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House Bill 1784

 1-1                                   AN ACT

 1-2     relating to the ratification, creation, administration, powers,

 1-3     duties, operation, and financing of groundwater conservation

 1-4     districts in and coordinated management of groundwater resources

 1-5     for the central Carrizo-Wilcox area.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7                       ARTICLE 1.  GENERAL PROVISIONS

 1-8           SECTION 1.01.  TITLE. This Act may be referred to as the

 1-9     Central Carrizo-Wilcox Groundwater Management Act.

1-10           SECTION 1.02.  PURPOSE. The purpose of this Act is:

1-11                 (1)  to ratify and create locally controlled

1-12     groundwater districts in order to protect and recharge groundwater

1-13     and to prevent pollution or waste of groundwater in the central

1-14     Carrizo-Wilcox area, to control subsidence caused by withdrawal of

1-15     water from the groundwater reservoirs in that area, and to regulate

1-16     the transport of water out of the boundaries of the districts;

1-17                 (2)  to create the Central Carrizo-Wilcox Coordinating

1-18     Council to provide for the regional management of groundwater while

1-19     preserving local control, to protect and recharge groundwater, to

1-20     prevent pollution or waste of groundwater, and to control

1-21     subsidence caused by withdrawal of water from the groundwater

1-22     reservoirs; and

1-23                 (3)  to allow the groundwater conservation districts to

1-24     coordinate activities through the Central Carrizo-Wilcox

 2-1     Coordinating Council to the extent authorized by this Act and

 2-2     considered to be in the public interest.

 2-3         ARTICLE 2.  BRAZOS VALLEY GROUNDWATER CONSERVATION DISTRICT

 2-4           SECTION 2.01.  RATIFICATION OF CREATION. The creation by

 2-5     Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999

 2-6     (Senate Bill No. 1911), of the Brazos Valley Groundwater

 2-7     Conservation District in Robertson and Brazos counties is ratified

 2-8     as required by Section 15(a) of that Act, subject to approval at a

 2-9     confirmation election under Section 2.13 of this article.

2-10           SECTION 2.02.  DEFINITION. In this article, "district" means

2-11     the Brazos Valley Groundwater Conservation District.

2-12           SECTION 2.03.  BOUNDARIES. The boundaries of the district are

2-13     coextensive with the boundaries of Robertson and Brazos counties,

2-14     Texas.

2-15           SECTION 2.04.  GENERAL POWERS. (a)  Except as otherwise

2-16     provided by this article, the district has all of the rights,

2-17     powers, privileges, authority, functions, and duties provided by

2-18     the general law of this state, including Chapter 36, Water Code,

2-19     applicable to groundwater conservation districts created under

2-20     Section 59, Article XVI, Texas Constitution.  This article prevails

2-21     over any provision of general law that is in conflict or

2-22     inconsistent with this article, including any provision of Chapter

2-23     36, Water Code, or Chapter 1331, Acts of the 76th Legislature,

2-24     Regular Session, 1999 (Senate Bill No. 1911).

2-25           (b)  The district does not have the authority granted by the

2-26     following provisions of Chapter 36, Water Code:

2-27                 (1)  Section 36.105, relating to eminent domain; and

 3-1                 (2)  Sections 36.020 and 36.201-36.204, relating to

 3-2     taxes.

 3-3           SECTION 2.05.  BONDS. The district may issue bonds and notes

 3-4     under Sections 36.171-36.181, Water Code, not to exceed $500,000 of

 3-5     total indebtedness at any time.

 3-6           SECTION 2.06.  FEES. (a)  The board of directors of the

 3-7     district by rule may impose reasonable fees on each well for which

 3-8     a permit is issued by the district and which is not exempt from

 3-9     regulation by the district.  A fee may be based on the size of

3-10     column pipe used by the well or on the actual, authorized, or

3-11     anticipated amount of water to be withdrawn from the well.

3-12           (b)  The initial fee shall be based on the amount of water to

3-13     be withdrawn from the well.  The initial fee:

3-14                 (1)  may not exceed:

3-15                       (A)  $0.25 per acre-foot for water used for

3-16     irrigating agricultural crops or operating existing steam electric

3-17     stations; or

3-18                       (B)  $0.0425 per thousand gallons for water used

3-19     for any other purpose; and

3-20                 (2)  may be increased at a cumulative rate not to

3-21     exceed three percent per year.

3-22           (c)  In addition to the fee authorized under Subsection (b)

3-23     of this section, the district may impose a reasonable fee or

3-24     surcharge for an export fee using one of the following methods:

3-25                 (1)  a fee negotiated between the district and the

3-26     transporter; or

3-27                 (2)  a combined production and export fee not to exceed

 4-1     17 cents per thousand gallons of water used.

 4-2           (d)  Fees authorized by this section may be assessed annually

 4-3     and may be used to fund the cost of operations of the district or

 4-4     the Central Carrizo-Wilcox Coordinating Council.

 4-5           SECTION 2.07.  GROUNDWATER WELLS UNDER JURISDICTION OF

 4-6     RAILROAD COMMISSION. (a)  A groundwater well drilled or operated

 4-7     within the district under a permit issued by the Railroad

 4-8     Commission of Texas is under the exclusive jurisdiction of the

 4-9     railroad commission and is exempt from regulation by the district.

4-10           (b)  Groundwater produced in an amount authorized by a

4-11     railroad commission permit may be used within or exported from the

4-12     district without a permit from the district.

4-13           (c)  To the extent groundwater is produced in excess of

4-14     railroad commission authorization, the holder of the railroad

4-15     commission permit must apply to the district for the appropriate

4-16     permit for the  excess production and is subject to the applicable

4-17     regulatory fees.

4-18           (d)  Groundwater produced from a well under the jurisdiction

4-19     of the railroad commission is generally exempt from water district

4-20     fees.  However, the district may impose either a pumping fee or an

4-21     export fee on groundwater produced from an otherwise exempt mine

4-22     well that is used for municipal purposes or by a public utility.

4-23     Any fee imposed by the district under this subsection may not

4-24     exceed the fee imposed on other groundwater producers in the

4-25     district.

4-26           SECTION 2.08.  REGIONAL COORDINATION. (a)  To provide for

4-27     regional continuity, the district shall participate in a regular

 5-1     annual coordination meeting with any groundwater districts that are

 5-2     created and/or existing in Bastrop, Lee, Robertson, Brazos, Milam,

 5-3     Burleson, Leon, Madison, and/or Freestone counties, and may hold

 5-4     coordination meetings at other times as needed.

 5-5           (b)  Prior to the first annual regional coordination meeting

 5-6     held under Subsection (a), the district's board of directors shall

 5-7     vote whether to create and be a member of the Central

 5-8     Carrizo-Wilcox Coordinating Council under Article 5 of this Act.

 5-9           (c)  At the first annual regional coordination meeting held

5-10     under Subsection (a), if all of the groundwater districts created

5-11     and/or existing in Bastrop, Lee, Robertson, Brazos, Milam,

5-12     Burleson, Leon, Madison, and/or Freestone counties unanimously vote

5-13     to create and be members of the Central Carrizo-Wilcox Coordinating

5-14     Council, then the district shall be a member of the Central

5-15     Carrizo-Wilcox Coordinating Council under Article 5.

5-16           (d)  If the Central Carrizo-Wilcox Coordinating Council is

5-17     not created at the first annual regional coordination meeting held

5-18     under Subsection (a), then the district shall follow the joint

5-19     planning in management area requirements under Chapter 36, Water

5-20     Code.

5-21           SECTION 2.09.  MANAGEMENT PLAN. (a)  The district shall

5-22     develop or contract to develop its own management plan under

5-23     Section 36.1071, Water Code.

5-24           (b)  The district shall submit its management plan under

5-25     Subsection (a) to the Central Carrizo-Wilcox Coordinating Council

5-26     to be included in the management plan developed by the Central

5-27     Carrizo-Wilcox Coordinating Council under Section 5.06 of this Act,

 6-1     if the Central Carrizo-Wilcox Coordinating Council is created at

 6-2     the first annual regional coordination meeting.

 6-3           SECTION 2.10.  BOARD OF DIRECTORS. (a)  The district is

 6-4     governed by a board of eight directors.

 6-5           (b)  Initial directors serve until permanent directors are

 6-6     appointed under Section 2.11 of this article and qualified as

 6-7     required by Subsection (d) of this section.

 6-8           (c)  Permanent directors serve four-year staggered terms.

 6-9           (d)  Each director must qualify to serve as a director in the

6-10     manner provided by Section 36.055, Water Code.

6-11           (e)  A director serves until the director's successor has

6-12     qualified.

6-13           (f)  A director may serve consecutive terms.

6-14           (g)  If there is a vacancy on the board, the governing body

6-15     of the entity that appointed the director who vacated the office

6-16     shall appoint a director to serve the remainder of the term.

6-17           (h)  Directors are not entitled to receive compensation for

6-18     serving as a director but may be reimbursed for actual, reasonable

6-19     expenses incurred in the discharge of official duties.

6-20           (i)  A majority vote of a quorum is required for board

6-21     action.  If there is a tie vote, the proposed action fails.

6-22           SECTION 2.11.  APPOINTMENT OF DIRECTORS. (a)  The Robertson

6-23     County Commissioners Court shall appoint four directors, of whom:

6-24                 (1)  one must represent municipal interests in the

6-25     county;

6-26                 (2)  one must be a bona fide agricultural producer who

6-27     derives a substantial portion of his or her income from agriculture

 7-1     in the county;

 7-2                 (3)  one must be a director or employee of a rural

 7-3     water supply corporation in the county; and

 7-4                 (4)  one must represent active industrial interests in

 7-5     the county.

 7-6           (b)  The Brazos County Commissioners Court shall appoint two

 7-7     directors, of whom:

 7-8                 (1)  one must be a director or employee of a rural

 7-9     water supply corporation in the county; and

7-10                 (2)  one must be a bona fide agricultural producer who

7-11     derives a substantial portion of his or her income from agriculture

7-12     in the county.

7-13           (c)  The governing body of the City of Bryan, with the

7-14     approval of the Brazos County Commissioners Court, shall appoint

7-15     one director.

7-16           (d)  The governing body of the City of College Station, with

7-17     the approval of the Brazos County Commissioners Court, shall

7-18     appoint one director.

7-19           (e)  Each of the governing bodies authorized by this section

7-20     to make an appointment shall appoint the appropriate number of

7-21     initial directors as soon as practicable following the effective

7-22     date of this Act, but not later than the 45th day after the

7-23     effective date of this Act.

7-24           (f)  The four initial directors from Robertson County shall

7-25     draw lots to determine their terms.  Two initial directors from

7-26     Robertson County and the two initial directors from Brazos County

7-27     serve terms that expire on January 1 of the second year following

 8-1     the confirmation of the district at an election held under Section

 8-2     2.13 of this article.  The remaining four initial directors serve

 8-3     terms that expire on January 1 of the fourth year following the

 8-4     confirmation of the district.  On January 1 of the second year

 8-5     following confirmation of the district and every two years after

 8-6     that date, the appropriate governing body shall appoint the

 8-7     appropriate number of permanent directors.

 8-8           SECTION 2.12.  ORGANIZATIONAL MEETING. As soon as practicable

 8-9     after all the initial directors have been appointed and have

8-10     qualified as provided in this article, a majority of the directors

8-11     shall convene the organizational meeting of the district at a

8-12     location within the district agreeable to a majority of the

8-13     directors.  If no location can be agreed on, the organizational

8-14     meeting of the directors shall be at the Robertson County

8-15     Courthouse.

8-16           SECTION 2.13.  CONFIRMATION ELECTION. (a)  The initial board

8-17     of directors shall call and hold an election on the same date in

8-18     each county within the district to confirm the creation of the

8-19     district.

8-20           (b)  Except as provided by this section, a confirmation

8-21     election must be conducted as provided by Sections 36.017, 36.018,

8-22     and 36.019, Water Code, and Section 41.001, Election Code.

8-23           (c)  If the majority of qualified voters in a county who vote

8-24     in the election vote to confirm the creation of the district, that

8-25     county is included in the district.  If the majority of qualified

8-26     voters in a county who vote in the election vote not to confirm the

8-27     creation of the district, that county is excluded from the

 9-1     district.

 9-2           (d)  The district is dissolved and this article expires on

 9-3     August 31, 2003, unless the voters confirm the creation of the

 9-4     district before that date.

 9-5       ARTICLE 3.  POST OAK SAVANNAH GROUNDWATER CONSERVATION DISTRICT

 9-6           SECTION 3.01.  CREATION. (a)  A groundwater conservation

 9-7     district, to be known as the Post Oak Savannah Groundwater

 9-8     Conservation District, is created in Milam and Burleson counties,

 9-9     subject to approval at a confirmation election under Section 3.13

9-10     of this article.  The district is a governmental agency and a body

9-11     politic and corporate.

9-12           (b)  The district is created under and is essential to

9-13     accomplish the purposes of Section 59, Article XVI, Texas

9-14     Constitution.

9-15           SECTION 3.02.  DEFINITION. In this article, "district" means

9-16     the Post Oak Savannah Groundwater Conservation District.

9-17           SECTION 3.03.  BOUNDARIES. The boundaries of the district are

9-18     coextensive with the boundaries of Milam and Burleson counties.

9-19           SECTION 3.04.  FINDING OF BENEFIT. All of the land and other

9-20     property included within the boundaries of the district will be

9-21     benefitted by the works and projects that are to be accomplished by

9-22     the district under powers conferred by Section 59, Article XVI,

9-23     Texas Constitution.  The district is created to serve a public use

9-24     and benefit.

9-25           SECTION 3.05.  GENERAL POWERS. (a)  Except as otherwise

9-26     provided by this article, the district has all of the rights,

9-27     powers, privileges, authority, functions, and duties provided by

 10-1    the general law of this state, including Chapter 36, Water Code,

 10-2    applicable to groundwater conservation districts created under

 10-3    Section 59, Article XVI, Texas Constitution.  This article prevails

 10-4    over any provision of general law that is in conflict or

 10-5    inconsistent with this article, including any provision of Chapter

 10-6    36, Water Code.

 10-7          (b)  The district does not have the authority granted by the

 10-8    following provisions of Chapter 36, Water Code:

 10-9                (1)  Section 36.105, relating to eminent domain; and

10-10                (2)  Sections 36.020 and 36.201-36.204, relating to

10-11    taxes.

10-12          SECTION 3.06.  FEES. (a)  The board of directors of the

10-13    district by rule may impose reasonable fees on each well for which

10-14    a permit is issued by the district and which is not exempt from

10-15    regulation by the district.  A fee may be based on the size of

10-16    column pipe used by the well or on the actual, authorized, or

10-17    anticipated amount of water to be withdrawn from the well.

10-18          (b)  Fees may not exceed:

10-19                (1)  $0.25 per acre-foot for water used for irrigating

10-20    agricultural crops; or

10-21                (2)  17 cents per thousand gallons for water used for

10-22    any other purpose.

10-23          (c)  In addition to the fee authorized under Subsection (b)

10-24    of this section, the district may impose a reasonable fee or

10-25    surcharge for an export fee using one of the following methods:

10-26                (1)  a fee negotiated between the district and the

10-27    transporter; or

 11-1                (2)  a combined production and export fee not to exceed

 11-2    17 cents per thousand gallons of water used.

 11-3          (d)  Fees authorized by this section may be assessed annually

 11-4    and may be used to fund the cost of operations of the district or

 11-5    the Central Carrizo-Wilcox Coordinating Council.

 11-6          SECTION 3.07.  GROUNDWATER WELLS UNDER JURISDICTION OF

 11-7    RAILROAD COMMISSION. (a)  A groundwater well drilled or operated

 11-8    within the district under a permit issued by the Railroad

 11-9    Commission of Texas is under the exclusive jurisdiction of the

11-10    railroad commission and is exempt from regulation by the district.

11-11          (b)  Groundwater produced in an amount authorized by a

11-12    railroad commission permit may be used within or exported from the

11-13    district without a permit from the district.

11-14          (c)  To the extent groundwater is produced in excess of

11-15    railroad commission authorization, the holder of the railroad

11-16    commission permit must apply to the district for the appropriate

11-17    permit for the excess production and is subject to the applicable

11-18    regulatory fees.

11-19          (d)  Groundwater produced from a well under the jurisdiction

11-20    of the railroad commission is generally exempt from water district

11-21    fees.  However, the district may impose either a pumping fee or an

11-22    export fee on groundwater produced from an otherwise exempt mine

11-23    well that is used for municipal purposes or by a public utility.

11-24    Any fee imposed by the district under this subsection may not

11-25    exceed the fee imposed on other groundwater producers in the

11-26    district.

11-27          SECTION 3.08.  REGIONAL COORDINATION. (a)  To provide for

 12-1    regional continuity, the district shall participate in a regular

 12-2    annual coordination meeting with any groundwater districts that are

 12-3    created and/or existing in Bastrop, Lee, Robertson, Brazos, Milam,

 12-4    Burleson, Leon, Madison, and/or Freestone counties, and may hold

 12-5    coordination meetings at other times as needed.

 12-6          (b)  Prior to the first annual regional coordination meeting

 12-7    held under Subsection (a), the district's board of directors shall

 12-8    vote whether to create and be a member of the Central

 12-9    Carrizo-Wilcox Coordinating Council under Article 5 of this Act.

12-10          (c)  At the first annual regional coordination meeting held

12-11    under Subsection (a), if all of the groundwater districts created

12-12    and/or existing in Bastrop, Lee, Robertson, Brazos, Milam,

12-13    Burleson, Leon, Madison, and/or Freestone counties unanimously vote

12-14    to create and be members of the Central Carrizo-Wilcox Coordinating

12-15    Council, then the district shall be a member of the Central

12-16    Carrizo-Wilcox Coordinating Council under Article 5.

12-17          (d)  If the Central Carrizo-Wilcox Coordinating Council is

12-18    not created at the first annual regional coordination meeting held

12-19    under Subsection (a), then the district shall follow the joint

12-20    planning in management area requirements under Chapter 36, Water

12-21    Code.

12-22          SECTION 3.09.  MANAGEMENT PLAN. (a)  The district shall

12-23    develop or contract to develop its own management plan under

12-24    Section 36.1071, Water Code.

12-25          (b)  The district shall submit its management plan under

12-26    Subsection (a) to the Central Carrizo-Wilcox Coordinating Council

12-27    to be included in the management plan developed by the Central

 13-1    Carrizo-Wilcox Coordinating Council under Section 5.06 of this Act,

 13-2    if the Central Carrizo-Wilcox Coordinating Council is created at

 13-3    the first annual regional coordination meeting.

 13-4          SECTION 3.10.  BOARD OF DIRECTORS. (a)  The district is

 13-5    governed by a board of 10 directors.

 13-6          (b)  Initial directors serve until permanent directors are

 13-7    appointed under Section 3.11 of this article and qualified as

 13-8    required by Subsection (d) of this section.

 13-9          (c)  Permanent directors serve four-year staggered terms.

13-10          (d)  Each director must qualify to serve as a director in the

13-11    manner provided by Section 36.055, Water Code.

13-12          (e)  A director serves until the director's successor has

13-13    qualified.

13-14          (f)  A director may serve consecutive terms.

13-15          (g)  If there is a vacancy on the board, the governing body

13-16    of the entity that appointed the director who vacated the office

13-17    shall appoint a director to serve the remainder of the term.

13-18          (h)  Directors are not entitled to receive compensation for

13-19    serving as a director but may be reimbursed for actual, reasonable

13-20    expenses incurred in the discharge of official duties.

13-21          (i)  A quorum exists when at least two-thirds of the board

13-22    members are present.  A majority vote of a quorum is required for

13-23    board action.  If there is a tie vote, the proposed action fails.

13-24          SECTION 3.11.  APPOINTMENT OF DIRECTORS. (a)  The Milam

13-25    County Commissioners Court shall appoint five directors, of whom:

13-26                (1)  one must represent municipal interests in the

13-27    county;

 14-1                (2)  one must be a bona fide agricultural producer who

 14-2    derives a substantial portion of his or her income from agriculture

 14-3    in the county;

 14-4                (3)  one must be a director or employee of a rural

 14-5    water supply corporation in the county;

 14-6                (4)  one must represent active industrial interests in

 14-7    the county; and

 14-8                (5)  one must represent the interests of the county at

 14-9    large.

14-10          (b)  The Burleson County Commissioners Court shall appoint

14-11    five directors, of whom:

14-12                (1)  one must represent municipal interests in the

14-13    county;

14-14                (2)  one must be a bona fide agricultural producer who

14-15    derives a substantial portion of his or her income from agriculture

14-16    in the county;

14-17                (3)  one must be a director or employee of a rural

14-18    water supply corporation in the county;

14-19                (4)  one must represent active industrial interests in

14-20    the county; and

14-21                (5)  one must represent the interests of the county at

14-22    large.

14-23          (c)  Each of the governing bodies authorized by this section

14-24    to make an appointment shall appoint the appropriate number of

14-25    initial directors as soon as practicable following the effective

14-26    date of this Act, but not later than the 45th day after the

14-27    effective date of this Act.

 15-1          (d)  The initial directors shall draw lots to determine their

 15-2    terms.  Two initial directors from Milam County and two initial

 15-3    directors from Burleson County serve terms that expire on January 1

 15-4    of the second year following the confirmation of the district at an

 15-5    election held under Section 3.13 of this article.  The remaining

 15-6    six initial directors serve terms that expire on January 1 of the

 15-7    fourth year following the confirmation of the district.  On January

 15-8    1 of the second year following confirmation of the district and

 15-9    every two years after that date, the appropriate commissioners

15-10    court shall appoint the appropriate number of permanent directors.

15-11          SECTION 3.12.  ORGANIZATIONAL MEETING. As soon as practicable

15-12    after all the initial directors have been appointed and have

15-13    qualified as provided in this article, a majority of the directors

15-14    shall convene the organizational meeting of the district at a

15-15    location within the district agreeable to a majority of the

15-16    directors.  If no location can be agreed on, the organizational

15-17    meeting of the directors shall be at the Milam County Courthouse.

15-18          SECTION 3.13.  CONFIRMATION ELECTION. (a)  The initial board

15-19    of directors shall call and hold an election on the same date in

15-20    each county within the district to confirm the creation of the

15-21    district.

15-22          (b)  Except as provided by this section, a confirmation

15-23    election must be conducted as provided by Sections 36.017, 36.018,

15-24    and 36.019, Water Code, and Section 41.001, Election Code.

15-25          (c)  If the majority of qualified voters in a county who vote

15-26    in the election vote to confirm the creation of the district, that

15-27    county is included in the district.  If the majority of qualified

 16-1    voters in a county who vote in the election vote not to confirm the

 16-2    creation of the district, that county is excluded from the

 16-3    district.

 16-4          (d)  The district is dissolved and this article expires on

 16-5    August 31, 2003, unless the voters confirm the creation of the

 16-6    district before that date.

 16-7       ARTICLE 4.  MID-EAST TEXAS GROUNDWATER CONSERVATION DISTRICT

 16-8          SECTION 4.01.  CREATION. (a)  A groundwater conservation

 16-9    district, to be known as the Mid-East Texas Groundwater

16-10    Conservation District, is created in Leon, Madison, and Freestone

16-11    counties, subject to approval at a confirmation election under

16-12    Section 4.13 of this article.  The district is a governmental

16-13    agency and a body politic and corporate.

16-14          (b)  The district is created under and is essential to

16-15    accomplish the purposes of Section 59, Article XVI, Texas

16-16    Constitution.

16-17          SECTION 4.02.  DEFINITION. In this article, "district" means

16-18    the Mid-East Texas Groundwater Conservation District.

16-19          SECTION 4.03.  BOUNDARIES. The boundaries of the district are

16-20    coextensive with the boundaries of Leon, Madison, and Freestone

16-21    counties.

16-22          SECTION 4.04.  FINDING OF BENEFIT. All of the land and other

16-23    property included within the boundaries of the district will be

16-24    benefitted by the works and projects that are to be accomplished by

16-25    the district under powers conferred by Section 59, Article XVI,

16-26    Texas Constitution.  The district is created to serve a public use

16-27    and benefit.

 17-1          SECTION 4.05.  GENERAL POWERS. (a)  Except as otherwise

 17-2    provided by this article, the district has all of the rights,

 17-3    powers, privileges, authority, functions, and duties provided by

 17-4    the general law of this state, including Chapter 36, Water Code,

 17-5    applicable to groundwater conservation districts created under

 17-6    Section 59, Article XVI, Texas Constitution.  This article prevails

 17-7    over any provision of general law that is in conflict or

 17-8    inconsistent with this article, including any provision of Chapter

 17-9    36, Water Code.

17-10          (b)  The district does not have the authority granted by the

17-11    following provisions of Chapter 36, Water Code:

17-12                (1)  Section 36.105, relating to eminent domain; and

17-13                (2)  Sections 36.020 and 36.201-36.204, relating to

17-14    taxes.

17-15          SECTION 4.06.  FEES. (a)  The board of directors of the

17-16    district by rule may impose reasonable fees on each well for which

17-17    a permit is issued by the district and which is not exempt from

17-18    regulation by the district.  A fee may be based on the size of

17-19    column pipe used by the well or on the actual, authorized, or

17-20    anticipated amount of water to be withdrawn from the well.

17-21          (b)  Fees may not exceed:

17-22                (1)  $0.25 dollar per acre-foot for water used for

17-23    irrigating agricultural crops; or

17-24                (2)  17 cents per thousand gallons for water used for

17-25    any other purpose.

17-26          (c)  In addition to the fee authorized under Subsection (b)

17-27    of this section, the district may impose a reasonable fee or

 18-1    surcharge for an export fee using one of the following methods:

 18-2                (1)  a fee negotiated between the district and the

 18-3    transporter; or

 18-4                (2)  a combined production and export fee not to exceed

 18-5    17 cents per thousand gallons of water used.

 18-6          (d)  Fees authorized by this section may be assessed annually

 18-7    and may be used to fund the cost of operations of the district or

 18-8    the Central Carrizo-Wilcox Coordinating Council.

 18-9          SECTION 4.07.  GROUNDWATER WELLS UNDER JURISDICTION OF

18-10    RAILROAD COMMISSION. (a)  A groundwater well drilled or operated

18-11    within the district under a permit issued by the Railroad

18-12    Commission of Texas is under the exclusive jurisdiction of the

18-13    railroad commission and is exempt from regulation by the district.

18-14          (b)  Groundwater produced in an amount authorized by a

18-15    railroad commission permit may be used within or exported from the

18-16    district without a permit from the district.

18-17          (c)  To the extent groundwater is produced in excess of

18-18    railroad commission authorization, the holder of the railroad

18-19    commission permit must apply to the district for the appropriate

18-20    permit for the  excess production and is subject to the applicable

18-21    regulatory fees.

18-22          (d)  Groundwater produced from a well under the jurisdiction

18-23    of the railroad commission is generally exempt from water district

18-24    fees.  However, the district may impose either a pumping fee or an

18-25    export fee on groundwater produced from an otherwise exempt mine

18-26    well that is used for municipal purposes or by a public utility.

18-27    Any fee imposed by the district under this subsection may not

 19-1    exceed the fee imposed on other groundwater producers in the

 19-2    district.

 19-3          SECTION 4.08.  REGIONAL COORDINATION. (a)  To provide for

 19-4    regional continuity, the district shall participate in a regular

 19-5    annual coordination meeting with any groundwater districts that are

 19-6    created and/or existing in Bastrop, Lee, Robertson, Brazos, Milam,

 19-7    Burleson, Leon, Madison, and/or Freestone counties, and may hold

 19-8    coordination meetings at other times as needed.

 19-9          (b)  Prior to the first annual regional coordination meeting

19-10    held under Subsection (a), the district's board of directors shall

19-11    vote whether to create and be a member of the Central

19-12    Carrizo-Wilcox Coordinating Council under Article 5 of this Act.

19-13          (c)  At the first annual regional coordination meeting held

19-14    under Subsection (a), if all of the groundwater districts created

19-15    and/or existing in Bastrop, Lee, Robertson, Brazos, Milam,

19-16    Burleson, Leon, Madison, and/or Freestone counties unanimously vote

19-17    to create and be members of the Central Carrizo-Wilcox Coordinating

19-18    Council, then the district shall be a member of the Central

19-19    Carrizo-Wilcox Coordinating Council under Article 5.

19-20          (d)  If the Central Carrizo-Wilcox Coordinating Council is

19-21    not created at the first annual regional coordination meeting held

19-22    under Subsection (a), then the district shall follow the joint

19-23    planning in management area requirements under Chapter 36, Water

19-24    Code.

19-25          SECTION 4.09.  MANAGEMENT PLAN. (a)  The district shall

19-26    develop or contract to develop its own management plan under

19-27    Section 36.1071, Water Code.

 20-1          (b)  The district shall submit its management plan under

 20-2    Subsection (a) to the Central Carrizo-Wilcox Coordinating Council

 20-3    to be included in the management plan developed by the Central

 20-4    Carrizo-Wilcox Coordinating Council under Section 5.06 of this Act,

 20-5    if the Central Carrizo-Wilcox Coordinating Council is created at

 20-6    the first annual regional coordination meeting.

 20-7          SECTION 4.10.  BOARD OF DIRECTORS. (a)  The district is

 20-8    governed by a board of nine directors.

 20-9          (b)  Initial directors serve until permanent directors are

20-10    appointed under Section 4.11 of this article and qualified as

20-11    required by Subsection (d) of this section.

20-12          (c)  Permanent directors serve four-year staggered terms.

20-13          (d)  Each director must qualify to serve as a director in the

20-14    manner provided by Section 36.055, Water Code.

20-15          (e)  A director serves until the director's successor has

20-16    qualified.

20-17          (f)  A director may serve consecutive terms.

20-18          (g)  If there is a vacancy on the board, the governing body

20-19    of the entity that appointed the director who vacated the office

20-20    shall appoint a director to serve the remainder of the term.

20-21          (h)  Directors are not entitled to receive compensation for

20-22    serving as a director but may be reimbursed for actual, reasonable

20-23    expenses incurred in the discharge of official duties.

20-24          (i)  A majority vote of a quorum is required for board

20-25    action.  If there is a tie vote, the proposed action fails.

20-26          SECTION 4.11.  APPOINTMENT OF DIRECTORS. (a)  The Leon County

20-27    Commissioners Court shall appoint three directors, of whom:

 21-1                (1)  one must represent the interests of municipalities

 21-2    in the county, or must be a director or employee of a rural water

 21-3    supply corporation in the county, or both;

 21-4                (2)  one must be a bona fide agricultural producer who

 21-5    derives a substantial portion of his or her income from agriculture

 21-6    in the county; and

 21-7                (3)  one must represent active industrial interests in

 21-8    the county.

 21-9          (b)  The Madison County Commissioners Court shall appoint

21-10    three directors, of whom:

21-11                (1)  one must represent the interests of municipalities

21-12    in the county, or must be a director or employee of a rural water

21-13    supply corporation in the county, or both;

21-14                (2)  one must be a bona fide agricultural producer who

21-15    derives a substantial portion of his or her income from agriculture

21-16    in the county; and

21-17                (3)  one must represent active industrial interests in

21-18    the county.

21-19          (c)  The Freestone County Commissioners Court shall appoint

21-20    three directors, of whom:

21-21                (1)  one must represent the interests of municipalities

21-22    in the county, or must be a director or employee of a rural water

21-23    supply corporation in the county, or both;

21-24                (2)  one must be a bona fide agricultural producer who

21-25    derives a substantial portion of his or her income from agriculture

21-26    in the county; and

21-27                (3)  one must represent active industrial interests in

 22-1    the county.

 22-2          (d)  Each of the governing bodies authorized by this section

 22-3    to make an appointment shall appoint the appropriate number of

 22-4    initial directors as soon as practicable following the effective

 22-5    date of this Act, but not later than the 45th day after the

 22-6    effective date of this Act.

 22-7          (e)  The initial directors shall draw lots to determine their

 22-8    terms.  A simple majority of the initial directors, if an odd

 22-9    number of initial directors are appointed, or half the initial

22-10    directors, if an even number of initial directors are appointed,

22-11    serve terms that expire on January 1 of the fourth year following

22-12    the confirmation of the district at an election held under Section

22-13    4.13 of this article.  The remaining initial directors serve terms

22-14    that expire on January 1 of the second year following the

22-15    confirmation of the district.  On January 1 of the second year

22-16    following confirmation of the district and every two years after

22-17    that date, the appropriate commissioners courts shall appoint the

22-18    appropriate number of permanent directors.

22-19          SECTION 4.12.  ORGANIZATIONAL MEETING. As soon as practicable

22-20    after all the initial directors have been appointed and have

22-21    qualified as provided by this article, a majority of the directors

22-22    shall convene the organizational meeting of the district at a

22-23    location within the district agreeable to a majority of the

22-24    directors.  If no location can be agreed on, the organizational

22-25    meeting of the directors shall be at the Leon County Courthouse.

22-26          SECTION 4.13.  CONFIRMATION ELECTION. (a)  The initial board

22-27    of directors shall call and hold an election on the same date in

 23-1    each county within the district to confirm the creation of the

 23-2    district.

 23-3          (b)  Except as provided by this section, a confirmation

 23-4    election must be conducted as provided by Sections 36.017, 36.018,

 23-5    and 36.019, Water Code, and Section 41.001, Election Code.

 23-6          (c)  If the majority of qualified voters in a county who vote

 23-7    in the election vote to confirm the creation of the district, that

 23-8    county is included in the district.  If the majority of qualified

 23-9    voters in a county who vote in the election vote not to confirm the

23-10    creation of the district, that county is excluded from the

23-11    district.

23-12          (d)  The district is dissolved and this article expires on

23-13    August 31, 2003, unless the voters confirm the creation of the

23-14    district before that date.

23-15          ARTICLE 5.  CENTRAL CARRIZO-WILCOX COORDINATING COUNCIL

23-16          SECTION 5.01.  CREATION. (a)  The Central Carrizo-Wilcox

23-17    Coordinating Council is created only if at the first annual

23-18    regional coordination meeting held under Sections 2.08, 3.08, and

23-19    4.08 of this Act, all of the groundwater districts created and/or

23-20    existing in Bastrop, Lee, Robertson, Brazos, Milam, Burleson, Leon,

23-21    Madison, and/or Freestone counties unanimously vote to create and

23-22    be members of the Central Carrizo-Wilcox Coordinating Council.

23-23          (b)  The council is created under and is essential to

23-24    accomplish the purposes of Section 59, Article XVI, Texas

23-25    Constitution.

23-26          (c)  The council is created to provide regional management of

23-27    groundwater resources within its boundaries in order to preserve a

 24-1    sustainable water supply for the future by protecting, recharging,

 24-2    and preventing the waste of groundwater and by controlling

 24-3    subsidence caused by withdrawal of water from the groundwater

 24-4    reservoirs.

 24-5          SECTION 5.02.  BOUNDARIES. The boundaries of the Central

 24-6    Carrizo-Wilcox Coordinating Council are coextensive with the

 24-7    boundaries of Bastrop, Lee, Robertson, Brazos, Milam, Burleson,

 24-8    Leon, Madison, and Freestone counties.

 24-9          SECTION 5.03.  DEFINITIONS. In this article:

24-10                (1)  "Council" means the Central Carrizo-Wilcox

24-11    Coordinating Council.

24-12                (2)  "District" includes:

24-13                      (A)  the Brazos Valley Groundwater Conservation

24-14    District;

24-15                      (B)  the Post Oak Savannah Groundwater

24-16    Conservation District;

24-17                      (C)  the Mid-East Texas Groundwater Conservation

24-18    District;

24-19                      (D)  the Lost Pines Groundwater Conservation

24-20    District; and

24-21                      (E)  any other groundwater district created in

24-22    Bastrop, Lee, Robertson, Brazos, Milam, Burleson, Leon, Madison, or

24-23    Freestone County, or in any combination of any of those counties.

24-24          SECTION 5.04.  FINDING OF BENEFIT. All of the land and other

24-25    property included within the boundaries of the council will be

24-26    benefitted by regional management of groundwater resources and the

24-27    works and projects that are to be accomplished by the council under

 25-1    powers conferred by Section 59, Article XVI, Texas Constitution.

 25-2    The council is created to serve a public use and benefit.

 25-3          SECTION 5.05.  AUTHORITY OF COUNCIL. (a)  The council does

 25-4    not have the powers granted by Chapter 36, Water Code, except as

 25-5    stated in this article and as authorized by the districts.  The

 25-6    failure of one or more of the districts' confirmation elections

 25-7    does not affect the authority of the council.

 25-8          (b)  The council's authority is limited to groundwater

 25-9    produced from and wells drilled into the Carrizo-Wilcox aquifer, as

25-10    defined by the Texas Water Development Board in the current state

25-11    water plan, within the boundaries of the council.

25-12          SECTION 5.06.  MANAGEMENT PLAN. (a)  The council shall:

25-13                (1)  coordinate and maintain a management plan for the

25-14    council's coordinating area;

25-15                (2)  collect and maintain data required for management

25-16    of groundwater resources within its boundaries;

25-17                (3)  coordinate the districts regarding management plan

25-18    issues; and

25-19                (4)  disseminate information and monitor implementation

25-20    of the management plan among the districts.

25-21          (b)  The council shall coordinate the comprehensive

25-22    management plan, as required by Sections 36.1071 and 36.1073, Water

25-23    Code, for all of the counties within its boundaries.  In

25-24    coordinating the comprehensive management plan, the council shall

25-25    include and use the management plans developed by the individual

25-26    districts.

25-27          (c)  In the management plan the council may establish an

 26-1    annual total groundwater withdrawal limit and equitable allocation

 26-2    for each district as determined from an evaluation of the overall

 26-3    scientific data of the groundwater resources in the region,

 26-4    including the Texas Water Development Board's groundwater

 26-5    availability model.  The determination of sustainable groundwater

 26-6    withdrawal shall be reviewed at least every five years.  An

 26-7    individual district may not restrict the total amount of

 26-8    groundwater withdrawn in the district to less than the limit as

 26-9    determined from the evaluation of scientific data established under

26-10    this subsection.  If the council establishes an annual total

26-11    groundwater withdrawal limit and that limit is reached, groundwater

26-12    withdrawal used for public water supply inside the boundaries of

26-13    the council may be restricted only by unanimous vote of the

26-14    council.

26-15          (d)  On completion of the comprehensive management plan and

26-16    after approval of the plan by vote of at least 75 percent of the

26-17    council, the council shall forward a copy of the management plan

26-18    and any amendment to the plan to the Texas Water Development Board

26-19    as required by Section 36.1072, Water Code.  In preparing the

26-20    comprehensive management plan and its amendments, the council shall

26-21    consider:

26-22                (1)  the goals of the management plan and its impact on

26-23    planning throughout the management area;

26-24                (2)  the effectiveness of the measures established by

26-25    the management plan for conserving and protecting groundwater and

26-26    preventing waste, and the effectiveness of those measures in the

26-27    management area generally; and

 27-1                (3)  any other matters that the council considers

 27-2    relevant to the protection and conservation of groundwater and the

 27-3    prevention of waste in the management area.

 27-4          SECTION 5.07.  MANAGEMENT OF COUNCIL. (a)  The districts'

 27-5    representatives appointed to the council shall manage all affairs

 27-6    of the council.

 27-7          (b)  The council may contract with any person, public or

 27-8    private, as the council requires to conduct its affairs.  The

 27-9    council shall set the compensation and terms for consultants.

27-10          (c)  In selecting an attorney, engineer, auditor, financial

27-11    advisor, or other professional consultant, the council must follow

27-12    the procedures of Subchapter A, Chapter 2254, Government Code

27-13    (Professional Services Procurement Act).

27-14          (d)  The council shall require an officer or consultant who

27-15    collects, pays, or handles any council funds to furnish good and

27-16    sufficient bond, payable to the council, in an amount determined by

27-17    the council to be sufficient to safeguard the council.  The bond

27-18    shall be conditioned on the faithful performance of that person's

27-19    duties and on an accounting for all council funds and property.

27-20    The bond shall be signed or endorsed by a surety company authorized

27-21    to do business in this state.

27-22          SECTION 5.08.  MEETINGS. (a)  The council shall hold a

27-23    regular annual meeting.  It may hold meetings at other times as

27-24    required for council business.

27-25          (b)  Notice of council meetings shall be given as required by

27-26    the open meetings law, Chapter 551, Government Code.

27-27          (c)  The council shall hold its meetings in accordance with

 28-1    the open meetings law, Chapter 551, Government Code.

 28-2          SECTION 5.09.  RECORDS. (a)  The council shall keep a

 28-3    complete account of all its meetings and proceedings and shall

 28-4    preserve all council records in a safe place.

 28-5          (b)  Council records are the property of the council and are

 28-6    subject to Chapter 552, Government Code.

 28-7          (c)  The preservation, storage, destruction, or other

 28-8    disposition of council records are subject to Chapter 201, Local

 28-9    Government Code, and rules adopted under that chapter.

28-10          SECTION 5.10.  RESEARCH, SURVEYS, AND COLLECTION AND

28-11    DISSEMINATION OF INFORMATION. (a)  The council may, but only as

28-12    authorized by the districts:

28-13                (1)  perform research projects authorized by Section

28-14    36.107, Water Code;

28-15                (2)  coordinate surveys under Section 36.106, Water

28-16    Code, of the groundwater reservoir or subdivision and of the

28-17    facilities for development, production, transportation,

28-18    distribution, and use of the water, to determine the:

28-19                      (A)  quantity of water available for production

28-20    and use; and

28-21                      (B)  improvements, development, and recharging

28-22    needed by a reservoir or its subdivision;

28-23                (3)  collect information under Section 36.107, Water

28-24    Code, including information regarding the use of groundwater, water

28-25    conservation, and the practicability of recharging a groundwater

28-26    reservoir;

28-27                (4)  publish its plans and the information it develops,

 29-1    bring them to the attention of the users of groundwater in the

 29-2    council area, and encourage the users to adopt and use them, under

 29-3    Section 36.110, Water Code; and

 29-4                (5)  develop programs to educate the public about the

 29-5    aquifers in the management area, water conservation, and the

 29-6    prevention of pollution of the aquifer.

 29-7          (b)  A unanimous vote of the council is required before the

 29-8    council may take an action authorized by Subsection (a) of this

 29-9    section.

29-10          (c)  The district shall use existing research, surveys, and

29-11    information from state agencies or other sources to the greatest

29-12    extent possible for developing the management plan, conducting

29-13    research or other projects, and determining withdrawal limits and

29-14    equitable allocations between districts before conducting or

29-15    contracting for similar or complementary research, surveys, and

29-16    information.

29-17          SECTION 5.11.  FUNDING. (a)  The council shall be funded by

29-18    reasonable assessments of the owners of water wells in the

29-19    Carrizo-Wilcox aquifer that are capable of producing more than

29-20    25,000 gallons of water a day in proportion to the total amount of

29-21    water pumped from the aquifer.  The districts shall make the

29-22    assessment.

29-23          (b)  The assessments shall be made for:

29-24                (1)  coordination and maintenance of a management plan

29-25    for the council's coordinating area;

29-26                (2)  collection and maintenance of data required for

29-27    management of groundwater resources within its boundaries;

 30-1                (3)  coordination of the districts regarding management

 30-2    plan issues;

 30-3                (4)  dissemination of information and monitoring of

 30-4    implementation of the management plan among the districts;

 30-5                (5)  holding of regular council meetings; and

 30-6                (6)  contracting with any person, public or private, as

 30-7    the council requires to accomplish the duties of this subsection.

 30-8          (c)  The council may be funded for services other than those

 30-9    listed in Subsection (b) of this section, in any manner determined

30-10    appropriate by unanimous vote of the council or provided for by

30-11    interlocal agreement.

30-12          (d)  The council shall seek to minimize its costs and

30-13    expenditures to the greatest extent feasible.

30-14          SECTION 5.12.  SUITS. All courts shall take judicial notice

30-15    of the creation of the council and of its boundaries.  Sections

30-16    36.066(f) and (g), Water Code, pertaining to suits, apply to the

30-17    council.

30-18          SECTION 5.13.  CONTRACTS. The council may contract in the

30-19    name of the council.

30-20          SECTION 5.14.  DISTRICT COORDINATION. (a)  The council may

30-21    enter into interlocal agreements with its member districts to

30-22    provide for administrative assistance and other services identified

30-23    in Section 5.10 of this article.

30-24          (b)  The council may coordinate the activities of the

30-25    districts to the extent authorized by the districts.

30-26          (c)  The council may mediate disputes concerning the

30-27    regulation of groundwater along the boundaries of each district

 31-1    and, in the event that the council is unable to reach a resolution,

 31-2    it may petition the Texas Natural Resource Conservation Commission

 31-3    for resolution of the dispute under Section 36.108, Water Code.

 31-4          SECTION 5.15.  COMPOSITION OF COUNCIL. (a)  Each district

 31-5    shall appoint three of its directors to serve on the council's

 31-6    board of directors.  The appointees to the council's board of

 31-7    directors shall serve at the pleasure of their respective

 31-8    districts.

 31-9          (b)  After the council is created and the districts select

31-10    their three representatives to serve on the council, the council

31-11    shall meet and elect a president, a vice president, a secretary,

31-12    and any other officers or assistant officers the council considers

31-13    necessary and shall begin to discharge its duties.

31-14          (c)  A quorum for a council meeting is achieved only if:

31-15                (1)  a majority of the membership of the council is

31-16    present; and

31-17                (2)  each district has a representative at the meeting.

31-18          SECTION 5.16.  COORDINATION WITH THE BLUEBONNET GROUNDWATER

31-19    CONSERVATION DISTRICT. (a)  The council shall coordinate activities

31-20    with the Bluebonnet Groundwater Conservation District or any other

31-21    groundwater conservation district created in Grimes, Washington,

31-22    Austin, Waller, or Walker County if the groundwater conservation

31-23    district chooses to coordinate activities.

31-24          (b)  The Bluebonnet Groundwater Conservation District or any

31-25    other groundwater conservation district created in Grimes,

31-26    Washington, Austin, Waller, or Walker County may appoint a

31-27    nonvoting representative to the council.

 32-1          (c)  The council may perform duties described in this article

 32-2    for the Bluebonnet Groundwater Conservation District or any other

 32-3    groundwater conservation district created in Grimes, Washington,

 32-4    Austin, Waller, or Walker County through interlocal agreements.

 32-5            ARTICLE 6.  PROCEDURAL REQUIREMENTS; EFFECTIVE DATE

 32-6          SECTION 6.01.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.

 32-7    (a)  The proper and legal notice of the intention to introduce this

 32-8    Act, setting forth the general substance of this Act, has been

 32-9    published as provided by law, and the notice and a copy of this Act

32-10    have been furnished to all persons, agencies, officials, or

32-11    entities to which they are required to be furnished by the

32-12    constitution and other laws of this state, including the governor,

32-13    who has submitted the notice and Act to the Texas Natural Resource

32-14    Conservation Commission.

32-15          (b)  The Texas Natural Resource Conservation Commission has

32-16    filed its recommendations relating to this Act with the governor,

32-17    the lieutenant governor, and the speaker of the house of

32-18    representatives within the required time.

32-19          (c)  All requirements of the constitution and laws of this

32-20    state and the rules and procedures of the legislature with respect

32-21    to the notice, introduction, and passage of this Act are fulfilled

32-22    and accomplished.

32-23          (d)  To the extent of any conflicts, this Act prevails over

32-24    any provision of Senate Bill No. 2, Acts of the 77th Legislature,

32-25    Regular Session, 2001.

32-26          SECTION 6.02.  EFFECTIVE DATE. This Act takes effect

32-27    September 1, 2001.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1784 was passed by the House on April

         20, 2001, by a non-record vote; that the House refused to concur in

         Senate amendments to H.B. No. 1784 on May 23, 2001, and requested

         the appointment of a conference committee to consider the

         differences between the two houses; and that the House adopted the

         conference committee report on H.B. No. 1784 on May 27, 2001, by a

         non-record vote; and that the House adopted H.C.R. No. 334

         authorizing certain corrections in H.B. No. 1784 on May 28, 2001,

         by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1784 was passed by the Senate, with

         amendments, on May 21, 2001, by a viva-voce vote; at the request of

         the House, the Senate appointed a conference committee to consider

         the differences between the two houses; and that the Senate adopted

         the conference committee report on H.B. No. 1784 on May 27, 2001,

         by a viva-voce vote; and that the Senate adopted H.C.R. No. 334

         authorizing certain corrections in H.B. No. 1784 on May 28, 2001,

         by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  __________________________

                              Date

                    __________________________

                            Governor