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�	S.B.�No.�3

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�	AN ACT
�	relating to the development, management, and preservation of the
�	water resources of the state; providing penalties.
�	�������BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
�	ARTICLE 1. �ENVIRONMENTAL FLOWS
�	�������SECTION�1.01.��The heading to Section 5.506, Water Code, is
�	amended to read as follows:
�	�������Sec.�5.506.��EMERGENCY SUSPENSION OF PERMIT CONDITION
�	RELATING TO, AND EMERGENCY AUTHORITY TO MAKE AVAILABLE WATER SET
�	ASIDE FOR, BENEFICIAL INFLOWS TO AFFECTED BAYS AND ESTUARIES AND
�	INSTREAM USES.
�	�������SECTION�1.02.��Section 5.506, Water Code, is amended by
�	adding Subsection (a-1) and amending Subsections (b) and (c) to
�	read as follows:
�	�������(a-1)��State water that is set aside by the commission to
�	meet the needs for freshwater inflows to affected bays and
�	estuaries and instream uses under Section 11.1471(a)(2) may be made
�	available temporarily for other essential beneficial uses if the
�	commission finds that an emergency exists that cannot practically
�	be resolved in another way.
�	�������(b)��The commission must give written notice of the proposed
�	action [suspension] to the Parks and Wildlife Department before the
�	commission suspends a permit condition under Subsection (a) or
�	makes water available temporarily under Subsection (a-1) [this
�	section]. The commission shall give the Parks and Wildlife
�	Department an opportunity to submit comments on the proposed action
�	[suspension] for a period of 72 hours from receipt of the notice and
�	must consider those comments before issuing an order implementing
�	the proposed action [imposing the suspension].
�	�������(c)��The commission may suspend a permit condition under
�	Subsection (a) or make water available temporarily under Subsection
�	(a-1) [this section] without notice except as required by
�	Subsection (b).
�	�������SECTION�1.03.��Subsection (j), Section 5.701, Water Code, is
�	amended to read as follows:
�	�������(j)��The fee for other uses of water not specifically named
�	in this section is $1 per acre-foot, except that no political
�	subdivision may be required to pay fees to use water for recharge of
�	underground freshwater-bearing sands and aquifers or for abatement
�	of natural pollution. A fee is not required for a water right that
�	is [This fee is waived for applications for instream-use water
�	rights] deposited into the Texas Water Trust.
�	�������SECTION�1.04.��Section 11.002, Water Code, is amended by
�	adding Subdivisions (15), (16), (17), (18), and (19) to read as
�	follows:
�	�������������(15)��"Environmental flow analysis" means the
�	application of a scientifically derived process for predicting the
�	response of an ecosystem to changes in instream flows or freshwater
�	inflows.
�	�������������(16)��"Environmental flow regime" means a schedule of
�	flow quantities that reflects seasonal and yearly fluctuations that
�	typically would vary geographically, by specific location in a
�	watershed, and that are shown to be adequate to support a sound
�	ecological environment and to maintain the productivity, extent,
�	and persistence of key aquatic habitats in and along the affected
�	water bodies.
�	�������������(17)��"Environmental flow standards" means those
�	requirements adopted by the commission under Section 11.1471.
�	�������������(18)��"Advisory group" means the environmental flows
�	advisory group.
�	�������������(19)��"Science advisory committee" means the Texas
�	environmental flows science advisory committee.
�	�������SECTION�1.05.��Subsection (a), Section 11.023, Water Code,
�	is amended to read as follows:
�	�������(a)��To the extent that state water has not been set aside by
�	the commission under Section 11.1471(a)(2) to meet downstream
�	instream flow needs or freshwater inflow needs, state [State] water
�	may be appropriated, stored, or diverted for:
�	�������������(1)��domestic and municipal uses, including water for
�	sustaining human life and the life of domestic animals;
�	�������������(2)��agricultural uses and industrial uses, meaning
�	processes designed to convert materials of a lower order of value
�	into forms having greater usability and commercial value, including
�	the development of power by means other than hydroelectric;
�	�������������(3)��mining and recovery of minerals;
�	�������������(4)��hydroelectric power;
�	�������������(5)��navigation;
�	�������������(6)��recreation and pleasure;
�	�������������(7)��public parks; and
�	�������������(8)��game preserves.
�	�������SECTION�1.06.��Section 11.0235, Water Code, is amended by
�	amending Subsections (b), (c), and (e) and adding Subsections (d-1)
�	through (d-6) and (f) to read as follows:
�	�������(b)��Maintaining the biological soundness of the state's
�	rivers, lakes, bays, and estuaries is of great importance to the
�	public's economic health and general well-being. �The legislature
�	encourages voluntary water and land stewardship to benefit the
�	water in the state, as defined by Section 26.001.
�	�������(c)��The legislature has expressly required the commission
�	while balancing all other public interests to consider and, to the
�	extent practicable, provide for the freshwater inflows and instream
�	flows necessary to maintain the viability of the state's streams,
�	rivers, and bay and estuary systems in the commission's regular
�	granting of permits for the use of state waters. As an essential
�	part of the state's environmental flows policy, all permit
�	conditions relating to freshwater inflows to affected bays and
�	estuaries and instream flow needs must be subject to temporary
�	suspension if necessary for water to be applied to essential
�	beneficial uses during emergencies.
�	�������(d-1)��The legislature has determined that existing water
�	rights that are amended to authorize use for environmental purposes
�	should be enforced in a manner consistent with the enforcement of
�	water rights for other purposes as provided by the laws of this
�	state governing the appropriation of state water.
�	�������(d-2)��The legislature finds that to provide certainty in
�	water management and development and to provide adequate protection
�	of the state's streams, rivers, and bays and estuaries, the state
�	must have a process with specific timelines for prompt action to
�	address environmental flow issues in the state's major basin and
�	bay systems, especially those systems in which unappropriated water
�	is still available.
�	�������(d-3)��The legislature finds that:
�	�������������(1)��in those basins in which water is available for
�	appropriation, the commission should establish an environmental
�	set-aside below which water should not be available for
�	appropriation; and
�	�������������(2)��in those basins in which the unappropriated water
�	that will be set aside for instream flow and freshwater inflow
�	protection is not sufficient to fully satisfy the environmental
�	flow standards established by the commission, a variety of market
�	approaches, both public and private, for filling the gap must be
�	explored and pursued.
�	�������(d-4)��The legislature finds that while the state has
�	pioneered tools to address freshwater inflow needs for bays and
�	estuaries, there are limitations to those tools in light of both
�	scientific and public policy evolution. To fully address bay and
�	estuary environmental flow issues, the foundation of work
�	accomplished by the state should be improved. While the state's
�	instream flow studies program appears to encompass a comprehensive
�	and scientific approach for establishing a process to assess
�	instream flow needs for rivers and streams across the state, more
�	extensive review and examination of the details of the program,
�	which may not be fully developed until the program is under way, are
�	needed to ensure an effective tool for evaluating riverine
�	environmental flow conditions.
�	�������(d-5)��The legislature finds that the management of water to
�	meet instream flow and freshwater inflow needs should be evaluated
�	on a regular basis and adapted to reflect both improvements in
�	science related to environmental flows and future changes in
�	projected human needs for water. In addition, the development of
�	management strategies for addressing environmental flow needs
�	should be an ongoing, adaptive process that considers and addresses
�	local issues.
�	�������(d-6)��The legislature finds that recommendations for state
�	action to protect instream flows and freshwater inflows should be
�	developed through a consensus-based, regional approach involving
�	balanced representation of stakeholders and that such a process
�	should be encouraged throughout the state.
�	�������(e)��The fact that greater pressures and demands are being
�	placed on the water resources of the state makes it of paramount
�	importance to ensure [reexamine the process for ensuring] that
�	these important priorities are effectively addressed by detailing
�	how environmental flow standards are to be developed using the
�	environmental studies that have been and are to be performed by the
�	state and others and specifying in clear delegations of authority
�	how those environmental flow standards will be integrated into the
�	regional water planning and water permitting process [to the
�	commission].
�	�������(f)��The legislature recognizes that effective
�	implementation of the approach provided by this chapter for
�	protecting instream flows and freshwater inflows will require more
�	effective water rights administration and enforcement systems than
�	are currently available in most areas of the state.
�	�������SECTION�1.07.��Subchapter B, Chapter 11, Water Code, is
�	amended by adding Sections 11.0236, 11.02361, 11.02362, and 11.0237
�	to read as follows:
�	�������Sec.�11.0236.��ENVIRONMENTAL FLOWS ADVISORY GROUP. �(a)��In
�	recognition of the importance that the ecological soundness of our
�	riverine, bay, and estuary systems and riparian lands has on the
�	economy, health, and well-being of the state there is created the
�	environmental flows advisory group.
�	�������(b)��The advisory group is composed of nine members as
�	follows:
�	�������������(1)��three members appointed by the governor;
�	�������������(2)��three members of the senate appointed by the
�	lieutenant governor; and
�	�������������(3)��three members of the house of representatives
�	appointed by the speaker of the house of representatives.
�	�������(c)��Of the members appointed under Subsection (b)(1):
�	�������������(1)��one member must be a member of the commission;
�	�������������(2)��one member must be a member of the board; and
�	�������������(3)��one member must be a member of the Parks and
�	Wildlife Commission.
�	�������(d)��Each member of the advisory group serves at the will of
�	the person who appointed the member.
�	�������(e)��The appointed senator with the most seniority and the
�	appointed house member with the most seniority serve together as
�	co-presiding officers of the advisory group.
�	�������(f)��A member of the advisory group is not entitled to
�	receive compensation for service on the advisory group but is
�	entitled to reimbursement of the travel expenses incurred by the
�	member while conducting the business of the advisory group, as
�	provided by the General Appropriations Act.
�	�������(g)��The advisory group may accept gifts and grants from any
�	source to be used to carry out a function of the advisory group.
�	�������(h)��The commission shall provide staff support for the
�	advisory group.
�	�������(i)��The advisory group shall conduct public hearings and
�	study public policy implications for balancing the demands on the
�	water resources of the state resulting from a growing population
�	with the requirements of the riverine, bay, and estuary systems
�	including granting permits for instream flows dedicated to
�	environmental needs or bay and estuary inflows, use of the Texas
�	Water Trust, and any other issues that the advisory group
�	determines have importance and relevance to the protection of
�	environmental flows. In evaluating the options for providing
�	adequate environmental flows, the advisory group shall take notice
�	of the strong public policy imperative that exists in this state
�	recognizing that environmental flows are important to the
�	biological health of our public and private lands, streams and
�	rivers, and bay and estuary systems and are high priorities in the
�	water management process. The advisory group shall specifically
�	address:
�	�������������(1)��ways that the ecological soundness of those
�	systems will be ensured in the water rights administration and
�	enforcement and water�allocation processes; and
�	�������������(2)��appropriate methods to encourage persons
�	voluntarily to convert reasonable amounts of existing water rights
�	to use for environmental flow protection temporarily or
�	permanently.
�	�������(j)��The advisory group may adopt rules, procedures, and
�	policies as needed to administer this section, to implement its
�	responsibilities, and to exercise its authority under Sections
�	11.02361 and 11.02362.
�	�������(k)��Chapter 2110, Government Code, does not apply to the
�	size, composition, or duration of the advisory group.
�	�������(l)��Not later than December 1, 2008, and every two years
�	thereafter, the advisory group shall issue and promptly deliver to
�	the governor, lieutenant governor, and speaker of the house of
�	representatives copies of a report summarizing:
�	�������������(1)��any hearings conducted by the advisory group;
�	�������������(2)��any studies conducted by the advisory group;
�	�������������(3)��any legislation proposed by the advisory group;
�	�������������(4)��progress made in implementing Sections 11.02361
�	and 11.02362; and
�	�������������(5)��any other findings and recommendations of the
�	advisory group.
�	�������(m)��The advisory group is abolished on the date that the
�	commission has adopted environmental flow standards under Section
�	11.1471 for all of the river basin and bay systems in this state.
�	�������Sec.�11.02361.��TEXAS ENVIRONMENTAL FLOWS SCIENCE ADVISORY
�	COMMITTEE. �(a)��The Texas environmental flows science advisory
�	committee consists of at least five but not more than nine members
�	appointed by the advisory group.
�	�������(b)��The advisory group shall appoint to the science advisory
�	committee persons who will provide an objective perspective and
�	diverse technical expertise, including expertise in hydrology,
�	hydraulics, water resources, aquatic and terrestrial biology,
�	geomorphology, geology, water quality, computer modeling, and
�	other technical areas pertinent to the evaluation of environmental
�	flows.
�	�������(c)��Members of the science advisory committee serve
�	five-year terms expiring March 1. A vacancy on the science advisory
�	committee is filled by appointment by the co-presiding officers of
�	the advisory group for the unexpired term.
�	�������(d)��Chapter 2110, Government Code, does not apply to the
�	size, composition, or duration of the science advisory committee.
�	�������(e)��The science advisory committee shall:
�	�������������(1)��serve as an objective scientific body to advise
�	and make recommendations to the advisory group on issues relating
�	to the science of environmental flow protection; and
�	�������������(2)��develop recommendations to help provide overall
�	direction, coordination, and consistency relating to:
�	�������������������(A)��environmental flow methodologies for bay and
�	estuary studies and instream flow studies;
�	�������������������(B)��environmental flow programs at the
�	commission, the Parks and Wildlife Department, and the board; and
�	�������������������(C)��the work of the basin and bay expert science
�	teams described in Section 11.02362.
�	�������(f)��To assist the advisory group to assess the extent to
�	which the recommendations of the science advisory committee are
�	considered and implemented, the commission, the Parks and Wildlife
�	Department, and the board shall provide written reports to the
�	advisory group, at intervals determined by the advisory group, that
�	describe:
�	�������������(1)��the actions taken by each agency in response to
�	each recommendation; and
�	�������������(2)��for each recommendation not implemented, the
�	reason it was not implemented.
�	�������(g)��The science advisory committee is abolished on the date
�	the advisory group is abolished under Section 11.0236(m).
�	�������Sec.�11.02362.��DEVELOPMENT OF ENVIRONMENTAL FLOW REGIME
�	RECOMMENDATIONS. �(a)��For the purposes of this section, the
�	advisory group, not later than November 1, 2007, shall define the
�	geographical extent of each river basin and bay system in this state
�	for the sole purpose of developing environmental flow regime
�	recommendations under this section and adoption of environmental
�	flow standards under Section 11.1471.
�	�������(b)��The advisory group shall give priority in descending
�	order to the following river basin and bay systems of the state for
�	the purpose of developing environmental flow regime
�	recommendations and adopting environmental flow standards:
�	�������������(1)��the river basin and bay system consisting of the
�	Trinity and San Jacinto Rivers and Galveston Bay and the river basin
�	and bay system consisting of the Sabine and Neches Rivers and Sabine
�	Lake Bay;
�	�������������(2)��the river basin and bay system consisting of the
�	Colorado and Lavaca Rivers and Matagorda and Lavaca Bays and the
�	river basin and bay system consisting of the Guadalupe, San
�	Antonio, Mission, and Aransas Rivers and Mission, Copano, Aransas,
�	and San Antonio Bays; and
�	�������������(3)��the river basin and bay system consisting of the
�	Nueces River and Corpus Christi and Baffin Bays, the river basin and
�	bay system consisting of the Rio Grande, the Rio Grande estuary, and
�	the Lower Laguna Madre, and the Brazos River and its associated bay
�	and estuary system.
�	�������(c)��For the river basin and bay systems listed in Subsection
�	(b)(1):
�	�������������(1)��the advisory group shall appoint the basin and bay
�	area stakeholders committee not later than November 1, 2007;
�	�������������(2)��the basin and bay area stakeholders committee
�	shall establish a basin and bay expert science team not later than
�	March 1, 2008;
�	�������������(3)��the basin and bay expert science team shall
�	finalize environmental flow regime recommendations and submit them
�	to the basin and bay area stakeholders committee, the advisory
�	group, and the commission not later than March 1, 2009, except that
�	at the request of the basin and bay area stakeholders committee for
�	good cause shown, the advisory group may extend the deadline
�	provided by this subdivision;
�	�������������(4)��the basin and bay area stakeholders committee
�	shall submit to the commission its comments on and recommendations
�	regarding the basin and bay expert science team's recommended
�	environmental flow regime not later than September 1, 2009; and
�	�������������(5)��the commission shall adopt the environmental flow
�	standards as provided by Section 11.1471 not later than September
�	1, 2010.
�	�������(d)��The advisory group shall appoint the basin and bay area
�	stakeholders committees for the river basin and bay systems listed
�	in Subsection (b)(2) not later than September 1, 2008, and shall
�	appoint the basin and bay area stakeholders committees for the
�	river basin and bay systems listed in Subsection (b)(3) not later
�	than September 1, 2009. The advisory group shall establish a
�	schedule for the performance of the tasks listed in Subsections
�	(c)(2) through (5) with regard to the river basin and bay systems
�	listed in Subsections (b)(2) and (3) that will result in the
�	adoption of environmental flow standards for that river basin and
�	bay system by the commission as soon as is reasonably possible.
�	Each basin and bay area stakeholders committee and basin and bay
�	expert science team for a river basin and bay system listed in
�	Subsection (b)(2) or (3) shall make recommendations to the advisory
�	group with regard to the schedule applicable to that river basin and
�	bay system. The advisory group shall consider the recommendations
�	of the basin and bay area stakeholders committee and basin and bay
�	expert science team as well as coordinate with, and give
�	appropriate consideration to the recommendations of, the
�	commission, the Parks and Wildlife Department, and the board in
�	establishing the schedule.
�	�������(e)��For a river basin and bay system or a river basin that
�	does not have an associated bay system in this state not listed in
�	Subsection (b), the advisory group shall establish a schedule for
�	the development of environmental flow regime recommendations and
�	the adoption of environmental flow standards. The advisory group
�	shall develop the schedule in consultation with the commission, the
�	Parks and Wildlife Department, the board, and the pertinent basin
�	and bay area stakeholders committee and basin and bay expert
�	science team. The advisory group may, on its own initiative or on
�	request, modify a schedule established under this subsection to be
�	more responsive to particular circumstances, local desires,
�	changing conditions, or time-sensitive conflicts. This subsection
�	does not prohibit, in a river basin and bay system for which the
�	advisory group has not yet established a schedule for the
�	development of environmental flow regime recommendations and the
�	adoption of environmental flow standards, an effort to develop
�	information on environmental flow needs and ways in which those
�	needs can be met by a voluntary consensus-building process.
�	�������(f)��The advisory group shall appoint a basin and bay area
�	stakeholders committee for each river basin and bay system in this
�	state for which a schedule for the development of environmental
�	flow regime recommendations and the adoption of environmental flow
�	standards is specified by or established under Subsection (c), (d),
�	or (e). Chapter 2110, Government Code, does not apply to the size,
�	composition, or duration of a basin and bay area stakeholders
�	committee. �Each committee must consist of at least 17 members. The
�	membership of each committee must:
�	�������������(1)��reflect a fair and equitable balance of interest
�	groups concerned with the particular river basin and bay system for
�	which the committee is established;�and
�	�������������(2)��be representative of appropriate stakeholders,
�	including the following if they have a presence in the particular
�	river basin and bay system for which the committee is established:
�	�������������������(A)��agricultural water users, including
�	representatives of each of the following sectors:
�	�������������������������(i)��agricultural irrigation;
�	�������������������������(ii)��free-range livestock; and
�	�������������������������(iii)��concentrated animal feeding
�	operation;
�	�������������������(B)��recreational water users, including coastal
�	recreational anglers and businesses supporting water recreation;
�	�������������������(C)��municipalities;
�	�������������������(D)��soil and water conservation districts;
�	�������������������(E)��industrial water users, including
�	representatives of each of the following sectors:
�	�������������������������(i)��refining;
�	�������������������������(ii)��chemical manufacturing;
�	�������������������������(iii)��electricity generation; and
�	�������������������������(iv)��production of paper products or
�	timber;
�	�������������������(F)��commercial fishermen;
�	�������������������(G)��public interest groups;
�	�������������������(H)��regional water planning groups;
�	�������������������(I)��groundwater conservation districts;
�	�������������������(J)��river authorities and other conservation and
�	reclamation districts with jurisdiction over surface water; and
�	�������������������(K)��environmental interests.
�	�������(g)��Members of a basin and bay area stakeholders committee
�	serve five-year terms expiring March 1. If a vacancy occurs on a
�	committee, the remaining members of the committee by majority vote
�	shall appoint a member to serve the remainder of the unexpired term.
�	�������(h)��Meetings of a basin and bay area stakeholders committee
�	must be open to the public.
�	�������(i)��Each basin and bay area stakeholders committee shall
�	establish a basin and bay expert science team for the river basin
�	and bay system for which the committee is established. The basin
�	and bay expert science team must be established not later than six
�	months after the date the basin and bay area stakeholders committee
�	is established. Chapter 2110, Government Code, does not apply to
�	the size, composition, or duration of a basin and bay expert science
�	team. �Each basin and bay expert science team must be composed of
�	technical experts with special expertise regarding the river basin
�	and bay system or regarding the development of environmental flow
�	regimes. �A person may serve as a member of more than one basin and
�	bay expert science team at the same time.
�	�������(j)��The members of a basin and bay expert science team serve
�	five-year terms expiring April 1. A vacancy on a basin and bay
�	expert science team is filled by appointment by the pertinent basin
�	and bay area stakeholders committee to serve the remainder of the
�	unexpired term.
�	�������(k)��The science advisory committee shall appoint one of its
�	members to serve as a liaison to each basin and bay expert science
�	team to facilitate coordination and consistency in environmental
�	flow activities throughout the state. The commission, the Parks
�	and Wildlife Department, and the board shall provide technical
�	assistance to each basin and bay expert science team, including
�	information about the studies conducted under Sections 16.058 and
�	16.059, and may serve as nonvoting members of the basin and bay
�	expert science team to facilitate the development of environmental
�	flow regime recommendations.
�	�������(l)��Where reasonably practicable, meetings of a basin and
�	bay expert science team must be open to the public.
�	�������(m)��Each basin and bay expert science team shall develop
�	environmental flow analyses and a recommended environmental flow
�	regime for the river basin and bay system for which the team is
�	established through a collaborative process designed to achieve a
�	consensus. In developing the analyses and recommendations, the
�	science team must consider all reasonably available science,
�	without regard to the need for the water for other uses, and the
�	science team's recommendations must be based solely on the best
�	science available. �For the Rio Grande below Fort Quitman, any uses
�	attributable to Mexican water flows must be excluded from
�	environmental flow regime recommendations.
�	�������(n)��Each basin and bay expert science team shall submit its
�	environmental flow analyses and environmental flow regime
�	recommendations to the pertinent basin and bay area stakeholders
�	committee, the advisory group, and the commission in accordance
�	with the applicable schedule specified by or established under
�	Subsection (c), (d), or (e). The basin and bay area stakeholders
�	committee and the advisory group may not change the environmental
�	flow analyses or environmental flow regime recommendations of the
�	basin and bay expert science team.
�	�������(o)��Each basin and bay area stakeholders committee shall
�	review the environmental flow analyses and environmental flow
�	regime recommendations submitted by the committee's basin and bay
�	expert science team and shall consider them in conjunction with
�	other factors, including the present and future needs for water for
�	other uses related to water supply planning in the pertinent river
�	basin and bay system. For�the Rio Grande, the basin and bay area
�	stakeholders committee shall also consider the water accounting
�	requirements for any international water sharing treaty, minutes,
�	and agreement applicable to the Rio Grande and the effects on
�	allocation of water by the Rio Grande watermaster in the middle and
�	lower Rio Grande. �The Rio Grande basin and bay expert science team
�	may not recommend any environmental flow regime that would result
�	in a violation of a treaty or court decision. �The basin and bay area
�	stakeholders committee shall develop recommendations regarding
�	environmental flow standards and strategies to meet the
�	environmental flow standards and submit those recommendations to
�	the commission and to the advisory group in accordance with the
�	applicable schedule specified by or established under Subsection
�	(c), (d), or (e). In developing its recommendations, the basin and
�	bay area stakeholders committee shall operate on a consensus basis
�	to the maximum extent possible.
�	�������(p)��In recognition of the importance of adaptive
�	management, after submitting its recommendations regarding
�	environmental flow standards and strategies to meet the
�	environmental flow standards to the commission, each basin and bay
�	area stakeholders committee, with the assistance of the pertinent
�	basin and bay expert science team, shall prepare and submit for
�	approval by the advisory group a work plan. �The work plan must:
�	�������������(1)��establish a periodic review of the basin and bay
�	environmental flow analyses and environmental flow regime
�	recommendations, environmental flow standards, and strategies, to
�	occur at least once every 10 years;
�	�������������(2)��prescribe specific monitoring, studies, and
�	activities; and
�	�������������(3)��establish a schedule for continuing the validation
�	or refinement of the basin and bay environmental flow analyses and
�	environmental flow regime recommendations, the environmental flow
�	standards adopted by the commission, and the strategies to achieve
�	those standards.
�	�������(q)��In accordance with the applicable schedule specified by
�	or established under Subsection (c), (d), or (e), the advisory
�	group, with input from the science advisory committee, shall review
�	the environmental flow analyses and environmental flow regime
�	recommendations submitted by each basin and bay expert science
�	team. If appropriate, the advisory group shall submit comments on
�	the analyses and recommendations to the commission for use by the
�	commission in adopting rules under Section 11.1471. Comments must
�	be submitted not later than six months after the date of receipt of
�	the analyses and recommendations.
�	�������(r)��Notwithstanding the other provisions of this section,
�	in the event the commission, by permit or order, has established an
�	estuary advisory council with specific duties related to
�	implementation of permit conditions for environmental flows, that
�	council may continue in full force and effect and shall act as and
�	perform the duties of the basin and bay area stakeholders committee
�	under this section. The estuary advisory council shall add members
�	from stakeholder groups and from appropriate science and technical
�	groups, if necessary, to fully meet the criteria for membership
�	established in Subsection (f) and shall operate under the
�	provisions of this section.
�	�������(s)��Each basin and bay area stakeholders committee and basin
�	and bay expert science team is abolished on the date the advisory
�	group is abolished under Section 11.0236(m).
�	�������Sec.�11.0237.��WATER RIGHTS FOR INSTREAM FLOWS DEDICATED TO
�	ENVIRONMENTAL NEEDS OR BAY AND ESTUARY INFLOWS. �(a)��The
�	commission may not issue a new permit for instream flows dedicated
�	to environmental needs or bay and estuary inflows. �The commission
�	may approve an application to amend an existing permit or
�	certificate of adjudication to change the use to or add a use for
�	instream flows dedicated to environmental needs or bay and estuary
�	inflows.
�	�������(b)��This section does not alter the commission's
�	obligations under Section 11.042(b) or (c),�11.046(b),
�	11.085(k)(2)(F), 11.134(b)(3)(D), 11.147, 11.1471, 11.1491,
�	11.150, 11.152,�16.058, or 16.059.
�	�������SECTION�1.08.��Subsection (b), Section 11.082, Water Code,
�	is amended to read as follows:
�	�������(b)��The state may recover the penalties prescribed in
�	Subsection (a) [of this section] by suit brought for that purpose in
�	a court of competent jurisdiction. The state may seek those
�	penalties regardless of whether a watermaster has been appointed
�	for the water division, river basin, or segment of a river basin
�	where the unlawful use is alleged to have occurred.
�	�������SECTION�1.09.��Section 11.0841, Water Code, is amended by
�	adding Subsection (c) to read as follows:
�	�������(c)��For purposes of this section, the Parks and Wildlife
�	Department has:
�	�������������(1)��the rights of a holder of a water right that is
�	held in the Texas Water Trust, including the right to file suit in a
�	civil court to prevent the unlawful use of such a right;
�	�������������(2)��the right to act in the same manner that a holder
�	of a water right may act to protect the holder's rights in seeking
�	to prevent any person from appropriating water in violation of a
�	set-aside established by the commission under Section 11.1471 to
�	meet instream flow needs or freshwater inflow needs; and
�	�������������(3)��the right to file suit in a civil court to prevent
�	the unlawful use of a set-aside established under Section 11.1471.
�	�������SECTION�1.10.��Subsection (a), Section 11.0842, Water Code,
�	is amended to read as follows:
�	�������(a)��If a person violates this chapter, a rule or order
�	adopted under this chapter or Section 16.236 [of this code], or a
�	permit, certified filing, or certificate of adjudication issued
�	under this chapter, the commission may assess an administrative
�	penalty against that person as provided by this section. The
�	commission may assess an administrative penalty for a violation
�	relating to a water division or a river basin or segment of a river
�	basin regardless of whether a watermaster has been appointed for
�	the water division or river basin or segment of the river basin.
�	�������SECTION�1.11.��Subsection (a), Section 11.0843, Water Code,
�	is amended to read as follows:
�	�������(a)��Upon witnessing a violation of this chapter or a rule or
�	order or a water right issued under this chapter, the executive
�	director or a person designated by the executive director,
�	including a watermaster or the watermaster's deputy, [as defined by
�	commission rule,] may issue the alleged violator a field citation
�	alleging that a violation has occurred and providing the alleged
�	violator the option of either:
�	�������������(1)��without admitting to or denying the alleged
�	violation, paying an administrative penalty in accordance with the
�	predetermined penalty amount established under Subsection (b) [of
�	this section] and taking remedial action as provided in the
�	citation; or
�	�������������(2)��requesting a hearing on the alleged violation in
�	accordance with Section 11.0842 [of this code].
�	�������SECTION�1.12.��Subsection (b), Section 11.134, Water Code,
�	is amended to read as follows:
�	�������(b)��The commission shall grant the application only if:
�	�������������(1)��the application conforms to the requirements
�	prescribed by this chapter and is accompanied by the prescribed
�	fee;
�	�������������(2)��unappropriated water is available in the source of
�	supply;
�	�������������(3)��the proposed appropriation:
�	�������������������(A)��is intended for a beneficial use;
�	�������������������(B)��does not impair existing water rights or
�	vested riparian rights;
�	�������������������(C)��is not detrimental to the public welfare;
�	�������������������(D)��considers any applicable environmental flow
�	standards established under Section 11.1471 and, if applicable, the
�	assessments performed under Sections 11.147(d) and (e) and Sections
�	11.150, 11.151, and 11.152; and
�	�������������������(E)��addresses a water supply need in a manner
�	that is consistent with the state water plan and the relevant
�	approved regional water plan for any area in which the proposed
�	appropriation is located, unless the commission determines that
�	conditions warrant waiver of this requirement; and
�	�������������(4)��the applicant has provided evidence that
�	reasonable diligence will be used to avoid waste and achieve water
�	conservation as defined by [Subdivision (8)(B),] Section
�	11.002(8)(B) [11.002].
�	�������SECTION�1.13.��Section 11.147, Water Code, is amended by
�	amending Subsections (b), (d), and (e) and adding Subsections
�	(e-1), (e-2), and (e-3) to read as follows:
�	�������(b)��In its consideration of an application for a permit to
�	store, take, or divert water, the commission shall assess the
�	effects, if any, of the issuance of the permit on the bays and
�	estuaries of Texas. For permits issued within an area that is 200
�	river miles of the coast, to commence from the mouth of the river
�	thence inland, the commission shall include in the permit any
�	conditions considered necessary to maintain beneficial inflows to
�	any affected bay and estuary system, to the extent practicable when
�	considering all public interests and the studies mandated by
�	Section 16.058 as evaluated under Section 11.1491[, those
�	conditions considered necessary to maintain beneficial inflows to
�	any affected bay and estuary system].
�	�������(d)��In its consideration of an application to store, take,
�	or divert water, the commission shall include in the permit, to the
�	extent practicable when considering all public interests, those
�	conditions considered by the commission necessary to maintain
�	existing instream uses and water quality of the stream or river to
�	which the application applies. In determining what conditions to
�	include in the permit under this subsection, the commission shall
�	consider among other factors:
�	�������������(1)��the studies mandated by Section 16.059; and
�	�������������(2)��any water quality assessment performed under
�	Section 11.150.
�	�������(e)��The commission shall include in the permit, to the
�	extent practicable when considering all public interests, those
�	conditions considered by the commission necessary to maintain fish
�	and wildlife habitats. In determining what conditions to include
�	in the permit under this subsection, the commission shall consider
�	any assessment performed under Section 11.152.
�	�������(e-1)��Any permit for a new appropriation of water or an
�	amendment to an existing water right that increases the amount of
�	water authorized to be stored, taken, or diverted must include a
�	provision allowing the commission to adjust the conditions included
�	in the permit or amended water right to provide for protection of
�	instream flows or freshwater inflows. With respect to an amended
�	water right, the provision may not allow the commission to adjust a
�	condition of the amendment other than a condition that applies only
�	to the increase in the amount of water to be stored, taken, or
�	diverted authorized by the amendment. �This subsection does not
�	affect an appropriation of or an authorization to store, take, or
�	divert water under a permit or amendment to a water right issued
�	before September 1, 2007. �The commission shall adjust the
�	conditions if the commission determines, through an expedited
�	public comment process, that such an adjustment is appropriate to
�	achieve compliance with applicable environmental flow standards
�	adopted under Section 11.1471. The adjustment:
�	�������������(1)��in combination with any previous adjustments made
�	under this subsection may not increase the amount of the
�	pass-through or release requirement for the protection of instream
�	flows or freshwater inflows by more than 12.5 percent of the
�	annualized total of that requirement contained in the permit as
�	issued or of that requirement contained in the amended water right
�	and applicable only to the increase in the amount of water
�	authorized to be stored, taken, or diverted under the amended water
�	right;
�	�������������(2)��must be based on appropriate consideration of the
�	priority dates and diversion locations of any other water rights
�	granted in the same river basin that are subject to adjustment under
�	this subsection; and
�	�������������(3)��must be based on appropriate consideration of any
�	voluntary contributions to the Texas Water Trust, and of any
�	voluntary amendments to existing water rights to change the use of a
�	specified quantity of water to or add a use of a specified quantity
�	of water for instream flows dedicated to environmental needs or bay
�	and estuary inflows as authorized by Section 11.0237(a), that
�	actually contribute toward meeting the applicable environmental
�	flow standards.
�	�������(e-2) Any water right holder who makes a contribution or
�	amends a water right as described by Subsection (e-1)(3) is
�	entitled to appropriate credit for the benefits of the contribution
�	or amendment against the adjustment of the holder's water right
�	under Subsection (e-1).
�	�������(e-3)��Notwithstanding Subsections (b)-(e), for the purpose
�	of determining the environmental flow conditions necessary to
�	maintain freshwater inflows to an affected bay and estuary system,
�	existing instream uses and water quality of a stream or river, or
�	fish and aquatic wildlife habitats, the commission shall apply any
�	applicable environmental flow standard, including any
�	environmental flow set-aside, adopted under Section 11.1471
�	instead of considering the factors specified by those subsections.
�	�������SECTION�1.14.��Subchapter D, Chapter 11, Water Code, is
�	amended by adding Section 11.1471 to read as follows:
�	�������Sec.�11.1471.��ENVIRONMENTAL FLOW STANDARDS AND SET-ASIDES.
�	(a)��The commission by rule shall:
�	�������������(1)��adopt appropriate environmental flow standards
�	for each river basin and bay system in this state that are adequate
�	to support a sound ecological environment, to the maximum extent
�	reasonable considering other public interests and other relevant
�	factors;
�	�������������(2)��establish an amount of unappropriated water, if
�	available, to be set aside to satisfy the environmental flow
�	standards to the maximum extent reasonable when considering human
�	water needs; and
�	�������������(3)��establish procedures for implementing an
�	adjustment of the conditions included in a permit or an amended
�	water right as provided by Sections 11.147(e-1) and (e-2).
�	�������(b)��In adopting environmental flow standards for a river
�	basin and bay system under Subsection (a)(1), the commission shall
�	consider:
�	�������������(1)��the definition of the geographical extent of the
�	river basin and bay system adopted by the advisory group under
�	Section 11.02362(a) and the definition and designation of the river
�	basin by the board under Section 16.051(c);
�	�������������(2)��the schedule established by the advisory group
�	under Section 11.02362(d) or (e) for the adoption of environmental
�	flow standards for the river basin and bay system, if applicable;
�	�������������(3)��the environmental flow analyses and the
�	recommended environmental flow regime developed by the applicable
�	basin and bay expert science team under Section 11.02362(m);
�	�������������(4)��the recommendations developed by the applicable
�	basin and bay area stakeholders committee under Section 11.02362(o)
�	regarding environmental flow standards and strategies to meet the
�	flow standards;
�	�������������(5)��any comments submitted by the advisory group to
�	the commission under Section 11.02362(q);
�	�������������(6)��the specific characteristics of the river basin
�	and bay system;
�	�������������(7)��economic factors;
�	�������������(8)��the human and other competing water needs in the
�	river basin and bay system;
�	�������������(9)��all reasonably available scientific information,
�	including any scientific information provided by the science
�	advisory committee; and
�	�������������(10)��any other appropriate information.
�	�������(c)��Environmental flow standards adopted under Subsection
�	(a)(1) must consist of a schedule of flow quantities, reflecting
�	seasonal and yearly fluctuations that may vary geographically by
�	specific location in a river basin and bay system.
�	�������(d)��As provided by Section 11.023, the commission may not
�	issue a permit for a new appropriation or an amendment to an
�	existing water right that increases the amount of water authorized
�	to be stored, taken, or diverted if the issuance of the permit or
�	amendment would impair an environmental flow set-aside established
�	under Subsection (a)(2). A permit for a new appropriation or an
�	amendment to an existing water right that increases the amount of
�	water authorized to be stored, taken, or diverted that is issued
�	after the adoption of an applicable environmental flow set-aside
�	must contain appropriate conditions to ensure protection of the
�	environmental flow set-aside.
�	�������(e)��An environmental flow set-aside established under
�	Subsection (a)(2) for a river basin and bay system other than the
�	middle and lower Rio Grande must be assigned a priority date
�	corresponding to the date the commission receives environmental
�	flow regime recommendations from the applicable basin and bay
�	expert science team and be included in the appropriate water
�	availability models in connection with an application for a permit
�	for a new appropriation or for an amendment to an existing water
�	right that increases the amount of water authorized to be stored,
�	taken, or diverted.
�	�������(f)��An environmental flow standard or environmental flow
�	set-aside adopted under Subsection (a) may be altered by the
�	commission in a rulemaking process undertaken in accordance with a
�	schedule established by the commission. �In establishing a
�	schedule, the commission shall consider the applicable work plan
�	approved by the advisory group under Section 11.02362(p). �The
�	commission's schedule may not provide for the rulemaking process to
�	occur more frequently than once every 10 years unless the work plan
�	provides for a periodic review under Section 11.02362(p) to occur
�	more frequently than once every 10 years. �In that event, the
�	commission may provide for the rulemaking process to be undertaken
�	in conjunction with the periodic review if the commission
�	determines that schedule to be appropriate. �A rulemaking process
�	undertaken under this subsection must provide for the participation
�	of stakeholders having interests in the particular river basin and
�	bay system for which the process is undertaken.
�	�������SECTION�1.15.��The heading to Section 11.148, Water Code, is
�	amended to read as follows:
�	�������Sec.�11.148.��EMERGENCY SUSPENSION OF PERMIT CONDITIONS AND
�	EMERGENCY AUTHORITY TO MAKE AVAILABLE WATER SET ASIDE FOR
�	ENVIRONMENTAL FLOWS.
�	�������SECTION�1.16.��Section 11.148, Water Code, is amended by
�	adding Subsection (a-1) and amending Subsections (b) and (c) to
�	read as follows:
�	�������(a-1)��State water that is set aside by the commission to
�	meet the needs for freshwater inflows to affected bays and
�	estuaries and instream uses under Section 11.1471(a)(2) may be made
�	available temporarily for other essential beneficial uses if the
�	commission finds that an emergency exists that cannot practically
�	be resolved in another way.
�	�������(b)��Before the commission suspends a permit condition under
�	Subsection (a) or makes water available temporarily under
�	Subsection (a-1) [of this section], it must give written notice to
�	the Parks and Wildlife Department of the proposed action
�	[suspension]. The commission shall give the Parks and Wildlife
�	Department an opportunity to submit comments on the proposed action
�	[suspension] within 72 hours from such time and the commission
�	shall consider those comments before issuing its order implementing
�	the proposed action [imposing the suspension].
�	�������(c)��The commission may suspend the permit condition under
�	Subsection (a) or make water available temporarily under Subsection
�	(a-1) without notice to any other interested party other than the
�	Parks and Wildlife Department as provided by Subsection (b) [of
�	this section]. However, all affected persons shall be notified
�	immediately by publication, and a hearing to determine whether the
�	suspension should be continued shall be held within 15 days of the
�	date on which the order to suspend is issued.
�	�������SECTION�1.17.��Subsection (a), Section 11.1491, Water Code,
�	is amended to read as follows:
�	�������(a)��The Parks and Wildlife Department and the commission
�	shall have joint responsibility to review the studies prepared
�	under Section 16.058 [of this code], to determine inflow conditions
�	necessary for the bays and estuaries, and to provide information
�	necessary for water resources management. Each agency shall
�	designate an employee to share equally in the oversight of the
�	program. Other responsibilities shall be divided between the Parks
�	and Wildlife Department and the commission to maximize present
�	in-house capabilities of personnel and to minimize costs to the
�	state. Each agency shall have reasonable access to all information
�	produced by the other agency. Publication of reports completed
�	under this section shall be submitted for comment to [both] the
�	commission, [and] the Parks and Wildlife Department, the advisory
�	group, the science advisory committee, and any applicable basin and
�	bay area stakeholders committee and basin and bay expert science
�	team.
�	�������SECTION�1.18.��Subsection (g), Section 11.329, Water Code,
�	is amended to read as follows:
�	�������(g)��The commission may not assess costs under this section
�	against a holder of a non-priority hydroelectric right that owns or
�	operates privately owned facilities that collectively have a
�	capacity of less than two megawatts or against a holder of a water
�	right placed in the Texas Water Trust for a term of at least 20
�	years. [This subsection is not intended to affect in any way the
�	fees assessed on a water right holder by the commission under
�	Section 1.29(d), Chapter 626, Acts of the 73rd Legislature, Regular
�	Session, 1993. For purposes of Section 1.29(d), Chapter 626, Acts
�	of the 73rd Legislature, Regular Session, 1993, a holder of a
�	non-priority hydroelectric right that owns or operates privately
�	owned facilities that collectively have a capacity of less than two
�	megawatts shall be assessed fees at the same rate per acre-foot
�	charged to a holder of a non-priority hydroelectric right that owns
�	or operates privately owned facilities that collectively have a
�	capacity of more than two megawatts.]
�	�������SECTION�1.19.��Subsection (e), Section 11.404, Water Code,
�	is amended to read as follows:
�	�������(e)��The court may not assess costs and expenses under this
�	section against:
�	�������������(1)��a holder of a non-priority hydroelectric right
�	that owns or operates privately owned facilities that collectively
�	have a capacity of less than two megawatts; or
�	�������������(2)��a holder of a water right placed in the Texas Water
�	Trust for a term of at least 20 years.
�	�������SECTION�1.20.��Subchapter I, Chapter 11, Water Code, is
�	amended by adding Section 11.4531 to read as follows:
�	�������Sec.�11.4531.��WATERMASTER ADVISORY COMMITTEE. (a)��For
�	each river basin or segment of a river basin for which the executive
�	director appoints a watermaster under this subchapter, the
�	executive director shall appoint a watermaster advisory committee
�	consisting of at least nine but not more than 15 members. A member
�	of the advisory committee must be a holder of a water right or a
�	representative of a holder of a water right in the river basin or
�	segment of the river basin for which the watermaster is appointed.
�	In appointing members to the advisory committee, the executive
�	director shall consider:
�	�������������(1)��geographic representation;
�	�������������(2)��amount of water rights held;
�	�������������(3)��different types of holders of water rights and
�	users, including water districts, municipal suppliers, irrigators,
�	and industrial users; and
�	�������������(4)��experience and knowledge of water management
�	practices.
�	�������(b)��An advisory committee member is not entitled to
�	reimbursement of expenses or to compensation.
�	�������(c)��An advisory committee member serves a two-year term
�	expiring August 31 of each odd-numbered year and holds office until
�	a successor is appointed.
�	�������(d)��The advisory committee shall meet within 30 days after
�	the date the initial appointments have been made and shall select a
�	presiding officer to serve a one-year term. The committee shall
�	meet regularly as necessary.
�	�������(e)��The advisory committee shall:
�	�������������(1)��make recommendations to the executive director
�	regarding activities of benefit to the holders of water rights in
�	the administration and distribution of water to holders of water
�	rights in the river basin or segment of the river basin for which
�	the watermaster is appointed;
�	�������������(2)��review and comment to the executive director on
�	the annual budget of the watermaster operation; and
�	�������������(3)��perform other advisory duties as requested by the
�	executive director regarding the watermaster operation or as
�	requested by holders of water rights and considered by the
�	committee to benefit the administration of water rights in the
�	river basin or segment of the river basin for which the watermaster
�	is appointed.
�	�������SECTION�1.21.��Sections 11.454 and 11.455, Water Code, are
�	amended to read as follows:
�	�������Sec.�11.454.��DUTIES AND AUTHORITY OF THE WATERMASTER.
�	Section 11.327 applies to the duties and authority of a watermaster
�	appointed for a river basin or segment of a river basin under this
�	subchapter in the same manner as that section applies to the duties
�	and authority of a watermaster appointed for a water division under
�	Subchapter G [A watermaster as the agent of the commission and under
�	the executive director's supervision shall:
�	�������������[(1) � � divide the water of the streams or other sources
�	of supply of his segment or basin in accordance with the authorized
�	water rights;
�	�������������[(2) � � regulate or cause to be regulated the controlling
�	works of reservoirs and diversion works in time of water shortage,
�	as is necessary because of the rights existing in the streams of his
�	segment or basin, or as is necessary to prevent the waste of water
�	or its diversion, taking, storage, or use in excess of the
�	quantities to which the holders of water rights are lawfully
�	entitled; and
�	�������������[(3) � � perform any other duties and exercise any
�	authority directed by the commission].
�	�������Sec.�11.455.��COMPENSATION AND EXPENSES OF WATERMASTER�
�	[ASSESSMENTS]. (a)��Section 11.329 applies to the payment of the
�	compensation and expenses of a watermaster appointed for a river
�	basin or segment of a river basin under this subchapter in the same
�	manner as that section applies to the payment of the compensation
�	and expenses of a watermaster appointed for a water division under
�	Subchapter G.
�	�������(b)��The executive director shall deposit the assessments
�	collected under this section to the credit of the watermaster fund.
�	�������(c)��Money deposited under this section to the credit of the
�	watermaster fund may be used only for the purposes specified by
�	Section 11.3291 with regard to the watermaster operation under this
�	subchapter with regard to which the assessments were collected [The
�	commission may assess the costs of the watermaster against all
�	persons who hold water rights in the river basin or segment of the
�	river basin under the watermaster's jurisdiction in accordance with
�	Section 11.329 of this code].
�	�������SECTION�1.22.��Subchapter F, Chapter 15, Water Code, is
�	amended by adding Section 15.4063 to read as follows:
�	�������Sec.�15.4063.��ENVIRONMENTAL FLOWS FUNDING. The board may
�	authorize the use of money in the research and planning fund:
�	�������������(1)��to compensate the members of the Texas
�	environmental flows science advisory committee established under
�	Section 11.02361 for attendance and participation at meetings of
�	the committee and for transportation, meals, lodging, or other
�	travel expenses associated with attendance at those meetings as
�	provided by the General Appropriations Act;
�	�������������(2)��for contracts with cooperating state and federal
�	agencies and universities and with private entities as necessary to
�	provide technical assistance to enable the Texas environmental
�	flows science advisory committee and the basin and bay expert
�	science teams established under Section 11.02362 to perform their
�	statutory duties;
�	�������������(3)��to compensate the members of the basin and bay
�	expert science teams established under Section 11.02362 for
�	attendance and participation at meetings of the basin and bay
�	expert science teams and for transportation, meals, lodging, or
�	other travel expenses associated with attendance at those meetings
�	as provided by the General Appropriations Act; and
�	�������������(4)��for contracts with political subdivisions
�	designated as representatives of basin and bay area stakeholders
�	committees established under Section 11.02362 to fund all or part
�	of the administrative expenses incurred in conducting meetings of
�	the basin and bay area stakeholders committees or the pertinent
�	basin and bay expert science teams.
�	�������SECTION�1.23.��Subsection (d), Section 16.059, Water Code,
�	is amended to read as follows:
�	�������(d)��The priority studies shall be completed not later than
�	December 31, 2016 [2010]. The Parks and Wildlife Department, the
�	commission, and the board shall establish a work plan that
�	prioritizes the studies and that sets interim deadlines providing
�	for publication of flow determinations for individual rivers and
�	streams on a reasonably consistent basis throughout the prescribed
�	study period. Before publication, completed studies shall be
�	submitted for comment to the commission, the board, and the Parks
�	and Wildlife Department.
�	�������SECTION�1.24.��Subsection (h), Section 26.0135, Water Code,
�	as amended by Chapters 234 and 965, Acts of the 77th Legislature,
�	Regular Session, 2001, is reenacted and amended to read as follows:
�	�������(h)��The commission shall apportion, assess, and recover the
�	reasonable costs of administering the water quality management
�	programs under this section from users of water and wastewater
�	permit holders in the watershed according to the records of the
�	commission generally in proportion to their right, through permit
�	or contract, to use water from and discharge wastewater in the
�	watershed. Irrigation water rights, [and] non-priority
�	hydroelectric rights of a water right holder that owns or operates
�	privately owned facilities that collectively have a capacity of
�	less than two megawatts, and water rights held in the Texas Water
�	Trust for terms of at least 20 years will not be subject to this
�	assessment. The cost to river authorities and others to conduct
�	water quality monitoring and assessment shall be subject to prior
�	review and approval by the commission as to methods of allocation
�	and total amount to be recovered. The commission shall adopt rules
�	to supervise and implement the water quality monitoring,
�	assessment, and associated costs. The rules shall ensure that
�	water users and wastewater dischargers do not pay excessive
�	amounts, that program funds are equitably apportioned among basins,
�	that a river authority may recover no more than the actual costs of
�	administering the water quality management programs called for in
�	this section, and that no municipality shall be assessed cost for
�	any efforts that duplicate water quality management activities
�	described in Section 26.177 [of this chapter]. The rules
�	concerning the apportionment and assessment of reasonable costs
�	shall provide for a recovery of not more than $5,000,000 annually.
�	Costs recovered by the commission are to be deposited to the credit
�	of the water resource management account and may be used only to
�	accomplish the purposes of this section. The commission may apply
�	not more than 10 percent of the costs recovered annually toward the
�	commission's overhead costs for the administration of this section
�	and the implementation of regional water quality assessments. The
�	commission, with the assistance and input of each river authority,
�	shall file a written report accounting for the costs recovered
�	under this section with the governor, the lieutenant governor, and
�	the speaker of the house of representatives on or before December 1
�	of each even-numbered year.
�	�������SECTION�1.25.��Subsection (b), Section 11.1491, Water Code,
�	is repealed.
�	�������SECTION�1.26.��(a)��The governor, lieutenant governor, and
�	speaker of the house of representatives shall appoint the initial
�	members of the environmental flows advisory group as provided by
�	Section 11.0236, Water Code, as added by this article, as soon as
�	practicable on or after the effective date of this Act.
�	�������(b)��As soon as practicable after taking office, the initial
�	members of the environmental flows advisory group shall appoint the
�	initial members of the Texas environmental flows science advisory
�	committee as provided by Section 11.02361, Water Code, as added by
�	this article. The terms of the initial members of the committee
�	expire March 1, 2012.
�	�������(c)��The environmental flows advisory group shall appoint
�	the members of each basin and bay area stakeholders committee as
�	provided by Section 11.02362, Water Code, as added by this article.
�	The terms of the initial members of each committee expire March 1 of
�	the fifth year that begins after the year in which the initial
�	appointments are made.
�	�������(d)��Each basin and bay area stakeholders committee shall
�	appoint the members of the basin and bay expert science team for the
�	river basin and bay system for which the committee is established as
�	provided by Section 11.02362, Water Code, as added by this article.
�	The terms of the initial members of each team expire April 1 of the
�	fifth year that begins after the year in which the initial
�	appointments are made.
�	�������(e)��The executive director of the Texas Commission on
�	Environmental Quality shall appoint the members of the watermaster
�	advisory committee under Section 11.4531, Water Code, as added by
�	this article, for each river basin or segment of a river basin for
�	which the executive director appoints a watermaster under
�	Subchapter I, Chapter 11, Water Code. The terms of the initial
�	members of each committee expire August 31 of the first
�	odd-numbered year that begins after the year in which the initial
�	appointments are made.
�	�������SECTION�1.27.��The changes in law made by this article
�	relating to a permit for a new appropriation of water or to an
�	amendment to an existing water right that increases the amount of
�	water authorized to be stored, taken, or diverted apply only to:
�	�������������(1)��water appropriated under a permit for a new
�	appropriation of water the application for which is pending with
�	the Texas Commission on Environmental Quality on the effective date
�	of this Act or is filed with the commission on or after that date; or
�	�������������(2)��the increase in the amount of water authorized to
�	be stored, taken, or diverted under an amendment to an existing
�	water right that increases the amount of water authorized to be
�	stored, taken, or diverted and the application for which is pending
�	with the Texas Commission on Environmental Quality on the effective
�	date of this Act or is filed with the commission on or after that
�	date.
�	ARTICLE 2. �WATER CONSERVATION AND PLANNING AND OTHER WATER-RELATED
�	PROVISIONS
�	�������SECTION�2.01.��Section 1.003, Water Code, is amended to read
�	as follows:
�	�������Sec.�1.003.��PUBLIC POLICY. It is the public policy of the
�	state to provide for the conservation and development of the
�	state's natural resources, including:
�	�������������(1)��the control, storage, preservation, and
�	distribution of the state's storm and floodwaters and the waters of
�	its rivers and streams for irrigation, power, and other useful
�	purposes;
�	�������������(2)��the reclamation and irrigation of the state's
�	arid, semiarid, and other land needing irrigation;
�	�������������(3)��the reclamation and drainage of the state's
�	overflowed land and other land needing drainage;
�	�������������(4)��the conservation and development of its forest,
�	water, and hydroelectric power;
�	�������������(5)��the navigation of the state's inland and coastal
�	waters; [and]
�	�������������(6)��the maintenance of a proper ecological environment
�	of the bays and estuaries of Texas and the health of related living
�	marine resources; and
�	�������������(7)��the voluntary stewardship of public and private
�	lands to benefit waters of the state.
�	�������SECTION�2.02.��Subchapter A, Chapter 1, Water Code, is
�	amended by adding Section 1.004 to read as follows:
�	�������Sec.�1.004.��FINDINGS AND POLICY REGARDING LAND STEWARDSHIP.
�	(a)��The legislature finds that voluntary land stewardship
�	enhances the efficiency and effectiveness of this state's
�	watersheds by helping to increase surface water and groundwater
�	supplies, resulting in a benefit to the natural resources of this
�	state and to the general public. It is therefore the policy of this
�	state to encourage voluntary land stewardship as a significant
�	water management tool.
�	�������(b)��"Land stewardship," as used in this code, is the
�	voluntary practice of managing land to conserve or enhance suitable
�	landscapes and the ecosystem values of the land. Land stewardship
�	includes land and habitat management, wildlife conservation, and
�	watershed protection. Land stewardship practices include runoff
�	reduction, prescribed burning, managed grazing, brush management,
�	erosion management, reseeding with native plant species, riparian
�	management and restoration, and spring and creek-bank protection,
�	all of which benefit the water resources of this state.
�	�������SECTION�2.03.��Subtitle A, Title 2, Water Code, is amended by
�	adding Chapter 10 to read as follows:
�	CHAPTER 10. �WATER CONSERVATION ADVISORY COUNCIL
�	�������Sec.�10.001.��DEFINITIONS. In this chapter:
�	�������������(1)��"Best management practices" has the meaning
�	assigned by Section 11.002.
�	�������������(2)��"Board" means the Texas Water Development Board.
�	�������������(3)��"Commission" means the Texas Commission on
�	Environmental Quality.
�	�������������(4)��"Council" means the Water Conservation Advisory
�	Council.
�	�������Sec.�10.002.��PURPOSE. �The council is created to provide the
�	governor, lieutenant governor, speaker of the house of
�	representatives, legislature, board, commission, political
�	subdivisions, and public with the resource of a select council with
�	expertise in water conservation.
�	�������Sec.�10.003.��CREATION AND MEMBERSHIP. �(a)��The council is
�	composed of 23 members appointed by the board. The board shall
�	appoint one member to represent each of the following entities or
�	interest groups:
�	�������������(1)��Texas Commission on Environmental Quality;
�	�������������(2)��Department of Agriculture;
�	�������������(3)��Parks and Wildlife Department;
�	�������������(4)��State Soil and Water Conservation Board;
�	�������������(5)��Texas Water Development Board;
�	�������������(6)��regional water planning groups;
�	�������������(7)��federal agencies;
�	�������������(8)��municipalities;
�	�������������(9)��groundwater conservation districts;
�	�������������(10)��river authorities;
�	�������������(11)��environmental groups;
�	�������������(12)��irrigation districts;
�	�������������(13)��institutional water users;
�	�������������(14)��professional organizations focused on water
�	conservation;
�	�������������(15)��higher education;
�	�������������(16)��agricultural groups;
�	�������������(17)��refining and chemical manufacturing;
�	�������������(18)��electric generation;
�	�������������(19)��mining and recovery of minerals;
�	�������������(20)��landscape irrigation and horticulture;
�	�������������(21)��water control and improvement districts;
�	�������������(22)��rural water users; and
�	�������������(23)��municipal utility districts.
�	�������(b)��Each entity or interest group described by Subsection
�	(a) may recommend one or more persons to fill the position on the
�	council held by the member who represents that entity or interest
�	group. �If one or more persons are recommended for a position on the
�	council, the board shall appoint one of the persons recommended to
�	fill the position.
�	�������Sec.�10.004.��TERMS. �(a)��Members of the council serve
�	staggered terms of six years, with seven or eight members' terms, as
�	applicable, expiring August 31 of each odd-numbered year.
�	�������(b)��The board shall fill a vacancy on the council for the
�	unexpired term by appointing a person who has the same
�	qualifications as required under Section 10.003 for the person who
�	previously held the vacated position.
�	�������Sec.�10.005.��PRESIDING OFFICER. �The council members shall
�	select one member as the presiding officer of the council to serve
�	in that capacity until the person's term as a council member
�	expires.
�	�������Sec.�10.006.��COUNCIL STAFF. On request by the council, the
�	board shall provide any necessary staff to assist the council in the
�	performance of its duties.
�	�������Sec.�10.007.��PUBLIC MEETINGS AND PUBLIC INFORMATION.
�	(a)��The council may hold public meetings as needed to fulfill its
�	duties under this chapter.
�	�������(b)��The council is subject to Chapters 551 and 552,
�	Government Code.
�	�������Sec.�10.008.��INAPPLICABILITY OF ADVISORY COMMITTEE LAW. �
�	Chapter 2110, Government Code, does not apply to the size,
�	composition, or duration of the council.
�	�������Sec.�10.009.��COMPENSATION OF MEMBERS. �(a)��Members of the
�	council serve without compensation but may be reimbursed by
�	legislative appropriation for actual and necessary expenses
�	related to the performance of council duties.
�	�������(b)��Reimbursement under Subsection (a) is subject to the
�	approval of the presiding officer of the council.
�	�������Sec.�10.010.��POWERS AND DUTIES OF COUNCIL. �The council
�	shall:
�	�������������(1)��monitor trends in water conservation
�	implementation;
�	�������������(2)��monitor new technologies for possible inclusion by
�	the board as best management practices in the best management
�	practices guide developed by the water conservation implementation
�	task force under Chapter 109, Acts of the 78th Legislature, Regular
�	Session, 2003;
�	�������������(3)��monitor the effectiveness of the statewide water
�	conservation public awareness program developed under Section
�	16.401 and associated local involvement in implementation of the
�	program;
�	�������������(4)��develop and implement a state water management
�	resource library;
�	�������������(5)��develop and implement a public recognition program
�	for water conservation;
�	�������������(6)��monitor the implementation of water conservation
�	strategies by water users included in regional water plans; and
�	�������������(7)��monitor target and goal guidelines for water
�	conservation to be considered by the board and commission.
�	�������Sec.�10.011.��REPORT. �Not later than December 1 of each
�	even-numbered year, the council shall submit to the governor,
�	lieutenant governor, and speaker of the house of representatives a
�	report on progress made in water conservation in this state.
�	�������Sec.�10.012.��DESIGNATION OF CERTIFIED WATER CONSERVATION
�	TRAINING FACILITIES STUDY. (a)��The council shall conduct a study
�	to evaluate the desirability of requiring the board to:
�	�������������(1)��designate as certified water conservation
�	training facilities entities and programs that provide assistance
�	to retail public utilities in developing water conservation plans
�	under Section 13.146; and
�	�������������(2)��give preference to certified water conservation
�	training facilities in making loans or grants for water
�	conservation training and education activities.
�	�������(b)��Not later than December 1, 2008, the council shall
�	submit a written report containing the findings of the study and the
�	recommendations of the council to the governor, lieutenant
�	governor, and speaker of the house of representatives.
�	�������(c)��This section expires June 1, 2009.
�	�������SECTION�2.04.��Section 11.002, Water Code, is amended by
�	adding Subdivision (20) to read as follows:
�	�������������(20)��"Best management practices" means those
�	voluntary efficiency measures developed by the commission and the
�	board that save a quantifiable amount of water, either directly or
�	indirectly, and that can be implemented within a specified time
�	frame.
�	�������SECTION�2.05.��Subdivisions (1-a), (5), and (8), Section
�	13.002, Water Code, are amended to read as follows:
�	�������������(1-a)��"Landowner," "owner of a tract of land," and
�	"owners of each tract of land" include multiple owners of a single
�	deeded tract of land as shown on the appraisal roll of the appraisal
�	district established for each county in which the property is
�	located.
�	�������������(5)��"Commission" means the Texas [Natural Resource
�	Conservation] Commission on Environmental Quality.
�	�������������(8)��"Executive director" means the executive director
�	of the commission [Texas Natural Resource Conservation
�	Commission].
�	�������SECTION�2.06.��Subchapter E, Chapter 13, Water Code, is
�	amended by adding Sections 13.146 and 13.147 to read as follows:
�	�������Sec.�13.146.��WATER CONSERVATION PLAN. �The commission shall
�	require a retail public utility that provides potable water service
�	to 3,300 or more connections to submit to the executive
�	administrator of the board a water conservation plan based on
�	specific targets and goals developed by the retail public utility
�	and using appropriate best management practices, as defined by
�	Section 11.002, or other water conservation strategies.
�	�������Sec.�13.147.��CONSOLIDATED BILLING AND COLLECTION
�	CONTRACTS. (a)��A retail public utility providing water service
�	may contract with a retail public utility providing sewer service
�	to bill and collect the sewer service provider's fees and payments
�	as part of a consolidated process with the billing and collection of
�	the water service provider's fees and payments. �The water service
�	provider may provide that service only for customers who are served
�	by both providers in an area covered by both providers'
�	certificates of public convenience and necessity. �If the water
�	service provider refuses to enter into a contract under this
�	section or if the water service provider and sewer service provider
�	cannot agree on the terms of a contract, the sewer service provider
�	may petition the commission to issue an order requiring the water
�	service provider to provide that service.
�	�������(b)��A contract or order under this section must provide
�	procedures and deadlines for submitting billing and customer
�	information to the water service provider and for the delivery of
�	collected fees and payments to the sewer service provider.
�	�������(c)��A contract or order under this section may require or
�	permit a water service provider that provides consolidated billing
�	and collection of fees and payments to:
�	�������������(1)��terminate the water services of a person whose
�	sewage services account is in arrears for nonpayment; and
�	�������������(2)��charge a customer a reconnection fee if the
�	customer's water service is terminated for nonpayment of the
�	customer's sewage services account.
�	�������(d)��A water service provider that provides consolidated
�	billing and collection of fees and payments may impose on each sewer
�	service provider customer a reasonable fee to recover costs
�	associated with providing consolidated billing and collection of
�	fees and payments for sewage services.
�	�������SECTION�2.07.��Subchapter F, Chapter 13, Water Code, is
�	amended by adding Section 13.188 to read as follows:
�	�������Sec.�13.188.��ADJUSTMENT FOR CHANGE IN ENERGY COSTS. �
�	(a)��Notwithstanding any other provision in this chapter, the
�	commission by rule shall adopt a procedure allowing a utility to
�	file with the commission an application to timely adjust the
�	utility's rates to reflect an increase or decrease in documented
�	energy costs in a pass through clause. �The commission, by rule,
�	shall require the pass through of documented decreases in energy
�	costs within a reasonable time. �The pass through, whether a
�	decrease or increase, shall be implemented on no later than an
�	annual basis, unless the commission determines a special
�	circumstance applies.
�	�������(b)��Notwithstanding any other provision to the contrary,
�	this adjustment is an uncontested matter not subject to a contested
�	case hearing. �However, the executive director shall hold an
�	uncontested public meeting:
�	�������������(1)��on the request of a member of the legislature who
�	represents the area served by the water and sewer utility; or
�	�������������(2)��if the executive director determines that there is
�	substantial public interest in the matter.
�	�������(c)��A proceeding under this section is not a rate case and
�	Section 13.187 does not apply.
�	�������SECTION�2.08.��Section 13.2451, Water Code, is amended to
�	read as follows:
�	�������Sec.�13.2451.��EXTENSION BEYOND EXTRATERRITORIAL
�	JURISDICTION. �(a)��If�[Except as provided by Subsection (b), if] a
�	municipality extends its extraterritorial jurisdiction to include
�	an area certificated to a retail public utility, the retail public
�	utility may continue and extend service in its area of public
�	convenience and necessity under the rights granted by its
�	certificate and this chapter.
�	�������(b)��A municipality that seeks to extend a certificate of
�	public convenience and necessity beyond the municipality's
�	extraterritorial jurisdiction must ensure that the municipality
�	complies with Section 13.241 in relation to the area covered by the
�	portion of the certificate that extends beyond the municipality's
�	extraterritorial jurisdiction.
�	�������(c)��The commission, after notice to the municipality and an
�	opportunity for a hearing, may decertify an area outside a
�	municipality's extraterritorial jurisdiction if the municipality
�	does not provide service to the area on or before the fifth
�	anniversary of the date the certificate of public convenience and
�	necessity was granted for the area. �This subsection does not apply
�	to a certificate of public convenience and necessity for an area:
�	�������������(1)��that was transferred to a municipality on approval
�	of the commission; and
�	�������������(2)��in relation to which the municipality has spent
�	public funds.
�	�������(d)��To the extent of a conflict between this section and
�	Section 13.245, Section 13.245 prevails�[The commission may not
�	extend a municipality's certificate of public convenience and
�	necessity beyond its extraterritorial jurisdiction without the
�	written consent of the landowner who owns the property in which the
�	certificate is to be extended. The portion of any certificate of
�	public convenience and necessity that extends beyond the
�	extraterritorial jurisdiction of the municipality without the
�	consent of the landowner is void].
�	�������SECTION�2.09.��Subsection (a-1), Section 13.246, Water Code,
�	is amended to read as follows:
�	�������(a-1)��Except as otherwise provided by this subsection, in
�	addition to the notice required by Subsection (a), the commission
�	shall require notice to be mailed to each owner of a tract of land
�	that is at least 25 [50] acres and is wholly or partially included
�	in the area proposed to be certified. Notice required under this
�	subsection must be mailed by first class mail to the owner of the
�	tract according to the most current tax appraisal rolls of the
�	applicable central appraisal district at the time the commission
�	received the application for the certificate or amendment. Good
�	faith efforts to comply with the requirements of this subsection
�	shall be considered adequate notice to landowners. Notice under
�	this subsection is not required for a matter filed with the
�	commission under:
�	�������������(1)��Section 13.248 or 13.255; or
�	�������������(2)��Chapter 65.
�	�������SECTION�2.10.��Subsection (b), Section 15.102, Water Code,
�	is amended to read as follows:
�	�������(b)��The loan fund may also be used by the board to provide:
�	�������������(1)��grants or loans for projects that include
�	supplying water and wastewater services in economically distressed
�	areas or nonborder colonias as provided by legislative
�	appropriations, this chapter, and board rules, including projects
�	involving retail distribution of those services; and
�	�������������(2)��grants for:
�	�������������������(A)��projects for which federal grant funds are
�	placed in the loan fund;
�	�������������������(B)��projects, on specific legislative
�	appropriation for those projects; or
�	�������������������(C)��water conservation, desalination, brush
�	control, weather modification, regionalization, and projects
�	providing regional water quality enhancement services as defined by
�	board rule, including regional conveyance systems.
�	�������SECTION�2.11.��Subchapter Q, Chapter 15, Water Code, is
�	amended by adding Section 15.9751 to read as follows:
�	�������Sec.�15.9751.��PRIORITY FOR WATER CONSERVATION. �The board
�	shall give priority to applications for funds for the
�	implementation of water supply projects in the state water plan by
�	entities that:
�	�������������(1)��have already demonstrated significant water
�	conservation savings; or
�	�������������(2)��will achieve significant water conservation
�	savings by implementing the proposed project for which the
�	financial assistance is sought.
�	�������SECTION�2.12.��Section 16.017, Water Code, is amended to
�	read as follows:
�	�������Sec.�16.017.��TOPOGRAPHIC AND GEOLOGIC MAPPING. �(a)��The
�	executive administrator shall carry out the program for topographic
�	and geologic mapping of the state.
�	�������(b)��The executive administrator shall operate as part of the
�	Texas Natural Resources Information System a strategic mapping
�	program to acquire, store, and distribute digital, geospatial
�	information.
�	�������SECTION�2.13.��Subchapter B, Chapter 16, Water Code, is
�	amended by adding Sections 16.023 and 16.024 to read as follows:
�	�������Sec.�16.023.��STRATEGIC MAPPING ACCOUNT. (a)��The strategic
�	mapping account is an account in the general revenue fund. �The
�	account consists of:
�	�������������(1)��money directly appropriated to the board;
�	�������������(2)��money transferred by the board from other funds
�	available to the board;
�	�������������(3)��money from gifts or grants from the United States
�	government, state, regional, or local governments, educational
�	institutions, private sources, or other sources;
�	�������������(4)��proceeds from the sale of maps, data,
�	publications, and other items; and
�	�������������(5)��interest earned on the investment of money in the
�	account and depository interest allocable to the account.
�	�������(b)��The account may be appropriated only to the board to:
�	�������������(1)��develop, administer, and implement the strategic
�	mapping program;
�	�������������(2)��provide grants to political subdivisions for
�	projects related to the development, use, and dissemination of
�	digital, geospatial information; and
�	�������������(3)��administer, implement, and operate other programs
�	of the Texas Natural Resources Information System, including:
�	�������������������(A)��the operation of a Texas-Mexico border region
�	information center for the purpose of implementing Section 16.021
�	(e)(5);
�	�������������������(B)��the acquisition, storage, and distribution
�	of historical maps, photographs, and paper map products;
�	�������������������(C)��the maintenance and enhancement of
�	information technology; and
�	�������������������(D)��the production, storage, and distribution of
�	other digital base maps, as determined by the executive
�	administrator or a state agency that is a member of the Texas
�	Geographic Information Council.
�	�������(c)��The board may invest, reinvest, and direct the
�	investment of any available money in the fund as provided by law for
�	the investment of money under Section 404.024, Government Code.
�	�������Sec.�16.024.��FINANCIAL ASSISTANCE FOR DIGITAL, GEOSPATIAL
�	INFORMATION PROJECTS. (a)��A political subdivision seeking a grant
�	under Section 16.023 must file an application with the board.
�	�������(b)��An application must be filed in the manner and form
�	required by board rules.
�	�������(c)��In reviewing an application by a political subdivision
�	for a grant, the board shall consider:
�	�������������(1)��the degree to which the political subdivision has
�	used other available resources to finance the development, use, and
�	dissemination of digital, geospatial information;
�	�������������(2)��the willingness and ability of the political
�	subdivision to develop, use, and disseminate digital, geospatial
�	information; and
�	�������������(3)��the benefits that will be gained by making the
�	grant.
�	�������(d)��The board may approve a grant to a political subdivision
�	only if the board finds that:
�	�������������(1)��the grant will supplement rather than replace
�	money of the political subdivision;
�	�������������(2)��the public interest is served by providing the
�	grant; and
�	�������������(3)��the grant will further the state's ability to
�	gather, develop, use, and disseminate digital, geospatial
�	information.
�	�������SECTION�2.14.��Subsection (h), Section 16.053, Water Code,
�	is amended by adding Subdivisions (10) and (11) to read as follows:
�	�������������(10)��The regional water planning group may amend the
�	regional water plan after the plan has been approved by the board.
�	Subdivisions (1)-(9) apply to an amendment to the plan in the same
�	manner as those subdivisions apply to the plan.
�	�������������(11)��This subdivision applies only to an amendment to
�	a regional water plan approved by the board. �This subdivision does
�	not apply to the adoption of a subsequent regional water plan for
�	submission to the board as required by Subsection (i).
�	Notwithstanding Subdivision (10), the regional water planning
�	group may amend the plan in the manner provided by this subdivision
�	if the executive administrator makes a written determination that
�	the proposed amendment qualifies for adoption in the manner
�	provided by this subdivision before the regional water planning
�	group votes on adoption of the amendment. A proposed amendment
�	qualifies for adoption in the manner provided by this subdivision
�	only if the amendment is a minor amendment, as defined by board
�	rules, that will not result in the overallocation of any existing or
�	planned source of water, does not relate to a new reservoir, and
�	will not have a significant effect on instream flows or freshwater
�	inflows to bays and estuaries. If the executive administrator
�	determines that a proposed amendment qualifies for adoption in the
�	manner provided by this subdivision, the regional water planning
�	group may adopt the amendment at a public meeting held in accordance
�	with Chapter 551, Government Code. The proposed amendment must be
�	placed on the agenda for the meeting, and notice of the meeting must
�	be given in the manner provided by Chapter 551, Government Code, at
�	least two weeks before the date the meeting is held. The public
�	must be provided an opportunity to comment on the proposed
�	amendment at the meeting.
�	�������SECTION�2.15.��Subsection (r), Section 16.053, Water Code,
�	as added by Chapter 1097, Acts of the 79th Legislature, Regular
�	Session, 2005, is amended to read as follows:
�	�������(r)��The board by rule shall provide for reasonable
�	flexibility to allow for a timely amendment of a regional water
�	plan, the board's approval of an amended regional water plan, and
�	the amendment of the state water plan. �If an amendment under this
�	subsection is[,]�to facilitate planning for water supplies
�	reasonably required for a clean coal project, as defined by Section
�	5.001, the[. �The]�rules may allow for amending a regional water
�	plan without providing notice and without a public meeting or
�	hearing under Subsection (h) if the amendment does not:
�	�������������(1)��significantly change the regional water plan, as
�	reasonably determined by the board; or
�	�������������(2)��adversely affect other water management
�	strategies in the regional water plan.
�	�������SECTION�2.16.��Subchapter E, Chapter 16, Water Code, is
�	amended by adding Section 16.1311 to read as follows:
�	�������Sec.�16.1311.��PRIORITY FOR WATER CONSERVATION. �The board
�	shall give priority to applications for funds for implementation of
�	water supply projects in the state water plan by entities that:
�	�������������(1)��have already demonstrated significant water
�	conservation savings; or
�	�������������(2)��will achieve significant water conservation
�	savings by implementing the proposed project for which the
�	financial assistance is sought.
�	�������SECTION�2.17.��Sections 16.315 and 16.319, Water Code, are
�	amended to read as follows:
�	�������Sec.�16.315.��POLITICAL SUBDIVISIONS; COMPLIANCE WITH
�	FEDERAL REQUIREMENTS. All political subdivisions are hereby
�	authorized to take all necessary and reasonable actions that are
�	not less stringent than [to comply with] the requirements and
�	criteria of the National Flood Insurance Program, including but not
�	limited to:
�	�������������(1)��making appropriate land use adjustments to
�	constrict the development of land which is exposed to flood damage
�	and minimize damage caused by flood losses;
�	�������������(2)��guiding the development of proposed future
�	construction, where practicable, away from a location which is
�	threatened by flood hazards;
�	�������������(3)��assisting in minimizing damage caused by floods;
�	�������������(4)��authorizing and engaging in continuing studies of
�	flood hazards in order to facilitate a constant reappraisal of the
�	flood insurance program and its effect on land use requirements;
�	�������������(5)��engaging in floodplain management, [and] adopting
�	and enforcing permanent land use and control measures that are not
�	less stringent than those [consistent with the criteria]
�	established under the National Flood Insurance Act, and providing
�	for the imposition of penalties on landowners who violate this
�	subchapter or rules adopted or orders issued under this subchapter;
�	�������������(6)��declaring property, when such is the case, to be in
�	violation of local laws, regulations, or ordinances which are
�	intended to discourage or otherwise restrict land development or
�	occupancy in flood-prone areas and notifying the director, or
�	whomever the director designates, of such property;
�	�������������(7)��consulting with, giving information to, and
�	entering into agreements with the Federal Emergency Management
�	Agency for the purpose of:
�	�������������������(A)��identifying and publishing information with
�	respect to all flood areas, including coastal areas; and
�	�������������������(B)��establishing flood-risk zones in all such
�	areas and making estimates with respect to the rates of probable
�	flood-caused loss for the various flood-risk zones for each of
�	these areas;
�	�������������(8)��cooperating with the director's studies and
�	investigations with respect to the adequacy of local measures in
�	flood-prone areas as to land management and use, flood control,
�	flood zoning, and flood damage prevention;
�	�������������(9)��taking steps, using regional, watershed, and
�	multi-objective approaches, to improve the long-range management
�	and use of flood-prone areas;
�	�������������(10)��purchasing, leasing, and receiving property from
�	the director when such property is owned by the federal government
�	and lies within the boundaries of the political subdivision
�	pursuant to agreements with the Federal Emergency Management Agency
�	or other appropriate legal representative of the United States
�	Government;
�	�������������(11)��requesting aid pursuant to the entire
�	authorization from the commission;
�	�������������(12)��satisfying criteria adopted and promulgated by
�	the commission pursuant to the National Flood Insurance Program;
�	�������������(13)��adopting permanent land use and control measures
�	with enforcement provisions that are not less stringent than [which
�	are consistent with] the criteria for land management and use
�	adopted by the director;
�	�������������(14)��adopting more comprehensive floodplain
�	management rules that the political subdivision determines are
�	necessary for planning and appropriate to protect public health and
�	safety;
�	�������������(15)��participating in floodplain management and
�	mitigation initiatives such as the National Flood Insurance
�	Program's Community Rating System, Project Impact, or other
�	initiatives developed by federal, state, or local government; and
�	�������������(16)��collecting reasonable fees to cover the cost of
�	administering a local floodplain management program.
�	�������Sec.�16.319.��QUALIFICATION. Political subdivisions
�	wishing to qualify under the National Flood Insurance Program shall
�	have the authority to do so by complying with the directions of the
�	Federal Emergency Management Agency and by:
�	�������������(1)��evidencing to the director a positive interest in
�	securing flood insurance coverage under the National Flood
�	Insurance Program; and
�	�������������(2)��giving to the director satisfactory assurance that
�	measures will have been adopted for the political subdivision that
�	[which measures] will be not less stringent than [consistent with]
�	the comprehensive criteria for land management and use developed by
�	the Federal Emergency Management Agency.
�	�������SECTION�2.18.��Chapter 16, Water Code, is amended by adding
�	Subchapter K to read as follows:
�	SUBCHAPTER K. WATER CONSERVATION
�	�������Sec.�16.401.��STATEWIDE WATER CONSERVATION PUBLIC AWARENESS
�	PROGRAM. �(a)��The executive administrator shall develop and
�	implement a statewide water conservation public awareness program
�	to educate residents of this state about water conservation. The
�	program shall take into account the differences in water
�	conservation needs of various geographic regions of the state and
�	shall be designed to complement and support existing local and
�	regional water conservation programs.
�	�������(b)��The executive administrator is required to develop and
�	implement the program required by Subsection (a) in a state fiscal
�	biennium only if the legislature appropriates sufficient money in
�	that biennium specifically for that purpose.
�	�������Sec.�16.402.��WATER CONSERVATION PLAN REVIEW. (a)��Each
�	entity that is required to submit a water conservation plan to the
�	commission under this code shall submit a copy of the plan to the
�	executive administrator.
�	�������(b)��Each entity that is required to submit a water
�	conservation plan to the executive administrator, board, or
�	commission under this code shall report annually to the executive
�	administrator on the entity's progress in implementing the plan.
�	�������(c)��The executive administrator shall review each water
�	conservation plan and annual report to determine compliance with
�	the minimum requirements established by Section 11.1271 and the
�	submission deadlines developed under Subsection (e) of this
�	section.
�	�������(d)��The board may notify the commission if the board
�	determines that an entity has violated this section or a rule
�	adopted under this section. �Notwithstanding Section 7.051(b), a
�	violation of this section or of a rule adopted under this section is
�	enforceable in the manner provided by Chapter 7 for a violation of a
�	provision of this code within the commission's jurisdiction or of a
�	rule adopted by the commission under a provision of this code within
�	the commission's jurisdiction.
�	�������(e)��The board and commission jointly shall adopt rules:
�	�������������(1)��identifying the minimum requirements and
�	submission deadlines for the annual reports required by Subsection
�	(b); and
�	�������������(2)��providing for the enforcement of this section and
�	rules adopted under this section.
�	�������SECTION�2.19.��Section 17.125, Water Code, is amended by
�	adding Subsection (b-2) to read as follows:
�	�������(b-2)��The board shall give priority to applications for
�	funds for implementation of water supply projects in the state
�	water plan by entities that:
�	�������������(1)��have already demonstrated significant water
�	conservation savings; or
�	�������������(2)��will achieve significant water conservation
�	savings by implementing the proposed project for which the
�	financial assistance is sought.
�	�������SECTION�2.20.��Chapter 35, Water Code, is amended by adding
�	Section 35.020 to read as follows:
�	�������Sec.�35.020.��PUBLIC PARTICIPATION IN GROUNDWATER
�	MANAGEMENT PROCESS. �It is the policy of the state to encourage
�	public participation in the groundwater management process in areas
�	within a groundwater management area not represented by a
�	groundwater conservation district.
�	�������SECTION�2.21.��Subsection (d), Section 36.113, Water Code,
�	is amended to read as follows:
�	�������(d)��Before granting or denying a permit or permit amendment,
�	the district shall consider whether:
�	�������������(1)��the application conforms to the requirements
�	prescribed by this chapter and is accompanied by the prescribed
�	fees;
�	�������������(2)��the proposed use of water unreasonably affects
�	existing groundwater and surface water resources or existing permit
�	holders;
�	�������������(3)��the proposed use of water is dedicated to any
�	beneficial use;
�	�������������(4)��the proposed use of water is consistent with the
�	district's certified water management plan;
�	�������������(5)��if the well will be located in the Hill Country
�	Priority Groundwater Management Area, the proposed use of water
�	from the well is wholly or partly to provide water to a pond, lake,
�	or reservoir to enhance the appearance of the landscape;
�	�������������(6)��the applicant has agreed to avoid waste and
�	achieve water conservation; and
�	�������������(7)�[(6)]��the applicant has agreed that reasonable
�	diligence will be used to protect groundwater quality and that the
�	applicant will follow well plugging guidelines at the time of well
�	closure.
�	�������SECTION�2.22.��Subsection (d), Section 36.117, Water Code,
�	is amended to read as follows:
�	�������(d)��Notwithstanding Subsection (b), a district may require
�	a well to be permitted by the district and to comply with all
�	district rules if:
�	�������������(1)��the withdrawals from a well in the Hill Country
�	Priority Groundwater Management Area and exempted under Subsection
�	(b)(1) are no longer used solely for domestic use or to provide
�	water for livestock or poultry;
�	�������������(2)��the purpose of a well exempted under Subsection
�	(b)(2) is no longer solely to supply water for a rig that is
�	actively engaged in drilling or exploration operations for an oil
�	or gas well permitted by the Railroad Commission of Texas; or
�	�������������(3)�[(2)]��the withdrawals from a well exempted under
�	Subsection (b)(3) are no longer necessary for mining activities or
�	are greater than the amount necessary for mining activities
�	specified in the permit issued by the Railroad Commission of Texas
�	under Chapter 134, Natural Resources Code.
�	�������SECTION�2.23.��Subchapter H, Chapter 49, Water Code, is
�	amended by adding Section 49.2205 to read as follows:
�	�������Sec.�49.2205.��USE OF RIGHT-OF-WAY EASEMENTS FOR CERTAIN
�	ENERGY-RELATED PURPOSES. (a)��To foster the generation and
�	transmission of electricity from clean coal projects, as defined by
�	Section 5.001, renewable energy technology projects, and the
�	capture and storage of carbon dioxide and other greenhouse gases, a
�	district or water supply corporation may allow others to construct,
�	maintain, and operate transmission lines and pipelines over, under,
�	across, on, or along rights-of-way and easements of the district or
�	water supply corporation for transmission of electricity generated
�	by those projects and the transportation of carbon dioxide and
�	other greenhouse gases, unless the use:
�	�������������(1)��is incompatible with the public use for which the
�	easement was acquired or condemned; or
�	�������������(2)��compromises public health or safety.
�	�������(b)��The district or water supply corporation is not required
�	to obtain additional consideration for the construction,
�	maintenance, and operation of the transmission lines and pipelines
�	under this section if the person constructing, maintaining, and
�	operating the transmission lines and pipelines bears all costs of
�	the construction, maintenance, and operation of the transmission
�	lines and pipelines and restoring the property. The activities
�	authorized by this subsection may be exercised only with the
�	consent of and subject to the direction of the governing body of the
�	district or water supply corporation.
�	�������(c)��A person that is subject to Subsection (a) that acquires
�	a right-of-way easement on real property for a public use may
�	include in the notice of the acquisition a statement that to foster
�	the generation and transmission of electricity from clean coal
�	projects as defined by Section 5.001, Water Code, renewable energy
�	technology projects, and the capture and storage of carbon dioxide
�	and other greenhouse gases, water districts and water supply
�	corporations may allow others to construct, maintain, and operate
�	transmission lines and pipelines over, under, across, on, or along
�	the rights-of-way and easements for the transmission of electricity
�	that is generated by those projects and transportation of carbon
�	dioxide and other greenhouse gases, unless the use:
�	�������������(1)��is incompatible with the public use for which the
�	easement was acquired or condemned; or
�	�������������(2)��compromises public health or safety.
�	�������(d)��This section applies only to a right-of-way or easement
�	acquired by the district or water supply corporation on or after
�	September 1, 2007.
�	�������(e)��This section does not apply to a right-of-way or
�	easement that is used for the transmission of electricity without
�	the consent of a person owning the transmission lines if that use
�	began before September 1, 2007.
�	�������SECTION�2.24.��Chapter 49, Water Code, is amended by adding
�	Subchapter O to read as follows:
�	SUBCHAPTER O. �EFFECT OF SUBDIVISION OF NONAGRICULTURAL LAND ON
�	WATER RIGHTS
�	�������Sec.�49.501.��DEFINITION. �In this subchapter, "municipal
�	water supplier"�means a municipality or a water supply corporation.
�	�������Sec.�49.502.��APPLICABILITY. �This subchapter applies only
�	to a district, other than a drainage district, located wholly or
�	partly in a county:
�	�������������(1)��that borders the Gulf of Mexico and the United
�	Mexican States; or
�	�������������(2)��that is adjacent to a county described by
�	Subdivision (1).
�	�������Sec.�49.503.��PETITION BY MUNICIPAL WATER SUPPLIER TO
�	CONVERT WATER USE AFTER SUBDIVISION. �(a)��This section applies
�	only to land:
�	�������������(1)��that is:
�	�������������������(A)��subdivided into town lots or blocks or small
�	parcels of the same general nature as town lots or blocks;
�	�������������������(B)��designed, intended, or suitable for
�	residential or other nonagricultural purposes, including streets,
�	alleys, parkways, parks, detention or retention ponds, and railroad
�	property and rights-of-way; or
�	�������������������(C)��in a subdivision created to meet the
�	requirements of a governmental entity authorized to require a
�	recorded plat of subdivided lands;
�	�������������(2)��that is in a subdivision for which a plat or map
�	has been filed and recorded in the office of the county clerk of
�	each county in which the subdivision is wholly or partly located;
�	and
�	�������������(3)��that is or was assessed as flat rate irrigable
�	property in the municipal water supplier's certificated service
�	area or its corporate area.
�	�������(b)��A municipal water supplier that serves land described by
�	Subsection (a) may petition the district in accordance with this
�	section to convert the proportionate irrigation water right to the
�	Rio Grande from irrigation use to municipal use with municipal
�	priority of allocation under commission rules, for the use and
�	benefit of the municipal water supplier.
�	�������(c)��The municipal water supplier must file the petition with
�	the district not later than January 1 after the expiration of two
�	years after the date the plat or map was recorded under Subsection
�	(a). �The district shall consider the petition not later than
�	January 31 of the year following the year in which the petition was
�	filed.
�	�������(d)��The petition must identify by subdivision name or other
�	sufficient description the land that the municipal water supplier
�	supplies or has the right to supply potable water.
�	�������(e)��This section applies only to one subdivision of the land
�	recorded under Subsection (a). �This section does not apply to any
�	further subdivision of the same property.
�	�������Sec.�49.504.��EFFECT OF MUNICIPAL WATER SUPPLIER'S FAILURE
�	TO FILE A PETITION. �(a)��If a municipal water supplier does not
�	file a petition under Section 49.503, the district may retain the
�	water rights for use by the district or may declare the water as
�	excess and contract for the sale or use of the water as determined
�	by the district.
�	�������(b)��Before a district may contract for the sale or use of
�	water for more than one year with a purchaser located outside of a
�	county described by Section 49.502, the district must, for 90 days:
�	�������������(1)��make the water available under the same terms to
�	all municipal water suppliers located in those counties; and
�	�������������(2)��advertise the offer to sell or contract for the use
�	of the water by posting notice on:
�	�������������������(A)��any website of the Rio Grande Watermaster's
�	Office;
�	�������������������(B)��any website of the Rio Grande Regional Water
�	Authority; and
�	�������������������(C)��the official posting place for the district's
�	board meetings at the district's office.
�	�������(c)��If, after the 90th day after the last date on which the
�	district posted notice, a municipal water supplier in a county
�	described by Section 49.502 has not contracted with the district
�	for the sale or use of the water, the district may contract with any
�	other person for the sale or use of the water under the terms of the
�	offer advertised under Subsection (b).
�	�������Sec.�49.505.��CALCULATION OF PROPORTIONATE WATER RIGHTS. �A
�	district that receives a petition under Section 49.503 shall
�	compute the proportionate amount of water rights to the Rio Grande. �
�	The proportionate amount of water rights is equal to the amount of
�	irrigable acres of land in the subdivision multiplied by the lesser
�	of:
�	�������������(1)��1.25 acre-feet per irrigable acre; or
�	�������������(2)��the sum of all irrigation water rights owned by the
�	district on September 1, 2007, as if the water rights had been
�	converted to municipal use under applicable commission rules,
�	divided by the total amount of irrigable acres of land in the
�	district on September 1, 2007.
�	�������Sec.�49.506.��PROVISION OR CONVERSION OF PROPORTIONATE WATER
�	RIGHTS BY DISTRICT. �(a)��Not later than the second anniversary of
�	the date the municipal water supplier files a petition under
�	Section 49.503:
�	�������������(1)��a district shall provide the municipal water
�	supplier with the proportionate water rights described by Section
�	49.505 from the district's existing water rights; or
�	�������������(2)��a district shall, if the district does not have
�	sufficient existing water rights:
�	�������������������(A)��apply for appropriate amendments to the
�	district's water rights under commission rules to convert the
�	proportionate water rights from irrigation use to municipal use
�	with municipal priority of allocation; and
�	�������������������(B)��provide to the municipal water supplier the
�	converted rights described by Section 49.505.
�	�������(b)��The district may continue to use the irrigation use
�	water for district purposes until:
�	�������������(1)��the commission approves the amendment to the
�	district's water rights; or
�	�������������(2)��the water is otherwise provided to the municipal
�	water supplier.
�	�������(c)��A district that applies for appropriate amendments
�	under Subsection (a)(2) shall provide the municipal water supplier
�	with an estimate of the district's reasonable costs for the
�	administrative proceedings. �The district is not required to begin
�	the proceedings until the municipal water supplier deposits the
�	amount of the estimate with the district. �The municipal water
�	supplier shall pay the district any reasonable costs that exceed
�	the estimate. �The district shall refund the balance of the deposit
�	if the actual cost is less than the estimate.
�	�������Sec.�49.507.��CONTRACT TO PURCHASE PROPORTIONATE WATER
�	RIGHTS; WATER RIGHTS SALE CONTRACT. �(a)��A municipal water
�	supplier may contract to purchase the proportionate water rights
�	described by Section 49.505.
�	�������(b)��The purchase price may not exceed 68 percent of the
�	current market value, as determined under Section 49.509, for the
�	year that the municipal water supplier petitions the district.
�	�������(c)��The contract must be in writing in a document entitled
�	"Water Rights Sales Contract."
�	�������(d)��The contract must include the purchase price for the
�	water rights or, if the consideration for the sale is not monetary,
�	the terms of the sale.
�	�������(e)��The municipal water supplier shall file the contract
�	with the Rio Grande watermaster not later than the 10th day after
�	the date the contract is executed.
�	�������(f)��The municipal water supplier shall pay the purchase
�	price when the proportionate amount of water rights is made
�	available to the municipal water supplier.
�	�������Sec.�49.508.��CONTRACT TO USE PROPORTIONATE WATER RIGHTS;
�	WATER SUPPLY CONTRACT. �(a)��A municipal water supplier may
�	contract to use water associated with the proportionate water
�	rights described by Section 49.505.
�	�������(b)��The contract must be for at least 40 years.
�	�������(c)��The price for the contractual right to use the municipal
�	use water is based on an amount for one acre-foot of municipal use
�	water with a municipal use priority of allocation and may not exceed
�	the sum of:
�	�������������(1)��an amount equal to the district's annual flat rate
�	charge per assessed acre; and
�	�������������(2)��the equivalent of the charge for four irrigations
�	per flat rate acre of irrigable property in the district.
�	�������(d)��The parties to the contract shall agree on the terms of
�	payment of the contract price.
�	�������(e)��The board periodically shall determine the flat rate
�	charge and irrigation per acre charge described by Subsection (c).
�	�������(f)��The contract must be in writing in a document entitled
�	"Water Supply Contract."��The contract may contain any terms to
�	which the parties agree.
�	�������(g)��The municipal water supplier shall file the contract
�	with the Rio Grande watermaster not later than the 10th day after
�	the date the contract is executed.
�	�������Sec.�49.509.��DUTY OF RIO GRANDE REGIONAL WATER AUTHORITY TO
�	CALCULATE CURRENT MARKET VALUE. �(a)��The Rio Grande Regional Water
�	Authority annually at its January meeting shall calculate the
�	current market value by using the average price per acre-foot of
�	municipal use water after conversion from irrigation use water to
�	municipal use water with a municipal priority of allocation under
�	commission rules of the last three purchases involving:
�	�������������(1)��a municipal water supplier;
�	�������������(2)��a party other than a municipal water supplier; and
�	�������������(3)��at least 100 acre-feet of municipal use water,
�	with municipal priority of allocation.
�	�������(b)��The Rio Grande Regional Water Authority shall use
�	information from the water rights sales contracts reported to the
�	Rio Grande Watermaster's Office to calculate the current market
�	value.
�	�������(c)��The Rio Grande Regional Water Authority shall make the
�	calculation:
�	�������������(1)��without charging any of the parties involved; and
�	�������������(2)��using 100 percent of the value of monetary
�	exchanges, not in-kind exchanges.
�	�������Sec.�49.510.��ACCOUNTING FOR SALE OF WATER RIGHTS. �A
�	district shall maintain an accounting of money received from the
�	sale of water rights under this subchapter.
�	�������Sec.�49.511.��CAPITAL IMPROVEMENTS. �A district shall
�	designate at least 75 percent of the proceeds from the sale of water
�	rights for capital improvements in the district.
�	�������Sec.�49.512.��MAP OF SERVICE AREA. �(a)��In this section,
�	"outer boundaries of a district"�means district boundaries without
�	considering any exclusion of land from inside the district.
�	�������(b)��Each municipal water supplier that has a certificate of
�	convenience and necessity service area in the outer boundaries of a
�	district shall file a map of the service area with the district.
�	�������(c)��The municipal water supplier shall update the map and
�	forward the map to the district when changes are made.
�	�������(d)��A district periodically shall provide to a municipal
�	water supplier that serves territory in the district a copy of the
�	district's map showing the outer boundaries of the district.
�	�������(e)��A district may request from a municipal water supplier a
�	map of the municipal water supplier's service area, and a municipal
�	water supplier may request from the district a map of the district's
�	outer boundaries. �On request, the district and a municipal water
�	supplier shall provide the map free of charge to each other at least
�	one time each year. �If the district or municipal water supplier
�	receives more than one request a year for a map, the district or
�	municipal water supplier may charge a reasonable fee for the map.
�	�������SECTION�2.25.��Subchapter Z, Chapter 51, Education Code, is
�	amended by adding Section 51.969 to read as follows:
�	�������Sec.�51.969.��ON-SITE RECLAIMED SYSTEM TECHNOLOGIES
�	CURRICULUM. The Texas Higher Education Coordinating Board shall
�	encourage each institution of higher education to develop
�	curriculum and provide related instruction regarding on-site
�	reclaimed system technologies, including rainwater harvesting,
�	condensate collection, or cooling tower blow down.
�	�������SECTION�2.26.��Chapter 68, Education Code, is amended by
�	adding Subchapter B to read as follows:
�	SUBCHAPTER B. �POWERS AND DUTIES OF BOARD
�	�������Sec.�68.21.��SUSTAINABLE WATER SUPPLY RESEARCH CENTER. �
�	(a)��In this section, "center" means the Sustainable Water Supply
�	Research Center.
�	�������(b)��The board may establish and operate the Sustainable
�	Water Supply Research Center as part of The University of Texas at
�	Arlington.
�	�������(c)��If established, the center shall:
�	�������������(1)��conduct, sponsor, or direct multidisciplinary
�	research directed toward:
�	�������������������(A)��promoting water conservation through
�	development of a sustainable water supply for this state; and
�	�������������������(B)��mitigating the effect of diminishing water
�	supplies on the economy and people of this state; and
�	�������������(2)��conduct a comprehensive, interdisciplinary
�	instructional program in water conservation with emphasis on
�	development of a sustainable water supply at the graduate level and
�	offer undergraduate courses for students interested in water
�	conservation and sustainable water supply development.
�	�������(d)��The organization, control, and management of the center
�	are vested in the board.
�	�������(e)��The center may enter into an agreement or may cooperate
�	with a public or private entity to perform the research functions of
�	the center.
�	�������(f)��The board may solicit, accept, and administer gifts and
�	grants from any public or private source for the use and benefit of
�	the center.
�	�������SECTION�2.27.��Section 447.004, Government Code, is amended
�	by adding Subsection (c-1) to read as follows:
�	�������(c-1)��The procedural standards adopted under this section
�	must require that on-site reclaimed system technologies, including
�	rainwater harvesting, condensate collection, or cooling tower blow
�	down, or a combination of those system technologies, for nonpotable
�	indoor use and landscape watering be incorporated into the design
�	and construction of:
�	�������������(1)��each new state building with a roof measuring at
�	least 10,000 square feet; and
�	�������������(2)��any other new state building for which the
�	incorporation of such systems is feasible.
�	�������SECTION�2.28.��Section 341.042, Health and Safety Code, is
�	amended to read as follows:
�	�������Sec.�341.042.��STANDARDS FOR HARVESTED RAINWATER. �(a)��The
�	commission shall establish recommended standards relating to the
�	domestic use of harvested rainwater, including health and safety
�	standards for treatment and collection methods for harvested
�	rainwater intended for drinking, cooking, or bathing.
�	�������(b)��The commission by rule shall provide that if a structure
�	is connected to a public water supply system and has a rainwater
�	harvesting system for indoor use:
�	�������������(1)��the structure must have appropriate
�	cross-connection safeguards; and
�	�������������(2)��the rainwater harvesting system may be used only
�	for nonpotable indoor purposes.
�	�������(c)��Standards and rules adopted by the commission under this
�	chapter governing public drinking water supply systems do not apply
�	to a person:
�	�������������(1)��who harvests rainwater for domestic use; and
�	�������������(2)��whose property is not connected to a public
�	drinking water supply system.
�	�������SECTION�2.29.��Subsection (b), Section 212.0101, Local
�	Government Code, is amended to read as follows:
�	�������(b)��The Texas [Natural Resource Conservation] Commission on
�	Environmental Quality by rule shall establish the appropriate form
�	and content of a certification to be attached to a plat application
�	under this section.
�	�������SECTION�2.30.��Subsection (b), Section 232.0032, Local
�	Government Code, is amended to read as follows:
�	�������(b)��The Texas [Natural Resource Conservation] Commission on
�	Environmental Quality by rule shall establish the appropriate form
�	and content of a certification to be attached to a plat application
�	under this section.
�	�������SECTION�2.31.��Chapter 401, Local Government Code, is
�	amended by adding Section 401.006 to read as follows:
�	�������Sec.�401.006.��WATER CONSERVATION BY HOME-RULE
�	MUNICIPALITY. A home-rule municipality may adopt and enforce
�	ordinances requiring water conservation in the municipality and by
�	customers of the municipality's municipally owned water and sewer
�	utility in the extraterritorial jurisdiction of the municipality.
�	�������SECTION�2.32.��Subchapter Z, Chapter 402, Local Government
�	Code, is amended by adding Section 402.911 to read as follows:
�	�������Sec.�402.911.��DUTIES OF WATER SERVICE PROVIDER TO AN AREA
�	SERVED BY SEWER SERVICE OF CERTAIN POLITICAL SUBDIVISIONS. �
�	(a)��This section applies only to an area:
�	�������������(1)��that is located in a county that has a population
�	of more than 1.3 million; and
�	�������������(2)��in which a customer's sewer service is provided by
�	a municipality or conservation and reclamation district that also
�	provides water service to other customers and the same customer's
�	water service is provided by another entity.
�	�������(b)��For each person the water service provider serves in an
�	area to which this section applies, the water service provider
�	shall provide the municipality or district with any relevant
�	customer information so that the municipality or district may bill
�	users of the sewer service directly and verify the water
�	consumption of users. �Relevant customer information provided under
�	this section includes the name, address, and telephone number of
�	the customer of the water service provider, the monthly meter
�	readings of the customer, monthly consumption information,
�	including any billing adjustments, and certain meter information,
�	such as brand, model, age, and location.
�	�������(c)��The municipality or district shall reimburse the water
�	service provider for its reasonable and actual incremental costs
�	for providing services to the municipality or district under this
�	section. �Incremental costs are limited to only those costs that are
�	in addition to the water service provider's costs in providing its
�	services to its customers, and those costs must be consistent with
�	the costs incurred by other water utility providers. �Only if
�	requested by the wastewater provider, the water service provider
�	must provide the municipality or district with documentation
�	certified by a certified public accountant of the reasonable and
�	actual incremental costs for providing services to the municipality
�	or district under this section.
�	�������(d)��A municipality or conservation and reclamation district
�	may provide written notice to a person to whom the municipality's or
�	district's sewer service system provides service if the person has
�	failed to pay for the service for more than 90 days. �The notice must
�	state the past due amount owed and the deadline by which the past
�	due amount must be paid or the person will lose water service. �The
�	notice may be sent by mail or hand-delivered to the location at
�	which the sewer service is provided.
�	�������(e)��The municipality or district may notify the water
�	service provider of a person who fails to make timely payment after
�	the person receives notice under Subsection (d). �The notice must
�	indicate the number of days the person has failed to pay for sewer
�	service and the total amount past due. �On receipt of the notice,
�	the water service provider shall discontinue water service to the
�	person.
�	�������(f)��This section does not apply to a nonprofit water supply
�	or sewer service corporation created under Chapter 67, Water Code,
�	or a district created under Chapter 65, Water Code.
�	�������SECTION�2.33.��Section 430.003, Local Government Code, is
�	amended to read as follows:
�	�������Sec.�430.003.��EXEMPTIONS OF CERTAIN [STATE] PROPERTY FROM
�	INFRASTRUCTURE FEES. �No county, municipality, or utility district
�	may collect from a state agency or a public or private institution
�	of higher education any fee charged for the development or
�	maintenance of programs or [of] facilities for the control of
�	excess water or storm water.
�	�������SECTION�2.34.��Section 1903.053, Occupations Code, is
�	amended to read as follows:
�	�������Sec.�1903.053.��STANDARDS. �(a)��The commission shall adopt
�	by rule and enforce standards governing:
�	�������������(1)��the connection of irrigation systems to any water
�	supply;
�	�������������(2)��the design, installation, and operation of
�	irrigation systems;
�	�������������(3)��water conservation; and
�	�������������(4)��the duties and responsibilities of licensed
�	irrigators.
�	�������(b)��[The commission may adopt standards for irrigation that
�	include water conservation, irrigation system design and
�	installation, and compliance with municipal codes.
�	�������[(c)]��The commission may not require or prohibit the use of
�	any irrigation system, component part, or equipment of any
�	particular brand or manufacturer.
�	�������(c)��In adopting standards under this section, the
�	commission shall consult the council.
�	�������SECTION�2.35.��(a)��In this section, "board" means the Texas
�	Water Development Board.
�	�������(b)��The board, in coordination with the Far West Texas
�	Regional Water Planning Group established pursuant to Section
�	16.053, Water Code, shall conduct a study regarding the possible
�	impact of climate change on surface water supplies from the Rio
�	Grande.
�	�������(c)��In conducting the study, the board shall convene a
�	conference within the Far West Texas regional water planning area
�	designated pursuant to Section 16.053, Water Code, to review:
�	�������������(1)��any analysis conducted by a state located to the
�	west of this state regarding the impact of climate change on surface
�	water supplies in that state;
�	�������������(2)��any other current analysis of potential impacts of
�	climate change on surface water resources; and
�	�������������(3)��recommendations for incorporation of potential
�	impacts of climate change into the Far West Texas Regional Water
�	Plan, including potential impacts to the Rio Grande in Texas
�	subject to the Rio Grande Compact and identification of feasible
�	water management strategies to offset any potential impacts.
�	�������(d)��The conference should include, but not be limited to,
�	the participation of representatives of:
�	�������������(1)��the Far West Texas Regional Water Planning Group;
�	�������������(2)��water authorities;
�	�������������(3)��industrial customers;
�	�������������(4)��agricultural interests;
�	�������������(5)��municipalities;
�	�������������(6)��fishing or recreational interests;
�	�������������(7)��environmental advocacy organizations; and
�	�������������(8)��institutions of higher education.
�	�������(e)��Not later than December 31, 2008, the board shall submit
�	to the legislature a written report regarding the study findings
�	under this section.
�	�������SECTION�2.36.��(a)��Chapter 9, Water Code, is repealed.
�	�������(b)��The Texas Water Advisory Council is abolished on the
�	effective date of this article.
�	�������SECTION�2.37.��Chapter 64, Water Code, is repealed.
�	�������SECTION�2.38.��As soon as practicable on or after the
�	effective date of this article, the Texas Water Development Board
�	shall appoint the initial members of the Water Conservation
�	Advisory Council, as required by Section 10.003, Water Code, as
�	added by this article. �In making the initial appointments, the
�	board shall designate seven members to serve terms expiring August
�	31, 2009, eight members to serve terms expiring August 31, 2011, and
�	eight members to serve terms expiring August 31, 2013.
�	�������SECTION�2.39.��The changes made by this Act to Section
�	13.2451, Water Code, apply only to:
�	�������������(1)��an application for a certificate of public
�	convenience and necessity or for an amendment to a certificate of
�	public convenience and necessity submitted to the Texas Commission
�	on Environmental Quality on or after the effective date of this Act;
�	�������������(2)��a proceeding to amend or revoke a certificate of
�	public convenience and necessity initiated on or after the
�	effective date of this Act;
�	�������������(3)��a certificate of public convenience and necessity
�	issued to a municipality, regardless of the date the certificate
�	was issued;
�	�������������(4)��an application by a municipality or by a utility
�	owned by a municipality for a certificate of public convenience and
�	necessity or for an amendment to a certificate, regardless of the
�	date the application was filed; and
�	�������������(5)��a proceeding to amend or revoke a certificate of
�	public convenience and necessity held by a municipality or by a
�	utility owned by a municipality, regardless of the date the
�	proceeding was initiated.
�	�������SECTION�2.40.��Sections 15.102 and 17.125, Water Code, as
�	amended by this article, and Sections 15.9751 and 16.1311, Water
�	Code, as added by this article, apply only to an application for
�	financial assistance filed with the Texas Water Development Board
�	on or after the effective date of this article. �An�application for
�	financial assistance filed before the effective date of this
�	article is governed by the law in effect on the date the application
�	was filed, and the former law is continued in effect for that
�	purpose.
�	�������SECTION�2.41.��The change in law made by Subchapter O,
�	Chapter 49, Water Code, as added by this Act, applies only to a
�	subdivision for which a plat or map has been recorded in the office
�	of the county clerk of a county on or after the effective date of
�	this Act. �A subdivision for which a plat or map was recorded before
�	the effective date of this Act is covered by the law in effect on the
�	date the plat or map was recorded, and the former law is continued
�	in effect for that purpose.
�	�������SECTION�2.42.��Not later than June 1, 2008, the Texas
�	Commission on Environmental Quality shall adopt standards as
�	required by Section 1903.053, Occupations Code, as amended by this
�	article, to take effect January 1, 2009.
�	�������SECTION�2.43.��Section 2.27 of this article, adding
�	Subsection (c-1), Section 447.004, Government Code, takes effect
�	September 1, 2009.
�	ARTICLE 3. �CONSTRUCTION AND OPERATION OF RESERVOIRS
�	�������SECTION�3.01.��Section 16.051, Water Code, is amended by
�	adding Subsection (i) to read as follows:
�	�������(i)��For purposes of this section, the acquisition of fee
�	title or an easement by a political subdivision for the purpose of
�	providing retail public utility service to property in the
�	reservoir site or allowing an owner of property in the reservoir
�	site to improve or develop the property may not be considered a
�	significant impairment that prevents the construction of a
�	reservoir site under Subsection (g). A fee title or easement
�	acquired under this subsection may not be considered the basis for
�	preventing the future acquisition of land needed to construct a
�	reservoir on a designated site.
�	�������SECTION�3.02.��Subchapter E, Chapter 16, Water Code, is
�	amended by adding Sections 16.143 and 16.144 to read as follows:
�	�������Sec.�16.143.��OPTION TO LEASE. (a)��A former owner of real
�	property used for agricultural purposes that was acquired,
�	voluntarily or through the exercise of the power of eminent domain,
�	for a reservoir whose site has been designated as unique for the
�	construction of a reservoir under Section 16.051(g) is entitled to
�	lease the property from the person who acquired the property under
�	terms that allow the former owner to continue to use the property
�	for agricultural purposes until the person who acquired the
�	property determines that such use must be terminated to allow for
�	the physical construction of the reservoir. Consistent with
�	Subsection (b), the lease is subject to the terms and conditions set
�	forth by the person who has acquired the property that are related
�	to the use of the property by the former owner, including the term
�	of the lease, the rent the former owner is required to pay under the
�	lease, and the uses that may be allowed on the property during the
�	term of the lease.
�	�������(b)��A former owner of real property used for agricultural
�	purposes is entitled to lease the property for the property's
�	agricultural rental value until the person who acquired the
�	property determines that the lease must be terminated to allow for
�	the physical construction of the reservoir.
�	�������Sec.�16.144.��ENVIRONMENTAL MITIGATION. (a)��If a person
�	proposing to construct a reservoir whose site has been designated
�	as unique for the construction of a reservoir under Section
�	16.051(g) is required to mitigate future adverse environmental
�	effects arising from the construction or operation of the reservoir
�	or its related facilities, the person shall, if authorized by the
�	applicable regulatory authority, attempt to mitigate those effects
�	by offering to contract with and pay an amount of money to an owner
�	of real property located outside of the reservoir site to maintain
�	the property through an easement instead of acquiring the fee
�	simple title to the property for that purpose.
�	�������(b)��An owner of real property may reject an offer made under
�	Subsection (a). If agreement on the terms of an easement under
�	Subsection (a) cannot be reached by the parties after a good faith
�	attempt and offer is made, then the party constructing the
�	reservoir may obtain fee title to the property through voluntary or
�	involuntary means.
�	ARTICLE 4. �UNIQUE RESERVOIR SITES AND SITES OF UNIQUE ECOLOGICAL
�	VALUE
�	�������SECTION�4.01.��Section 16.051, Water Code, is amended by
�	adding Subsection (g-1) to read as follows:
�	�������(g-1)��Notwithstanding any other provisions of law, a site is
�	considered to be a designated site of unique value for the
�	construction of a reservoir if the site is recommended for
�	designation in the 2007 state water plan adopted by the board and in
�	effect on May 1, 2007. The designation of a unique reservoir site
�	under this subsection terminates on September 1, 2015, unless there
�	is an affirmative vote by a proposed project sponsor to make
�	expenditures necessary in order to construct or file applications
�	for permits required in connection with the construction of the
�	reservoir under federal or state law.
�	�������SECTION�4.02.��DESIGNATION OF SITES OF UNIQUE ECOLOGICAL
�	VALUE. �The legislature, as authorized by Subsection (f), Section
�	16.051, Water Code, designates those river or stream segment sites
�	recommended in the 2007 state water plan as being of unique
�	ecological value.
�	�������SECTION�4.03.��RESTRICTION ON ELIGIBILITY TO HOLD WATER
�	RIGHTS; LIABILITY FOR CONSTRUCTION, OPERATION, AND MAINTENANCE
�	COSTS. (a)��This section applies only to the proposed Marvin
�	Nichols and Lake Fastrill reservoirs.
�	�������(b)��The right to appropriate at least 20 percent of the
�	quantity of water that is authorized to be appropriated from each
�	proposed reservoir must be held by one or more entities located in
�	the regional water planning area in which the reservoir is to be
�	located.
�	�������(c)��If one or more entities located outside the regional
�	water planning area in which a proposed reservoir is to be located
�	are to hold the right to appropriate a majority of the quantity of
�	water that is authorized to be appropriated from the reservoir,
�	that entity or those entities must pay all of the costs of
�	constructing, operating, and maintaining the reservoir until such
�	time as one or more entities located in the regional water planning
�	area in which the reservoir is to be located begins diverting water.
�	At such time, the entity or entities making a diversion shall pay a
�	pro-rata share of the cost of operating and maintaining the
�	reservoir.
�	�������SECTION�4.04.��STUDY COMMISSION ON REGION C WATER SUPPLY.
�	(a)��The Study Commission on Region C Water Supply is established.
�	The study commission consists of six members as follows:
�	�������������(1)��three members appointed by the Region C Regional
�	Water Planning Group; and
�	�������������(2)��three members appointed by the Region D Regional
�	Water Planning Group.
�	�������(b)��A member of the study commission may be, but is not
�	required to be, a voting member of the regional water planning group
�	that appointed the member.
�	�������(c)��The members of the study commission shall select a
�	presiding officer from among the members.
�	�������(d)��Members of the study commission are not entitled to
�	compensation for service on the study commission but may be
�	reimbursed for travel expenses incurred while conducting the
�	business of the study commission, as provided for in the General
�	Appropriations Act.
�	�������(e)��The study commission shall:
�	�������������(1)��review the water supply alternatives available to
�	the Region C Regional Water Planning Area, including obtaining
�	additional water supply from Wright Patman Lake, Toledo Bend
�	Reservoir, Lake Texoma, Lake O' the Pines, other existing and
�	proposed reservoirs, and groundwater;
�	�������������(2)��in connection with the review under Subdivision
�	(1) of this subsection, analyze the socioeconomic effect on the
�	area where the water supply is located that would result from the
�	use of the water to meet the water needs of the Region C Regional
�	Water Planning Area, including:
�	�������������������(A)��the effects on landowners, agricultural and
�	natural resources, businesses, industries, and taxing entities of
�	different water management strategies; and
�	�������������������(B)��in connection with the use by the Region C
�	Regional Water Planning Area of water from Wright Patman Lake, the
�	effect on water availability in that lake and the effect on
�	industries relying on that water availability;
�	�������������(3)��determine whether water demand in the Region C
�	Regional Water Planning Area may be reduced through additional
�	conservation and reuse measures so as to postpone the need for
�	additional water supplies;
�	�������������(4)��evaluate measures that would need to be taken to
�	comply with the mitigation requirements of the United States Army
�	Corps of Engineers in connection with any proposed new reservoirs,
�	including identifying potential mitigation sites;
�	�������������(5)��consider whether the mitigation burden described
�	by Subdivision (4) of this subsection may be shared by the Regions C
�	and D Regional Water Planning Areas in proportion to the allocation
�	to each region of water in any proposed reservoir;
�	�������������(6)��review innovative methods of compensation to
�	affected property owners, including royalties for water stored on
�	acquired properties and annual payments to landowners for
�	properties acquired for the construction of a reservoir to satisfy
�	future water management strategies;
�	�������������(7)��evaluate the minimum number of surface acres
�	required for the construction of proposed reservoirs in order to
�	develop adequate water supply; and
�	�������������(8)��identify the locations of proposed reservoir sites
�	and proposed mitigation sites, as applicable, as selected in
�	accordance with existing state and federal law, in the Regions C and
�	D Regional Water Planning Areas using satellite imagery with
�	sufficient resolution to permit land ownership to be determined.
�	�������(f)��The study commission may not be assisted by any person
�	that is a party to or is employed by a party to a contract to perform
�	engineering work with respect to site selection, permitting,
�	design, or construction of the proposed Marvin Nichols reservoir.
�	�������(g)��The Texas Water Development Board, on request of the
�	study commission, may provide staff support or other assistance
�	necessary to enable the study commission to carry out its duties.
�	The Texas Water Development Board shall provide funding for the
�	study commission, including funding of any studies conducted by the
�	study commission, from the regional planning budget of the board.
�	�������(h)��Not later than December 1, 2010, the study commission
�	shall deliver a report to the governor, lieutenant governor, and
�	speaker of the house of representatives that includes:
�	�������������(1)��any studies completed by the study commission;
�	�������������(2)��any legislation proposed by the study commission;
�	�������������(3)��a recommendation as to whether Marvin Nichols
�	should remain a designated reservoir site; and�
�	�������������(4)��other findings and recommendations of the study
�	commission.
�	�������(i)��The study commission is abolished and this section
�	expires December 31, 2011.
�	�������SECTION�4.05.��EFFECTIVE DATE. This article takes effect
�	immediately if this Act receives a vote of two-thirds of all the
�	members elected to each house, as provided by Section 39, Article
�	III, Texas Constitution. If this Act does not receive the vote
�	necessary for immediate effect, this article takes effect September
�	1, 2007.
�	ARTICLE 5. �LEGISLATIVE JOINT INTERIM COMMITTEE
�	�������SECTION�5.01.��(a)��In this section, "committee" means the
�	joint interim committee on state water funding.
�	�������(b)��The committee is composed of eight members as follows:
�	�������������(1)��the chair of the Senate Committee on Natural
�	Resources and the chair of the House Committee on Natural Resources
�	who shall serve as joint chairs of the committee;
�	�������������(2)��three members of the senate appointed by the
�	lieutenant governor; and
�	�������������(3)��three members of the house of representatives
�	appointed by the speaker of the house of representatives.
�	�������(c)��An appointed member of the committee serves at the
�	pleasure of the appointing official.
�	�������(d)��The committee shall meet at least annually with the
�	executive director of the Texas Commission on Environmental Quality
�	and the executive administrator of the Texas Water Development
�	Board to:
�	�������������(1)��receive information on water infrastructure needs
�	as identified in the state water plan;
�	�������������(2)��receive information on infrastructure cost and
�	funding options to be used by local entities to meet the needs
�	identified in the state water plan;
�	�������������(3)��receive analyses of the funding gap and
�	recommendations on how to address those funding needs;
�	�������������(4)��receive information on whether all water fees
�	assessed are sufficient to support the required regulatory
�	water-related state program functions and activities; and
�	�������������(5)��identify viable, sustainable, dedicated revenues
�	and fee sources, or increases to existing revenue and fees, to
�	support state water programs and to provide for natural resources
�	data collection and dissemination, financial assistance programs,
�	and water resources planning, including funding to implement water
�	management strategies in the state water plan.
�	�������(e)��The committee may hold hearings and may request reports
�	and other information from state agencies as necessary to carry out
�	this section.
�	�������(f)��The Senate Committee on Natural Resources and the House
�	Committee on Natural Resources shall provide staff necessary for
�	the committee to fulfill its duties.
�	�������(g)��Not later than December 1, 2008, the committee shall
�	report to the governor, the lieutenant governor, and the speaker of
�	the house of representatives on the committee's activities under
�	Subsection (d) of this section. The report shall include
�	recommendations of any legislative action necessary to address
�	funding needs to support the state's water programs and water
�	infrastructure needs.
�	ARTICLE 6. �WATER DEVELOPMENT BOARD
�	�������SECTION�6.01.��Section 16.344, Water Code, is amended by
�	adding Subsections (d) through (i) to read as follows:
�	�������(d)��Notwithstanding Section 16.343(g) or Section 16.350(a),
�	a political subdivision may temporarily continue to receive funds
�	under Subchapter K, Chapter 17, if the political subdivision
�	submits a request for temporary continuation of funding and the
�	board determines that:
�	�������������(1)��the political subdivision's initial funding
�	application and any amendments for a designated area were reviewed
�	and approved by the board before January 1, 2007;
�	�������������(2)��withholding funds would result in an undue
�	hardship for occupants of the property to be served by unreasonably
�	delaying the provision of adequate water or wastewater services;
�	�������������(3)��withholding funds would result in inefficient use
�	of local, state, or federal funds under the program;
�	�������������(4)��the political subdivision has committed to take
�	the necessary and appropriate actions to correct any deficiencies
�	in adoption or enforcement of the model rules within the time
�	designated by the board, but not later than the 90th day after the
�	date the board makes the determinations under this subsection;
�	�������������(5)��the political subdivision has sufficient
�	safeguards in place to prevent the proliferation of colonias; and
�	�������������(6)��during the 30 days after the date the board
�	receives a request under this subsection, the board, after
�	consulting with the attorney general, secretary of state, and
�	commission, has not received an objection from any of those
�	entities to the request for temporary continuation of funding.
�	�������(e)��In applying Subsection (d) to applications for
�	increased financial assistance, the board shall only consider areas
�	that were included in the initial application, except that the
�	board may reconsider the eligibility of areas that were the subject
�	of a facility plan in the initial application and that may be
�	determined to be eligible based on criteria in effect September 1,
�	2005.
�	�������(f)��The political subdivision shall take necessary and
�	appropriate actions to correct any deficiencies in its adoption and
�	enforcement of the model rules within the time period required by
�	the board, not to exceed the 90-day period described by Subsection
�	(d)(4), and provide evidence of compliance to the board. The board
�	shall discontinue funding unless the board makes a determination
�	based on the evidence provided that the political subdivision has
�	demonstrated sufficient compliance to continue funding.
�	�������(g)��Except as provided by Subsections (d)-(f), if the board
�	determines that a county or city that is required to adopt and
�	enforce the model rules is not enforcing the model rules, the board
�	shall discontinue funding for all projects within the county or
�	city that are funded under Subchapter K, Chapter 17.
�	�������(h)��The board may not accept or grant applications for
�	temporary funding under Subsection (d) after June 1, 2009.
�	�������(i)��Subsections (d), (e), (f), (g), and (h) and this
�	subsection expire September 1, 2009.
�	ARTICLE 7. �RATE CLASSES FOR BILLING
�	�������SECTION�7.01.��Subchapter H, Chapter 49, Water Code, is
�	amended by adding Section 49.2122 to read as follows:
�	�������Sec.�49.2122.��ESTABLISHMENT OF CUSTOMER CLASSES.
�	(a)��Notwithstanding any other law, a district may establish
�	different charges, fees, rentals, or deposits among classes of
�	customers that are based on any factor the district considers
�	appropriate, including:
�	�������������(1)��the similarity of the type of customer to other
�	customers in the class, including:
�	�������������������(A)��residential;
�	�������������������(B)��commercial;
�	�������������������(C)��industrial;
�	�������������������(D)��apartment;
�	�������������������(E)��rental housing;
�	�������������������(F)��irrigation;
�	�������������������(G)��homeowner associations;
�	�������������������(H)��builder;
�	�������������������(I)��out-of-district;
�	�������������������(J)��nonprofit organization; and
�	�������������������(K)��any other type of customer as determined by
�	the district;
�	�������������(2)��the type of services provided to the customer
�	class;
�	�������������(3)��the cost of facilities, operations, and
�	administrative services to provide service to a particular class of
�	customer, including additional costs to the district for security,
�	recreational facilities, or fire protection paid from other
�	revenues; and
�	�������������(4)��the total revenues, including ad valorem tax
�	revenues and connection fees, received by the district from a class
�	of customers relative to the cost of service to the class of
�	customers.
�	�������(b)��A district is presumed to have weighed and considered
�	appropriate factors and to have properly established charges, fees,
�	rentals, and deposits absent a showing that the district acted
�	arbitrarily and capriciously.
�	ARTICLE 8. STUDY OF ROLE OF LAKE SOMERVILLE IN ECONOMIC DEVELOPMENT
�	�������SECTION�8.01.��The legislature finds that:
�	�������������(1)��in 1954, the United States Congress authorized the
�	construction of Lake Somerville to provide flood control, water
�	conservation, and other beneficial uses for nearby areas;
�	subsequently, the United States Army Corps of Engineers began
�	reservoir construction in 1962 and began to impound water in 1967;
�	�������������(2)��straddling the borders of Burleson, Washington,
�	and Lee Counties, on Yegua Creek 20 river miles upstream from that
�	creek's confluence with the Brazos River, the lake has a storage
�	capacity of 337,700 acre-feet;
�	�������������(3)��operation of the lake is supervised by the Fort
�	Worth District of the United States Army Corps of Engineers; the
�	lake is one of nine federal reservoirs that are integrated into the
�	Brazos River Authority's basin-wide system and associated water
�	resource development master plan;
�	�������������(4)��the Brazos River Authority owns the stored water,
�	a source from which it furnishes supplies to the City of Brenham
�	according to a contract that was last renewed for a 10-year period
�	in 2003;
�	�������������(5)��also significantly involved in the region is the
�	Lower Colorado River Authority, which, from its diverse mix of
�	power plants, provides wholesale electricity to various
�	communities as well as offering them its economic research and
�	expertise;
�	�������������(6)��although Lake Somerville has long been a tourist
�	destination for fishing and other water recreation, the facility
�	has not fully effectuated the three-county economic impact that
�	originally was expected at the time that it was built; and
�	�������������(7)��a study of Lake Somerville's role in economic
�	development would assist in explaining why the lake has not yet had
�	that impact, beyond the tourism industry, and would help to
�	identify impediments that currently restrict its contribution as
�	well as strategies that would better maximize its economic
�	potential.
�	�������SECTION�8.02.��The Brazos River Authority and the Lower
�	Colorado River Authority shall:
�	�������������(1)��conduct, with appropriate input from the public
�	and private sectors, a joint baseline study of the role of Lake
�	Somerville in the economic development of the surrounding vicinity;
�	and
�	�������������(2)��jointly submit a full report of their findings and
�	recommendations to the 81st Legislature when that legislature
�	convenes in January 2009.
�	ARTICLE 9. �AGUA SPECIAL UTILITY DISTRICT
�	�������SECTION�9.01.��The heading to Chapter 7201, Special District
�	Local Laws Code, is amended to read as follows:
�	CHAPTER 7201. AGUA [LA JOYA] SPECIAL UTILITY DISTRICT
�	�������SECTION�9.02.��Section 7201.001, Special District Local Laws
�	Code, is amended by amending Subdivision (3) and adding Subdivision
�	(4) to read as follows:
�	�������������(3)��"Director" means a member of the board.
�	�������������(4)��"District" means the Agua [La Joya] Special
�	Utility District.
�	�������SECTION�9.03.��Subsection (c), Section 7201.002, Special
�	District Local Laws Code, is amended to read as follows:
�	�������(c)��The [On the effective date of the Act enacting this
�	chapter, the] corporation shall be dissolved and succeeded without
�	interruption by the district as provided by Subchapter A1.
�	�������SECTION�9.04.��Section 7201.005, Special District Local Laws
�	Code, is amended by amending Subsections (a) and (b) and adding
�	Subsection (d) to read as follows:
�	�������(a)��The [boundaries of the corporation and initial
�	boundaries of the] district is composed of the territory described
�	by Section 9.12 of the Act enacted by the 80th Legislature, Regular
�	Session, 2007, amending this subsection [are coextensive with the
�	service areas covered by Certificates of Convenience and Necessity
�	Nos. 10559 and 20785, as recorded on the Texas Commission on
�	Environmental Quality maps associated with those certificates.
�	Those maps are incorporated in this section by reference].
�	�������(b)��The boundaries and field notes contained in Section 9.12
�	of the Act enacted by the 80th Legislature, Regular Session, 2007,
�	amending this subsection form a closure.�A mistake made in the
�	field notes or in copying the field notes in the legislative process
�	[preparation, copying, or filing of the maps described by
�	Subsection (a) and on file with the Texas Commission on
�	Environmental Quality] does not affect:
�	�������������(1)��the organization, existence, or validity of the
�	district;
�	�������������(2)��the right of the district to issue bonds; or
�	�������������(3)��the legality or operation of the district.
�	�������(d)��The territory of the district does not include and the
�	district does not have jurisdiction over land that has never been in
�	the service area of the corporation regardless of any erroneous
�	inclusion of that land in the boundaries and field notes in Section
�	9.12 of the Act enacted by the 80th Legislature, Regular Session,
�	2007, amending this section.
�	�������SECTION�9.05.��Section 7201.021, Special District Local Laws
�	Code, is amended by amending Subsections (a), (b), and (d) and
�	adding Subsection (f) to read as follows:
�	�������(a)��Except as provided by this subsection, after the
�	appointment of initial directors under Section 7201.051, the
�	receiver for the corporation [On the effective date of the Act
�	enacting this chapter, the corporation] shall transfer the assets,
�	debts, and contractual rights and obligations of the corporation,
�	including all legal claims against the corporation in effect on the
�	date of the transfer, to the district and provide notices and make
�	recordings of the transfer required by the Water Code and general
�	law. If the transfer of any debt requires the permission of the
�	lender, the receiver shall initiate proceedings to obtain that
�	permission.
�	�������(b)��In accordance with the orders of the receivership court
�	and not [Not] later than the 30th day after the date of the transfer
�	under Subsection (a), the receiver for [board of directors of] the
�	corporation shall commence dissolution proceedings of the
�	corporation.
�	�������(d)��The receiver for [board of directors of] the corporation
�	shall notify the Texas Commission on Environmental Quality of the
�	dissolution of the corporation and its succession in interest by
�	[the creation of] the district in order [to replace it] to effect
�	the transfer of Certificates of Convenience and Necessity Nos.
�	10559 and 20785 to the district.
�	�������(f)��After the Texas Commission on Environmental Quality
�	takes the action required by Subsection (e), the court shall
�	terminate the receivership.
�	�������SECTION�9.06.��Section 7201.022, Special District Local Laws
�	Code, is amended to read as follows:
�	�������Sec.�7201.022.��EXPIRATION OF SUBCHAPTER. This subchapter
�	expires September 1, 2012 [2008].
�	�������SECTION�9.07.��Section 7201.051, Special District Local Laws
�	Code, is amended to read as follows:
�	�������Sec.�7201.051.��APPOINTMENT OF INITIAL [TEMPORARY]
�	DIRECTORS. �(a)��As soon as practicable after the effective date of
�	the Act enacted by the 80th Legislature, Regular Session, 2007,
�	amending this section, seven initial directors shall be appointed
�	as provided by this section [The directors of the corporation who
�	hold office on the effective date of the Act enacting this chapter
�	shall serve as the temporary directors of the district until
�	successor directors are elected and qualify for office].
�	�������(b)��To be eligible to be appointed as an initial director,
�	an individual must meet the same requirements as a candidate for an
�	elected position as director under Section 7201.052. The initial
�	directors shall be appointed as follows:
�	�������������(1)��one director to represent the residents of the
�	district in the City of Mission appointed by the governing body of
�	that city;
�	�������������(2)��one director to represent the residents of the
�	district in the City of Palmview appointed by the governing body of
�	that city;
�	�������������(3)��one director to represent the residents of the
�	district in the City of Penitas appointed by the governing body of
�	that city;
�	�������������(4)��one director to represent the residents of the
�	district in the City of Sullivan City appointed by the governing
�	body of that city; and
�	�������������(5)��three directors to represent the residents of the
�	district outside the municipalities listed in Subdivisions (1)-(4)
�	appointed by the Hidalgo County Commissioners Court [The temporary
�	directors of the district are assigned position numbers as follows:
�	�������������[(1)��Position 1, Jose Luis Trigo;
�	�������������[(2)��Position 2, Jose Guadalupe Reyna;
�	�������������[(3)��Position 3, George Barreiro;
�	�������������[(4)��Position 4, Frolian Ramirez;
�	�������������[(5)��Position 5, Russell Wicker;
�	�������������[(6)��Position 6, Benito Salinas;
�	�������������[(7)��Position 7, Manuel Ricardo Garcia;
�	�������������[(8)��Position 8, Valente Alaniz, Jr.; and
�	�������������[(9)��Position 9, Juan Lino Garza].
�	�������(c)��An initial director serves a term that expires on June 1
�	of the year in which the director's successor is elected under
�	Section 7201.052 [If there is a vacancy on the temporary board of
�	directors of the district, the temporary board shall appoint a
�	person to fill the vacancy for the remainder of the term for the
�	vacated position until the applicable election under Section
�	7201.052].
�	�������SECTION�9.08.��Subchapter B, Chapter 7201, Special District
�	Local Laws Code, is amended by adding Sections 7201.0512 and
�	7201.0513 to read as follows:
�	�������Sec.�7201.0512.��INITIAL BOARD TRAINING. (a)��Not later
�	than the 60th day after the first date on which all of the initial
�	directors have been appointed, each initial director shall complete
�	at least 12 hours of training on district management and compliance
�	with laws applicable to the district as determined by the receiver
�	for the corporation.
�	�������(b)��The district shall reimburse an initial director for the
�	reasonable expenses incurred by the director in attending the
�	training.
�	�������Sec.�7201.0513.��EDUCATION PROGRAM. (a)��Before the first
�	election of directors under Section 7201.052, the initial board
�	shall establish a program of education for directors that includes
�	information on:
�	�������������(1)��the history of the district;
�	�������������(2)��the district's enabling legislation;
�	�������������(3)��Chapters 49 and 65, Water Code, and other laws that
�	apply to the district, including the requirements of the:
�	�������������������(A)��open meetings law, Chapter 551, Government
�	Code; and
�	�������������������(B)��public information law, Chapter 552,
�	Government Code;
�	�������������(4)��relevant legal developments related to water
�	district governance;
�	�������������(5)��the duties and responsibilities of the board;
�	�������������(6)��the requirements of conflict of interest laws and
�	other laws relating to public officials; and
�	�������������(7)��any applicable ethics policies adopted by the
�	Texas Commission on Environmental Quality or the Texas Ethics
�	Commission.
�	�������(b)��The district shall pay any costs associated with the
�	development of the education program from district revenue.
�	�������(c)��The education program may include training provided by
�	an organization offering courses that have been approved by the
�	Texas Commission on Environmental Quality.
�	�������(d)��The board may adopt bylaws modifying the education
�	program as necessary to meet district needs.
�	�������SECTION�9.09.��Section 7201.052, Special District Local Laws
�	Code, is amended to read as follows:
�	�������Sec.�7201.052.��BOARD OF DIRECTORS. (a)��Except as provided
�	by Subsection (l), the [The] district shall be governed by a board
�	of seven [not fewer than nine and not more than 11] directors,
�	elected as follows:
�	�������������(1)��one director elected by the voters of the part of
�	the City of Mission inside the district to represent that part of
�	the city;
�	�������������(2)��one director elected by the voters of the City of
�	Palmview to represent that city;
�	�������������(3)��one director elected by the voters of the City of
�	Penitas to represent that city;
�	�������������(4)��one director elected by the voters of the City of
�	Sullivan City to represent that city; and
�	�������������(5)��three directors elected at-large to numbered
�	positions on the board by the district voters who do not reside in
�	any of the municipalities listed in Subdivisions (1)-(4) to
�	represent the part of the district that is not included in those
�	municipalities, unless the number of at-large directors is
�	increased under Subsection (l) [in accordance with Section 49.103,
�	Water Code, notwithstanding Subsection (f)(2) of that section].
�	�������(b)��A [Except for a temporary director under Section
�	7201.051, a] candidate for one of the numbered [a position as]
�	director positions:
�	�������������(1)��[is elected at large to represent the entire
�	service area of the district;
�	�������������[(2)]��must reside in the part of the service area of
�	the district that is not included in any of the municipalities
�	listed in Subsections (a)(1)-(4); and
�	�������������(2)�[(3)]��must be eligible to hold office under
�	Section 141.001, Election Code.
�	�������(c)��A candidate for one of the director positions
�	representing a municipality listed in Subsection (a)(1), (2), (3),
�	or (4):
�	�������������(1)��must reside in the municipality the candidate
�	seeks to represent; and
�	�������������(2)��must be eligible to hold office under Section
�	141.001, Election Code.
�	�������(d)��It is the policy of the district that the directors
�	shall represent and reside in as broad a cross-section of the
�	geographic area of the district as possible.
�	�������(e)�[(d)]��The district shall fill a vacancy on the board in
�	accordance with Section 49.105, Water Code.
�	�������(f)�[(e)]��Except for the initial [temporary] directors
�	appointed [listed] under Section 7201.051 or elected at the first
�	election under Subsection (g), directors serve staggered terms of
�	four [three] years.
�	�������(g)�[(f)]��On the uniform election date in May 2008, or in
�	May 2010, if the election is postponed under Subsection (h), the
�	district shall hold an election to elect seven directors. On the
�	[2006, and on that] uniform election date in May of each
�	even-numbered [every third] year after that date, the district
�	shall hold an election to elect the appropriate number of [three]
�	directors [to serve in positions 1, 4, and 7].
�	�������(h)��The initial board by order may postpone until the
�	uniform election date in May 2010 the first election for directors
�	under Subsection (g) if the initial board determines that there is
�	not sufficient time to comply with the requirements of law and to
�	order the election of directors to be held on the first uniform
�	election date specified by that subsection.
�	�������(i)��The directors elected at the first election under
�	Subsection (g) shall cast lots to determine which three directors
�	shall serve terms expiring June 1 of the first even-numbered year
�	after the year in which the directors are elected and which four
�	directors shall serve terms expiring June 1 of the second
�	even-numbered year after the year in which the directors are
�	elected.
�	�������(j)��A director may not serve consecutive terms.
�	�������(k)��A person who has served as a member of the board of
�	directors of the corporation is not eligible to serve as a district
�	director.
�	�������(l)��If, before the expiration of the term of a director
�	elected to represent a municipality under Subsection (a)(1), (2),
�	(3), or (4), the district determines that all of the incorporated
�	territory of the municipality is outside the boundaries of the
�	district, the position immediately becomes an at-large numbered
�	position to be filled at the next general election of the district
�	in accordance with Subsections (a)(5) and (b) [(g) � � On the uniform
�	election date in May 2007, and on that uniform election date every
�	third year after that date, the district shall hold an election to
�	elect three directors to serve in positions 2, 3, and 5.
�	�������[(h) � � On the uniform election date in May 2008, and on that
�	uniform election date every third year after that date, the
�	district shall hold an election to elect three directors to serve in
�	positions 6, 8, and 9].
�	�������SECTION�9.10.��Subchapter B, Chapter 7201, Special District
�	Local Laws Code, is amended by adding Sections 7201.053 and
�	7201.054 to read as follows:
�	�������Sec.�7201.053.��DISTRICT TREASURER. (a)��The board shall
�	elect from among its members one director to serve as district
�	treasurer.
�	�������(b)��The district treasurer shall comply with the training
�	requirements provided by Section 49.1571, Water Code, for an
�	investment officer of a district.
�	�������Sec.�7201.054.��EDUCATION FOR DIRECTORS. (a)��Except for an
�	initial director whose term expires in 2008, each director shall
�	complete the education program established under Section 7201.0513
�	before the first anniversary of the date on which the director was
�	appointed or elected.
�	�������(b)��The district shall reimburse a director for the
�	reasonable expenses incurred by the director in attending the
�	education program.
�	�������(c)��A director who is elected to serve a subsequent term
�	shall fulfill the education requirements specified by district
�	bylaws.
�	�������SECTION�9.11.��Section 7201.206, Special District Local Laws
�	Code, is amended to read as follows:
�	�������Sec.�7201.206.��RATES AND FEES FOR SERVICES. (a)��The
�	district, in connection with water or sewer retail public utility
�	services, shall establish lifeline, senior citizen, or minimum
�	consumption level rates for services. The rate impact of such
�	services shall be allocated on the basis of costs of services to
�	achieve conservation principles, while securing necessary reserves
�	for the payment of operating expenses, sinking funds, principal,
�	interest, and debt coverage factors, and any other objective
�	established by the district's annual budget.
�	�������(b)��Chapter 395, Local Government Code, does not apply to
�	any fee, charge, or assessment that, before the corporation's
�	dissolution and conversion to a district, is adopted by the
�	receiver for the purpose of generating revenue to fund or recoup the
�	costs of capital improvements or facility expansions necessitated
�	by and attributable to new developments.
�	�������(c)��Notwithstanding Subsection (b), beginning on December
�	31, 2009, the district may not impose any fee, charge, or assessment
�	that, before the corporation's dissolution and conversion to a
�	district, is adopted by the receiver for the purpose of generating
�	revenue to fund or recoup the costs of capital improvements or
�	facility expansions necessitated by and attributable to new
�	developments unless the district readopts the fee, charge, or
�	assessment or adopts a new fee, charge, or assessment in accordance
�	with Chapter 395, Local Government Code. This subsection does not
�	apply to a retail water or sewer rate adopted by the receiver or the
�	district.
�	�������SECTION�9.12.��(a)��Except�for the areas excluded under
�	Subsection (b) of this section, the boundaries of the Agua Special
�	Utility District are as follows:
�	�������Beginning at a point in the centerline of FM 495 (Mile 1 Road)
�	a distance of approximately .18 miles west of the intersection of FM
�	495 and Inspiration Road.
�	�������Thence due north approximately 1.0 miles to a point
�	approximately 166 feet south of the centerline of Mile 2 Road and
�	approximately .18 miles west of the intersection of Mile 2 Road and
�	Inspiration Road
�	�������Thence follow west along a straight westerly line
�	approximately 180 feet south of Mile 2 Road approximately .51 miles
�	to a point in the centerline of Schubach Road.
�	�������Following westerly in a straight line approximately .78 miles
�	to the centerline of Bentsen Palm Drive.
�	�������From the point at the centerline of Bentsen Palm Road
�	continue westerly approximately .78 miles to a point at 26 15 00
�	latitude and -98 22 10 longitude.
�	�������Turn right and due north and follow approximately 7.0 miles
�	in a northerly direction .10 miles west and parallel to Bentsen Palm
�	Drive to a point at 226 21 04 latitude and -98 21 06 longitude.
�	�������Turn left and follow westerly along a straight line a
�	distance of approximately 1.66 miles to the intersection of Abram
�	Road and 9 Mile Road.
�	�������Follow along the centerline of 9 Mile Road westerly
�	approximately 1.65 miles to its intersection with Iowa Avenue. �
�	(Latitude: 26 21 31, Longitude: -98 24 16)
�	�������Continue westerly along a straight line from latitude 26 21
�	31, longitude -98 24 16 approximately 3.79 miles to the center line
�	of FM 2221 ( Jara Chinas Road)
�	�������Thence due south along FM 2221 ( Jara Chinas Road)
�	approximate distance of 8.02 Miles to a point approximately .75
�	miles north of the Intersection of Expressway 83 and FM 2221( Jara
�	Chinas Road)
�	�������Thence at a distance of approximately .75 miles north of the
�	centerline of Expressway 83 due west to northwest approximately 4
�	miles following along the same contour as Expressway 83 to the
�	centerline of El Faro Road from a point .62 miles east of the
�	intersection of El Faro Road and Expressway 83.
�	�������Turn right and follow due north down the centerline of El Faro
�	Road until its end and continue northerly for a total of
�	approximately 2.79 miles to a point at latitude 26 19 13 and
�	longitude -98 32 40.
�	�������Turn left and follow northwesterly in a straight line along
�	the east side of 16 Mile Road (Starr County) approximately 1.87
�	miles to a point located at 26 19 30 latitude and -98 34 27
�	longitude.
�	�������Turn right and follow northeasterly in a straight line
�	approximately 1.02 miles to a point located at 26 20 22 latitude and
�	-98 34 17 longitude.
�	�������Turn right and follow southeasterly in a straight line
�	approximately 1.26 miles to a point located at 26 20 22 latitude and
�	-98 33 05 longitude.
�	�������Turn right and follow northeasterly in a straight line along
�	the west side of County Line Road (Starr County) approximately .61
�	miles to a point located at 26 20 43 latitude and -98 32 60
�	longitude.
�	�������Turn left and follow northwesterly in a straight line
�	approximately 1.26 miles to a point located at 26 20 53 latitude and
�	-98 34 12 longitude.
�	�������Turn right and follow northeasterly in a straight line along
�	the east side of 16 Mile Road (Starr County) approximately 1.32
�	miles to a point located at 26 22 02 latitude and -98 33 59
�	longitude.
�	�������Turn left and follow northwesterly in a straight line
�	approximately .55 miles to a point located at 26 22 07 latitude and
�	-98 34 30 longitude.
�	�������Turn left and follow southwesterly in a straight line
�	approximately 6.17 miles to a point located at 26 16 48 latitude and
�	-98 35 29 longitude.
�	�������Turn left and follow southeasterly in a straight line
�	approximately .91 miles to a point located at 26 16 30 latitude and
�	-98 34 40 longitude, near the Hidalgo-Starr County line.
�	�������Turn right and follow southwesterly along the Hidalgo-Starr
�	County line approximately 1.28 miles to its intersection with the
�	Rio Grande River (U.S. side).
�	�������Thence due south approximately 7.77 miles to the northern
�	winding banks (U.S. side) of the Rio Grande River
�	�������Thence east along the northern winding banks ( US side ) of
�	the Rio Grande River approximately 22 miles to a point
�	approximately 1.16 miles south of Greene Road
�	�������Thence from that center line on Bentsen Park Road
�	approximately .82 miles east northeast to the centerline of
�	Breyfogle/Shuerbach Road
�	�������Turn left and follow westerly in a straight line
�	approximately .56 miles to a point located 26 11 20 latitude and -98
�	22 30 longitude.
�	�������Turn left and follow southerly in a straight line
�	approximately .50 miles to the centerline of Miltary Road.
�	�������Turn right and follow northerly and then northwesterly along
�	the north side of Military Road approximately .36 miles to its
�	intersection with Farm-to-Market Road 2062.
�	�������Turn left and follow southerly along Farm-to-Market Road 2062
�	approximately .16 miles to a point located at 26 11 02 latitude and
�	-98 22 46 longitude.
�	�������Turn right and follow northerly, westerly, southerly,
�	southwesterly, northerly, westerly and then southwesterly for
�	approximately 1.27 miles to a point located at 26 11 11 latitude and
�	-98 23 38 longitude running just north of Park Road 43.
�	�������Turn right and follow northeasterly along a straight line for
�	approximately .71 miles to the north side of Military Road.
�	�������Turn left and follow along westerly approximately .44 miles
�	along the north side of Military Road to its intersection with
�	Goodwin Road.
�	�������Turn right and follow northerly along the centerline of
�	Goodwin Road approximately .33 miles to a point located at 26 12 07
�	latitude and -98 23 53 longitude.
�	�������Turn right and follow easterly, northerly, easterly and then
�	southeasterly approximately .78 miles to the intersection with
�	Green Road.
�	�������Turn left and follow northerly along the centerline of Green
�	Road approximately .32 miles.
�	�������Turn right and follow easterly and then southwesterly
�	approximately 1.16 miles to the north side of Military Road at
�	points 26 11 42 latitude and -98 23 16 longitude.
�	�������Turn left and follow southeasterly along the north side of
�	Military Road approximately 0.07 miles to a point located at 26 11
�	40 latitude and -98 23 13 longitude.
�	�������Turn left and follow northeasterly, northerly,
�	northeasterly, northerly, northeasterly, easterly, southerly and
�	then easterly approximately 2.04 miles to the centerline of
�	Shuebach Road/Airfield Road
�	�������Turn left and follow northeasterly along the centerline of
�	Airfield Road approximately 1.48 miles to its intersection with
�	U.S. Highway 83 Business.
�	�������Turn right and follow easterly along the centerline of U.S.
�	Highway 83 Business approximately .27 miles to its intersection
�	with Moorefield Road.
�	�������Turn left and follow northerly along the centerline of
�	Moorefield Road approximately .32 miles to a point located at 26 13
�	23 latitude and -98 21 21 longitude.
�	�������Make a slight right and follow northeasterly and then
�	northerly along the west banks of the Edinburg Main Canal
�	approximately .66 miles to that point on the centerline of FM 495
�	the beginning (Mile 1 Road) a distance of approximately .18 miles
�	west of the intersection of FM 495 and Inspiration Road to Close.
�	�������(b)��The territory of the Agua Special Utility District does
�	not include the area within the city limits of La Joya, Texas, as it
�	existed on January 1, 1991; the area within the Certificate of
�	Convenience and Necessity of Hidalgo County Municipal Utility
�	District No. 1 as reflected on the records of the Texas Commission
�	on Environmental Quality as of January 1, 2007; and the area within
�	the following boundary lines, which lie wholly within the district:
�	�������Beginning at a point located at 26 14 57 Latitude and -98 25
�	55 Longitude follow in a northwesterly direction along an unnamed
�	creek approximately .23 Miles to a point located at 26 15 03
�	Latitude and -98 26 05 Longitude.
�	�������From the point located at 26 15 03 Latitude and -98 26 05
�	Longitude follow in a westerly direction along an unnamed creek
�	approximately .24 Miles to a point located at 26 15 04 Latitude and
�	-98 26 19 Longitude.
�	�������From the point located at 26 15 04 Latitude and -98 26 19
�	Longitude turn right and follow in a straight line northeasterly
�	approximately .97 Miles to a point located at 26 15 54 Latitude and
�	-98 26 09 Longitude.
�	�������From the point located at 26 15 54 Latitude and -98 26 09
�	Longitude turn right and follow in a straight line
�	easterly-southeasterly approximately .43 Miles to a point located
�	at 26 15 50 Latitude and -98 25 45 Longitude.
�	�������From a point located at 26 15 50 Latitude and -98 25 45
�	Longitude turn right and follow in a straight line southwesterly
�	approximately 1.03 Miles to a point located at 26 14 57 Latitude and
�	-98 25 55 Longitude and Place of Beginning.
�	�������SECTION�9.13.��Initial directors of the board of the Agua
�	Special Utility District shall be appointed in accordance with
�	Section 7201.051, Special District Local Laws Code, as amended by
�	this Act, as soon as practicable after the effective date of this
�	Act.
�	�������SECTION�9.14.��Except as otherwise provided by Chapter 7201,
�	Special District Local Laws Code, as amended by this Act, the Agua
�	Special Utility District is subject to:
�	�������������(1)��any judicial or administrative order imposing an
�	injunction against the La Joya Water Supply Corporation that is in
�	effect on the date of the transfer under Section 7201.021, Special
�	District Local Laws Code, as amended by this Act; or
�	�������������(2)��any judicial or administrative order imposing
�	liability for monetary damages or a civil or administrative penalty
�	against the La Joya Water Supply Corporation that:
�	�������������������(A)��results from a legal proceeding that is
�	pending on the date of the transfer under Section 7201.021, Special
�	District Local Laws Code, as amended by this Act; or
�	�������������������(B)��is unsatisfied on the date of the transfer
�	under Section 7201.021, Special District Local Laws Code, as
�	amended by this Act.
�	�������SECTION�9.15.��(a)��The legal notice of the intention to
�	introduce the article of this Act that amends Chapter 7201, Special
�	District Local Laws Code, setting forth the general substance of
�	the article, has been published as provided by law, and the notice
�	and a copy of the article have been furnished to all persons,
�	agencies, officials, or entities to which they are required to be
�	furnished under Section 59, Article XVI, Texas Constitution, and
�	Chapter 313, Government Code.
�	�������(b)��The governor has submitted the notice and article to the
�	Texas Commission on Environmental Quality.
�	�������(c)��The Texas Commission on Environmental Quality has filed
�	its recommendations relating to this article with the governor,
�	lieutenant governor, and speaker of the house of representatives
�	within the required time.
�	�������(d)��All requirements of the constitution and laws of this
�	state and the rules and procedures of the legislature with respect
�	to the notice, introduction, and passage of this article are
�	fulfilled and accomplished.
�	�������SECTION�9.16.��This article takes effect immediately if this
�	Act receives a vote of two-thirds of all the members elected to each
�	house, as provided by Section 39, Article III, Texas Constitution.
�	If this Act does not receive the vote necessary for immediate
�	effect, this article takes effect September 1, 2007.
�	ARTICLE 10. �TRUE RANCH MUNICIPAL UTILITY DISTRICT NO. 1
�	�������SECTION�10.01.��Subtitle F, Title 6, Special District Local
�	Laws Code, is amended by adding Chapter 8269 to read as follows:
�	CHAPTER 8269. TRUE RANCH MUNICIPAL UTILITY DISTRICT NO. 1
�	SUBCHAPTER A. GENERAL PROVISIONS
�	�������Sec.�8269.001.��DEFINITIONS. In this chapter:
�	�������������(1)��"Board" means the board of directors of the
�	district.
�	�������������(2)��"Director" means a board member.
�	�������������(3)��"District" means the True Ranch Municipal Utility
�	District No. 1.
�	�������Sec.�8269.002.��NATURE OF DISTRICT. The district is a
�	municipal utility district in Hays County created under and
�	essential to accomplish the purposes of Section 59, Article XVI,
�	Texas Constitution.
�	�������Sec.�8269.003.��CONFIRMATION ELECTION REQUIRED. If the
�	creation of the district is not confirmed at a confirmation
�	election held under Section 8269.023 before September 1, 2012:
�	�������������(1)��the district is dissolved September 1, 2012,
�	except that:
�	�������������������(A)��any debts incurred shall be paid;
�	�������������������(B)��any assets that remain after the payment of
�	debts shall be transferred to Hays County; and
�	�������������������(C)��the organization of the district shall be
�	maintained until all debts are paid and remaining assets are
�	transferred; and
�	�������������(2)��this chapter expires September 1, 2015.
�	�������Sec.�8269.004.��FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
�	(a)��All land and other property in the district will benefit from
�	the works and projects to be accomplished by the district under
�	powers conferred by Section 59, Article XVI, Texas Constitution.
�	�������(b)��The district is created to serve a public use and
�	benefit.
�	�������Sec.�8269.005.��INITIAL DISTRICT TERRITORY. (a)��The
�	district is initially composed of the territory described by
�	Section 10.02 of the Act creating this chapter.
�	�������(b)��The boundaries and field notes contained in Section
�	10.02 of the Act creating this chapter form a closure. A mistake
�	made in the field notes or in copying the field notes in the
�	legislative process does not affect:
�	�������������(1)��the organization, existence, or validity of the
�	district;
�	�������������(2)��the right of the district to impose taxes;
�	�������������(3)��the right of the district to issue bonds, notes, or
�	other indebtedness or to pay the principal of and interest on a
�	bond;
�	�������������(4)��the validity of the district's bonds, notes, or
�	other indebtedness; or
�	�������������(5)��the legality or operation of the district or the
�	board.
�	[Sections 8269.006-8269.020 reserved for expansion]
�	SUBCHAPTER A-1. TEMPORARY PROVISIONS
�	�������Sec.�8269.021.��TEMPORARY DIRECTORS. (a)��On or after
�	September 1, 2007, a person who owns land in the district may submit
�	a petition to the Texas Commission on Environmental Quality
�	requesting that the commission appoint as temporary directors the
�	five persons named in the petition.
�	�������(b)��The commission shall appoint as temporary directors the
�	five persons named in the first petition received by the commission
�	under Subsection (a).
�	�������(c)��If a temporary director fails to qualify for office or
�	if a vacancy occurs in the office of temporary director, the vacancy
�	shall be filled as provided by Section 49.105, Water Code.
�	�������(d)��Temporary directors serve until the earlier of:
�	�������������(1)��the date directors are elected under Section
�	8269.023; or
�	�������������(2)��the date this chapter expires under Section
�	8269.003.
�	�������Sec.�8269.022.��ORGANIZATIONAL MEETING OF TEMPORARY
�	DIRECTORS. As soon as practicable after all the temporary
�	directors have qualified under Section 49.055, Water Code, the
�	directors shall meet at a location in the district agreeable to a
�	majority of the directors. If a location cannot be agreed upon, the
�	meeting shall be at the Hays County Courthouse. At the meeting, the
�	temporary directors shall elect officers from among the temporary
�	directors and conduct any other district business.
�	�������Sec.�8269.023.��CONFIRMATION AND INITIAL DIRECTORS'
�	ELECTION. (a)��The temporary directors shall hold an election to
�	confirm the creation of the district and to elect five directors as
�	provided by Section 49.102, Water Code.
�	�������(b)��Section 41.001(a), Election Code, does not apply to a
�	confirmation and initial directors' election held under this
�	section.
�	�������Sec.�8269.024.��INITIAL ELECTED DIRECTORS; TERMS. The
�	directors elected under Section 8269.023 shall draw lots to
�	determine which two serve until the first regularly scheduled
�	election of directors under Section 8269.052 and which three shall
�	serve until the second regularly scheduled election of directors.
�	�������Sec.�8269.025.��DATE OF FIRST REGULARLY SCHEDULED ELECTION
�	OF DIRECTORS. The board by order may postpone the first election
�	under Section 8269.052 following the confirmation and initial
�	directors' election held under Section 8269.023 if:
�	�������������(1)��the election would otherwise occur not later than
�	the 60th day after the date on which the confirmation election is
�	held; or
�	�������������(2)��the board determines that there is not sufficient
�	time to comply with the requirements of law and to order the
�	election.
�	�������Sec.�8269.026.��EXPIRATION OF SUBCHAPTER. This subchapter
�	expires September 1, 2015.
�	[Sections 8269.027-8269.050 reserved for expansion]
�	SUBCHAPTER B. BOARD OF DIRECTORS
�	�������Sec.�8269.051.��DIRECTORS; TERMS. (a)��The district is
�	governed by a board of five directors.
�	�������(b)��Directors serve staggered four-year terms.
�	�������Sec.�8269.052.��ELECTION OF DIRECTORS. On the uniform
�	election date in May of each even-numbered year, the appropriate
�	number of directors shall be elected.
�	[Sections 8269.053-8269.100 reserved for expansion]
�	SUBCHAPTER C. POWERS AND DUTIES
�	�������Sec.�8269.101.��GENERAL POWERS AND DUTIES. The district has
�	the powers and duties necessary to accomplish the purposes for
�	which the district is created.
�	�������Sec.�8269.102.��MUNICIPAL UTILITY DISTRICT POWERS AND
�	DUTIES. The district has the powers and duties provided by the
�	general law of this state, including Chapters 49 and 54, Water Code,
�	applicable to municipal utility districts created under Section 59,
�	Article XVI, Texas Constitution.
�	�������Sec.�8269.103.��ROAD PROJECTS. (a)��To the extent
�	authorized by Section 52, Article III, Texas Constitution, the
�	district may construct, acquire, improve, maintain, or operate
�	arterials or main feeder roads or improvements in aid of those
�	roads.
�	�������(b)��A road project must meet all applicable construction
�	standards, zoning and subdivision requirements, and regulatory
�	ordinances of the municipality or county in whose jurisdiction the
�	district is located.
�	�������Sec.�8269.104.��COMPLIANCE WITH MUNICIPAL CONSENT
�	ORDINANCES OR RESOLUTIONS. Subject to the limitations of Section
�	54.016, Water Code, the district shall comply with all valid and
�	applicable requirements of any ordinance or resolution adopted by a
�	municipality in the corporate limits or extraterritorial
�	jurisdiction of which the district is located, including an
�	ordinance or resolution adopted before September 1, 2007, that
�	consents to the creation of the district or to the inclusion of
�	lands within the district.
�	[Sections 8269.105-8269.150 reserved for expansion]
�	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
�	�������Sec.�8269.151.��ELECTIONS REGARDING TAXES OR BONDS.
�	(a)��Except as provided by Section 8269.201(b), the district may
�	issue, without an election, bonds and other obligations secured by
�	revenue or contract payments from any source other than ad valorem
�	taxation.
�	�������(b)��The district must hold an election in the manner
�	provided by Chapters 49 and 54, Water Code, to obtain voter approval
�	before the district may impose an operation and maintenance tax or
�	issue bonds payable from ad valorem taxes.
�	�������Sec.�8269.152.��OPERATION AND MAINTENANCE TAX. (a)��If
�	authorized at an election held under Section 8269.151, the district
�	may impose an operation and maintenance tax on taxable property in
�	the district in accordance with Section 49.107, Water Code.
�	�������(b)��The board shall determine the tax rate. The rate may not
�	exceed the rate approved at the election.
�	[Sections 8269.153-8269.200 reserved for expansion]
�	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
�	�������Sec.�8269.201.��AUTHORITY TO ISSUE BONDS AND OTHER
�	OBLIGATIONS. (a)��The district may issue bonds or other
�	obligations payable wholly or partly from ad valorem taxes, impact
�	fees, revenue, grants, or other district money, or any combination
�	of those sources, to pay for any authorized district purpose.
�	�������(b)��The district may not issue bonds to finance projects
�	authorized by Section 8269.103 unless the issuance is approved by a
�	vote of a two-thirds majority of the voters of the district voting
�	at an election called for that purpose.
�	�������(c)��Bonds or other obligations issued or incurred to finance
�	projects authorized by Section 8269.103 may not exceed one-fourth
�	of the assessed value of the real property in the district.
�	�������Sec.�8269.202.��TAXES FOR BONDS. At the time bonds payable
�	wholly or partly from ad valorem taxes are issued:
�	�������������(1)��the board shall impose a continuing direct annual
�	ad valorem tax, without limit as to rate or amount, for each year
�	that all or part of the bonds are outstanding; and
�	�������������(2)��the district annually shall impose an ad valorem
�	tax on all taxable property in the district in an amount sufficient
�	to:
�	�������������������(A)��pay the interest on the bonds as the interest
�	becomes due;
�	�������������������(B)��create a sinking fund for the payment of the
�	principal of the bonds when due or the redemption price at any
�	earlier required redemption date; and
�	�������������������(C)��pay the expenses of imposing the taxes.
�	�������SECTION�10.02.��The True Ranch Municipal Utility District
�	No. 1 includes all the territory contained in the following area:
�	BEING ALL THAT CERTAIN TRACT OR PARCEL OF LAND CONTAINING 465.71
�	ACRES, MORE OR LESS, OF LAND AREA IN THE JOHN INGRAIM SURVEY,
�	ABSTRACT NO. 256, HAYS COUNTY, TEXAS, BEING A PORTION OF THAT TRACT
�	DESCRIBED AS 1279.69 ACRES IN A DEED FROM LESLIE TRUE VESPER ET AL
�	TO LESLIE TRUE VESPER DATED AUGUST 10, 1992 AND RECORDED IN VOLUME
�	948, PAGE 789 OF THE HAYS COUNTY OFFICIAL PUBLIC RECORDS, AND BEING
�	MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
�	�������BEGINNING at a �" iron rod found in the southwest line of R.M.
�	Highway No. 2325 and that tract described as an 80' R.O.W. in a deed
�	from Cecil H. Hale, et al to the State of Texas dated August 29, 1956
�	and recorded in Volume 169, Page 304 of the Hays County Deed Records
�	for the most northerly northwest corner of the panhandle portion of
�	this description and the Vesper 1279.69 acre tract and east corner
�	of that tract described as 592.30 acres in a deed from Leslie True
�	Vesper et al to Ameritrust Texas, N.A., Trustee dated August 10,
�	1992 and recorded in Volume 949, Page 572 of the Hays County
�	Official Public Records, from which a TXDOT concrete monument found
�	bears N 69�45'42" W 162.75 feet;
�	�������THENCE leaving the Ameritrust Texas 592.30 acre tract and the
�	PLACE OF BEGINNING as shown on that plat numbered 24587-06-3-d
�	dated May 30, 2006 prepared for Leslie Vesper by Byrn & Associates,
�	Inc., of San Marcos, Texas with the common northeast line of the
�	Vesper 1279.69 acre tract and southwest line of R.M. Highway No.
�	2325 and the State of Texas 80' R.O.W. tract S 69�48'34" E 599.94
�	feet to a �" iron rod set for the northwest corner of that tract
�	described as "Tract 1-1.00 acres" in a deed from Thomas W. Slaughter
�	et ux to Randy C. Brown et ux dated February 12, 1996 and recorded in
�	Volume 1206, Page 780 of the Hays County Official Public Records,
�	from which A TXDOT concrete monument found bears S 69�47'57" E
�	120.11 feet;
�	�������THENCE leaving R.M. Highway No. 2325 and the State of Texas
�	80' R.O.W. tract with the common east line of the Vesper 1279.69
�	acre tract and west and south lines of the Brown 1.00 acre Tract 1
�	the following two courses:
�	�������1. �S 20�06'33" W 226.56 feet to a 2.5" pipe fence corner post
�	found for corner, and
�	�������S 69�41'58" E 234.42 feet to a 2" pipe fence corner post found
�	in the west line of that tract described as "Tract 2-5.347 acres" in
�	the previously mentioned deed to Randy C. Brown et ux for the
�	southeast comer of the Brown 1.00 acre Tract 1;
�	�������THENCE leaving the Brown 1.00 acre Tract 1 and continuing
�	with the common east line of the Vesper 1279.69 acre tract and west
�	line of the Brown 5.347 acre Tract 2, as fenced and used, the
�	following three courses:
�	�������S 00�10'12" E 410.74 feet to a �" iron rod set at the
�	approximate centerline of an underground pipeline for angle point,
�	�������S 00�04'22" E 196.11 feet to a 2.5" pipe fence post found for
�	angle point, and
�	�������S 00�24'09" E 15.83 feet to an iron rod found with an aluminum
�	cap stamped "Pro-Tech Eng" at fence corner for the southwest corner
�	of the Brown 5.347 acre Tract 2 and northwest corner of the
�	remaining portion of that tract described as 187.78 acres in a deed
�	from Henry Polvado & Lillie Polvado to Wesley Springs dated May 6,
�	1983 and recorded in Volume 393, Page 570 of the Hays County Deed
�	Records (the Brown 5.347 acre Tract 2 being a portion of the Springs
�	187.78 acre tract);
�	�������THENCE leaving the Brown 5.347 acre Tract 2 and continuing
�	with the east line of the Vesper 1279.69 acre tract and west line of
�	the Springs 187.78 acre tract, as fenced and used, the following
�	three courses:
�	�������S 00�00'57" E 1012.24 feet to a 2.5" pipe fence post found for
�	angle point,
�	�������S 00�06'57" W 908.05 feet to a 4" pipe fence corner post found
�	for angle point, and
�	�������S 00�03'12" E 354.80 feet to a 4" pipe fence corner post found
�	for the southwest corner of the springs 187.78 acre tract and
�	northwest corner of that tract described as 126.97 acres in a deed
�	from Stanual W. Farris to the Stanual W. Farris Living Trust dated
�	March 10, 2005 and recorded in Volume 2646, Page 385 of the Hays
�	County Official Public Records;
�	�������THENCE leaving the Springs 187.78 acre tract and continuing
�	with the common east line of the Vesper 1279.69 acre tract and west
�	line of Farris Living Trust 126.97 acre tract, as fenced and used,
�	the following three courses:
�	�������S 00�12'25" W 952.36 feet to a 4" pipe fence post found for
�	angle point,
�	�������S 00�09'57"W 1087.12 feet to a 4" cedar post found for angle
�	point, and
�	�������S 00�22'11" W 1072.11 feet to a �" iron rod found at fence
�	corner for the southwest corner of the Farris Living Trust 126.97
�	acre tract and northwest corner of that tract described as 32.03
�	acres in a deed from Phil Harris to Shannon Harris dated April 8,
�	1998 and recorded in Volume 1463, Page 335 of the Hays County
�	Official Public Records;
�	�������THENCE leaving the Farris Living Trust 126.97 acre tract and
�	continuing with the common east line of the Vesper 1279.69 acre
�	tract and west line of the Shannon Harris 32.03 acre tract, as
�	fenced and used, S 00�44'10"W 120.44 feet to a 4" cedar fence corner
�	post found for the southwest corner of the Shannon Harris 32.03 acre
�	tract and northwest corner of that tract described as 28.92 acres in
�	a deed from A.J. Farris et ux to Philip D. Farris dated July 18, 1991
�	and recorded in Volume 882, page 620 of the Hays County Official
�	Public Records;
�	�������THENCE leaving the Shannon Harris 32.03 acre tract and
�	continuing with the common east line of the Vesper 1279.69 acre
�	tract and west line of the Philip D. Farris 28.92 acre tract, as
�	fenced and used, S 00�24'02" W 279.19 feet to a �" iron rod found at
�	fence corner for the southeast corner of this description and
�	northeast corner of that tract described as 52.30 acres in a deed
�	from Leslie True Vesper to Paul R. Eastup et ux dated June 5, 1996
�	and recorded in Volume 1240, Page 309 of the Hays County Official
�	Public Records (the Eastup 52.30 acre tract being a portion of the
�	Vesper 1279.69 acre tract);
�	�������THENCE leaving the Phillip D. Farris 28.92 acre tract and
�	entering the Vesper 1279.69 acre tract with the north line of the
�	Eastup 52.30 acre tract, N 87�10'57" W 1356.38 feet to a �" iron rod
�	found in fence for the northwest corner of the Eastup 52.03 acre
�	tract and northeast corner of that tract described as 209.16 acres
�	in a deed from Leslie True Vesper to James Nicholas Edwards and Lynn
�	S. Edwards dated July 6, 2005 and recorded in Volume 2719, Page 740
�	of the Hays County Official Public Record (the Edwards 209.16 acre
�	tract being a portion of the Vesper 1279.69 acre tract);
�	�������THENCE leaving the Eastup 52.30 acre tract with the north
�	line of the Edwards 209.16 acre tract, as fenced and used, the
�	following five courses:
�	�������N 87�19'31" W 665.61 feet to a 4" pipe fence post found for
�	angle point,
�	�������N 86�58'45" W 535.67 feet to a 3" cedar fence post found for
�	angle point,
�	�������N 87�09'05" W 302.22 feet to a 3" cedar fence post found for
�	angle point,
�	�������N 87�26'23" W 724.92 feet to a 4" cedar fence post found for
�	angle point, and
�	�������N 86�46'01" W 426.90 feet to a �" iron rod found with a plastic
�	cap stamped "Byrn Survey" in the east line of that tract described
�	as 504.13 acres in a deed from Leslie True Vesper to James L. Pierce
�	and David L. Pierce dated February 8, 1999 and recorded in Volume
�	1500, Page 452 of the Hays County Official Public Records (the
�	Pierce 504.13 acre tract being a portion of the Vesper 1279.69 acre
�	tract);
�	�������THENCE leaving the Edwards 209.16 acre tract with the east
�	line of the Pierce 504.13 acre tract the following two courses:
�	�������N 08�19'22" E 124.79 feet to a �" iron rod found with a plastic
�	cap stamped "Byrn Survey" for corner, and
�	�������N 87�41'56" W 751.30 feet to a �" iron rod found with a plastic
�	cap stamped "Byrn Survey" for the southwest corner of this
�	description, an interior corner in the east line of the Pierce
�	504.13 acre tract, and the south corner of that tract described as
�	10.59 acres in a deed from Leslie True Vesper to James L. Pierce and
�	David L. Pierce dated June 15, 2001 and recorded in Volume 1872,
�	Page 802 of the Hays County Official Public Records (the Pierce
�	10.59 acre tract being a portion of the Vesper 1279.69 acre tract);
�	�������THENCE leaving the Pierce 504.13 acre tract with the east
�	line of Pierce 10.59 acre tract the following two courses:
�	�������N 05�37'42" E (being the bearing basis for description) 734.58
�	feet to a �" iron rod found with a plastic cap stamped "Byrn Survey"
�	for angle point, and
�	�������N 16�12'16" E 1026.26 feet to a 16" cedar tree stump found in
�	fence in the east line of the previously mentioned Pierce 504.13
�	acre tract for the north corner of the Pierce 10.59 acre tract;
�	�������THENCE leaving the Pierce 10.59 acre tract and continuing
�	with the east line of the Pierce 504.13 acre tract, as fenced and
�	used, the following eight courses:
�	�������N 20�34'38" E 42.67 feet to a 16" cedar tree stump found for
�	angle point,
�	�������N 15�43'09" E 241.85 feet to a 12" cedar tree stump found for
�	angle point,
�	�������N 08�41'46" E 86.90 feet to a 14" cedar tree stump found for
�	angle point,
�	�������N 07�33'58" E 244.38 feet to a 2.5" pipe fence post found for
�	angle point,
�	�������N 24�14'46" E 623.77 feet to a 6" cedar fence post found for
�	angle point,
�	�������N 24�15'46" E 420.45 feet to a 2.5" pipe fence post found for
�	angle point,
�	�������N 12�52'45" E 194.02 feet to a 2.5" pipe fence post found for
�	angle point, and
�	�������N 01�30'08" E 340.55 feet to a 4" pipe fence corner post found
�	in the south line of the previously mentioned Ameritrust Texas
�	592.30 acre tract and north line of the Vesper 1279.69 acre tract
�	for the northeast corner of the Pierce 504.13 acre tract and
�	exterior west corner of this description;
�	�������THENCE leaving the Pierce 504.13 acre tract with the common
�	north line of the Vesper 1279.69 acre tract, and south line of the
�	Ameritrust Texas 592.30 acre tract, as fenced and used, the
�	following six courses:
�	�������N 73�32'00" E 130.18 feet to a 4" pipe fence post found for
�	angle point,
�	�������S 48�36'36" E 170.02 feet to a �" iron rod found for angle
�	point,
�	�������S 76�17'07" E 88.03 feet to a 4" pipe fence post found for
�	angle point,
�	�������S 86�44'44" E 798.24 feet to a 4" pipe fence post found for
�	angle point,
�	�������S 86�55'19" E 913.16 feet to a 4" pipe fence post found for
�	angle point, and
�	�������S 86�56'50" E 421.51 feet to a �" iron rod found for the
�	southeast corner of the Ameritrust Texas 592.30 acre tract and
�	southwest corner of the panhandle portion of this description and
�	the Vesper 1279.69 acre tract;
�	�������THENCE leaving the fence with the common west line of the
�	panhandle portion of the Vesper 1279.69 acre tract and east line of
�	the Ameritrust Texas 592.30 acre tract the following two courses:
�	�������N 00�00'32" E 1999.62 feet to a �" iron rod found for angle
�	point, and
�	�������N 32�23'54" E 1152.96 feet to the PLACE OF BEGINNING.
�	�������THERE are contained within these metes and bounds 465.71
�	acres, more or less, as prepared from public records and surveys
�	made on the ground in 1999, 2001, 2005 and on May 30, 2006 by Byrn &
�	Associates, Inc., of San Marcos, Texas. All �" iron rods set are
�	capped with a plastic cap stamped "Byrn Survey".
�	�������SECTION�10.03.��(a)��The legal notice of the intention to
�	introduce this article, setting forth the general substance of this
�	article, has been published as provided by law, and the notice and a
�	copy of this article have been furnished to all persons, agencies,
�	officials, or entities to which they are required to be furnished
�	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
�	Government Code.
�	�������(b)��The governor, one of the required recipients, has
�	submitted the notice and article to the Texas Commission on
�	Environmental Quality.
�	�������(c)��The Texas Commission on Environmental Quality has filed
�	its recommendations relating to this article with the governor, the
�	lieutenant governor, and the speaker of the house of
�	representatives within the required time.
�	�������(d)��All requirements of the constitution and laws of this
�	state and the rules and procedures of the legislature with respect
�	to the notice, introduction, and passage of this article are
�	fulfilled and accomplished.
�	�������SECTION�10.04.��This article takes effect immediately if
�	this Act receives a vote of two-thirds of all the members elected to
�	each house, as provided by Section 39, Article III, Texas
�	Constitution. If this Act does not receive the vote necessary for
�	immediate effect, this article takes effect September 1, 2007.
�	ARTICLE 11. TABLEROCK GROUNDWATER CONSERVATION DISTRICT
�	�������SECTION�11.01.��Subtitle H, Title 6, Special District Local
�	Laws Code, is amended by adding Chapter 8823 to read as follows:
�	CHAPTER 8823. TABLEROCK GROUNDWATER CONSERVATION DISTRICT
�	SUBCHAPTER A. GENERAL PROVISIONS
�	�������Sec.�8823.001.��DEFINITIONS. In this chapter:
�	�������������(1)��"Board" means the district's board of directors.
�	�������������(2)��"Director" means a board member.
�	�������������(3)��"District" means the Tablerock Groundwater
�	Conservation District.
�	�������Sec.�8823.002.��NATURE OF DISTRICT. The district is a
�	groundwater conservation district in Coryell County created under
�	and essential to accomplish the purposes of Section 59, Article
�	XVI, Texas Constitution.
�	�������Sec.�8823.003.��CONFIRMATION ELECTION REQUIRED. (a)��If the
�	creation of the district is not confirmed at a confirmation
�	election held before September 1, 2012:
�	�������������(1)��the district is dissolved on September 1, 2012,
�	except that the district shall:
�	�������������������(A)��pay any debts incurred;
�	�������������������(B)��transfer to Coryell County any assets that
�	remain after the payment of debts; and
�	�������������������(C)��maintain the organization of the district
�	until all debts are paid and remaining assets are transferred; and
�	�������������(2)��this chapter expires September 1, 2012.
�	�������(b)��This section expires September 1, 2012.
�	�������Sec.�8823.004.��INITIAL DISTRICT TERRITORY. The initial
�	boundaries of the district are coextensive with the boundaries of
�	Coryell County, Texas.
�	�������Sec.�8823.005.��CONSTRUCTION OF CHAPTER. This chapter shall
�	be liberally construed to achieve the legislative intent and
�	purposes of Chapter 36, Water Code. A power granted by Chapter 36,
�	Water Code, or this chapter shall be broadly interpreted to achieve
�	that intent and those purposes.
�	�������Sec.�8823.006.��APPLICABILITY OF OTHER GROUNDWATER
�	CONSERVATION DISTRICT LAW. Except as otherwise provided by this
�	chapter, Chapter 36, Water Code, applies to the district.
�	[Sections 8823.007-8823.020 reserved for expansion]
�	SUBCHAPTER A-1. TEMPORARY PROVISIONS
�	�������Sec.�8823.021.��APPOINTMENT OF TEMPORARY DIRECTORS.
�	(a)��Not later than the 45th day after the effective date of this
�	chapter, five temporary directors shall be appointed as follows:
�	�������������(1)��the Coryell County Commissioners Court shall
�	appoint one temporary director from each of the four commissioners
�	precincts in the county to represent the precincts in which the
�	temporary directors reside; and
�	�������������(2)��the county judge of Coryell County shall appoint
�	one temporary director who resides in the district to represent the
�	district at large.
�	�������(b)��If there is a vacancy on the temporary board, the
�	authority who appointed the temporary director whose position is
�	vacant shall appoint a person to fill the vacancy.
�	�������(c)��Temporary directors serve until the earlier of:
�	�������������(1)��the time the temporary directors become initial
�	directors as provided by Section 8823.024; or
�	�������������(2)��the date this chapter expires under Section
�	8823.003.
�	�������Sec.�8823.022.��ORGANIZATIONAL MEETING OF TEMPORARY
�	DIRECTORS. As soon as practicable after all the temporary
�	directors have qualified under Section 36.055, Water Code, a
�	majority of the temporary directors shall convene the
�	organizational meeting of the district at a location within the
�	district agreeable to a majority of the directors. If an agreement
�	on location cannot be reached, the organizational meeting shall be
�	at the Coryell County Courthouse.
�	�������Sec.�8823.023.��CONFIRMATION ELECTION. (a)��The temporary
�	directors shall hold an election to confirm the creation of the
�	district.
�	�������(b)��Section 41.001(a), Election Code, does not apply to a
�	confirmation election held as provided by this section.
�	�������(c)��Except as provided by this section, a confirmation
�	election must be conducted as provided by Sections 36.017(b), (c),
�	and (e)-(i), Water Code, and the Election Code. Section 36.017(d),
�	Water Code, does not apply to the confirmation election.
�	�������(d)��The ballot for the election must be printed in
�	accordance with the Election Code and provide for voting for or
�	against the proposition: "The creation of the Tablerock
�	Groundwater Conservation District and the imposition of a
�	maintenance tax at a rate not to exceed two cents on each $100 of
�	assessed valuation of taxable property in the district."
�	�������(e)��If a majority of the votes cast at the election are not
�	in favor of the creation of the district, the temporary directors
�	may hold a subsequent confirmation election. The subsequent
�	election may not be held before the first anniversary of the date on
�	which the previous election was held.
�	�������(f)��The district may not impose a maintenance tax unless a
�	majority of the votes cast at the election are in favor of the
�	imposition of the maintenance tax.
�	�������Sec.�8823.024.��INITIAL DIRECTORS. (a)��If creation of the
�	district is confirmed at an election held under Section 8823.023,
�	the temporary directors become the initial directors and serve for
�	the terms provided by Subsection (b).
�	�������(b)��The initial directors representing commissioners
�	precincts 2 and 4 serve until the election of directors under
�	Section 8823.025, and the initial directors representing
�	commissioners precincts 1 and 3 and the at-large director serve
�	until the next regularly scheduled election of directors under
�	Section 8823.053.
�	�������Sec.�8823.025.��INITIAL ELECTION OF DIRECTORS. On the
�	uniform election date in November of the first even-numbered year
�	after the year in which the creation of the district is confirmed at
�	an election held under Section 8823.023, the district shall hold an
�	election of two directors to replace the initial directors who,
�	under Section 8823.024(b), serve until that election.
�	�������Sec.�8823.026.��EXPIRATION OF SUBCHAPTER. This subchapter
�	expires September 1, 2012.
�	[Sections�8823.027-8823.050 reserved for expansion]
�	SUBCHAPTER B. �BOARD OF DIRECTORS
�	�������Sec.�8823.051.��DIRECTORS; TERMS. (a)��The district is
�	governed by a board of five directors.
�	�������(b)��Directors serve staggered four-year terms.
�	�������Sec.�8823.052.��METHOD OF ELECTING DIRECTORS. One director
�	is elected from each county commissioners precinct in Coryell
�	County and one director is elected at large.
�	�������Sec.�8823.053.��ELECTION DATE. The district shall hold an
�	election in the district to elect directors on the uniform election
�	date in November of each even-numbered year.
�	�������Sec.�8823.054.��QUALIFICATIONS FOR ELECTION. (a)��To be
�	qualified for election as a director, a person must reside in the
�	district.
�	�������(b)��To be qualified for election as a director from a
�	precinct, a person must reside in that precinct.
�	[Sections 8823.055-8823.100 reserved for expansion]
�	SUBCHAPTER C. POWERS AND DUTIES
�	�������Sec.�8823.101.��GROUNDWATER CONSERVATION DISTRICT POWERS
�	AND DUTIES. Except as provided by this chapter, the district has
�	the powers and duties provided by the general law of this state,
�	including Chapter 36, Water Code, and Section 59, Article XVI,
�	Texas Constitution, applicable to groundwater conservation
�	districts.
�	�������Sec.�8823.102.��REGISTRATION AND REPORTING REQUIREMENTS FOR
�	CERTAIN EXEMPT WELLS. The district may adopt rules that require the
�	owner or operator of a well or class of wells exempt from permitting
�	under Section 36.117, Water Code, to register the well with the
�	district and, if the well is not exempt under Section 36.117(b)(1),
�	Water Code, to report groundwater withdrawals from the well using
�	reasonable and appropriate reporting methods and frequency.
�	�������Sec.�8823.103.��WELL SPACING RULES; EXEMPTIONS. (a)��Except
�	as provided by Subsection (b), the district shall exempt from the
�	well spacing requirements adopted by the district any well that is
�	completed on or before the effective date of those requirements.
�	�������(b)��The district may provide by rule that a well may lose its
�	exemption under this section if the well is modified in a manner
�	that substantially increases the capacity of the well after the
�	effective date of the well spacing requirements adopted by the
�	district.
�	�������(c)��Except as provided by this section, the district may
�	require any well or class of wells exempt from permitting under
�	Chapter 36, Water Code, to comply with the well spacing
�	requirements adopted by the district. The district shall apply
�	well spacing requirements uniformly to any well or class of wells
�	based on the size or capacity of the well and without regard to the
�	type of use of the groundwater produced by the well.
�	�������Sec.�8823.104.��ADOPTION OF RULES AND ISSUANCE OF PERMITS.
�	Before the district adopts a management plan, the district may
�	adopt rules and issue permits.
�	�������Sec.�8823.105.��CONTRACTS WITH OTHER GOVERNMENTAL ENTITIES.
�	(a)��The district and another governmental entity, including a
�	river authority located in the district, may contract for the
�	performance by that entity of a district function.
�	�������(b)��The district may accept a loan from Coryell County to
�	pay for any initial costs of the district, including costs related
�	to a confirmation election.
�	�������Sec.�8823.106.��NO EMINENT DOMAIN POWER. The district may
�	not exercise the power of eminent domain.
�	�������Sec.�8823.107.��DISTRICT TERRITORY REQUIREMENTS;
�	DISSOLUTION OF DISTRICT. (a)��On September 1, 2011, the district
�	boundaries must include at least one county adjacent to Coryell
�	County.
�	�������(b)��As soon as practicable after September 1, 2011, the
�	Texas Commission on Environmental Quality shall determine whether
�	the district complies with Subsection (a).
�	�������(c)��If the Texas Commission on Environmental Quality
�	determines that the district does not comply with Subsection (a),
�	the commission shall dissolve the district in accordance with
�	Sections 36.304, 36.305, 36.307, 36.308, 36.309, and 36.310, Water
�	Code, regardless of whether the district meets the criteria for
�	dissolution under Section 36.304(a), Water Code.
�	�������(d)��This section expires September 1, 2013.
�	[Sections 8823.108-8823.150 reserved for expansion]
�	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
�	�������Sec.�8823.151.��REVENUE. To pay the maintenance and
�	operating costs of the district and to pay any bonds or notes issued
�	by the district, the district may:
�	�������������(1)��impose an ad valorem tax at a rate that:
�	�������������������(A)��is approved by a majority of district voters
�	voting at an election held for that purpose; and
�	�������������������(B)��does not exceed two cents on each $100 of
�	assessed valuation of taxable property in the district;
�	�������������(2)��assess fees for services or for water withdrawn
�	from nonexempt wells; or
�	�������������(3)��solicit and accept grants from any private or
�	public source.
�	[Sections 8823.152-8823.200 reserved for expansion]
�	SUBCHAPTER E. DISSOLUTION
�	�������Sec.�8823.201.��ELECTION FOR DISSOLUTION. (a)��If the
�	district has no outstanding bond or other long-term indebtedness,
�	the district may be dissolved by a favorable vote of a majority of
�	the registered voters of the district at an election held for that
�	purpose.
�	�������(b)��The board shall hold a dissolution election if the board
�	receives a petition for dissolution signed by at least 50 percent of
�	the registered voters in the district as computed by using the list
�	of registered voters for Coryell County.
�	�������(c)��If the district is dissolved under this section, the
�	board shall:
�	�������������(1)��notify the Texas Commission on Environmental
�	Quality and the secretary of state of the dissolution; and
�	�������������(2)��transfer title to any assets of the district to
�	Coryell County.
�	�������SECTION�11.02.��(a)��The legal notice of the intention to
�	introduce this article, setting forth the general substance of this
�	article, has been published as provided by law, and the notice and a
�	copy of this article have been furnished to all persons, agencies,
�	officials, or entities to which they are required to be furnished
�	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
�	Government Code.
�	�������(b)��The governor has submitted the notice and article to the
�	Texas Commission on Environmental Quality.
�	�������(c)��The Texas Commission on Environmental Quality has filed
�	its recommendations relating to this article with the governor,
�	lieutenant governor, and speaker of the house of representatives
�	within the required time.
�	�������(d)��All requirements of the constitution and laws of this
�	state and the rules and procedures of the legislature with respect
�	to the notice, introduction, and passage of this article are
�	fulfilled and accomplished.
�	ARTICLE�12.��EDWARDS AQUIFER AUTHORITY
�	�������SECTION�12.01.��Section 1.11, Chapter 626, Acts of the 73rd
�	Legislature, Regular Session, 1993, is amended by amending
�	Subsection (f) and adding Subsections (f-1) and (f-2) to read as
�	follows:
�	�������(f)��The authority may own, finance, design, [contract with a
�	person who uses water from the aquifer for the authority or that
�	person to] construct, operate, or [own, finance, and] maintain
�	recharge [water supply] facilities. [Management fees or special
�	fees may not be used for purchasing or operating these facilities.]
�	For the purpose of this subsection, "recharge [water supply]
�	facility" means [includes] a dam, reservoir, [treatment facility,
�	transmission facility,] or other method of recharge project and
�	associated facilities, structures, or works but does not include a
�	facility to recirculate water at Comal or San Marcos Springs.
�	�������(f-1)��The authority shall provide written notice of the
�	intent to own, finance, design, construct, operate, or maintain
�	recharge facilities to:
�	�������������(1)��each groundwater conservation district in the area
�	in which the recharge facility will be located;
�	�������������(2)��the mayor of each municipality in the area in which
�	the recharge facility will be located;
�	�������������(3)��the county judge of each county in the area in
�	which the recharge facility will be located; and
�	�������������(4)��each member of the legislature who represents the
�	area in which the proposed recharge facility will be located.
�	�������(f-2)��Any entity within the county in which a recharge
�	facility is to be constructed shall be provided opportunity for
�	input and allowed to provide proposals for partnering with the
�	authority to own, finance, design, construct, operate, or maintain
�	the recharge facility.
�	�������SECTION�12.02.��Subsections (a), (c), (e), (f), and (h),
�	Section 1.14, Chapter 626, Acts of the 73rd Legislature, Regular
�	Session, 1993, are amended to read as follows:
�	�������(a)��Authorizations to withdraw water from the aquifer and
�	all authorizations and rights to make a withdrawal under this Act
�	shall be limited in accordance with this section to:
�	�������������(1)��protect the water quality of the aquifer;
�	�������������(2)��protect the water quality of the surface streams
�	to which the aquifer provides springflow;
�	�������������(3)��achieve water conservation;
�	�������������(4)��maximize the beneficial use of water available for
�	withdrawal from the aquifer;
�	�������������(5)��recognize the extent of the hydro-geologic
�	connection and interaction between surface water and groundwater;
�	�������������(6)��protect aquatic and wildlife habitat;
�	�������������(7)�[(6)]��protect species that are designated as
�	threatened or endangered under applicable federal or state law; and
�	�������������(8)�[(7)]��provide for instream uses, bays, and
�	estuaries.
�	�������(c)��Except as provided by Subsections [(d),] (f)[,] and (h)
�	of this section and Section 1.26 of this article, for the period
�	beginning January 1, 2008, the amount of permitted withdrawals from
�	the aquifer may not exceed or be less than 572,000 [400,000]
�	acre-feet of water for each calendar year, which is the sum of all
�	regular permits issued or for which an application was filed and
�	issuance was pending action by the authority as of January 1, 2005.
�	�������(e)��The authority may not allow withdrawals from the aquifer
�	through wells drilled after June 1, 1993, except for replacement,
�	test, or exempt wells or to the extent that the authority approves
�	an amendment to an initial regular permit to authorize a change in
�	the point of withdrawal under that permit [additional water as
�	provided by Subsection (d) and then on an interruptible basis].
�	�������(f)��If the level of the aquifer is equal to or greater than
�	660 [650] feet above mean sea level as measured at Well J-17, the
�	authority may authorize withdrawal from the San Antonio pool, on an
�	uninterruptible basis, of permitted amounts. If the level of the
�	aquifer is equal to or greater than 845 feet at Well J-27, the
�	authority may authorize withdrawal from the Uvalde pool, on an
�	uninterruptible basis, of permitted amounts. [The authority shall
�	limit the additional withdrawals to ensure that springflows are not
�	affected during critical drought conditions.]
�	�������(h)��To accomplish the purposes of this article, [by June 1,
�	1994,] the authority, through a program, shall implement and
�	enforce water management practices, procedures, and methods to
�	ensure that, not later than December 31, 2012, the continuous
�	minimum springflows of the Comal Springs and the San Marcos Springs
�	are maintained to protect endangered and threatened species to the
�	extent required by federal law and to achieve other purposes
�	provided by Subsection (a) of this section and Section 1.26 of this
�	article. The authority from time to time as appropriate may revise
�	the practices, procedures, and methods. To meet this requirement,
�	the authority shall require:
�	�������������(1)��phased adjustments to [reductions in] the amount
�	of water that may be used or withdrawn by existing users or
�	categories of other users, including adjustments in accordance with
�	the authority's critical period management plan established under
�	Section 1.26 of this article; or
�	�������������(2)��implementation of alternative management
�	practices, procedures, and methods.
�	�������SECTION�12.03.��Subsection (g), Section 1.16, Chapter 626,
�	Acts of the 73rd Legislature, Regular Session, 1993, is amended to
�	read as follows:
�	�������(g)��The authority shall issue an initial regular permit
�	without a term, and an initial regular permit remains in effect
�	until the permit is abandoned or[,] cancelled[, or retired].
�	�������SECTION�12.04.��Subsection (b), Section 1.19, Chapter 626,
�	Acts of the 73rd Legislature, Regular Session, 1993, is amended to
�	read as follows:
�	�������(b)��Withdrawal of water under a term permit must be
�	consistent with the authority's critical period management plan
�	established under Section 1.26 of this article. A holder of a term
�	permit may not withdraw water from the San Antonio pool of the
�	aquifer unless:
�	�������������(1)��the level of the aquifer is higher than 675 [665]
�	feet above sea level, as measured at Well J-17;
�	�������������(2)��the flow at Comal Springs as determined by Section
�	1.26(c) of this article is greater than 350 cubic feet per second;
�	and
�	�������������(3)��the flow at San Marcos Springs as determined by
�	Section 1.26(c) of this article is greater than 200 cubic feet per
�	second.
�	�������SECTION�12.05.��Subsection (a), Section 1.22, Chapter 626,
�	Acts of the 73rd Legislature, Regular Session, 1993, is amended to
�	read as follows:
�	�������(a)��The authority may acquire permitted rights to use water
�	from the aquifer for the purposes of:
�	�������������(1)��holding those rights in trust for sale or transfer
�	of the water or the rights to persons within the authority's
�	jurisdiction who may use water from the aquifer;
�	�������������(2)��holding those rights in trust as a means of
�	managing overall demand on the aquifer; or
�	�������������(3)��holding those rights for resale [or retirement as
�	a means of complying with pumping reduction requirements under this
�	article; or
�	�������������[(4) � � retiring those rights, including those rights
�	already permitted].
�	�������SECTION�12.06.��Article 1, Chapter 626, Acts of the 73rd
�	Legislature, Regular Session, 1993, is amended by amending Section
�	1.26 and adding Section 1.26A to read as follows:
�	�������Sec.�1.26.��CRITICAL PERIOD MANAGEMENT PLAN. (a)��After
�	review of the recommendations received in the program document, as
�	prescribed by Section 1.26A of this article, the [The] authority by
�	rule shall adopt [prepare and coordinate implementation of] a [plan
�	for] critical period management plan consistent with Sections
�	1.14(a), (f), and (h) of this article [on or before September 1,
�	1995]. The critical period management plan shall be adopted by the
�	authority no later than six months after the authority's receipt of
�	the program document. On adoption of the critical period
�	management plan, the authority shall provide a written report to
�	the governor, lieutenant governor, and speaker of the house of
�	representatives describing the actions taken in response to each
�	recommendation and, for each recommendation not implemented, the
�	reason it was not implemented. The plan [mechanisms] must:
�	�������������(1)��distinguish between discretionary use and
�	nondiscretionary use;
�	�������������(2)��require reductions of all discretionary use to the
�	maximum extent feasible;
�	�������������(3)��require utility pricing, to the maximum extent
�	feasible, to limit discretionary use by the customers of water
�	utilities; [and]
�	�������������(4)��require reduction of nondiscretionary use by
�	permitted or contractual users, to the extent further reductions
�	are necessary, in the reverse order of the following water use
�	preferences:
�	�������������������(A)��municipal, domestic, and livestock;
�	�������������������(B)��industrial and crop irrigation;
�	�������������������(C)��residential landscape irrigation;
�	�������������������(D)��recreational and pleasure; and
�	�������������������(E)��other uses that are authorized by law; and
�	�������������(5)��allow irrigation use to continue in order to
�	permit the user to complete the irrigation of a crop in progress.
�	�������(b)��In this section, "MSL" means the elevation above mean
�	sea level, measured in feet, of the surface of the water in a well,
�	and "CFS" means cubic feet per second. Not later than January 1,
�	2008, the authority shall, by rule, adopt and enforce a critical
�	period management plan with withdrawal reduction percentages in the
�	amounts indicated in Tables 1 and 2 whether according to the index
�	well levels or the Comal or San Marcos Springs flow as applicable,
�	for a total in critical period Stage IV of 40 percent of the
�	permitted withdrawals under Table 1 and 35 percent under Table 2:
�	TABLE 1
�	CRITICAL PERIOD WITHDRAWAL REDUCTION STAGES
�	FOR THE SAN ANTONIO POOL
�	Comal San Marcos Springs Flow cfs Index Well J-17 Level MSL Critical Period Stage Withdrawal Reduction- San Antonio Pool
�	Springs Flow San Marcos Springs Flow cfs Index Well J-17 Level MSL Critical Period Stage Withdrawal Reduction- San Antonio Pool
�	cfs San Marcos Springs Flow cfs Index Well J-17 Level MSL Critical Period Stage Withdrawal Reduction- San Antonio Pool
�	225 <96 <660 I 20%
�	200 <80 <650 II 30%
�	150 N/A <640 III 35%
�	100 N/A <630 IV 40%
�	TABLE 2
�	CRITICAL PERIOD WITHDRAWAL REDUCTION STAGES
�	FOR THE UVALDE POOL
�	Withdrawal Reduction-Uvalde Pool Index Well J-27 Level MSL Critical Period Stage
�	N/A --- I
�	5% <850 II
�	20% <845 III
�	35% <842 IV
�	�������(c)��A change to a critical period stage with higher
�	withdrawal reduction percentages is triggered if the 10-day average
�	of daily springflows at the Comal Springs or the San Marcos Springs
�	or the 10-day average of daily aquifer levels at the J-17 Index Well
�	drops below the lowest number of any of the trigger levels indicated
�	in Table 1. A change to a critical period stage with lower
�	withdrawal reduction percentages is triggered only when the 10-day
�	average of daily springflows at the Comal Springs and the San Marcos
�	Springs and the 10-day average of daily aquifer levels at the J-17
�	Index Well are all above the same stage trigger level. The
�	authority may adjust the withdrawal percentages for Stage IV in
�	Tables 1 and 2 if necessary in order to comply with Subsection (d)
�	or (e) of this section.
�	�������(d)��Beginning September 1, 2007, the authority may not
�	require the volume of permitted withdrawals to be less than an
�	annualized rate of 340,000 acre-feet, under critical period Stage
�	IV.
�	�������(e)��After January 1, 2013, the authority may not require the
�	volume of permitted withdrawals to be less than an annualized rate
�	of 320,000 acre-feet, under critical period Stage IV unless, after
�	review and consideration of the recommendations provided under
�	Section 1.26A of this article, the authority determines that a
�	different volume of withdrawals is consistent with Sections
�	1.14(a), (f), and (h) of this article in maintaining protection for
�	federally listed threatened and endangered species associated with
�	the aquifer to the extent required by federal law.
�	�������(f)��Notwithstanding Subsections (d) and (e) of this
�	section, the authority may require further withdrawal reductions
�	before reviewing and considering the recommendations provided
�	under Section 1.26A of this article if the discharge of Comal
�	Springs or San Marcos Springs declines an additional 15 percent
�	after Stage IV withdrawal reductions are imposed under Subsection
�	(b) of this section. This subsection expires on the date that
�	critical period management plan rules adopted by the authority
�	based on the recommendations provided under Section 1.26A of this
�	article take effect.
�	�������(g)��Notwithstanding the existence of any stage of an interim
�	or final critical period adopted by the authority under this
�	section, a person authorized to withdraw groundwater from the
�	aquifer for irrigation purposes shall, without regard to the
�	withdrawal reductions prescribed for that stage, be allowed to
�	finish a crop already planted in the calendar year during which the
�	critical period is in effect.
�	�������Sec.�1.26A.��DEVELOPMENT OF WITHDRAWAL REDUCTION LEVELS AND
�	STAGES FOR CRITICAL PERIOD MANAGEMENT THROUGH RECOVERY
�	IMPLEMENTATION PROGRAM. (a)��The authority, with the assistance of
�	Texas A&M University, shall cooperatively develop a recovery
�	implementation program through a facilitated, consensus-based
�	process that involves input from the United States Fish and
�	Wildlife Service, other appropriate federal agencies, and all
�	interested stakeholders, including those listed under Subsection
�	(e)(1) of this section. The recovery implementation program shall
�	be developed for the species that are:
�	�������������(1)��listed as threatened or endangered species under
�	federal law; and
�	�������������(2)��associated with the aquifer.
�	�������(b)��The authority shall enter into a memorandum of agreement
�	with the United States Fish and Wildlife Service, other appropriate
�	federal agencies, the Texas Commission on Environmental Quality,
�	the Parks and Wildlife Department, the Department of Agriculture,
�	the Texas Water Development Board, and other stakeholders, not
�	later than December 31, 2007, in order to develop a program document
�	that may be in the form of a habitat conservation plan used in
�	issuance of an incidental take permit as outlined in Subsection (d)
�	of this section.
�	�������(c)��The authority shall enter into an implementing
�	agreement with the United States Fish and Wildlife Service, other
�	appropriate federal agencies, the Texas Commission on
�	Environmental Quality, the Parks and Wildlife Department, the
�	Department of Agriculture, the Texas Water Development Board, and
�	other stakeholders to develop a program document that may be in the
�	form of a habitat conservation plan used in issuance of an
�	incidental take permit as outlined in Subsection (d) of this
�	section not later than December 31, 2009.
�	�������(d)��The authority, the Texas Commission on Environmental
�	Quality, the Parks and Wildlife Department, the Department of
�	Agriculture, the Texas Water Development Board, and other
�	stakeholders shall jointly prepare a program document that may be
�	in the form of a habitat conservation plan used in issuance of an
�	incidental take permit with the United States secretary of the
�	interior, through the United States Fish and Wildlife Service and
�	other appropriate federal agencies, under Section 4 or Section 6,
�	Endangered Species Act of 1973 (16 U.S.C. Section 1533 or 1535), as
�	applicable, based on the program developed under Subsection (a) of
�	this section. The program document shall:
�	�������������(1)��provide recommendations for withdrawal
�	adjustments based on a combination of spring discharge rates of the
�	San Marcos and Comal Springs and levels at the J-17 and J-27 wells
�	during critical periods to ensure that federally listed,
�	threatened, and endangered species associated with the Edwards
�	Aquifer will be protected at all times, including throughout a
�	repeat of the drought of record;
�	�������������(2)��include provisions to pursue cooperative and grant
�	funding to the extent available from all state, federal, and other
�	sources for eligible programs included in the cooperative agreement
�	under Subsection (c) of this section, including funding for a
�	program director; and
�	�������������(3)��be approved and executed by the authority, the
�	Texas Commission on Environmental Quality, the Parks and Wildlife
�	Department, the Department of Agriculture, the Texas Water
�	Development Board, and the United States Fish and Wildlife Service
�	not later than September 1, 2012, and the agreement shall take
�	effect December 31, 2012.
�	�������(e)��Texas A&M University shall assist in the creation of a
�	steering committee to oversee and assist in the development of the
�	cooperative agreement under Subsection (c) of this section. The
�	steering committee must be created not later than September 30,
�	2007. The initial steering committee shall be composed of:
�	�������������(1)��a representative of each of the following
�	entities, as appointed by the governing body of that entity:
�	�������������������(A)��the Edwards Aquifer Authority;
�	�������������������(B)��the Texas Commission on Environmental
�	Quality;
�	�������������������(C)��the Parks and Wildlife Department;
�	�������������������(D)��the Department of Agriculture;
�	�������������������(E)��the Texas Water Development Board;
�	�������������������(F)��the San Antonio Water System;
�	�������������������(G)��the Guadalupe-Blanco River Authority;
�	�������������������(H)��the San Antonio River Authority;
�	�������������������(I)��the South Central Texas Water Advisory
�	Committee;
�	�������������������(J)��Bexar County;
�	�������������������(K)��CPS Energy; and
�	�������������������(L)��Bexar Metropolitan Water District or its
�	successor; and
�	�������������(2)��nine other persons who respectively must be:
�	�������������������(A)��a representative of a holder of an initial
�	regular permit issued to a retail public utility located west of
�	Bexar County, to be appointed by the authority;
�	�������������������(B)��a representative of a holder of an initial
�	regular permit issued by the authority for industrial purposes, to
�	be appointed by the authority;
�	�������������������(C)��a representative of a holder of an industrial
�	surface water right in the Guadalupe River Basin, to be appointed by
�	the Texas Commission on Environmental Quality;
�	�������������������(D)��a representative of a holder of a municipal
�	surface water right in the Guadalupe River Basin, to be appointed by
�	the Texas Commission on Environmental Quality;
�	�������������������(E)��a representative of a retail public utility
�	in whose service area the Comal Springs or San Marcos Springs is
�	located;
�	�������������������(F)��a representative of a holder of an initial
�	regular permit issued by the authority for irrigation, to be
�	appointed by the commissioner of agriculture;
�	�������������������(G)��a representative of an agricultural producer
�	from the Edwards Aquifer region, to be appointed by the
�	commissioner of agriculture;
�	�������������������(H)��a representative of environmental interests
�	from the Texas Living Waters Project, to be appointed by the
�	governing body of that project; and
�	�������������������(I)��a representative of recreational interests
�	in the Guadalupe River Basin, to be appointed by the Parks and
�	Wildlife Commission.
�	�������(f)��The steering committee shall work with Texas A&M
�	University to:
�	�������������(1)��establish a regular meeting schedule and publish
�	that schedule to encourage public participation; and
�	�������������(2)��not later than October 31, 2007, hire a program
�	director to be housed at Texas A&M University.
�	�������(g)��Texas A&M University may accept outside funding to pay
�	the salary and expenses of the program director hired under this
�	section and any expenses associated with the university's
�	participation in the creation of the steering committee or
�	subcommittees established by the steering committee.
�	�������(h)��Where reasonably practicable or as required by law, any
�	meeting of the steering committee, the Edwards Aquifer area expert
�	science subcommittee, or another subcommittee established by the
�	steering committee must be open to the public.
�	�������(i)��The steering committee appointed under this section
�	shall appoint an Edwards Aquifer area expert science subcommittee
�	not later than December 31, 2007. The expert science subcommittee
�	must be composed of an odd number of not fewer than seven or more
�	than 15 members who have technical expertise regarding the Edwards
�	Aquifer system, the threatened and endangered species that inhabit
�	that system, springflows, or the development of withdrawal
�	limitations. The Bureau of Economic Geology of The University of
�	Texas at Austin and the River Systems Institute at Texas State
�	University shall assist the expert science subcommittee. Chapter
�	2110, Government Code, does not apply to the size, composition, or
�	duration of the expert science subcommittee.
�	�������(j)��The Edwards Aquifer area expert science subcommittee
�	shall, among other things, analyze species requirements in relation
�	to spring discharge rates and aquifer levels as a function of
�	recharge and withdrawal levels. Based on that analysis and the
�	elements required to be considered by the authority under Section
�	1.14 of this article, the expert science subcommittee shall,
�	through a collaborative process designed to achieve consensus,
�	develop recommendations for withdrawal reduction levels and stages
�	for critical period management including, if appropriate,
�	establishing separate and possibly different withdrawal reduction
�	levels and stages for critical period management for different
�	pools of the aquifer needed to maintain target spring discharge and
�	aquifer levels. The expert science subcommittee shall submit its
�	recommendations to the steering committee and all other
�	stakeholders involved in the recovery implementation program under
�	this section.
�	�������(k)��The initial recommendations of the Edwards Aquifer area
�	expert science subcommittee must be completed and submitted to the
�	steering committee and other stakeholders not later than December
�	31, 2008, and should include an evaluation:
�	�������������(1)��of the option of designating a separate San Marcos
�	pool, of how such a designation would affect existing pools, and of
�	the need for an additional well to measure the San Marcos pool, if
�	designated;
�	�������������(2)��of the necessity to maintain minimum springflows,
�	including a specific review of the necessity to maintain a flow to
�	protect the federally threatened and endangered species; and
�	�������������(3)��as to whether adjustments in the trigger levels
�	for the San Marcos Springs flow for the San Antonio pool should be
�	made.
�	�������(l)��In developing its recommendations, the Edwards Aquifer
�	area expert science subcommittee shall:
�	�������������(1)��consider all reasonably available science,
�	including any Edwards Aquifer-specific studies, and base its
�	recommendations solely on the best science available; and
�	�������������(2)��operate on a consensus basis to the maximum extent
�	possible.
�	�������(m)��After development of the cooperative agreement, the
�	steering committee, with the assistance of the Edwards Aquifer area
�	expert science subcommittee and with input from the other recovery
�	implementation program stakeholders, shall prepare and submit
�	recommendations to the authority. The recommendations must:
�	�������������(1)��include a review of the critical period management
�	plan, to occur at least once every five years;
�	�������������(2)��include specific monitoring, studies, and
�	activities that take into account changed conditions and
�	information that more accurately reflects the importance of
�	critical period management; and
�	�������������(3)��establish a schedule for continuing the validation
�	or refinement of the critical period management plan adopted by the
�	authority and the strategies to achieve the program and cooperative
�	agreement described by this section.
�	�������(n)��In this subsection, "recharge facility" means a dam,
�	reservoir, or other method of recharge project and associated
�	facilities, structures, or works but does not include facilities
�	designed to recirculate water at Comal or San Marcos Springs. The
�	steering committee shall establish a recharge facility feasibility
�	subcommittee to:
�	�������������(1)��assess the need for the authority or any other
�	entity to own, finance, design, construct, operate, or maintain
�	recharge facilities;
�	�������������(2)��formulate plans to allow the authority or any
�	other entity to own, finance, design, construct, operate, or
�	maintain recharge facilities;
�	�������������(3)��make recommendations to the steering committee as
�	to how to calculate the amount of additional water that is made
�	available for use from a recharge project including during times of
�	critical period reductions;
�	�������������(4)��maximize available federal funding for the
�	authority or any other entity to own, finance, design, construct,
�	operate, or maintain recharge facilities; and
�	�������������(5)��evaluate the financing of recharge facilities,
�	including the use of management fees or special fees to be used for
�	purchasing or operating the facilities.
�	�������(o)��The steering committee may establish other
�	subcommittees as necessary, including a hydrology subcommittee, a
�	community outreach and education subcommittee, and a water supply
�	subcommittee.
�	�������(p)��On execution of the memorandum of agreement described by
�	Subsection (b) of this section, the steering committee described by
�	Subsection (e) of this section may, by majority vote of its members,
�	vote to add members to the steering committee, change the makeup of
�	the committee, or dissolve the committee. If the steering
�	committee is dissolved, the program director hired under Subsection
�	(f) of this section shall assume the duties of the steering
�	committee.
�	�������(q)��The authority shall provide an annual report to the
�	governor, lieutenant governor, and speaker of the house of
�	representatives not later than January 1 of each year that details:
�	�������������(1)��the status of the recovery implementation program
�	development process;
�	�������������(2)��the likelihood of completion of the recovery
�	implementation program and the cooperative agreement described by
�	Subsection (c) of this section;
�	�������������(3)��the extent to which the recommendations of the
�	Edwards Aquifer area expert science subcommittee are being
�	considered and implemented by the authority;
�	�������������(4)��any other actions that need to be taken in response
�	to each recommendation;
�	�������������(5)��reasons explaining why any recommendation
�	received has not been implemented; and
�	�������������(6)��any other issues the authority considers of value
�	for the efficient and effective completion of the program and the
�	cooperative agreement under this section.
�	�������SECTION�12.07.��Subsections (b), (h), and (i), Section 1.29,
�	Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993,
�	are amended to read as follows:
�	�������(b)��The authority shall assess equitable aquifer management
�	fees based on aquifer use under the water management plan to finance
�	its administrative expenses and programs authorized under this
�	article. Each water district governed by Chapter 36 [52], Water
�	Code, that is within the authority's boundaries may contract with
�	the authority to pay expenses of the authority through taxes in lieu
�	of user fees to be paid by water users in the district. The contract
�	must provide that the district will pay an amount equal to the
�	amount that the water users in the district would have paid through
�	user fees. The authority may not collect a total amount of fees and
�	taxes that is more than is reasonably necessary for the
�	administration of the authority.
�	�������(h)��Fees assessed by the authority may not be used to fund
�	the cost of reducing withdrawals or retiring permits or of
�	judgments or claims related to withdrawals or permit retirements
�	[Special fees collected under Subsection (c) or (d) of this section
�	may not be used to finance a surface water supply reservoir
�	project].
�	�������(i)��The authority and other stakeholders, including state
�	agencies, listed under Section 1.26A of this article shall provide
�	money as necessary[, but not to exceed five percent of the money
�	collected under Subsection (d) of this section,] to finance the
�	activities of the steering committee and any subcommittees
�	appointed by the steering committee and the program director of the
�	recovery implementation program under Section 1.26A of this
�	article. The authority shall provide, as necessary, up to $75,000
�	annually, adjusted for changes in the consumer price index, to
�	finance the South Central Texas Water Advisory Committee's
�	administrative expenses and programs authorized under this
�	article.
�	�������SECTION�12.08.��Subsection (a), Section 1.45, Chapter 626,
�	Acts of the 73rd Legislature, Regular Session, 1993, is amended to
�	read as follows:
�	�������(a)��The authority may own, finance, design, construct,
�	[build or] operate, and maintain recharge dams and associated
�	facilities, structures, or works in the contributing or recharge
�	area of the aquifer if the recharge is made to increase the yield of
�	the aquifer, [and] the recharge project does not impair senior
�	water rights or vested riparian rights, and the recharge project is
�	not designed to recirculate water at Comal or San Marcos Springs.
�	�������SECTION�12.09.��Subsections (b) and (d), Section 1.14,
�	Section 1.21, and Subsections (a), (c), and (d), Section 1.29,
�	Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993,
�	are repealed.
�	�������SECTION�12.10.��(a)��Before January 1, 2012, a suit may not
�	be instituted in a state court contesting:
�	�������������(1)��the validity or implementation of this article; or
�	�������������(2)��the groundwater withdrawal amounts recognized in
�	Section 1.14, Chapter 626, Acts of the 73rd Legislature, Regular
�	Session, 1993, as amended by this Act.�
�	�������(b)��If applicable, a party that files a suit in any court
�	shall be automatically removed from the steering committee
�	established under Section 1.26A, Chapter 626, Acts of the 73rd
�	Legislature, Regular Session, 1993, as added by this Act.
�	�������(c)��A suit against the Edwards Aquifer Authority may not be
�	instituted or maintained by a person who owns, holds, or uses a
�	surface water right and claims injury or potential injury to that
�	right for any reason, including any actions taken by the Edwards
�	Aquifer Authority to implement or enforce Article 1, Chapter 626,
�	Acts of the 73rd Legislature, Regular Session, 1993, as amended.
�	This section does not apply to suits brought pursuant to Section
�	1.45, Chapter 626, Acts of the 73rd Legislature, Regular Session,
�	1993.
�	�������SECTION�12.11.��The change in law made by this article
�	applies only to a cause of action filed on or after the effective
�	date of this article. A cause of action that is filed before the
�	effective date of this article is governed by the law in effect
�	immediately before the effective date of this article, and that law
�	is continued in effect for that purpose.
�	�������SECTION�12.12.��This article takes effect immediately if
�	this Act receives a vote of two-thirds of all the members elected to
�	each house, as provided by Section 39, Article III, Texas
�	Constitution. If this Act does not receive the vote necessary for
�	immediate effect, this article takes effect September 1, 2007.
�	ARTICLE 13. TERRITORY OF CULBERSON COUNTY GROUNDWATER CONSERVATION
�	DISTRICT
�	�������SECTION�13.01.��Chapter 1075, Acts of the 75th Legislature,
�	Regular Session, 1997, is amended by adding Section 3A to read as
�	follows:
�	�������Sec.�3A.��In addition to the portions of Culberson County
�	included in the boundaries of the district on August 31, 2007, the
�	boundaries of the district include all of the remaining territory
�	in Culberson County.
�	�������SECTION�13.02.��(a)��The annexation under Section 3A,
�	Chapter 1075, Acts of the 75th Legislature, Regular Session, 1997,
�	as added by this article, of the additional territory in Culberson
�	County that was not included in the boundaries of the Culberson
�	County Groundwater Conservation District on August 31, 2007, is
�	subject to ratification at an election held under Section 36.328,
�	Water Code, and this section in which only the voters residing in
�	the territory to be annexed are eligible to vote.
�	�������(b)��The board of directors of the Culberson County
�	Groundwater Conservation District shall hold the ratification
�	election on the first uniform election date that occurs after the
�	effective date of this article that allows for compliance with the
�	time requirements of the Election Code.
�	�������(c)��If a majority of the voters voting at the ratification
�	election vote in favor of the annexation, the Culberson County
�	Groundwater Conservation District boundaries include all of
�	Culberson County.
�	�������(d)��If a majority of the voters voting at the ratification
�	election do not vote in favor of the annexation, the Culberson
�	County Groundwater Conservation District boundaries are unchanged
�	and this article expires.
�	ARTICLE 14. �EFFECTIVE DATE
�	�������SECTION�14.01.��Except as otherwise provided by this Act,
�	this Act takes effect September 1, 2007.
�
�
�
�
�
�	______________________________	______________________________
�	���President of the Senate	Speaker of the House�����
�
�	�������I hereby certify that S.B.�No.�3 passed the Senate on
�	March�27,�2007, by the following vote:��Yeas�30, Nays�0;
�	May�24,�2007, Senate refused to concur in House amendments and
�	requested appointment of Conference Committee; May�26,�2007, House
�	granted request of the Senate; May�27,�2007, Senate adopted
�	Conference Committee Report by the following vote:��Yeas�29,
�	Nays�1.
�
�
�	______________________________
�	Secretary of the Senate����
�
�	�������I hereby certify that S.B.�No.�3 passed the House, with
�	amendments, on May�23,�2007, by the following vote:��Yeas�133,
�	Nays�8, one present not voting; May�26,�2007, House granted request
�	of the Senate for appointment of Conference Committee;
�	May�28,�2007, House adopted Conference Committee Report by the
�	following vote:��Yeas�113, Nays�28, two present not voting.
�
�
�	______________________________
�	Chief Clerk of the House���
�
�
�
�	Approved:
�
�	______________________________�
�	�����������Date
�
�
�	______________________________�
�	����������Governor