3)  one must represent rural water suppliers'
13-10    interests in the county;
13-11                (4)  one must represent industrial interests in the
13-12    county; and
13-13                (5)  one must represent the interests of the county at
13-14    large.
13-15          (c)  Each of the governing bodies authorized by this section
13-16    to make an appointment shall appoint the appropriate number of
13-17    initial directors as soon as practicable following the effective
13-18    date of this Act, but not later than the 45th day after the
13-19    effective date of this Act.
13-20          (d)  The initial directors shall draw lots to determine their
13-21    terms.  Two initial directors from Milam County and two initial
13-22    directors from Burleson County serve terms that expire on January 1
13-23    of the second year following the confirmation of the district at an
13-24    election held under Section 3.11 of this article.  The remaining
13-25    six initial directors serve terms that expire on January 1 of the
13-26    fourth year following the confirmation of the district.  On January
13-27    1 of the second year following confirmation of the district and
 14-1    every two years after that date, the appropriate commissioners
 14-2    courts shall appoint the appropriate number of permanent directors.
 14-3          SECTION 3.10.  ORGANIZATIONAL MEETING. As soon as practicable
 14-4    after all the initial directors have been appointed and have
 14-5    qualified as provided in this article, a majority of the directors
 14-6    shall convene the organizational meeting of the district at a
 14-7    location within the district agreeable to a majority of the
 14-8    directors.  If no location can be agreed upon, the organizational
 14-9    meeting of the directors shall be at the Milam County Courthouse.
14-10          SECTION 3.11.  CONFIRMATION ELECTION. (a)  The initial board
14-11    of directors shall call and hold an election on the same date in
14-12    each county within the district to confirm the creation of the
14-13    district.
14-14          (b)  Except as provided by this section, a confirmation
14-15    election must be conducted as provided by Sections 36.017, 36.018,
14-16    and 36.019, Water Code, and Section 41.001, Election Code.
14-17          (c)  If the majority of qualified voters in a county who vote
14-18    in the election vote to confirm the creation of the district, that
14-19    county is included in the district.  If the majority of qualified
14-20    voters in a county who vote in the election vote not to confirm the
14-21    creation of the district, that county is excluded from the
14-22    district.
14-23          (d)  If the creation of the district is not confirmed by an
14-24    election held under this section before the second anniversary of
14-25    the effective date of this Act, the district is dissolved and this
14-26    article expires on that date.
14-27       ARTICLE IV.  MID-EAST TEXAS GROUNDWATER CONSERVATION DISTRICT
 15-1          SECTION 4.01.  CREATION. (a)  A groundwater conservation
 15-2    district, to be known as the Mid-East Texas Groundwater
 15-3    Conservation District, is created in Leon, Madison, and Freestone
 15-4    counties, subject to approval at a confirmation election under
 15-5    Section 4.11 of this article.  The district is a governmental
 15-6    agency and a body politic and corporate.
 15-7          (b)  The district is created under and is essential to
 15-8    accomplish the purposes of Section 59, Article XVI, Texas
 15-9    Constitution.
15-10          SECTION 4.02.  DEFINITIONS. In this article:
15-11                (1)  "Designated management area" means an area
15-12    designated as a management area under Section 35.004, Water Code,
15-13    by the Texas Natural Resource Conservation Commission.
15-14                (2)  "District" means the Mid-East Texas Groundwater
15-15    Conservation District.
15-16          SECTION 4.03.  BOUNDARIES. The boundaries of the Mid-East
15-17    Texas Groundwater Conservation District are coextensive with the
15-18    boundaries of Leon, Madison, and Freestone counties.
15-19          SECTION 4.04.  GENERAL POWERS. (a)  Except as otherwise
15-20    provided by this article, the district has all of the rights,
15-21    powers, privileges, authority, functions, and duties provided by
15-22    the general law of this state, including Chapter 36, Water Code,
15-23    applicable to groundwater conservation districts created under
15-24    Section 59, Article XVI, Texas Constitution.  This article prevails
15-25    over any provision of general law that is in conflict or
15-26    inconsistent with this article, including any provision of Chapter
15-27    36, Water Code.
 16-1          (b)  The district does not have the authority granted by the
 16-2    following provisions of Chapter 36, Water Code:
 16-3                (1)  Section 36.105, relating to eminent domain; and
 16-4                (2)  Sections 36.020 and 36.201-36.204, relating to
 16-5    taxes.
 16-6          SECTION 4.05.  FEES. (a)  The board of directors of the
 16-7    district by rule may impose reasonable fees on each well for which
 16-8    a permit is issued by the district and that is not exempt from
 16-9    regulation by the district.  A fee may be based on the size of
16-10    column pipe used by the well or on the actual, authorized, or
16-11    anticipated amount of water to be withdrawn from the well.
16-12          (b)  Fees may not exceed:
16-13                (1)  $1 per acre-foot for water used for irrigating
16-14    agricultural crops; or
16-15                (2)  17 cents per thousand gallons for water used for
16-16    any other purpose.
16-17          (c)  In addition to the fee authorized under Subsection (b)
16-18    of this section, the district may assess a fee on groundwater from
16-19    a well that is produced for transport outside the district.
16-20          (d)  Fees authorized by this section may be assessed annually
16-21    and may be used to fund the cost of district operations.
16-22          SECTION 4.06.  GROUNDWATER WELLS UNDER JURISDICTION OF
16-23    RAILROAD COMMISSION. (a)  A groundwater well drilled or operated
16-24    within the district under a permit issued by the Railroad
16-25    Commission of Texas is under the exclusive jurisdiction of the
16-26    railroad commission and is exempt from regulation by the district.
16-27          (b)  Groundwater produced in an amount authorized by a
 17-1    railroad commission permit may be used within or exported from the
 17-2    district without a permit from the district.
 17-3          (c)  To the extent groundwater is produced in excess of
 17-4    railroad commission authorization, the holder of the railroad
 17-5    commission permit must apply to the district for the appropriate
 17-6    permit for the  excess production and is subject to the applicable
 17-7    regulatory fees.
 17-8          (d)  Groundwater produced from a well under the jurisdiction
 17-9    of the railroad commission is generally exempt from water district
17-10    fees.  However, the district may impose either a pumping fee or an
17-11    export fee on groundwater produced from an otherwise exempt mine
17-12    well that is used for municipal purposes or by a public utility.
17-13    Any fee imposed by the district under this subsection may not
17-14    exceed the fee imposed on other groundwater producers in the
17-15    district.
17-16          SECTION 4.07.  REGIONAL COOPERATION. To provide for regional
17-17    continuity, the district shall:
17-18                (1)  participate as needed in coordination meetings
17-19    with other groundwater districts in its designated management area;
17-20                (2)  coordinate the collection of data with other
17-21    groundwater districts in its designated management area in such a
17-22    way as to achieve relative uniformity of data type and quality;
17-23                (3)  coordinate efforts to monitor water quality with
17-24    other groundwater districts in its designated management area,
17-25    local governments, and state agencies;
17-26                (4)  provide groundwater level data to other
17-27    groundwater districts in its designated management area;
 18-1                (5)  investigate any groundwater and aquifer pollution
 18-2    with the intention of locating its source;
 18-3                (6)  notify other groundwater districts in its
 18-4    designated management area and all appropriate agencies of any
 18-5    detected groundwater pollution;
 18-6                (7)  annually provide to other groundwater districts in
 18-7    its designated management area an inventory of water wells and an
 18-8    estimate of groundwater production within the district; and
 18-9                (8)  include other groundwater districts in its
18-10    designated management area on the mailing lists for district
18-11    newsletters, seminars, public education events, news articles, and
18-12    field days.
18-13          SECTION 4.08.  BOARD OF DIRECTORS. (a)  The district is
18-14    governed by a board of nine directors.
18-15          (b)  Initial directors serve until permanent directors are
18-16    appointed under Section 4.09 of this article and qualified as
18-17    required by Subsection (d) of this section.
18-18          (c)  Permanent directors serve staggered four-year terms.
18-19          (d)  Each director must qualify to serve as a director in the
18-20    manner provided by Section 36.055, Water Code.
18-21          (e)  A director serves until the director's successor has
18-22    qualified.
18-23          (f)  A director may serve consecutive terms.
18-24          (g)  If there is a vacancy on the board, the governing body
18-25    of the entity that appointed the director who vacated the office
18-26    shall appoint a director to serve the remainder of the term.
18-27          (h)  Directors are not entitled to receive compensation for
 19-1    serving as a director but may be reimbursed for actual, reasonable
 19-2    expenses incurred in the discharge of official duties.
 19-3          (i)  A majority vote of a quorum is required for board
 19-4    action.  If there is a tie vote, the proposed action fails.
 19-5          SECTION 4.09.  APPOINTMENT OF DIRECTORS. (a)  The Leon County
 19-6    Commissioners Court shall appoint three directors, of whom:
 19-7                (1)  one must represent the interests of rural water
 19-8    suppliers or municipalities in the county, or both;
 19-9                (2)  one must represent agricultural interests in the
19-10    county; and
19-11                (3)  one must represent industrial interests in the
19-12    county.
19-13          (b)  The Madison County Commissioners Court shall appoint
19-14    three directors, of whom:
19-15                (1)  one must represent the interests of rural water
19-16    suppliers or municipalities in the county, or both;
19-17                (2)  one must represent agricultural interests in the
19-18    county; and
19-19                (3)  one must represent industrial interests in the
19-20    county.
19-21          (c)  The Freestone County Commissioners Court shall appoint
19-22    three directors, of whom:
19-23                (1)  one must represent the interests of rural water
19-24    suppliers or municipalities in the county, or both;
19-25                (2)  one must represent agricultural interests in the
19-26    county; and
19-27                (3)  one must represent industrial interests in the
 20-1    county.
 20-2          (d)  Each of the governing bodies authorized by this section
 20-3    to make an appointment shall appoint the appropriate number of
 20-4    initial directors as soon as practicable following the effective
 20-5    date of this Act, but not later than the 45th day after the
 20-6    effective date of this Act.
 20-7          (e)  The initial directors shall draw lots to determine their
 20-8    terms.  A simple majority of the initial directors, if an odd
 20-9    number of initial directors are appointed, or half the initial
20-10    directors, if an even number of initial directors are appointed,
20-11    serve terms that expire on January 1 of the fourth year following
20-12    the confirmation of the district at an election held under Section
20-13    4.11 of this article.  The remaining initial directors serve terms
20-14    that expire on January 1 of the second year following the
20-15    confirmation of the district.  On January 1 of the second year
20-16    following confirmation of the district and every two years after
20-17    that date, the appropriate commissioners courts shall appoint the
20-18    appropriate number of permanent directors.
20-19          SECTION 4.10.  ORGANIZATIONAL MEETING. As soon as practicable
20-20    after all the initial directors have been appointed and have
20-21    qualified as provided by this article, a majority of the directors
20-22    shall convene the organizational meeting of the district at a
20-23    location within the district agreeable to a majority of the
20-24    directors.  If no location can be agreed upon, the organizational
20-25    meeting of the directors shall be at the Leon County Courthouse.
20-26          SECTION 4.11.  CONFIRMATION ELECTION. (a)  The initial board
20-27    of directors shall call and hold an election on the same date in
 21-1    each county within the district to confirm the creation of the
 21-2    district.
 21-3          (b)  Except as provided by this section, a confirmation
 21-4    election must be conducted as provided by Sections 36.017, 36.018,
 21-5    and 36.019, Water Code, and Section 41.001, Election Code.
 21-6          (c)  If the majority of qualified voters in a county who vote
 21-7    in the election vote to confirm the creation of the district, that
 21-8    county is included in the district.  If the majority of qualified
 21-9    voters in a county who vote in the election vote not to confirm the
21-10    creation of the district, that county is excluded from the
21-11    district.
21-12          (d)  If the creation of the district is not confirmed by an
21-13    election held under this section before the second anniversary of
21-14    the effective date of this Act, the district is dissolved and this
21-15    article expires on that date.
21-16            ARTICLE V.  PROCEDURAL REQUIREMENTS; EFFECTIVE DATE
21-17          SECTION 5.01.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
21-18    (a)  The proper and legal notice of the intention to introduce this
21-19    Act, setting forth the general substance of this Act, has been
21-20    published as provided by law, and the notice and a copy of this Act
21-21    have been furnished to all persons, agencies, officials, or
21-22    entities to which they are required to be furnished by the
21-23    constitution and other laws of this state, including the governor,
21-24    who has submitted the notice and Act to the Texas Natural Resource
21-25    Conservation Commission.
21-26          (b)  The Texas Natural Resource Conservation Commission has
21-27    filed its recommendations relating to this Act with the governor,
 22-1    lieutenant governor, and speaker of the house of representatives
 22-2    within the required time.
 22-3          (c)  All requirements of the constitution and laws of this
 22-4    state and the rules and procedures of the legislature with respect
 22-5    to the notice, introduction, and passage of this Act are fulfilled
 22-6    and accomplished.
 22-7          SECTION 5.02.  EFFECTIVE DATE. This Act takes effect
 22-8    September 1, 2001.