1-1     By:  Coret, Shields (Senate Sponsor - Wentworth)      H.B. No. 2005
 1-2           (In the Senate - Received from the House April 30, 2001;
 1-3     April 30, 2001, read first time and referred to Committee on
 1-4     Natural Resources; May 11, 2001, reported favorably, as amended, by
 1-5     the following vote:  Yeas 4, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7     COMMITTEE AMENDMENT NO. 1                           By:  Barrientos
 1-8           Amend H.B. 2005 (House engrossment) in SECTION 2 of the bill,
 1-9     after Subdivision (3) (page 1, between lines 39 and 40), by
1-10     inserting the following:
1-11                 (4)  "Public water supply well" means a well from which
1-12     all the groundwater produced is produced for a public water system
1-13     having more than 250 service connections for municipal use.
1-14                            A BILL TO BE ENTITLED
1-15                                   AN ACT
1-16     relating to the creation, administration, powers, duties,
1-17     operation, and financing of the Trinity Glen Rose Groundwater
1-18     Conservation District.
1-19           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-20           SECTION 1.  CREATION.  (a)  A conservation and reclamation
1-21     district, to be known as the Trinity Glen Rose Groundwater
1-22     Conservation District, is created in that part of Bexar County
1-23     overlying the Trinity Aquifer, subject to approval at a
1-24     confirmation election under Section 9 of this Act.  The district is
1-25     a governmental agency and a body politic and corporate.
1-26           (b)  The district is created under and is essential to
1-27     accomplish the purposes of Section 59, Article XVI, Texas
1-28     Constitution.
1-29           (c)  The purpose of the district is to develop and implement
1-30     regulatory, conservation, and recharge programs that preserve and
1-31     protect the underground water resources located within the
1-32     district.
1-33           SECTION 2.  DEFINITIONS.  In this Act:
1-34                 (1)  "Board" means the board of directors of the
1-35     district.
1-36                 (2)  "District" means the Trinity Glen Rose Groundwater
1-37     Conservation District.
1-38                 (3)  "Commission" means the Texas Natural Resource
1-39     Conservation Commission.
1-40           SECTION 3.  BOUNDARY.  (a)  The district includes the
1-41     territory contained within that part of Bexar County defined as
1-42     follows:
1-43     Beginning at the Bexar County - Kendall County - Bandera County
1-44     line, said point being at the intersect of Balcones Creek;
1-45     Thence Southwest along the Bexar County - Bandera County line to
1-46     the point of intersect of the Bexar County - Bandera County and
1-47     Medina County line;
1-48     Thence South along the Bexar County - Medina County line to the
1-49     point of intersect of Bexar County - Medina County line and Farm to
1-50     Market Road 471;
1-51     Thence Southeast along the centerline of Farm to Market Road 471 to
1-52     the point of intersect with the centerline of State Highway Loop
1-53     1604;
1-54     Thence Northeast and continuing East along the centerline of State
1-55     Highway Loop 1604 to the point of intersect of the centerline of
1-56     State Highway Loop 1604 and the centerline of the Union Pacific
1-57     Railway line in Northeast Bexar County, said point being
1-58     approximately 3000 feet Northwest of Farm to Market Road 2252 also
1-59     known as Nacogdoches Road;
1-60     Thence East-Northeast along the centerline of the Union Pacific
1-61     Railway to the point of intersect of the Union Pacific Railway and
1-62     the Bexar County - Comal County Line, said point being the
1-63     intersect of Cibolo Creek;
 2-1     Thence Northwest and West along the centerline of Cibolo Creek to
 2-2     the confluence with Balcones Creek in Northwest Bexar County;
 2-3     Thence West-Southwest along Balcones Creek to the point of
 2-4     intersect of Balcones Creek and the Bexar County - Kendall County -
 2-5     Bandera County line, said intersect being the point of beginning.
 2-6           (b)  The district may add territory inside the boundaries of
 2-7     the Edwards Aquifer Authority with the consent of the board of
 2-8     directors of the authority in the manner provided by Subchapter J,
 2-9     Chapter 36, Water Code.
2-10           SECTION 4.  FINDING OF BENEFIT.  All of the land and other
2-11     property included within the boundaries of the district will be
2-12     benefited by the works and projects that are to be accomplished by
2-13     the district under powers conferred by Section 59, Article XVI,
2-14     Texas Constitution.  The district is created to serve a public use
2-15     and benefit.
2-16           SECTION 5.  POWERS.  (a)  The district has all of the rights,
2-17     powers, privileges, authority, functions, and duties provided by
2-18     the general law of this state, including Chapter 36, Water Code,
2-19     applicable to groundwater conservation districts created under
2-20     Section 59, Article XVI, Texas Constitution.
2-21           (b)  This Act prevails over any provision of general law that
2-22     is in conflict or inconsistent with this Act.
2-23           (c)  The disqualification of directors of the district is
2-24     governed by Section 49.052, Water Code.
2-25           SECTION 6.  METHOD OF ELECTING DIRECTORS: SINGLE-MEMBER
2-26     DISTRICTS. (a)  The temporary directors shall draw five numbered,
2-27     single-member districts for electing directors.
2-28           (b)  For the conduct of an election under Section 9 or
2-29     Section 12 of this Act, the board shall provide for one director to
2-30     be elected from each of the single-member districts.  A director
2-31     elected from a single-member district represents the residents of
2-32     that single-member district.
2-33           (c)  To be qualified to be a candidate for or to serve as
2-34     director, a person must be a registered voter in the single-member
2-35     district that the person represents or seeks to represent.
2-36           (d)  The initial or permanent directors may revise the
2-37     districts as necessary or appropriate.  The board shall revise each
2-38     single-member district after each federal decennial census to
2-39     reflect population changes.  At the first election after the
2-40     single-member districts are revised, a new director shall be
2-41     elected from each district.  The directors shall draw lots to
2-42     determine which two directors serve two-year terms and which three
2-43     directors serve four-year terms.
2-44           SECTION 7.  BOARD OF DIRECTORS.  (a)  The district is
2-45     governed by a board of five directors.
2-46           (b)  A vacancy in the office of director shall be filled by
2-47     appointment of the board until the next election for directors.  At
2-48     the next election for directors, a person shall be elected to fill
2-49     the position.  If the position is not scheduled to be filled at the
2-50     election, the person elected to fill the position shall serve only
2-51     for the remainder of the unexpired term.
2-52           (c)  To be eligible to serve as director, a person must be a
2-53     registered voter in the district.
2-54           SECTION 8.  TEMPORARY DIRECTORS.  (a)  The temporary board of
2-55     directors consists of:
2-56                 (1)  Jack M. Mcginnis --Voting District No. 1
2-57                 (2)  John J. Waldrop --Voting District No. 2
2-58                 (3)  Daniel Kasprowicz --Voting District No. 3
2-59                 (4)  Gary A. Gibbons --Voting District No. 4
2-60                 (5)  Steve A. Peirce --Voting District No. 5
2-61           (b)  If a temporary director fails to qualify for office, the
2-62     temporary directors who have qualified shall appoint a person to
2-63     fill the vacancy.  If at any time there are fewer than three
2-64     qualified temporary directors, the commission shall appoint the
2-65     necessary number of persons to fill all vacancies on the board.
2-66           SECTION 9.  CONFIRMATION AND INITIAL DIRECTORS' ELECTION.
2-67     (a)  The temporary board of directors shall call and hold an
2-68     election to confirm establishment of the district and to elect
2-69     initial directors.
 3-1           (b)  At the confirmation and initial directors' election, the
 3-2     temporary board of directors shall have  placed on the ballot the
 3-3     names of the persons serving as temporary directors who intend to
 3-4     run for an initial director's position together with the name of
 3-5     any candidate filing for an initial director's  position and blank
 3-6     spaces to write in the names of other persons.
 3-7           (c)  Section 41.001(a), Election Code, does not apply to a
 3-8     confirmation and initial directors' election held as provided by
 3-9     this section.
3-10           (d)  If a majority of the votes cast at the election favor
3-11     the creation of the district, the temporary directors shall declare
3-12     the district created.  If a majority of the votes cast at the
3-13     election oppose the creation of the district, the temporary
3-14     directors shall declare the district defeated.  The temporary
3-15     directors shall file a copy of the election results with the
3-16     commission.
3-17           (e)  If a majority of the votes cast at the election oppose
3-18     the creation of the district, the temporary directors may call and
3-19     hold subsequent elections to confirm establishment of the district.
3-20     A subsequent election may not be held earlier than the first
3-21     anniversary after the date on which the previous election was held.
3-22     If the district is not created within three years after the
3-23     effective date of this Act, this Act expires.
3-24           (f)  Except as provided by this section, a confirmation
3-25     election must be conducted as provided by Sections 36.017(b)-(h),
3-26     Water Code, and the Election Code.
3-27           SECTION 10.  INITIAL DIRECTORS.  If creation of the district
3-28     is confirmed under Section 9 of this Act, the initial directors
3-29     shall draw lots to determine which two initial directors serve
3-30     two-year terms and which three initial directors serve four-year
3-31     terms.
3-32           SECTION 11.  SERVICE OF DIRECTORS.  (a)  Temporary directors
3-33     serve until initial directors are elected under Section 9 of this
3-34     Act or until this Act expires under Section 9(e) of this Act,
3-35     whichever occurs earlier.
3-36           (b)  Initial directors serve until permanent directors are
3-37     elected under Section 12 of this Act.
3-38           (c)  Permanent directors serve staggered four-year terms.
3-39           (d)  A director serves until the director's successor has
3-40     qualified.
3-41           (e)  Each director must qualify to serve as director in the
3-42     manner provided by Section 36.055, Water Code.
3-43           SECTION 12.  ELECTION OF PERMANENT DIRECTORS.  Beginning in
3-44     the second year after the year in which the district is authorized
3-45     to be created at a confirmation election, an election shall be held
3-46     in the district on the first Saturday in May every two years to
3-47     elect the appropriate number of directors to the board.
3-48           SECTION 13.  DISTRICT FINANCES.  (a)  Except as provided by
3-49     Subsection (i) of this section, the board may impose an operation
3-50     and maintenance tax if approved by a majority of the qualified
3-51     voters voting at an election called and held for that purpose in
3-52     the manner provided by Section 36.201, Water Code.
3-53           (b)  Except as provided by Subsection (i) of this section,
3-54     the board of directors may impose reasonable fees on each nonexempt
3-55     well in the district.  The fees may be assessed annually, based on:
3-56                 (1)  the size of column pipe used in the well;
3-57                 (2)  the production capacity of the well; or
3-58                 (3)  actual, authorized, or anticipated pumpage.
3-59           (c)  The board may use fees as a regulatory mechanism or a
3-60     revenue-producing mechanism.  Not later than December 1, 2003, the
3-61     board shall adopt rules issuing appropriate recharge credits to
3-62     persons in the district who pay fees or taxes to the district and
3-63     who enhance, supplement, improve, or prevent pollution of recharge
3-64     of the Trinity Aquifer.
3-65           (d)  The board shall adopt rules regarding the fee rates, the
3-66     manner and form for filing reports of fees, and the manner of
3-67     collecting fees.
3-68           (e)  To secure payment of a fee imposed under this section, a
3-69     lien attaches to the property on which the well is located.  The
 4-1     lien has the same priority and characteristics as a lien for
 4-2     district taxes.  The district may use the lien and all other powers
 4-3     that it possesses to collect the payment of the fee.
 4-4           (f)  The district may use fees or taxes collected under this
 4-5     section to pay for the district's management and operation and to
 4-6     pay all or part of the principal of and interest on district bonds
 4-7     or notes.
 4-8           (g)  The board shall use fees or taxes collected under this
 4-9     section to pay for:
4-10                 (1)  studies and planning required to develop a
4-11     scientifically based regulatory program;
4-12                 (2)  soil and water conservation measures, including
4-13     water-retarding structures and brush management and the
4-14     implementation of other best management practices to address
4-15     natural resource concerns in the district;
4-16                 (3)  direct installation of water conservation devices
4-17     and early retirement of older devices;
4-18                 (4)  educational material relating to soil and water
4-19     conservation; and
4-20                 (5)  enforcement programs or regulatory programs.
4-21           (h)  The district may spend fees or taxes for the purposes
4-22     described by Subsection (g)(2) of this section independently or in
4-23     conjunction with other natural resource programs in the district.
4-24           (i)  If the district imposes a tax under this section, the
4-25     district may not impose a fee.  If the district imposes a fee under
4-26     this section, the district may not impose a tax.
4-27           SECTION 14.  ADDITIONAL REGULATORY AUTHORITY.  (a)  The board
4-28     may require all or certain types of wells to be registered with the
4-29     district.
4-30           (b)  Notwithstanding Section 36.117, Water Code:
4-31                 (1)  the production capacity for an exempt well in the
4-32     district is 10,000 gallons per day or less;  and
4-33                 (2)  an exempt domestic well in the district may not
4-34     serve more than five households.
4-35           (c)  A well on or serving a tract of land of less than five
4-36     acres that is installed after the effective date of this Act,
4-37     regardless of whether a plat is required or whether the production
4-38     capacity of the well is less than 10,000 gallons per day, is not an
4-39     exempt well.
4-40           (d)  This section does not affect the exempt status of public
4-41     water supply wells under Section 16 of this Act.
4-42           (e)  The district may:
4-43                 (1)  construct, implement, and maintain best management
4-44     practices in the district;
4-45                 (2)  engage in and promote the acceptance of best
4-46     management practices through education efforts sponsored by the
4-47     district;
4-48                 (3)  include the construction and maintenance of
4-49     terraces and other structures on land in the district;
4-50                 (4)  engage in and promote land treatment measures for
4-51     soil conservation and improvement; and
4-52                 (5)  prepare and implement a plan for the control and
4-53     management of brush within the district.
4-54           SECTION 15.  PROHIBITED ACTS.  (a)  The district may not:
4-55                 (1)  sell, donate, lease, or otherwise grant rights in
4-56     or to underground water located in the district unless the action
4-57     has been approved by a majority vote of the residents of the
4-58     district;
4-59                 (2)  enter into any contract or engage in any action to
4-60     purchase, sell, transport, and distribute surface water or
4-61     groundwater for any purpose other than a program for aquifer
4-62     storage and recovery of water;
4-63                 (3)  assess an ad valorem property tax for
4-64     administrative, operation, and maintenance expenses in excess of
4-65     three cents for each $100 valuation; or
4-66                 (4)  impose a tax on or charge a fee to any person in
4-67     the district who does not obtain water from the Trinity Aquifer.
4-68           (b)  In this section, "person" has the meaning assigned by
4-69     Section 311.005, Government Code.
 5-1           SECTION 16.  PUBLIC WATER SUPPLY WELLS.  (a)  A public water
 5-2     supply well is exempt from regulation by the district if:
 5-3                 (1)  the well is in existence on the effective date of
 5-4     this Act and drilled in compliance with technical requirements in
 5-5     effect at the time the well was drilled; or
 5-6                 (2)  the commission has approved plans submitted for
 5-7     the installation of the well before the effective date of this Act
 5-8     and the installation of the well is completed in accordance with
 5-9     the approved plans and the commission's technical requirements
5-10     before the first anniversary of the effective date of this Act.
5-11           (b)  The owner of a public water supply well shall register
5-12     the well with the district and submit reports to the district.  A
5-13     public water supply well is subject to the district's prohibitions
5-14     on the waste of groundwater.
5-15           (c)  The district may not require a construction or operating
5-16     permit for a public water supply well approved by the commission.
5-17           (d)  Fees a retail public utility pays to the district shall
5-18     be collected directly from the customers of the utility as a
5-19     regulatory fee and shown as a separate line item on the customer's
5-20     bill.
5-21           SECTION 17. EXEMPTION FOR MUNICIPAL SUPPLIER OR CONSUMER OF
5-22     WATER FROM SOURCE OTHER THAN TRINITY AQUIFER.  The district may not
5-23     impose a fee or tax on:
5-24                 (1)  a person who provides water to a municipality, at
5-25     least 50 percent of which annually is obtained from a source other
5-26     than the Trinity Aquifer; or
5-27                 (2)  a resident of or other water user within a
5-28     municipality that obtains its water from a person described by
5-29     Subdivision (1), whose source of water is the municipality.
5-30           SECTION 18.  BONDS. The district may not issue bonds before
5-31     September 1, 2004.
5-32           SECTION 19.  MUNICIPALITY'S OPTION TO CHOOSE DISTRICT.  (a)
5-33     If any part of a municipality, a part of which is included within
5-34     the boundaries of the district, is included within the boundaries
5-35     of one or more other  groundwater conservation districts created by
5-36     special Act of the 77th Legislature, Regular Session, 2001, and
5-37     confirmed at a subsequent election called for the purpose, the
5-38     municipality, not later than August 31, 2004, at an election called
5-39     for the purpose, may vote to choose the one groundwater
5-40     conservation district of which it will be a part.
5-41           (b)  If, after a municipality has held an election authorized
5-42     by Subsection (a), another groundwater conservation district
5-43     created by special Act of the 77th Legislature, Regular Session,
5-44     2001, that includes any part of the municipality is confirmed at an
5-45     election called for the purpose and if the district of which the
5-46     municipality has chosen to be a part has not issued bonds secured
5-47     by ad valorem taxes on any land within the boundaries of the
5-48     municipality, the municipality may hold another election under this
5-49     section to choose whether to remain within the groundwater
5-50     conservation district of which it has chosen to be a part or to
5-51     separate from that district and become part of the newly confirmed
5-52     groundwater conservation district.  The district may hold another
5-53     election under this section, regardless of the number of previous
5-54     elections under this section, at any time a district described by
5-55     Subsection (a) is confirmed.
5-56           (c)  An election under this section shall be held according
5-57     to the requirements of the Election Code, except to the extent of
5-58     any conflict with the requirements of this section.  Section
5-59     41.001(a), Election Code, does not apply to an election under this
5-60     section.
5-61           (d)  This section and the results of an election held under
5-62     this section prevail over the provisions of any other Act of the
5-63     77th Legislature, Regular Session, 2001, regardless of the relative
5-64     dates on which this Act and the other Act may be enacted and become
5-65     law.
5-66           SECTION 20.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
5-67     (a)  The proper and legal notice of the intention to introduce this
5-68     Act, setting forth the general substance of this Act, has been
5-69     published as provided by law, and the notice and a copy of this Act
 6-1     have been furnished to all persons, agencies, officials, or
 6-2     entities to which they are required to be furnished by the
 6-3     constitution and other laws of this state, including the governor,
 6-4     who has submitted the notice and Act to the commission.
 6-5           (b)  The commission has filed its recommendations relating to
 6-6     this Act with the governor, lieutenant governor, and speaker of the
 6-7     house of representatives within the required time.
 6-8           (c)  All requirements of the constitution and laws of this
 6-9     state and the rules and procedures of the legislature with respect
6-10     to the notice, introduction, and passage of this Act are fulfilled
6-11     and accomplished.
6-12           SECTION 21.  EFFECTIVE DATE.  This Act takes effect
6-13     immediately if it receives a vote of two-thirds of all the members
6-14     elected to each house, as provided by Section 39, Article III,
6-15     Texas Constitution.  If this Act does not receive the vote
6-16     necessary for immediate effect, this Act takes effect September 1,
6-17     2001.
6-18                                  * * * * *