1-1                                   AN ACT
 1-2     relating to the name, elections, duties, powers, operation, and
 1-3     financing of the Headwaters Underground Water Conservation
 1-4     District.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 1(a), Chapter 693, Acts of the 72nd
 1-7     Legislature, Regular Session, 1991, is amended to read as follows:
 1-8           (a)  A groundwater [An underground water] conservation
 1-9     district, to be known as the Headwaters Groundwater [Underground
1-10     Water] Conservation District, is created in Kerr County, subject to
1-11     approval at a confirmation election under Section 8 of this Act.
1-12     The district is a governmental agency and a body politic and
1-13     corporate.
1-14           SECTION 2.  Section 2, Chapter 693, Acts of the 72nd
1-15     Legislature, Regular Session, 1991, is amended to read as follows:
1-16           Sec. 2.  DEFINITION [DEFINITIONS]. In this Act, "district"
1-17     means the Headwaters Groundwater [Underground Water] Conservation
1-18     District.
1-19           SECTION 3.  Chapter 693, Acts of the 72nd Legislature,
1-20     Regular Session, 1991, is amended by adding Section 2A to read as
1-21     follows:
1-22           Sec. 2A.  NAME CHANGE. A reference in law to the Headwaters
1-23     Underground Water Conservation District means the Headwaters
1-24     Groundwater Conservation District.
 2-1           SECTION 4.  Section 5, Chapter 693, Acts of the 72nd
 2-2     Legislature, Regular Session, 1991, is amended to read as follows:
 2-3           Sec. 5.  POWERS. (a)  The district has all of the rights,
 2-4     powers, privileges, authority, functions, and duties provided by
 2-5     the general law of this state, including Chapter 36 [Chapters 50
 2-6     and 52], Water Code, applicable to groundwater [underground water]
 2-7     conservation districts created under Article XVI, Section 59, of
 2-8     the Texas Constitution.  This Act prevails over any provision of
 2-9     general law that is in conflict or inconsistent with this Act.
2-10           (b)  The rights, powers, privileges, authority, functions,
2-11     and duties of the district are subject to the continuing right of
2-12     supervision of the state to be exercised by and through the Texas
2-13     Natural Resource Conservation [Water] Commission.
2-14           (c)  Notwithstanding Subsection (a), the following provisions
2-15     prevail over a conflicting or inconsistent provision of this Act:
2-16                 (1)  Sections 36.1071-36.108, Water Code;
2-17                 (2)  Sections 36.159-36.161, Water Code; and
2-18                 (3)  Subchapter I, Chapter 36, Water Code.
2-19           SECTION 5.  Section 6, Chapter 693, Acts of the 72nd
2-20     Legislature, Regular Session, 1991, is amended by amending
2-21     Subsection (e) and adding Subsection (h) to read as follows:
2-22           (e)  Each director must qualify to serve as director in the
2-23     manner provided by Section 36.055 [Sections 51.078 and 51.079],
2-24     Water Code.
2-25           (h)  To be eligible to serve on the board of directors, a
2-26     person must have been a resident of the district for at least one
2-27     year before the date the person takes office as a director.
 3-1           SECTION 6.  Section 9, Chapter 693, Acts of the 72nd
 3-2     Legislature, Regular Session, 1991, is amended to read as follows:
 3-3           Sec. 9.  ELECTION OF DIRECTORS. (a)  The directors of the
 3-4     district shall be elected according to the commissioners precinct
 3-5     method as provided by this section.
 3-6           (b)  Directors' elections shall occur on the general election
 3-7     dates for the election of county commissioners, except that if
 3-8     directors' elections may not lawfully be held on the general
 3-9     election dates for the election of county commissioners, directors'
3-10     elections shall occur on the first Saturday in May of odd-numbered
3-11     years.
3-12           (c)  One director shall be elected by the electors of the
3-13     entire district, and one director shall be elected from each county
3-14     commissioners precinct by the electors of that precinct.
3-15           (d)  To be qualified to be a candidate for or to serve as
3-16     director at large, a person must be a registered voter in the
3-17     district.  To be a candidate for or to serve as director from a
3-18     county commissioners precinct, a person must be a registered voter
3-19     of that precinct.
3-20           (e)  A person shall indicate on the application for a place
3-21     on the ballot:
3-22                 (1)  the precinct that the person seeks to represent;
3-23     or
3-24                 (2)  that the person seeks to represent the district at
3-25     large.
3-26           (f)  At the first election after the county commissioners
3-27     precincts are redrawn under Section 18, Article V, Texas
 4-1     Constitution, four new directors shall be elected to represent the
 4-2     precincts.  The directors elected shall draw lots to determine
 4-3     which two directors serve two-year terms and which two directors
 4-4     serve four-year terms.  [On the first Saturday in May of the second
 4-5     year after the year in which the district is authorized to be
 4-6     created at a confirmation election, an election shall be held in
 4-7     the district for the election of two directors who shall each serve
 4-8     two-year terms and three directors who shall each serve four year
 4-9     terms.  Thereafter, on the same date in each subsequent second
4-10     year, the appropriate number of directors shall be elected to the
4-11     board.]
4-12           SECTION 7.  Section 10(a), Chapter 693, Acts of the 72nd
4-13     Legislature, Regular Session, 1991, is amended to read as follows:
4-14           (a)  The district may [shall] contract with Kerr County or a
4-15     river authority whose boundaries are coextensive with the
4-16     district's boundaries for services available from the county or
4-17     river authority that directly relate to the district's activities.
4-18     Any party to a contract required by this subsection may petition
4-19     the commission to resolve any dispute arising out of the contract.
4-20           SECTION 8.  Notwithstanding Section 9, Chapter 693, Acts of
4-21     the 72nd Legislature, Regular Session, 1991, as amended by this
4-22     Act:
4-23                 (1)  the three directors of the Headwaters Groundwater
4-24     Conservation District elected at the directors' election in May
4-25     2001 shall continue to serve until their successors take office
4-26     following an election in November 2004, except that if the district
4-27     is prohibited from holding a directors' election on the same date
 5-1     as the general election for county commissioners, those three
 5-2     directors shall continue to serve until their successors take
 5-3     office following an election in May 2005;
 5-4                 (2)  at the district directors' election in November
 5-5     2004, or alternatively, in May 2005, one director shall be elected
 5-6     at large, one director shall be elected from Commissioners Precinct
 5-7     No. 2 of Kerr County, and one director shall be elected from
 5-8     Commissioners Precinct No. 4 of that county;
 5-9                 (3)  the two district directors elected in May 2003
5-10     shall continue to serve until their successors take office
5-11     following an election in November 2006, except that if the district
5-12     is prohibited from holding a directors' election on the same date
5-13     as the general election for county commissioners, those two
5-14     directors shall continue to serve until their successors take
5-15     office following an election in May 2007; and
5-16                 (4)  at the district directors' election in November
5-17     2006, or if necessary, in May 2007, one director shall be elected
5-18     from Commissioners Precinct No. 1 of Kerr County, and one director
5-19     shall be elected from Commissioners Precinct No. 3 of that county.
5-20           SECTION 9.  The eligibility requirement created by Section
5-21     6(h), Chapter 693, Acts of the 72nd Legislature, Regular Session,
5-22     1991, as added by this Act, applies only to a director elected
5-23     after the effective date of this Act.
5-24           SECTION 10.  This Act takes effect immediately if it receives
5-25     a vote of two-thirds of all the members elected to each house, as
5-26     provided by Section 39, Article III, Texas Constitution.  If this
5-27     Act does not receive the vote necessary for immediate effect, this
 6-1     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3543 was passed by the House on May
         5, 2001, by the following vote:  Yeas 140, Nays 0, 2 present, not
         voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3543 was passed by the Senate on May
         23, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor