1-1 AN ACT 1-2 relating to the development and management of the water resources 1-3 of the state, including the ratification of the creation of certain 1-4 groundwater conservation districts; providing penalties. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 ARTICLE 1. TEXAS WATER ADVISORY COUNCIL 1-7 SECTION 1.01. Subtitle A, Title 2, Water Code, is amended by 1-8 adding Chapter 9 to read as follows: 1-9 _CHAPTER 9. TEXAS WATER ADVISORY COUNCIL_ 1-10 _Sec. 9.001. DEFINITIONS. In this chapter:_ 1-11 _(1) "Authority" means an entity listed in Section_ 1-12 _9.010(b)._ 1-13 _(2) "Board" means the governing body of an authority._ 1-14 _(3) "Commission" means the Texas Natural Resource_ 1-15 _Conservation Commission._ 1-16 _(4) "Conjunctive use" means the combined use of_ 1-17 _groundwater and surface water sources that optimizes the beneficial_ 1-18 _characteristics of each source._ 1-19 _(5) "Council" means the Texas Water Advisory Council._ 1-20 _Sec. 9.002. CREATION AND MEMBERSHIP. (a) The council_ 1-21 _consists of 13 members as follows:_ 1-22 _(1) the chairman, or a board member designated by the_ 1-23 _chairman, of the Texas Water Development Board;_ 1-24 _(2) the chairman, or a commissioner designated by the_ 1-25 _chairman, of the commission;_ 2-1 _(3) the chairman, or a commissioner designated by the_ 2-2 _chairman, of the Parks and Wildlife Commission;_ 2-3 _(4) the commissioner of agriculture;_ 2-4 _(5) the commissioner of the General Land Office;_ 2-5 _(6) three members of the house of representatives_ 2-6 _appointed by the speaker of the house of representatives;_ 2-7 _(7) two members of the senate appointed by the_ 2-8 _lieutenant governor; and_ 2-9 _(8) three members of the general public appointed by_ 2-10 _the governor, one representing groundwater management, one_ 2-11 _representing surface water management, and one representing the_ 2-12 _environmental community._ 2-13 _(b) Council members may not delegate participation or_ 2-14 _council duties to staff._ 2-15 _Sec. 9.003. TERMS. (a) Except for the commissioner of the_ 2-16 _General Land Office and the commissioner of agriculture, council_ 2-17 _members who are officials of state agencies serve terms as_ 2-18 _determined by the chairman of each agency._ 2-19 _(b) Council members who are members of the general public_ 2-20 _serve staggered six-year terms with the term of one member expiring_ 2-21 _August 31 of each odd-numbered year._ 2-22 _(c) Council members may be reappointed to serve additional_ 2-23 _terms._ 2-24 _(d) A vacancy on the council shall be filled by appointment_ 2-25 _by the original appointing authority for the unexpired term._ 2-26 _Sec. 9.004. OFFICERS OF THE COUNCIL. (a) The governor_ 3-1 _shall appoint a council member as the chair of the council for a_ 3-2 _two-year term expiring May 31 of each even-numbered year._ 3-3 _(b) The council shall have a secretary of the council who_ 3-4 _serves at the pleasure of the council and is accountable only to_ 3-5 _the council._ 3-6 _Sec. 9.005. COUNCIL STAFF. On request by the council, the_ 3-7 _commission, the Parks and Wildlife Department, the Department of_ 3-8 _Agriculture, and the Texas Water Development Board shall provide_ 3-9 _any staff other than the secretary of the council necessary to_ 3-10 _assist the council in the performance of its duties._ 3-11 _Sec. 9.006. MEETINGS. (a) The council shall meet at least_ 3-12 _once in each calendar quarter. Six members constitute a quorum._ 3-13 _(b) The council is subject to Chapters 551 and 2001,_ 3-14 _Government Code._ 3-15 _Sec. 9.007. COMPENSATION OF MEMBERS. (a) Members of the_ 3-16 _council serve without compensation but may be reimbursed by_ 3-17 _legislative appropriation for actual and necessary expenses related_ 3-18 _to the performance of council duties._ 3-19 _(b) Reimbursement under Subsection (a) is subject to the_ 3-20 _approval of the chair._ 3-21 _Sec. 9.008. POWERS AND DUTIES OF COUNCIL. (a) The council_ 3-22 _shall:_ 3-23 _(1) heighten the level of dialogue on significant_ 3-24 _water policy issues and, in an advisory role only, strive to_ 3-25 _provide focus and recommendations on state water policy_ 3-26 _initiatives, including:_ 4-1 _(A) promoting flexibility and incentives for_ 4-2 _water desalination, brush control, regionalization, weather_ 4-3 _modification projects, and public-private partnerships relating to_ 4-4 _water projects;_ 4-5 _(B) promoting adequate financing for surface_ 4-6 _water and groundwater projects;_ 4-7 _(C) development of water conservation and_ 4-8 _drought management projects;_ 4-9 _(D) implementation of approved regional and_ 4-10 _state water plans;_ 4-11 _(E) encouraging commonality of technical data_ 4-12 _and information such as joint agency studies, freshwater inflow_ 4-13 _recommendations, surface water and groundwater availability models,_ 4-14 _and bay and estuary and instream flow recommendations developed by_ 4-15 _the Parks and Wildlife Department, the commission, and the Texas_ 4-16 _Water Development Board; and_ 4-17 _(F) encouraging the use of supplemental_ 4-18 _environmental projects for water infrastructure needs and enhancing_ 4-19 _the aquatic environment and habitat in enforcement proceedings at a_ 4-20 _state agency or political subdivision;_ 4-21 _(2) encourage the enhancement and coordination of_ 4-22 _state, interstate, and international efforts to improve_ 4-23 _environmental quality and living conditions along the Texas- Mexico_ 4-24 _border;_ 4-25 _(3) coordinate a unified state position on federal and_ 4-26 _international water issues; and_ 5-1 _(4) advise the Texas Water Development Board on_ 5-2 _developing criteria for prioritizing the funding of projects in the_ 5-3 _state water plan._ 5-4 _(b) The council may not:_ 5-5 _(1) adopt rules;_ 5-6 _(2) regulate water use, water quality, or any other_ 5-7 _aspect of water resource management;_ 5-8 _(3) plan or construct water resource projects or have_ 5-9 _such projects planned or constructed;_ 5-10 _(4) grant or lend money for the construction of water_ 5-11 _resource projects;_ 5-12 _(5) establish water resource management standards or_ 5-13 _otherwise usurp the authority of or infringe upon the duties,_ 5-14 _responsibilities, or powers of local, regional, or state water_ 5-15 _management entities, including groundwater districts, river_ 5-16 _authorities and compacts, regional water planning groups, or member_ 5-17 _agencies of the council; or_ 5-18 _(6) consider or discuss a specific permit or project_ 5-19 _or recommendation for a project until the water permit has been_ 5-20 _issued by the state and all motions for rehearing have been_ 5-21 _overruled._ 5-22 _Sec. 9.009. REPORT. Not later than December 1 of each_ 5-23 _even-numbered year, the council shall submit a report to the_ 5-24 _governor, lieutenant governor, and speaker of the house of_ 5-25 _representatives and to the senate and house standing committees_ 5-26 _with primary responsibility over water resource management and_ 6-1 _financing. The report must include findings of the council made in_ 6-2 _the periodic reviews of authorities during the preceding two- year_ 6-3 _period and any other findings and recommendations the council_ 6-4 _considers necessary._ 6-5 _Sec. 9.010. ANALYSIS OF AUTHORITIES. (a) On a five- year_ 6-6 _cycle, each authority shall provide the council with the_ 6-7 _information required by Sections 9.011 and 9.012. The information_ 6-8 _shall be provided to the council in the order of groups described_ 6-9 _in Subsection (b), with the information submitted by group 1 by the_ 6-10 _council's first quarterly meeting of the five-year period and group_ 6-11 _2 submitted by the council's third quarterly meeting of the period._ 6-12 _The council shall continue in numerical order to receive the_ 6-13 _information by each group at every other quarterly meeting until_ 6-14 _all 10 groups have been completed and then shall recommence the_ 6-15 _cycle._ 6-16 _(b) Authorities shall provide the information under_ 6-17 _Subsection (a) in the following groups:_ 6-18 _(1) in group 1, Northeast Texas Municipal Water_ 6-19 _District;_ 6-20 _(2) in group 2, Angelina and Neches River Authority,_ 6-21 _Lower Neches Valley Authority, Sabine River Authority, and Upper_ 6-22 _Neches River Municipal Water Authority;_ 6-23 _(3) in group 3, Red River Authority of Texas, Sulphur_ 6-24 _River Municipal Water District, and Sulphur River Basin Authority;_ 6-25 _(4) in group 4, San Jacinto River Authority, Gulf_ 6-26 _Coast Water Authority, and North Harris County Regional Water_ 7-1 _Authority;_ 7-2 _(5) in group 5, North Texas Municipal Water District,_ 7-3 _Tarrant Regional Water District, Trinity River Authority of Texas,_ 7-4 _and Dallas County Utility and Reclamation District;_ 7-5 _(6) in group 6, Brazos River Authority, West Central_ 7-6 _Texas Municipal Water District, and North Central Texas Municipal_ 7-7 _Water Authority;_ 7-8 _(7) in group 7, Guadalupe-Blanco River Authority,_ 7-9 _Lavaca-Navidad River Authority, Lower Colorado River Authority, and_ 7-10 _Upper Guadalupe River Authority;_ 7-11 _(8) in group 8, Nueces River Authority, San Antonio_ 7-12 _River Authority, and Bexar-Medina-Atascosa Counties Water Control_ 7-13 _and Improvement District No. 1;_ 7-14 _(9) in group 9, Colorado River Municipal Water_ 7-15 _District, Central Colorado River Authority, and Upper Colorado_ 7-16 _River Authority; and_ 7-17 _(10) in group 10, Canadian River Municipal Water_ 7-18 _Authority and Mackenzie Municipal Water Authority._ 7-19 _(c) The council may not require an authority under this_ 7-20 _section to submit the information required under Section 9.012 more_ 7-21 _than once every five years. The council may, however, request an_ 7-22 _authority that has submitted information to provide follow-up_ 7-23 _information on any specific item or issue raised during the initial_ 7-24 _council analysis._ 7-25 _(d) The council, on a request by an authority, may modify_ 7-26 _the schedule in order to have the flexibility in scheduling the_ 8-1 _information submittal and council analysis, if needed, to be more_ 8-2 _responsive to particular circumstances, changing conditions, or_ 8-3 _time-sensitive conflicts._ 8-4 _Sec. 9.011. PERFORMANCE STANDARDS. (a) Before its_ 8-5 _five-year analysis under Section 9.010, an authority shall report_ 8-6 _to the council a self-assessment of:_ 8-7 _(1) how the authority is achieving its stated mission_ 8-8 _and goals, including an identification of any barriers to achieving_ 8-9 _the mission and goals;_ 8-10 _(2) how the authority is providing service to its_ 8-11 _customers, including mechanisms the authority provides to encourage_ 8-12 _input from the public and its customers;_ 8-13 _(3) how the authority is addressing issues raised by_ 8-14 _its most recent management audit, if the audit is required by_ 8-15 _commission rule to be performed, including its administrative_ 8-16 _policies; and_ 8-17 _(4) the authority's role in the regional water_ 8-18 _planning process._ 8-19 _(b) The authority's report to the council under this section_ 8-20 _must include recommendations related to:_ 8-21 _(1) any interregional issues the authority has_ 8-22 _identified as problematic and any potential solutions to those_ 8-23 _issues; and_ 8-24 _(2) solutions to any barriers the authority determines_ 8-25 _are interfering with the successful implementation of the approved_ 8-26 _regional water plan or state water plan._ 9-1 _Sec. 9.012. ADMINISTRATIVE POLICIES FOR AUTHORITIES. The_ 9-2 _commission shall expand the applicability of its rules under 30_ 9-3 _T.A.C. Chapter 292 to include all the authorities subject to this_ 9-4 _chapter. The commission shall provide the council with copies of_ 9-5 _the most recent information provided by each authority in_ 9-6 _accordance with its administrative rules._ 9-7 _Sec. 9.013. GIFTS AND GRANTS. The council may accept gifts_ 9-8 _and grants from any source to carry out the purposes of this_ 9-9 _chapter. The use of gifts and grants other than legislative_ 9-10 _appropriations is subject only to limitations contained in the gift_ 9-11 _or grant._ 9-12 _Sec. 9.014. FUNDING. (a) The interagency water advisory_ 9-13 _account is a special account in the general revenue fund._ 9-14 _(b) The interagency water advisory account consists of_ 9-15 _legislative appropriations, gifts and grants received under Section_ 9-16 _9.013, and other money required by law to be deposited in the_ 9-17 _account._ 9-18 _(c) Money in the interagency water advisory account may be_ 9-19 _used only as provided by this chapter._ 9-20 _Sec. 9.015. CONTINUING RIGHT OF SUPERVISION. Nothing in_ 9-21 _this chapter affects the continuing right of supervision over_ 9-22 _authorities by the commission as provided by Section 12.081._ 9-23 _Sec. 9.016. PUBLIC PARTICIPATION. The council shall_ 9-24 _encourage public input regarding the exercise of its powers and_ 9-25 _duties under Section 9.008, its preparation of the report described_ 9-26 _in Section 9.009, and its analysis of authorities under Sections_ 10-1 _9.010 and 9.011._ 10-2 _Sec. 9.017. DISSOLUTION OF COUNCIL AND ACCOUNT. Unless_ 10-3 _extended by the 78th Texas Legislature, this chapter and the_ 10-4 _interagency water advisory account expire on September 1, 2005._ 10-5 ARTICLE 2. SURFACE WATER AND GROUNDWATER 10-6 CONJUNCTIVE MANAGEMENT; REGULATORY INCENTIVES 10-7 SECTION 2.01. Section 11.002, Water Code, is amended by 10-8 adding Subdivisions (11), (12), (13), and (14) to read as follows: 10-9 _(11) "River basin" means a river or coastal basin_ 10-10 _designated by the board as a river basin under Section 16.051. The_ 10-11 _term does not include waters originating in bays or arms of the_ 10-12 _Gulf of Mexico._ 10-13 _(12) "Agriculture" means any of the following_ 10-14 _activities:_ 10-15 _(A) cultivating the soil to produce crops for_ 10-16 _human food, animal feed, or planting seed or for the production of_ 10-17 _fibers;_ 10-18 _(B) the practice of floriculture, viticulture,_ 10-19 _silviculture, and horticulture, including the cultivation of plants_ 10-20 _in containers or nonsoil media, by a nursery grower;_ 10-21 _(C) raising, feeding, or keeping animals for_ 10-22 _breeding purposes or for the production of food or fiber, leather,_ 10-23 _pelts, or other tangible products having a commercial value;_ 10-24 _(D) raising or keeping equine animals;_ 10-25 _(E) wildlife management; and_ 10-26 _(F) planting cover crops, including cover crops_ 11-1 _cultivated for transplantation, or leaving land idle for the_ 11-2 _purpose of participating in any governmental program or normal crop_ 11-3 _or livestock rotation procedure._ 11-4 _(13) "Agricultural use" means any use or activity_ 11-5 _involving agriculture, including irrigation._ 11-6 _(14) "Nursery grower" means a person who grows more_ 11-7 _than 50 percent of the products that the person either sells or_ 11-8 _leases, regardless of the variety sold, leased, or grown. For the_ 11-9 _purpose of this definition, "grow" means the actual cultivation or_ 11-10 _propagation of the product beyond the mere holding or maintaining_ 11-11 _of the item prior to sale or lease and typically includes_ 11-12 _activities associated with the production or multiplying of stock_ 11-13 _such as the development of new plants from cuttings, grafts, plugs,_ 11-14 _or seedlings._ 11-15 SECTION 2.02. Subsection (a), Section 11.023, Water Code, is 11-16 amended to read as follows: 11-17 (a) State water may be appropriated, stored, or diverted 11-18 for: 11-19 (1) domestic and municipal uses, including water for 11-20 sustaining human life and the life of domestic animals; 11-21 (2) _agricultural uses and_ industrial uses, meaning 11-22 processes designed to convert materials of a lower order of value 11-23 into forms having greater usability and commercial value, including 11-24 the development of power by means other than hydroelectric; 11-25 (3) [irrigation;] 11-26 [(4)] mining and recovery of minerals; 12-1 _(4)_ [(5)] hydroelectric power; 12-2 _(5)_ [(6)] navigation; 12-3 _(6)_ [(7)] recreation and pleasure; 12-4 _(7)_ [(8) stock raising;] 12-5 [(9)] public parks; and 12-6 _(8)_ [(10)] game preserves. 12-7 SECTION 2.03. Section 11.024, Water Code, is amended to read 12-8 as follows: 12-9 Sec. 11.024. APPROPRIATION: PREFERENCES. In order to 12-10 conserve and properly utilize state water, the public welfare 12-11 requires not only recognition of beneficial uses but also a 12-12 constructive public policy regarding the preferences between these 12-13 uses, and it is therefore declared to be the public policy of this 12-14 state that in appropriating state water preference shall be given 12-15 to the following uses in the order named: 12-16 (1) domestic and municipal uses, including water for 12-17 sustaining human life and the life of domestic animals, it being 12-18 the public policy of the state and for the benefit of the greatest 12-19 number of people that in the appropriation of water as herein 12-20 defined, the appropriation of water for domestic and municipal uses 12-21 shall be and remain superior to the rights of the state to 12-22 appropriate the same for all other purposes; 12-23 (2) _agricultural uses and_ industrial uses, _which means_ 12-24 [meaning] processes designed to convert materials of a lower order 12-25 of value into forms having greater usability and commercial value, 12-26 including the development of power by means other than 13-1 hydroelectric; 13-2 (3) [irrigation;] 13-3 [(4)] mining and recovery of minerals; 13-4 _(4)_ [(5)] hydroelectric power; 13-5 _(5)_ [(6)] navigation; 13-6 _(6)_ [(7)] recreation and pleasure; and 13-7 _(7)_ [(8)] other beneficial uses. 13-8 SECTION 2.04. Section 11.038, Water Code, is amended to read 13-9 as follows: 13-10 Sec. 11.038. RIGHTS OF OWNERS OF LAND ADJOINING CANAL, ETC. 13-11 (a) A person who owns or holds a possessory interest in land 13-12 adjoining or contiguous to a canal, ditch, flume, lateral, dam, 13-13 reservoir, or lake constructed and maintained under the provisions 13-14 of this chapter and who has secured a right to the use of water in 13-15 the canal, ditch, flume, lateral, dam, reservoir, or lake is 13-16 entitled to be supplied from the canal, ditch, flume, lateral, dam, 13-17 reservoir, or lake with water [for irrigation of the land and] for 13-18 _agricultural uses,_ mining, milling, manufacturing, development of 13-19 power, and stock raising, in accordance with the terms of _the_ 13-20 _person's_ [his] contract. 13-21 (b) If the person, association of persons, or corporation 13-22 owning or controlling the water and the person who owns or holds a 13-23 possessory interest in the adjoining land cannot agree on a price 13-24 for a permanent water right or for the use of enough water for 13-25 irrigation of the person's land or for _agricultural uses,_ mining, 13-26 milling, manufacturing, development of power, or stock raising, 14-1 then the party owning or controlling the water, if _the person_ [he] 14-2 has any water not contracted to others, shall furnish the water 14-3 necessary for these purposes at reasonable and nondiscriminatory 14-4 prices. 14-5 SECTION 2.05. Subsection (p), Section 11.085, Water Code, is 14-6 amended to read as follows: 14-7 (p) [For the purposes of this section, a basin is designated 14-8 as provided in accordance with Section 16.051 of this code.] A 14-9 _river_ basin may not be redesignated in order to allow a transfer or 14-10 diversion of water otherwise in violation of this section. 14-11 SECTION 2.06. Section 11.088, Water Code, is amended to read 14-12 as follows: 14-13 Sec. 11.088. DESTRUCTION OF WATERWORKS. No person may 14-14 wilfully cut, dig, break down, destroy, or injure or open a gate, 14-15 bank, embankment, or side of any ditch, canal, reservoir, flume, 14-16 tunnel or feeder, pump or machinery, building, structure, or other 14-17 work which is the property of another, or in which another owns an 14-18 interest, or which is lawfully possessed or being used by another, 14-19 and which is used for [irrigation,] milling, mining, manufacturing, 14-20 the development of power, domestic purposes, _agricultural uses,_ or 14-21 stock raising, with intent to: 14-22 (1) maliciously injure a person, association, 14-23 corporation, water improvement or irrigation district; 14-24 (2) gain advantage for himself; or 14-25 (3) take or steal water or cause water to run out or 14-26 waste out of the ditch, canal, or reservoir, feeder, or flume for 15-1 his own advantage or to the injury of a person lawfully entitled to 15-2 the use of the water or the use or management of the ditch, canal, 15-3 tunnel, reservoir, feeder, flume, machine, structure, or other 15-4 irrigation work. 15-5 SECTION 2.07. Subsection (a), Section 11.122, Water Code, is 15-6 amended to read as follows: 15-7 (a) All holders of permits, certified filings, and 15-8 certificates of adjudication issued under Section 11.323 of this 15-9 code shall obtain from the commission authority to change the place 15-10 of use, purpose of use, point of diversion, rate of diversion, 15-11 acreage to be irrigated, or otherwise alter a water right. _Without_ 15-12 _obtaining an amendment, the holder of a permit, certified filing,_ 15-13 _or certificate of adjudication that includes industrial or_ 15-14 _irrigation use may use or supply water for an agricultural use that_ 15-15 _was classified as industrial or irrigation before September 1,_ 15-16 _2001._ 15-17 SECTION 2.08. Subsection (b), Section 11.134, Water Code, is 15-18 amended to read as follows: 15-19 (b) The commission shall grant the application only if: 15-20 (1) the application conforms to the requirements 15-21 prescribed by this chapter and is accompanied by the prescribed 15-22 fee; 15-23 (2) unappropriated water is available in the source of 15-24 supply; 15-25 (3) the proposed appropriation: 15-26 (A) is intended for a beneficial use; 16-1 (B) does not impair existing water rights or 16-2 vested riparian rights; 16-3 (C) is not detrimental to the public welfare; 16-4 (D) considers the _assessments performed under_ 16-5 _Sections 11.147(d) and (e) and Sections 11.150, 11.151, and 11.152_ 16-6 [effects of any hydrological connection between surface water and 16-7 groundwater]; and 16-8 (E) addresses a water supply need in a manner 16-9 that is consistent with the state water plan and _the relevant_ [an] 16-10 approved regional water plan for any area in which the proposed 16-11 appropriation is located, unless the commission determines that 16-12 conditions warrant waiver of this requirement; and 16-13 (4) the applicant has provided evidence that 16-14 reasonable diligence will be used to avoid waste and achieve water 16-15 conservation as defined by Subdivision (8)(B), Section 11.002[, of 16-16 this code]. 16-17 SECTION 2.09. Section 11.142, Water Code, is amended to read 16-18 as follows: 16-19 Sec. 11.142. PERMIT EXEMPTIONS. (a) Without obtaining a 16-20 permit, a person may construct on _the person's_ [his] own property a 16-21 dam or reservoir with normal storage of not more than 200 acre- feet 16-22 of water for domestic and livestock purposes. _A person who_ 16-23 _temporarily stores more than 200 acre-feet of water in a dam or_ 16-24 _reservoir described by this subsection is not required to obtain a_ 16-25 _permit for the dam or reservoir if the person can demonstrate that_ 16-26 _the person has not stored in the dam or reservoir more than 200_ 17-1 _acre-feet of water on average in any 12-month period. This_ 17-2 _exemption does not apply to a commercial operation._ 17-3 (b) _Without obtaining a permit, a person may construct on_ 17-4 _the person's property a dam or reservoir with normal storage of not_ 17-5 _more than 200 acre-feet of water for fish and wildlife purposes if_ 17-6 _the property on which the dam or reservoir will be constructed is_ 17-7 _qualified open-space land, as defined by Section 23.51, Tax Code._ 17-8 _This exemption does not apply to a commercial operation._ 17-9 _(c)_ Without obtaining a permit, a person who is drilling and 17-10 producing petroleum and conducting operations associated with 17-11 drilling and producing petroleum may take for those purposes state 17-12 water from the Gulf of Mexico and adjacent bays and arms of the 17-13 Gulf of Mexico in an amount not to exceed one acre-foot during each 17-14 24-hour period. 17-15 _(d)_ [(c)] Without obtaining a permit, a person may construct 17-16 or maintain a reservoir for the sole purpose of sediment control as 17-17 part of a surface coal mining operation under the Texas Surface 17-18 Coal Mining and Reclamation Act (Article 5920-11, Vernon's Texas 17-19 Civil Statutes). 17-20 SECTION 2.10. Section 11.146, Water Code, is amended by 17-21 adding Subsection (g) to read as follows: 17-22 _(g) This section does not apply to a permit for construction_ 17-23 _of a reservoir designed for the storage of more than 50,000_ 17-24 _acre-feet of water._ 17-25 SECTION 2.11. Subsection (b), Section 11.147, Water Code, is 17-26 amended to read as follows: 18-1 (b) In its consideration of an application for a permit to 18-2 store, take, or divert water, the commission shall assess the 18-3 effects, if any, of the issuance of the permit on the bays and 18-4 estuaries of Texas. For permits issued within an area that is 200 18-5 river miles of the coast, to commence from the mouth of the river 18-6 thence inland, the commission shall include in the permit, to the 18-7 extent practicable when considering all public interests _and the_ 18-8 _studies mandated by Section 16.058 as evaluated under Section_ 18-9 _11.1491_, those conditions considered necessary to maintain 18-10 beneficial inflows to any affected bay and estuary system. 18-11 SECTION 2.12. Subsection (b), Section 11.173, Water Code, is 18-12 amended to read as follows: 18-13 (b) A permit, certified filing, or certificate of 18-14 adjudication or a portion of a permit, certified filing, or 18-15 certificate of adjudication is exempt from cancellation under 18-16 Subsection (a) [of this section]: 18-17 (1) to the extent of the owner's participation in the 18-18 Conservation Reserve Program authorized by the Food Security Act, 18-19 Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985) 18-20 or a similar governmental program; [or] 18-21 (2) if _a significant_ [any] portion of the water 18-22 authorized to be used pursuant to a permit, certified filing, or 18-23 certificate of adjudication has been used in accordance with a 18-24 _specific recommendation for meeting a water need included in the_ 18-25 regional water plan approved pursuant to Section 16.053_;_ 18-26 _(3) if the permit, certified filing, or certificate of_ 19-1 _adjudication:_ 19-2 _(A) was obtained to meet demonstrated long- term_ 19-3 _public water supply or electric generation needs as evidenced by a_ 19-4 _water management plan developed by the holder; and_ 19-5 _(B) is consistent with projections of future_ 19-6 _water needs contained in the state water plan; or_ 19-7 _(4) if the permit, certified filing, or certificate of_ 19-8 _adjudication was obtained as the result of the construction of a_ 19-9 _reservoir funded, in whole or in part, by the holder of the permit,_ 19-10 _certified filing, or certificate of adjudication as part of the_ 19-11 _holder's long-term water planning_ [of this code]. 19-12 SECTION 2.13. Subsection (b), Section 11.177, Water Code, is 19-13 amended to read as follows: 19-14 (b) In determining what constitutes reasonable diligence or 19-15 a justified nonuse as used in Subsection (a)(2) [of this section], 19-16 the commission shall give consideration to: 19-17 (1) whether sufficient water is available in the 19-18 source of supply to meet all or part of the appropriation during 19-19 the 10-year period of nonuse; 19-20 (2) whether the nonuse is justified by the holder's 19-21 participation in the federal Conservation Reserve Program or a 19-22 similar governmental program as provided by Section 11.173(b)(1) 19-23 [of this code]; 19-24 (3) [whether the permit, certified filing, or 19-25 certificate of adjudication was obtained to meet demonstrated 19-26 long-term public water supply or electric generation needs as 20-1 evidenced by a water management plan developed by the holder and 20-2 consistent with projections of future water needs contained in the 20-3 state water plan;] 20-4 [(4) whether the permit, certified filing, or 20-5 certificate of adjudication was obtained as the result of the 20-6 construction of a reservoir funded, in whole or in part, by the 20-7 holder of the permit, certified filing, or certificate of 20-8 adjudication as part of the holder's long-term water planning;] 20-9 [(5)] whether the existing or proposed authorized 20-10 purpose and place of use are consistent with an approved regional 20-11 water plan as provided by Section 16.053 [of this code]; 20-12 _(4)_ [(6)] whether the permit, certified filing, or 20-13 certificate of adjudication has been deposited into the Texas Water 20-14 Bank as provided by Sections 15.7031 and 15.704 [of this code] or 20-15 whether it can be shown that the water right or water available 20-16 under the right is currently being made available for purchase 20-17 through private marketing efforts; or 20-18 _(5)_ [(7)] whether the permit, certified filing, or 20-19 certificate of adjudication has been reserved to provide for 20-20 instream flows or bay and estuary inflows. 20-21 SECTION 2.14. Subdivision (2), Section 15.701, Water Code, 20-22 is amended to read as follows: 20-23 (2) "Depositor" means a person who deposits or has on 20-24 deposit a water right in the water bank _or trust_. 20-25 SECTION 2.15. Section 16.012, Water Code, is amended by 20-26 adding Subsections (l) and (m) to read as follows: 21-1 _(l) The executive administrator shall obtain or develop_ 21-2 _groundwater availability models for major and minor aquifers in_ 21-3 _coordination with groundwater conservation districts and regional_ 21-4 _water planning groups created under Section 16.053 that overlie the_ 21-5 _aquifers. Modeling of major aquifers shall be completed not later_ 21-6 _than October 1, 2004. On completing a groundwater availability_ 21-7 _model for an aquifer, the executive administrator shall provide the_ 21-8 _model to each groundwater conservation district and each regional_ 21-9 _water planning group created under Section 16.053 overlying that_ 21-10 _aquifer._ 21-11 _(m) The executive administrator may conduct surveys of_ 21-12 _entities using groundwater and surface water at intervals_ 21-13 _determined appropriate by the executive administrator to gather_ 21-14 _data to be used for long-term water supply planning. Recipients of_ 21-15 _the survey shall complete and return the survey to the executive_ 21-16 _administrator. A person who fails to timely complete and return_ 21-17 _the survey is not eligible for funding from the board for board_ 21-18 _programs and is ineligible to obtain permits, permit amendments, or_ 21-19 _permit renewals from the commission under Chapter 11. A person who_ 21-20 _fails to complete and return the survey commits an offense that is_ 21-21 _punishable as a Class C misdemeanor. Surveys obtained by the board_ 21-22 _from nongovernmental entities are excepted from the requirements of_ 21-23 _Section 552.021, Government Code, unless otherwise directed in_ 21-24 _writing by the person completing the survey. This subsection does_ 21-25 _not apply to survey information regarding windmills used for_ 21-26 _domestic and livestock use._ 22-1 SECTION 2.16. Subsections (a), (f), (g), and (h), Section 22-2 16.051, Water Code, are amended to read as follows: 22-3 (a) _Not_ [No] later than January 5, 2002, and _before the end_ 22-4 _of each successive five-year period after that date_ [every five 22-5 years thereafter], the board shall _prepare, develop, formulate, and_ 22-6 adopt a comprehensive state water plan that incorporates the 22-7 regional water plans approved under Section 16.053. The state 22-8 water plan shall provide for the orderly development, management, 22-9 and conservation of water resources and preparation for and 22-10 response to drought conditions, in order that sufficient water will 22-11 be available at a reasonable cost to ensure public health, safety, 22-12 and welfare; further economic development; and protect the 22-13 agricultural and natural resources of the entire state. 22-14 (f) The legislature may designate a[:] 22-15 [(1)] river or stream segment of unique ecological 22-16 value_. This designation solely means that a state agency or_ 22-17 _political subdivision of the state may not finance the actual_ 22-18 _construction of a reservoir in a specific river or stream segment_ 22-19 _designated by the legislature under this subsection._ 22-20 _(g) The legislature may designate a_[; or] 22-21 [(2)] site of unique value for the construction of a 22-22 reservoir. 22-23 [(g)] A state agency or political subdivision of the state 22-24 may not obtain a fee title or an easement that would[:] 22-25 [(1) destroy the unique ecological value of a river or 22-26 stream segment designated by the legislature under Subsection (f) 23-1 of this section; or] 23-2 [(2)] significantly prevent the construction of a 23-3 reservoir on a site designated by the legislature under [Subsection 23-4 (f) of] this _subsection_ [section]. 23-5 (h) The board, the commission, or the Parks and Wildlife 23-6 Department or a political subdivision affected by an action taken 23-7 in violation of Subsection _(f) or_ (g) [of this section] may bring a 23-8 cause of action to remedy or prevent the violation. A cause of 23-9 action brought under this subsection must be filed in a district 23-10 court in Travis County or in the county in which the action is 23-11 proposed or occurring. 23-12 SECTION 2.17. Subsections (d) and (e), Section 16.053, Water 23-13 Code, are amended to read as follows: 23-14 (d) The board shall provide guidelines for the consideration 23-15 of existing regional planning efforts by regional water planning 23-16 groups. The board shall provide guidelines for the format in which 23-17 information shall be presented in the regional water plans. _The_ 23-18 _board by rule shall require a holder of a surface water permit, a_ 23-19 _certified filing, or a certificate of adjudication for surface_ 23-20 _water, a holder of a permit for the export of groundwater from a_ 23-21 _groundwater conservation district, a retail public water supplier,_ 23-22 _a wholesale water provider, an irrigation district, and any other_ 23-23 _person who is transporting groundwater or surface water 20 miles or_ 23-24 _more to report to the board information on certain water pipelines_ 23-25 _and other facilities that can be used for water conveyance._ 23-26 Nothing in the initial planning effort shall prevent development of 24-1 a management plan or project where local or regional needs require 24-2 action prior to completion of the initial regional water plan under 24-3 this section. 24-4 (e) Each regional water planning group shall submit to the 24-5 board a regional water plan that: 24-6 (1) is consistent with the guidance principles for the 24-7 state water plan adopted by the board under Section 16.051(d); 24-8 (2) provides information based on data provided or 24-9 approved by the board in a format consistent with the guidelines 24-10 provided by the board under Subsection (d); 24-11 (3) identifies: 24-12 (A) each source of water supply in the regional 24-13 water planning area in accordance with the guidelines provided by 24-14 the board under Subsections (d) and (f); 24-15 (B) factors specific to each source of water 24-16 supply to be considered in determining whether to initiate a 24-17 drought response; [and] 24-18 (C) actions to be taken as part of the response_;_ 24-19 _and_ 24-20 _(D) information on water pipelines and other_ 24-21 _facilities that can be used for water conveyance, including, but_ 24-22 _not limited to, currently used and abandoned oil, gas, and water_ 24-23 _pipelines, as provided by board rules and guidelines_; 24-24 (4) has specific provisions for water management 24-25 strategies to be used during a drought of record; 24-26 (5) includes but is not limited to consideration of 25-1 the following: 25-2 (A) any existing water or drought planning 25-3 efforts addressing all or a portion of the region; 25-4 (B) certified groundwater conservation district 25-5 management plans and other plans submitted under Section 16.054; 25-6 (C) all potentially feasible water management 25-7 strategies, including but not limited to improved conservation, 25-8 reuse, and management of existing water supplies, acquisition of 25-9 available existing water supplies, and development of new water 25-10 supplies; 25-11 (D) protection of existing water rights in the 25-12 region; 25-13 (E) opportunities for and the benefits of 25-14 developing regional water supply facilities or providing regional 25-15 management of water supply facilities; 25-16 (F) appropriate provision for environmental 25-17 water needs and for the effect of upstream development on the bays, 25-18 estuaries, and arms of the Gulf of Mexico and the effect of plans 25-19 on navigation; 25-20 (G) provisions in Section 11.085(k)(1) if 25-21 interbasin transfers are contemplated; 25-22 (H) voluntary transfer of water within the 25-23 region using, but not limited to, regional water banks, sales, 25-24 leases, options, subordination agreements, and financing 25-25 agreements; and 25-26 (I) emergency transfer of water under Section 26-1 11.139, including information on the part of each permit, certified 26-2 filing, or certificate of adjudication for nonmunicipal use in the 26-3 region that may be transferred without causing unreasonable damage 26-4 to the property of the nonmunicipal water rights holder; [and] 26-5 (6) identifies river and stream segments of unique 26-6 ecological value and sites of unique value for the construction of 26-7 reservoirs that the regional water planning group recommends for 26-8 protection under Section 16.051_;_ 26-9 _(7) assesses the impact of the plan on unique river_ 26-10 _and stream segments identified in Subdivision (6) if the regional_ 26-11 _water planning group or the legislature determines that a site of_ 26-12 _unique ecological value exists; and_ 26-13 _(8) describes the impact of proposed water projects on_ 26-14 _water quality_. 26-15 SECTION 2.18. Subdivision (7), Subsection (h), Section 26-16 16.053, Water Code, is amended to read as follows: 26-17 (7) The board may approve a regional water plan only 26-18 after it has determined that_:_ 26-19 _(A)_ all interregional conflicts involving that 26-20 regional water planning area have been resolved_;_ 26-21 _(B) the plan includes water conservation_ 26-22 _practices and drought management measures incorporating, at a_ 26-23 _minimum, the provisions of Sections 11.1271 and 11.1272; and_ 26-24 _(C) the plan is consistent with long-term_ 26-25 _protection of the state's water resources, agricultural resources,_ 26-26 _and natural resources as embodied in the guidance principles_ 27-1 _adopted under Section 16.051(d)_. 27-2 SECTION 2.19. Section 16.053, Water Code, is amended by 27-3 amending Subsection (j) and adding Subsections (p) and (q) to read 27-4 as follows: 27-5 (j) The board may provide financial assistance to political 27-6 subdivisions under Subchapters E and F of this chapter, Subchapters 27-7 C, D, E, F, [and] J, _O, and P,_ Chapter 15, and Subchapters D, I, K, 27-8 and L, Chapter 17, for water supply projects only if: 27-9 (1) the board determines that the needs to be 27-10 addressed by the project will be addressed in a manner that is 27-11 consistent with the state water plan; and 27-12 (2) beginning January 5, 2002, the board: 27-13 (A) has approved a regional water plan as 27-14 provided by Subsection (i), and any required updates of the plan, 27-15 for the region of the state that includes the area benefiting from 27-16 the proposed project; and 27-17 (B) determines that the needs to be addressed by 27-18 the project will be addressed in a manner that is consistent with 27-19 that regional water plan. 27-20 _(p) If a groundwater conservation district files a petition_ 27-21 _with the board stating that a conflict requiring resolution may_ 27-22 _exist between the district's certified groundwater conservation_ 27-23 _district management plan developed under Section 36.1071 and the_ 27-24 _approved regional water plan, the board shall facilitate_ 27-25 _coordination between the district and the involved region to_ 27-26 _resolve the conflict. If conflict remains, the board shall resolve_ 28-1 _the conflict. If the board determines that resolution of conflict_ 28-2 _requires a revision of an approved regional water plan, the board_ 28-3 _shall suspend the approval of that plan and provide information to_ 28-4 _the regional water planning group. The regional water planning_ 28-5 _group shall prepare any revisions to its plan specified by the_ 28-6 _board and shall hold, after notice, at least one public hearing at_ 28-7 _some central location within the regional water planning area. The_ 28-8 _regional water planning group shall consider all public and board_ 28-9 _comments, prepare, revise, and adopt its plan, and submit the_ 28-10 _revised plan to the board for approval and inclusion in the state_ 28-11 _water plan. If the board determines that resolution of conflict_ 28-12 _requires a revision of the district's certified groundwater_ 28-13 _conservation district management plan, the board shall suspend the_ 28-14 _certification of that plan and provide information to the district._ 28-15 _The groundwater district shall prepare any revisions to its plan_ 28-16 _specified by the board and shall hold, after notice, at least one_ 28-17 _public hearing at some central location within the district. The_ 28-18 _groundwater district shall consider all public and board comments,_ 28-19 _prepare, revise, and adopt its plan, and submit the revised plan to_ 28-20 _the board for certification. On the request of the involved region_ 28-21 _or groundwater conservation district, the board shall include_ 28-22 _discussion of the conflict and its resolution in the state water_ 28-23 _plan that the board provides to the governor, the lieutenant_ 28-24 _governor, and the speaker of the house of representatives under_ 28-25 _Section 16.051(e)._ 28-26 _(q) Each regional planning group shall examine the financing_ 29-1 _needed to implement the water management strategies and projects_ 29-2 _identified in the group's most recent approved regional plan and,_ 29-3 _not later than June 1, 2002, shall report to the board regarding:_ 29-4 _(1) how local governments, regional authorities, and_ 29-5 _other political subdivisions in the region propose to pay for water_ 29-6 _infrastructure projects identified in the plan; and_ 29-7 _(2) what role the regional planning group proposes for_ 29-8 _the state in financing projects identified in the plan, giving_ 29-9 _particular attention to proposed increases in the level of state_ 29-10 _participation in funding for regional projects to meet needs beyond_ 29-11 _the reasonable financing capability of local governments, regional_ 29-12 _authorities, and other political subdivisions involved in building_ 29-13 _water infrastructure._ 29-14 SECTION 2.20. Subsections (a), (c), and (d), Section 16.054, 29-15 Water Code, are amended to read as follows: 29-16 (a) _Notwithstanding the provisions of this subsection,_ 29-17 _groundwater districts are the state's preferred method of managing_ 29-18 _groundwater resources._ It is the policy of the state that water 29-19 resource management, water conservation, and drought planning 29-20 should occur on an ongoing basis. The board, commission, and Parks 29-21 and Wildlife Department shall make available where appropriate 29-22 technical and financial assistance for such planning. In addition, 29-23 the Department of Agriculture may provide input and assistance, as 29-24 appropriate, for _local water_ [such] planning. 29-25 (c) _When preparing a plan to be submitted under this_ 29-26 _section, a person shall consider the implementation of a_ 30-1 _desalination program if practicable._ 30-2 _(d)_ The regional water planning group shall consider any 30-3 plan submitted under this section when preparing the regional water 30-4 plan under Section 16.053 of this code. _A political subdivision,_ 30-5 _including a groundwater conservation district, in the regional_ 30-6 _water planning area may request a regional water planning group to_ 30-7 _consider specific changes to a regional water plan based on changed_ 30-8 _conditions or new information. The regional water planning group_ 30-9 _shall consider the request and shall amend its regional water plan_ 30-10 _if it determines that an amendment is warranted. If the entity_ 30-11 _requesting the change is dissatisfied with the decision of the_ 30-12 _regional planning group, the entity may request that the board_ 30-13 _review the decision and consider changing the state-approved_ 30-14 _regional plan._ 30-15 _(e) After January 5, 2002, when_ [(d) When] preparing 30-16 individual water plans that address drought or the development, 30-17 management, or conservation of water resources from the holders of 30-18 existing permits, certified filings, or certificates of 30-19 adjudication, the water suppliers, [groundwater districts,] special 30-20 districts, irrigation districts, and other water users should 30-21 ensure that the plan is not in conflict with the applicable 30-22 approved regional water plan for their region. 30-23 SECTION 2.21. Subdivision (11), Section 35.002, Water Code, 30-24 is amended to read as follows: 30-25 (11) "Management area" means an area designated and 30-26 delineated by the _Texas Water Development Board_ [commission] as an 31-1 area suitable for management of groundwater resources. 31-2 SECTION 2.22. Section 35.004, Water Code, is amended to read 31-3 as follows: 31-4 Sec. 35.004. DESIGNATION OF _GROUNDWATER_ MANAGEMENT AREAS. 31-5 (a) _The Texas Water Development Board, with assistance and_ 31-6 _cooperation from the commission, shall designate groundwater_ 31-7 _management areas covering all major and minor aquifers in the_ 31-8 _state. The initial designation of groundwater management areas_ 31-9 _shall be completed not later than September 1, 2003_ [On its own 31-10 motion from time to time, or on receiving a petition, the 31-11 commission may designate groundwater management areas]. Each 31-12 _groundwater_ management area shall be designated with the objective 31-13 of providing the most suitable area for the management of the 31-14 groundwater resources. To the extent feasible, the _groundwater_ 31-15 management area shall coincide with the boundaries of a groundwater 31-16 reservoir or a subdivision of a groundwater reservoir. The _Texas_ 31-17 _Water Development Board_ [commission] also may consider other 31-18 factors, including the boundaries of political subdivisions. 31-19 (b) _The commission may designate a groundwater management_ 31-20 _area after September 1, 2001, for a petition filed and accepted by_ 31-21 _the commission according to its rules in effect before September 1,_ 31-22 _2001. The commission shall act on the designation in accordance_ 31-23 _with this section_ [On the request of any person interested in the 31-24 petition, or on the request of the commission, the executive 31-25 director shall prepare available evidence relating to the 31-26 configuration of a groundwater management area. Before making the 32-1 designation, the commission shall consider the evidence prepared by 32-2 the executive director and other evidence submitted at the 32-3 hearing]. 32-4 (c) The _Texas Water Development Board_ [commission] may alter 32-5 the boundaries of designated management areas as required by future 32-6 conditions and as justified by factual data. An alteration of 32-7 boundaries does not invalidate the previous creation of any 32-8 district. 32-9 (d) The _Texas Water Development Board_ [commission] shall 32-10 designate groundwater management areas using the procedures 32-11 applicable to rulemaking under [the Administrative Procedure Act, 32-12 Subchapter B,] Chapter 2001, Government Code. 32-13 SECTION 2.23. Subsections (a) and (f), Section 35.007, Water 32-14 Code, are amended to read as follows: 32-15 (a) The executive director and the executive administrator 32-16 shall meet _periodically_ [at least once a year] to identify, based 32-17 on information gathered by the commission and the Texas Water 32-18 Development Board, those areas of the state that are experiencing 32-19 or that are expected to experience, within the immediately 32-20 following 25-year period, critical groundwater problems, including 32-21 shortages of surface water or groundwater, land subsidence 32-22 resulting from groundwater withdrawal, and contamination of 32-23 groundwater supplies. _Not later than September 1, 2005, the_ 32-24 _commission, with assistance and cooperation from the Texas Water_ 32-25 _Development Board, shall complete the initial designation of_ 32-26 _priority groundwater management areas across all major and minor_ 33-1 _aquifers of the state for all areas that meet the criteria for that_ 33-2 _designation. The studies may be prioritized considering_ 33-3 _information from the regional planning process, information from_ 33-4 _the Texas Water Development Board groundwater management areas and_ 33-5 _from groundwater conservation districts, and any other information_ 33-6 _available. After the initial designation of priority groundwater_ 33-7 _management areas, the commission and the Texas Water Development_ 33-8 _Board shall annually review the need for additional designations as_ 33-9 _provided by this subsection._ 33-10 (f) The report shall include: 33-11 (1) the recommended delineation of the boundaries of 33-12 any proposed priority groundwater management area in the form of an 33-13 order to be considered for adoption by the commission; 33-14 (2) the reasons and supporting information for or 33-15 against designating the area as a priority groundwater management 33-16 area; 33-17 (3) a recommendation regarding whether _one or more_ 33-18 _districts_ [a district] should be created in the priority 33-19 groundwater management area_,_ [or] whether the priority groundwater 33-20 management area should be added to an existing district_, or whether_ 33-21 _a combination of those actions should be taken_; 33-22 (4) a recommendation as to actions that should be 33-23 considered to conserve natural resources; 33-24 (5) an evaluation of information or studies submitted 33-25 to the executive director under Subsection (c); and 33-26 (6) any other information that the executive director 34-1 considers helpful to the commission. 34-2 SECTION 2.24. Section 35.008, Water Code, is amended to read 34-3 as follows: 34-4 Sec. 35.008. PROCEDURES FOR DESIGNATION OF PRIORITY 34-5 GROUNDWATER MANAGEMENT AREA; CONSIDERATION OF CREATION OF _NEW_ 34-6 DISTRICT OR ADDITION OF LAND IN PRIORITY GROUNDWATER MANAGEMENT 34-7 AREA TO EXISTING DISTRICT_; COMMISSION ORDER_. (a) The commission 34-8 shall designate priority groundwater management areas using the 34-9 procedures provided by this chapter in lieu of those provided by 34-10 Subchapter B, Chapter 2001, Government Code. 34-11 (b) The commission shall call an evidentiary hearing to 34-12 consider: 34-13 (1) the designation of a priority groundwater 34-14 management area; _and_ 34-15 (2) whether _one or more districts_ [a district] should 34-16 be created over all or part of a priority groundwater management 34-17 area_,_[; or] 34-18 [(3) whether] all or part of the land in the priority 34-19 groundwater management area should be added to an existing 34-20 district_, or a combination of those actions should be taken._ 34-21 _Consideration of this issue shall include a determination of_ 34-22 _whether a district is feasible and practicable_. 34-23 (c) Evidentiary hearings shall be held at a location in one 34-24 of the counties in which the priority groundwater management area 34-25 is located, or proposed to be located, or in the nearest convenient 34-26 location if adequate facilities are not available in those 35-1 counties. 35-2 (d) At the hearing, the commission shall hear testimony and 35-3 receive evidence from affected persons. _Affected persons shall_ 35-4 _include landowners, well owners, and other users of groundwater in_ 35-5 _the proposed priority groundwater management area._ The commission 35-6 shall consider the executive director's report and supporting 35-7 information and the testimony and evidence received at the hearing. 35-8 If the commission considers further information necessary, the 35-9 commission may request such information from any source. 35-10 (e) _Any evidentiary hearing shall be concluded not later_ 35-11 _than the 75th day after the date notice of the hearing is_ 35-12 _published._ 35-13 _(f) At the conclusion of the hearing and the commission's_ 35-14 _considerations, the commission shall issue an order stating its_ 35-15 _findings and conclusions, including whether a priority groundwater_ 35-16 _management area should be designated in the area and_ 35-17 _recommendations regarding district creation as set forth in_ 35-18 _Subsection (g)._ 35-19 _(g) The commission's order designating a priority_ 35-20 _groundwater management area must recommend that the area be covered_ 35-21 _by a district in any of the following ways:_ 35-22 _(1) creation of one or more new districts;_ 35-23 _(2) addition of the land in the priority groundwater_ 35-24 _management area to one or more existing districts; or_ 35-25 _(3) a combination of actions under Subdivisions (1)_ 35-26 _and (2)._ 36-1 _(h) In recommending the boundaries of a district or_ 36-2 _districts under Subsection (g), the commission shall give_ 36-3 _preference to boundaries that are coterminous with those of the_ 36-4 _priority groundwater management area, but may recommend district_ 36-5 _boundaries along existing political subdivision boundaries at the_ 36-6 _discretion of the commission to facilitate district creation and_ 36-7 _confirmation._ 36-8 _(i)_ The designation of a priority groundwater management 36-9 area may not be appealed nor may it be challenged under _Section_ 36-10 _5.351 of this code or_ [the Administrative Procedure Act,] Section 36-11 2001.038, Government Code. 36-12 SECTION 2.25. Subsections (a) and (b), Section 35.009, Water 36-13 Code, are amended to read as follows: 36-14 (a) The commission shall have notice of the hearing 36-15 published in at least one newspaper with general circulation in the 36-16 county or counties in which the area proposed for designation as a 36-17 priority groundwater management area [or the area within a priority 36-18 groundwater management area being considered for district creation 36-19 or for addition to an existing district] is located. Notice must 36-20 be published not later than the 30th day before the date set for 36-21 the _hearing_ [commission to consider the designation of the priority 36-22 groundwater management area, the creation of a district in a 36-23 priority groundwater management area, or the addition of land in a 36-24 priority groundwater management area to an existing district]. 36-25 (b) The notice must include: 36-26 (1) if applicable, a statement of the general purpose 37-1 and effect of designating the proposed priority groundwater 37-2 management area; 37-3 (2) if applicable, a statement of the general purpose 37-4 and effect of creating a _new_ district in the priority groundwater 37-5 management area; 37-6 (3) if applicable, a statement of the general purpose 37-7 and effect of adding all or part of the land in the priority 37-8 groundwater management area to an existing district; 37-9 (4) a map generally outlining the boundaries of the 37-10 area being considered for priority groundwater management area 37-11 designation [or the priority groundwater management area being 37-12 considered for district creation or for addition to an existing 37-13 district,] or notice of the location at which a copy of the map may 37-14 be examined or obtained; 37-15 (5) a statement that the executive director's report 37-16 concerning the priority groundwater management area or proposed 37-17 area is available at the commission's main office in Austin, Texas, 37-18 and at regional offices of the commission for regions which include 37-19 territory within the priority groundwater management area or 37-20 proposed priority groundwater management area and that the report 37-21 is available for inspection during regular business hours; 37-22 (6) a description or the name of the locations in the 37-23 affected area at which the commission has provided copies of the 37-24 executive director's report to be made available for public 37-25 inspection; 37-26 (7) the name and address of each public library, each 38-1 county clerk's office, and each district to which the commission 38-2 has provided copies of the executive director's report; and 38-3 (8) the date, time, and place of the hearing. 38-4 SECTION 2.26. Section 35.012, Water Code, is amended to read 38-5 as follows: 38-6 Sec. 35.012. _CREATION OF DISTRICT IN PRIORITY GROUNDWATER_ 38-7 _MANAGEMENT AREA_ [COMMISSIONER ORDER]. (a) [At the conclusion of 38-8 its hearing and considerations, the commission shall issue an] [order 38-9 stating its findings and conclusions.] 38-10 [(b) If the commission finds that the land and other 38-11 property in the priority groundwater management area would benefit 38-12 from the creation of one or more districts, that there is a public 38-13 need for one or more districts, and that the creation of one or 38-14 more districts would further the public welfare, the commission 38-15 shall issue an order stating that the creation of one or more 38-16 districts is needed.] 38-17 [(c)] Following the issuance of a commission order under 38-18 _Section 35.008 designating a priority groundwater management area_ 38-19 _and recommending the creation of one or more districts, or the_ 38-20 _addition of land to an existing district_ [Subsection (b)], the 38-21 landowners in the priority groundwater management area may: 38-22 (1) create one or more districts under Subchapter B, 38-23 Chapter 36; 38-24 (2) have the area annexed to a district that adjoins 38-25 the area; or 38-26 (3) create one or more districts through the 39-1 legislative process. 39-2 _ (b) Within two years, but no sooner than 120 days, from the_ 39-3 _date on which the commission issues an order under Section 35.008_ 39-4 _designating a priority groundwater management area, for those areas_ 39-5 _that are not within a district, the commission shall:_ 39-6 _(1) create one or more new districts under Section_ 39-7 _36.0151;_ 39-8 _(2) recommend that the areas, or a portion of the_ 39-9 _areas, be added to an existing district under Section 35.013; or_ 39-10 _(3) take any combination of the actions under_ 39-11 _Subdivisions (1) and (2)._ 39-12 _(c) Following the issuance of a commission order under_ 39-13 _Section 35.008_ [(d) The commission shall identify the areas 39-14 subject to the order of the commission issued under Subsection (b) 39-15 that have not been incorporated into a district and shall delineate 39-16 proposed boundaries of a district to include those areas. If the 39-17 commission proposes the creation of one or more districts], the 39-18 Texas Agricultural Extension Service shall begin an educational 39-19 program within such areas with the assistance and cooperation of 39-20 the Texas Water Development Board, the commission, the Department 39-21 of Agriculture, other state agencies, and existing districts to 39-22 inform the residents of the status of the area's water resources 39-23 and management options including possible formation of a district[, 39-24 before beginning the procedures for creation of a district provided 39-25 in Subchapter B, Chapter 36]. _The county commissioners court of_ 39-26 _each county in the priority groundwater management area shall form_ 40-1 _a steering committee to provide assistance to the Texas_ 40-2 _Agricultural Extension Service in accomplishing the goals of the_ 40-3 _education program within the area._ 40-4 [(e) If the commission fails to find that the district would 40-5 be a benefit to the land and other property within the priority 40-6 groundwater management area, that there is a public need for the 40-7 district, or that creation of the district will further the public 40-8 welfare, the commission shall issue an order stating that a 40-9 district should not be created within the boundaries of the 40-10 priority groundwater management area.] 40-11 [(f) An order of the commission issued under this section 40-12 may not be appealed.] 40-13 SECTION 2.27. Section 35.013, Water Code, is amended to read 40-14 as follows: 40-15 Sec. 35.013. ADDING PRIORITY GROUNDWATER MANAGEMENT AREA TO 40-16 EXISTING DISTRICT. (a) [If land in a priority groundwater 40-17 management area is located adjacent to one or more existing 40-18 districts, the commission, instead of issuing an order under 40-19 Section 35.012, may issue an order recommending that the priority 40-20 groundwater management area be added to the existing district 40-21 designated by the commission. In its order, the commission must 40-22 find that the land and other property in the priority groundwater 40-23 management area and the land in the existing district will benefit 40-24 from the addition of the area, that there is a public need to add 40-25 the priority groundwater management area to the existing district, 40-26 and that the addition of the land to the existing district would 41-1 further the public welfare.] 41-2 [(b)] If the _commission in its order under Section 35.008_ 41-3 [executive director] recommends that the priority groundwater 41-4 management area _or a portion of the priority groundwater management_ 41-5 _area_ be added to an existing district [or if the commission 41-6 considers it possible to add the priority groundwater management 41-7 area to an adjacent existing district], the commission shall give 41-8 notice to the board of the existing district recommended _in its_ 41-9 _order_ [by the executive director or considered by the commission to 41-10 possibly serve the area] and to any other existing districts 41-11 adjacent to the priority groundwater management area. 41-12 _(b)_ [(c)] The commission shall submit a copy of the order to 41-13 the board of the district to which it is recommending the priority 41-14 groundwater management area be added. The board shall vote on the 41-15 addition of the priority groundwater management area to the 41-16 district and shall advise the commission of the outcome. 41-17 _(c)_ [(d)] If the board votes to accept the addition of the 41-18 priority groundwater management area to the district, the board: 41-19 (1) may request the Texas Agricultural Extension 41-20 Service, the commission, and the Texas Water Development Board, 41-21 with the cooperation and assistance of the Department of 41-22 Agriculture and other state agencies, to administer an educational 41-23 program to inform the residents of the status of the area's water 41-24 resources and management options including possible annexation into 41-25 a district; 41-26 (2) shall call an election within the priority 42-1 groundwater management area_, or portion of the priority groundwater_ 42-2 _management area,_ as delineated by the commission to determine if 42-3 the priority groundwater management area will be added to the 42-4 district; and 42-5 (3) shall designate election precincts and polling 42-6 places for the elections in the order calling an election under 42-7 this subsection. 42-8 _(d)_ [(e)] The board shall give notice of the election and 42-9 the proposition to be voted on. The board shall publish notice of 42-10 the election at least one time in one or more newspapers with 42-11 general circulation within the boundaries of the priority 42-12 groundwater management area. The notice must be published before 42-13 the 30th day preceding the date set for the election. 42-14 _(e)_ [(f)] The ballots for the election shall be printed to 42-15 provide for voting for or against the proposition: "The inclusion 42-16 of _________________________ (briefly describe priority groundwater 42-17 management area) in the ______________ District." If the district 42-18 has outstanding debts or taxes, the proposition shall include the 42-19 following language: "and assumption by the described area of a 42-20 proportional share of the debts or taxes of the district." 42-21 _(f)_ [(g)] Immediately after the election, the presiding 42-22 judge of each polling place shall deliver the returns of the 42-23 election to the board, and the board shall canvass the returns for 42-24 the election within the priority groundwater management area and 42-25 declare the results. If a majority of the voters in the priority 42-26 groundwater management area voting on the proposition vote in favor 43-1 of the proposition, the board shall declare that the priority 43-2 groundwater management area is added to the district. If a 43-3 majority of the voters in the priority groundwater management area 43-4 voting on the proposition vote against adding the priority 43-5 groundwater management area to the district, the board shall 43-6 declare that the priority groundwater management area is not added 43-7 to the district. The board shall file a copy of the election 43-8 results with the commission. 43-9 _(g)_ [(h)] If the voters approve adding the priority 43-10 groundwater management area to the district, the board of the 43-11 district to which the priority groundwater management area is added 43-12 shall provide reasonable representation on that board compatible 43-13 with the district's existing scheme of representation. _Not later_ 43-14 _than the 30th day after the date on which the board declares that_ 43-15 _the priority groundwater management area is added to the district,_ 43-16 _the board of the existing district shall appoint a person or_ 43-17 _persons to represent the area until the next regularly scheduled_ 43-18 _election or appointment of directors._ 43-19 _(h)_ [(i)] If the proposition is defeated, _or if the board of_ 43-20 _the existing district votes not to accept the addition of the area_ 43-21 _to the district, then the commission shall, except as provided_ 43-22 _under Subsection (i), create under Section 36.0151 one or more_ 43-23 _districts covering the priority groundwater management area not_ 43-24 _later than the first anniversary of the date on which the_ 43-25 _proposition is defeated or the board votes not to accept the area._ 43-26 _(i) For an area that is not feasible for the creation of one_ 44-1 _or more districts as determined in the commission's findings under_ 44-2 _Section 35.008, the commission shall include in its report under_ 44-3 _Section 35.018 recommendations for the future management of the_ 44-4 _priority groundwater management area._ 44-5 _(j) Another_ [another] election to add the priority 44-6 groundwater management area to an existing district may not be 44-7 called before the first anniversary of the date on which the 44-8 election on the proposition was held. 44-9 SECTION 2.28. Subsection (c), Section 35.018, Water Code, is 44-10 amended to read as follows: 44-11 (c) _If the commission determines that a district created_ 44-12 _under Chapter 36 is not appropriate for, or capable of, the_ 44-13 _protection of the groundwater resources for a particular management_ 44-14 _area or priority groundwater management area, the commission may_ 44-15 _recommend in its report to the legislature the creation of a_ 44-16 _special district or amendment of an existing district._ [(1) If 44-17 voters fail to create a groundwater district in a priority 44-18 groundwater management area or if voters fail to add the priority 44-19 groundwater management area to an existing groundwater district, 44-20 the report shall include recommendations for the future management 44-21 of the priority groundwater management area. The recommendations 44-22 may include but are not limited to the following:] 44-23 [(A) creation of a groundwater district by the 44-24 legislature;] 44-25 [(B) annexation of a priority groundwater 44-26 management area into an existing district by the legislature; or] 45-1 [(C) management of the priority groundwater 45-2 management area by the nearest regional office of the commission. 45-3 The commission may be authorized to:] 45-4 [(i) adopt spacing and annual per acre 45-5 pumping restrictions;] 45-6 [(ii) issue well permits in accordance 45-7 with Sections 36.113 and 36.1131;] 45-8 [(iii) prevent waste and protect the 45-9 quality of groundwater in accordance with Sections 45-10 36.001(8)(A)-(G);] 45-11 [(iv) levy administrative penalties for 45-12 violations; and] 45-13 [(v) collect fees in accordance with 45-14 Sections 36.206(a) and (b).] 45-15 [(2) If the commission is required by the legislature 45-16 to manage the priority groundwater management area, a new election 45-17 may not be called for three years from the date of the last 45-18 election.] 45-19 SECTION 2.29. Section 36.001, Water Code, is amended by 45-20 amending Subdivision (13) and adding Subdivisions (18) through (22) 45-21 to read as follows: 45-22 (13) "Management area" means an area designated and 45-23 delineated by the _Texas Water Development Board_ [commission] under 45-24 Chapter 35 as an area suitable for management of groundwater 45-25 resources. 45-26 _(18) "River basin" means a river or coastal basin_ 46-1 _designated as a river basin by the board under Section 16.051. The_ 46-2 _term does not include waters of the bays or arms originating in the_ 46-3 _Gulf of Mexico._ 46-4 _(19) "Agriculture" means any of the following_ 46-5 _activities:_ 46-6 _(A) cultivating the soil to produce crops for_ 46-7 _human food, animal feed, or planting seed or for the production of_ 46-8 _fibers;_ 46-9 _(B) the practice of floriculture, viticulture,_ 46-10 _silviculture, and horticulture, including the cultivation of plants_ 46-11 _in containers or nonsoil media, by a nursery grower;_ 46-12 _(C) raising, feeding, or keeping animals for_ 46-13 _breeding purposes or for the production of food or fiber, leather,_ 46-14 _pelts, or other tangible products having a commercial value;_ 46-15 _(D) planting cover crops, including cover crops_ 46-16 _cultivated for transplantation, or leaving land idle for the_ 46-17 _purpose of participating in any governmental program or normal crop_ 46-18 _or livestock rotation procedure;_ 46-19 _(E) wildlife management; and_ 46-20 _(F) raising or keeping equine animals._ 46-21 _(20) "Agricultural use" means any use or activity_ 46-22 _involving agriculture, including irrigation._ 46-23 _(21) "Conjunctive use" means the combined use of_ 46-24 _groundwater and surface water sources that optimizes the beneficial_ 46-25 _characteristics of each source._ 46-26 _(22) "Nursery grower" means a person who grows more_ 47-1 _than 50 percent of the products that the person either sells or_ 47-2 _leases, regardless of the variety sold, leased, or grown. For the_ 47-3 _purpose of this definition, "grow" means the actual cultivation or_ 47-4 _propagation of the product beyond the mere holding or maintaining_ 47-5 _of the item prior to sale or lease and typically includes_ 47-6 _activities associated with the production or multiplying of stock_ 47-7 _such as the development of new plants from cuttings, grafts, plugs,_ 47-8 _or seedlings._ 47-9 SECTION 2.30. Section 36.0015, Water Code, is amended to 47-10 read as follows: 47-11 Sec. 36.0015. PURPOSE. In order to provide for the 47-12 conservation, preservation, protection, recharging, and prevention 47-13 of waste of groundwater, and of groundwater reservoirs or their 47-14 subdivisions, and to control subsidence caused by withdrawal of 47-15 water from those groundwater reservoirs or their subdivisions, 47-16 consistent with the objectives of Section 59, Article XVI, Texas 47-17 Constitution, groundwater conservation districts may be created as 47-18 provided by this chapter. Groundwater conservation districts 47-19 created as provided by this chapter are the state's preferred 47-20 method of groundwater management _through rules developed, adopted,_ 47-21 _and promulgated by a district in accordance with the provisions of_ 47-22 _this chapter_. 47-23 SECTION 2.31. Section 36.002, Water Code, is amended to read 47-24 as follows: 47-25 Sec. 36.002. OWNERSHIP OF GROUNDWATER. The ownership and 47-26 rights of the owners of the land and their lessees and assigns in 48-1 groundwater are hereby recognized, and nothing in this code shall 48-2 be construed as depriving or divesting the owners or their lessees 48-3 and assigns of the ownership or rights, _except as those rights may_ 48-4 _be limited or altered by_ [subject to] rules promulgated by a 48-5 district. 48-6 SECTION 2.32. Subsection (b), Section 36.011, Water Code, is 48-7 amended to read as follows: 48-8 (b) The commission has exclusive jurisdiction over the 48-9 [delineation of management areas and the] creation of districts. 48-10 SECTION 2.33. Section 36.012, Water Code, is amended by 48-11 adding Subsection (f) to read as follows: 48-12 _(f) This section does not apply to districts created under_ 48-13 _Section 36.0151._ 48-14 SECTION 2.34. Section 36.013, Water Code, is amended to read 48-15 as follows: 48-16 Sec. 36.013. PETITION TO CREATE DISTRICT. (a) A petition 48-17 requesting creation of a district must be filed with the _commission_ 48-18 [executive director] for review and _certification under Section_ 48-19 _36.015_ [submission to the commission]. 48-20 (b) The petition filed pursuant to this section must be 48-21 signed by: 48-22 (1) a majority of the landowners within the proposed 48-23 district, as indicated by the county tax rolls; or 48-24 (2) if there are more than 50 landowners in the 48-25 proposed district, at least 50 of those landowners. 48-26 (c) The petition must include: 49-1 (1) the name of the proposed district; 49-2 (2) the area and boundaries of the proposed district, 49-3 including a map generally outlining the boundaries of the proposed 49-4 district; 49-5 (3) the purpose or purposes of the district; 49-6 (4) a statement of the general nature of any projects 49-7 proposed to be undertaken by the district, the necessity and 49-8 feasibility of the work, and the estimated costs of those projects 49-9 according to the persons filing the projects if the projects are to 49-10 be funded by the sale of bonds or notes; [and] 49-11 (5) _the names of at least five individuals qualified_ 49-12 _to serve as temporary directors; and_ 49-13 _(6) financial information, including the projected_ 49-14 _maintenance tax or production fee rate and a proposed budget of_ 49-15 _revenues and expenses for the district_ [any additional terms or 49-16 conditions that restrict the powers of the district from those 49-17 provided in this chapter]. 49-18 [(d) If a part of the proposed district is not included 49-19 within either a management area or a priority groundwater 49-20 management area, the petition to create a district may also contain 49-21 a request to create a management area. A request to create a 49-22 management area must comply with the requirements for a petition in 49-23 Section 35.005, and may be acted on by the commission separately 49-24 from the petition to create the district.] 49-25 SECTION 2.35. Section 36.014, Water Code, is amended to read 49-26 as follows: 50-1 Sec. 36.014. NOTICE AND _PUBLIC MEETING_ [HEARING] ON DISTRICT 50-2 CREATION. (a) If a petition is filed under Section 36.013, the 50-3 commission shall give notice of _the_ [an] application [as required 50-4 by Section 49.011(a)] and _shall_ [may] conduct a _public meeting in a_ 50-5 _central location within the area of the proposed district_ [hearing] 50-6 on the application _not later than the 60th day after the date the_ 50-7 _commission issues notice_ [if the commission determines that a 50-8 hearing is necessary under Section 49.011]. _The notice must_ 50-9 _contain the date, time, and location of the public meeting and must_ 50-10 _be published in one or more newspapers of general circulation in_ 50-11 _the area of the proposed district._ 50-12 (b) If the petition contains a request to create a 50-13 management area in all or part of the proposed district, the notice 50-14 must also be given in accordance with the requirements in Section 50-15 35.006 for the designation of management areas. 50-16 SECTION 2.36. Section 36.015, Water Code, is amended to read 50-17 as follows: 50-18 Sec. 36.015. _COMMISSION CERTIFICATION AND ORDER. (a) Not_ 50-19 _later than the 90th day after the date the commission holds a_ 50-20 _public meeting on a petition under Section 36.014, the commission_ 50-21 _shall certify the petition if the petition is administratively_ 50-22 _complete. A petition is administratively complete if it complies_ 50-23 _with the requirements of Sections 36.013(b) and (c)._ 50-24 _(b) The commission may not certify a petition if the_ 50-25 _commission finds that the proposed district cannot be adequately_ 50-26 _funded to carry out its purposes based on the financial information_ 51-1 _provided in the petition under Section 36.013(c)(6) or that the_ 51-2 _boundaries of the proposed district do not provide for the_ 51-3 _effective management of the groundwater resources. The commission_ 51-4 _shall give preference to boundary lines that are coterminous with_ 51-5 _those of a groundwater management area but may also consider_ 51-6 _boundaries along existing political subdivision boundaries if such_ 51-7 _boundaries would facilitate district creation and confirmation._ 51-8 _(c) If a petition proposes the creation of a district in an_ 51-9 _area, in whole or in part, that has not been designated as a_ 51-10 _management area, the commission shall provide notice to the Texas_ 51-11 _Water Development Board. On the receipt of notice from the_ 51-12 _commission, the Texas Water Development Board shall initiate the_ 51-13 _process of designating a management area for the area of the_ 51-14 _proposed district not included in a management area. The_ 51-15 _commission may not certify the petition until the Texas Water_ 51-16 _Development Board has adopted a rule whereby the boundaries of the_ 51-17 _proposed district are coterminous with or inside the boundaries of_ 51-18 _a management area._ 51-19 _(d) If the commission does not certify the petition, the_ 51-20 _commission shall provide to the petitioners, in writing, the_ 51-21 _reasons for not certifying the petition. The petitioners may_ 51-22 _resubmit the petition, without paying an additional fee, if the_ 51-23 _petition is resubmitted within 90 days after the date the_ 51-24 _commission sends the notice required by this subsection._ 51-25 _(e) If the commission certifies the petition as_ 51-26 _administratively complete, the commission shall issue an order,_ 52-1 _notify the petitioners, and appoint temporary directors as provided_ 52-2 _by Section 36.016._ 52-3 _(f) Refusal by the commission to certify a petition to_ 52-4 _create a district does not invalidate or affect the designation of_ 52-5 _any management area._ [FINDINGS. (a) If the commission finds that 52-6 a district is feasible and practicable, that it would be a benefit 52-7 to the land in the district, and that it would be a public benefit 52-8 or utility, the commission shall issue an order containing these 52-9 findings granting the petition.] 52-10 [(b) If the commission finds that a district is not feasible 52-11 and practicable, that it would not be a benefit to the land in the 52-12 district, that it would not be a public benefit or utility, or that 52-13 it is not needed, the commission by order shall deny the petition.] 52-14 [(c) The commission may adjust the boundaries of the 52-15 proposed district to exclude any land that would not be benefited 52-16 by inclusion in the district and is not necessary to the district 52-17 for proper regulation of the groundwater reservoir.] 52-18 [(d) If the commission grants the petition to create the 52-19 district, it shall direct in its order creating the district that 52-20 an election be called by the temporary directors to confirm the 52-21 creation of the district and to elect permanent directors.] 52-22 [(e) The refusal to grant a petition to create a district 52-23 does not invalidate or affect the designation of any management 52-24 area requested in the same petition.] 52-25 [(f) The commission shall act on the petition within a 52-26 reasonable amount of time.] 53-1 SECTION 2.37. Subsection (a), Section 36.0151, Water Code, 53-2 is amended to read as follows: 53-3 (a) If the commission _is required to create_ [proposes that] 53-4 a district [be created] under Section _35.012(b)_ [35.012(d)], it 53-5 shall_, without an evidentiary hearing, issue an order creating the_ 53-6 _district and shall provide_ in its order [creating the district 53-7 provide] that temporary directors be appointed under Section 36.016 53-8 and that an election be called by the temporary directors to 53-9 _authorize the district to assess taxes_ [confirm the creation of the 53-10 district] and to elect permanent directors. 53-11 SECTION 2.38. Subsection (a), Section 36.016, Water Code, is 53-12 amended to read as follows: 53-13 (a) If the commission _certifies_ [grants] a petition to 53-14 create a district under Section 36.015_, the commission shall_ 53-15 _appoint the temporary directors named in the petition. If_ [or 53-16 after] the commission dissolves a district's board under Section 53-17 36.303, it shall appoint five temporary directors. 53-18 SECTION 2.39. Section 36.017, Water Code, is amended by 53-19 amending the section heading and Subsections (a), (d), and (g) and 53-20 adding Subsection (i) to read as follows: 53-21 Sec. 36.017. CONFIRMATION AND DIRECTORS' ELECTION _FOR_ 53-22 _DISTRICT IN A MANAGEMENT AREA_. (a) _For a district created under_ 53-23 _Section 36.015, not_ [Not] later than the _120th_ [60th] day after the 53-24 date all temporary directors have been appointed and have 53-25 qualified, the temporary directors shall meet and order an election 53-26 to be held within the boundaries of the proposed district to 54-1 approve the creation of the district and to elect permanent 54-2 directors. 54-3 (d) The ballot for the election must be printed to provide 54-4 for voting for or against the proposition: "The creation of the 54-5 _________________ Groundwater Conservation District." If the 54-6 district levies a maintenance tax for payment of its expenses, _then_ 54-7 _an additional_ [the] proposition shall _be included with_ [include] 54-8 the following language: "_The_ [and the] levy of a maintenance tax 54-9 at a rate not to exceed ______ cents for each $100 of assessed 54-10 valuation." _The same ballot or another ballot must provide for the_ 54-11 _election of permanent directors, in accordance with Section 36.059._ 54-12 (g) If a majority of the votes cast at the election are 54-13 against the creation of the district, the temporary board shall 54-14 declare the district defeated and shall enter the result in its 54-15 minutes. _The temporary board shall continue operations in_ 54-16 _accordance with Subsection (h)._ 54-17 _(i) If a majority of the votes cast at the election are_ 54-18 _against the levy of a maintenance tax, the district shall set_ 54-19 _production fees to pay for the district's regulation of groundwater_ 54-20 _in the district, including fees based on the amount of water to be_ 54-21 _withdrawn from a well._ 54-22 SECTION 2.40. Subchapter B, Chapter 36, Water Code, is 54-23 amended by adding Section 36.0171 to read as follows: 54-24 _Sec. 36.0171. TAX AUTHORITY AND DIRECTORS' ELECTION FOR_ 54-25 _DISTRICT IN A PRIORITY GROUNDWATER MANAGEMENT AREA. (a) For a_ 54-26 _district created under Section 36.0151, not later than the 120th_ 55-1 _day after the date all temporary directors have been appointed and_ 55-2 _have qualified, the temporary directors shall meet and order an_ 55-3 _election to be held within the boundaries of the proposed district_ 55-4 _to authorize the district to assess taxes and to elect permanent_ 55-5 _directors._ 55-6 _(b) In the order calling the election, the temporary_ 55-7 _directors shall designate election precincts and polling places for_ 55-8 _the election. In designating the polling places, the temporary_ 55-9 _directors shall consider the needs of all voters for conveniently_ 55-10 _located polling places._ 55-11 _(c) The temporary directors shall publish notice of the_ 55-12 _election at least once in at least one newspaper with general_ 55-13 _circulation within the boundaries of the proposed district. The_ 55-14 _notice must be published before the 30th day preceding the date of_ 55-15 _the election._ 55-16 _(d) The ballot for the election must be printed to provide_ 55-17 _for voting for or against the proposition: "The levy of a_ 55-18 _maintenance tax by the ___________________ Groundwater Conservation_ 55-19 _District at a rate not to exceed ______ cents for each $100 of_ 55-20 _assessed valuation." The same ballot or another ballot must_ 55-21 _provide for the election of permanent directors, in accordance with_ 55-22 _Section 36.059._ 55-23 _(e) Immediately after the election, the presiding judge of_ 55-24 _each polling place shall deliver the returns of the election to the_ 55-25 _temporary board, and the board shall canvass the returns, declare_ 55-26 _the result, and turn over the operations of the district to the_ 56-1 _elected permanent directors. The board shall file a copy of the_ 56-2 _election result with the commission._ 56-3 _(f) If a majority of the votes cast at the election favor_ 56-4 _the levy of a maintenance tax, the temporary board shall declare_ 56-5 _the levy approved and shall enter the result in its minutes._ 56-6 _(g) If a majority of the votes cast at the election are_ 56-7 _against the levy of a maintenance tax, the temporary board shall_ 56-8 _declare the levy defeated and shall enter the result in its_ 56-9 _minutes._ 56-10 _(h) If the majority of the votes cast at the election are_ 56-11 _against the levy of a maintenance tax, the district shall set_ 56-12 _permit fees to pay for the district's regulation of groundwater in_ 56-13 _the district, including fees based on the amount of water to be_ 56-14 _withdrawn from a well._ 56-15 SECTION 2.41. Section 36.019, Water Code, is amended to read 56-16 as follows: 56-17 Sec. 36.019. CONFIRMATION ELECTION IN DISTRICT INCLUDING 56-18 LAND IN MORE THAN ONE COUNTY. _(a)_ A district, the major portion 56-19 of which is located in one county, may not be organized to include 56-20 land in another county unless the election held in the other county 56-21 to confirm and ratify the creation of the district is approved by a 56-22 majority of the voters of the other county voting in an election 56-23 called for that purpose. 56-24 _(b) This section does not apply to districts created under_ 56-25 _Section 36.0151._ 56-26 SECTION 2.42. Subsection (a), Section 36.060, Water Code, is 57-1 amended to read as follows: 57-2 (a) A director is entitled to receive fees of office of not 57-3 more than _$150_ [$100] a day for each day the director actually 57-4 spends performing the duties of a director. The fees of office may 57-5 not exceed _$9,000_ [$6,000] a year. 57-6 SECTION 2.43. Subsection (g), Section 36.066, Water Code, is 57-7 amended to read as follows: 57-8 (g) If the district prevails in any suit other than a suit 57-9 in which it voluntarily intervenes, _the district may seek and the_ 57-10 _court shall grant_ [it may], in the same action, _recovery_ [recover 57-11 reasonable fees] for _attorney's fees_ [attorneys], _costs for_ expert 57-12 witnesses, and other costs incurred by the district before the 57-13 court. The amount of the attorney's fees shall be fixed by the 57-14 court. 57-15 SECTION 2.44. Subsection (a), Section 36.101, Water Code, is 57-16 amended to read as follows: 57-17 (a) A district may make and enforce rules_, including rules_ 57-18 _limiting groundwater production based on tract size or the spacing_ 57-19 _of wells,_ to provide for conserving, preserving, protecting, and 57-20 recharging of the groundwater or of a groundwater reservoir or its 57-21 subdivisions in order to control subsidence_, prevent degradation of_ 57-22 _water quality,_ or prevent waste of groundwater and to carry out the 57-23 powers and duties provided by this chapter. _During the rulemaking_ 57-24 _process the board shall consider all groundwater uses and needs and_ 57-25 _shall develop rules which are fair and impartial._ 57-26 SECTION 2.45. Subsection (b), Section 36.102, Water Code, is 58-1 amended to read as follows: 58-2 (b) The board _by rule_ may set reasonable civil penalties for 58-3 breach of any rule of the district [that shall] not _to_ exceed 58-4 _$10,000 per day per violation, and each day of a continuing_ 58-5 _violation constitutes a separate violation_ [the jurisdiction of a 58-6 justice court as provided by Section 27.031, Government Code]. 58-7 SECTION 2.46. Section 36.1071, Water Code, is amended by 58-8 amending Subsections (a) and (b) and adding Subsection (h) to read 58-9 as follows: 58-10 (a) Following notice and hearing, the district shall, in 58-11 coordination with surface water management entities on a regional 58-12 basis, develop a comprehensive management plan which addresses the 58-13 following management goals, as applicable: 58-14 (1) providing the most efficient use of groundwater; 58-15 (2) controlling and preventing waste of groundwater; 58-16 (3) controlling and preventing subsidence; 58-17 (4) addressing conjunctive surface water management 58-18 issues; [and] 58-19 (5) addressing natural resource issues_;_ 58-20 _(6) addressing drought conditions; and_ 58-21 _(7) addressing conservation_. 58-22 (b) _After January 5, 2002, a_ [A] district management plan, 58-23 or any amendments to a district management plan, _shall be developed_ 58-24 _by the district using the district's best available data and_ 58-25 _forwarded to the regional water planning group for consideration in_ 58-26 _their planning process_ [adopted after the Texas Water Development 59-1 Board approval of a regional water plan for the region in which the 59-2 district is located shall be consistent with the regional water 59-3 plan]. 59-4 _(h) In developing its management plan, the district shall_ 59-5 _use the groundwater availability modeling information provided by_ 59-6 _the executive administrator in conjunction with any available_ 59-7 _site-specific information provided by the district and acceptable_ 59-8 _to the executive administrator._ 59-9 SECTION 2.47. Section 36.1072, Water Code, is amended by 59-10 adding Subsection (g) to read as follows: 59-11 _(g) In this subsection, "board" means the Texas Water_ 59-12 _Development Board. A person with a legally defined interest in_ 59-13 _groundwater in a district or the regional water planning group may_ 59-14 _file a petition with the board stating that a conflict requiring_ 59-15 _resolution may exist between the district's certified groundwater_ 59-16 _conservation district management plan developed under Section_ 59-17 _36.1071 and the state water plan. If a conflict exists, the board_ 59-18 _shall facilitate coordination between the involved person or_ 59-19 _regional water planning group and the district to resolve the_ 59-20 _conflict. If conflict remains, the board shall resolve the_ 59-21 _conflict. The board action under this provision may be_ 59-22 _consolidated, at the option of the board, with related action under_ 59-23 _Section 16.053(p). If the board determines that resolution of the_ 59-24 _conflict requires a revision of the certified groundwater_ 59-25 _conservation district management plan, the board shall suspend the_ 59-26 _certification of the plan and provide information to the district._ 60-1 _The district shall prepare any revisions to the plan specified by_ 60-2 _the board and shall hold, after notice, at least one public hearing_ 60-3 _at some central location within the district. The district shall_ 60-4 _consider all public and board comments, prepare, revise, and adopt_ 60-5 _its plan, and submit the revised plan to the board for_ 60-6 _certification. On the request of the district or the regional_ 60-7 _water planning group, the board shall include discussion of the_ 60-8 _conflict and its resolution in the state water plan that the board_ 60-9 _provides to the governor, the lieutenant governor, and the speaker_ 60-10 _of the house of representatives under Section 16.051(e)._ 60-11 SECTION 2.48. Section 36.108, Water Code, is amended to read 60-12 as follows: 60-13 Sec. 36.108. JOINT PLANNING IN MANAGEMENT AREA. (a) If two 60-14 or more districts are located within the boundaries of the same 60-15 management area, each district shall prepare a comprehensive 60-16 management plan as required by Section 36.1071 covering that 60-17 district's respective territory. On completion _and certification_ 60-18 of the plan _as required by Section 36.1072_, each district shall 60-19 forward a copy of the new _or_ revised management plan to the other 60-20 districts in the management area. _The boards of the districts_ 60-21 _shall consider the plans individually and shall compare them to_ 60-22 _other management plans then in force in the management area._ 60-23 (b) The board of directors of each district in the 60-24 management area may, by resolution, call _for_ [a] joint _planning_ 60-25 [meeting] with [the boards of directors of] the other districts in 60-26 the management area to review the management plans and 61-1 accomplishments for the management area. [The boards shall meet to 61-2 consider the plans individually and shall compare them to other 61-3 management plans then in force in the management area.] In 61-4 reviewing the management plans, the boards shall consider: 61-5 (1) the goals of each management plan and its impact 61-6 on planning throughout the management area; 61-7 (2) the effectiveness of the measures established by 61-8 each management plan for conserving and protecting groundwater and 61-9 preventing waste, and the effectiveness of these measures in the 61-10 management area generally; and 61-11 (3) any other matters that the boards consider 61-12 relevant to the protection and conservation of groundwater and the 61-13 prevention of waste in the management area. 61-14 (c) _If a_ [A] joint meeting of the boards of directors _is_ 61-15 _called, the meeting_ must be held in accordance with [the Open 61-16 Meetings Act,] Chapter 551, Government Code. Notice of the meeting 61-17 shall be given in accordance with the requirements for notice of 61-18 district board of directors meetings under that Act. In addition, 61-19 notice of the meeting shall be published not later than the 30th 61-20 day before the date of the scheduled meeting in a newspaper with 61-21 general circulation in each county in the management area. 61-22 (d) A district in the management area may file _with good_ 61-23 _cause_ a petition with the commission requesting an inquiry if the 61-24 petitioner district _adopted a resolution calling for joint planning_ 61-25 _and the other district or districts refused to join in the planning_ 61-26 _process or the process failed to result in adequate planning, and_ 62-1 _the petition provides evidence_ [believes] that: 62-2 (1) another district in the management area has failed 62-3 to adopt rules; 62-4 (2) the groundwater in the management area is not 62-5 adequately protected by the rules adopted by another district; or 62-6 (3) the groundwater in the management area is not 62-7 adequately protected due to the failure of another district to 62-8 enforce substantial compliance with its rules. 62-9 (e) Not later than the 90th day after the date the petition 62-10 is filed, the commission shall review the petition and either: 62-11 (1) dismiss it if it finds that the evidence is not 62-12 adequate to show that any of the conditions alleged in the petition 62-13 exist; or 62-14 (2) select a review panel as provided in Subsection 62-15 (f). 62-16 (f) _If the petition is not dismissed under Subsection (e),_ 62-17 _the_ [The] commission _shall_ [may] appoint a review panel consisting 62-18 of a chairman and four other members. A director or general 62-19 manager of a district located outside the management area that is 62-20 the subject of the petition may be appointed to the review panel. 62-21 The commission may not appoint more than two members of the review 62-22 panel from any one district. The commission also shall appoint a 62-23 disinterested person to serve as a nonvoting recording secretary 62-24 for the review panel. The recording secretary may be an employee 62-25 of the commission. The recording secretary shall record and 62-26 document the proceedings of the panel. 63-1 (g) Not later than the 120th day after appointment, the 63-2 review panel shall review the petition and any evidence relevant to 63-3 the petition and, in a public meeting, _consider and adopt_ [prepare] 63-4 a report to _be submitted to_ the commission. The commission may 63-5 direct the review panel to conduct public hearings at a location in 63-6 the management area to take evidence on the petition. The review 63-7 panel may attempt to negotiate a settlement or resolve the dispute 63-8 by any lawful means. 63-9 (h) In its report, the review panel shall include: 63-10 (1) a summary of all evidence taken in any hearing on 63-11 the petition; 63-12 (2) a list of findings and recommended actions 63-13 appropriate for the commission to take and the reasons it finds 63-14 those actions appropriate; and 63-15 (3) any other information the panel considers 63-16 appropriate. 63-17 _(i) The review panel shall submit its report to the_ 63-18 _commission._ 63-19 _(j) Districts located within the same management areas or in_ 63-20 _adjacent management areas may contract to jointly conduct studies_ 63-21 _or research, or to construct projects, under terms and conditions_ 63-22 _that the districts consider beneficial. These joint efforts may_ 63-23 _include studies of groundwater availability and quality, aquifer_ 63-24 _modeling, and the interaction of groundwater and surface water;_ 63-25 _educational programs; the purchase and sharing of equipment; and_ 63-26 _the implementation of projects to make groundwater available,_ 64-1 _including aquifer recharge, brush control, weather modification,_ 64-2 _desalination, regionalization, and treatment or conveyance_ 64-3 _facilities. The districts may contract under their existing_ 64-4 _authorizations including those of Chapter 791, Government Code, if_ 64-5 _their contracting authority is not limited by Sections_ 64-6 _791.011(c)(2) and (d)(3) and Section 791.014, Government Code._ 64-7 SECTION 2.49. Section 36.113, Water Code, is amended by 64-8 amending Subsection (d), adding a new Subsection (e), and 64-9 relettering existing Subsections (e) and (f) as Subsections (f) and 64-10 (g) to read as follows: 64-11 (d) Before granting or denying a permit, the district shall 64-12 consider whether: 64-13 (1) the application conforms to the requirements 64-14 prescribed by this chapter and is accompanied by the prescribed 64-15 fees; 64-16 (2) the proposed use of water unreasonably affects 64-17 existing groundwater and surface water resources _or existing permit_ 64-18 _holders_; 64-19 (3) the proposed use of water is dedicated to any 64-20 beneficial use; 64-21 (4) the proposed use of water is consistent with the 64-22 district's certified water management plan; 64-23 (5) the applicant has agreed to avoid waste and 64-24 achieve water conservation; and 64-25 (6) the applicant has agreed that reasonable diligence 64-26 will be used to protect groundwater quality and that the applicant 65-1 will follow well plugging guidelines at the time of well closure. 65-2 (e) _The district may impose more restrictive permit_ 65-3 _conditions on new permit applications and increased use by historic_ 65-4 _users if the limitations:_ 65-5 _(1) apply to all subsequent new permit applications_ 65-6 _and increased use by historic users, regardless of type or location_ 65-7 _of use;_ 65-8 _(2) bear a reasonable relationship to the existing_ 65-9 _district management plan; and_ 65-10 _(3) are reasonably necessary to protect existing use._ 65-11 _(f)_ Permits may be issued subject to the rules promulgated 65-12 by the district and subject to terms and provisions with reference 65-13 to the drilling, equipping, completion, or alteration of wells or 65-14 pumps that may be necessary to prevent waste and achieve water 65-15 conservation, minimize as far as practicable the drawdown of the 65-16 water table or the reduction of artesian pressure, 65-17 lessen interference between wells, or control and prevent 65-18 subsidence. 65-19 _(g)_ [(f)] A district may require that changes in the 65-20 withdrawal and use of groundwater under a permit not be made 65-21 without the prior approval of a permit amendment issued by the 65-22 district. 65-23 SECTION 2.50. Section 36.116, Water Code, is amended to read 65-24 as follows: 65-25 Sec. 36.116. REGULATION OF SPACING AND PRODUCTION. _(a)_ In 65-26 order to minimize as far as practicable the drawdown of the water 66-1 table or the reduction of artesian pressure, to control subsidence, 66-2 _to prevent interference between wells, to prevent degradation of_ 66-3 _water quality,_ or to prevent waste, a district _by rule_ may 66-4 _regulate:_ 66-5 _(1)_ [provide for] the spacing of water wells _by:_ 66-6 _(A) requiring all water wells to be spaced a_ 66-7 _certain distance from property lines or adjoining wells;_ 66-8 _(B) requiring wells with a certain production_ 66-9 _capacity, pump size, or other characteristic related to the_ 66-10 _construction or operation of and production from a well to be_ 66-11 _spaced a certain distance from property lines or adjoining wells;_ 66-12 _or_ 66-13 _(C) imposing spacing requirements adopted by the_ 66-14 _board; and_ 66-15 _(2) the production of groundwater by:_ 66-16 _(A) setting production limits on wells;_ 66-17 _(B) limiting the amount of water produced based_ 66-18 _on acreage or tract size;_ 66-19 _(C) limiting the amount of water that may be_ 66-20 _produced from a defined number of acres assigned to an authorized_ 66-21 _well site;_ 66-22 _(D) limiting the maximum amount of water that_ 66-23 _may be produced on the basis of acre-feet per acre or gallons per_ 66-24 _minute per well site per acre; or_ 66-25 _(E) any combination of the above_ [and may 66-26 regulate the production of wells]. 67-1 _(b) In promulgating any rules limiting groundwater_ 67-2 _production, the district may preserve historic use before the_ 67-3 _effective date of the rules to the maximum extent practicable_ 67-4 _consistent with the district's comprehensive management plan under_ 67-5 _Section 36.1071._ 67-6 _(c) In regulating the production of groundwater based on_ 67-7 _tract size or acreage, a district may consider the service needs of_ 67-8 _a retail water utility. For purposes of this subsection, "retail_ 67-9 _water utility" shall have the meaning provided at Section 13.002._ 67-10 SECTION 2.51. Section 36.117, Water Code, is amended to read 67-11 as follows: 67-12 Sec. 36.117. EXEMPTIONS; EXCEPTION; LIMITATIONS. (a) A 67-13 district may exempt wells from the _requirement of obtaining_ 67-14 [requirements to obtain] a drilling permit, an operating permit, or 67-15 any other permit required by this chapter or the district's rules. 67-16 _(b)_ A district may not require _any_ [a] permit _issued by the_ 67-17 _district_ for: 67-18 (1) [drilling or producing from] a well _used solely_ 67-19 _for domestic use or for providing water for livestock or poultry on_ 67-20 _a tract of land larger than 10 acres that is_ either drilled, 67-21 completed, or equipped so that it is incapable of producing more 67-22 than 25,000 gallons of groundwater a day; 67-23 (2) the drilling _of a water well used solely to supply_ 67-24 _water for a rig that is actively engaged in drilling or exploration_ 67-25 _operations for an oil or gas well permitted by the Railroad_ 67-26 _Commission of Texas provided that the person holding the permit is_ 68-1 _responsible for drilling and operating the water well and the well_ 68-2 _is located on the same lease or field associated with the drilling_ 68-3 _rig;_ or [alteration of the size of a well or to restrict the 68-4 production of a well if the water produced or to be produced from 68-5 the well is used or to be used to supply the domestic needs of 10 68-6 or fewer households and a person who is a member of each household 68-7 is either the owner of the well, a person related to the owner or a 68-8 member of the owner's household within the second degree by 68-9 consanguinity, or an employee of the owner;] 68-10 (3) the drilling _of a water well authorized under a_ 68-11 _permit issued by the Railroad Commission of Texas under Chapter_ 68-12 _134, Natural Resources Code, or for production from such a well to_ 68-13 _the extent the withdrawals are required for mining activities_ 68-14 _regardless of any subsequent use of the water._ [or alteration of 68-15 the size of a well or to restrict the production from the well if 68-16 the water produced or to be produced from the well is used or to be 68-17 used to provide water for feeding livestock and poultry connected 68-18 with farming, ranching, or dairy enterprises; or] 68-19 [(4) water wells to supply water for hydrocarbon 68-20 production activities, regardless of whether those wells are 68-21 producing, that are associated with any well permitted by the 68-22 Railroad Commission of Texas drilled before September 1, 1985.] 68-23 [(b) The board shall adopt rules determining the 68-24 applicability of Subsection (a)(3) to facilities used primarily for 68-25 feeding livestock.] 68-26 (c) [The district shall not deny the owner of a tract of 69-1 land, or his lessee, who has no well equipped to produce more than 69-2 25,000 gallons a day on the tract, either a permit to drill a well 69-3 on his land or the privilege to produce groundwater from his land, 69-4 subject to the rules of the district.] 69-5 [(d)] A district may not restrict the production of any well 69-6 _that is exempt from permitting under Subsection (b)(1)_ [equipped to 69-7 produce 25,000 gallons or less a day]. 69-8 _(d) Notwithstanding Subsection (b), a district may require a_ 69-9 _well to be permitted by the district and to comply with all_ 69-10 _district rules if:_ 69-11 _(1) the purpose of a well exempted under Subsection_ 69-12 _(b)(2) is no longer solely to supply water for a rig that is_ 69-13 _actively engaged in drilling or exploration operations for an oil_ 69-14 _or gas well permitted by the Railroad Commission of Texas; or_ 69-15 _(2) the withdrawals from a well exempted under_ 69-16 _Subsection (b)(3) are no longer necessary for mining activities or_ 69-17 _are greater than the amount necessary for mining activities_ 69-18 _specified in the permit issued by the Railroad Commission of Texas_ 69-19 _under Chapter 134, Natural Resources Code._ 69-20 (e) _An entity holding a permit issued by the Railroad_ 69-21 _Commission of Texas under Chapter 134, Natural Resources Code, that_ 69-22 _authorizes the drilling of a water well shall report monthly to the_ 69-23 _district:_ 69-24 _(1) the total amount of water withdrawn during the_ 69-25 _month;_ 69-26 _(2) the quantity of water necessary for mining_ 70-1 _activities; and_ 70-2 _(3) the quantity of water withdrawn for other_ 70-3 _purposes._ [Nothing in this chapter applies to wells drilled for 70-4 oil, gas, sulphur, uranium, or brine, or for core tests, or for 70-5 injection of gas, saltwater, or other fluid, or for any other 70-6 purpose, under permits issued by the Railroad Commission of Texas. 70-7 A district may not require a drilling permit for a well to supply 70-8 water for drilling any wells permitted by the Railroad Commission 70-9 of Texas. Any well that ceases to be used for these purposes and 70-10 is then used as an ordinary water well is subject to the rules of 70-11 the district. Water wells drilled after September 1, 1997, to 70-12 supply water for hydrocarbon production activities must meet the 70-13 spacing requirements of the district unless no space is available 70-14 within 300 feet of the production well or the central injection 70-15 station.] 70-16 (f) _Notwithstanding Subsection (d), a district may not_ 70-17 _require a well exempted under Subsection (b)(3) to comply with the_ 70-18 _spacing requirements of the district._ [Water wells exempted under 70-19 this section shall be equipped and maintained so as to conform to 70-20 the district's rules requiring installation of casing, pipe, and 70-21 fittings to prevent the escape of groundwater from a groundwater 70-22 reservoir to any reservoir not containing groundwater and to 70-23 prevent the pollution or harmful alteration of the character of the 70-24 water in any groundwater reservoir.] 70-25 (g) A district _may not deny an application for a permit to_ 70-26 _drill and produce water for hydrocarbon production activities if_ 71-1 _the application meets all applicable rules as promulgated by the_ 71-2 _district._ 71-3 _(h) A_ [shall require] water _well_ [wells] exempted under 71-4 _Subsection (a) or (b) shall:_ 71-5 _(1)_ [this section to] be registered _in accordance_ with 71-6 _rules promulgated by_ the district_; and_ 71-7 _(2)_ [before drilling. All exempt water wells shall] 71-8 be equipped and maintained so as to conform to the district's rules 71-9 requiring installation of casing, pipe, and fittings to prevent the 71-10 escape of groundwater from a groundwater reservoir to any reservoir 71-11 not containing groundwater and to prevent the pollution or harmful 71-12 alteration of the character of the water in any groundwater 71-13 reservoir. 71-14 _(i) The driller of a well exempted under Subsection (a) or_ 71-15 _(b) shall file the drilling log with the district._ 71-16 _(j)_ [(h)] A well to supply water for a subdivision of land 71-17 for which a plat approval is required by _Chapter 232, Local_ 71-18 _Government Code,_ [law] is not exempted under _Subsection (b)_ [this 71-19 section]. 71-20 _(k) Groundwater withdrawn from a well exempt from permitting_ 71-21 _or regulation under this section and subsequently transported_ 71-22 _outside the boundaries of the district is subject to any applicable_ 71-23 _production and export fees under Sections 36.122 and 36.205._ 71-24 _(l) This chapter applies to water wells, including water_ 71-25 _wells used to supply water for activities related to the_ 71-26 _exploration or production of hydrocarbons or minerals. This_ 72-1 _chapter does not apply to production or injection wells drilled for_ 72-2 _oil, gas, sulphur, uranium, or brine, or for core tests, or for_ 72-3 _injection of gas, saltwater, or other fluids, under permits issued_ 72-4 _by the Railroad Commission of Texas._ 72-5 SECTION 2.52. Section 36.122, Water Code, is amended to read 72-6 as follows: 72-7 Sec. 36.122. TRANSFER OF GROUNDWATER OUT OF DISTRICT. 72-8 (a) _If an application for a permit or an amendment to a permit_ 72-9 _under Section 36.113 proposes the transfer of groundwater outside_ 72-10 _of a district's boundaries, the district may also consider the_ 72-11 _provisions of this section in determining whether to grant or deny_ 72-12 _the permit or permit amendment._ 72-13 _(b)_ A district may promulgate rules requiring a person to 72-14 obtain a permit _or an amendment to a permit under Section 36.113_ 72-15 from the district for the transfer of groundwater out of the 72-16 district to: 72-17 (1) increase, on or after March 2, 1997, the amount of 72-18 groundwater to be transferred under a continuing arrangement in 72-19 effect before that date; or 72-20 (2) transfer groundwater out of the district on or 72-21 after March 2, 1997, under a new arrangement. 72-22 _(c) Except as provided in Section 36.113(e), the district_ 72-23 _may not impose more restrictive permit conditions on transporters_ 72-24 _than the district imposes on existing in-district users._ 72-25 _(d)_ [(b)] The district may impose a reasonable fee for 72-26 processing an application [for a permit] under this section. _The_ 73-1 _fee may not exceed fees that the district imposes for processing_ 73-2 _other applications under Section 36.113. An application filed to_ 73-3 _comply with this section shall be considered and processed under_ 73-4 _the same procedures as other applications for permits under Section_ 73-5 _36.113 and shall be combined with applications filed to obtain a_ 73-6 _permit for in-district water use under Section 36.113 from the same_ 73-7 _applicant._ 73-8 _(e) The district may impose a reasonable fee or surcharge_ 73-9 _for an export fee using one of the following methods:_ 73-10 _(1) a fee negotiated between the district and the_ 73-11 _transporter;_ 73-12 _(2) a rate not to exceed the equivalent of the_ 73-13 _district's tax rate per hundred dollars of valuation for each_ 73-14 _thousand gallons of water transferred out of the district or 2.5_ 73-15 _cents per thousand gallons of water, if the district assesses a tax_ 73-16 _rate of less than 2.5 cents per hundred dollars of valuation; or_ 73-17 _(3) for a fee-based district, a 50 percent export_ 73-18 _surcharge, in addition to the district's production fee, for water_ 73-19 _transferred out of the district._ 73-20 _(f)_ [(c) Before issuing a permit under this section, the 73-21 district must give notice of the application and hold a public 73-22 hearing.] 73-23 [(d)] In _reviewing a proposed transfer of groundwater out of_ 73-24 _the district_ [determining whether to issue a permit under this 73-25 section], the district shall consider: 73-26 (1) the availability of water in the district and in 74-1 the proposed receiving area during the period for which the water 74-2 supply is requested; 74-3 (2) [the availability of feasible and practicable 74-4 alternative supplies to the applicant;] 74-5 [(3) the amount and purposes of use in the proposed 74-6 receiving area for which water is needed;] 74-7 [(4)] the projected effect of the proposed transfer on 74-8 aquifer conditions, depletion, subsidence, or effects on existing 74-9 permit holders or other groundwater users within the district; and 74-10 _(3)_ [(5)] the approved regional water plan and 74-11 certified district management plan. 74-12 _(g)_ [(e)] The district may _not deny a permit based on the_ 74-13 _fact that the applicant seeks to transfer groundwater outside of_ 74-14 _the district but may_ limit a permit issued under this section if 74-15 conditions in Subsection _(f)_ [(d)] warrant the limitation_, subject_ 74-16 _to Subsection (c)_. 74-17 _(h)_ [(f)] In addition to conditions provided by Section 74-18 36.1131, the permit shall specify: 74-19 (1) the amount of water that may be transferred out of 74-20 the district; and 74-21 (2) the period __for which the water may be transferred. 74-22 _(i) The period specified by Subsection (h)(2) shall be:_ 74-23 _(1) at least three years if construction of a_ 74-24 _conveyance system has not been initiated prior to the issuance of_ 74-25 _the permit; or_ 74-26 _(2) at least 30 years if construction of a conveyance_ 75-1 _system has been initiated prior to the issuance of the permit._ 75-2 _(j) A term under Subsection (i)(1) shall automatically be_ 75-3 _extended to the terms agreed to under Subsection (i)(2) if_ 75-4 _construction of a conveyance system is begun before the expiration_ 75-5 _of the initial term._ 75-6 _(k) Notwithstanding the period specified in Subsections (i)_ 75-7 _and (j) during which water may be transferred under a permit, a_ 75-8 _district may periodically review the amount of water that may be_ 75-9 _transferred under the permit and may limit the amount if additional_ 75-10 _factors considered in Subsection (f) warrant the limitation,_ 75-11 _subject to Subsection (c). The review described by this subsection_ 75-12 _may take place not more frequently than the period provided for the_ 75-13 _review or renewal of regular permits issued by the district. In_ 75-14 _its determination of whether to renew a permit issued under this_ 75-15 _section, the district shall consider relevant and current data for_ 75-16 _the conservation of groundwater resources and shall consider the_ 75-17 _permit in the same manner it would consider any other permit in the_ 75-18 _district._ 75-19 _(l) A district is prohibited from using revenues obtained_ 75-20 _under Subsection (e) to prohibit the transfer of groundwater_ 75-21 _outside of a district. A district is not prohibited from using_ 75-22 _revenues obtained under Subsection (e) for paying expenses related_ 75-23 _to enforcement of this chapter or district rules._ 75-24 _(m)_ [(g)] A district may not prohibit the export of 75-25 groundwater if the purchase was in effect on or before June 1, 75-26 1997. 76-1 _(n)_ [(h)] This section applies only to a transfer of water 76-2 that is _permitted_ [initiated or increased] after _September 1, 1997_ 76-3 [the effective date of this section]. 76-4 _(o)_ [(i)] A district shall adopt rules as necessary to 76-5 implement this section _but may not adopt rules expressly_ 76-6 _prohibiting the export of groundwater_. 76-7 _(p) Subsection (e) does not apply to a district that is_ 76-8 _collecting an export fee or surcharge on March 1, 2001._ 76-9 _(q) In applying this section, a district must be fair,_ 76-10 _impartial, and nondiscriminatory._ 76-11 SECTION 2.53. Section 36.205, Water Code, is amended to read 76-12 as follows: 76-13 Sec. 36.205. AUTHORITY TO SET FEES. (a) A district may set 76-14 fees for administrative acts of the district, such as filing 76-15 applications. Fees set by a district may not unreasonably exceed 76-16 the cost to the district of performing the administrative function 76-17 for which the fee is charged. 76-18 (b) A district shall set and collect fees for all services 76-19 provided outside the boundaries of the district. _The fees may not_ 76-20 _unreasonably exceed the cost to the district of providing the_ 76-21 _services outside the district._ 76-22 (c) _A district may assess production fees based on the_ 76-23 _amount of water authorized by permit to be withdrawn from a well or_ 76-24 _the amount actually withdrawn. A district may assess the fees in_ 76-25 _lieu of, or in conjunction with, any taxes otherwise levied by the_ 76-26 _district. A district may use revenues generated by the fees for_ 77-1 _any lawful purpose. Production fees_ [Fees based on the amount of 77-2 water to be withdrawn from a well] shall not exceed: 77-3 (1) _$1_ [one dollar] per _acre-foot payable annually_ 77-4 [acre foot] for water used for _agricultural use_ [the purpose of 77-5 irrigating agricultural crops]; or 77-6 (2) _$10 per acre-foot payable annually_ [17 cents per 77-7 thousand gallons] for water used for any other purpose. 77-8 (d) _The Barton Springs-Edwards Aquifer Conservation_ 77-9 _District, the Lone Star Groundwater Conservation District, and the_ 77-10 _Guadalupe County Groundwater Conservation District may not charge_ 77-11 _production fees for an annual period greater than $1 per acre- foot_ 77-12 _for water used for agricultural use or 17 cents per thousand_ 77-13 _gallons for water used for any other purpose. The Barton_ 77-14 _Springs-Edwards Aquifer Conservation District_ [A district affected 77-15 by Subsection (c)(2) that also] may assess a water use fee against 77-16 a specific municipality _in_ [shall assess] an amount not to exceed 77-17 60 percent of the total funding of the district received from water 77-18 use fees assessed against that municipality and other nonexempt 77-19 users in the district. This subsection shall take precedence over 77-20 all prior enactments. 77-21 (e) Subsection (c) does not apply to the following 77-22 districts: 77-23 (1) the Edwards Aquifer Authority; 77-24 (2) the Fort Bend Subsidence District; [or] 77-25 (3) the Harris-Galveston Coastal Subsidence District_;_ 77-26 _(4) the Barton Springs-Edwards Aquifer Conservation_ 78-1 _District; or_ 78-2 _(5) any district that collects a property tax and that_ 78-3 _was created before September 1, 1999, unless otherwise authorized_ 78-4 _by special law_. 78-5 _(f) A district, including a district described under_ 78-6 _Subsection (d), may assess a production fee under Subsection (c)_ 78-7 _for any water produced under an exemption under Section 36.117 if_ 78-8 _that water is subsequently sold to another person._ 78-9 _(g) A district may assess a transportation fee under Section_ 78-10 _36.122._ 78-11 SECTION 2.54. Section 36.206, Water Code, is amended by 78-12 amending Subsection (b) and adding Subsection (c) to read as 78-13 follows: 78-14 (b) The rate of fees set for [crop or livestock production 78-15 or other] agricultural uses shall be no more than 20 percent of the 78-16 rate applied to municipal uses. 78-17 _(c) District fees may not be used to purchase groundwater_ 78-18 _rights unless the purchased rights are acquired for conservation_ 78-19 _purposes and are permanently held in trust not to be produced._ 78-20 SECTION 2.55. Subchapter I, Chapter 36, Water Code, is 78-21 amended by adding Section 36.3011 to read as follows: 78-22 _Sec. 36.3011. FAILURE OF A DISTRICT TO CONDUCT JOINT_ 78-23 _PLANNING. (a) If the board of a district within a common_ 78-24 _management area fails to forward a copy of its new or revised_ 78-25 _certified management plan under Section 36.108, the commission_ 78-26 _shall take appropriate action under Section 36.303._ 79-1 _(b) Not later than the 45th day after receiving the review_ 79-2 _panel's report under Section 36.108, the executive director or the_ 79-3 _commission shall take action to implement any or all of the panel's_ 79-4 _recommendations. If the commission finds that a district in the_ 79-5 _joint planning area has failed to adopt rules, the groundwater in_ 79-6 _the management area is not adequately protected by the rules_ 79-7 _adopted by the district, or the groundwater in the management area_ 79-8 _is not adequately protected because of the district's failure to_ 79-9 _enforce substantial compliance with its rules, the commission may_ 79-10 _take any action it considers necessary in accordance with Section_ 79-11 _36.303._ 79-12 SECTION 2.56. Subsection (a), Section 36.303, Water Code, is 79-13 amended to read as follows: 79-14 (a) If Section _36.108,_ 36.301_,_ or 36.302(f) applies, the 79-15 commission, after notice and hearing in accordance with Chapter 79-16 2001, Government Code, shall take action the commission considers 79-17 appropriate, including: 79-18 (1) issuing an order requiring the district to take 79-19 certain actions or to refrain from taking certain actions; 79-20 (2) dissolving the board in accordance with Sections 79-21 36.305 and 36.307 _and calling an election for the purpose of_ 79-22 _electing a new board_; 79-23 (3) _requesting the attorney general to bring suit for_ 79-24 _the appointment of a receiver to collect the assets and carry on_ 79-25 _the business of the groundwater conservation district_ [removing the 79-26 district's taxing authority]; or 80-1 (4) dissolving the district in accordance with 80-2 Sections 36.304, 36.305, and 36.308. 80-3 SECTION 2.57. Subchapter I, Chapter 36, Water Code, is 80-4 amended by adding Section 36.3035 to read as follows: 80-5 _Sec. 36.3035. APPOINTMENT OF A RECEIVER. (a) If the_ 80-6 _attorney general brings a suit for the appointment of a receiver_ 80-7 _for a district, a district court shall appoint a receiver if an_ 80-8 _appointment is necessary to protect the assets of the district._ 80-9 _(b) The receiver shall execute a bond in an amount to be set_ 80-10 _by the court to ensure the proper performance of the receiver's_ 80-11 _duties._ 80-12 _(c) After appointment and execution of bond, the receiver_ 80-13 _shall take possession of the assets of the district specified by_ 80-14 _the court._ 80-15 _(d) Until discharged by the court, the receiver shall_ 80-16 _perform the duties that the court directs to preserve the assets_ 80-17 _and carry on the business of the district and shall strictly_ 80-18 _observe the final order involved._ 80-19 _(e) On a showing of good cause by the district, the court_ 80-20 _may dissolve the receivership and order the assets and control of_ 80-21 _the business returned to the district._ 80-22 SECTION 2.58. Section 51.149, Water Code, is amended to read 80-23 as follows: 80-24 Sec. 51.149. CONTRACTS. _(a) No approvals other than those_ 80-25 _specified in Subsection (c) and in Section 1, Chapter 778, Acts of_ 80-26 _the 74th Legislature, Regular Session, 1995, need be obtained in_ 81-1 _order for a contract between a district and a municipality to be_ 81-2 _valid, binding, and enforceable against all parties to the_ 81-3 _contract. After approval by a majority of the electors voting at_ 81-4 _an election conducted in the manner of a bond election, a district_ 81-5 _may make payments under a contract from taxes for debt that does_ 81-6 _not exceed 30 years._ 81-7 _(b)_ [(d)] A contract may provide that the district will make 81-8 payments under the contract from proceeds from the sale of notes or 81-9 bonds, from taxes, from any other income of the district, or from 81-10 any combination of these. 81-11 _(c)_ [(e)] A district may make payments under a contract from 81-12 taxes, other than maintenance taxes, after the provisions of the 81-13 contract have been approved by a majority of the electors voting at 81-14 an election held for that purpose. 81-15 _(d)_ [(f)] Any contract election may be held at the same time 81-16 as and in conjunction with an election to issue bonds, and the 81-17 procedure for calling the election, giving notice, conducting the 81-18 election, and canvassing the returns shall be the same as the 81-19 procedure for a bond election. 81-20 _(e) A district created pursuant to Chapter 628, Acts of the_ 81-21 _68th Legislature, Regular Session, 1983, is defined as a municipal_ 81-22 _corporation and political subdivision pursuant to Chapter 405, Acts_ 81-23 _of the 76th Legislature, Regular Session, 1999, and is authorized_ 81-24 _to take action accordingly._ 81-25 SECTION 2.59. Subsection (a), Section 182.052, Utilities 81-26 Code, is amended to read as follows: 82-1 (a) Except as provided by Section 182.054, a 82-2 government-operated utility may not disclose personal information 82-3 in a customer's account record_, or any information relating to the_ 82-4 _volume or units of utility usage or the amounts billed to or_ 82-5 _collected from the individual for utility usage,_ if the customer 82-6 requests that the government-operated utility keep the information 82-7 confidential. _However, a government-operated utility may disclose_ 82-8 _information related to the customer's volume or units of utility_ 82-9 _usage or amounts billed to or collected from the individual for_ 82-10 _utility usage if the primary source of water for such utility was a_ 82-11 _sole-source designated aquifer._ 82-12 SECTION 2.60. Section 1.03, Chapter 626, Acts of the 73rd 82-13 Legislature, Regular Session, 1993, is amended by adding 82-14 Subdivisions (26) and (27) to read as follows: 82-15 _(26) "Agricultural use" means any use or activity_ 82-16 _involving any of the following activities:_ 82-17 _(A) cultivating the soil to produce crops for_ 82-18 _human food, animal feed, or planting seed or for the production of_ 82-19 _fibers;_ 82-20 _(B) the practice of floriculture, viticulture,_ 82-21 _silviculture, and horticulture, including the cultivation of plants_ 82-22 _in containers or nonsoil media, by a nursery grower;_ 82-23 _(C) raising, feeding, or keeping animals for_ 82-24 _breeding purposes or for the production of food or fiber, leather,_ 82-25 _pelts, or other tangible products having a commercial value;_ 82-26 _(D) wildlife management;_ 83-1 _(E) raising or keeping equine animals; and_ 83-2 _(F) planting cover crops, including cover crops_ 83-3 _cultivated for transplantation, or leaving land idle for the_ 83-4 _purpose of participating in any governmental program or normal crop_ 83-5 _or livestock rotation procedure._ 83-6 _(27) "Nursery grower" means a person who grows more_ 83-7 _than 50 percent of the products that the person either sells or_ 83-8 _leases, regardless of the variety sold, leased, or grown. For the_ 83-9 _purpose of this definition, "grow" means the actual cultivation or_ 83-10 _propagation of the product beyond the mere holding or maintaining_ 83-11 _of the item before sale or lease and typically includes activities_ 83-12 _associated with the production or multiplying of stock, such as the_ 83-13 _development of new plants from cuttings, grafts, plugs, or_ 83-14 _seedlings._ 83-15 SECTION 2.61. Subsection (e), Section 1.29, Chapter 626, 83-16 Acts of the 73rd Legislature, Regular Session, 1993, is amended to 83-17 read as follows: 83-18 (e) In developing an equitable fee structure under this 83-19 section, the authority may establish different fee rates on a per 83-20 acre-foot basis for different types of use. The fees must be 83-21 equitable between types of uses. The fee rate for agricultural use 83-22 shall be based on the volume of water withdrawn and may not be more 83-23 than _$2 per acre-foot_ [20 percent of the fee rate for municipal 83-24 use]. The authority shall assess the fees on the amount of water a 83-25 permit holder is authorized to withdraw under the permit. 83-26 SECTION 2.62. Section 1.44, Chapter 626, Acts of the 73rd 84-1 Legislature, Regular Session, 1993, is amended by adding Subsection 84-2 (e) to read as follows: 84-3 _(e) The authority may contract for injection or artificial_ 84-4 _recharge under this section only if provision is made for_ 84-5 _protecting and maintaining the quality of groundwater in the_ 84-6 _receiving part of the aquifer, and:_ 84-7 _(1) the water used for artificial recharge is_ 84-8 _groundwater withdrawn from the aquifer; or_ 84-9 _(2) the water is recharged through a natural recharge_ 84-10 _feature._ 84-11 SECTION 2.63. Subsections (a) and (b), Section 4.03, Chapter 84-12 1029, Acts of the 76th Legislature, Regular Session, 1999, are 84-13 amended to read as follows: 84-14 (a) The authority may establish fees_, rates,_ and charges_,_ 84-15 _and classifications of fee payers and ratepayers,_ as necessary to 84-16 enable the authority to fulfill the authority's _purposes and_ 84-17 regulatory obligations provided by this Act. 84-18 (b) The authority may charge against the owner of a well 84-19 located in the authority's boundaries a fee on the amount of water 84-20 pumped from the well. The board shall establish the rate of a fee 84-21 under this subsection only after a special meeting on the fee. _The_ 84-22 _board shall by rule exempt from the fee under this subsection those_ 84-23 _classes of wells that are not subject to groundwater reduction_ 84-24 _requirements imposed by the subsidence district, except that if any_ 84-25 _of those classes of wells become subject at a future date to a_ 84-26 _groundwater reduction requirement imposed by the subsidence_ 85-1 _district, then the authority may after that date charge the fee_ 85-2 _under this subsection to those affected classes of wells._ The 85-3 board by rule may exempt _any other_ classes of wells from the fee 85-4 under this subsection. The board may not apply the fee to a well: 85-5 (1) with a casing diameter of less than five inches 85-6 that serves a single-family dwelling; 85-7 (2) regulated under Chapter 27, Water Code; 85-8 (3) used for irrigation of agricultural crops; _or_ 85-9 (4) [that produces 10 million gallons or less 85-10 annually; or] 85-11 [(5)] used solely for electric generation. 85-12 ARTICLE 3. DISTRICT RATIFICATIONS AND CREATIONS 85-13 PART 1. COW CREEK GROUNDWATER CONSERVATION DISTRICT 85-14 SECTION 3.0101. RATIFICATION OF CREATION. (a) The creation 85-15 of the Cow Creek Groundwater Conservation District in Kendall 85-16 County by Chapter 1331, Acts of the 76th Legislature, Regular 85-17 Session, 1999, is ratified as required by Section 15(a) of that 85-18 chapter, subject to approval at a confirmation election under 85-19 Section 3.0108 of this part. The district is a governmental agency 85-20 and a body politic and corporate. 85-21 (b) The district may develop and implement regulatory, 85-22 conservation, and recharge programs that preserve and protect 85-23 groundwater resources located in the district. 85-24 SECTION 3.0102. DEFINITIONS. In this part: 85-25 (1) "District" means the Cow Creek Groundwater 85-26 Conservation District. 86-1 (2) "Retail public utility" means a retail public 86-2 utility as defined by Section 13.002, Water Code, that is providing 86-3 service in the district on September 1, 2001. 86-4 (3) "Well" means any excavation drilled or dug into 86-5 the ground that may intercept or penetrate a water-bearing stratum 86-6 or formation. 86-7 SECTION 3.0103. BOUNDARIES. The boundaries of the district 86-8 are coextensive with the boundaries of Kendall County. 86-9 SECTION 3.0104. POWERS. Except as otherwise provided by 86-10 this part, the district has all of the rights, powers, privileges, 86-11 authority, functions, and duties provided by the general law of the 86-12 state, including Chapter 36, Water Code, applicable to groundwater 86-13 conservation districts created under Section 59, Article XVI, Texas 86-14 Constitution. This part prevails over any provision of general 86-15 law, including Chapter 36, Water Code, or Chapter 1331, Acts of the 86-16 76th Legislature, Regular Session, 1999, that is in conflict or 86-17 inconsistent with this part. 86-18 SECTION 3.0105. BOARD OF DIRECTORS. (a) The district is 86-19 governed by a board of five directors. 86-20 (b) Temporary directors serve until initial directors are 86-21 elected under Sections 3.0108 and 3.0109 of this part or until this 86-22 part expires under Section 3.0108 of this part, whichever occurs 86-23 first. 86-24 (c) Initial directors serve until permanent directors are 86-25 elected under Section 3.0110 of this part. 86-26 (d) Permanent directors serve staggered four-year terms. 87-1 (e) A director serves until the director's successor has 87-2 qualified. 87-3 (f) Each director must qualify to serve as director in the 87-4 manner provided by Section 36.055, Water Code. 87-5 (g) A vacancy in the office of director is filled by 87-6 appointment of the board until the next election for directors. At 87-7 the next election for directors, a person shall be elected to fill 87-8 the position. If the position is not scheduled to be filled at the 87-9 election, the person elected to fill the position shall serve only 87-10 for the remainder of the unexpired term. 87-11 SECTION 3.0106. METHOD OF ELECTING DIRECTORS: COMMISSIONERS 87-12 PRECINCTS. (a) The directors of the district shall be elected 87-13 according to the commissioners precinct method as provided by this 87-14 part. 87-15 (b) One director shall be elected by the qualified voters of 87-16 the entire district and one director shall be elected from each 87-17 county commissioners precinct by the qualified voters of that 87-18 precinct. 87-19 (c) A person shall indicate on the application for a place 87-20 on the ballot the precinct that the person seeks to represent or 87-21 that the person seeks to represent the district at large. 87-22 (d) When the boundaries of the commissioners precincts are 87-23 changed, each director in office on the effective date of the 87-24 change or elected to a term of office beginning on or after the 87-25 effective date of the change serves in the precinct to which the 87-26 director was elected for the entire term to which the director was 88-1 elected, even though the change in boundaries places the person's 88-2 residence outside the precinct for which the person was elected. 88-3 (e) To be eligible to be a candidate for or to serve as 88-4 director from a county commissioners precinct, a person must be a 88-5 registered voter in the precinct from which the person is elected 88-6 or appointed. To be eligible to be a candidate for or to serve as 88-7 director at large, a person must be a registered voter in the 88-8 district. 88-9 SECTION 3.0107. TEMPORARY DIRECTORS. (a) The temporary 88-10 board of directors shall be appointed by the county commissioners 88-11 court. One temporary director shall be appointed from each 88-12 commissioners precinct, and one temporary director shall be a 88-13 director at large. 88-14 (b) If a temporary director fails to qualify for office, the 88-15 temporary directors who have qualified shall appoint a person to 88-16 fill the vacancy. If at any time there are fewer than three 88-17 qualified temporary directors, the Texas Natural Resource 88-18 Conservation Commission shall appoint the necessary number of 88-19 persons to fill all vacancies on the board. 88-20 SECTION 3.0108. CONFIRMATION AND INITIAL DIRECTORS ELECTION. 88-21 (a) The temporary board of directors shall call and hold an 88-22 election to confirm establishment of the district and to elect five 88-23 initial directors. 88-24 (b) A person who wishes to be a candidate for the office of 88-25 initial director may file an application with the temporary board 88-26 of directors to have the candidate's name printed on the ballot as 89-1 provided by Section 3.0106 of this part. 89-2 (c) At the confirmation and initial directors election, the 89-3 temporary board of directors shall have the names of the five 89-4 persons serving as temporary directors placed on the ballot by 89-5 commissioners precinct and as at-large director, together with the 89-6 name of any candidate filing for the office of director as provided 89-7 by this section. 89-8 (d) If a majority of the votes cast at the election favor 89-9 the creation of the district, the temporary directors shall declare 89-10 the district created. If a majority of the votes cast at the 89-11 election are against the creation of the district, the temporary 89-12 directors shall declare the district defeated. The temporary 89-13 directors shall file a copy of the election results with the Texas 89-14 Natural Resource Conservation Commission. 89-15 (e) If a majority of the votes cast at the election are 89-16 against the creation of the district, the temporary directors may 89-17 call and hold subsequent elections to confirm establishment of the 89-18 district and to elect initial directors. A subsequent election may 89-19 not be held earlier than the first anniversary of the date on which 89-20 the previous election was held. If the district is not created 89-21 before September 1, 2006, this part expires on that date. 89-22 (f) Section 41.001(a), Election Code, does not apply to a 89-23 confirmation and initial directors election held under this 89-24 section. 89-25 (g) Section 36.017(a), Water Code, does not apply to the 89-26 district. 90-1 (h) Except as provided by this section, a confirmation and 90-2 directors election must be conducted as provided by Sections 90-3 36.017(b)-(h), Water Code, and the Election Code. 90-4 SECTION 3.0109. INITIAL DIRECTORS. (a) If the district is 90-5 created at the election, the temporary directors, at the time the 90-6 vote is canvassed, shall declare the candidate receiving the most 90-7 votes for each commissioners precinct or for the at-large director 90-8 to be elected as the initial directors. 90-9 (b) The initial directors for Precincts 2 and 3 serve until 90-10 the first regular meeting of the board of directors held after the 90-11 first permanent directors election under Section 3.0110 of this 90-12 part. The initial directors for Precincts 1 and 4 and the initial 90-13 director representing the district at large serve until the first 90-14 regular meeting of the board of directors held after the second 90-15 permanent directors election under Section 3.0110 of this part. 90-16 SECTION 3.0110. ELECTION OF PERMANENT DIRECTORS. Beginning 90-17 in the second year after the year in which the district is 90-18 authorized to be created at a confirmation election, an election 90-19 shall be held in the district on the first Saturday in May every 90-20 two years to elect the appropriate number of directors to the 90-21 board. 90-22 SECTION 3.0111. ADDITIONAL AUTHORITY. (a) The district may 90-23 contract with one or more state agencies or other governmental 90-24 bodies, including a county, a river authority, or another district, 90-25 to carry out any function of the district. 90-26 (b) The district may require a drilling permit before a new 91-1 well is drilled or an existing well is substantially altered. 91-2 Notwithstanding an exemption for a well under Section 36.117, Water 91-3 Code, written authorization granted by the district must be 91-4 received before a new well is drilled or an existing well is 91-5 substantially altered. 91-6 (c) The district may participate in the construction, 91-7 implementation, and maintenance of best management practices for 91-8 water resource management in the district and may engage in and 91-9 promote the acceptance of best management practices through 91-10 education efforts sponsored by the district. Construction, 91-11 implementation, and maintenance of best management practices must 91-12 address water quantity and quality practices such as brush 91-13 management, prescribed grazing, recharge structures, water and silt 91-14 detention and retention structures, plugging of abandoned wells, 91-15 rainwater harvesting, and other treatment measures for the 91-16 conservation of water resources. 91-17 (d) Reasonable fees, as determined by the district, may be 91-18 imposed on an annual basis on each nonexempt well. The district 91-19 shall adopt any rules necessary for the assessment and collection 91-20 of fees under this subsection. 91-21 (e) The district may use money collected from fees: 91-22 (1) in any manner necessary for the management and 91-23 operation of the district; 91-24 (2) to pay all or part of the principal of and 91-25 interest on district bonds or notes; and 91-26 (3) for any purpose consistent with the district's 92-1 certified water management plan. 92-2 (f) The district shall grant an exemption or other relief 92-3 from ad valorem taxes on property on which a water conservation 92-4 initiative has been implemented. The district shall adopt rules to 92-5 implement this subsection. A retail public utility shall receive 92-6 the same exemption or relief from ad valorem taxes on property as 92-7 any other customer of the district would receive. 92-8 (g) As a water conservation initiative to encourage retail 92-9 public utilities to obtain water supplies from sources other than 92-10 groundwater, the district shall grant an exemption or other relief 92-11 from ad valorem taxes on property served by a retail public utility 92-12 based on: 92-13 (1) the percentage of potable water supplied within 92-14 the district by the retail public utility from sources other than 92-15 groundwater compared to the total water supplied by the retail 92-16 public utility for the preceding year; and 92-17 (2) the percentage of wastewater effluent produced by 92-18 the retail public utility that is used as reclaimed water within 92-19 the district compared to the total wastewater effluent produced by 92-20 the retail public utility for the preceding year. The district 92-21 may consider the impact of floods and equipment breakage on the 92-22 retail public utility's ability to supply water from sources other 92-23 than groundwater. 92-24 (h) The total amount of the exemption or other relief from 92-25 ad valorem taxes may not exceed one-half of the tax levied by the 92-26 district. 93-1 SECTION 3.0112. PROHIBITED ACTS. The district may not: 93-2 (1) impose an ad valorem property tax for 93-3 administrative, operation, or maintenance expenses that exceeds the 93-4 lesser of the rate approved by the majority of the qualified voters 93-5 voting in the election authorizing the tax, or three cents per $100 93-6 valuation; 93-7 (2) require the owner of a well used solely for 93-8 domestic or livestock purposes to install a meter or measuring 93-9 device on the well; 93-10 (3) enter into any contract or engage in any action to 93-11 supply water to any person in the service area of any municipality 93-12 or retail public utility located in the district, except with the 93-13 consent of the municipality or retail public utility; or 93-14 (4) issue any bonds secured by ad valorem taxes before 93-15 September 1, 2004. 93-16 PART 2. CROSSROADS GROUNDWATER CONSERVATION DISTRICT 93-17 SECTION 3.0201. RATIFICATION OF CREATION. The creation of 93-18 the Crossroads Groundwater Conservation District in Victoria County 93-19 by Chapter 1331, Acts of the 76th Legislature, Regular Session, 93-20 1999, is ratified as required by Section 15(a) of that chapter, 93-21 subject to approval at a confirmation election under Section 3.0210 93-22 of this part. 93-23 SECTION 3.0202. DEFINITIONS. In this part: 93-24 (1) "Board" means the district's board of directors. 93-25 (2) "Commissioners court" means the Victoria County 93-26 Commissioners Court. 94-1 (3) "District" means the Crossroads Groundwater 94-2 Conservation District. 94-3 SECTION 3.0203. LEGISLATIVE FINDINGS. The legislature finds 94-4 that: 94-5 (1) the organization of the district is feasible and 94-6 practicable; 94-7 (2) all of the land to be included in, and the 94-8 residents of, the district will benefit from the creation of the 94-9 district; 94-10 (3) there is a public necessity for the district; and 94-11 (4) the creation of the district will provide a 94-12 benefit and utility to the public. 94-13 SECTION 3.0204. BOUNDARIES. The boundaries of the district 94-14 are coextensive with the boundaries of Victoria County. 94-15 SECTION 3.0205. APPLICATION OF CHAPTER 36, WATER CODE; 94-16 GENERAL POWERS AND DUTIES. (a) Except to the extent of any 94-17 conflict with this part or as specifically limited by this part, 94-18 the district is governed by and subject to Chapter 36, Water Code, 94-19 and may exercise all of the powers contained in that chapter, 94-20 including the power to issue bonds and levy and collect taxes and 94-21 the power of eminent domain. The district may exercise all of the 94-22 duties provided by Chapter 36, Water Code. 94-23 (b) This part prevails over any conflicting or inconsistent 94-24 provision of Chapter 1331, Acts of the 76th Legislature, Regular 94-25 Session, 1999. 94-26 SECTION 3.0206. BOARD OF DIRECTORS. (a) The district is 95-1 governed by a board of seven directors. 95-2 (b) The directors for Places 1-4 are appointed by the 95-3 commissioners court. The directors for Places 5-7 are appointed by 95-4 the city council of the City of Victoria. 95-5 (c) The directors shall select from their members persons to 95-6 serve as chairman, vice chairman, and secretary. 95-7 SECTION 3.0207. QUALIFICATIONS OF BOARD MEMBERS. To be 95-8 qualified for appointment as a director, a person must be a 95-9 resident of the district and must be at least 18 years of age. 95-10 SECTION 3.0208. TERM OF OFFICE. (a) Except for the 95-11 temporary and initial directors of the district, directors serve 95-12 staggered four-year terms. 95-13 (b) A vacancy in the office of director is filled for the 95-14 remainder of the term by appointment by the commissioners court or 95-15 the city council of the City of Victoria, as appropriate. 95-16 SECTION 3.0209. TEMPORARY DIRECTORS. (a) On September 1, 95-17 2001, the following persons are designated as temporary directors 95-18 of the district: 95-19 (1) Place 1: Mark Dierlam 95-20 (2) Place 2: Rocky Sanders 95-21 (3) Place 3: S. F. Ruschhaupt III 95-22 (4) Place 4: Joseph Dial 95-23 (5) Place 5: Stephen Diebel 95-24 (6) Place 6: Jerry James 95-25 (7) Place 7: Denise McCue 95-26 (b) If a temporary director fails to qualify for office or 96-1 if a vacancy occurs in the office of temporary director for any 96-2 reason, the commissioners court shall appoint a person to fill a 96-3 vacancy in Place 1, 2, 3, or 4, and the city council of the City of 96-4 Victoria shall appoint a person to fill a vacancy in Place 5, 6, or 96-5 7. 96-6 (c) The temporary directors shall select from their members 96-7 persons to serve as chairman, vice chairman, and secretary. 96-8 (d) The temporary directors serve until they declare the 96-9 district created, at which time they become the initial directors 96-10 of the district under Section 3.0211 of this part. 96-11 (e) To be qualified to serve as a temporary director, a 96-12 person must be a resident of Victoria County and at least 18 years 96-13 of age. 96-14 SECTION 3.0210. CONFIRMATION ELECTION. (a) Not later than 96-15 October 1, 2001, and without the necessity of having a petition 96-16 presented, the temporary directors shall meet and call an election 96-17 to be held not later than January 1, 2002, within the boundaries of 96-18 the proposed district to confirm the creation of the district. 96-19 (b) Section 41.001(a), Election Code, does not apply to an 96-20 election called under this section. 96-21 (c) The ballot for the election shall be printed to provide 96-22 for a vote for or against the following propositions: 96-23 (1) the creation of the Crossroads Groundwater 96-24 Conservation District in Victoria County; and 96-25 (2) the levy and collection of a property tax in the 96-26 district. 97-1 (d) The temporary board may include other propositions on 97-2 the ballot that it considers necessary. 97-3 (e) If a majority of votes cast at the election favor the 97-4 creation of the district, the temporary directors shall declare the 97-5 district created. If a majority of the votes cast at the election 97-6 are against the creation of the district, the temporary directors 97-7 shall declare the district defeated. The temporary directors shall 97-8 file a copy of the election results with the Texas Natural Resource 97-9 Conservation Commission. 97-10 (f) If the creation of the district is defeated, further 97-11 elections may be called and held after the first anniversary of the 97-12 most recent confirmation election. If the district is not created 97-13 by September 1, 2006, this part expires. 97-14 SECTION 3.0211. INITIAL DIRECTORS. (a) On confirmation of 97-15 the creation of the district under Section 3.0210 of this part, the 97-16 temporary directors become the initial directors of the district 97-17 and serve terms as provided by Subsection (b) of this section, 97-18 except that not later than the 60th day after the date on which the 97-19 temporary directors declare the district created, the commissioners 97-20 court may replace any director in Places 1-4 and the city council 97-21 of the City of Victoria may replace any director in Places 5-7. 97-22 (b) The initial directors for Places 1, 3, 5, and 7 serve 97-23 for four years following the confirmation of the district. The 97-24 initial directors for Places 2, 4, and 6 serve for two years 97-25 following the confirmation of the district. 97-26 (c) If, for any reason, an appointed director is not 98-1 qualified to take office at the first regular meeting of the board 98-2 following the director's appointment, the director for that place 98-3 shall continue to serve until a successor has qualified. 98-4 SECTION 3.0212. LIMITATION ON TAXATION. The district may 98-5 not impose an ad valorem tax at a rate that exceeds two cents on 98-6 the $100 valuation of taxable property in the district. 98-7 PART 3. HAYS TRINITY GROUNDWATER CONSERVATION DISTRICT 98-8 SECTION 3.0301. RATIFICATION OF CREATION. The creation by 98-9 Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999, 98-10 of the Hays Trinity Groundwater Conservation District in Hays 98-11 County is ratified as required by Section 15(a) of that Act, 98-12 subject to approval at a confirmation election under Section 3.0309 98-13 of this part. 98-14 SECTION 3.0302. DEFINITION. In this part, "district" means 98-15 the Hays Trinity Groundwater Conservation District. 98-16 SECTION 3.0303. BOUNDARIES. The boundaries of the district 98-17 are coextensive with the boundaries of Hays County, Texas, 98-18 excluding any area in Hays County that is, on the effective date of 98-19 this Act, within another groundwater conservation district with 98-20 authority to require a permit to drill or alter a well for the 98-21 withdrawal of groundwater. Not later than the 30th day after the 98-22 date of the first meeting of the board of directors of the 98-23 district, and before a confirmation election is held, the board 98-24 shall prepare and file a description of district boundaries with 98-25 the Hays County clerk and the Texas Natural Resource Conservation 98-26 Commission. 99-1 SECTION 3.0304. GENERAL POWERS. (a) The district has all 99-2 of the rights, powers, privileges, authority, functions, and duties 99-3 provided by the general law of this state, including Chapter 36, 99-4 Water Code, applicable to groundwater conservation districts 99-5 created under Section 59, Article XVI, Texas Constitution. This 99-6 part prevails over any provision of general law that is in conflict 99-7 or inconsistent with this part, including any provision of Chapter 99-8 1331, Acts of the 76th Legislature, Regular Session, 1999. 99-9 (b) Notwithstanding Subsection (a) of this section, the 99-10 following provisions prevail over a conflicting or inconsistent 99-11 provision of this part: 99-12 (1) Sections 36.1071-36.108, Water Code; 99-13 (2) Sections 36.159-36.161, Water Code; and 99-14 (3) Subchapter I, Chapter 36, Water Code. 99-15 (c) The district may not enter property to inspect an exempt 99-16 well without the property owner's permission. 99-17 (d) The Hays County Commissioners Court by resolution may 99-18 require an election to affirm or reverse a decision of the board of 99-19 directors of the district not later than six months after the date 99-20 of the decision. 99-21 (e) The district may not adopt standards for the 99-22 construction of a residential well that are more stringent than 99-23 state standards for a residential well. 99-24 SECTION 3.0305. EXEMPT WELLS. (a) The following wells are 99-25 exempt from the requirements of Chapter 36, Water Code, and may not 99-26 be regulated, permitted, or metered by the district: 100-1 (1) a well used for domestic use by a single private 100-2 residential household and producing less than 25,000 gallons per 100-3 day; and 100-4 (2) a well used for conventional farming and ranching 100-5 activities, including such intensive operations as aquaculture, 100-6 livestock feedlots, or poultry operations. 100-7 (b) The district may not require a permit to construct a 100-8 well described by Subsection (a)(2) of this section. 100-9 (c) A well used for dewatering and monitoring in the 100-10 production of coal or lignite is exempt from permit requirements, 100-11 regulations, and fees imposed by the district. 100-12 SECTION 3.0306. FISCAL RESPONSIBILITIES. (a) The district 100-13 annually shall prepare a budget showing proposed expenditures and 100-14 disbursements and estimated receipts and collections for the next 100-15 fiscal year and shall hold a public hearing on the proposed budget. 100-16 The district must publish notice of the hearing at least once in a 100-17 newspaper of general circulation in the county not later than the 100-18 10th day before the date of the hearing. A taxpayer of the 100-19 district is entitled to appear at the hearing to be heard regarding 100-20 any item in the proposed budget. 100-21 (b) At the written request of the Hays County Commissioners 100-22 Court, the county auditor shall audit the performance of the 100-23 district. The court may request a general audit of the performance 100-24 of the district or may request an audit of only one or more 100-25 district matters. 100-26 SECTION 3.0307. BOARD OF DIRECTORS. (a) The district is 101-1 governed by a board of five directors. 101-2 (b) Temporary directors serve until initial directors are 101-3 elected under Section 3.0309 of this part. 101-4 (c) Initial directors serve until permanent directors are 101-5 elected under Section 3.0310 of this part. 101-6 (d) Permanent directors serve staggered two-year terms. 101-7 (e) Each director must qualify to serve as director in the 101-8 manner provided by Section 36.055, Water Code. 101-9 (f) A director serves until the director's successor has 101-10 qualified. 101-11 (g) If there is a vacancy on the board, the Hays County 101-12 Commissioners Court shall appoint a director to serve the remainder 101-13 of the term. 101-14 (h) A director may not receive a salary or other 101-15 compensation for service as a director but may be reimbursed for 101-16 actual expenses of attending meetings at the rate in effect for 101-17 employees of Hays County. 101-18 SECTION 3.0308. METHOD OF ELECTING DIRECTORS: SINGLE- MEMBER 101-19 DISTRICTS. (a) The temporary directors shall draw five numbered, 101-20 single-member districts for electing directors. 101-21 (b) For the conduct of an election under Section 3.0309 or 101-22 Section 3.0310 of this part, the board shall provide for one 101-23 director to be elected from each of the single-member districts. A 101-24 director elected from a single-member district represents the 101-25 residents of that single-member district. 101-26 (c) To be qualified to be a candidate for or to serve as 102-1 director, a person must be a registered voter in the single- member 102-2 district that the person represents or seeks to represent. 102-3 (d) The initial or permanent directors may revise the 102-4 districts as necessary or appropriate. The board of directors 102-5 shall revise each single-member district after each federal 102-6 decennial census to reflect population changes. At the first 102-7 election after the single-member districts are revised, a new 102-8 director shall be elected from each district. The directors shall 102-9 draw lots to determine which two directors serve one-year terms and 102-10 which three directors serve two-year terms. 102-11 SECTION 3.0309. CONFIRMATION AND INITIAL DIRECTORS ELECTION. 102-12 (a) The temporary board of directors shall call and hold an 102-13 election to confirm establishment of the district and to elect 102-14 initial directors. 102-15 (b) At the confirmation and initial directors election, the 102-16 temporary board of directors shall have placed on the ballot the 102-17 name of any candidate filing for an initial director's position and 102-18 blank spaces to write in the names of other persons. A temporary 102-19 director who is qualified to be a candidate under Section 3.0308 of 102-20 this part may file for an initial director's position. 102-21 (c) Section 41.001(a), Election Code, does not apply to a 102-22 confirmation and initial directors election held as provided by 102-23 this section. 102-24 (d) Except as provided by this section, a confirmation and 102-25 initial directors election must be conducted as provided by 102-26 Sections 36.017(b)-(h), Water Code, and the Election Code. 103-1 SECTION 3.0310. ELECTION OF DIRECTORS. (a) On the first 103-2 Saturday in May or the first Tuesday after the first Monday in 103-3 November of the first even-numbered year after the year in which 103-4 the district is authorized to be created at a confirmation 103-5 election, an election shall be held in the district for the 103-6 election of three directors to serve two-year terms and two 103-7 directors to serve one-year terms. 103-8 (b) On the first Saturday in May or the first Tuesday after 103-9 the first Monday in November, as applicable, of each subsequent 103-10 second year following the election held under Subsection (a) of 103-11 this section, the appropriate number of directors shall be elected. 103-12 SECTION 3.0311. OTHER ELECTIONS. An election held by the 103-13 district, other than an election under Section 3.0309 or 3.0310 of 103-14 this part, must be scheduled to coincide with a general election in 103-15 May or November. 103-16 SECTION 3.0312. FUNDING AUTHORITY. (a) Except as provided 103-17 by Sections 3.0305(b) and (c) of this part, the district may 103-18 require a permit for the construction of a new well completed after 103-19 the effective date of this Act and may charge and collect a 103-20 construction permit fee not to exceed $300. 103-21 (b) The district may levy and collect a water utility 103-22 service connection fee not to exceed $300 for each new water 103-23 service connection made after the effective date of this Act. This 103-24 subsection does not apply to a water utility that has surface water 103-25 as its sole source of water. 103-26 (c) Notwithstanding Section 3.0304(a) of this part or 104-1 Subchapter G, Chapter 36, Water Code, the district may not impose a 104-2 tax or assess or collect any fees except as authorized by 104-3 Subsection (a) or (b) of this section. 104-4 SECTION 3.0313. EXPIRATION DATE. If the creation of the 104-5 district is not confirmed at a confirmation election held under 104-6 Section 3.0309 of this part before September 1, 2003, this part 104-7 expires on that date. 104-8 PART 4. LONE WOLF GROUNDWATER CONSERVATION DISTRICT 104-9 SECTION 3.0401. RATIFICATION OF CREATION. The creation of 104-10 the Lone Wolf Groundwater Conservation District in Mitchell County 104-11 by Chapter 1331, Acts of the 76th Legislature, Regular Session, 104-12 1999, is ratified as required by Section 15(a) of that chapter, 104-13 subject to approval at a confirmation election under Section 3.0407 104-14 of this part. 104-15 SECTION 3.0402. DEFINITION. In this part, "district" means 104-16 the Lone Wolf Groundwater Conservation District. 104-17 SECTION 3.0403. GENERAL POWERS. The district has all of the 104-18 rights, powers, privileges, authority, functions, and duties 104-19 provided by the general law of the state, including Chapter 36, 104-20 Water Code, applicable to groundwater conservation districts 104-21 created under Section 59, Article XVI, Texas Constitution. This 104-22 part prevails over any provision of general law, including Chapter 104-23 36, Water Code, or Chapter 1331, Acts of the 76th Legislature, 104-24 Regular Session, 1999, that is in conflict or inconsistent with 104-25 this part. 104-26 SECTION 3.0404. BOARD OF DIRECTORS. (a) The district is 105-1 governed by a board of five directors. 105-2 (b) Temporary directors serve until initial directors are 105-3 elected under Section 3.0407 of this part. 105-4 (c) Initial directors serve until permanent directors are 105-5 elected under Section 3.0408 of this part. 105-6 (d) Permanent directors serve staggered four-year terms. 105-7 (e) Each director must qualify to serve as director in the 105-8 manner provided by Section 36.055, Water Code. 105-9 (f) A director serves until the director's successor has 105-10 qualified. 105-11 SECTION 3.0405. COMPENSATION OF DIRECTORS. A director is 105-12 not entitled to fees of office but is entitled to reimbursement of 105-13 actual expenses reasonably and necessarily incurred while engaging 105-14 in activities on behalf of the district. 105-15 SECTION 3.0406. METHOD OF ELECTING DIRECTORS: COMMISSIONERS 105-16 PRECINCTS. (a) The directors of the district shall be elected 105-17 according to the commissioners precinct method as provided by this 105-18 section. 105-19 (b) One director shall be elected by the voters of the 105-20 entire district, and one director shall be elected from each county 105-21 commissioners precinct by the voters of that precinct. 105-22 (c) To be eligible to be a candidate for or to serve as 105-23 director at large, a person must be a registered voter in the 105-24 district. To be eligible to be a candidate for or to serve as 105-25 director from a county commissioners precinct, a person must be a 105-26 registered voter of that precinct. 106-1 (d) A person shall indicate on the application for a place 106-2 on the ballot: 106-3 (1) the precinct that the person seeks to represent; 106-4 or 106-5 (2) that the person seeks to represent the district at 106-6 large. 106-7 (e) When the boundaries of the commissioners precincts are 106-8 changed, each director in office on the effective date of the 106-9 change or elected to a term of office beginning on or after the 106-10 effective date of the change serves in the precinct to which the 106-11 director was elected for the entire term to which the director was 106-12 elected, even though the change in boundaries places the person's 106-13 residence outside the precinct for which the person was elected. 106-14 SECTION 3.0407. CONFIRMATION AND INITIAL DIRECTORS ELECTION. 106-15 (a) The temporary board of directors shall call and hold an 106-16 election to confirm establishment of the district and to elect 106-17 initial directors. 106-18 (b) At the confirmation and initial directors election, the 106-19 temporary board of directors shall have placed on the ballot the 106-20 name of any candidate filing for an initial director position and 106-21 blank spaces to write in the names of other persons. A temporary 106-22 director who is eligible to be a candidate under Section 3.0406 of 106-23 this part may file for an initial director position. 106-24 (c) Section 41.001(a), Election Code, does not apply to a 106-25 confirmation and initial directors election held as provided by 106-26 this section. 107-1 (d) Except as provided by this section, a confirmation and 107-2 initial directors election must be conducted as provided by 107-3 Sections 36.017(b)-(h), Water Code, and the Election Code. 107-4 SECTION 3.0408. ELECTION OF DIRECTORS. (a) On the first 107-5 Saturday in May of the first even-numbered year after the year in 107-6 which the district is authorized to be created at a confirmation 107-7 election, an election shall be held in the district for the 107-8 election of three directors to serve four-year terms and two 107-9 directors to serve two-year terms. 107-10 (b) On the first Saturday in May of each subsequent second 107-11 year following the election, the appropriate number of directors 107-12 shall be elected. 107-13 SECTION 3.0409. LIMITATION ON TAXATION. The district may 107-14 levy property taxes at a rate not to exceed 20 cents on each $100 107-15 of assessed valuation to pay any part of the bonds or notes issued 107-16 by the district if the authority to impose property taxes under 107-17 this part is approved by a majority of the voters voting at a 107-18 confirmation election under Section 3.0407 of this part or at a 107-19 separate election called for that purpose by the board of 107-20 directors. 107-21 SECTION 3.0410. EXPIRATION. If the creation of the district 107-22 is not confirmed at a confirmation election held under Section 107-23 3.0407 of this part before September 1, 2003, the district is 107-24 dissolved and this part expires on that date. 107-25 PART 5. LOST PINES GROUNDWATER CONSERVATION DISTRICT 107-26 SECTION 3.0501. RATIFICATION OF CREATION. The creation of 108-1 the Lost Pines Groundwater Conservation District in Bastrop and Lee 108-2 counties by Chapter 1331, Acts of the 76th Legislature, Regular 108-3 Session, 1999, is ratified as required by Section 15(a) of that 108-4 chapter, subject to approval at a confirmation election under 108-5 Section 3.0507 of this part. 108-6 SECTION 3.0502. DEFINITIONS. In this part: 108-7 (1) "District" means the Lost Pines Groundwater 108-8 Conservation District. 108-9 (2) "Public utility" means any person, corporation, 108-10 public utility, water supply or sewer service corporation, 108-11 municipality, political subdivision, or agency operating, 108-12 maintaining, or controlling facilities in the state for providing 108-13 potable water service for compensation. 108-14 SECTION 3.0503. BOUNDARIES. The boundaries of the district 108-15 are coextensive with the boundaries of Bastrop and Lee counties, 108-16 Texas. 108-17 SECTION 3.0504. POWERS. (a) The district has all of the 108-18 rights, powers, privileges, authority, functions, and duties 108-19 provided by the general law of the state, including Chapter 36, 108-20 Water Code, applicable to groundwater conservation districts 108-21 created under Section 59, Article XVI, Texas Constitution. This 108-22 part prevails over any provision of general law, including Chapter 108-23 36, Water Code, or Chapter 1331, Acts of the 76th Legislature, 108-24 Regular Session, 1999, that is in conflict or inconsistent with 108-25 this part. 108-26 (b) The district may not impose a tax. The district may 109-1 assess regulatory pumping fees for water produced in or exported 109-2 from the district. The regulatory pumping fees the district 109-3 assesses for water for crop or livestock production or other 109-4 agricultural uses may not exceed 20 percent of the rate applied to 109-5 water for municipal uses. Regulatory pumping fees based on the 109-6 amount of water withdrawn from a well may not exceed: 109-7 (1) $1 per acre-foot for water used for the purpose of 109-8 irrigating agricultural crops; or 109-9 (2) 17 cents per thousand gallons for water used for 109-10 any other purpose. 109-11 (c) The district may adopt a rule exempting a well that is 109-12 not capable of producing more than 50,000 gallons of groundwater a 109-13 day from a permit requirement, a fee, or a restriction on 109-14 production. 109-15 SECTION 3.0505. GROUNDWATER WELLS UNDER JURISDICTION OF 109-16 RAILROAD COMMISSION. (a) Groundwater wells drilled or operated 109-17 within the district under permits issued by the Railroad Commission 109-18 of Texas are under the exclusive jurisdiction of the railroad 109-19 commission and are exempt from regulation by the district. 109-20 (b) Groundwater produced in an amount authorized by a 109-21 railroad commission permit may be used within or exported from the 109-22 district without obtaining a permit from the district. 109-23 (c) To the extent groundwater production exceeds railroad 109-24 commission authorization, the holder of the railroad commission 109-25 permit must apply to the district for appropriate permits for the 109-26 excess production and is subject to the applicable regulatory fees. 110-1 (d) Groundwater produced from wells under the jurisdiction 110-2 of the railroad commission is generally exempt from water district 110-3 fees. However, the district may impose either a pumping fee or an 110-4 export fee on groundwater produced from an otherwise exempt mine 110-5 well that is used for municipal purposes or by a public utility. 110-6 Any fee imposed by the district under this subsection may not 110-7 exceed the fee imposed on other groundwater producers in the 110-8 district. 110-9 SECTION 3.0506. BOARD OF DIRECTORS. (a) The district is 110-10 governed by a board of 10 directors. 110-11 (b) Five directors shall be appointed from Bastrop County by 110-12 the county judge of Bastrop County and five directors shall be 110-13 appointed from Lee County by the county judge of Lee County. 110-14 (c) Temporary directors serve until their successors are 110-15 appointed and have qualified. 110-16 (d) The temporary directors shall draw lots to determine: 110-17 (1) which three directors from each county will serve 110-18 four-year terms that expire December 31, 2005; and 110-19 (2) which two directors from each county will serve 110-20 two-year terms that expire December 31, 2003. 110-21 (e) In each subsequent second year following the initial 110-22 appointment of directors, the appropriate number of directors shall 110-23 be appointed. 110-24 (f) Except as provided by Subsection (d) of this section, 110-25 directors serve staggered four-year terms. 110-26 (g) Directors may serve consecutive terms. 111-1 (h) Each director must qualify to serve as director in the 111-2 manner provided by Section 36.055, Water Code. 111-3 (i) A director serves until the director's successor has 111-4 qualified. 111-5 (j) If a vacancy occurs on the board of directors, the board 111-6 may appoint a director to serve the remainder of the term. 111-7 (k) A director may receive fees of office as provided by 111-8 Section 36.060, Water Code, and is entitled to reimbursement for 111-9 reasonable actual expenses incurred in performing duties as a 111-10 director. 111-11 SECTION 3.0507. INITIAL MEETING AND CONFIRMATION ELECTION. 111-12 (a) As soon as practicable after September 1, 2001, the temporary 111-13 directors shall meet to set the date for and call the confirmation 111-14 election. The directors shall hold the meeting in conjunction with 111-15 the regularly scheduled meeting of the directors. 111-16 (b) The election shall be held on the authorized election 111-17 date in November if the United States Department of Justice has 111-18 precleared this part by that time. If this part has not been 111-19 precleared by the November election date, the confirmation election 111-20 shall be held at the next authorized election date. The district 111-21 shall contract with the county clerks of Bastrop and Lee counties 111-22 to conduct the election. 111-23 (c) Except as provided by this section, the confirmation 111-24 election must be conducted as provided by Sections 36.017 and 111-25 36.018, Water Code, and the Election Code. 111-26 (d) If a majority of the votes cast at an election held 112-1 under this section is against the confirmation of the district, the 112-2 temporary directors may not call another election under this 112-3 section before the first anniversary of that election. 112-4 SECTION 3.0508. REGIONAL COOPERATION. The district shall: 112-5 (1) adopt a management plan detailing proposed efforts 112-6 of the district to cooperate with other groundwater conservation 112-7 districts; 112-8 (2) participate as needed in coordination meetings 112-9 with adjacent groundwater conservation districts that share one or 112-10 more aquifers with the district; 112-11 (3) coordinate the collection of data with adjacent 112-12 groundwater conservation districts in such a way as to achieve 112-13 relative uniformity of data type and quality; 112-14 (4) provide groundwater level information to adjacent 112-15 groundwater conservation districts; 112-16 (5) investigate any groundwater pollution to identify 112-17 the pollution's source; 112-18 (6) notify adjacent groundwater conservation districts 112-19 and all appropriate agencies of any groundwater pollution detected 112-20 and the source of pollution identified; 112-21 (7) provide to adjacent groundwater conservation 112-22 districts annually an inventory of water wells in the district and 112-23 an estimate of groundwater production within the district; and 112-24 (8) include adjacent groundwater conservation 112-25 districts on mailing lists for district newsletters and information 112-26 regarding seminars, public education events, news articles, and 113-1 field days. 113-2 SECTION 3.0509. EXPIRATION. If the creation of this 113-3 district is not confirmed at a confirmation election held under 113-4 Section 3.0507 of this part before September 1, 2005, this part 113-5 expires on that date. 113-6 SECTION 3.0510. CONFLICTS. If another bill relating to the 113-7 Lost Pines Groundwater Conservation District is enacted by the 77th 113-8 Legislature, Regular Session, 2001, and becomes law, then, to the 113-9 extent of any conflict between that Act and this part, the 113-10 provisions of that Act shall prevail. 113-11 PART 6. MCMULLEN GROUNDWATER CONSERVATION DISTRICT 113-12 SECTION 3.0601. RATIFICATION OF CREATION. The creation of 113-13 the McMullen Groundwater Conservation District in McMullen County 113-14 by Chapter 1331, Acts of the 76th Legislature, Regular Session, 113-15 1999, is ratified as required by Section 15(a) of that chapter, 113-16 subject to approval at a confirmation election under Section 3.0607 113-17 of this part. 113-18 SECTION 3.0602. DEFINITION. In this part, "district" means 113-19 the McMullen Groundwater Conservation District. 113-20 SECTION 3.0603. BOUNDARIES. The boundaries of the district 113-21 are coextensive with the boundaries of McMullen County. 113-22 SECTION 3.0604. GENERAL POWERS. (a) The district has all 113-23 of the rights, powers, privileges, authority, functions, and duties 113-24 provided by the general law of the state, including Chapter 36, 113-25 Water Code, applicable to groundwater conservation districts 113-26 created under Section 59, Article XVI, Texas Constitution. This 114-1 part prevails over any provision of general law, including Chapter 114-2 36, Water Code, or Chapter 1331, Acts of the 76th Legislature, 114-3 Regular Session, 1999, that is in conflict or inconsistent with 114-4 this part. 114-5 (b) The rights, powers, privileges, authority, functions, 114-6 and duties of the district are subject to the continuing right of 114-7 supervision of the state to be exercised by and through the Texas 114-8 Natural Resource Conservation Commission. 114-9 SECTION 3.0605. BOARD OF DIRECTORS. (a) The district is 114-10 governed by a board of five directors. 114-11 (b) Temporary directors serve until initial directors are 114-12 elected under Section 3.0607 of this part. 114-13 (c) Initial directors serve until permanent directors are 114-14 elected under Section 3.0608 of this part. 114-15 (d) Permanent directors serve staggered four-year terms. 114-16 (e) Each director must qualify to serve as director in the 114-17 manner provided by Section 36.055, Water Code. 114-18 (f) A director serves until the director's successor has 114-19 qualified. 114-20 (g) If there is a vacancy on the board, the remaining 114-21 directors shall appoint a director to serve the remainder of the 114-22 term. 114-23 SECTION 3.0606. METHOD OF ELECTING DIRECTORS: COMMISSIONERS 114-24 PRECINCTS. (a) The directors of the district shall be elected 114-25 according to the commissioners precinct method as provided by this 114-26 section. 115-1 (b) One director shall be elected by the voters of the 115-2 entire district and one director shall be elected from each county 115-3 commissioners precinct by the voters of that precinct. 115-4 (c) To be qualified as a candidate for or to serve as 115-5 director at large, a person must be a registered voter in the 115-6 district. To be a candidate for or to serve as director from a 115-7 county commissioners precinct, a person must be a registered voter 115-8 of that precinct. 115-9 (d) A person shall indicate on the application for a place 115-10 on the ballot: 115-11 (1) the precinct that the person seeks to represent; 115-12 or 115-13 (2) that the person seeks to represent the district at 115-14 large. 115-15 (e) When the boundaries of the commissioners precincts are 115-16 changed, each director in office on the effective date of the 115-17 change or elected to a term of office beginning on or after the 115-18 effective date of the change serves in the precinct to which the 115-19 director was elected for the entire term to which the director was 115-20 elected, even though the change in boundaries places the person's 115-21 residence outside the precinct for which the person was elected. 115-22 SECTION 3.0607. CONFIRMATION AND INITIAL DIRECTORS ELECTION. 115-23 (a) The temporary board of directors shall call and hold an 115-24 election to confirm establishment of the district and to elect 115-25 initial directors. 115-26 (b) At the confirmation and initial directors election, the 116-1 temporary board of directors shall have placed on the ballot the 116-2 names of the persons serving as temporary directors who intend to 116-3 run for an initial director position and are qualified to be a 116-4 candidate under Section 3.0606 of this part together with the name 116-5 of any candidate filing for an initial director position and blank 116-6 spaces to write in the names of other persons. 116-7 (c) If the district is created at the election, the 116-8 temporary board of directors, at the time the vote is canvassed, 116-9 shall: 116-10 (1) declare the qualified person who receives the most 116-11 votes for each position to be elected as the initial director for 116-12 that position; and 116-13 (2) include the results of the initial directors 116-14 election in the district's election report to the Texas Natural 116-15 Resource Conservation Commission. 116-16 (d) Section 41.001(a), Election Code, does not apply to a 116-17 confirmation and initial directors election held as provided by 116-18 this section. 116-19 (e) Except as provided by this section, a confirmation and 116-20 initial directors election must be conducted as provided by 116-21 Sections 36.017(b)-(h), Water Code, and the Election Code. 116-22 (f) If a majority of the votes cast at an election held 116-23 under this section is against the confirmation of the district, the 116-24 temporary directors may not call another election under this 116-25 section before the first anniversary of that election. 116-26 SECTION 3.0608. ELECTION OF PERMANENT DIRECTORS. (a) On 117-1 the first Saturday in October of the second year after the year in 117-2 which the district is authorized to be created at a confirmation 117-3 election, an election shall be held in the district for the 117-4 election of directors from county commissioners precincts one and 117-5 three, each of whom serves a two-year term, and directors from 117-6 county commissioners precincts two and four and the director at 117-7 large, each of whom serves a four-year term. 117-8 (b) On the first Saturday in October of each subsequent 117-9 second year following the election, the appropriate number of 117-10 directors shall be elected to the board, each of whom serves a 117-11 four-year term. 117-12 SECTION 3.0609. LIMITATION ON TAXATION. The district may 117-13 not impose an ad valorem tax at a rate that exceeds five cents on 117-14 the $100 valuation of taxable property in the district. 117-15 SECTION 3.0610. EXPIRATION. If the creation of the district 117-16 is not confirmed at a confirmation election held under Section 117-17 3.0607 of this part before September 1, 2003, this part expires on 117-18 that date. 117-19 PART 7. KIMBLE COUNTY GROUNDWATER CONSERVATION DISTRICT 117-20 SECTION 3.0701. CREATION. (a) A groundwater conservation 117-21 district, to be known as the Kimble County Groundwater Conservation 117-22 District, is created in Kimble County, subject to approval at a 117-23 confirmation election under this part. The district is a 117-24 governmental agency and a body politic and corporate. 117-25 (b) The district is created under and is essential to 117-26 accomplish the purposes of Section 59, Article XVI, Texas 118-1 Constitution. 118-2 SECTION 3.0702. DEFINITION. In this part, "district" means 118-3 the Kimble County Groundwater Conservation District. 118-4 SECTION 3.0703. BOUNDARIES. The boundaries of the district 118-5 are coextensive with the boundaries of Kimble County, Texas, 118-6 excluding that part of Kimble County that lies within the 118-7 boundaries of the Hickory Underground Water District. 118-8 SECTION 3.0704. FINDING OF BENEFIT. All of the land and 118-9 other property included within the boundaries of the district will 118-10 be benefited by the works and projects that are to be accomplished 118-11 by the district under powers conferred by Section 59, Article XVI, 118-12 Texas Constitution. The district is created to serve a public use 118-13 and benefit. 118-14 SECTION 3.0705. GENERAL POWERS. (a) The district has all 118-15 of the rights, powers, privileges, authority, functions, and duties 118-16 provided by the general law of this state, including Chapter 36, 118-17 Water Code, applicable to groundwater conservation districts 118-18 created under Section 59, Article XVI, Texas Constitution. This 118-19 part prevails over any provision of general law that is in conflict 118-20 or is inconsistent with this part. 118-21 (b) Notwithstanding Subsection (a) of this section, the 118-22 following provisions prevail over a conflicting or inconsistent 118-23 provision of this part: 118-24 (1) Sections 36.1071-36.108, Water Code; 118-25 (2) Sections 36.159-36.161, Water Code; and 118-26 (3) Subchapter I, Chapter 36, Water Code. 119-1 (c) Chapter 49, Water Code, does not apply to the district. 119-2 SECTION 3.0706. BOARD OF DIRECTORS. (a) The district is 119-3 governed by a board of five directors. 119-4 (b) Temporary directors serve until initial directors are 119-5 elected under this part. 119-6 (c) Initial directors serve until permanent directors are 119-7 elected under this part. 119-8 (d) Permanent directors serve staggered four-year terms. 119-9 (e) Each director must qualify to serve as director in the 119-10 manner provided by Section 36.055, Water Code. 119-11 (f) A director serves until the director's successor has 119-12 qualified. 119-13 SECTION 3.0707. COMPENSATION OF DIRECTORS. A director is 119-14 not entitled to fees of office but is entitled to reimbursement of 119-15 actual expenses reasonably and necessarily incurred while engaging 119-16 in activities on behalf of the district. 119-17 SECTION 3.0708. TEMPORARY DIRECTORS. (a) The temporary 119-18 board of directors consists of five members appointed by the 119-19 Commissioners Court of Kimble County. 119-20 (b) If a temporary director fails to qualify for office, the 119-21 Commissioners Court of Kimble County shall appoint a person to fill 119-22 the vacancy. 119-23 SECTION 3.0709. METHOD OF ELECTING DIRECTORS: SINGLE- MEMBER 119-24 DISTRICTS. (a) The temporary directors shall draw five numbered, 119-25 single-member districts for electing directors. 119-26 (b) For the conduct of an election under the following two 120-1 sections of this part, the board shall provide for one director to 120-2 be elected from each of the single-member districts. A director 120-3 elected from a single-member district represents the residents of 120-4 that single-member district. 120-5 (c) To be qualified to be a candidate for or to serve as 120-6 director, a person must be a registered voter in the single- member 120-7 district that the person represents or seeks to represent. 120-8 (d) The initial or permanent directors may revise the 120-9 districts as necessary or appropriate. The board of directors 120-10 shall revise each single-member district after each federal 120-11 decennial census to reflect population changes. At the first 120-12 election after the single-member districts are revised, a new 120-13 director shall be elected from each district. The directors shall 120-14 draw lots to determine which two directors serve two-year terms and 120-15 which three directors serve four-year terms. 120-16 SECTION 3.0710. CONFIRMATION AND INITIAL DIRECTORS ELECTION. 120-17 (a) The temporary board of directors shall call and hold an 120-18 election to confirm establishment of the district and to elect 120-19 initial directors. 120-20 (b) At the confirmation and initial directors election, the 120-21 temporary board of directors shall have placed on the ballot the 120-22 name of any candidate filing for an initial director's position and 120-23 blank spaces to write in the names of other persons. A temporary 120-24 director who is qualified to be a candidate under the preceding 120-25 section of this part may file for an initial director's position. 120-26 (c) Section 41.001(a), Election Code, does not apply to a 121-1 confirmation and initial directors election held as provided by 121-2 this section. 121-3 (d) Except as provided by this section, a confirmation and 121-4 initial directors election must be conducted as provided by 121-5 Sections 36.017(b)-(h), Water Code, and the Election Code. 121-6 SECTION 3.0711. ELECTION OF DIRECTORS. (a) On the first 121-7 Saturday in May of the first even-numbered year after the year in 121-8 which the district is authorized to be created at a confirmation 121-9 election, an election shall be held in the district for the 121-10 election of three directors to serve four-year terms and two 121-11 directors to serve two-year terms. 121-12 (b) On the first Saturday in May of each subsequent second 121-13 year following the election, the appropriate number of directors 121-14 shall be elected. 121-15 SECTION 3.0712. TAX RATE. The district may not levy a tax 121-16 to pay any part of bonds or notes issued by the district that 121-17 exceeds 20 cents on each $100 of assessed valuation. 121-18 SECTION 3.0713. EFFECTIVE DATE; EXPIRATION DATE. (a) This 121-19 part takes effect September 1, 2001. 121-20 (b) If the creation of the district is not confirmed at a 121-21 confirmation election held under this part before September 1, 121-22 2003, this part expires on that date. 121-23 PART 8. RED SANDS GROUNDWATER CONSERVATION DISTRICT 121-24 SECTION 3.0801. RATIFICATION OF CREATION. The creation of 121-25 the Red Sands Groundwater Conservation District in Hidalgo County 121-26 by Chapter 1331, Acts of the 76th Legislature, Regular Session, 122-1 1999, is ratified as required by Section 15(a) of that chapter, 122-2 subject to approval at a confirmation election under Section 3.0808 122-3 of this part. 122-4 SECTION 3.0802. DEFINITION. In this part, "district" means 122-5 the Red Sands Groundwater Conservation District. 122-6 SECTION 3.0803. BOUNDARIES. The district includes all of 122-7 the territory contained in the following described area: 122-8 A 19,232 acre tract more or less out of San Salvador Del Tule Grant 122-9 as recorded in Volume 10, Page 58 of the Hidalgo County, Texas map 122-10 records and out of the Santa Anita Grant as recorded in Volume 7, 122-11 Page 38 of the Hidalgo County, Texas map records. 122-12 Commencing at the Southeast Corner of this here in described 122-13 boundary tract, said point being the intersection of the centerline 122-14 of U.S. Highway 281 and the centerline of Farm to Market Road 122-15 number 490 (F.M. 490) (West Hargill Road) as shown in the map of 122-16 San Salvador Del Tule Grant as recorded in Volume 10, Page 58 of 122-17 the Hidalgo County map records. Said point is also the point of 122-18 beginning. 122-19 Thence, Westerly along the center line of the F.M. 490, an 122-20 approximate distance of 18,400 feet to a point on the West line of 122-21 San Salvador Del Tule Grant, said point also being the intersection 122-22 of the centerline of F.M. 490 and the West line of the San Salvador 122-23 Del Tule Grant, 122-24 Thence, Northerly along the West line of the San Salvador Del Tule 122-25 Grant and the East line of the Santa Anita Grant at an approximate 122-26 distance of 21,300 feet to a point, said point being an inside 123-1 corner of this herein described tract, and also being the Southeast 123-2 corner of Redland Vineyards Subdivision as recorded in Volume 4, 123-3 Page 51 of the Hidalgo County map records, 123-4 Thence, Westerly along the South line of the Redland Vineyards 123-5 Subdivision, an approximate distance of 4,238 feet to a point, said 123-6 point being an outside corner of this herein described tract, said 123-7 point also being the Southwest corner of the Redland Vineyard 123-8 Subdivision, 123-9 Thence, Northerly with the West line of Redland Vineyards 123-10 Subdivision, at approximately 4,590.50 feet past a point, said 123-11 point being the Northwest corner of Redland Vineyard Subdivision, 123-12 and the Southwest corner of Delbridge Subdivision as recorded in 123-13 Volume 5, Page 11, Hidalgo County map records, and continuing 123-14 Northerly along the West line of Delbridge Subdivision for an 123-15 approximate total distance of 6,646 feet to a point, said point 123-16 being an inside corner of this herein described tract, and also 123-17 being the Northwest corner of Delbridge Subdivision, 123-18 Thence, Westerly along the South line of a 196.37 acres tract, 123-19 known as the A.B. De Kock Tract, an approximate distance of 3,500 123-20 feet past the Southeast corner of share 4, out of the 8,374.70 acre 123-21 tract partition out of the Santa Anita Grant as recorded in Volume 123-22 7, Page 38, in the Hidalgo County map records and continuing 123-23 Westerly for an approximate total distance of 6,500 feet to a 123-24 point, said point being an outside corner of this herein described 123-25 tract and also being the Southwest corner of share 4, 123-26 Thence, Northerly along the West line of share 4, an approximate 124-1 total distance of 19,143 feet to a point, said point being the 124-2 Northwest corner of this herein described tracts and, the 124-3 intersection of the West line of share 4 and the centerline of Farm 124-4 to Market Road number 1017, (F.M. 1017) 124-5 Thence, in a Southeasterly direction, with the Right-of-Way 124-6 centerline of Farm to Market Road number 1017 (F.M. 1017) an 124-7 approximate total distance of 27,800 feet to a point, said point 124-8 being the Northeast corner of this herein described tract, and also 124-9 being the intersection of the centerline of F.M. 1017 Right-of- Way 124-10 and the center line of the U.S. Highway 281 Right-Of-Way, 124-11 Thence, in a Southerly direction, with the centerline of U.S. 124-12 Highway 281 Right-Of-Way, an approximate distance of 7,500 feet 124-13 past Floral Road, and at approximate 21,700 feet past Red Gate Road 124-14 and at approximate 29,700 feet past Laguna Seca Road and for an 124-15 approximate total distance of 39,300 feet to the point of beginning 124-16 of this here in described tract, said tract contains 19,232 Acres, 124-17 More or Less. 124-18 SECTION 3.0804. FINDINGS RELATIVE TO BOUNDARIES. The 124-19 legislature finds that the boundaries and field notes of the 124-20 district form a closure. A mistake in the field notes or in the 124-21 copying of the field notes in the legislative process does not 124-22 affect the organization, existence, or validity of the district, 124-23 the right of the district to levy and collect taxes, or the 124-24 legality or operation of the district or its governing body. 124-25 SECTION 3.0805. GENERAL POWERS. (a) Except as provided by 124-26 this part, the district has all of the rights, powers, privileges, 125-1 authority, functions, and duties provided by the general law of the 125-2 state, including Chapter 36, Water Code, applicable to groundwater 125-3 conservation districts created under Section 59, Article XVI, Texas 125-4 Constitution. This part prevails over any provision of general 125-5 law, including Chapter 36, Water Code, or Chapter 1331, Acts of the 125-6 76th Legislature, Regular Session, 1999, that is in conflict or 125-7 inconsistent with this part. 125-8 (b) The rights, powers, privileges, authority, functions, 125-9 and duties of the district are subject to the continuing right of 125-10 supervision of the state, to be exercised by and through the Texas 125-11 Natural Resource Conservation Commission. 125-12 SECTION 3.0806. BOARD OF DIRECTORS. (a) The district is 125-13 governed by a board of five directors, each elected at large to one 125-14 of five numbered places. 125-15 (b) To be eligible to serve as a director, an individual 125-16 must reside in the district. 125-17 (c) Each director must qualify to serve as director in the 125-18 manner provided by Section 36.055, Water Code. 125-19 (d) Permanent directors serve staggered three-year terms. 125-20 (e) A director serves until the director's successor has 125-21 qualified. 125-22 (f) A vacancy in the office of director shall be filled by 125-23 appointment of the board of directors until the next election of 125-24 directors, at which election a person shall be elected to fill the 125-25 position. If the position is not scheduled to be filled at the 125-26 election, the person elected to fill the position serves only the 126-1 remainder of the unexpired term. 126-2 (g) An appointed director who is qualified to serve as a 126-3 director under Subsection (b) of this section is eligible to run 126-4 for election to the board of directors. 126-5 SECTION 3.0807. TEMPORARY DIRECTORS. (a) The temporary 126-6 board of directors is composed of: 126-7 (1) Lucas Hinojosa; 126-8 (2) Becky Guerra; 126-9 (3) Arcadio Guerra; 126-10 (4) Elizabeth Ann Sweet; and 126-11 (5) John Cozad. 126-12 (b) The temporary directors are not required to meet the 126-13 eligibility requirements of permanent directors. 126-14 (c) Temporary directors serve until permanent directors are 126-15 elected at the confirmation election under Section 3.0808 of this 126-16 part. 126-17 SECTION 3.0808. CONFIRMATION AND INITIAL DIRECTORS ELECTION. 126-18 (a) The temporary board of directors shall call and hold an 126-19 election to confirm establishment of the district and to elect 126-20 initial directors. 126-21 (b) At the confirmation and initial directors election, the 126-22 temporary board of directors shall have placed on the ballot the 126-23 names of the candidates for each of the five numbered positions and 126-24 blank spaces to write in the names of other persons. Names on the 126-25 ballot may include persons serving as temporary directors who 126-26 intend to run for an initial director position together with the 127-1 name of any candidate filing for an initial director position. 127-2 (c) If a majority of the votes cast at the election are in 127-3 favor of the creation of the district, the temporary board of 127-4 directors shall declare the district created. If a majority of the 127-5 votes cast at the election are against the creation of the 127-6 district, the temporary board of directors shall declare the 127-7 district defeated. The temporary board of directors shall file a 127-8 copy of the election results with the Texas Natural Resource 127-9 Conservation Commission. 127-10 (d) If a majority of the votes cast at the election are 127-11 against the creation of the district, the temporary board of 127-12 directors may not call another election under this section before 127-13 the first anniversary of the date of the election. 127-14 (e) If the creation of the district is confirmed at the 127-15 election, the temporary board of directors, at the time the vote is 127-16 canvassed, shall: 127-17 (1) declare the qualified person who receives the most 127-18 votes for each position to be elected as the initial director for 127-19 that position; and 127-20 (2) include the results of the initial directors 127-21 election in the district's election report to the Texas Natural 127-22 Resource Conservation Commission. 127-23 (f) The initial directors shall draw lots to determine their 127-24 terms so that: 127-25 (1) one director serves a one-year term that expires 127-26 on the anniversary of the date the initial directors were elected; 128-1 (2) two directors serve two-year terms that expire on 128-2 the anniversary of the date the initial directors were elected; and 128-3 (3) two directors serve three-year terms that expire 128-4 on the anniversary of the date the initial directors were elected. 128-5 (g) Section 41.001(a), Election Code, does not apply to a 128-6 confirmation and initial directors election held as provided by 128-7 this section. 128-8 (h) Except as provided by this section, a confirmation 128-9 election must be conducted as provided by Sections 36.017(b)-(h), 128-10 Water Code, and the Election Code. 128-11 SECTION 3.0809. ELECTION OF PERMANENT DIRECTORS. Beginning 128-12 in the first year after the year in which the district is 128-13 authorized to be created at a confirmation election, the board of 128-14 directors shall call an election to be held in the district on the 128-15 first Saturday of the month in which the initial directors were 128-16 elected under Section 3.0808 of this part and every year after that 128-17 date to elect the appropriate number of directors to the board. 128-18 SECTION 3.0810. ELIGIBLE DISTRICT VOTERS. Any person 128-19 qualified to vote under the Election Code who resides in the 128-20 district is eligible to vote in district elections. 128-21 SECTION 3.0811. TAXATION AUTHORITY. (a) The board of 128-22 directors shall impose taxes in accordance with Subchapter G, 128-23 Chapter 36, Water Code. 128-24 (b) Notwithstanding Section 36.201, Water Code, the board of 128-25 directors may annually impose an ad valorem tax at a rate not to 128-26 exceed two cents on each $100 of assessed valuation unless a higher 129-1 rate is approved by a majority of the voters of the district voting 129-2 at an election called and held for that purpose. 129-3 SECTION 3.0812. TRANSPORTATION OF GROUNDWATER. (a) The 129-4 board of directors may adopt rules under Section 36.122, Water 129-5 Code, requiring a permit to transport district groundwater outside 129-6 the district. The board of directors shall authorize the 129-7 transportation of groundwater for use outside the district if the 129-8 board determines that the use is in the public interest. The board 129-9 of directors may: 129-10 (1) designate uses of water that are in the public 129-11 interest; and 129-12 (2) establish criteria for permits issued under the 129-13 rules. 129-14 (b) Transportation projects for the use of groundwater 129-15 outside the district that began before September 1, 2001, may 129-16 continue without a permit if the use of groundwater is on land 129-17 contiguous to the district's boundaries and is for domestic or 129-18 livestock purposes. 129-19 SECTION 3.0813. EXPIRATION. If the creation of the district 129-20 is not confirmed at a confirmation election held under Section 129-21 3.0808 of this part before September 1, 2003, this part expires on 129-22 that date. 129-23 PART 9. REFUGIO GROUNDWATER CONSERVATION DISTRICT 129-24 SECTION 3.0901. RATIFICATION OF CREATION. The creation of 129-25 the Refugio Groundwater Conservation District in Refugio County by 129-26 Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999, 130-1 is ratified as required by Section 15(a) of that chapter, subject 130-2 to approval at a confirmation election under Section 3.0907 of this 130-3 part. 130-4 SECTION 3.0902. DEFINITION. In this part, "district" means 130-5 the Refugio Groundwater Conservation District. 130-6 SECTION 3.0903. BOUNDARIES. The boundaries of the district 130-7 are coextensive with the boundaries of Refugio County. 130-8 SECTION 3.0904. GENERAL POWERS. The district has all of the 130-9 rights, powers, privileges, authority, functions, and duties 130-10 provided by the general law of this state, including Chapter 36, 130-11 Water Code, applicable to groundwater conservation districts 130-12 created under Section 59, Article XVI, Texas Constitution. This 130-13 part prevails over any provision of general law, including Chapter 130-14 36, Water Code, or Chapter 1331, Acts of the 76th Legislature, 130-15 Regular Session, 1999, that is in conflict or inconsistent with 130-16 this part. 130-17 SECTION 3.0905. BOARD OF DIRECTORS. (a) The district is 130-18 governed by a board of five directors. 130-19 (b) Temporary directors serve until initial directors are 130-20 elected under Section 3.0907 of this part. 130-21 (c) Initial directors serve until permanent directors are 130-22 elected under Section 3.0908 of this part. 130-23 (d) Permanent directors serve staggered four-year terms. 130-24 (e) Each director must qualify to serve as director in the 130-25 manner provided by Section 36.055, Water Code. 130-26 (f) A director serves until the director's successor has 131-1 qualified. 131-2 (g) If a director fails to qualify for office or if there is 131-3 at any time a vacancy on the temporary board of directors, the 131-4 commissioners court shall appoint a person to fill the vacancy. 131-5 SECTION 3.0906. METHOD OF ELECTING DIRECTORS: COMMISSIONERS 131-6 PRECINCTS. (a) The directors of the district shall be elected 131-7 according to the commissioners precinct method as provided by this 131-8 section. 131-9 (b) One director shall be elected by the qualified voters of 131-10 the entire district, and one director shall be elected from each 131-11 county commissioners precinct by the qualified voters of that 131-12 precinct. 131-13 (c) To be qualified to be a candidate for or to serve as 131-14 director at large, a person must be a registered voter in the 131-15 district. To be a candidate for or to serve as director from a 131-16 county commissioners precinct, a person must be a registered voter 131-17 of that precinct. 131-18 (d) A person shall indicate on the application for a place 131-19 on the ballot: 131-20 (1) the precinct that the person seeks to represent; 131-21 or 131-22 (2) that the person seeks to represent the district at 131-23 large. 131-24 (e) When the boundaries of the commissioners precincts are 131-25 changed, each director in office on the effective date of the 131-26 change or elected to a term of office beginning on or after the 132-1 effective date of the change serves in the precinct to which the 132-2 director was elected for the entire term to which the director was 132-3 elected, even though the change in boundaries places the person's 132-4 residence outside the precinct for which the person was elected. 132-5 SECTION 3.0907. CONFIRMATION AND INITIAL DIRECTORS ELECTION. 132-6 (a) The temporary board of directors shall call and hold an 132-7 election to confirm establishment of the district and to elect 132-8 initial directors. 132-9 (b) At the confirmation and initial directors election, the 132-10 temporary board of directors shall have placed on the ballot the 132-11 name of any candidate filing for an initial director position and 132-12 blank spaces to write in the names of other persons. A temporary 132-13 director who is qualified to be a candidate under Sections 3.0905 132-14 and 3.0906 of this part may file for an initial director position. 132-15 (c) Section 41.001(a), Election Code, does not apply to a 132-16 confirmation and initial directors election held as provided by 132-17 this section. 132-18 (d) Except as provided by this section, a confirmation and 132-19 initial directors election must be conducted as provided by 132-20 Sections 36.017(b)-(h), Water Code, and the Election Code. 132-21 SECTION 3.0908. ELECTION OF DIRECTORS. (a) On the first 132-22 Saturday in May of the first even-numbered year after the year in 132-23 which the district is authorized to be created at a confirmation 132-24 election, an election shall be held in the district for the 132-25 election of three directors to serve four-year terms and two 132-26 directors to serve two-year terms. 133-1 (b) On the first Saturday in May of each subsequent second 133-2 year following the election, the appropriate number of directors 133-3 shall be elected. 133-4 SECTION 3.0909. EXPIRATION. If the creation of the district 133-5 is not confirmed at a confirmation election held under Section 133-6 3.0907 of this part before September 1, 2003, the district is 133-7 dissolved and this part expires on that date. 133-8 PART 10. SOUTHEAST TRINITY GROUNDWATER CONSERVATION DISTRICT 133-9 SECTION 3.1001. PURPOSE. The purpose of this part is to 133-10 ratify the Southeast Trinity Groundwater Conservation District, a 133-11 locally controlled groundwater district, to protect, recharge, and 133-12 prevent the waste of groundwater and to control subsidence of water 133-13 from the groundwater reservoirs. 133-14 SECTION 3.1002. RATIFICATION OF CREATION. The creation of 133-15 the Southeast Trinity Groundwater Conservation District by Chapter 133-16 1331, Acts of the 76th Legislature, Regular Session, 1999, is 133-17 ratified as required by Section 15(a) of that Act, subject to a 133-18 confirmation election under Section 3.1008 of this part. 133-19 SECTION 3.1003. DEFINITIONS. In this part: 133-20 (1) "Board" means the board of directors of the 133-21 district. 133-22 (2) "Commission" means the Texas Natural Resource 133-23 Conservation Commission. 133-24 (3) "District" means the Southeast Trinity Groundwater 133-25 Conservation District. 133-26 SECTION 3.1004. BOUNDARIES. The boundaries of the district 134-1 are as follows: 134-2 BEGINNING at the point of intersection of the Bexar County - 134-3 Comal County - Kendall County line: 134-4 THENCE following the meanders of the Cibolo Creek, the Bexar 134-5 County - Comal County line in an Easterly direction to the point of 134-6 intersection with latitude 29 40': 134-7 THENCE along 29 40' in a Southeasterly direction to the 134-8 point of intersection with Farm to Market Road 3009: 134-9 THENCE with the centerline of Farm to Market Road 3009 in a 134-10 Southerly direction to the point of intersection with the 134-11 centerline of Schoenthal Road: 134-12 THENCE with the centerline of Schoenthal Road in a 134-13 Northeasterly direction to the point of intersection with the 134-14 centerline of Farm to Market Road 1863: 134-15 THENCE with the centerline of Farm to Market Road 1863 in an 134-16 Easterly direction to the point of intersection with the centerline 134-17 of Mission Valley Road: 134-18 THENCE with the centerline of Mission Valley Road in a 134-19 Northeasterly direction to the point of intersection with the 134-20 centerline of State Highway 46; 134-21 THENCE with the centerline of State Highway 46 in a 134-22 Northwesterly direction to the point of intersection with the 134-23 centerline of Hueco Springs Loop Road: 134-24 THENCE with the centerline of Hueco Springs Loop Road in a 134-25 Northeasterly then Easterly direction to the point of intersection 134-26 with the centerline of River Road: 135-1 THENCE with the centerline of River Road in a Northeasterly 135-2 direction to the point of intersection with the Guadalupe River at 135-3 the First Crossing: 135-4 THENCE following the meanders of the Guadalupe River in a 135-5 Northerly direction to the point of intersection of the centerlines 135-6 of the Guadalupe River and Deep Creek: 135-7 (Note: the next four paragraphs coincide with the Southern 135-8 boundary of Comal County Voters Precinct 18) 135-9 THENCE along the meanders of Deep Creek in a Northeasterly 135-10 direction to the point of intersection of the centerline of Deep 135-11 Creek and the South line of the G. F. Lawrence Survey No. 33, 135-12 Abstract No. 358: 135-13 THENCE with the South line of the G. F. Lawrence Survey No. 135-14 33, Abstract No. 358 in a Northeasterly, Southeasterly, and 135-15 Northeasterly direction to the point of intersection of the South 135-16 centerline of Farm to Market Road 306 being at approximately 135-17 Engineers Station 397+98.3: 135-18 THENCE with the centerline of Farm to Market Road 306 in a 135-19 Southeasterly direction to the point of intersection of the 135-20 centerlines of Farm to Market Road 306 and the William Pfeuffer 135-21 private ranch road: 135-22 THENCE with the approximate bearing N 69 E and approximate 135-23 distance 5,000 feet to an angle point in the Comal County - Hays 135-24 County Line: 135-25 THENCE with the Comal County - Hays County line in a 135-26 Northwesterly direction to the point of intersection of the Comal 136-1 County - Hays County line with the Comal County - Blanco County 136-2 line: 136-3 THENCE with the Comal County - Blanco County line in a 136-4 Southwesterly direction to the point of intersection of the Comal 136-5 County - Blanco County - Kendall County line, continuing with the 136-6 Comal County - Kendall County line in a Southwesterly direction to 136-7 point of intersection of the Kendall County - Comal County - Bexar 136-8 County line being the Point of Beginning. 136-9 SECTION 3.1005. FINDINGS RELATIVE TO BOUNDARIES. The 136-10 legislature finds that the boundaries and field notes of the 136-11 district form a closure. A mistake in the field notes or in 136-12 copying the field notes in the legislative process does not affect 136-13 the organization, existence, or validity of the district, the right 136-14 of the district to levy and collect taxes, or the legality or 136-15 operation of the district or its governing body. 136-16 SECTION 3.1006. AUTHORITY OF DISTRICT. (a) Except as 136-17 provided by this section or otherwise by this part, the district 136-18 has the same permitting and general management powers as those 136-19 granted under Chapter 36, Water Code. 136-20 (b) The district has no regulatory jurisdiction over the 136-21 Edwards Aquifer or any surface water supply. 136-22 (c) The board by rule may impose reasonable fees, including 136-23 fees for groundwater transported out of the district, on each 136-24 groundwater well in the district that is not exempt from regulation 136-25 by the district, based on the amount of water withdrawn from the 136-26 well. The fees may be assessed annually, based on the size of 137-1 column pipe used in the wells, pump capacity, or actual, 137-2 authorized, or anticipated pumpage, to pay the maintenance and 137-3 operating expenses of the district's regulation of groundwater. 137-4 (d) Section 36.205(c), Water Code, does not apply to the 137-5 district. 137-6 (e) The district may assess an ad valorem property tax not 137-7 to exceed seven cents per $100 valuation for administrative, 137-8 operation, and maintenance expenses if approved by a majority of 137-9 the qualified voters voting in an election authorizing the tax. 137-10 (f) Any district conservation fee paid by a retail public 137-11 utility to the district shall be: 137-12 (1) collected by the retail public utility directly as 137-13 a regulatory fee from the customers of the utility and paid to the 137-14 district; and 137-15 (2) shown as a separate line item on the customer's 137-16 bill. 137-17 (g) Fees may not be assessed for groundwater withdrawn from 137-18 the Edwards Aquifer. 137-19 (h) The district shall determine which classes of wells are 137-20 exempt from permitting requirements. 137-21 (i) The district may not require a permit for: 137-22 (1) the drilling of or producing from a well either 137-23 drilled, completed, or equipped so that it is capable of producing 137-24 less than 10,000 gallons of water per day; or 137-25 (2) the drilling of or alteration of the size of a 137-26 well or to restrict the production of a well if the water produced 138-1 or to be produced from the well is or will be used to supply the 138-2 domestic needs of five or fewer households in which a person who is 138-3 a member of each household is either the owner of the well, a 138-4 person related to the owner or to a member of the owner's household 138-5 within the second degree by consanguinity, or an employee of the 138-6 owner. 138-7 (j) The district may construct according to, implement, and 138-8 maintain best management practices in the district and may engage 138-9 in and promote acceptance of best management practices through 138-10 education efforts sponsored by the district for the purposes of 138-11 water quality and water availability practices such as brush 138-12 management, recharge enhancement, water and silt detention and 138-13 retention structures, plugging of abandoned wells, and other 138-14 treatment measures for the conservation of groundwater resources. 138-15 SECTION 3.1007. BOARD OF DIRECTORS. (a) The district is 138-16 governed by a board of five directors. 138-17 (b) Temporary directors have been appointed by Comal County 138-18 Commissioners Court and shall serve until initial directors are 138-19 elected under Section 3.1008 of this part. 138-20 (c) The temporary directors are: 138-21 (1) Cal Perrine; 138-22 (2) Ernest T. Lee; 138-23 (3) Jill Sondeen; 138-24 (4) Larry Hull; and 138-25 (5) Stovy Bowlin. 138-26 (d) Initial directors shall be elected at a confirmation 139-1 election and serve until permanent directors are elected under 139-2 Section 3.1009 of this part. 139-3 (e) Permanent directors serve staggered four-year terms. 139-4 (f) The directors shall be elected from four precincts, and 139-5 one director will represent the district at large. No more than 139-6 two precincts may be in a single municipality. 139-7 (g) A member of the board must reside in and be a registered 139-8 voter in the precinct from which the person is elected or appointed 139-9 if representing a precinct or must reside and be registered to vote 139-10 in the district if representing the district at large. 139-11 (h) Directors may serve consecutive terms. 139-12 (i) In an election for board members, a write-in vote may 139-13 not be counted unless the name written in appears on the list of 139-14 write-in candidates. A declaration of write-in candidacy must be 139-15 filed not later than 5 p.m. of the 45th day before election day. 139-16 (j) Vacancies in the office of director are filled by 139-17 appointment of the board. If the vacant office is not scheduled 139-18 for election within the next two years at the time of the 139-19 appointment, the board shall order an election for the unexpired 139-20 term to be held as part of the next regularly scheduled directors 139-21 election. The appointed director's term ends on qualification of 139-22 the director elected at that election. 139-23 (k) The district may not issue bonds before September 1, 139-24 2004. 139-25 SECTION 3.1008. CONFIRMATION ELECTION AND ELECTION OF 139-26 INITIAL DIRECTORS. (a) As soon as practicable after September 1, 140-1 2001, the temporary board of directors may set the date for, call, 140-2 and hold an election: 140-3 (1) to confirm establishment of the district; 140-4 (2) to elect five initial directors; and 140-5 (3) to authorize the district to impose a tax. 140-6 (b) The election may be held on the first authorized 140-7 election date after the United States Department of Justice has 140-8 precleared this part. The district shall contract with the county 140-9 clerk of Comal County to conduct the election. 140-10 (c) The elected initial directors shall draw lots to 140-11 determine their terms so that: 140-12 (1) two of the initial directors serve two-year terms 140-13 that expire on the uniform election date in November of the second 140-14 year after the date the initial directors were elected; and 140-15 (2) the remaining three initial directors serve 140-16 four-year terms that expire on the uniform election date in 140-17 November of the fourth year after the year in which the initial 140-18 directors were elected. 140-19 (d) Section 41.001(a), Election Code, does not apply to a 140-20 confirmation and directors election held as provided by this 140-21 section. 140-22 (e) Except as provided by this section, a confirmation and 140-23 directors election must be conducted as provided by Sections 140-24 36.017(b)-(h), Water Code, and the Election Code. 140-25 (f) The Comal County Commissioners Court shall pay the 140-26 expenses of conducting the confirmation and initial directors 141-1 election, subject to reimbursement from the district if the 141-2 establishment of the district is confirmed or from available 141-3 revenues, including funds allocated under Section 36.160, Water 141-4 Code, if the establishment of the district is defeated. 141-5 (g) If the district is defeated, the temporary directors may 141-6 call and hold subsequent elections to confirm establishment of the 141-7 district. A subsequent election may not be held earlier than the 141-8 first anniversary of the date on which the previous election was 141-9 held. If the district has not been confirmed at an election held 141-10 under this section before the fourth anniversary of the effective 141-11 date of this part, the district is dissolved on that date, except 141-12 that any debts incurred shall be paid and the organization of the 141-13 district shall be maintained until all debts are paid. 141-14 SECTION 3.1009. ELECTION OF PERMANENT DIRECTORS. (a) On 141-15 the uniform election date in November of the second year after the 141-16 year in which initial directors are elected, an election shall be 141-17 held in the district to elect two permanent directors for the 141-18 positions of the two initial directors serving two-year terms. 141-19 (b) On the uniform election date in November of each 141-20 subsequent second year following the election held under Subsection 141-21 (a) of this section, an election shall be held to elect the 141-22 appropriate number of permanent directors to the board. 141-23 SECTION 3.1010. COORDINATION WITH OTHER DISTRICTS. The 141-24 district may coordinate activities with other groundwater districts 141-25 that regulate the Trinity Aquifer for the purposes of conjunctively 141-26 managing the common resource. 142-1 SECTION 3.1011. MODIFICATION OF DISTRICT. The district may 142-2 be modified only under Subchapter J, Chapter 36, Water Code, and by 142-3 subsequent acts of the legislature. 142-4 SECTION 3.1012. STATUTORY INTERPRETATION. Except as 142-5 otherwise provided by this part, if there is a conflict between 142-6 this part and Chapter 36, Water Code, or Chapter 1331, Acts of the 142-7 76th Legislature, Regular Session, 1999, this part controls. 142-8 PART 11. TEXANA GROUNDWATER CONSERVATION DISTRICT 142-9 SECTION 3.1101. RATIFICATION OF CREATION. The creation of 142-10 the Texana Groundwater Conservation District in Jackson County by 142-11 Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999, 142-12 is ratified as required by Section 15(a) of that chapter, subject 142-13 to approval at a confirmation election under Section 3.1107 of this 142-14 part. 142-15 SECTION 3.1102. DEFINITION. In this part, "district" means 142-16 the Texana Groundwater Conservation District. 142-17 SECTION 3.1103. BOUNDARIES. The boundaries of the district 142-18 are coextensive with the boundaries of Jackson County. 142-19 SECTION 3.1104. GENERAL POWERS. The district has all of the 142-20 rights, powers, privileges, authority, functions, and duties 142-21 provided by the general law of the state, including Chapter 36, 142-22 Water Code, applicable to groundwater conservation districts 142-23 created under Section 59, Article XVI, Texas Constitution. This 142-24 part prevails over any provision of general law, including Chapter 142-25 36, Water Code, or Chapter 1331, Acts of the 76th Legislature, 142-26 Regular Session, 1999, that is in conflict or inconsistent with 143-1 this part. 143-2 SECTION 3.1105. BOARD OF DIRECTORS. (a) The district is 143-3 governed by a board of seven directors. 143-4 (b) Temporary directors serve until initial directors are 143-5 elected under Section 3.1107 of this part. 143-6 (c) Initial directors serve until permanent directors are 143-7 elected under Section 3.1108 of this part. 143-8 (d) Permanent directors serve staggered four-year terms. 143-9 (e) Each director must qualify to serve as director in the 143-10 manner provided by Section 36.055, Water Code. 143-11 (f) A director serves until the director's successor has 143-12 qualified. 143-13 (g) If there is a vacancy on the board, the remaining 143-14 directors shall appoint a director to serve the remainder of the 143-15 term. 143-16 (h) A director may not receive a salary or other 143-17 compensation for service as a director but may be reimbursed for 143-18 actual expenses of attending meetings at the rate in effect for 143-19 employees of Jackson County. 143-20 SECTION 3.1106. METHOD OF ELECTING DIRECTORS: COMMISSIONERS 143-21 PRECINCTS. (a) The directors of the district shall be elected 143-22 according to the commissioners precinct method as provided by this 143-23 section. 143-24 (b) Three directors shall be elected by the qualified voters 143-25 of the entire district, and one director shall be elected from each 143-26 county commissioners precinct by the qualified voters of that 144-1 precinct. 144-2 (c) To be qualified to be a candidate for or to serve as a 144-3 director at large, a person must be a registered voter in the 144-4 district. To be a candidate for or to serve as director from a 144-5 county commissioners precinct, a person must be a registered voter 144-6 of that precinct. 144-7 (d) A person shall indicate on the application for a place 144-8 on the ballot: 144-9 (1) the precinct that the person seeks to represent; 144-10 or 144-11 (2) that the person seeks to represent the district at 144-12 large. 144-13 (e) When the boundaries of the commissioners precincts are 144-14 changed, each director in office on the effective date of the 144-15 change or elected to a term of office beginning on or after the 144-16 effective date of the change serves in the precinct to which the 144-17 director was elected for the entire term to which the director was 144-18 elected, even though the change in boundaries places the person's 144-19 residence outside the precinct for which the person was elected. 144-20 SECTION 3.1107. CONFIRMATION AND INITIAL DIRECTORS ELECTION. 144-21 (a) The temporary board of directors shall call and hold an 144-22 election to confirm establishment of the district and to elect 144-23 initial directors. 144-24 (b) At the confirmation and initial directors election, the 144-25 temporary board of directors shall have placed on the ballot the 144-26 name of any candidate filing for an initial director position and 145-1 blank spaces to write in the names of other persons. A temporary 145-2 director who is qualified to be a candidate under Sections 3.1105 145-3 and 3.1106 of this part may file for an initial director position. 145-4 (c) Section 41.001(a), Election Code, does not apply to a 145-5 confirmation and initial directors election held as provided by 145-6 this section. 145-7 (d) Except as provided by this section, a confirmation and 145-8 initial directors election must be conducted as provided by 145-9 Sections 36.017(b)-(h), Water Code, and the Election Code. 145-10 (e) If the majority of the votes cast at an election held 145-11 under this section is against the confirmation of the district, the 145-12 temporary directors may not call another election under this 145-13 section before the first anniversary of that election. 145-14 SECTION 3.1108. ELECTION OF DIRECTORS. (a) On the first 145-15 Saturday in May of the first even-numbered year after the year in 145-16 which the district is authorized to be created at a confirmation 145-17 election, an election shall be held in the district for the 145-18 election of two directors at large and two directors representing 145-19 precincts to serve four-year terms and one director at large and 145-20 two directors representing precincts to serve two-year terms. 145-21 (b) On the first Saturday in May of each subsequent second 145-22 year following the election, the appropriate number of directors 145-23 shall be elected. 145-24 SECTION 3.1109. LIMITATION ON TAXATION. The district may 145-25 not levy or collect an ad valorem tax at a rate that exceeds two 145-26 cents on each $100 valuation of taxable property in the district. 146-1 SECTION 3.1110. CONTRACTS WITH GOVERNMENT ENTITIES. 146-2 (a) The district may contract with other government entities. 146-3 (b) The district may contract with other governmental 146-4 entities, including river authorities located in the district, for 146-5 the performance of any or all district functions. A river 146-6 authority with which the district contracts under this section may 146-7 perform district functions as provided by the contract. 146-8 PART 12. TRI-COUNTY GROUNDWATER CONSERVATION DISTRICT 146-9 SECTION 3.1201. RATIFICATION OF CREATION. The creation of 146-10 the Tri-County Groundwater Conservation District in Foard, 146-11 Hardeman, and Wilbarger counties by Chapter 1331, Acts of the 76th 146-12 Legislature, Regular Session, 1999, is ratified as required by 146-13 Section 15(a) of that chapter, subject to approval at a 146-14 confirmation election under Section 3.1207 of this part. 146-15 SECTION 3.1202. DEFINITION. In this part, "district" means 146-16 the Tri-County Groundwater Conservation District. 146-17 SECTION 3.1203. BOUNDARIES. The boundaries of the district 146-18 are coextensive with the boundaries of Foard, Hardeman, and 146-19 Wilbarger counties. 146-20 SECTION 3.1204. GENERAL POWERS. The district has all of the 146-21 rights, powers, privileges, authority, functions, and duties 146-22 provided by the general law of the state, including Chapter 36, 146-23 Water Code, applicable to groundwater conservation districts 146-24 created under Section 59, Article XVI, Texas Constitution. This 146-25 part prevails over any provision of general law, including Chapter 146-26 36, Water Code, or Chapter 1331, Acts of the 76th Legislature, 147-1 Regular Session, 1999, that is in conflict or inconsistent with 147-2 this part. 147-3 SECTION 3.1205. BOARD OF DIRECTORS. (a) The district is 147-4 governed by a board of six directors. Two directors are appointed 147-5 by the commissioners court of each county in the district. 147-6 (b) Each director must qualify to serve as director in the 147-7 manner provided by Section 36.055, Water Code. 147-8 (c) Directors other than initial directors serve staggered 147-9 four-year terms. 147-10 (d) A director serves until the director's successor has 147-11 qualified. 147-12 (e) If there is a vacancy on the board, the appropriate 147-13 commissioners court shall appoint a director to serve the remainder 147-14 of the term. 147-15 (f) The appropriate commissioners court shall appoint a 147-16 director to succeed a director on or before the date the director's 147-17 term expires. 147-18 (g) A director may not receive a salary or other 147-19 compensation for service as a director but may be reimbursed for 147-20 actual expenses of attending meetings. 147-21 SECTION 3.1206. APPOINTMENT AND TERMS OF INITIAL DIRECTORS. 147-22 (a) As soon as practicable after September 1, 2001, the 147-23 commissioners courts of Foard, Hardeman, and Wilbarger counties 147-24 shall each appoint two initial directors. 147-25 (b) The initial directors serve terms as follows: 147-26 (1) the two initial directors appointed by the Foard 148-1 County Commissioners Court serve terms expiring February 1, 2002; 148-2 (2) the two initial directors appointed by the 148-3 Hardeman County Commissioners Court serve terms expiring February 148-4 1, 2004; and 148-5 (3) the two initial directors appointed by the 148-6 Wilbarger County Commissioners Court serve terms expiring February 148-7 1, 2006. 148-8 SECTION 3.1207. CONFIRMATION ELECTION. (a) The board of 148-9 directors shall call and hold an election to confirm the 148-10 establishment of the district. 148-11 (b) Section 41.001(a), Election Code, does not apply to a 148-12 confirmation election held as provided by this section. 148-13 (c) Except as provided by this section, a confirmation 148-14 election must be conducted as provided by Sections 36.017(b)- (h), 148-15 Water Code, and the Election Code. 148-16 SECTION 3.1208. TAXING AUTHORITY. The district may levy and 148-17 collect an ad valorem tax in the district at a rate not to exceed 148-18 one cent on each $100 of assessed valuation. 148-19 SECTION 3.1209. EXPIRATION. If the creation of the district 148-20 is not confirmed at a confirmation election held under Section 148-21 3.1207 of this part before September 1, 2003, the district is 148-22 dissolved and this part expires on that date. 148-23 PART 13. BRAZOS VALLEY GROUNDWATER CONSERVATION DISTRICT 148-24 SECTION 3.1301. RATIFICATION OF CREATION. The creation by 148-25 Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999, 148-26 of the Brazos Valley Groundwater Conservation District in Robertson 149-1 and Brazos counties is ratified as required by Section 15(a) of 149-2 that Act, subject to approval at a confirmation election under 149-3 Section 3.1312 of this part. 149-4 SECTION 3.1302. DEFINITION. In this part, "district" means 149-5 the Brazos Valley Groundwater Conservation District. 149-6 SECTION 3.1303. BOUNDARIES. The boundaries of the district 149-7 are coextensive with the boundaries of Robertson and Brazos 149-8 counties, Texas. 149-9 SECTION 3.1304. GENERAL POWERS. (a) Except as otherwise 149-10 provided by this part, the district has all of the rights, powers, 149-11 privileges, authority, functions, and duties provided by the 149-12 general law of this state, including Chapter 36, Water Code, 149-13 applicable to groundwater conservation districts created under 149-14 Section 59, Article XVI, Texas Constitution. This part prevails 149-15 over any provision of general law that is in conflict or 149-16 inconsistent with this part, including any provision of Chapter 36, 149-17 Water Code, or Chapter 1331, Acts of the 76th Legislature, Regular 149-18 Session, 1999. 149-19 (b) The district does not have the authority granted by the 149-20 following provisions of Chapter 36, Water Code: 149-21 (1) Section 36.105, relating to eminent domain; and 149-22 (2) Sections 36.020 and 36.201-36.204, relating to 149-23 taxes. 149-24 SECTION 3.1305. BONDS. The district may issue bonds and 149-25 notes under Sections 36.171-36.181, Water Code, not to exceed 149-26 $500,000 of total indebtedness at any time. 150-1 SECTION 3.1306. FEES. (a) The board of directors of the 150-2 district by rule may impose reasonable fees on each well for which 150-3 a permit is issued by the district and which is not exempt from 150-4 regulation by the district. A fee may be based on the size of 150-5 column pipe used by the well or on the actual, authorized, or 150-6 anticipated amount of water to be withdrawn from the well. 150-7 (b) The initial fee shall be based on the amount of water to 150-8 be withdrawn from the well. The initial fee: 150-9 (1) may not exceed: 150-10 (A) $0.25 per acre-foot for water used for 150-11 irrigating agricultural crops or operating existing steam electric 150-12 stations; or 150-13 (B) $0.0425 per thousand gallons for water used 150-14 for any other purpose; and 150-15 (2) may be increased at a cumulative rate not to 150-16 exceed three percent per year. 150-17 (c) In addition to the fee authorized under Subsection (b) 150-18 of this section, the district may impose a reasonable fee or 150-19 surcharge for an export fee using one of the following methods: 150-20 (1) a fee negotiated between the district and the 150-21 transporter; or 150-22 (2) a combined production and export fee not to exceed 150-23 17 cents per thousand gallons for water used. 150-24 SECTION 3.1307. GROUNDWATER WELLS UNDER JURISDICTION OF 150-25 RAILROAD COMMISSION. (a) Groundwater wells drilled or operated 150-26 within the district under permits issued by the Railroad Commission 151-1 of Texas are under the exclusive jurisdiction of the railroad 151-2 commission and are exempt from regulation by the district. 151-3 (b) Groundwater produced in an amount authorized by a 151-4 railroad commission permit may be used within or exported from the 151-5 district without obtaining a permit from the district. 151-6 (c) To the extent groundwater production exceeds railroad 151-7 commission authorization, the holder of the railroad commission 151-8 permit must apply to the district for appropriate permits for the 151-9 excess production and is subject to the applicable regulatory fees. 151-10 (d) Groundwater produced from wells under the jurisdiction 151-11 of the railroad commission is generally exempt from water district 151-12 fees. However, the district may impose either a pumping fee or an 151-13 export fee on groundwater produced from an otherwise exempt mine 151-14 well that is used for municipal purposes or by a public utility. 151-15 Any fee imposed by the district under this subsection may not 151-16 exceed the fee imposed on other groundwater producers in the 151-17 district. 151-18 SECTION 3.1308. REGIONAL COOPERATION. (a) To provide for 151-19 regional continuity, the district shall: 151-20 (1) participate in a regular annual coordination 151-21 meeting with other groundwater districts in its designated 151-22 management area and may hold coordination meetings at other times 151-23 as needed; 151-24 (2) coordinate the collection of data with other 151-25 groundwater districts in its designated management area in such a 151-26 way as to achieve relative uniformity of data type and quality; 152-1 (3) coordinate efforts to monitor water quality with 152-2 other groundwater districts in its designated management area, 152-3 local governments, and state agencies; 152-4 (4) provide groundwater level data to other 152-5 groundwater districts in its designated management area; 152-6 (5) investigate any groundwater and aquifer pollution 152-7 with the intention of locating its source; 152-8 (6) notify other groundwater districts in its 152-9 designated management area and all appropriate agencies of any 152-10 detected groundwater pollution; 152-11 (7) annually provide to other groundwater districts in 152-12 its designated management area an inventory of water wells and an 152-13 estimate of groundwater production within the district; and 152-14 (8) include other groundwater districts in its 152-15 designated management area on the mailing lists for district 152-16 newsletters, seminars, public education events, news articles, and 152-17 field days. 152-18 (b) The district shall prepare a comprehensive management 152-19 plan as required by Section 36.1071, Water Code, covering that 152-20 district's respective territory. On completion and certification 152-21 of the plan as required by Section 36.1072, Water Code, the 152-22 district shall forward a copy of the new or revised management plan 152-23 to the other districts in its designated management area. The 152-24 district shall consider the management plans individually and shall 152-25 compare them to other management plans in the designated management 152-26 area. 153-1 (1) The district shall, by resolution, call for joint 153-2 planning with the other districts in the designated management area 153-3 to review and coordinate the management plans and accomplishments 153-4 for the designated management area. In reviewing and coordinating 153-5 the management plans, the boards shall consider: 153-6 (A) the goals of each management plan and its 153-7 impact on planning throughout the management area; 153-8 (B) the groundwater management standards of each 153-9 district describing the desired condition of the groundwater source 153-10 over time as indicated by indices of quantity of water in the 153-11 source, quality of water produced from the source, springflows, or 153-12 subsidence of the land surface; 153-13 (C) the groundwater withdrawal rates adopted by 153-14 each district and the effectiveness of those rates in achieving the 153-15 groundwater management standard of the district; 153-16 (D) the effectiveness of the measures 153-17 established by each management plan for conserving and protecting 153-18 groundwater and preventing waste, and the effectiveness of these 153-19 measures in the management area generally; and 153-20 (E) any other matters that the boards consider 153-21 relevant to the protection and conservation of groundwater and the 153-22 prevention of waste in the management area. 153-23 (2) In the management plan the district may establish 153-24 and coordinate with the other districts within the designated 153-25 management area an annual total groundwater withdrawal limit and 153-26 equitable allocation as determined from an evaluation of the 154-1 overall scientific data of the groundwater resources in the region, 154-2 including the Texas Water Development Board's groundwater 154-3 availability model. The determination of sustainable groundwater 154-4 withdrawal shall be reviewed at least every five years. 154-5 (3) Each district participating in the joint planning 154-6 process initiated under this subsection shall ensure that the 154-7 groundwater management standards adopted by the district are 154-8 adequate to protect the groundwater within the area of each 154-9 district and are not incompatible with the groundwater management 154-10 standards adopted by the other districts in the management area. 154-11 (4) If a joint meeting of the boards of directors is 154-12 called, the meeting must be held in accordance with Chapter 551, 154-13 Government Code. Notice of the meeting shall be given in 154-14 accordance with the requirements for notice of district board of 154-15 directors meetings under that chapter. In addition, notice of the 154-16 meeting shall be published not later than the 30th day before the 154-17 date of the scheduled meeting in a newspaper with general 154-18 circulation in each county in the management area. 154-19 (5) A district in the management area may file with 154-20 good cause a petition with the Texas Natural Resource Conservation 154-21 Commission requesting an inquiry if the petitioner district adopted 154-22 a resolution calling for joint planning and the other district or 154-23 districts refused to join in the planning process or the process 154-24 failed to result in adequate planning, and the petition provides 154-25 evidence that: 154-26 (A) another district in the management area has 155-1 failed to adopt rules; 155-2 (B) the groundwater in the management area is 155-3 not adequately protected by the rules adopted by another district; 155-4 or 155-5 (C) the groundwater in the management area is 155-6 not adequately protected due to the failure of another district to 155-7 enforce substantial compliance with its rules. 155-8 (6) The district may contract to jointly conduct 155-9 studies or research, or to construct projects, under terms and 155-10 conditions that the districts consider beneficial with districts 155-11 located within the same management area or in adjacent management 155-12 areas. These joint efforts may include studies of groundwater 155-13 availability and quality, aquifer modeling, and the interaction of 155-14 groundwater and surface water; educational programs; the purchase 155-15 and sharing of equipment; and the implementation of projects to 155-16 make groundwater available, including aquifer recharge, brush 155-17 control, weather modification, desalination, regionalization, and 155-18 treatment or conveyance facilities. The districts may contract 155-19 under their existing authorizations including those of Chapter 791, 155-20 Government Code, if their contracting authority is not limited by 155-21 Sections 791.011(c)(2) and (d)(3) and Section 791.014, Government 155-22 Code. 155-23 (c) The district shall determine biennially, using the 155-24 overall available scientific data of groundwater resources in the 155-25 Central Carrizo-Wilcox area, whether pumping within the district or 155-26 an adjacent district is unreasonably affecting groundwater wells. 156-1 The district, in agreement with other districts within the 156-2 designated management area, may adopt mitigation measures in 156-3 response to such unreasonable adverse effects only if the measures 156-4 are based on a scientific determination made. 156-5 (d) The district may assist in the mediation between 156-6 landowners regarding the mitigation of the loss of existing 156-7 groundwater supply of exempt domestic and livestock users due to 156-8 the groundwater pumping of others in adjoining districts. 156-9 SECTION 3.1309. BOARD OF DIRECTORS. (a) The district is 156-10 governed by a board of eight directors. 156-11 (b) Initial directors serve until permanent directors are 156-12 appointed under Section 3.1310 of this part and qualified as 156-13 required by Subsection (d) of this section. 156-14 (c) Permanent directors serve four-year staggered terms. 156-15 (d) Each director must qualify to serve as a director in the 156-16 manner provided by Section 36.055, Water Code. 156-17 (e) A director serves until the director's successor has 156-18 qualified. 156-19 (f) A director may serve consecutive terms. 156-20 (g) If there is a vacancy on the board, the governing body 156-21 of the entity that appointed the director who vacated the office 156-22 shall appoint a director to serve the remainder of the term. 156-23 (h) Directors are not entitled to receive compensation for 156-24 serving as a director but may be reimbursed for actual, reasonable 156-25 expenses incurred in the discharge of official duties. 156-26 (i) A majority vote of a quorum is required for board 157-1 action. If there is a tie vote, the proposed action fails. 157-2 SECTION 3.1310. APPOINTMENT OF DIRECTORS. (a) The 157-3 Robertson County Commissioners Court shall appoint four directors, 157-4 of whom: 157-5 (1) one must represent municipal interests in the 157-6 county; 157-7 (2) one must represent agricultural interests in the 157-8 county; 157-9 (3) one must represent rural water suppliers' 157-10 interests in the county; and 157-11 (4) one must represent industrial interests in the 157-12 county. 157-13 (b) The Brazos County Commissioners Court shall appoint two 157-14 directors, of whom: 157-15 (1) one must represent rural water suppliers' 157-16 interests in the county; and 157-17 (2) one must represent agricultural interests in the 157-18 county. 157-19 (c) The governing body of the City of Bryan, with the 157-20 approval of the Brazos County Commissioners Court, shall appoint 157-21 one director. 157-22 (d) The governing body of the City of College Station, with 157-23 the approval of the Brazos County Commissioners Court, shall 157-24 appoint one director. 157-25 (e) Each of the governing bodies authorized by this section 157-26 to make an appointment shall appoint the appropriate number of 158-1 initial directors as soon as practicable following the effective 158-2 date of this Act, but not later than the 45th day after the 158-3 effective date of this Act. 158-4 (f) The four initial directors from Robertson County shall 158-5 draw lots to determine their terms. Two initial directors from 158-6 Robertson County and the two initial directors from Brazos County 158-7 serve terms that expire on January 1 of the second year following 158-8 the confirmation of the district at an election held under Section 158-9 3.1312 of this part. The remaining four initial directors serve 158-10 terms that expire on January 1 of the fourth year following the 158-11 confirmation of the district. On January 1 of the second year 158-12 following confirmation of the district and every two years after 158-13 that date, the appropriate governing body shall appoint the 158-14 appropriate number of permanent directors. 158-15 SECTION 3.1311. ORGANIZATIONAL MEETING. As soon as 158-16 practicable after all the initial directors have been appointed and 158-17 have qualified as provided in this part, a majority of the 158-18 directors shall convene the organizational meeting of the district 158-19 at a location within the district agreeable to a majority of the 158-20 directors. If no location can be agreed on, the organizational 158-21 meeting of the directors shall be at the Robertson County 158-22 Courthouse. 158-23 SECTION 3.1312. CONFIRMATION ELECTION. (a) The initial 158-24 board of directors shall call and hold an election on the same date 158-25 in each county within the district to confirm the creation of the 158-26 district. 159-1 (b) Except as provided by this section, a confirmation 159-2 election must be conducted as provided by Sections 36.017, 36.018, 159-3 and 36.019, Water Code, and Section 41.001, Election Code. 159-4 (c) Confirmation of the district requires a vote in favor of 159-5 confirmation by a majority of the qualified voters voting in the 159-6 election. 159-7 (d) The district is dissolved and this part expires on 159-8 August 31, 2003, unless the voters confirm the creation of the 159-9 district before that date. 159-10 PART 14. POST OAK SAVANNAH GROUNDWATER CONSERVATION DISTRICT 159-11 SECTION 3.1401. CREATION. (a) A groundwater conservation 159-12 district, to be known as the Post Oak Savannah Groundwater 159-13 Conservation District, is created in Milam and Burleson counties, 159-14 subject to approval at a confirmation election under Section 3.1412 159-15 of this part. The district is a governmental agency and a body 159-16 politic and corporate. 159-17 (b) The district is created under and is essential to 159-18 accomplish the purposes of Section 59, Article XVI, Texas 159-19 Constitution. 159-20 SECTION 3.1402. DEFINITION. In this part, "district" means 159-21 the Post Oak Savannah Groundwater Conservation District. 159-22 SECTION 3.1403. BOUNDARIES. The boundaries of the district 159-23 are coextensive with the boundaries of Milam and Burleson counties. 159-24 SECTION 3.1404. FINDING OF BENEFIT. All of the land and 159-25 other property included within the boundaries of the district will 159-26 be benefited by the works and projects that are to be accomplished 160-1 by the district under powers conferred by Section 59, Article XVI, 160-2 Texas Constitution. The district is created to serve a public use 160-3 and benefit. 160-4 SECTION 3.1405. GENERAL POWERS. (a) Except as otherwise 160-5 provided by this part, the district has all of the rights, powers, 160-6 privileges, authority, functions, and duties provided by the 160-7 general law of this state, including Chapter 36, Water Code, 160-8 applicable to groundwater conservation districts created under 160-9 Section 59, Article XVI, Texas Constitution. This part prevails 160-10 over any provision of general law that is in conflict or 160-11 inconsistent with this part, including any provision of Chapter 36, 160-12 Water Code. 160-13 (b) The district does not have the authority granted by the 160-14 following provisions of Chapter 36, Water Code: 160-15 (1) Section 36.105, relating to eminent domain; and 160-16 (2) Sections 36.020 and 36.201-36.204, relating to 160-17 taxes. 160-18 SECTION 3.1406. FEES. (a) The board of directors of the 160-19 district by rule may impose reasonable fees on each well for which 160-20 a permit is issued by the district and which is not exempt from 160-21 regulation by the district. A fee may be based on the size of 160-22 column pipe used by the well or on the actual, authorized, or 160-23 anticipated amount of water to be withdrawn from the well. 160-24 (b) Fees may not exceed: 160-25 (1) one dollar per acre-foot for water used for 160-26 irrigating agricultural crops; or 161-1 (2) 17 cents per thousand gallons for water used for 161-2 any other purpose. 161-3 (c) In addition to the fee authorized under Subsection (b) 161-4 of this section, the district may impose a reasonable fee or 161-5 surcharge for an export fee using one of the following methods: 161-6 (1) a fee negotiated between the district and the 161-7 transporter; or 161-8 (2) a combined production and export fee not to exceed 161-9 17 cents per thousand gallons for water used. 161-10 SECTION 3.1407. GROUNDWATER WELLS UNDER JURISDICTION OF 161-11 RAILROAD COMMISSION. (a) Groundwater wells drilled or operated 161-12 within the district under permits issued by the Railroad Commission 161-13 of Texas are under the exclusive jurisdiction of the railroad 161-14 commission and are exempt from regulation by the district. 161-15 (b) Groundwater produced in an amount authorized by a 161-16 Railroad Commission of Texas permit may be used within or exported 161-17 from the district without obtaining a permit from the district. 161-18 (c) To the extent groundwater production exceeds Railroad 161-19 Commission of Texas authorization, the holder of the railroad 161-20 commission permit must apply to the district for appropriate 161-21 permits for the excess production and is subject to the applicable 161-22 regulatory fees. 161-23 (d) Groundwater produced from wells under the jurisdiction 161-24 of the Railroad Commission of Texas is generally exempt from water 161-25 district fees. However, the district may impose either a pumping 161-26 fee or an export fee on groundwater produced from an otherwise 162-1 exempt mine well that is used for municipal purposes or by a public 162-2 utility. Any fee imposed by the district under this subsection may 162-3 not exceed the fee imposed on other groundwater producers in the 162-4 district. 162-5 SECTION 3.1408. REGIONAL COOPERATION. (a) To provide for 162-6 regional continuity, the district shall: 162-7 (1) participate in a regular annual coordination 162-8 meeting with other groundwater districts in its designated 162-9 management area and may hold coordination meetings at other times 162-10 as needed; 162-11 (2) coordinate the collection of data with other 162-12 groundwater districts in its designated management area in such a 162-13 way as to achieve relative uniformity of data type and quality; 162-14 (3) coordinate efforts to monitor water quality with 162-15 other groundwater districts in its designated management area, 162-16 local governments, and state agencies; 162-17 (4) provide groundwater level data to other 162-18 groundwater districts in its designated management area; 162-19 (5) investigate any groundwater and aquifer pollution 162-20 with the intention of locating its source; 162-21 (6) notify other groundwater districts in its 162-22 designated management area and all appropriate agencies of any 162-23 detected groundwater pollution; 162-24 (7) annually provide to other groundwater districts in 162-25 its designated management area an inventory of water wells and an 162-26 estimate of groundwater production within the district; and 163-1 (8) include other groundwater districts in its 163-2 designated management area on the mailing lists for district 163-3 newsletters, seminars, public education events, news articles, and 163-4 field days. 163-5 (b) The district shall prepare a comprehensive management 163-6 plan as required by Section 36.1071, Water Code, covering that 163-7 district's respective territory. On completion and certification 163-8 of the plan as required by Section 36.1072, Water Code, the 163-9 district shall forward a copy of the new or revised management plan 163-10 to the other districts in its designated management area. The 163-11 district shall consider the management plans individually and shall 163-12 compare them to other management plans in the designated management 163-13 area. 163-14 (1) The district shall, by resolution, call for joint 163-15 planning with the other districts in the designated management area 163-16 to review and coordinate the management plans and accomplishments 163-17 for the designated management area. In reviewing and coordinating 163-18 the management plans, the boards shall consider: 163-19 (A) the goals of each management plan and its 163-20 impact on planning throughout the management area; 163-21 (B) the groundwater management standards of each 163-22 district describing the desired condition of the groundwater source 163-23 over time as indicated by indices of quantity of water in the 163-24 source, quality of water produced from the source, springflows, or 163-25 subsidence of the land surface; 163-26 (C) the groundwater withdrawal rates adopted by 164-1 each district and the effectiveness of those rates in achieving the 164-2 groundwater management standard of the district; 164-3 (D) the effectiveness of the measures 164-4 established by each management plan for conserving and protecting 164-5 groundwater and preventing waste, and the effectiveness of these 164-6 measures in the management area generally; and 164-7 (E) any other matters that the boards consider 164-8 relevant to the protection and conservation of groundwater and the 164-9 prevention of waste in the management area. 164-10 (2) In the management plan the district may establish 164-11 and coordinate with the other districts within the designated 164-12 management area an annual total groundwater withdrawal limit and 164-13 equitable allocation as determined from an evaluation of the 164-14 overall scientific data of the groundwater resources in the region, 164-15 including the Texas Water Development Board's groundwater 164-16 availability model. The determination of sustainable groundwater 164-17 withdrawal shall be reviewed at least every five years. 164-18 (3) Each district participating in the joint planning 164-19 process initiated under this subsection shall ensure that the 164-20 groundwater management standards adopted by the district are 164-21 adequate to protect the groundwater within the area of each 164-22 district and are not incompatible with the groundwater management 164-23 standards adopted by the other districts in the management area. 164-24 (4) If a joint meeting of the boards of directors is 164-25 called, the meeting must be held in accordance with Chapter 551, 164-26 Government Code. Notice of the meeting shall be given in 165-1 accordance with the requirements for notice of district board of 165-2 directors meetings under that chapter. In addition, notice of the 165-3 meeting shall be published not later than the 30th day before the 165-4 date of the scheduled meeting in a newspaper with general 165-5 circulation in each county in the management area. 165-6 (5) A district in the management area may file with 165-7 good cause a petition with the Texas Natural Resource Conservation 165-8 Commission requesting an inquiry if the petitioner district adopted 165-9 a resolution calling for joint planning and the other district or 165-10 districts refused to join in the planning process or the process 165-11 failed to result in adequate planning, and the petition provides 165-12 evidence that: 165-13 (A) another district in the management area has 165-14 failed to adopt rules; 165-15 (B) the groundwater in the management area is 165-16 not adequately protected by the rules adopted by another district; 165-17 or 165-18 (C) the groundwater in the management area is 165-19 not adequately protected due to the failure of another district to 165-20 enforce substantial compliance with its rules. 165-21 (6) The district may contract to jointly conduct 165-22 studies or research, or to construct projects, under terms and 165-23 conditions that the districts consider beneficial with districts 165-24 located within the same management area or in adjacent management 165-25 areas. These joint efforts may include studies of groundwater 165-26 availability and quality, aquifer modeling, and the interaction of 166-1 groundwater and surface water; educational programs; the purchase 166-2 and sharing of equipment; and the implementation of projects to 166-3 make groundwater available, including aquifer recharge, brush 166-4 control, weather modification, desalination, regionalization, and 166-5 treatment or conveyance facilities. The districts may contract 166-6 under their existing authorizations including those of Chapter 791, 166-7 Government Code, if their contracting authority is not limited by 166-8 Sections 791.011(c)(2) and (d)(3) and Section 791.014, Government 166-9 Code. 166-10 (c) The district shall determine biennially, using the 166-11 overall available scientific data of groundwater resources in the 166-12 Central Carrizo-Wilcox area, whether pumping within the district or 166-13 an adjacent district is unreasonably affecting groundwater wells. 166-14 The district, in agreement with other districts within the 166-15 designated management area, may adopt mitigation measures in 166-16 response to such unreasonable adverse effects only if the measures 166-17 are based on a scientific determination made. 166-18 (d) The district may assist in the mediation between 166-19 landowners regarding the mitigation of the loss of existing 166-20 groundwater supply of exempt domestic and livestock users due to 166-21 the groundwater pumping of others in adjoining districts. 166-22 SECTION 3.1409. BOARD OF DIRECTORS. (a) The district is 166-23 governed by a board of 10 directors. 166-24 (b) Initial directors serve until permanent directors are 166-25 appointed under Section 3.1410 of this part and qualified as 166-26 required by Subsection (d) of this section. 167-1 (c) Permanent directors serve four-year staggered terms. 167-2 (d) Each director must qualify to serve as a director in the 167-3 manner provided by Section 36.055, Water Code. 167-4 (e) A director serves until the director's successor has 167-5 qualified. 167-6 (f) A director may serve consecutive terms. 167-7 (g) If there is a vacancy on the board, the governing body 167-8 of the entity that appointed the director who vacated the office 167-9 shall appoint a director to serve the remainder of the term. 167-10 (h) Directors are not entitled to receive compensation for 167-11 serving as a director but may be reimbursed for actual, reasonable 167-12 expenses incurred in the discharge of official duties. 167-13 (i) A quorum exists when at least two-thirds of the board 167-14 members are present. A majority vote of a quorum is required for 167-15 board action. If there is a tie vote, the proposed action fails. 167-16 SECTION 3.1410. APPOINTMENT OF DIRECTORS. (a) The Milam 167-17 County Commissioners Court shall appoint five directors, of whom: 167-18 (1) one must represent municipal interests in the 167-19 county; 167-20 (2) one must represent agricultural interests in the 167-21 county; 167-22 (3) one must represent rural water suppliers' 167-23 interests in the county; 167-24 (4) one must represent industrial interests in the 167-25 county; and 167-26 (5) one must represent the interests of the county at 168-1 large. 168-2 (b) The Burleson County Commissioners Court shall appoint 168-3 five directors, of whom: 168-4 (1) one must represent municipal interests in the 168-5 county; 168-6 (2) one must represent agricultural interests in the 168-7 county; 168-8 (3) one must represent rural water suppliers' 168-9 interests in the county; 168-10 (4) one must represent industrial interests in the 168-11 county; and 168-12 (5) one must represent the interests of the county at 168-13 large. 168-14 (c) Each of the governing bodies authorized by this section 168-15 to make an appointment shall appoint the appropriate number of 168-16 initial directors as soon as practicable following the effective 168-17 date of this Act, but not later than the 45th day after the 168-18 effective date of this Act. 168-19 (d) The initial directors shall draw lots to determine their 168-20 terms. Two initial directors from Milam County and two initial 168-21 directors from Burleson County serve terms that expire on January 1 168-22 of the second year following the confirmation of the district at an 168-23 election held under Section 3.1412 of this part. The remaining six 168-24 initial directors serve terms that expire on January 1 of the 168-25 fourth year following the confirmation of the district. On January 168-26 1 of the second year following confirmation of the district and 169-1 every two years after that date, the appropriate commissioners 169-2 court shall appoint the appropriate number of permanent directors. 169-3 SECTION 3.1411. ORGANIZATIONAL MEETING. As soon as 169-4 practicable after all the initial directors have been appointed and 169-5 have qualified as provided in this part, a majority of the 169-6 directors shall convene the organizational meeting of the district 169-7 at a location within the district agreeable to a majority of the 169-8 directors. If no location can be agreed on, the organizational 169-9 meeting of the directors shall be at the Milam County Courthouse. 169-10 SECTION 3.1412. CONFIRMATION ELECTION. (a) The initial 169-11 board of directors shall call and hold an election on the same date 169-12 in each county within the district to confirm the creation of the 169-13 district. 169-14 (b) Except as provided by this section, a confirmation 169-15 election must be conducted as provided by Sections 36.017, 36.018, 169-16 and 36.019, Water Code, and Section 41.001, Election Code. 169-17 (c) If the majority of qualified voters in a county who vote 169-18 in the election vote to confirm the creation of the district, that 169-19 county is included in the district. 169-20 (d) The district is dissolved and this part expires on 169-21 August 31, 2003, unless the voters confirm the creation of the 169-22 district before that date. 169-23 PART 15. MID-EAST TEXAS GROUNDWATER CONSERVATION DISTRICT 169-24 SECTION 3.1501. CREATION. (a) A groundwater conservation 169-25 district, to be known as the Mid-East Texas Groundwater 169-26 Conservation District, is created in Leon, Madison, and Freestone 170-1 counties, subject to approval at a confirmation election under 170-2 Section 3.1512 of this part. The district is a governmental agency 170-3 and a body politic and corporate. 170-4 (b) The district is created under and is essential to 170-5 accomplish the purposes of Section 59, Article XVI, Texas 170-6 Constitution. 170-7 SECTION 3.1502. DEFINITION. In this part, "district" means 170-8 the Mid-East Texas Groundwater Conservation District. 170-9 SECTION 3.1503. BOUNDARIES. The boundaries of the district 170-10 are coextensive with the boundaries of Leon, Madison, and Freestone 170-11 counties. 170-12 SECTION 3.1504. FINDING OF BENEFIT. All of the land and 170-13 other property included within the boundaries of the district will 170-14 be benefited by the works and projects that are to be accomplished 170-15 by the district under powers conferred by Section 59, Article XVI, 170-16 Texas Constitution. The district is created to serve a public use 170-17 and benefit. 170-18 SECTION 3.1505. GENERAL POWERS. (a) Except as otherwise 170-19 provided by this part, the district has all of the rights, powers, 170-20 privileges, authority, functions, and duties provided by the 170-21 general law of this state, including Chapter 36, Water Code, 170-22 applicable to groundwater conservation districts created under 170-23 Section 59, Article XVI, Texas Constitution. This part prevails 170-24 over any provision of general law that is in conflict or 170-25 inconsistent with this part, including any provision of Chapter 36, 170-26 Water Code. 171-1 (b) The district does not have the authority granted by the 171-2 following provisions of Chapter 36, Water Code: 171-3 (1) Section 36.105, relating to eminent domain; and 171-4 (2) Sections 36.020 and 36.201-36.204, relating to 171-5 taxes. 171-6 SECTION 3.1506. FEES. (a) The board of directors of the 171-7 district by rule may impose reasonable fees on each well for which 171-8 a permit is issued by the district and which is not exempt from 171-9 regulation by the district. A fee may be based on the size of 171-10 column pipe used by the well or on the actual, authorized, or 171-11 anticipated amount of water to be withdrawn from the well. 171-12 (b) Fees may not exceed: 171-13 (1) one dollar per acre-foot for water used for 171-14 irrigating agricultural crops; or 171-15 (2) 17 cents per thousand gallons for water used for 171-16 any other purpose. 171-17 (c) In addition to the fee authorized under Subsection (b) 171-18 of this section, the district may impose a reasonable fee or 171-19 surcharge for an export fee using one of the following methods: 171-20 (1) a fee negotiated between the district and the 171-21 transporter; or 171-22 (2) a combined production and export fee not to exceed 171-23 17 cents per thousand gallons for water used. 171-24 SECTION 3.1507. GROUNDWATER WELLS UNDER JURISDICTION OF 171-25 RAILROAD COMMISSION. (a) Groundwater wells drilled or operated 171-26 within the district under permits issued by the Railroad Commission 172-1 of Texas are under the exclusive jurisdiction of the railroad 172-2 commission and are exempt from regulation by the district. 172-3 (b) Groundwater produced in an amount authorized by a 172-4 Railroad Commission of Texas permit may be used within or exported 172-5 from the district without obtaining a permit from the district. 172-6 (c) To the extent groundwater production exceeds Railroad 172-7 Commission of Texas authorization, the holder of the railroad 172-8 commission permit must apply to the district for appropriate 172-9 permits for the excess production and is subject to the applicable 172-10 regulatory fees. 172-11 (d) Groundwater produced from wells under the jurisdiction 172-12 of the Railroad Commission of Texas is generally exempt from water 172-13 district fees. However, the district may impose either a pumping 172-14 fee or an export fee on groundwater produced from an otherwise 172-15 exempt mine well that is used for municipal purposes or by a public 172-16 utility. Any fee imposed by the district under this subsection may 172-17 not exceed the fee imposed on other groundwater producers in the 172-18 district. 172-19 SECTION 3.1508. REGIONAL COOPERATION. (a) To provide for 172-20 regional continuity, the district shall: 172-21 (1) participate in a regular annual coordination 172-22 meeting with other groundwater districts in its designated 172-23 management area and may hold coordination meetings at other times 172-24 as needed; 172-25 (2) coordinate the collection of data with other 172-26 groundwater districts in its designated management area in such a 173-1 way as to achieve relative uniformity of data type and quality; 173-2 (3) coordinate efforts to monitor water quality with 173-3 other groundwater districts in its designated management area, 173-4 local governments, and state agencies; 173-5 (4) provide groundwater level data to other 173-6 groundwater districts in its designated management area; 173-7 (5) investigate any groundwater and aquifer pollution 173-8 with the intention of locating its source; 173-9 (6) notify other groundwater districts in its 173-10 designated management area and all appropriate agencies of any 173-11 detected groundwater pollution; 173-12 (7) annually provide to other groundwater districts in 173-13 its designated management area an inventory of water wells and an 173-14 estimate of groundwater production within the district; and 173-15 (8) include other groundwater districts in its 173-16 designated management area on the mailing lists for district 173-17 newsletters, seminars, public education events, news articles, and 173-18 field days. 173-19 (b) The district shall prepare a comprehensive management 173-20 plan as required by Section 36.1071, Water Code, covering that 173-21 district's respective territory. On completion and certification 173-22 of the plan as required by Section 36.1072, Water Code, the 173-23 district shall forward a copy of the new or revised management plan 173-24 to the other districts in its designated management area. The 173-25 district shall consider the management plans individually and shall 173-26 compare them to other management plans in the designated management 174-1 area. 174-2 (1) The district shall, by resolution, call for joint 174-3 planning with the other districts in the designated management area 174-4 to review and coordinate the management plans and accomplishments 174-5 for the designated management area. In reviewing and coordinating 174-6 the management plans, the boards shall consider: 174-7 (A) the goals of each management plan and its 174-8 impact on planning throughout the management area; 174-9 (B) the groundwater management standards of each 174-10 district describing the desired condition of the groundwater source 174-11 over time as indicated by indices of quantity of water in the 174-12 source, quality of water produced from the source, springflows, or 174-13 subsidence of the land surface; 174-14 (C) the groundwater withdrawal rates adopted by 174-15 each district and the effectiveness of those rates in achieving the 174-16 groundwater management standard of the district; 174-17 (D) the effectiveness of the measures 174-18 established by each management plan for conserving and protecting 174-19 groundwater and preventing waste, and the effectiveness of these 174-20 measures in the management area generally; and 174-21 (E) any other matters that the boards consider 174-22 relevant to the protection and conservation of groundwater and the 174-23 prevention of waste in the management area. 174-24 (2) In the management plan the district may establish 174-25 and coordinate with the other districts within the designated 174-26 management area an annual total groundwater withdrawal limit and 175-1 equitable allocation as determined from an evaluation of the 175-2 overall scientific data of the groundwater resources in the region, 175-3 including the Texas Water Development Board's groundwater 175-4 availability model. The determination of sustainable groundwater 175-5 withdrawal shall be reviewed at least every five years. 175-6 (3) Each district participating in the joint planning 175-7 process initiated under this subsection shall ensure that the 175-8 groundwater management standards adopted by the district are 175-9 adequate to protect the groundwater within the area of each 175-10 district and are not incompatible with the groundwater management 175-11 standards adopted by the other districts in the management area. 175-12 (4) If a joint meeting of the boards of directors is 175-13 called, the meeting must be held in accordance with Chapter 551, 175-14 Government Code. Notice of the meeting shall be given in 175-15 accordance with the requirements for notice of district board of 175-16 directors meetings under that chapter. In addition, notice of the 175-17 meeting shall be published not later than the 30th day before the 175-18 date of the scheduled meeting in a newspaper with general 175-19 circulation in each county in the management area. 175-20 (5) A district in the management area may file with 175-21 good cause a petition with the Texas Natural Resource Conservation 175-22 Commission requesting an inquiry if the petitioner district adopted 175-23 a resolution calling for joint planning and the other district or 175-24 districts refused to join in the planning process or the process 175-25 failed to result in adequate planning, and the petition provides 175-26 evidence that: 176-1 (A) another district in the management area has 176-2 failed to adopt rules; 176-3 (B) the groundwater in the management area is 176-4 not adequately protected by the rules adopted by another district; 176-5 or 176-6 (C) the groundwater in the management area is 176-7 not adequately protected due to the failure of another district to 176-8 enforce substantial compliance with its rules. 176-9 (6) The district may contract to jointly conduct 176-10 studies or research, or to construct projects, under terms and 176-11 conditions that the districts consider beneficial with districts 176-12 located within the same management area or in adjacent management 176-13 areas. These joint efforts may include studies of groundwater 176-14 availability and quality, aquifer modeling, and the interaction of 176-15 groundwater and surface water; educational programs; the purchase 176-16 and sharing of equipment; and the implementation of projects to 176-17 make groundwater available, including aquifer recharge, brush 176-18 control, weather modification, desalination, regionalization, and 176-19 treatment or conveyance facilities. The districts may contract 176-20 under their existing authorizations including those of Chapter 791, 176-21 Government Code, if their contracting authority is not limited by 176-22 Sections 791.011(c)(2) and (d)(3) and Section 791.014, Government 176-23 Code. 176-24 (c) The district shall determine biennially, using the 176-25 overall available scientific data of groundwater resources in the 176-26 Central Carrizo-Wilcox area, whether pumping within the district or 177-1 an adjacent district is unreasonably affecting groundwater wells. 177-2 The district, in agreement with other districts within the 177-3 designated management area, may adopt mitigation measures in 177-4 response to such unreasonable adverse effects only if the measures 177-5 are based on a scientific determination made. 177-6 (d) The district may assist in the mediation between 177-7 landowners regarding the mitigation of the loss of existing 177-8 groundwater supply of exempt domestic and livestock users due to 177-9 the groundwater pumping of others in adjoining districts. 177-10 SECTION 3.1509. BOARD OF DIRECTORS. (a) The district is 177-11 governed by a board of nine directors. 177-12 (b) Initial directors serve until permanent directors are 177-13 appointed under Section 3.1510 of this part and qualified as 177-14 required by Subsection (d) of this section. 177-15 (c) Permanent directors serve four-year staggered terms. 177-16 (d) Each director must qualify to serve as a director in the 177-17 manner provided by Section 36.055, Water Code. 177-18 (e) A director serves until the director's successor has 177-19 qualified. 177-20 (f) A director may serve consecutive terms. 177-21 (g) If there is a vacancy on the board, the governing body 177-22 of the entity that appointed the director who vacated the office 177-23 shall appoint a director to serve the remainder of the term. 177-24 (h) Directors are not entitled to receive compensation for 177-25 serving as a director but may be reimbursed for actual, reasonable 177-26 expenses incurred in the discharge of official duties. 178-1 (i) A majority vote of a quorum is required for board 178-2 action. If there is a tie vote, the proposed action fails. 178-3 SECTION 3.1510. APPOINTMENT OF DIRECTORS. (a) The Leon 178-4 County Commissioners Court shall appoint three directors, of whom: 178-5 (1) one must represent the interests of rural water 178-6 suppliers or municipalities in the county, or both; 178-7 (2) one must represent agricultural interests in the 178-8 county; and 178-9 (3) one must represent industrial interests in the 178-10 county. 178-11 (b) The Madison County Commissioners Court shall appoint 178-12 three directors, of whom: 178-13 (1) one must represent the interests of rural water 178-14 suppliers or municipalities in the county, or both; 178-15 (2) one must represent agricultural interests in the 178-16 county; and 178-17 (3) one must represent industrial interests in the 178-18 county. 178-19 (c) The Freestone County Commissioners Court shall appoint 178-20 three directors, of whom: 178-21 (1) one must represent the interests of rural water 178-22 suppliers or municipalities in the county, or both; 178-23 (2) one must represent agricultural interests in the 178-24 county; and 178-25 (3) one must represent industrial interests in the 178-26 county. 179-1 (d) Each of the governing bodies authorized by this section 179-2 to make an appointment shall appoint the appropriate number of 179-3 initial directors as soon as practicable following the effective 179-4 date of this Act, but not later than the 45th day after the 179-5 effective date of this Act. 179-6 (e) The initial directors shall draw lots to determine their 179-7 terms. A simple majority of the initial directors, if an odd 179-8 number of initial directors are appointed, or half the initial 179-9 directors, if an even number of initial directors are appointed, 179-10 serve terms that expire on January 1 of the fourth year following 179-11 the confirmation of the district at an election held under Section 179-12 3.1512 of this part. The remaining initial directors serve terms 179-13 that expire on January 1 of the second year following the 179-14 confirmation of the district. On January 1 of the second year 179-15 following confirmation of the district and every two years after 179-16 that date, the appropriate commissioners courts shall appoint the 179-17 appropriate number of permanent directors. 179-18 SECTION 3.1511. ORGANIZATIONAL MEETING. As soon as 179-19 practicable after all the initial directors have been appointed and 179-20 have qualified as provided by this part, a majority of the 179-21 directors shall convene the organizational meeting of the district 179-22 at a location within the district agreeable to a majority of the 179-23 directors. If no location can be agreed on, the organizational 179-24 meeting of the directors shall be at the Leon County Courthouse. 179-25 SECTION 3.1512. CONFIRMATION ELECTION. (a) The initial 179-26 board of directors shall call and hold an election on the same date 180-1 in each county within the district to confirm the creation of the 180-2 district. 180-3 (b) Except as provided by this section, a confirmation 180-4 election must be conducted as provided by Sections 36.017, 36.018, 180-5 and 36.019, Water Code, and Section 41.001, Election Code. 180-6 (c) If the majority of qualified voters in a county who vote 180-7 in the election vote to confirm the creation of the district, that 180-8 county is included in the district. If the majority of qualified 180-9 voters in a county who vote in the election vote not to confirm the 180-10 creation of the district, that county is excluded from the 180-11 district. 180-12 (d) The district is dissolved and this part expires on 180-13 August 31, 2003, unless the voters confirm the creation of the 180-14 district before that date. 180-15 PART 16. NORTHEAST TRAVIS COUNTY UTILITY DISTRICT 180-16 SECTION 3.1601. CREATION. (a) A conservation and 180-17 reclamation district, to be known as the Northeast Travis County 180-18 Utility District, is created in Travis County, subject to approval 180-19 at a confirmation election under Section 3.1611 of this part. The 180-20 district is a governmental agency and a body politic and corporate. 180-21 (b) The district is created under and is essential to 180-22 accomplish the purposes of Section 59, Article XVI, Texas 180-23 Constitution. 180-24 SECTION 3.1602. DEFINITION. In this part, "district" means 180-25 the Northeast Travis County Utility District. 180-26 SECTION 3.1603. BOUNDARIES. The district includes the 181-1 territory contained within the following areas: 181-2 Tract No. 1, approximately 146.50 acres of land out of the E. 181-3 Kirkland Survey No. 7, in Travis County, Texas, being all of that 181-4 certain tract conveyed to Kathleen Marie England and Jay Lawrence 181-5 Johnson by Deeds recorded in Volume 11403, Page 374, Volume 11618, 181-6 Page 104, Volume 11861, Page 120 and Volume 12118, Page 195, Real 181-7 Property Records of Travis County, Texas; 181-8 Tract No. 2, approximately 70.31 acres of land out of the E. 181-9 Kirkland Survey No. 7 in Travis County, Texas, being all of that 181-10 certain tract of land conveyed to Charles E. Baker, et ux, by Deed 181-11 recorded in Volume 7188, Page 1756, Deed Records of Travis County, 181-12 Texas; 181-13 Tract No. 3, approximately 104.34 acres of land out of the 181-14 G. M. Martin Survey No. 9, Abstract 529, Travis County, Texas, 181-15 being all of that certain tract called 103.984 acres conveyed to 181-16 Bernice Becker Zreet, Freida Becker Woodland, Edline Becker 181-17 McMains, Adolf Becker, Jr., Wilbert Becker and Edwin F. Zreet and 181-18 Bernice Zreet, Trustees of The Edwin F. and Bernice Zreet Trust 181-19 dated August 27, 1997, by Deeds recorded in Volume 10215, Page 610, 181-20 Volume 10537, Page 939, and Volume 13171, Page 102, Real Property 181-21 Records of Travis County, Texas, and all of that certain tract 181-22 called 0.356 of one acre conveyed by Muniment of Title recorded in 181-23 Document No. 71552 of the Travis County Probate Records; 181-24 Tract No. 4, approximately 103.266 acres of land out of the 181-25 George M. Martin Survey No. 9, Abstract 529, Travis County, Texas, 181-26 being all of that certain tract conveyed to Kermit Hees and wife, 182-1 Lydia Hees by Partition Deed recorded in Volume 11552, Page 475, 182-2 Real Property Records of Travis County, Texas, said 103.266 acre 182-3 tract being the remainder of that tract called 106-1/2 acres 182-4 conveyed to W. A. Randig by Deed recorded in Volume 498, Page 219, 182-5 SAVE AND EXCEPT, that portion deeded to Travis County, Texas for 182-6 highway purposes by Deed recorded in Volume 2268, Page 195, Deed 182-7 Records of Travis County, Texas; 182-8 Tract No. 5, approximately 177.301 acres of land out of the 182-9 G. M. Martin Survey in Travis County, Texas, being all of that 182-10 certain tract of land conveyed to Karolyn P. Graf and Robert L. 182-11 Pfluger, Trustees of the Lawrence and Willie Mae Pfluger Family 182-12 Trust by Deeds recorded in Volume 10431, Page 422, Volume 10555, 182-13 Page 214, and Volume 11091, Page 691, Real Property Records of 182-14 Travis County, Texas; 182-15 Tract No. 6, approximately 107.4 acres of land out of the 182-16 George M. Martin Survey, Abstract No. 9, and being all of that 182-17 certain tract of land conveyed to Robert L. Pfluger and Karolyn P. 182-18 Graf by Deed recorded in Volume 12947, Page 560 and to Robert L. 182-19 Pfluger, Trustee for Miranda Kimbro and Weston N. Kimbro and Wayne 182-20 Pfluger, Trustee for Jospeh L. Pfluger and Lydia Pfluger, by Deed 182-21 recorded in Volume 12947, Page 562, Real Property Records of Travis 182-22 County, Texas; 182-23 Tract No. 7, approximately 9.198 acres of land out of the 182-24 G. M. Martin Survey, Abstract No. 9, in Travis County, Texas, and 182-25 being all of that certain tract of land conveyed to Peggy Pfluger 182-26 and Robert L. Pfluger by Deed recorded in Volume 13049, Page 1353, 183-1 Real Property Records of Travis County, Texas. 183-2 SECTION 3.1604. FINDINGS RELATIVE TO BOUNDARIES. The 183-3 legislature finds that the boundaries and field notes of the 183-4 district form a closure. A mistake in the field notes or in 183-5 copying the field notes in the legislative process does not affect 183-6 the organization, existence, or validity of the district, the right 183-7 of the district to impose taxes, or the legality or operation of 183-8 the district or its governing body. 183-9 SECTION 3.1605. FINDING OF BENEFIT. All of the land and 183-10 other property included within the boundaries of the district will 183-11 be benefited by the works and projects that are to be accomplished 183-12 by the district under powers conferred by Section 59, Article XVI, 183-13 Texas Constitution. The district is created to serve a public use 183-14 and benefit. 183-15 SECTION 3.1606. GENERAL POWERS. (a) The district has all 183-16 of the rights, powers, privileges, authority, functions, and duties 183-17 provided by the general law of this state, including Chapters 30, 183-18 49, and 54, Water Code, applicable to municipal utility districts 183-19 created under Section 59, Article XVI, Texas Constitution. 183-20 (b) The rights, powers, privileges, authority, functions, 183-21 and duties of the district are subject to the continuing right of 183-22 supervision of the state to be exercised by and through the Texas 183-23 Natural Resource Conservation Commission. 183-24 SECTION 3.1607. DIVISION OF DISTRICT. (a) The district may 183-25 divide into two or more districts as provided by Sections 183-26 51.748-51.753, Water Code, and this section. The proposed district 184-1 may divide into two or more proposed districts before the 184-2 establishment of the district is confirmed at the confirmation 184-3 election held under Section 3.1611 of this part. 184-4 (b) A district created by division under this section may 184-5 divide into two or more districts after the establishment of the 184-6 district is confirmed at a confirmation election. A proposed 184-7 district created by division under this section may divide into two 184-8 or more proposed districts before the establishment of the district 184-9 is confirmed at a confirmation election. 184-10 (c) The district or any district resulting from a division 184-11 of the district may exercise powers under Chapters 49 and 54, Water 184-12 Code, to annex or exclude property after a confirmation election. 184-13 The temporary board of the proposed district or of any proposed 184-14 district resulting from a division of the proposed district may, 184-15 after a hearing, alter the proposed boundaries of the proposed 184-16 district before the temporary board orders a confirmation election. 184-17 (d) The order creating a district by division under this 184-18 section and Sections 51.748-51.753, Water Code, must give the 184-19 district an appropriate name that does not conflict with the name 184-20 of any other district. The provisions of Section 51.749(c), Water 184-21 Code, relating to naming a district, do not apply. 184-22 SECTION 3.1608. ANNEXATION BY MUNICIPALITY. (a) The 184-23 district is a water or sewer district as defined by Section 43.071, 184-24 Local Government Code, for purposes of that section. 184-25 (b) On annexation of the district by a municipality, the 184-26 district is dissolved and the municipality shall assume the powers, 185-1 authority, functions, duties, and outstanding bonded indebtedness 185-2 of the district. 185-3 (c) A municipality that annexes the district must provide 185-4 full municipal services, as defined by Section 43.056(c), Local 185-5 Government Code, in the district before the expiration of two and 185-6 one-half years after the effective date of the annexation, unless 185-7 certain services cannot reasonably be provided within that period 185-8 and the municipality proposes a schedule for providing those 185-9 services. If the municipality proposes a schedule to extend the 185-10 period for providing certain services, the schedule must provide 185-11 for the provision of full municipal services before the expiration 185-12 of four and one-half years after the effective date of the 185-13 annexation. 185-14 SECTION 3.1609. BOARD OF DIRECTORS. (a) The district is 185-15 governed by a board of five directors. 185-16 (b) Temporary directors serve until initial directors are 185-17 elected under Section 3.1611 of this part. 185-18 (c) Initial directors serve until permanent directors are 185-19 elected under Section 3.1612 of this part. 185-20 (d) Permanent directors serve staggered four-year terms. 185-21 (e) Each director must qualify to serve as a director in the 185-22 manner provided by Section 49.055, Water Code. 185-23 (f) A director serves until the director's successor has 185-24 qualified. 185-25 SECTION 3.1610. TEMPORARY DIRECTORS. (a) The temporary 185-26 board of directors consists of: 186-1 (1) Chris Fields; 186-2 (2) Nate Nickerson; 186-3 (3) Seth Spiker; 186-4 (4) John Pfluger; and 186-5 (5) Steven Thomas. 186-6 (b) The temporary directors are not required to own land or 186-7 reside in the district. 186-8 (c) The temporary directors shall take the oath of office 186-9 and execute bonds to qualify for holding their offices as soon as 186-10 possible after the effective date of this Act. 186-11 (d) If a temporary director fails to qualify for office, the 186-12 temporary directors who have qualified shall appoint a person to 186-13 fill the vacancy. If at any time there are fewer than three 186-14 qualified temporary directors, the Texas Natural Resource 186-15 Conservation Commission shall appoint the necessary number of 186-16 persons to fill all vacancies on the board. 186-17 SECTION 3.1611. CONFIRMATION AND INITIAL DIRECTORS ELECTION. 186-18 (a) The temporary board of directors shall call and hold an 186-19 election to confirm establishment of the district and to elect five 186-20 initial directors as provided by Section 49.102, Water Code. The 186-21 board may submit to the voters propositions to authorize the 186-22 issuance of bonds, a maintenance tax, and a tax to make payments 186-23 under a contract. 186-24 (b) Section 41.001(a), Election Code, does not apply to an 186-25 election held under this section. 186-26 SECTION 3.1612. ELECTION OF DIRECTORS. (a) On the first 187-1 Saturday in May of the first even-numbered year after the year in 187-2 which the district is authorized to be created at a confirmation 187-3 election, a general election shall be held in the district for the 187-4 election of three directors to serve four-year terms and two 187-5 directors to serve two-year terms. 187-6 (b) On the first Saturday in May of each subsequent second 187-7 year following the election, the appropriate number of directors 187-8 shall be elected. 187-9 SECTION 3.1613. FINDINGS RELATING TO PROCEDURAL 187-10 REQUIREMENTS. (a) The proper and legal notice of the intention to 187-11 introduce this Act, setting forth the general substance of this 187-12 Act, has been published as provided by law, and the notice and a 187-13 copy of this Act have been furnished to all persons, agencies, 187-14 officials, or entities to which they are required to be furnished 187-15 by the constitution and other laws of this state, including the 187-16 governor, who has submitted the notice and Act to the Texas Natural 187-17 Resource Conservation Commission. 187-18 (b) The Texas Natural Resource Conservation Commission has 187-19 filed its recommendations relating to this Act with the governor, 187-20 lieutenant governor, and speaker of the house of representatives 187-21 within the required time. 187-22 (c) All requirements of the constitution and laws of this 187-23 state and the rules and procedures of the legislature with respect 187-24 to the notice, introduction, and passage of this Act are fulfilled 187-25 and accomplished. 187-26 SECTION 3.1614. EFFECTIVE DATE OF THIS PART. This part 188-1 takes effect immediately if this Act receives a vote of two- thirds 188-2 of all the members elected to each house, as provided by Section 188-3 39, Article III, Texas Constitution. If this Act does not receive 188-4 the vote necessary for immediate effect, this part takes effect 188-5 September 1, 2001. 188-6 ARTICLE 4. WATER INFRASTRUCTURE FINANCING 188-7 SECTION 4.01. Chapter 15, Water Code, is amended by adding 188-8 Subchapter O to read as follows: 188-9 _SUBCHAPTER O. WATER INFRASTRUCTURE FUND_ 188-10 _Sec. 15.901. DEFINITIONS. In this subchapter:_ 188-11 _(1) "Eligible political subdivision" means:_ 188-12 _(A) a municipality;_ 188-13 _(B) a county;_ 188-14 _(C) a river authority or special law district_ 188-15 _that is listed in Section 9.010(b);_ 188-16 _(D) a water improvement district;_ 188-17 _(E) an irrigation district;_ 188-18 _(F) a water control and improvement district;_ 188-19 _and_ 188-20 _(G) a groundwater district with a groundwater_ 188-21 _management plan certified by the board under Section 36.1072._ 188-22 _(2) "Fund" means the water infrastructure fund._ 188-23 _(3) "Metropolitan statistical area" means an area so_ 188-24 _designated by the United States Office of Management and Budget._ 188-25 _(4) "Political subdivision bonds" means bonds or other_ 188-26 _obligations issued by a political subdivision to fund a project and_ 189-1 _purchased by the board from money in the fund._ 189-2 _(5) "Project" means any undertaking or work, including_ 189-3 _planning and design activities and work to obtain regulatory_ 189-4 _authority, to conserve, mitigate, convey, and develop water_ 189-5 _resources of the state, including any undertaking or work done_ 189-6 _outside the state that the board determines will result in water_ 189-7 _being available for use in or for the benefit of the state._ 189-8 _Sec. 15.902. FINDINGS. The legislature finds that:_ 189-9 _(1) the creation of the fund and the administration of_ 189-10 _the fund by the board will encourage the conservation and_ 189-11 _development of the water resources of the state;_ 189-12 _(2) the use of the fund is in furtherance of the_ 189-13 _public purpose of conserving and developing the water resources of_ 189-14 _the state; and_ 189-15 _(3) the use of the fund for the purposes provided by_ 189-16 _this subchapter is for the benefit of both the state and the_ 189-17 _political subdivisions to which the board makes financial_ 189-18 _assistance available in accordance with this subchapter and_ 189-19 _constitutes a program under, and is in furtherance of the public_ 189-20 _purposes set forth in, Section 52-a, Article III, Texas_ 189-21 _Constitution._ 189-22 _Sec. 15.903. WATER INFRASTRUCTURE FUND. (a) The water_ 189-23 _infrastructure fund is a special account in the general revenue_ 189-24 _fund to be administered by the board under this subchapter and_ 189-25 _rules adopted by the board under this subchapter. Money in the_ 189-26 _fund may be used to pay for the implementation of water projects_ 190-1 _recommended through the state and regional water planning processes_ 190-2 _under Sections 16.051 and 16.053._ 190-3 _(b) The fund consists of:_ 190-4 _(1) appropriations from the legislature;_ 190-5 _(2) any other fees or sources of revenue that the_ 190-6 _legislature may dedicate for deposit to the fund;_ 190-7 _(3) repayments of loans made from the fund;_ 190-8 _(4) interest earned on money credited to the fund;_ 190-9 _(5) depository interest allocable to the fund in the_ 190-10 _general revenue fund;_ 190-11 _(6) money from gifts, grants, or donations to the_ 190-12 _fund;_ 190-13 _(7) money from revenue bonds or other sources_ 190-14 _designated by the board; and_ 190-15 _(8) proceeds from the sale of political subdivision_ 190-16 _bonds or obligations held in the fund and not otherwise pledged to_ 190-17 _the discharge, repayment, or redemption of revenue bonds or other_ 190-18 _bonds, the proceeds of which were placed in the fund._ 190-19 _Sec. 15.904. USE OF WATER INFRASTRUCTURE FUND. (a) The_ 190-20 _board may use the fund:_ 190-21 _(1) to make loans to political subdivisions at or_ 190-22 _below market interest rates for projects;_ 190-23 _(2) to make grants, low-interest loans, or zero_ 190-24 _interest loans to political subdivisions for projects to serve_ 190-25 _areas outside metropolitan statistical areas in order to ensure_ 190-26 _that the projects are implemented, or for projects to serve_ 191-1 _economically distressed areas;_ 191-2 _(3) to make loans at or below market interest rates_ 191-3 _for planning and design costs, permitting costs, and other costs_ 191-4 _associated with state or federal regulatory activities with respect_ 191-5 _to a project;_ 191-6 _(4) as a source of revenue or security for the payment_ 191-7 _of principal and interest on bonds issued by the board if the_ 191-8 _proceeds of the sale of the bonds will be deposited in the fund;_ 191-9 _and_ 191-10 _(5) to pay the necessary and reasonable expenses of_ 191-11 _the board in administering the fund._ 191-12 _(b) Funding under Subsection (a)(2) or under Subsection_ 191-13 _(a)(3) may not exceed 10 percent of the amount of financial_ 191-14 _assistance budgeted by the board to be made available from the fund_ 191-15 _in a fiscal year._ 191-16 _(c) Principal and interest payments on loans made under_ 191-17 _Subsection (a)(3) may be deferred for a maximum of 10 years or_ 191-18 _until construction of the project is completed, whichever is_ 191-19 _earlier._ 191-20 _Sec. 15.905. APPROVAL OF APPLICATIONS. (a) On review and_ 191-21 _recommendation by the executive administrator, the board by_ 191-22 _resolution may approve an application if the board finds that:_ 191-23 _(1) the application and the assistance applied for_ 191-24 _meet the requirements of this subchapter and board rules;_ 191-25 _(2) the revenue or taxes, or both the revenue and_ 191-26 _taxes, pledged by the applicant will be sufficient to meet all the_ 192-1 _obligations assumed by the political subdivision; and_ 192-2 _(3) the project will meet water needs in a manner_ 192-3 _consistent with the state and regional water plans as required by_ 192-4 _Section 16.053(j), unless otherwise specified by an act of the_ 192-5 _legislature._ 192-6 _(b) For an application under this subchapter, a program of_ 192-7 _water conservation through a more effective use of water shall be_ 192-8 _required in the same manner as for approval of an application for_ 192-9 _financial assistance under Section 15.106._ 192-10 _(c) The board may deliver funds for the part of a loan or_ 192-11 _grant for a project relating to surface water development, other_ 192-12 _than for planning and design costs, permitting costs, and other_ 192-13 _costs associated with federal and state regulatory activities with_ 192-14 _respect to a project, only if the executive administrator makes a_ 192-15 _written finding that the applicant:_ 192-16 _(1) has the necessary water rights authorizing the_ 192-17 _applicant to appropriate and use the water that the project will_ 192-18 _provide, if the applicant is proposing surface water development;_ 192-19 _or_ 192-20 _(2) has the right to use water that the project will_ 192-21 _provide, if the applicant is proposing groundwater development._ 192-22 _Sec. 15.906. APPLICABLE LAW. Subchapter E, Chapter 17,_ 192-23 _applies to financial assistance made available from the fund,_ 192-24 _except that the board may also execute contracts as necessary to_ 192-25 _evidence grant agreements._ 192-26 _Sec. 15.907. RULES. The board shall adopt rules necessary_ 193-1 _to carry out this subchapter, including rules establishing_ 193-2 _procedures for application for and for the award of financial_ 193-3 _assistance, for the investment of funds, and for the administration_ 193-4 _of the fund._ 193-5 _Sec. 15.908. SALE OF POLITICAL SUBDIVISION BONDS. (a) The_ 193-6 _board may sell or dispose of political subdivision bonds at the_ 193-7 _price and under the terms that the board determines to be_ 193-8 _reasonable._ 193-9 _(b) The board may sell political subdivision bonds without_ 193-10 _making a previous offer to the political subdivision that issued_ 193-11 _the bonds and without advertising, soliciting, or receiving bids_ 193-12 _for sale._ 193-13 _(c) Notwithstanding other provisions of this chapter, the_ 193-14 _board may sell to the Texas Water Resources Finance Authority any_ 193-15 _political subdivision bonds purchased with money in the fund and_ 193-16 _may apply the proceeds of a sale in the manner provided by this_ 193-17 _section._ 193-18 _(d) Proceeds from the sale of political subdivision bonds_ 193-19 _under this section shall be deposited in the fund for use as_ 193-20 _provided by Section 15.904._ 193-21 _(e) As part of a sales agreement with the Texas Water_ 193-22 _Resources Finance Authority, the board by contract may agree to_ 193-23 _perform the functions required to ensure that the political_ 193-24 _subdivision pays the debt service on political subdivision bonds_ 193-25 _sold and observes the conditions and requirements stated in those_ 193-26 _bonds._ 194-1 _(f) The board may exercise any powers necessary to carry out_ 194-2 _the authority granted by this section, including the authority to_ 194-3 _contract with any person to accomplish the purposes of this_ 194-4 _section._ 194-5 _Sec. 15.909. FUNDING FOR LOCAL ECONOMIC DEVELOPMENT._ 194-6 _(a) The board may use the fund to provide financial assistance to_ 194-7 _an eligible political subdivision to enable the political_ 194-8 _subdivision to fund loans and grants for projects that conserve and_ 194-9 _develop the water resources of the political subdivision for the_ 194-10 _ultimate benefit of the public, and that develop and diversify its_ 194-11 _local economy, consistent with the terms and conditions set forth_ 194-12 _in a program adopted by the governing body of the political_ 194-13 _subdivision under authority granted by Section 15.910._ 194-14 _(b) The board may not purchase political subdivision bonds_ 194-15 _issued for the purposes described by Subsection (a) that are_ 194-16 _secured in whole or in part by a pledge of ad valorem taxes unless_ 194-17 _the political subdivision submits evidence satisfactory to the_ 194-18 _board that the issuance of the bonds has been approved by the_ 194-19 _citizens of the political subdivision voting at an election held_ 194-20 _for the purposes described in Section 15.910._ 194-21 _Sec. 15.910. AUTHORITY TO ESTABLISH ECONOMIC DEVELOPMENT_ 194-22 _PROGRAMS. (a) An eligible political subdivision may establish_ 194-23 _economic development programs and make loans and grants of public_ 194-24 _funds to assist in providing projects within the political_ 194-25 _subdivision that conserve and develop the water resources of the_ 194-26 _political subdivision for the ultimate benefit of the public. The_ 195-1 _authority granted to a political subdivision to make loans and_ 195-2 _grants in accordance with this section constitutes a program in_ 195-3 _furtherance of the public purposes provided by Section 52-a,_ 195-4 _Article III, Texas Constitution._ 195-5 _(b) Financial assistance received from the fund may be used_ 195-6 _by an eligible political subdivision to make loans or grants to_ 195-7 _persons for projects that the political subdivision finds will_ 195-8 _conserve and develop the water resources of the political_ 195-9 _subdivision for the ultimate benefit of the public and assist in_ 195-10 _diversifying and developing the economy of the political_ 195-11 _subdivision and the state._ 195-12 _(c) In exercising the authority granted by this section, the_ 195-13 _governing body of an eligible political subdivision may determine_ 195-14 _the terms and conditions governing the loan or grant of money and_ 195-15 _determine whether to approve an agreement with a person who_ 195-16 _receives a loan or grant._ 195-17 _Sec. 15.911. An eligible political subdivision may not sell_ 195-18 _or incur obligations to fund an economic development program_ 195-19 _established under authority granted by Section 15.910 that are_ 195-20 _payable in whole or in part from ad valorem taxes unless the_ 195-21 _residents of the political subdivision, voting at an election held_ 195-22 _for the purpose, approve the issuance of obligations to fund an_ 195-23 _economic development program for the provision of loans or grants_ 195-24 _to persons to construct projects that will conserve and develop the_ 195-25 _water resources of the political subdivision for the ultimate_ 195-26 _benefit of the public and assist in developing and diversifying the_ 196-1 _local economy._ 196-2 SECTION 4.02. Chapter 15, Water Code, is amended by adding 196-3 Subchapter P to read as follows: 196-4 _SUBCHAPTER P. RURAL WATER ASSISTANCE FUND_ 196-5 _Sec. 15.951. PURPOSE. The legislature finds that the rural_ 196-6 _areas of the state, characterized by small populations extended_ 196-7 _over disproportionately large service areas, require a means of_ 196-8 _financing water projects in addition to those established by other_ 196-9 _provisions of this chapter._ 196-10 _Sec. 15.952. DEFINITIONS. In this subchapter:_ 196-11 _(1) "District" means a conservation or reclamation_ 196-12 _district created under Section 52, Article III, or Section 59,_ 196-13 _Article XVI, Texas Constitution._ 196-14 _(2) "Federal agency" means an agency or other entity_ 196-15 _of the United States Department of Agriculture or an agency or_ 196-16 _entity that is acting through or on behalf of that department._ 196-17 _(3) "Fund" means the rural water assistance fund._ 196-18 _(4) "Rural political subdivision" means:_ 196-19 _(A) a nonprofit water supply or sewer service_ 196-20 _corporation, district, or municipality with a service area of_ 196-21 _10,000 or less in population or that otherwise qualifies for_ 196-22 _financing from a federal agency; or_ 196-23 _(B) a county in which no urban area exceeds_ 196-24 _50,000 in population._ 196-25 _(5) "State agency" means an agency or other entity of_ 196-26 _the state, including the Department of Agriculture and the Texas_ 197-1 _Department of Housing and Community Affairs and any agency or_ 197-2 _authority that is acting through or on behalf of the Department of_ 197-3 _Agriculture or the Texas Department of Housing and Community_ 197-4 _Affairs._ 197-5 _Sec. 15.953. FUND. The rural water assistance fund is a_ 197-6 _special account in the general revenue fund. The fund consists of:_ 197-7 _(1) money directly appropriated to the board;_ 197-8 _(2) repayment of principal and interest from loans_ 197-9 _made from the fund not otherwise needed as a source of revenue_ 197-10 _pursuant to Section 17.9615(b);_ 197-11 _(3) money transferred by the board from any sources_ 197-12 _available; and_ 197-13 _(4) interest earned on the investment of money in the_ 197-14 _fund and depository interest allocable to the fund in the general_ 197-15 _revenue fund._ 197-16 _Sec. 15.954. USE OF FUND. (a) The fund may be used to_ 197-17 _provide low-interest loans to rural political subdivisions for_ 197-18 _water or water-related projects, including the purchase of well_ 197-19 _fields, the purchase or lease of rights to produce groundwater, and_ 197-20 _interim financing of construction projects._ 197-21 _(b) The fund may be used to enable a rural political_ 197-22 _subdivision to obtain water supplied by larger political_ 197-23 _subdivisions or to finance the consolidation or regionalizing of_ 197-24 _neighboring political subdivisions, or both._ 197-25 _(c) The fund may be used to finance an outreach and_ 197-26 _technical assistance program to assist rural political subdivisions_ 198-1 _in obtaining assistance through the fund. The board may use money_ 198-2 _in the fund to contract for such outreach and technical assistance._ 198-3 _(d) The fund may be used to buy down interest rates on_ 198-4 _loans._ 198-5 _(e) A rural political subdivision may enter into an_ 198-6 _agreement with a federal agency or a state agency to submit a joint_ 198-7 _application for financial assistance under this subchapter._ 198-8 _(f) A nonprofit water supply or sewer service corporation is_ 198-9 _exempt from payment of any sales tax that may be incurred under_ 198-10 _other law or ordinance for any project financed by the fund._ 198-11 _(g) The fund may be used as a source of revenue for the_ 198-12 _payment of principal and interest on water financial assistance_ 198-13 _bonds issued by the board if the proceeds of the sale of these_ 198-14 _bonds will be deposited into the rural water assistance fund._ 198-15 _Sec. 15.955. FINANCIAL ASSISTANCE. (a) The board shall_ 198-16 _adopt rules necessary to administer this subchapter, including_ 198-17 _rules establishing procedures for the application for and award of_ 198-18 _loans, the distribution of loans, the investment of funds, and the_ 198-19 _administration of loans and the fund._ 198-20 _(b) The board may not release from the fund money for the_ 198-21 _construction phase of parts of projects proposing surface water or_ 198-22 _groundwater development until the executive administrator makes a_ 198-23 _written finding that a rural political subdivision:_ 198-24 _(1) has the necessary water right authorizing it to_ 198-25 _appropriate and use the water that the project will provide, if the_ 198-26 _rural political subdivision is proposing surface water development;_ 199-1 _or_ 199-2 _(2) has the right to use water that the project will_ 199-3 _provide, if the rural political subdivision is proposing_ 199-4 _groundwater development._ 199-5 _(c) In passing on an application from a rural political_ 199-6 _subdivision for financial assistance, the board shall consider:_ 199-7 _(1) the needs of the area to be served by the project,_ 199-8 _the benefit of the project to the area, the relationship of the_ 199-9 _project to the overall state water needs, and the relationship of_ 199-10 _the project to the state water plan; and_ 199-11 _(2) the availability of revenue to the rural political_ 199-12 _subdivision from all sources for the ultimate repayment of the cost_ 199-13 _of the water supply project, including all interest._ 199-14 _(d) The board by resolution may approve an application if,_ 199-15 _after considering the factors listed in Subsection (c) and other_ 199-16 _relevant factors, the board finds that:_ 199-17 _(1) the public interest is served by state assistance_ 199-18 _for the project; and_ 199-19 _(2) the revenue or taxes pledged by the rural_ 199-20 _political subdivision will be sufficient to meet all the_ 199-21 _obligations assumed by the rural political subdivision during the_ 199-22 _succeeding period of not more than 50 years._ 199-23 _(e) A program of water conservation for the more efficient_ 199-24 _use of water shall be required in the same manner as is required_ 199-25 _for approval of an application for financial assistance under_ 199-26 _Section 15.106._ 200-1 _(f) Sections 17.183-17.187 apply to the construction of_ 200-2 _projects funded pursuant to this subchapter._ 200-3 SECTION 4.03. Subsection (j), Section 5.235, Water Code, is 200-4 amended to read as follows: 200-5 (j) The fee for other uses of water not specifically named 200-6 in this section is $1 per acre-foot, except that no political 200-7 subdivision may be required to pay fees to use water for recharge 200-8 of underground freshwater-bearing sands and aquifers or for 200-9 abatement of natural pollution. _This fee is waived for_ 200-10 _applications for instream-use water rights deposited into the Texas_ 200-11 _Water Trust._ 200-12 SECTION 4.04. Section 15.001, Water Code, is amended by 200-13 adding Subdivision (12) to read as follows: 200-14 _(12) "Regionalization" means development of a water_ 200-15 _supply or wastewater collection and treatment system that_ 200-16 _incorporates multiple service areas into an areawide service_ 200-17 _facility or any such system that serves an area that includes more_ 200-18 _than a single county, city, special district, or other political_ 200-19 _subdivision of the state._ 200-20 SECTION 4.05. Subsection (a), Section 15.002, Water Code, is 200-21 amended to read as follows: 200-22 (a) The legislature finds that it is in the public interest 200-23 and to the benefit of the general public of the state to encourage 200-24 and to assist in the planning and construction of projects to 200-25 develop and conserve the storm water and floodwater as well as the 200-26 ordinary flows of the rivers and streams of the state, to maintain 201-1 and enhance the quality of the water of the state, to provide 201-2 protection to the state's citizens from the floodwater of the 201-3 rivers and streams of the state, to provide drainage, subsidence 201-4 control, public beach nourishment, recharge, chloride control, 201-5 _brush control, weather modification, regionalization,_ and 201-6 _desalination_ [desalinization], to provide for the management of 201-7 aquatic vegetation, and other purposes as provided by law or board 201-8 rule. 201-9 SECTION 4.06. Subsection (b), Section 15.011, Water Code, is 201-10 amended to read as follows: 201-11 (b) After notice and hearing and subject to any limitations 201-12 established by the General Appropriations Act, the board may 201-13 transfer money from the fund to the loan fund created under 201-14 Subchapter C [of this chapter], the storage acquisition fund 201-15 created under Subchapter E [of this chapter], the research and 201-16 planning fund created under Subchapter F [of this chapter], the 201-17 hydrographic survey account created under Subchapter M [of this 201-18 chapter], provided the hydrographic survey account transfer does 201-19 not exceed $425,000, [and] the aquatic vegetation management fund 201-20 created under Subchapter N_, and the rural water assistance fund_ 201-21 _created under Subchapter P_ [of this chapter]. 201-22 SECTION 4.07. Subsections (a) and (b), Section 15.102, Water 201-23 Code, are amended to read as follows: 201-24 (a) The loan fund may be used by the board to provide loans 201-25 of financial assistance to political subdivisions, federal 201-26 agencies, or both political subdivisions and federal agencies 202-1 acting jointly for the construction, acquisition, improvement, or 202-2 enlargement of projects involving water conservation, water 202-3 development, or water quality enhancement, providing nonstructural 202-4 and structural flood control, or drainage, project recreation lands 202-5 and revenue-generating recreational improvements within any 202-6 watershed, or providing recharge, chloride control, subsidence 202-7 control, _brush control, weather modification, regionalization,_ or 202-8 _desalination_ [desalinization] as provided by legislative 202-9 appropriations, this chapter, and the board rules. 202-10 (b) The loan fund may also be used by the board to provide 202-11 grants for_:_ 202-12 _(1)_ projects that include supplying water and 202-13 wastewater services in economically distressed areas, including 202-14 projects involving retail distribution of those services_; and_ 202-15 _(2) desalination, brush control, weather modification,_ 202-16 _regionalization, and projects providing regional water quality_ 202-17 _enhancement services as defined by board rule, including regional_ 202-18 _conveyance systems_. 202-19 SECTION 4.08. Section 15.105, Water Code, is amended to read 202-20 as follows: 202-21 Sec. 15.105. CONSIDERATIONS IN PASSING ON APPLICATION. 202-22 _(a)_ In passing on an application for financial assistance from the 202-23 loan fund, the board shall consider but is not limited to: 202-24 (1) the needs of the area to be served by the project 202-25 and the benefit of the project to the area in relation to the needs 202-26 of other areas requiring state assistance in any manner and the 203-1 benefits of those projects to the other areas; 203-2 (2) the availability of revenue to the applicant from 203-3 all sources for the ultimate repayment of the cost of the project, 203-4 including all interest; 203-5 (3) the relationship of the project to overall 203-6 statewide needs; 203-7 (4) the ability of the applicant to finance the 203-8 project without state assistance; [and] 203-9 (5) for applications for grants for economically 203-10 distressed areas, the regulatory efforts by the county in which the 203-11 project is located to control the construction of subdivisions that 203-12 lack basic utility services_; and_ 203-13 _(6) for applications for grants under Section_ 203-14 _15.102(b)(2), the ability of the applicant to construct the project_ 203-15 _without the grant and the benefits of the project to water and_ 203-16 _wastewater needs of the state._ 203-17 _(b) The board by rule shall further define eligibility for_ 203-18 _grants under this subchapter_. 203-19 SECTION 4.09. Subsection (a), Section 15.106, Water Code, is 203-20 amended to read as follows: 203-21 (a) The board, by resolution, may approve an application for 203-22 _financial assistance_ [a loan] if after considering the factors 203-23 listed in Section 15.105 of this code and any other relevant 203-24 factors, the board finds: 203-25 (1) that the public interest requires state 203-26 participation in the project; and 204-1 (2) that in its opinion the revenue or taxes pledged 204-2 by the political subdivision will be sufficient to meet all the 204-3 obligations assumed by the political subdivision. 204-4 SECTION 4.10. Section 15.107, Water Code, is amended to read 204-5 as follows: 204-6 Sec. 15.107. METHOD OF MAKING [LOANS OF] FINANCIAL 204-7 ASSISTANCE _AVAILABLE_. (a) The board may make financial assistance 204-8 available to successful applicants in any manner that it considers 204-9 economically feasible including: 204-10 (1) contracts or agreements with a political 204-11 subdivision for the payment of the principal of or interest on or 204-12 both the principal of and interest on bonds or other obligations 204-13 issued or to be issued by the political subdivision; 204-14 (2) contracts or agreements with a political 204-15 subdivision for the purpose of providing the political 204-16 subdivision's share of any cost-sharing required as a participant 204-17 in or local sponsor of any federal project; [or] 204-18 (3) purchase of the bonds or other obligations of a 204-19 political subdivision for the purpose of completely or partially 204-20 financing the project for which the application is being submitted_;_ 204-21 _or_ 204-22 _(4) contracts or agreements for the receipt of funds_ 204-23 _and performance of obligations in relation to any grant of funds_ 204-24 _provided by the board_. 204-25 (b) Contracts or agreements entered into under Subdivision 204-26 (1) of Subsection (a) of this section may cover all or any part of 205-1 the debt service requirements in a given year and may cover debt 205-2 service requirements in as many years of an issue as the board 205-3 considers appropriate. 205-4 (c) In a determination on a loan for financial assistance, 205-5 the board may approve interest deferral or the capitalization of 205-6 interest costs and may approve periods of repayment for the loans 205-7 of up to 50 years. 205-8 SECTION 4.11. Section 15.434, Water Code, is amended to read 205-9 as follows: 205-10 Sec. 15.434. USE OF MONEY IN FUND. Money deposited to the 205-11 credit of the agricultural soil and water conservation fund, on 205-12 appropriation by the legislature to the board, the Department of 205-13 Agriculture, the State Soil and Water Conservation Board, the Texas 205-14 Agricultural Experiment Station, the Texas Agricultural Extension 205-15 Service, public colleges and universities, and other state agencies 205-16 shall be used for the following purposes: 205-17 (1) agricultural water conservation technical 205-18 assistance programs; 205-19 (2) agricultural water conservation, education, and 205-20 demonstration programs; 205-21 (3) purchase of equipment, including demonstration and 205-22 educational equipment; 205-23 (4) grants made to _groundwater_ [underground water] 205-24 conservation districts _and political subdivisions_ for the purchase 205-25 of equipment under programs established by Subchapter H of this 205-26 chapter; 206-1 (5) research in water utilization and conservation 206-2 including artificial recharge and secondary recovery of _groundwater_ 206-3 [underground water]; 206-4 (6) _desalination_ [desalinization]; 206-5 (7) weather modification; 206-6 (8) technical assistance programs for developing 206-7 on-farm soil and water conservation plans developed jointly by 206-8 landowners and operators and local soil and water conservation 206-9 districts, as provided by Subchapter H, Chapter 201, Agriculture 206-10 Code; 206-11 (9) research and demonstration relating to the 206-12 production of native and low-water-use plants and water- efficient 206-13 crops; 206-14 (10) a pilot program for low-interest loans for the 206-15 purchase of agricultural water conservation systems established by 206-16 Subchapter I of this chapter; [and] 206-17 (11) research, demonstration, and education relating 206-18 to brush control_; and_ 206-19 _(12) regionalization designed to promote agricultural_ 206-20 _water conservation_. 206-21 SECTION 4.12. Section 15.471, Water Code, is amended to read 206-22 as follows: 206-23 Sec. 15.471. GRANTS; PURPOSES. The board may make grants of 206-24 money to _groundwater_ [underground water] conservation districts_, to_ 206-25 _political subdivisions,_ and to other districts created under 206-26 Article III, Sections 52(b)(1) and (2), or Article XVI, Section 59, 207-1 of the Texas Constitution for purchasing equipment required for: 207-2 (1) measurement and evaluation of irrigation systems 207-3 and agricultural water conservation practices on irrigated land, 207-4 dryland, and rangeland; 207-5 (2) demonstration of efficient irrigation systems and 207-6 agricultural water conservation practices on irrigated land, 207-7 dryland, and rangeland; 207-8 (3) testing and evaluation of water quality and the 207-9 suitability of water from groundwater or surface water resources 207-10 for irrigation, rural domestic use, livestock, or agricultural 207-11 industry use; 207-12 (4) demonstration of efficient or sound chemical 207-13 application and evaluation or demonstration of systems which will 207-14 prevent contamination of groundwater and surface water from 207-15 chemicals and other substances used in agriculture_; or_ 207-16 _(5) measurement and data collection related to the_ 207-17 _conservation of groundwater resources_. 207-18 SECTION 4.13. Section 15.602, Water Code, is amended by 207-19 adding a new Subdivision (8) and redesignating existing 207-20 Subdivisions (8) through (14) as Subdivisions (9) through (15) to 207-21 read as follows: 207-22 (8) _"Person" means an individual, corporation,_ 207-23 _partnership, association, state, municipality, commission, or_ 207-24 _political subdivision of a state or any interstate body, as defined_ 207-25 _by Section 502 of the federal act, including a political_ 207-26 _subdivision as defined by this subchapter, if the person is_ 208-1 _eligible for financial assistance under federal law establishing_ 208-2 _the revolving fund._ 208-3 _(9)_ "Political subdivision" means a municipality, 208-4 intermunicipal, interstate, or state agency, any other public 208-5 entity eligible for assistance under this subchapter, or a 208-6 nonprofit water supply corporation created and operating under 208-7 Chapter 67, if such entity is eligible for financial assistance 208-8 under federal law establishing the state revolving fund or an 208-9 additional state revolving fund. 208-10 _(10)_ [(9)] "Public water system" means a system that 208-11 is owned by any person and that meets the definition of public 208-12 water system in the Safe Drinking Water Act. 208-13 _(11)_ [(10)] "Public works" means any project to 208-14 acquire, construct, improve, repair, or otherwise provide any 208-15 buildings, structures, facilities, equipment, or other real or 208-16 personal property or improvements designed for public use, 208-17 protection, or enjoyment undertaken by a political subdivision and 208-18 paid for, in whole or in part, out of public funds. 208-19 _(12)_ [(11)] "Revolving fund" means the state water 208-20 pollution control revolving fund. 208-21 _(13)_ [(12)] "Safe Drinking Water Act" means Title XIV 208-22 of the federal Public Health Service Act, commonly known as the 208-23 Safe Drinking Water Act, as amended (42 U.S.C. Section 300f et 208-24 seq.). 208-25 _(14)_ [(13)] "Safe drinking water revolving fund" means 208-26 the fund established by the board as an additional state revolving 209-1 fund to provide financial assistance in accordance with the federal 209-2 program established pursuant to the provisions of the Safe Drinking 209-3 Water Act. 209-4 _(15)_ [(14)] "Treatment works" has the meaning 209-5 established by the federal act and the eligible components of the 209-6 management programs established by Sections 319 and 320 of the 209-7 federal act. 209-8 SECTION 4.14. Subsection (a), Section 15.603, Water Code, is 209-9 amended to read as follows: 209-10 (a) The revolving fund is held separately from other funds 209-11 by the board outside the State Treasury to provide financial 209-12 assistance to political subdivisions for construction of treatment 209-13 works _and to persons for nonpoint source pollution control and_ 209-14 _estuary management projects_. 209-15 SECTION 4.15. Subsection (a), Section 15.604, Water Code, is 209-16 amended to read as follows: 209-17 (a) The board may use the revolving fund for financial 209-18 assistance only as provided by the federal act: 209-19 (1) to make loans, on the conditions that: 209-20 (A) those loans are made at or below market 209-21 interest rates, including interest-free loans, at terms not to 209-22 exceed 20 years; 209-23 (B) principal and interest payments will begin 209-24 not later than one year after completion of any treatment works and 209-25 all loans will be fully amortized not later than 20 years after 209-26 completion of the treatment works; 210-1 (C) the recipient of a loan will establish a 210-2 dedicated source of revenue for repayment of loans; and 210-3 (D) the revolving fund will be credited with all 210-4 payments of principal of and interest on all loans; 210-5 (2) to buy or refinance the debt obligation of 210-6 political subdivisions at or below market rates if the debt 210-7 obligations were incurred after March 7, 1985; 210-8 (3) to guarantee or purchase insurance for political 210-9 subdivisions if the guarantee or insurance would improve access to 210-10 market credit or reduce interest rates; 210-11 (4) as a source of revenue or security for the payment 210-12 of principal and interest on bonds issued by the state if the 210-13 proceeds of the sale of those bonds will be deposited in the 210-14 revolving fund; 210-15 (5) to provide loan guarantees to similar revolving 210-16 funds established by municipalities or intermunicipal agencies; 210-17 (6) to earn interest on revolving fund accounts; 210-18 (7) for the reasonable costs of administering the 210-19 revolving fund and conducting activities provided for by Title VI 210-20 of the federal act, except that those amounts may not exceed the 210-21 amount authorized under Title VI of the federal act; [and] 210-22 (8) _to provide financial assistance to persons for a_ 210-23 _nonpoint source pollution control project under Section 319 of the_ 210-24 _federal act or for an estuary management project under Section 320_ 210-25 _of the federal act; and_ 210-26 _(9)_ for other purposes as provided by the federal act. 211-1 SECTION 4.16. Section 15.607, Water Code, is amended to read 211-2 as follows: 211-3 Sec. 15.607. APPROVAL OF APPLICATION. On review of 211-4 recommendations by the executive administrator, the board by 211-5 resolution may approve an application if the board finds that in 211-6 its opinion the revenue or taxes or both revenue and taxes pledged 211-7 by the applicant will be sufficient to meet all the obligations 211-8 assumed by the _applicant_ [political subdivision] and that the 211-9 application and assistance applied for meet the requirements of the 211-10 federal act and state law. A program of water conservation for the 211-11 more effective use of water shall be required in the same manner as 211-12 required for approval of an application for financial assistance 211-13 under Section 15.106 of this code. 211-14 SECTION 4.17. Subchapter C, Chapter 16, Water Code, is 211-15 amended by adding Section 16.059 to read as follows: 211-16 _Sec. 16.059. COLLECTION OF INSTREAM FLOW DATA; CONDUCT OF_ 211-17 _STUDIES. (a) The Parks and Wildlife Department, the commission,_ 211-18 _and the board, in cooperation with other appropriate governmental_ 211-19 _agencies, shall jointly establish and continuously maintain an_ 211-20 _instream flow data collection and evaluation program and shall_ 211-21 _conduct studies and analyses to determine appropriate methodologies_ 211-22 _for determining flow conditions in the state's rivers and streams_ 211-23 _necessary to support a sound ecological environment. Any stream_ 211-24 _that consists only of floodwaters and is dry more than 75 percent_ 211-25 _of the year is exempt from this section._ 211-26 _(b) The Parks and Wildlife Department, the commission, and_ 212-1 _the board shall each designate an employee to share equally in the_ 212-2 _oversight of the program studies. Other responsibilities shall be_ 212-3 _divided between the Parks and Wildlife Department, the commission,_ 212-4 _and the board to maximize present in-house capabilities of_ 212-5 _personnel and equipment and to minimize costs to the state._ 212-6 _(c) The Parks and Wildlife Department, the commission, and_ 212-7 _the board shall each have reasonable access to all data, studies,_ 212-8 _analyses, information, and reports produced by the other agencies._ 212-9 _(d) The priority studies shall be completed not later than_ 212-10 _December 31, 2010. The Parks and Wildlife Department, the_ 212-11 _commission, and the board shall establish a work plan that_ 212-12 _prioritizes the studies and that sets interim deadlines providing_ 212-13 _for publication of flow determinations for individual rivers and_ 212-14 _streams on a reasonably consistent basis throughout the prescribed_ 212-15 _study period. Before publication, completed studies shall be_ 212-16 _submitted for comment to the commission, the board, and the Parks_ 212-17 _and Wildlife Department._ 212-18 _(e) Results of studies completed under this section shall be_ 212-19 _considered by the commission in its review of any management plan,_ 212-20 _water right, or interbasin transfer._ 212-21 _(f) The board may authorize the use of money from the_ 212-22 _research and planning fund established under Chapter 15 to_ 212-23 _accomplish the purposes of this section. The money shall be used_ 212-24 _by the board in cooperation with the commission and the Parks and_ 212-25 _Wildlife Department for interagency contracts with cooperating_ 212-26 _agencies and universities and contracts with private sector_ 213-1 _establishments, as necessary, to accomplish the purposes of this_ 213-2 _section._ 213-3 SECTION 4.18. Subsection (c), Section 17.853, Water Code, is 213-4 amended to read as follows: 213-5 (c) The board may use the fund only: 213-6 (1) to provide state matching funds for federal funds 213-7 provided to the state water pollution control revolving fund or to 213-8 any additional state revolving fund created under Subchapter J, 213-9 Chapter 15; 213-10 (2) to provide financial assistance from the proceeds 213-11 of taxable bond issues to water supply corporations organized under 213-12 Chapter 67, and other participants; 213-13 (3) to provide financial assistance to participants 213-14 for the construction of water supply projects and treatment works; 213-15 (4) to provide financial assistance for an interim 213-16 construction period to participants for projects for which the 213-17 board will provide long-term financing through the water 213-18 development fund; [and] 213-19 (5) to provide financial assistance for water supply 213-20 and sewer service projects in economically distressed areas as 213-21 provided by Subchapter K, Chapter 17, to the extent the board can 213-22 make that assistance without adversely affecting the current or 213-23 future integrity of the fund or of any other financial assistance 213-24 program of the board_; and_ 213-25 _(6) to provide funds to the water infrastructure fund_ 213-26 _created under Section 15.903_. 214-1 SECTION 4.19. Subdivisions (2) and (6), Section 17.871, 214-2 Water Code, are amended to read as follows: 214-3 (2) "Borrower district" means a _political subdivision,_ 214-4 _including a_ district or authority created under Article III, 214-5 Sections 52(b)(1) and (2), or Article XVI, Section 59, of the Texas 214-6 Constitution, that receives or is eligible to receive a 214-7 conservation loan from the board for _a purpose described by Section_ 214-8 _17.895 or 17.8955_ [improvement to district facilities]. 214-9 (6) "Lender district" means a _political subdivision,_ 214-10 _including a_ soil and water conservation district under Chapter 201, 214-11 Agriculture Code, _a groundwater_ [an underground water] conservation 214-12 district created under Article XVI, Section 59, of the Texas 214-13 Constitution, or a district or authority created under Article III, 214-14 Section 52(b)(1), or Article XVI, Section 59, of the Texas 214-15 Constitution authorized to supply water for irrigation purposes, 214-16 that is eligible to receive or that receives a loan from the board 214-17 for the purpose of making conservation loans to individual 214-18 borrowers. 214-19 SECTION 4.20. Section 17.895, Water Code, is amended to read 214-20 as follows: 214-21 Sec. 17.895. CONSERVATION LOANS. (a) _This section applies_ 214-22 _only to a conservation loan from a lender district that is:_ 214-23 _(1) a soil and water conservation district under_ 214-24 _Chapter 201, Agriculture Code;_ 214-25 _(2) a groundwater conservation district created under_ 214-26 _Section 59, Article XVI, Texas Constitution; or_ 215-1 _(3) a district or authority created under Section_ 215-2 _52(b)(1), Article III, or Section 59, Article XVI, Texas_ 215-3 _Constitution._ 215-4 _(b)_ The board or _a_ lender _district_ [districts] may make 215-5 conservation loans for capital equipment or materials, labor, 215-6 preparation costs, and installation costs: 215-7 (1) to improve water use efficiency of water delivery 215-8 and application on existing irrigation systems; 215-9 (2) for preparing irrigated land to be converted to 215-10 dryland conditions; _and_ 215-11 (3) for preparing dryland for more efficient use of 215-12 natural precipitation[;] 215-13 [(4) for preparing and maintaining land to be used for 215-14 brush control activities, including but not limited to activities 215-15 conducted pursuant to Chapter 203, Agriculture Code; or] 215-16 [(5) for implementing precipitation enhancement 215-17 activities in areas of the state where such activities would be, in 215-18 the board's judgment, most effective]. 215-19 _(c)_ [(b)] Conservation loans for the purposes listed in 215-20 Subsection _(b)_ [(a)] may be made by lender districts to individual 215-21 borrowers for use on private property or by the board to borrower 215-22 districts [for use on district facilities]. 215-23 _(d)_ [(c)] The board may make conservation loans to borrower 215-24 districts for the cost of purchasing and installing devices, on 215-25 public or private property, designed to indicate the amount of 215-26 water withdrawn for irrigation purposes. 216-1 _(e)_ [(d)] For purposes of this section, the board or lender 216-2 districts may seek the advice of the Department of Agriculture 216-3 regarding the feasibility of a project for which a conservation 216-4 loan is sought. 216-5 SECTION 4.21. Subchapter J, Chapter 17, Water Code, is 216-6 amended by adding Section 17.8955 to read as follows: 216-7 _Sec. 17.8955. CONSERVATION LOANS FOR BRUSH CONTROL AND_ 216-8 _PRECIPITATION ENHANCEMENT. (a) The board or a lender district may_ 216-9 _make a conservation loan for capital equipment or materials, labor,_ 216-10 _preparation costs, and installation costs for:_ 216-11 _(1) preparing and maintaining land to be used for_ 216-12 _brush control activities, including activities conducted under_ 216-13 _Chapter 203, Agriculture Code; or_ 216-14 _(2) implementing precipitation enhancement activities_ 216-15 _in areas of the state where those activities would be, in the_ 216-16 _board's judgment, most effective._ 216-17 _(b) A conservation loan for a purpose listed in Subsection_ 216-18 _(a) may be made by a lender district to an individual borrower for_ 216-19 _use on private property or by the board to a borrower district._ 216-20 SECTION 4.22. Subchapter L, Chapter 17, Water Code, is 216-21 amended by adding Section 17.9615 to read as follows: 216-22 _Sec. 17.9615. TRANSFERS TO RURAL WATER ASSISTANCE FUND._ 216-23 _(a) The board may direct the comptroller to transfer amounts from_ 216-24 _the financial assistance account to the rural water assistance fund_ 216-25 _to provide financial assistance under this subchapter for the_ 216-26 _purposes provided in Section 15.954._ 217-1 _(b) The board shall use the rural water assistance fund as a_ 217-2 _source of revenue to be deposited in accordance with this_ 217-3 _subchapter for the payment of principal and interest on water_ 217-4 _financial assistance bonds issued by the board, the proceeds of_ 217-5 _which are to be deposited into the rural water assistance fund and_ 217-6 _to be used to make payments under a bond enhancement agreement with_ 217-7 _respect to principal or interest on the water financial assistance_ 217-8 _bonds._ 217-9 SECTION 4.23. Subchapter L, Chapter 17, Water Code, is 217-10 amended by adding Section 17.9616 to read as follows: 217-11 _Sec. 17.9616. TRANSFER TO WATER INFRASTRUCTURE FUND._ 217-12 _(a) The board may direct the comptroller to transfer amounts from_ 217-13 _the financial assistance account to the water infrastructure fund_ 217-14 _to provide financial assistance under this subchapter for the_ 217-15 _purposes provided in Section 15.904._ 217-16 _(b) The board shall use the water infrastructure fund as a_ 217-17 _source of revenue to be deposited in accordance with this_ 217-18 _subchapter for the payment of principal and interest on water_ 217-19 _financial assistance bonds issued by the board, the proceeds of_ 217-20 _which are to be deposited into the water infrastructure fund and to_ 217-21 _be used to make payments under a bond enhancement agreement with_ 217-22 _respect to principal or interest on the water financial assistance_ 217-23 _bonds._ 217-24 SECTION 4.24. Section 11.32, Tax Code, is amended to read as 217-25 follows: 217-26 Sec. 11.32. CERTAIN WATER CONSERVATION INITIATIVES. The 218-1 governing body of a taxing unit by official action of the governing 218-2 body adopted in the manner required by law for official actions may 218-3 exempt from taxation part or all of the assessed value of property 218-4 on which approved water conservation initiatives_, desalination_ 218-5 _projects, or brush control initiatives_ have been implemented. For 218-6 purposes of this section, approved water conservation_,_ 218-7 _desalination, and brush control_ initiatives shall be designated 218-8 pursuant to an ordinance or other law adopted by the governing 218-9 unit. 218-10 SECTION 4.25. Subchapter H, Chapter 151, Tax Code, is 218-11 amended by adding Section 151.355 to read as follows: 218-12 _Sec. 151.355. WATER-RELATED EXEMPTIONS. The following are_ 218-13 _exempted from taxes imposed by this chapter:_ 218-14 _(1) rainwater harvesting equipment or supplies, water_ 218-15 _recycling and reuse equipment or supplies, or other equipment,_ 218-16 _services, or supplies used to reduce or eliminate water use;_ 218-17 _(2) equipment, services, or supplies used for_ 218-18 _desalination of surface water or groundwater;_ 218-19 _(3) equipment, services, or supplies used for brush_ 218-20 _control designed to enhance the availability of water;_ 218-21 _(4) equipment, services, or supplies used for_ 218-22 _precipitation enhancement;_ 218-23 _(5) equipment, services, or supplies used to construct_ 218-24 _or operate a water or wastewater system or component of a system_ 218-25 _sponsored by a political subdivision, as defined by Section 15.001,_ 218-26 _Water Code, which is certified by the Texas Natural Resource_ 219-1 _Conservation Commission as providing regional water or wastewater_ 219-2 _service; and_ 219-3 _(6) equipment, services, or supplies used to construct_ 219-4 _or operate a water supply or wastewater system by a private entity_ 219-5 _as a public-private partnership, as certified by the political_ 219-6 _subdivision, as defined by Section 15.001, Water Code, that is a_ 219-7 _party to the project._ 219-8 ARTICLE 5. JOINT COMMITTEE ON WATER RESOURCES 219-9 SECTION 5.01. In this article, "committee" means the joint 219-10 committee on water resources. 219-11 SECTION 5.02. The committee shall conduct an interim study 219-12 and make recommendations regarding: 219-13 (1) increasing the efficient use of existing water 219-14 resources; 219-15 (2) developing sufficient long-term water financing 219-16 strategies; 219-17 (3) improving existing water conveyance systems; 219-18 (4) water marketing; 219-19 (5) determining the appropriate role of environmental 219-20 and wildlife concerns in water permitting and water development; 219-21 and 219-22 (6) protection of the natural condition of beds and 219-23 banks of the state-owned watercourses. 219-24 SECTION 5.03. The committee is composed of six members as 219-25 follows: 219-26 (1) the chair of the Senate Committee on Natural 220-1 Resources and the chair of the House Committee on Natural 220-2 Resources; 220-3 (2) two members of the senate appointed by the 220-4 lieutenant governor; and 220-5 (3) two members of the house of representatives 220-6 appointed by the speaker of the house of representatives. 220-7 SECTION 5.04. The committee shall: 220-8 (1) meet at least annually with the Texas Natural 220-9 Resource Conservation Commission and the Texas Water Development 220-10 Board; and 220-11 (2) receive information relating to: 220-12 (A) encouraging the effective development of 220-13 water marketing and water movement; 220-14 (B) prioritizing the use of state funds for 220-15 financing the development and conservation of water resources; and 220-16 (C) identifying reasonable mechanisms, including 220-17 measures for encouraging donation of water rights, for protecting 220-18 instream uses. 220-19 SECTION 5.05. Not later than November 1, 2002, the committee 220-20 shall make a final report to the lieutenant governor, the speaker 220-21 of the house of representatives, and the 78th Legislature 220-22 evaluating the issues described in Section 5.02 of this article. 220-23 SECTION 5.06. The committee has the authority necessary to 220-24 perform its duties and, in connection with those duties, may call 220-25 and hold hearings. 220-26 SECTION 5.07. The committee may request the assistance of 221-1 state agencies, departments, or offices to carry out its duties. 221-2 SECTION 5.08. The Senate Committee on Natural Resources and 221-3 the House Committee on Natural Resources shall provide staff to the 221-4 committee. 221-5 SECTION 5.09. The committee shall submit a proposed budget 221-6 to the appropriate committee on administration in each house of the 221-7 legislature. The administration committees shall jointly approve 221-8 the committee budget in an amount appropriate for the committee to 221-9 accomplish its duties under this article. 221-10 SECTION 5.10. The committee may travel around the state and 221-11 hold hearings or public meetings as needed to fulfill its duties 221-12 under this article. 221-13 SECTION 5.11. This article expires and the committee is 221-14 abolished on January 1, 2003. 221-15 ARTICLE 6. RULEMAKING PROCEDURES FOR THE EDWARDS 221-16 AQUIFER AUTHORITY 221-17 SECTION 6.01. Chapter 626, Acts of the 73rd Legislature, 221-18 Regular Session, 1993, is amended by adding Section 1.115 to read 221-19 as follows: 221-20 _Sec. 1.115. RULEMAKING PROCEDURES. (a) The authority shall_ 221-21 _comply with the procedures provided by this section in adopting_ 221-22 _rules._ 221-23 _(b) The authority shall provide, by using the United States_ 221-24 _mail, notice of a proposed rule to all applicants and permit_ 221-25 _holders. The authority shall publish in a newspaper of general_ 221-26 _circulation within the boundaries of the authority notice of a_ 222-1 _public hearing on a proposed rule at least 14 days before the date_ 222-2 _of the public hearing on the rule. The notice must include:_ 222-3 _(1) the date, time, and place of the public hearing;_ 222-4 _(2) a statement of the general subject matter of the_ 222-5 _proposed rule;_ 222-6 _(3) the procedures for obtaining copies of the_ 222-7 _proposed rule and for submitting comments; and_ 222-8 _(4) the deadline for submitting comments._ 222-9 _(c) The board shall allow at least 45 days for comment on a_ 222-10 _proposed rule, other than an emergency rule, before the board_ 222-11 _adopts the rule. The board shall consider all written comments and_ 222-12 _shall, in the order adopting the rule, state the reasons and_ 222-13 _justification for the rule and the authority's responses to the_ 222-14 _written comments._ 222-15 _(d) The meeting at which a proposed rule is adopted as a_ 222-16 _final rule must be an open meeting, and the public must be allowed_ 222-17 _to make comments on the proposed rule and the agency responses. A_ 222-18 _proposed rule becomes final and effective on the 10th day after the_ 222-19 _date the rule is adopted by the board._ 222-20 _(e) Notwithstanding Subsections (b)-(d) of this section, the_ 222-21 _board may adopt emergency rules in anticipation of imminent harm to_ 222-22 _human health, safety, or welfare, or if compliance with the_ 222-23 _procedures provided in Subsections (b)-(d) of this section would_ 222-24 _prevent an effective response to emergency aquifer or springflow_ 222-25 _conditions. The board may adopt emergency rules five days after_ 222-26 _providing public notice. Emergency rules are effective immediately_ 223-1 _on adoption for a period of 120 days and may be renewed once for_ 223-2 _not more than 60 days._ 223-3 _(f) Subsections (b)-(d) of this section do not apply to the_ 223-4 _adoption of bylaws or internal procedures of the board and_ 223-5 _authority._ 223-6 SECTION 6.02. Section 1.15, Chapter 626, Acts of the 73rd 223-7 Legislature, Regular Session, 1993, is amended by adding 223-8 Subsections (e) and (f) to read as follows: 223-9 _(e) The authority shall conduct a contested case hearing on_ 223-10 _a permit application if a person with a personal justiciable_ 223-11 _interest related to the application requests a hearing on the_ 223-12 _application._ 223-13 _(f) The authority shall adopt rules establishing procedures_ 223-14 _for contested case hearings consistent with Subchapters C, D, and_ 223-15 _F, Chapter 2001, Government Code._ 223-16 SECTION 6.03. Subsection (h), Section 1.11, and Subsection 223-17 (e), Section 1.41, Chapter 626, Acts of the 73rd Legislature, 223-18 Regular Session, 1993, are repealed. 223-19 SECTION 6.04. A rule adopted by the Edwards Aquifer 223-20 Authority before the effective date of this Act remains in effect 223-21 until repealed, amended, or readopted. Nothing contained in this 223-22 article shall be construed as repealing the applicability of the 223-23 open meetings law, Chapter 551, Government Code, or the public 223-24 information law, Chapter 552, Government Code, to the Edwards 223-25 Aquifer Authority. 223-26 SECTION 6.05. The rules in 31 T.A.C. Part 20 shall continue 224-1 in effect until replaced by rules adopted pursuant to this article. 224-2 The secretary of state shall delete 31 T.A.C. Part 20. 224-3 ARTICLE 7. LIMITED LIABILITY FOR AQUATIC HERBICIDE APPLICATION 224-4 SECTION 7.01. Subchapter B, Chapter 26, Water Code, is 224-5 amended by adding Section 26.050 to read as follows: 224-6 _Sec. 26.050. LIMITED LIABILITY FOR AQUATIC HERBICIDE_ 224-7 _APPLICATION. (a) In this section, "commercially licensed aquatic_ 224-8 _herbicide applicator" means a person who holds a commercial_ 224-9 _applicator license issued by the Department of Agriculture under_ 224-10 _Chapter 76, Agriculture Code, to apply aquatic herbicides._ 224-11 _(b) Except as provided by Chapter 12, Parks and Wildlife_ 224-12 _Code, a commercially licensed aquatic herbicide applicator working_ 224-13 _under contract with a river authority organized pursuant to Section_ 224-14 _59, Article XVI, Texas Constitution, is not liable for damages in_ 224-15 _excess of $2 million for each occurrence of personal injury,_ 224-16 _property damage, or death resulting directly or indirectly from the_ 224-17 _application of aquatic herbicide in compliance with such contract,_ 224-18 _applicable law, and the license terms or permit._ 224-19 _(c) The control and elimination of noxious weeds, grasses,_ 224-20 _and vegetation in the rivers, tributaries, impoundments, and_ 224-21 _reservoirs of the state through the application by river_ 224-22 _authorities or their agents, employees, or contractors, in_ 224-23 _compliance with applicable law, licenses, and permits, of aquatic_ 224-24 _herbicides are essential governmental functions, and except to the_ 224-25 _extent provided in Chapter 101, Civil Practice and Remedies Code,_ 224-26 _nothing herein shall be deemed or construed to waive, limit, or_ 225-1 _restrict the governmental immunity of river authorities in the_ 225-2 _performance of such governmental functions._ 225-3 _(d) The limited liability provided by this section does not_ 225-4 _apply to a commercially licensed aquatic herbicide applicator if_ 225-5 _the applicator uses the wrong aquatic herbicide, fails to follow_ 225-6 _manufacturers' warnings, instructions, and directions for the_ 225-7 _application of the aquatic herbicide, fails to follow the_ 225-8 _directions of the river authority concerning the application of the_ 225-9 _aquatic herbicide, or applies the aquatic herbicide in a manner_ 225-10 _that violates federal or state law, rules, or regulations._ 225-11 ARTICLE 8. CONCENTRATED ANIMAL FEEDING OPERATIONS 225-12 SECTION 8.01. Section 26.0286, Water Code, is amended to 225-13 read as follows: 225-14 Sec. 26.0286. PROCEDURES APPLICABLE TO PERMITS FOR CERTAIN 225-15 CONCENTRATED ANIMAL FEEDING OPERATIONS. (a) In this section_:_ 225-16 _(1) "Sole-source_[, "sole-source] surface drinking 225-17 water supply" means a body of surface water that[:] 225-18 [(1)] is designated as a _sole-source surface drinking_ 225-19 [public] water supply in rules adopted by the commission [under 225-20 Section 26.023; and] 225-21 [(2) is the single source of supply of a public water 225-22 supply system, exclusive of emergency water interconnections]. 225-23 _(2) "Protection zone" means an area so designated by_ 225-24 _commission rule under Subsection (c)._ 225-25 (b) The commission shall process an application for 225-26 authorization to construct or operate a concentrated animal feeding 226-1 operation as a specific permit under Section 26.028 subject to the 226-2 procedures provided by Subchapter M, Chapter 5, if_, on the date the_ 226-3 _commission determines that the application is administratively_ 226-4 _complete, any part of a pen, lot, pond, or other type of control or_ 226-5 _retention facility or structure of_ the concentrated animal feeding 226-6 operation is located or proposed to be located _within the_ 226-7 _protection zone of a sole-source surface drinking water supply._ 226-8 _For the purposes of this subsection, a land application area is not_ 226-9 _considered a control or retention facility_[:] 226-10 [(1) in the watershed of a sole-source surface 226-11 drinking water supply; and] 226-12 [(2) sufficiently close, as determined by the 226-13 commission by rule, to an intake of a public water supply system in 226-14 the sole-source surface drinking water supply that contaminants 226-15 discharged from the concentrated animal feeding operation could 226-16 potentially affect the public drinking water supply]. 226-17 _(c) For the purposes of this section only, the commission by_ 226-18 _rule shall designate a surface water body as a sole-source surface_ 226-19 _drinking water supply if that surface water body is identified as a_ 226-20 _public water supply in rules adopted by the commission under_ 226-21 _Section 26.023 and is the sole source of supply of a public water_ 226-22 _supply system, exclusive of emergency water connections. At the_ 226-23 _same time, the commission shall designate as a protection zone any_ 226-24 _area within the watershed of a sole-source surface drinking water_ 226-25 _supply that is:_ 226-26 _(1) within two miles of the normal pool elevation of a_ 227-1 _body of surface water that is a sole-source surface drinking water_ 227-2 _supply;_ 227-3 _(2) within two miles of that part of a perennial_ 227-4 _stream that is:_ 227-5 _(A) a tributary of a sole-source surface_ 227-6 _drinking water supply; and_ 227-7 _(B) within three linear miles upstream of the_ 227-8 _normal pool elevation of a sole-source surface drinking water_ 227-9 _supply; or_ 227-10 _(3) within two miles of that part of a stream that is_ 227-11 _a sole-source surface drinking water supply, extending three linear_ 227-12 _miles upstream from the water supply intake._ 227-13 SECTION 8.02. Not later than the 45th day after the 227-14 effective date of this Act, the Texas Natural Resource Conservation 227-15 Commission by order shall identify surface water bodies that are 227-16 considered "sole-source surface drinking water supplies" for 227-17 purposes of Subsection (b), Section 26.0286, Water Code, as amended 227-18 by this Act, and shall designate the protection zones for those 227-19 identified water bodies. The order expires on the date on which 227-20 the commission adopts final rules under Subsection (c), Section 227-21 26.0286, Water Code, as added by this Act. 227-22 ARTICLE 9. REVOCATION OF CERTIFICATE OF PUBLIC UTILITY 227-23 SECTION 9.01. Subchapter G, Chapter 13, Water Code, is 227-24 amended by adding Section 13.2541 to read as follows: 227-25 _Sec. 13.2541. REVOCATION OF CERTIFICATE WHEN SERVICE_ 227-26 _PROVIDED TO A MUNICIPALITY. (a) This section applies only to a_ 228-1 _municipality with a population of more than 1.3 million._ 228-2 _(b) On request of a municipality served by a public utility,_ 228-3 _the commission at any time after notice and hearing may revoke the_ 228-4 _public utility's certificate of public convenience and necessity if_ 228-5 _it finds that the public utility:_ 228-6 _(1) has never provided, is no longer providing, or has_ 228-7 _failed to provide continuous and adequate service in the_ 228-8 _municipality requesting the revocation; or_ 228-9 _(2) has been grossly or continuously mismanaged or has_ 228-10 _grossly or continuously not complied with this chapter, commission_ 228-11 _rules, or commission orders._ 228-12 _(c) If the certificate of a public utility is revoked under_ 228-13 _Subsection (b), the municipality that requested the revocation_ 228-14 _shall operate the decertified public utility for an interim period_ 228-15 _prescribed by commission rule and shall request commission approval_ 228-16 _to acquire the decertified public utility's facilities and to_ 228-17 _transfer the decertified public utility's certificate of_ 228-18 _convenience and necessity to the municipality. The municipality_ 228-19 _must apply in accordance with Subchapter H._ 228-20 _(d) The compensation paid to the decertified public utility_ 228-21 _for its facilities shall be determined by a qualified individual or_ 228-22 _firm serving as independent appraiser agreed upon by the_ 228-23 _decertified public utility and the municipality. The determination_ 228-24 _of compensation by the independent appraiser shall be binding on_ 228-25 _the commission. The municipality shall pay the costs of the_ 228-26 _independent appraiser. For the purpose of implementing this_ 229-1 _section, the value of real property shall be determined according_ 229-2 _to the standards prescribed by Chapter 21, Property Code, governing_ 229-3 _actions in eminent domain._ 229-4 _(e) The commission shall determine whether the municipality_ 229-5 _shall pay the compensation in a lump sum or over a specified_ 229-6 _period._ 229-7 ARTICLE 10. WATER UTILITY SYSTEMS 229-8 SECTION 10.01. Section 13.137, Water Code, is amended to 229-9 read as follows: 229-10 Sec. 13.137. OFFICE _AND OTHER BUSINESS LOCATIONS_ OF UTILITY; 229-11 RECORDS; REMOVAL FROM STATE. (a) Every utility shall_:_ 229-12 _(1) make available and notify its customers of a_ 229-13 _business location where its customers may make payments to prevent_ 229-14 _disconnection of or to restore service:_ 229-15 _(A) in each county in which the utility provides_ 229-16 _service; or_ 229-17 _(B) not more than 20 miles from the residence of_ 229-18 _any residential customer if there is no location to receive_ 229-19 _payments in the county; and_ 229-20 _(2)_ have an office in a county of this state or in the 229-21 immediate area in which its property or some part of its property 229-22 is located in which it shall keep all books, accounts, records, and 229-23 memoranda required by the commission to be kept in this state. 229-24 (b) _The commission by rule may provide for waiving the_ 229-25 _requirements of Subsection (a)(1) for a utility for which meeting_ 229-26 _those requirements would cause a rate increase or otherwise harm or_ 230-1 _inconvenience customers. The rules must provide for an additional_ 230-2 _14 days to be given for a customer to pay before a utility that is_ 230-3 _granted a waiver may disconnect service for late payment._ 230-4 _(c)_ Books, accounts, records, or memoranda required by the 230-5 regulatory authority to be kept in the state may not be removed 230-6 from the state, except on conditions prescribed by the commission. 230-7 SECTION 10.02. Section 13.144, Water Code, is amended to 230-8 read as follows: 230-9 Sec. 13.144. NOTICE OF WHOLESALE WATER SUPPLY CONTRACT. A 230-10 district or authority created under Section 52, Article III, or 230-11 Section 59, Article XVI, Texas Constitution, a retail public 230-12 utility, a wholesale water service, or other person providing a 230-13 retail public utility with a wholesale water supply shall provide 230-14 the commission with a certified copy of any wholesale water supply 230-15 contract with a retail public utility within 30 days after the date 230-16 of the execution of the contract. The submission must include the 230-17 amount of water being supplied, term of the contract, consideration 230-18 being given for the water, purpose of use, location of use, source 230-19 of supply, point of delivery, limitations on the reuse of water, _a_ 230-20 _disclosure of any affiliated interest between the parties to the_ 230-21 _contract,_ and any other condition or agreement relating to the 230-22 contract. 230-23 SECTION 10.03. Subchapter E, Chapter 13, Water Code, is 230-24 amended by adding Section 13.145 to read as follows: 230-25 _Sec. 13.145. MULTIPLE SYSTEMS CONSOLIDATED UNDER TARIFF. A_ 230-26 _utility may consolidate more than one system under a single tariff_ 231-1 _only if:_ 231-2 _(1) the systems under the tariff are substantially_ 231-3 _similar in terms of facilities, quality of service, and cost of_ 231-4 _service; and_ 231-5 _(2) the tariff provides for rates that promote water_ 231-6 _conservation for single-family residences and landscape irrigation._ 231-7 SECTION 10.04. Section 13.182, Water Code, is amended to 231-8 read as follows: 231-9 Sec. 13.182. JUST AND REASONABLE RATES. _(a)_ The regulatory 231-10 authority shall ensure that every rate made, demanded, or received 231-11 by any utility or by any two or more utilities jointly shall be 231-12 just and reasonable. 231-13 _(b)_ Rates shall not be unreasonably preferential, 231-14 prejudicial, or discriminatory but shall be sufficient, equitable, 231-15 and consistent in application to each class of consumers. 231-16 _(c)_ For ratemaking purposes, the commission may treat two or 231-17 more municipalities served by a utility as a single class wherever 231-18 the commission considers that treatment to be appropriate. 231-19 _(d) The commission by rule shall establish a preference that_ 231-20 _rates under a consolidated tariff be consolidated by region. The_ 231-21 _regions under consolidated tariffs must be determined on a_ 231-22 _case-by-case basis._ 231-23 SECTION 10.05. Section 13.183, Water Code, is amended by 231-24 amending Subsection (c) and adding Subsections (d) and (e) to read 231-25 as follows: 231-26 (c) To ensure that retail customers receive a higher 232-1 quality_, more affordable,_ or more reliable water or sewer service, 232-2 to encourage regionalization, or to maintain financially stable and 232-3 technically sound utilities, the regulatory authority_, by rule or_ 232-4 _ordinance, as appropriate, may adopt specific alternative_ 232-5 _ratemaking_ [may develop] methodologies for water or sewer rates 232-6 based on factors other than rate of return and those specified in 232-7 Section 13.185. Overall revenues determined _according_ [pursuant] 232-8 to an _alternative ratemaking_ [alternate] methodology _adopted_ 232-9 [developed] under this section must provide revenues to the utility 232-10 that satisfy the requirements of Subsection (a). _The regulatory_ 232-11 _authority may not approve rates under an alternative ratemaking_ 232-12 _methodology unless the regulatory authority adopts the methodology_ 232-13 _before the date the rate application was administratively complete._ 232-14 _(d) A regulatory authority other than the commission may not_ 232-15 _approve an acquisition adjustment for a system purchased before the_ 232-16 _effective date of an ordinance authorizing acquisition adjustments._ 232-17 _(e)_ In determining to use _an alternative ratemaking_ 232-18 _methodology_ [alternate ratemaking methodologies], the regulatory 232-19 authority shall assure that rates, operations, and services are 232-20 just and reasonable to the consumers and to the utilities. 232-21 SECTION 10.06. Section 13.187, Water Code, is amended to 232-22 read as follows: 232-23 Sec. 13.187. STATEMENT OF INTENT TO CHANGE RATES; HEARING; 232-24 DETERMINATION OF RATE LEVEL. (a) A utility may not make changes 232-25 in its rates except by delivering a statement of intent to each 232-26 ratepayer and with the regulatory authority having original 233-1 jurisdiction at least _60_ [30] days before the effective date of the 233-2 proposed change. The effective date of the new rates must be the 233-3 first day of a billing period, and the new rates may not apply to 233-4 service received before the effective date of the new rates. The 233-5 statement of intent must include_:_ 233-6 _(1)_ the information required by the regulatory 233-7 authority's rules_;_ 233-8 _(2) a billing comparison regarding the existing water_ 233-9 _rate and the new water rate computed for the use of:_ 233-10 _(A) 10,000 gallons of water; and_ 233-11 _(B) 30,000 gallons of water; and_ 233-12 _(3) a billing comparison regarding the existing sewer_ 233-13 _rate and the new sewer rate computed for the use of 10,000 gallons,_ 233-14 _unless the utility proposes a flat rate for sewer services_. 233-15 _(b)_ A copy of the statement of intent shall be mailed or 233-16 delivered to the appropriate offices of each affected municipality, 233-17 and to any other affected persons as required by the regulatory 233-18 authority's rules. 233-19 _(c)_ When the statement of intent is delivered, the utility 233-20 shall file with the regulatory authority an application to change 233-21 rates. The application must include information the regulatory 233-22 authority requires by rule. If the utility fails to provide within 233-23 a reasonable time after the application is filed the necessary 233-24 documentation or other evidence that supports the costs and 233-25 expenses that are shown in the application, the regulatory 233-26 authority may disallow the nonsupported expenses. 234-1 _(d)_ If the application or the statement of intent is not 234-2 substantially complete or does not comply with the regulatory 234-3 authority's rules, it may be rejected and the effective date of the 234-4 rate change may be suspended until a properly completed application 234-5 is accepted by the regulatory authority and a proper statement of 234-6 intent is provided. The commission may also suspend the effective 234-7 date of any rate change if the utility does not have a certificate 234-8 of public convenience and necessity or a completed application for 234-9 a certificate or to transfer a certificate pending before the 234-10 commission or if the utility is delinquent in paying the assessment 234-11 and any applicable penalties or interest required by Section 234-12 5.235(n) of this code. 234-13 _(e)_ [(b)] If, _before the 91st day_ [within 60 days] after the 234-14 effective date of the rate change, the regulatory authority 234-15 receives a complaint from any affected municipality, or from the 234-16 lesser of 1,000 or 10 percent of the ratepayers of the utility over 234-17 whose rates the regulatory authority has original jurisdiction, the 234-18 regulatory authority shall set the matter for hearing. 234-19 _(f)_ The regulatory authority may set the matter for hearing 234-20 on its own motion at any time within 120 days after the effective 234-21 date of the rate change. If more than half of the ratepayers of 234-22 the utility receive service in a county with a population of more 234-23 than 2.5 million, the hearing must be held at a location in that 234-24 county. 234-25 _(g)_ The hearing may be informal. 234-26 _(h)_ If, after hearing, the regulatory authority finds the 235-1 rates currently being charged or those proposed to be charged are 235-2 unreasonable or in violation of law, the regulatory authority shall 235-3 determine the rates to be charged by the utility and shall fix the 235-4 rates by order served on the utility. 235-5 _(i)_ [(c)] The regulatory authority, pending final action in 235-6 a rate proceeding, may order the utility to deposit all or part of 235-7 the rate increase received or to be received into an escrow account 235-8 with a financial institution approved by the regulatory authority. 235-9 Unless otherwise agreed to by the parties to the rate proceeding, 235-10 the utility shall refund or credit against future bills all sums 235-11 collected during the pendency of the rate proceeding in excess of 235-12 the rate finally ordered plus interest as determined by the 235-13 regulatory authority. 235-14 _(j)_ For good cause shown, the regulatory authority may 235-15 authorize the release of funds to the utility from the escrow 235-16 account during the pendency of the proceeding. 235-17 _(k) If the regulatory authority receives at least the number_ 235-18 _of complaints from ratepayers required for the regulatory authority_ 235-19 _to set a hearing under Subsection (e), the regulatory authority_ 235-20 _may, pending the hearing and a decision, suspend the date the rate_ 235-21 _change would otherwise be effective. The proposed rate may not be_ 235-22 _suspended for longer than:_ 235-23 _(1) 90 days by a local regulatory authority; or_ 235-24 _(2) 150 days by the commission._ 235-25 _(l)_ At any time during the pendency of the rate proceeding 235-26 the regulatory authority may fix interim rates to remain in effect 236-1 until a final determination is made _on the proposed rate_. 236-2 _(m)_ If the regulatory authority sets a final rate that is 236-3 higher than the interim rate, the utility shall be allowed to 236-4 collect the difference between the interim rate and final rate 236-5 unless otherwise agreed to by the parties to the rate proceeding. 236-6 _(n) For good cause shown, the regulatory authority may at_ 236-7 _any time during the proceeding require the utility to refund money_ 236-8 _collected under a proposed rate before the rate was suspended or an_ 236-9 _interim rate was established to the extent the proposed rate_ 236-10 _exceeds the existing rate or the interim rate._ 236-11 _(o)_ If _a_ [the] regulatory authority _other than the_ 236-12 _commission_ establishes interim rates or an escrow account, the 236-13 regulatory authority must make a final determination on the rates 236-14 _not later than the first anniversary of_ [within 335 days after] the 236-15 effective date of the interim rates or escrowed rates or the rates 236-16 are automatically approved as requested by the utility. 236-17 _(p)_ [(d)] Except to implement a rate adjustment provision 236-18 approved by the regulatory authority by rule or ordinance, as 236-19 applicable, or to adjust the rates of a newly acquired utility 236-20 system, a utility or two or more utilities under common control and 236-21 ownership may not file a statement of intent to increase its rates 236-22 more than once in a 12-month period, unless the regulatory 236-23 authority determines that a financial hardship exists. If the 236-24 regulatory authority requires the utility to deliver a corrected 236-25 statement of intent, the utility is not considered to be in 236-26 violation of the 12-month filing requirement. 237-1 SECTION 10.07. Subchapter I, Chapter 13, Water Code, is 237-2 amended by adding Section 13.343 to read as follows: 237-3 _Sec. 13.343. WHOLESALE WATER CONTRACTS BETWEEN CERTAIN_ 237-4 _AFFILIATES. (a) The owner of a utility that supplies retail water_ 237-5 _service may not contract to purchase from an affiliated supplier_ 237-6 _wholesale water service for any of that owner's systems unless:_ 237-7 _(1) the wholesale service is provided for not more_ 237-8 _than 90 days to remedy an emergency condition, as defined by_ 237-9 _commission rule; or_ 237-10 _(2) the executive director determines that the utility_ 237-11 _cannot obtain wholesale water service from another source at a_ 237-12 _lower cost than from the affiliate._ 237-13 _(b) The utility may not purchase groundwater from any_ 237-14 _provider if:_ 237-15 _(1) the source of the groundwater is located in a_ 237-16 _priority groundwater management area; and_ 237-17 _(2) a wholesale supply of surface water is available._ 237-18 SECTION 10.08. (a) The changes in law made by this article 237-19 to Chapter 13, Water Code, apply to a proceeding in which the Texas 237-20 Natural Resource Conservation Commission has not issued a final 237-21 order before the effective date of this article; provided, however, 237-22 that this article does not apply to a retail public utility for 237-23 which a final order in any rate proceeding has been issued by the 237-24 Texas Natural Resource Conservation Commission prior to January 1, 237-25 2001, as long as that retail public utility is the same as, 237-26 controlled by, or an affiliate of the retail public utility for 238-1 which a final order was issued prior to January 1, 2001. This 238-2 subsection shall not be construed to permit a public utility to 238-3 increase rates without obtaining the approval of the Texas Natural 238-4 Resource Conservation Commission. 238-5 (b) Section 13.343, Water Code, as added by this article, 238-6 does not apply to a contract executed before the effective date of 238-7 this article. A contract executed before the effective date of 238-8 this article is governed by the law in effect on the date it was 238-9 executed, and that law is continued in effect for that purpose. 238-10 ARTICLE 11. MISCELLANEOUS PROVISIONS 238-11 SECTION 11.01. Section 26.177, Water Code, is amended by 238-12 adding Subsection (h) to read as follows: 238-13 _(h) Property subject to a permit or plat in the_ 238-14 _extraterritorial jurisdiction of a municipality may not be_ 238-15 _subjected to new or additional water pollution regulations if the_ 238-16 _property is transferred to another municipality's extraterritorial_ 238-17 _jurisdiction, and all provisions of Chapter 245, Local Government_ 238-18 _Code, shall apply to the property. If the release of_ 238-19 _extraterritorial jurisdiction for the purpose of transferring it to_ 238-20 _another municipality results in property not being subject to any_ 238-21 _municipality's water pollution regulations on the date of release,_ 238-22 _the releasing municipality retains its jurisdiction to enforce its_ 238-23 _water pollution regulations until the property is included in the_ 238-24 _extraterritorial jurisdiction of the receiving municipality._ 238-25 SECTION 11.02. Section 26.359, Water Code, is amended to 238-26 read as follows: 239-1 Sec. 26.359. LOCAL REGULATION OR ORDINANCE. _(a) In this_ 239-2 _section, "local government" means a school district, county,_ 239-3 _municipality, junior college district, river authority, water_ 239-4 _district or other special district, or other political subdivision_ 239-5 _created under the constitution or a statute of this state._ 239-6 _(b) A_ [This subchapter establishes a unified statewide 239-7 program for underground and surface water protection, and any 239-8 local] regulation or ordinance _adopted by a local government that_ 239-9 _imposes standards_ [is effective only to the extent the regulation 239-10 or ordinance does not conflict with the standards adopted] for the 239-11 design, construction, installation, or operation of underground 239-12 storage tanks _is not valid_ [under this subchapter]. 239-13 _(c) This section does not apply to a rule adopted by the_ 239-14 _Edwards Aquifer Authority, or to a regulation or ordinance in_ 239-15 _effect as of January 1, 2001, or thereafter amended._ 239-16 SECTION 11.03. (a) Section 27.051, Water Code, is amended 239-17 by adding Subsection (h) to read as follows: 239-18 _(h) The commission may not authorize by rule or permit an_ 239-19 _injection well that transects or terminates in the Edwards Aquifer._ 239-20 _The commission by rule may authorize injection of groundwater_ 239-21 _withdrawn from the Edwards Aquifer, or injections of storm water,_ 239-22 _flood water, or groundwater through improved sinkholes or caves_ 239-23 _located in karst topographic areas. For purposes of this_ 239-24 _subsection, "Edwards Aquifer" has the meaning assigned by Section_ 239-25 _26.046(a)._ 239-26 (b) The change in law made by Subsection (h), Section 240-1 27.051, Water Code, as added by this section, applies only to an 240-2 application for a permit that is filed with the Texas Natural 240-3 Resource Conservation Commission on or after September 1, 2001. 240-4 SECTION 11.04. Section 36.121, Water Code, is amended to 240-5 read as follows: 240-6 Sec. 36.121. LIMITATION ON RULEMAKING POWER OF DISTRICTS 240-7 OVER WELLS IN CERTAIN COUNTIES. Except as provided by Section 240-8 36.117, a district that is created under this chapter on or after 240-9 September 1, 1991, shall exempt from regulation under this chapter 240-10 a well and any water produced or to be produced by a well that is 240-11 located in a county that has a population of 14,000 or less if the 240-12 water is to be used solely to supply a municipality that has a 240-13 population of _121,000_ [115,000] or less and the rights to the water 240-14 produced from the well are owned by a political subdivision that is 240-15 not a municipality, or by a municipality that has a population of 240-16 _100,000_ [93,000] or less, and that purchased, owned, or held rights 240-17 to the water before the date on which the district was created, 240-18 regardless of the date the well is drilled or the water is 240-19 produced. The district may not prohibit the political subdivision 240-20 or municipality from transporting produced water inside or outside 240-21 the district's boundaries. 240-22 ARTICLE 12. NORTH HARRIS COUNTY REGIONAL WATER AUTHORITY 240-23 SECTION 12.01. Subsection (a), Section 4.06, Chapter 1029, 240-24 Acts of the 76th Legislature, Regular Session, 1999, is amended to 240-25 read as follows: 240-26 (a) The authority may: 241-1 (1) acquire and provide by purchase, gift, [or] lease_,_ 241-2 _contract, or any other legal means,_ a water treatment or supply 241-3 system_, or any other works, plants, improvements, or facilities_ 241-4 _necessary or convenient to accomplish the purposes of the_ 241-5 _authority, or any interest in those assets,_ inside of or outside of 241-6 the authority's boundaries; 241-7 (2) design, finance, or construct a water treatment or 241-8 supply system_, or any other supply systems, or any other works,_ 241-9 _plants, improvements, or facilities necessary or convenient to_ 241-10 _accomplish the purposes of the authority,_ and provide water 241-11 services inside of or outside of the authority's boundaries; 241-12 (3) _maintain,_ operate, lease, or sell a water 241-13 treatment or supply system_, or any other works, plants,_ 241-14 _improvements, or facilities necessary or convenient to accomplish_ 241-15 _the purposes of the authority, that_ the authority constructs or 241-16 acquires _inside of or outside of the authority's boundaries_; and 241-17 (4) contract with any person to operate or maintain a 241-18 water treatment or supply system the person owns. 241-19 ARTICLE 13. REPORTS; REPEALER; TRANSITION; VALIDATION; 241-20 EFFECTIVE DATE 241-21 SECTION 13.01. BOARD STUDY AND REPORT ON FINANCING WATER 241-22 INFRASTRUCTURE PROJECTS. The Texas Water Development Board shall 241-23 consider the reports submitted by the regional planning groups 241-24 under Subsection (q), Section 16.053, Water Code, as added by this 241-25 Act, relating to financing water infrastructure projects and shall 241-26 consult with potentially impacted groups and other interested 242-1 persons regarding the information reported and the recommendations 242-2 made by the regional planning groups. Not later than October 1, 242-3 2002, the board shall submit to the legislature a report consisting 242-4 of the regional planning groups' reports and the board's analysis 242-5 of and recommendations regarding those reports. 242-6 SECTION 13.02. REPEALER. Sections 35.005 and 35.006, Water 242-7 Code, are repealed. 242-8 SECTION 13.03. TRANSITIONS. (a) The changes in law made by 242-9 this Act by amending Section 17.895, Water Code, and adding Section 242-10 17.8955, Water Code, apply only to a conservation loan for which an 242-11 application is filed on or after the effective date of this Act. A 242-12 conservation loan for which an application was filed before the 242-13 effective date of this Act is governed by the law in effect 242-14 immediately before that date, and that law is continued in effect 242-15 for that purpose. 242-16 (b) Not later than January 1, 2002, the Texas Water 242-17 Development Board shall adopt rules to administer Subchapter O, 242-18 Chapter 15, Water Code, as added by this Act, including rules 242-19 establishing procedures for applications for and the award of 242-20 financial assistance for water projects, for the investment of 242-21 funds, and for the administration of the water infrastructure fund, 242-22 as created by this Act. 242-23 (c) Not later than January 1, 2002, the Texas Water 242-24 Development Board shall adopt rules to administer Subchapter P, 242-25 Chapter 15, Water Code, as added by this Act, including 242-26 establishing procedures for the application for and award of loans, 243-1 the distribution of loans, the investment of funds, and the 243-2 administration of loans and the rural water assistance fund, as 243-3 created by this Act. 243-4 (d) Not later than January 1, 2002, the Texas Water 243-5 Development Board shall adopt rules requiring a holder of a surface 243-6 water permit, certified filing, or certificate of adjudication for 243-7 surface water, a holder of a permit for the export of groundwater 243-8 from a groundwater conservation district, a retail public water 243-9 supplier, a wholesale water provider, and an irrigation district to 243-10 report to the board information on certain water pipelines and 243-11 other facilities that can be used for water conveyance. 243-12 (e) The changes in law made by this Act by amending Sections 243-13 11.023 and 11.122, Water Code, shall not change the existing 243-14 priority of any industrial water right holder on the mainstem of 243-15 the Rio Grande below Amistad Reservoir who uses or supplies water 243-16 to a nursery grower. 243-17 (f) If any changes made by this Act to Chapter 36, Water 243-18 Code, conflict with changes made to Chapter 36, Water Code, by any 243-19 other Act passed by the 77th Legislature, Regular Session, 2001, 243-20 this Act shall prevail. 243-21 SECTION 13.04. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 243-22 (a) The proper and legal notice of the intention to introduce this 243-23 Act, setting forth the general substance of this Act, has been 243-24 published as provided by law, and the notice and a copy of this Act 243-25 have been furnished to all persons, agencies, officials, or 243-26 entities to which they are required to be furnished by the 244-1 constitution and other laws of this state, including the governor, 244-2 who has submitted the notice and Act to the Texas Natural Resource 244-3 Conservation Commission. 244-4 (b) The Texas Natural Resource Conservation Commission has 244-5 filed its recommendations relating to this Act with the governor, 244-6 lieutenant governor, and speaker of the house of representatives 244-7 within the required time. 244-8 (c) All requirements of the constitution and laws of the 244-9 state and the rules and procedures of the legislature with respect 244-10 to the notice, introduction, and passage of this Act are fulfilled 244-11 and accomplished. 244-12 SECTION 13.05. SEVERABILITY. If any provision of this Act 244-13 or its application to any person or circumstance is held invalid, 244-14 the invalidity does not affect other provisions or applications of 244-15 this Act that can be given effect without the invalid provision or 244-16 application, and to this end the provisions of this Act are 244-17 declared to be severable. 244-18 SECTION 13.06. EFFECTIVE DATE. This Act takes effect 244-19 September 1, 2001. S.B. No. 2 _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 2 passed the Senate on April 19, 2001, by a viva-voce vote; May 23, 2001, Senate refused to concur in House amendments and requested appointment of Conference Committee; May 24, 2001, House granted request of the Senate; May 27, 2001, Senate adopted Conference Committee Report by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 2 passed the House, with amendments, on May 22, 2001, by a non-record vote; May 24, 2001, House granted request of the Senate for appointment of Conference Committee; May 27, 2001, House adopted Conference Committee Report by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor