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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

 
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