1-1                                   AN ACT
 1-2     relating to the ratification of the creation of and to the
 1-3     administration, powers, duties, operation, and financing of the
 1-4     Lost Pines Groundwater Conservation District.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  RATIFICATION OF CREATION.  The creation by
 1-7     Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999
 1-8     (Senate Bill No. 1911), of the Lost Pines Groundwater Conservation
 1-9     District in Bastrop and Lee counties is ratified as required by
1-10     Section 15(a) of that Act, subject to approval at a confirmation
1-11     election under Section 8 of this Act.
1-12           SECTION 2.  DEFINITIONS.  In this Act:
1-13                 (1)  "District" means the Lost Pines Groundwater
1-14     Conservation District.
1-15                 (2)  "Public utility" means any person, corporation,
1-16     public utility, water supply or sewer service corporation,
1-17     municipality, political subdivision, or agency operating,
1-18     maintaining, or controlling facilities in this state for providing
1-19     potable water service for compensation.
1-20           SECTION 3.  BOUNDARIES.  The boundaries of the district are
1-21     coextensive with the boundaries of Bastrop and Lee counties, Texas.
1-22           SECTION 4.  POWERS.  (a)  The district has all of the rights,
1-23     powers, privileges, authority, functions, and duties provided by
1-24     the general law of this state, including Chapter 36, Water Code,
 2-1     applicable to groundwater conservation districts created under
 2-2     Section 59, Article XVI, Texas Constitution.  This Act prevails
 2-3     over any provision of general law that is in conflict or
 2-4     inconsistent with this Act, including any provision of Chapter
 2-5     1331, Acts of the 76th Legislature, Regular Session, 1999 (Senate
 2-6     Bill No. 1911).
 2-7           (b)  Notwithstanding Subsection (a), the following provisions
 2-8     prevail over a conflicting or inconsistent provision of this Act:
 2-9                 (1)  Sections 36.1071-36.1073, Water Code;
2-10                 (2)  Sections 36.159-36.161, Water Code; and
2-11                 (3)  Subchapter I, Chapter 36, Water Code.
2-12           (c)  The district may not impose a tax.  The district may
2-13     assess  regulatory pumping fees for water produced in or exported
2-14     from the district.  The regulatory pumping fees the district
2-15     assesses for water for crop or livestock production or other
2-16     agricultural uses may be no more than 20 percent of the rate
2-17     applied to water for municipal uses.  Regulatory pumping fees based
2-18     on the amount of water withdrawn from a well may not exceed:
2-19                 (1)  one dollar per acre-foot for water used for the
2-20     purpose of irrigating agricultural crops; or
2-21                 (2)  17 cents per thousand gallons for water used for
2-22     any other purpose.
2-23           (d)  Combined regulatory pumping fees for production and
2-24     export of water may not exceed 17 cents per thousand gallons for
2-25     water used.
2-26           (e)  The district may adopt a rule exempting  a well that is
2-27     not capable of producing more than 50,000 gallons of groundwater a
 3-1     day from a permit requirement, a fee, or a restriction on
 3-2     production.
 3-3           SECTION 5.  GROUNDWATER WELLS UNDER JURISDICTION OF RAILROAD
 3-4     COMMISSION. (a)  Groundwater wells drilled or operated within the
 3-5     district under permits issued by the Railroad Commission of Texas
 3-6     are under the exclusive jurisdiction of the commission and are
 3-7     exempt from regulation by the district.
 3-8           (b)  Groundwater produced in an amount authorized by a
 3-9     commission permit may be used within or exported from the district
3-10     without the necessity of obtaining a permit from the district.
3-11           (c)  To the extent groundwater is produced in excess of
3-12     railroad commission authorization, the holder of the commission
3-13     permit shall apply to the district for appropriate permits for the
3-14     excess production and be subject to the applicable regulatory fees.
3-15           (d)  Groundwater produced from wells under the jurisdiction
3-16     of the railroad commission is generally exempt from water district
3-17     fees.  However, the district may impose either a pumping fee or an
3-18     export fee on groundwater produced from an otherwise exempt mine
3-19     well which is used for municipal purposes or by a public utility.
3-20     Any fee imposed by the district under this subsection may not
3-21     exceed the fee imposed on other groundwater producers in the
3-22     district.
3-23           SECTION 6.  EXEMPTIONS. The district may not require a permit
3-24     for the drilling of a water well used solely to supply water for a
3-25     rig that is actively engaged in drilling or exploration operations
3-26     for an oil or gas well permitted by the Railroad Commission of
3-27     Texas, provided that the person holding the permit is responsible
 4-1     for drilling and operating the water well and the well is located
 4-2     on the same lease or field associated with the drilling rig.
 4-3           SECTION 7.  BOARD OF DIRECTORS.  (a)  The district is
 4-4     governed by a board of 10 directors.
 4-5           (b)  Five directors shall be appointed from Bastrop County by
 4-6     the county judge of Bastrop County and five directors shall be
 4-7     appointed from Lee County by the county judge of Lee County.
 4-8           (c)  The temporary directors serve until their successors are
 4-9     appointed and have qualified.
4-10           (d)  The temporary directors shall draw lots to determine:
4-11                 (1)  which three directors from each county will serve
4-12     four-year terms that expire at the end of the calendar year of the
4-13     fourth year after the year in which this Act takes effect; and
4-14                 (2)  which two directors from each county will serve
4-15     two-year terms that expire at the end of the calendar year of the
4-16     second year after the year in which this Act takes effect.
4-17           (e)  In each subsequent second year following the initial
4-18     appointment of directors, the appropriate number of directors shall
4-19     be appointed.
4-20           (f)  Except as provided by Subsection (d), directors serve
4-21     staggered four-year terms.
4-22           (g)  Directors may serve two consecutive terms after the
4-23     confirmation election.
4-24           (h)  Each director must qualify to serve as director in the
4-25     manner provided by Section 36.055, Water Code.
4-26           (i)  A director serves until the director's successor has
4-27     qualified.
 5-1           (j)  If a vacancy occurs on the board, the board may appoint
 5-2     a director to serve the remainder of the term.
 5-3           (k)  A director may receive fees of office as provided by
 5-4     Section 36.060, Water Code, and is entitled to reimbursement for
 5-5     actual reasonable expenses incurred in performing duties as a
 5-6     director.
 5-7           SECTION 8.  INITIAL MEETING AND CONFIRMATION ELECTION.  (a)
 5-8     As soon as practicable after the effective date of this Act, the
 5-9     temporary board of directors shall meet to set the date for and
5-10     call the confirmation election.  The directors shall hold the
5-11     meeting in conjunction with the regularly scheduled meeting of the
5-12     directors.
5-13           (b)  The election shall be held on the authorized election
5-14     date in November if the U.S. Department of Justice has precleared
5-15     this Act by that time.  If this Act has not been precleared by the
5-16     November election date, the confirmation election shall be held at
5-17     the next authorized election date.  The district shall contract
5-18     with the county clerks of Bastrop and Lee counties to conduct the
5-19     election.
5-20           (c)  Except as provided by this section, the confirmation
5-21     election must be conducted as provided by Sections 36.017, 36.018,
5-22     and 36.019, Water Code, and the Election Code.
5-23           (d)  If the majority of qualified voters in a county who vote
5-24     in the election vote to confirm the creation of the district, that
5-25     county is included in the district.  If the majority of qualified
5-26     voters in a county who vote in the election vote not to confirm the
5-27     creation of the district, that county is excluded from the
 6-1     district.
 6-2           (e)  The district is dissolved and this Act expires on August
 6-3     31, 2003, unless the voters confirm the creation of the district
 6-4     before that date.
 6-5           SECTION 9.  STATUTORY INTERPRETATION.  Except as otherwise
 6-6     provided by this Act, if there is a conflict between this Act and
 6-7     Chapter 36, Water Code, this Act controls.
 6-8           SECTION 10.  MEMBERSHIP ON THE CENTRAL CARRIZO-WILCOX
 6-9     COORDINATING COUNCIL. The district is a member of the Central
6-10     Carrizo-Wilcox Coordinating Council.
6-11           SECTION 11.  MANAGEMENT PLAN. The district shall develop or
6-12     contract to develop its own management plan under Section 36.1071,
6-13     Water Code, and submit it to the Central Carrizo-Wilcox
6-14     Coordinating Council to be included in the management plan
6-15     developed by the Central Carrizo-Wilcox Coordinating Council.
6-16           SECTION 12.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
6-17     (a)  The proper and legal notice of the intention to introduce this
6-18     Act, setting forth the general substance of this Act, has been
6-19     published as provided by law, and the notice and a copy of this Act
6-20     have been furnished to all persons, agencies, officials, or
6-21     entities to which they are required to be furnished by the
6-22     constitution and other laws of this state, including the governor,
6-23     who has submitted the notice and Act to the Texas Natural Resource
6-24     Conservation Commission.
6-25           (b)  The Texas Natural Resource Conservation Commission has
6-26     filed its recommendations relating to this Act with the governor,
6-27     lieutenant governor, and speaker of the house of representatives
 7-1     within the required time.
 7-2           (c)  All requirements of the constitution and laws of this
 7-3     state and the rules and procedures of the legislature with respect
 7-4     to the notice, introduction, and passage of this Act are fulfilled
 7-5     and accomplished.
 7-6           SECTION 13.  EFFECTIVE DATE; EXPIRATION DATE.  (a)  This Act
 7-7     takes effect immediately if it receives a vote of two-thirds of all
 7-8     the members elected to each house, as provided by Section 39,
 7-9     Article III, Texas Constitution.  If this Act does not receive the
7-10     vote necessary for immediate effect, this Act takes effect
7-11     September 1, 2001.
7-12           (b)  If the creation of this district is not confirmed at a
7-13     confirmation election held under Section 8 of this Act before
7-14     September 1, 2003, this Act expires on that date.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2432 was passed by the House on April
         20, 2001, by the following vote:  Yeas 142, Nays 0, 2 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 2432 on May 25, 2001, by the following vote:  Yeas 113, Nays 0,
         1 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2432 was passed by the Senate, with
         amendments, on May 23, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor