77R9816 QS-D                           
         By Cook                                               H.B. No. 2432
         Substitute the following for H.B. No. 2432:
         By Counts                                         C.S.H.B. No. 2432
                                A BILL TO BE ENTITLED
 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 7 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 36.1071-36.108, 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)  The district may adopt a rule exempting  a well that is
2-24     not capable of producing more than 50,000 gallons of groundwater a
2-25     day from a permit requirement, a fee, or a restriction on
2-26     production.
2-27           SECTION 5.  GROUNDWATER WELLS UNDER JURISDICTION OF RAILROAD
 3-1     COMMISSION. (a)  Groundwater wells drilled or operated within the
 3-2     district under permits issued by the Railroad Commission of Texas
 3-3     are under the exclusive jurisdiction of the commission and are
 3-4     exempt from regulation by the district.
 3-5           (b)  Groundwater produced in an amount authorized by a
 3-6     commission permit may be used within or exported from the district
 3-7     without the necessity of obtaining a permit from the district.
 3-8           (c)  To the extent groundwater is produced in excess of
 3-9     railroad commission authorization, the holder of the commission
3-10     permit shall apply to the district for appropriate permits for the
3-11     excess production and be subject to the applicable regulatory fees.
3-12           (d)  Groundwater produced from wells under the jurisdiction
3-13     of the railroad commission is generally exempt from water district
3-14     fees.  However, the district may impose either a pumping fee or an
3-15     export fee on groundwater produced from an otherwise exempt mine
3-16     well which is used for municipal purposes or by a public utility.
3-17     Any fee imposed by the district under this subsection may not
3-18     exceed the fee imposed on other groundwater producers in the
3-19     district.
3-20           SECTION 6.  BOARD OF DIRECTORS.  (a)  The district is
3-21     governed by a board of 10 directors.
3-22           (b)  Five directors shall be appointed from Bastrop County by
3-23     the county judge of Bastrop County and five directors shall be
3-24     appointed from Lee County by the county judge of Lee County.
3-25           (c)  The temporary directors serve until their successors are
3-26     appointed and have qualified.
3-27           (d)  The temporary directors shall draw lots to determine:
 4-1                 (1)  which three directors from each county will serve
 4-2     four-year terms that expire at the end of the calendar year of the
 4-3     fourth year after the year in which this Act takes effect; and
 4-4                 (2)  which two directors from each county will serve
 4-5     two-year terms that expire at the end of the calendar year of the
 4-6     second year after the year in which this Act takes effect.
 4-7           (e)  In each subsequent second year following the initial
 4-8     appointment of directors, the appropriate number of directors shall
 4-9     be appointed.
4-10           (f)  Except as provided by Subsection (d), directors serve
4-11     staggered four-year terms.
4-12           (g)  Directors may serve consecutive terms.
4-13           (h)  Each director must qualify to serve as director in the
4-14     manner provided by Section 36.055, Water Code.
4-15           (i)  A director serves until the director's successor has
4-16     qualified.
4-17           (j)  If a vacancy occurs on the board, the board may appoint
4-18     a director to serve the remainder of the term.
4-19           (k)  A director may receive fees of office as provided by
4-20     Section 36.060, Water Code, and is entitled to reimbursement for
4-21     actual reasonable expenses incurred in performing duties as a
4-22     director.
4-23           SECTION 7.  INITIAL MEETING AND CONFIRMATION ELECTION.  (a)
4-24     As soon as practicable after the effective date of this Act, the
4-25     temporary board of directors shall meet to set the date for and
4-26     call the confirmation election.  The directors shall hold the
4-27     meeting in conjunction with the regularly scheduled meeting of the
 5-1     directors.
 5-2           (b)  The election shall be held on the authorized election
 5-3     date in November if the U.S. Department of Justice has precleared
 5-4     this Act by that time.  If this Act has not been precleared by the
 5-5     November election date, the confirmation election shall be held at
 5-6     the next authorized election date.  The district shall contract
 5-7     with the county clerks of Bastrop and Lee counties to conduct the
 5-8     election.
 5-9           (c)  Except as provided by this section, the confirmation
5-10     election must be conducted as provided by Sections 36.017 and
5-11     36.018, Water Code, and the Election Code.
5-12           (d)  If the majority of the votes cast at an election held
5-13     under this section is against the confirmation of the district, the
5-14     temporary directors may not call another election under this
5-15     section before the first anniversary of that election.
5-16           SECTION 8.  STATUTORY INTERPRETATION.  Except as otherwise
5-17     provided by this Act, if there is a conflict between this Act and
5-18     Chapter 36, Water Code, this Act controls.
5-19           SECTION 9.  REGIONAL COOPERATION. The district shall:
5-20                 (1)  adopt a management plan detailing proposed efforts
5-21     of the district to cooperate with other groundwater conservation
5-22     districts;
5-23                 (2)  participate as needed in coordination meetings
5-24     with adjacent groundwater conservation districts that share one or
5-25     more aquifers with the district;
5-26                 (3)  coordinate the collection of data with adjacent
5-27     groundwater conservation districts in such a way as to achieve
 6-1     relative uniformity of data type and quality;
 6-2                 (4)  provide groundwater level information to adjacent
 6-3     groundwater conservation districts;
 6-4                 (5)  investigate any groundwater pollution to identify
 6-5     the pollution's source;
 6-6                 (6)  notify adjacent groundwater conservation districts
 6-7     and all appropriate agencies of any groundwater pollution detected
 6-8     and source of pollution identified;
 6-9                 (7)  provide to adjacent groundwater conservation
6-10     districts annually an inventory of water wells in the district and
6-11     an estimate of groundwater production within the district; and
6-12                 (8)  include adjacent groundwater conservation
6-13     districts on mailing lists for district newsletters and information
6-14     regarding seminars, public education events, news articles, and
6-15     field days.
6-16           SECTION 10.  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 11.  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 7 of this Act before
7-14     September 1, 2005, this Act expires on that date.