77R9958 MI-F By Cook, Kolkhorst, et al. H.B. No. 1784 Substitute the following for H.B. No. 1784: By Cook C.S.H.B. No. 1784 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.