1-1     By:  Hawley (Senate Sponsor - Armbrister)             H.B. No. 2046
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Natural
 1-4     Resources; May 11, 2001, reported favorably by the following vote:
 1-5     Yeas 7, Nays 0; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the ratification of the creation of and to the
 1-9     administration, powers, duties, operation, and financing of the
1-10     Refugio Groundwater Conservation District.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  RATIFICATION OF CREATION.  The creation by
1-13     Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999
1-14     (Senate Bill No. 1911), of the Refugio Groundwater Conservation
1-15     District in Refugio County is ratified as required by Section 15(a)
1-16     of that Act, subject to approval at a confirmation election under
1-17     Section 8 of this Act.
1-18           SECTION 2.  DEFINITION.  In this Act, "district" means the
1-19     Refugio Groundwater Conservation District.
1-20           SECTION 3.  BOUNDARIES. The boundaries of the district are
1-21     coextensive with the boundaries of Refugio County, Texas.
1-22           SECTION 4.  GENERAL POWERS.  (a)  The district has all of the
1-23     rights, powers, privileges, authority, functions, and duties
1-24     provided by the general law of this state, including Chapter 36,
1-25     Water Code, applicable to groundwater conservation districts
1-26     created under Section 59, Article XVI, Texas Constitution.  This
1-27     Act prevails over any provision of general law that is in conflict
1-28     or inconsistent with this Act, including any provision of Chapter
1-29     1331, Acts of the 76th Legislature, Regular Session, 1999 (Senate
1-30     Bill No. 1911).
1-31           (b)  Notwithstanding Subsection (a) of this section, the
1-32     following provisions prevail over a conflicting or inconsistent
1-33     provision of this Act:
1-34                 (1)  Sections 36.1071-36.108, Water Code;
1-35                 (2)  Sections 36.159-36.161, Water Code; and
1-36                 (3)  Subchapter I, Chapter 36, Water Code.
1-37           SECTION 5.  AUTHORITY TO SET FEES. (a)  In this section,
1-38     "agriculture" includes cultivating the soil, producing crops for
1-39     human food, animal feed, or planting seed or for the production of
1-40     fibers; floriculture, viticulture, silviculture, and horticulture,
1-41     including the cultivation of plants in containers or non-soil
1-42     media; raising, feeding or keeping livestock or other animals for
1-43     the production of food or fiber, leather, pelts, or other tangible
1-44     products having a commercial value; wildlife management; and
1-45     planting cover crops, including cover crops cultivated for
1-46     transplantation, or leaving land idle for the purpose of
1-47     participating in any governmental program or normal crop or
1-48     livestock rotation procedure.
1-49           (b)  The district may set fees for administrative acts of the
1-50     district, such as filing applications.  Fees set by the district
1-51     may not unreasonably exceed the cost to the district of performing
1-52     the administrative function for which the fee is charged.
1-53           (c)  The district may set and collect fees for all services
1-54     provided outside the boundaries of the district.  The fees may not
1-55     unreasonably exceed the cost to the district of providing the
1-56     services outside of the district.
1-57           (d)  The district may assess production fees based on the
1-58     amount of water authorized by permit to be withdrawn from a well or
1-59     the amount actually withdrawn.  The district may assess production
1-60     fees in lieu of, or in conjunction with, any taxes otherwise levied
1-61     by the district.  The district may use revenues generated by
1-62     production fees for any lawful purpose.  Production fees may not
1-63     exceed:
1-64                 (1)  one dollar per acre foot for water used for
 2-1     agriculture; or
 2-2                 (2)  ten dollars per acre foot per annum for water used
 2-3     for any other purpose.
 2-4           (e)  The district may assess a production fee under
 2-5     Subsection (d) of this section for any water produced under an
 2-6     exemption under Section 36.117, Water Code, if that water is
 2-7     subsequently sold to another person.
 2-8           (f)  Notwithstanding the provisions of Section 36.117, Water
 2-9     Code, the district may assess a production fee under Subsection (d)
2-10     of this section for any water produced for injection into a
2-11     geologic formation for the recovery of oil or natural gas.
2-12           SECTION 6.  BOARD OF DIRECTORS.  (a)  The district is
2-13     governed by a board of five directors.
2-14           (b)  Temporary directors serve until initial directors are
2-15     elected under Section 8 of this Act.
2-16           (c)  Initial directors serve until permanent directors are
2-17     elected under Section 9 of this Act.
2-18           (d)  Permanent directors serve staggered four-year terms.
2-19           (e)  Each director must qualify to serve as director in the
2-20     manner provided by Section 36.055, Water Code.
2-21           (f)  A director serves until the director's successor has
2-22     qualified.
2-23           (g)  If a director fails to qualify for office or if there is
2-24     at any time a vacancy on the temporary board of directors, the
2-25     commissioners court shall appoint a person to fill the vacancy.
2-26           SECTION 7.  METHOD OF ELECTING DIRECTORS: COMMISSIONERS
2-27     PRECINCTS. (a)  The directors of the district shall be elected
2-28     according to the commissioners precinct method as provided by this
2-29     section.
2-30           (b)  One director shall be elected by the qualified voters of
2-31     the entire district, and one director shall be elected from each
2-32     county commissioners precinct by the qualified voters of that
2-33     precinct.
2-34           (c)  To be qualified to be a candidate for or to serve as
2-35     director at large, a person must be a registered voter in the
2-36     district.  To be a candidate for or to serve as director from a
2-37     county commissioners precinct, a person must be a registered voter
2-38     of that precinct.
2-39           (d)  A person shall indicate on the application for a place
2-40     on the ballot:
2-41                 (1)  the precinct that the person seeks to represent;
2-42     or
2-43                 (2)  that the person seeks to represent the district at
2-44     large.
2-45           (e)  At the first election after the county commissioners
2-46     precincts are redrawn under Section 18, Article V, Texas
2-47     Constitution, four new directors shall be elected to represent the
2-48     precincts.  The directors elected shall draw lots to determine
2-49     which two directors serve two-year terms and which two directors
2-50     serve four-year terms.
2-51           SECTION 8.  CONFIRMATION AND INITIAL DIRECTORS' ELECTION. (a)
2-52     The temporary board of directors shall call and hold an election to
2-53     confirm establishment of the district and to elect initial
2-54     directors.
2-55           (b)  At the confirmation and initial directors' election, the
2-56     temporary board of directors shall have placed on the ballot the
2-57     name of any candidate filing for an initial director's position and
2-58     blank spaces to write in the names of other persons.  A temporary
2-59     director who is qualified to be a candidate under Sections 6 and 7
2-60     of this Act may file for an initial director's position.
2-61           (c)  Section 41.001(a), Election Code, does not apply to a
2-62     confirmation and initial directors' election held as provided by
2-63     this section.
2-64           (d)  Except as provided by this section, a confirmation and
2-65     initial directors' election must be conducted as provided by
2-66     Sections 36.017(b)-(h), Water Code, and the Election Code.
2-67           SECTION 9.  ELECTION OF DIRECTORS. (a)  On the first Saturday
2-68     in May of the first even-numbered year after the year in which the
2-69     district is authorized to be created at a confirmation election, an
 3-1     election shall be held in the district for the election of three
 3-2     directors to serve four-year terms and two directors to serve
 3-3     two-year terms.
 3-4           (b)  On the first Saturday in May of each subsequent second
 3-5     year following the election, the appropriate number of directors
 3-6     shall be elected.
 3-7           SECTION 10.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
 3-8     (a)  The proper and legal notice of the intention to introduce this
 3-9     Act, setting forth the general substance of this Act, has been
3-10     published as provided by law, and the notice and a copy of this Act
3-11     have been furnished to all persons, agencies, officials, or
3-12     entities to which they are required to be furnished by the
3-13     constitution and other laws of this state, including the governor,
3-14     who has submitted the notice and Act to the Texas Natural Resource
3-15     Conservation Commission.
3-16           (b)  The Texas Natural Resource Conservation Commission has
3-17     filed its recommendations relating to this Act with the governor,
3-18     lieutenant governor, and speaker of the house of representatives
3-19     within the required time.
3-20           (c)  All requirements of the constitution and laws of this
3-21     state and the rules and procedures of the legislature with respect
3-22     to the notice, introduction, and passage of this Act are fulfilled
3-23     and accomplished.
3-24           SECTION 11.  EXPIRATION OF ACT IF DISTRICT NOT CONFIRMED.
3-25     This Act expires on September 1, 2003, if, before that date, the
3-26     establishment of the district has not been confirmed at a
3-27     confirmation election held under Section 8 of this Act.
3-28           SECTION 12.  EFFECTIVE DATE. This Act takes effect September
3-29     1, 2001.
3-30                                  * * * * *