By:  Sims                                             S.B. No. 1370
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the management of water resources in the counties of
    1-2  Atascosa, Bexar, Caldwell, Calhoun, Comal, DeWitt, Frio, Goliad,
    1-3  Gonzales, Guadalupe, Hays, Jackson, Karnes, Kinney, Medina, Uvalde,
    1-4  Victoria, and Wilson; making an appropriation.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  The Edwards Water Authority Act is adopted as
    1-7  follows:
    1-8                    ARTICLE 1.  GENERAL PROVISIONS
    1-9        Sec. 1.01.  PURPOSE.  The purpose of this Act is to establish
   1-10  an instrumentality for developing and effectuating a regional water
   1-11  management program for the conjunctive use of surface and
   1-12  groundwater within Atascosa, Bexar, Caldwell, Calhoun, Comal,
   1-13  DeWitt, Frio, Goliad, Gonzales, Guadalupe, Hays, Jackson, Karnes,
   1-14  Kinney, Medina, Uvalde, Victoria, and Wilson counties.
   1-15        Sec. 1.02.  FINDINGS AND DECLARATION OF POLICY.  It is hereby
   1-16  found and declared that the management of waters in Atascosa,
   1-17  Bexar, Caldwell, Calhoun, Comal, DeWitt, Frio, Goliad, Gonzales,
   1-18  Guadalupe, Hays, Jackson, Karnes, Kinney, Medina, Uvalde, Victoria,
   1-19  and Wilson counties is necessary to sustain the life and economic
   1-20  viability of the region; that local regulation is necessary for
   1-21  effective use of the resources of the region; that regional
   1-22  cooperation for water research, planning, and resource development,
   1-23  for providing coordinated facilities, and for coordinating waste
    2-1  disposal in critical water supply areas are more effective than
    2-2  isolated efforts on a countywide, city-wide, or smaller scale; that
    2-3  creation of the Edwards Water Authority would advance the
    2-4  established policy of the state to manage the waters of the state
    2-5  consistent with the rights of private property owners, protection
    2-6  of public health and public enjoyment, the propagation and
    2-7  protection of terrestrial and aquatic life, the operation of
    2-8  existing industries, and the economic development of the state; and
    2-9  that use of water in the district for beneficial purposes requires
   2-10  that all reasonable measures be taken to be conservative in water
   2-11  use, to enhance water supply, spring flow, and aquifer recharge, to
   2-12  provide regional drought management, to prevent and abate water
   2-13  pollution, and to reclaim polluted water for beneficial uses.
   2-14        Sec. 1.03.  DEFINITIONS.  In this Act, unless the context
   2-15  requires a different meaning:
   2-16              (1)  "Authority" means the Edwards Water Authority
   2-17  created by this Act.
   2-18              (2)  "Average rainfall at Uvalde and San Antonio" means
   2-19  the sum of the rainfall for the last 12 months at the National
   2-20  Weather Service gauge (41-9268-6) located at the Texas A&M Research
   2-21  Experiment Station in Uvalde and at the National Weather Service
   2-22  gauge (41-945-7) located at the San Antonio International Airport.
   2-23              (3)  "Board" means the board of directors of the
   2-24  authority.
   2-25              (4)  "Commission" means the Texas Water Commission or
    3-1  its successors.
    3-2              (5)  "Development board" means the Texas Water
    3-3  Development Board.
    3-4              (6)  "Director" means a member of the board.
    3-5              (7)  "District" means the territory included in the
    3-6  authority.
    3-7              (8)  "Edwards district" or "Edwards districts" means
    3-8  any or all of the following districts:  the Edwards Underground
    3-9  Water District, the Kinney County Underground Water Conservation
   3-10  District, and the Uvalde County Underground Water Conservation
   3-11  District.
   3-12              (9)  "Groundwater" means water located below the
   3-13  earth's surface within the district but does not mean the underflow
   3-14  of navigable streams.
   3-15              (10)  "Person" means any individual, public or private
   3-16  corporation, political subdivision, governmental agency,
   3-17  municipality, copartnership, association, firm, trust, estate, or
   3-18  any other entity whatsoever.
   3-19              (11)  "Rule" includes regulation.
   3-20              (12)  "Transport of water" means the removal of
   3-21  groundwater from the producing estate's boundaries or the removal
   3-22  of state water from its authorized point of diversion or authorized
   3-23  place of impoundment including the importation of water from
   3-24  outside the district.
   3-25              (13)  "Water" means groundwater, percolating or
    4-1  otherwise, lakes, bays, ponds, impounding reservoirs, springs,
    4-2  rivers, streams, creeks, estuaries, marshes, inlets, canals, the
    4-3  Gulf of Mexico within the district, and all other bodies of surface
    4-4  water, natural or artificial, inland or coastal, fresh or salt,
    4-5  navigable or nonnavigable, that are wholly or partially within the
    4-6  district.
    4-7              (14)  "Water district" means a river authority, or a
    4-8  water district or authority acting under Article III, Section 52,
    4-9  or Article XVI, Section 59, of the Texas Constitution.
   4-10              (15)  "Water diversion" means the removal of state
   4-11  water from a watercourse or impoundment.
   4-12              (16)  "Water pollution" means the alteration of the
   4-13  physical, chemical, or biological quality of or the contamination
   4-14  of water that renders the water harmful, detrimental, or injurious
   4-15  to humans, animal life, vegetation, or property or to public
   4-16  health, safety, or welfare or impairs the usefulness or the public
   4-17  enjoyment of the water for any lawful or reasonable purpose.
   4-18              (17)  "Water level at Uvalde" means the level in feet
   4-19  above mean sea level calculated as a 10-day moving average at well
   4-20  YP-69-50-302.
   4-21              (18)  "Water level at Bexar" means the level in feet
   4-22  above mean sea level calculated as a 10-day moving average at well
   4-23  AY-68-37-203 (J-17).
   4-24                 ARTICLE 2.  ADMINISTRATIVE PROVISIONS
   4-25        Sec. 2.01.  CREATION OF AUTHORITY.  (a)  There is hereby
    5-1  created, pursuant to Article III, Section 52, and Article XVI,
    5-2  Section 59, of the Texas Constitution, a district to be known as
    5-3  the Edwards Water Authority, which shall be a governmental agency
    5-4  and body politic and corporate of the State of Texas.  The creation
    5-5  of such district is hereby determined to be essential to the
    5-6  accomplishment of the purposes of the Texas Constitution.  A
    5-7  confirmation election shall not be necessary.
    5-8        (b)  Nothing in this Act or in any other Act or law shall be
    5-9  construed as authorizing the authority to levy or collect taxes or
   5-10  assessments or in any way to pledge the credit of the state.
   5-11        (c)  The power to appropriate the use of surface water in the
   5-12  district remains vested in the state.  The power to regulate the
   5-13  use of groundwater in the state remains vested in water districts
   5-14  holding the powers granted by Chapter 52, Water Code, or special
   5-15  act.  The authority does not regulate the use of groundwater except
   5-16  as necessary under Subsection (b) of Section 3.01 of this Act.
   5-17        Sec. 2.02.  DESCRIPTION.  The authority's territory consists
   5-18  of the area inside the boundaries of Atascosa, Bexar, Caldwell,
   5-19  Calhoun, Comal, DeWitt, Frio, Goliad, Gonzales, Guadalupe, Hays,
   5-20  Jackson, Karnes, Kinney, Medina, Uvalde, Victoria, and Wilson
   5-21  counties.  The legislature declares that all the area included in
   5-22  the district will be benefited by the exercise of the powers
   5-23  conferred by this Act.
   5-24        Sec. 2.03.  BOARD.  (a)  The authority's powers, rights,
   5-25  duties, and functions are exercised by a board of directors.
    6-1        (b)  The authority shall be governed by a board of directors
    6-2  composed of 15 members.
    6-3        (c)  The directors shall be chosen to provide the board with
    6-4  the following composition:
    6-5              (1)  three members representing urban interests from
    6-6  San Antonio, the city in the district having the largest population
    6-7  of any city in the district according to the most recent federal
    6-8  census to be appointed by the mayor of that city;
    6-9              (2)  one member representing urban interests from the
   6-10  cities of Bexar County other than San Antonio to be appointed by
   6-11  the mayors of those cities;
   6-12              (3)  one member representing urban interests from
   6-13  Victoria, the city in the district having the second largest
   6-14  population of any city in the district according to the most recent
   6-15  federal census to be appointed by the mayor of that city;
   6-16              (4)  one member representing urban interests to be
   6-17  appointed by the mayors of New Braunfels and San Marcos;
   6-18              (5)  one member representing agricultural interests
   6-19  from Bexar County to be appointed by the Commissioners Court of
   6-20  Bexar County;
   6-21              (6)  one member representing agricultural interests
   6-22  from Uvalde County to be appointed by the Uvalde County Underground
   6-23  Water Conservation District;
   6-24              (7)  one member representing agricultural interests
   6-25  from Medina County to be appointed by the Medina County Underground
    7-1  Water Conservation District;
    7-2              (8)  one member representing agricultural interests
    7-3  from Kinney County to be appointed by the Kinney County Underground
    7-4  Water Conservation District;
    7-5              (9)  one member representing agricultural interests
    7-6  from Atascosa, Frio, and Wilson counties to be appointed by the
    7-7  Evergreen Underground Water Conservation District;
    7-8              (10)  one member representing agricultural interests
    7-9  from Caldwell, Gonzales, and Guadalupe counties to be appointed by
   7-10  the commissioners courts of those counties;
   7-11              (11)  one member representing agricultural interests
   7-12  from Karnes, DeWitt, and Goliad counties to be appointed by the
   7-13  commissioners courts of those counties;
   7-14              (12)  one member representing agricultural interests
   7-15  from Calhoun, Jackson, and Victoria counties to be appointed by the
   7-16  commissioners courts of those counties; and
   7-17              (13)  one member representing industrial interests from
   7-18  Calhoun, Jackson, and Victoria counties to be appointed by the
   7-19  commissioners courts of those counties.
   7-20        (d)  The appointments of the directors shall be made within
   7-21  30 days of the effective date of this Act and each year thereafter
   7-22  as required.  Where multiple jurisdictions cooperate to appoint
   7-23  directors, ballots shall be furnished to the electors and the
   7-24  resulting appointments verified by the board.  Each county has one
   7-25  vote in the case of a joint appointment.
    8-1        Sec. 2.04.  QUALIFICATION OF DIRECTORS.  To be qualified to
    8-2  be appointed a director, a person must be a qualified voter of the
    8-3  locality which the person represents.
    8-4        Sec. 2.05.  TERMS OF DIRECTORS.  (a)  A director's term of
    8-5  office shall be three years commencing September 1.
    8-6        (b)  Selection of directors for the first board shall be made
    8-7  promptly after this Act becomes effective and the initial directors
    8-8  will take office immediately on selection to serve until their
    8-9  successors take office.
   8-10        (c)  When a director's office becomes vacant by death,
   8-11  resignation, or removal, the unexpired term shall be filled by
   8-12  appointment as in the case of the initial appointment.
   8-13        (d)  To provide for staggered terms, the terms of the initial
   8-14  board of directors shall be as follows:
   8-15              (1)  three members representing urban interests from
   8-16  the City of San Antonio with one to serve a term expiring
   8-17  August 31, 1994, one expiring August 31, 1995, and one expiring
   8-18  August 31, 1996;
   8-19              (2)  one member representing urban interests from the
   8-20  other cities in Bexar County to serve until August 31, 1994;
   8-21              (3)  one member representing urban interests from the
   8-22  City of Victoria to serve until August 31, 1995;
   8-23              (4)  one member representing urban interests to be
   8-24  appointed by the mayors of New Braunfels and San Marcos to serve
   8-25  until August 31, 1996;
    9-1              (5)  one member representing agricultural interests
    9-2  from Bexar County to expire August 31, 1994;
    9-3              (6)  one member representing agricultural interests
    9-4  from Uvalde County to expire August 31, 1995;
    9-5              (7)  one member representing agricultural interests
    9-6  from Medina County to expire August 31, 1996;
    9-7              (8)  one member representing agricultural interests
    9-8  from Kinney County to expire August 31, 1994;
    9-9              (9)  one member representing agricultural interests
   9-10  from Atascosa, Frio, and Wilson counties to expire August 31, 1995;
   9-11              (10)  one member representing agricultural interests
   9-12  from Caldwell, Gonzales, and Guadalupe counties to expire
   9-13  August 31, 1996;
   9-14              (11)  one member representing agricultural interests
   9-15  from Karnes, DeWitt, and Goliad counties to expire August 31, 1994;
   9-16              (12) one member representing agricultural interests
   9-17  from Calhoun, Jackson, and Victoria counties to expire August 31,
   9-18  1995; and
   9-19              (13)  one representing industrial interests from
   9-20  Calhoun, Jackson, and Victoria counties to expire August 31, 1996.
   9-21        Sec. 2.06.  BONDS OF DIRECTORS.  To qualify for office, each
   9-22  director must:
   9-23              (1)  take the oath of office prescribed by Article 16,
   9-24  Revised Statutes;
   9-25              (2)  execute a bond in the amount of $5,000 with a
   10-1  corporate surety authorized to do business in this state
   10-2  conditioned on the faithful performance of the director's duties;
   10-3  and
   10-4              (3)  file a copy of the bond with the secretary of
   10-5  state and with the commissioners court of the county from which the
   10-6  director is appointed.
   10-7        Sec. 2.07.  MEETINGS AND ACTIONS OF THE BOARD.  (a)  The
   10-8  board shall meet at least once each year and may meet at any other
   10-9  time provided in its bylaws.
  10-10        (b)  A majority of the board constitutes a quorum.  Except as
  10-11  may be otherwise provided in this Act, the vote of a majority of a
  10-12  quorum of directors is required for board action.
  10-13        (c)  The board shall adopt bylaws at its first meeting or as
  10-14  soon thereafter as possible.
  10-15        Sec. 2.08.  ORGANIZATION OF BOARD.  (a)  The board shall
  10-16  elect from its members a chairman, vice-chairman, secretary, and
  10-17  other officers it deems necessary.
  10-18        (b)  The board's bylaws shall prescribe the powers, duties,
  10-19  and procedures for removal from board office of officers that it
  10-20  elects.
  10-21        Sec. 2.09.  INTEREST IN CONTRACT.  A director who is
  10-22  financially interested in a contract to be executed by the
  10-23  authority for the purchase of property or the construction of
  10-24  facilities shall disclose that fact to the other directors and may
  10-25  not vote on the acceptance of the contract.
   11-1        Sec. 2.10.  DIRECTOR'S COMPENSATION.  (a)  A director is
   11-2  entitled to receive an allowance of $100 a day and reimbursement
   11-3  for actual and necessary expenses incurred:
   11-4              (1)  for each day the director spends attending
   11-5  meetings of the board; and
   11-6              (2)  for each day the director spends attending to the
   11-7  business of the authority which is authorized by a resolution of
   11-8  the board.
   11-9        (b)  A director is not entitled to receive a per diem
  11-10  allowance for more than 120 days in any one calendar year.
  11-11        Sec. 2.11.  GENERAL MANAGER.  (a)  The board shall employ a
  11-12  general manager for a term and salary set by the board.
  11-13        (b)  The general manager is the chief executive officer of
  11-14  the authority.  Under policies established by the board, the
  11-15  general manager is responsible to the board for:
  11-16              (1)  administering the directives of the board;
  11-17              (2)  keeping the authority's records, including minutes
  11-18  of the board's meetings;
  11-19              (3)  coordinating with state, federal, and local
  11-20  agencies;
  11-21              (4)  developing plans and programs for the board's
  11-22  approval;
  11-23              (5)  hiring, supervising, training, and discharging the
  11-24  authority's employees;
  11-25              (6)  contracting for or retaining technical,
   12-1  scientific, legal, fiscal, and other professional services; and
   12-2              (7)  performing any other duties assigned to the
   12-3  general manager by the board.
   12-4        (c)  The board may discharge the general manager on a
   12-5  majority vote of all the qualified directors.
   12-6        Sec. 2.12.  MANAGER'S AND EMPLOYEES' BONDS.  (a)  The general
   12-7  manager and each employee of the authority charged with the
   12-8  collection, custody, or payment of any money of the authority shall
   12-9  execute a fidelity bond.  The board shall approve the form, amount,
  12-10  and surety of the bond.
  12-11        (b)  The authority shall pay the premiums on the employees'
  12-12  bonds under this section and the directors' bonds under Subdivision
  12-13  (2) of Section 2.06 of this Act.
  12-14        Sec. 2.13.  PRINCIPAL OFFICE.  The authority shall maintain
  12-15  its principal office inside the district.
  12-16        Sec. 2.14.  RECORDS.  (a)  The authority shall keep complete
  12-17  and accurate accounts of its business transactions in accordance
  12-18  with generally accepted methods of accounting.
  12-19        (b)  The authority shall keep complete and accurate minutes
  12-20  of its meetings.
  12-21        (c)  The authority shall keep its accounts, contracts,
  12-22  documents, minutes, and other records at its principal office.
  12-23        (d)  Neither the board nor its employees shall disclose any
  12-24  records that it has relating to trade secrets or economics of
  12-25  operation of industries or other private enterprises.
   13-1        (e)  Except as provided in Subsection (d) of this section,
   13-2  the authority shall permit reasonable public inspection of its
   13-3  records during regular business hours.
   13-4        Sec. 2.15.  SEAL.  The authority shall adopt a seal, the form
   13-5  of which it may alter from time to time.
   13-6        Sec. 2.16.  SUIT.  The authority may sue and be sued in its
   13-7  corporate name.
   13-8        Sec. 2.17.  SUPPORT OF THE AUTHORITY.  (a)  The fees required
   13-9  by this section are payable to the authority in the manner and for
  13-10  the purposes provided in this section.
  13-11        (b)  Every water district and water utility in the district
  13-12  will pay an assessment to the authority annually.  These
  13-13  assessments shall be used first for the general support and
  13-14  management of the authority and then for support of the authority's
  13-15  research, studies, and evaluations.  The amount of each assessment
  13-16  shall be determined by the authority based on the cost of
  13-17  operations benefitting each locality.
  13-18        (c)  The authority may contract for and receive payments
  13-19  derived from local taxes, fees, or any other source to be spent
  13-20  according to the agreement of the parties.
  13-21                     ARTICLE 3.  POWERS AND DUTIES
  13-22        Sec. 3.01.  GENERAL POWERS AND DUTIES.  (a)  The authority
  13-23  shall use its facilities and powers to accomplish the purpose of
  13-24  this Act.
  13-25        (b)  The authority shall function with the regulatory powers
   14-1  granted to districts created under Chapter 52, Water Code, and this
   14-2  Act over any territory within the district that is not served by a
   14-3  water district having the regulatory powers granted by Chapter 52,
   14-4  Water Code.
   14-5        (c)  The authority shall:
   14-6              (1)  conduct studies to determine the feasibility of
   14-7  enhancing spring flows during periods of drought to protect
   14-8  critical natural habitat and to satisfy downstream needs;
   14-9              (2)  conduct studies and research for the control of
  14-10  water pollution within the district and cooperate fully with the
  14-11  development board or its successor in any studies of the
  14-12  development board and utilize the results of those studies;
  14-13              (3)  conduct studies to determine if elevating the
  14-14  existing dams constructed below the spring discharge area and
  14-15  installing flow control valves to regulate spring discharge rates
  14-16  during periods of high aquifer levels will elevate the water level
  14-17  in the aquifer to create bank storage to make more water available
  14-18  for release during periods of drought;
  14-19              (4)  conduct studies to determine if off-channel
  14-20  reservoirs can be constructed to store spring flow discharges
  14-21  during periods of excess flow for use during periods of low flow to
  14-22  satisfy downstream needs;
  14-23              (5)  identify all potential sites for recharge
  14-24  structures above the aquifer and make studies to determine the
  14-25  amount of recharge that could occur if these structures were
   15-1  installed;
   15-2              (6)  make studies to determine additional techniques or
   15-3  methods that might be used to enhance recharge of the aquifer, such
   15-4  as brush control, precipitation enhancement, import of water from
   15-5  outside the Edwards Aquifer area, or other methods;
   15-6              (7)  evaluate the possible water savings that might be
   15-7  achieved by providing technical and financial assistance to
   15-8  irrigators to upgrade their irrigation systems;
   15-9              (8)  evaluate the necessary level of spring flow to
  15-10  maintain biological habitat;
  15-11              (9)  conduct continuing studies to determine if the
  15-12  activities of man are causing the encroachment of
  15-13  saline-contaminated or otherwise polluted water into the fresh
  15-14  water zone of the aquifer; and
  15-15              (10)  conduct any studies and research that the board
  15-16  considers necessary to implement the provisions of this Act.
  15-17        (d)  The board may cooperate with and request the assistance
  15-18  of the development board, the United States Geological Survey,
  15-19  local governments, other agencies of the United States government
  15-20  and the State of Texas in implementing the provisions of this Act.
  15-21        (e)  At least once each year and at any other time the board
  15-22  considers necessary, the board shall have its staff and the staff
  15-23  of the development board, if necessary, make a complete study of
  15-24  the groundwater situation within the district and determine the
  15-25  water level, rates of withdrawal, amounts of withdrawal, and other
   16-1  relevant information on which to base the authority's water
   16-2  management plan.
   16-3        Sec. 3.02.  WATER MANAGEMENT PLAN.  (a)  On or before August
   16-4  31 of each year the board shall hold a hearing on the authority's
   16-5  water management plan.  The plan must consider conjunctive use of
   16-6  surface and groundwater, conservation, drought management,
   16-7  enhancement of spring flow, surface water development, reuse, bays
   16-8  and estuaries, and other matters necessary to implement state
   16-9  policy as directed by Acts of the legislature.
  16-10        (b)  In developing the authority's water management plan, the
  16-11  board shall give priority to the proposals of the water districts
  16-12  and local governments within the district.
  16-13        (c)  Implementation of the water management plan is the
  16-14  responsibility of individual water districts, the authority when
  16-15  acting in the place of a local water district, water utilities,
  16-16  water permit holders, and local governments in cooperation with the
  16-17  authority or others as is appropriate.
  16-18        (d)  The board shall print a summary of its water management
  16-19  plan and furnish copies to any person on request.
  16-20        Sec. 3.03.  INSPECTIONS AND INVESTIGATIONS.  To carry out
  16-21  technical and other investigations necessary to the implementation
  16-22  of this Act, the board and its agents and employees are entitled to
  16-23  access to all property within the district.  All persons entering
  16-24  private property on behalf of the board are required to observe the
  16-25  rules of operation in effect for employees of the owner.
   17-1        Sec. 3.04.  HEARINGS.  The board may:
   17-2              (1)  hold hearings, receive pertinent and relevant
   17-3  proof from any party in interest who appears before the board,
   17-4  compel the attendance of witnesses, make findings of fact and
   17-5  determinations with respect to administering the provisions of this
   17-6  Act; and
   17-7              (2)  delegate to one or more of its members or to one
   17-8  or more of its employees the authority to administer oaths and take
   17-9  testimony in any hearing called by the authority or authorized by
  17-10  the authority to be held, but all orders entered shall be made by
  17-11  and in the name of the authority after its official action and
  17-12  attested to by the proper members of the board of directors.
  17-13        Sec. 3.05.  COURT REVIEW.  (a)  A person who is adversely
  17-14  affected by an act or order of the authority is entitled to
  17-15  mediation.  If mediation fails to resolve the dispute, a person so
  17-16  affected may sue the authority in district court to set aside the
  17-17  act or order.  The suit shall be filed within 60 days after the day
  17-18  on which the act or order took effect or the mediation ended.
  17-19        (b)  Venue for suits under Subsection (a) of this section is
  17-20  in any county in the district.
  17-21        Sec. 3.06.  AUTHORITY OF WATER DISTRICTS.  (a)  Taxation of
  17-22  property and regulation of the use of groundwater is vested in
  17-23  properly empowered local governments and water districts.  Nothing
  17-24  in this Act confers any power to tax property on the authority.
  17-25        (b)  A water district may go in and on public and private
   18-1  property to carry out technical and other investigations necessary
   18-2  to the implementation of this Act.  A water district shall transmit
   18-3  the results of its inspections to the authority.
   18-4        Sec. 3.07.  DROUGHT MANAGEMENT PLAN.  (a)  This drought
   18-5  management plan applies only to water in the Edwards and associated
   18-6  limestone formations within the Edwards Underground Water District,
   18-7  Kinney County, Medina County, and Uvalde County.
   18-8        (b)  There are five defined stages of drought severity and
   18-9  associated demand reductions.  The Edwards districts must begin the
  18-10  implementation of demand reduction measures with Stage I.  Each
  18-11  subsequent stage will be declared in progression.  The five stages
  18-12  are declared when the preceding 12-month average rainfall at Uvalde
  18-13  and San Antonio is less than 80 percent of the historical annual
  18-14  average at these locations and when the following additional
  18-15  conditions are met:
  18-16              (1)  Stage I:
  18-17                    (A)  when the water level is greater than 870 at
  18-18  Uvalde, the water level is less than 644 at Bexar, the spring flow
  18-19  at San Marcos is less than 110 cfs, and the spring flow at Comal is
  18-20  less than 160 cfs, then Stage I is declared in the Edwards district
  18-21  east of the Bexar/Medina county line;
  18-22                    (B)  when the water level is less than 870 at
  18-23  Uvalde, the water level is less than 644 at Bexar, the spring flow
  18-24  at San Marcos is less than 110 cfs, and the spring flow at Comal is
  18-25  less than 160 cfs, then Stage I is declared in the Edwards
   19-1  districts.
   19-2              (2)  Stage II:
   19-3                    (A)  when the water level is greater than 870 at
   19-4  Uvalde, the water level is less than 628 at Bexar, the spring flow
   19-5  at San Marcos is less than 80 cfs, and the spring flow at Comal is
   19-6  less than 70 cfs, then Stage II is declared in the Edwards district
   19-7  east of the Bexar/Medina county line;
   19-8                    (B)  when the water level is less than 870 at
   19-9  Uvalde, the water level is less than 628 at Bexar, the spring flow
  19-10  at San Marcos is less than 80 cfs, and the spring flow at Comal is
  19-11  less than 70 cfs, then Stage II is declared east of the
  19-12  Bexar/Medina County line and Stage I is declared west of the line;
  19-13                    (C)  when the water level is less than 840 at
  19-14  Uvalde, the water level is less than 644 at Bexar, the spring flow
  19-15  at San Marcos is less than 110 cfs, and the spring flow at Comal is
  19-16  less than 160 cfs, then Stage II is declared in the Edwards
  19-17  districts.
  19-18              (3)  Stage III:
  19-19                    (A)  when the water level is greater than 870 at
  19-20  Uvalde, the water level is less than 612 at Bexar, the spring flow
  19-21  at San Marcos is less than 50 cfs, and the spring flow at Comal is
  19-22  less than 0, then Stage III is declared in the Edwards district
  19-23  east of the Bexar/Medina county line;
  19-24                    (B)  when the water level is less than 870 at
  19-25  Uvalde, the water level is less than 612 at Bexar, the spring flow
   20-1  at San Marcos is less than 50 cfs, and the spring flow at Comal is
   20-2  less than 0, then Stage III is declared east of the Bexar/Medina
   20-3  county line and Stage I is declared west of the line;
   20-4                    (C)  when the water level is less than 829 at
   20-5  Uvalde, the water level is less than 628 at Bexar, the spring flow
   20-6  at San Marcos is less than 80 cfs, and the spring flow at Comal is
   20-7  less than 70 cfs, then Stage III is declared in the Edwards
   20-8  districts.
   20-9              (4)  Stage IV:  when the water level is less than 811
  20-10  at Uvalde, the water level is less than 612 at Bexar, the spring
  20-11  flow at San Marcos is less than 50 cfs, and the spring flow at
  20-12  Comal is less than 0, then Stage IV is declared in the Edwards
  20-13  districts.
  20-14              (5)  Stage V:  the Edwards districts will declare Stage
  20-15  V when the concentration of total dissolved solids or conductivity
  20-16  in any public water supply well increases to 30 percent above the
  20-17  historical average and exceeds previous maximum concentrations.
  20-18        Sec. 3.08.  DEMAND REDUCTIONS IN WATER USE IN THE EDWARDS
  20-19  DISTRICTS.  (a)  Water users should reduce the volume of water they
  20-20  use based on goals established for each stage and by implementing
  20-21  specific minimum demand reduction measures as described in their
  20-22  user drought management plans.
  20-23        (b)  Water purveyors with more than 35 connections are
  20-24  required to achieve reductions of:
  20-25              (1)  10 percent in Stage I;
   21-1              (2)  15 percent in Stage II;
   21-2              (3)  25 percent in Stage III;
   21-3              (4)  30 percent in Stage IV; and
   21-4              (5)  an amount that assures human health and safety and
   21-5  livestock needs in Stage V.
   21-6        (c)  The reduction goal percentage will be applied to the
   21-7  volume pumped by each user in 1984.
   21-8        (d)  Irrigators must reduce pumpage to two acre-feet per acre
   21-9  in any 12 consecutive months in Stage V.
  21-10        Sec. 3.09.  USER DROUGHT MANAGEMENT PLAN.  (a)  Water
  21-11  purveyors serving more than 35 connections and individual private
  21-12  well owners who use more than 50,000 gallons per day are required
  21-13  to prepare, adopt, and implement user drought management plans
  21-14  consistent with this Act.  All plans must be approved by the
  21-15  appropriate Edwards district.  Irrigation users are not required to
  21-16  submit plans.
  21-17        (b)  On receiving notification from the Edwards districts
  21-18  that drought response measures are required, users must initiate
  21-19  action according to their approved user drought management plans.
  21-20  They must also enforce use restrictions in their respective service
  21-21  areas or operations.
  21-22        (c)  User drought management plans shall include:
  21-23              (1)  demand reduction measures developed by the
  21-24  purveyor which, when combined with required measures, will achieve
  21-25  the reduction goals of this Act;
   22-1              (2)  financial measures which will encourage
   22-2  compliance;
   22-3              (3)  ordinances, regulations, or contractual
   22-4  requirements necessary for the purveyor to enforce the plan;
   22-5              (4)  provisions for reporting water pumpage; and
   22-6              (5)  required demand reduction measures as outlined
   22-7  below.
   22-8        (d)  Water waste is prohibited in any of the five stages.
   22-9  Water waste is any use which allows water to run off into a gutter,
  22-10  ditch, or drain or the failure to repair a controllable leak.
  22-11        Sec. 3.10.  RULES.  The Edwards districts shall adopt rules
  22-12  to implement the drought management plans.
  22-13        Sec. 3.11.  EMERGENCY FUND.  The drought management plan
  22-14  shall include an emergency management fund supported by users of
  22-15  water utilities and industrial users of water from the Edwards
  22-16  Aquifer.  The fund shall provide compensation for crop losses
  22-17  necessitated by emergency management of irrigation under the
  22-18  authority's water management plan in times of drought.  The fund
  22-19  shall be administered by the development board and may be funded by
  22-20  obligations of the development board supported by the pledge of
  22-21  water user fees.
  22-22        Sec. 3.12.  ACQUISITION, CONSTRUCTION, AND OPERATION.
  22-23  (a)  The authority may:
  22-24              (1)  acquire and provide by purchase, gift, or lease
  22-25  any water development, water supply, or wastewater systems or
   23-1  structures within or outside the district;
   23-2              (2)  construct and provide water development, water
   23-3  supply, or wastewater systems or structures within or outside the
   23-4  district;
   23-5              (3)  operate and sell systems or structures that it
   23-6  constructs or acquires;
   23-7              (4)  contract with any person to operate and maintain
   23-8  any system or structures belonging to the person;
   23-9              (5)  contract with any person to train or supervise
  23-10  employees of a system;
  23-11              (6)  control, store, and preserve the waters of any
  23-12  rivers and streams for all useful purposes and use, distribute, and
  23-13  sell the same within the boundaries of the district for any such
  23-14  purposes;
  23-15              (7)  conserve, preserve, and develop underground waters
  23-16  within the boundaries of the district for all useful purposes and
  23-17  use, distribute, and sell the same for any such purposes subject to
  23-18  regulation by appropriate water districts with the powers granted
  23-19  by Chapter 52, Water Code;
  23-20              (8)  acquire water, water supply facilities, and
  23-21  conservation storage capacity within or outside the district from
  23-22  any person, including the state and any of its agencies and
  23-23  subdivisions and the United States government and any of its
  23-24  agencies and subdivisions;
  23-25              (9)  act to prevent or aid in the prevention of damage
   24-1  to person or property from the surface waters of the district;
   24-2              (10)  act to prevent and to aid in the prevention of
   24-3  soil erosion and flooding within the district;
   24-4              (11)  develop the reclamation and drainage of
   24-5  overflowed lands and other lands needing drainage within the
   24-6  boundaries of the district and any facilities in aid thereof; and
   24-7              (12)  conserve and develop waters and lands for
   24-8  recreational purposes.
   24-9        Sec. 3.13.  CONTRACTS FOR WATER.  (a)  The authority may
  24-10  contract for, store, and sell water that it acquires or collects.
  24-11        Sec. 3.14.  SALE OF WATER AND BY-PRODUCTS.  (a)  The
  24-12  authority may store and sell water that it acquires or collects.
  24-13  Groundwater acquired by the authority and transported in a
  24-14  watercourse is appropriated for use by the authority.  The
  24-15  commission by rule may restrict this appropriation by a factor
  24-16  recognizing evapotranspiration stream losses.
  24-17        (b)  Water right holders may contract with the authority for
  24-18  the sale and transport of state water within the district.  A
  24-19  contract with the authority is evidence of beneficial use of state
  24-20  water for the purposes of compliance with the Water Code.
  24-21        (c)  The transport of water within the district by persons
  24-22  other than the authority is prohibited.  The transport of water to
  24-23  points outside the district is prohibited unless corresponding
  24-24  supplies of water are made available for use within the district by
  24-25  the parties being served.  Nothing in this subsection restricts the
   25-1  movement of potable water by a utility in its certificated service
   25-2  area.
   25-3        (d)  No local government, water utility, or water district
   25-4  located in the district may acquire a water supply outside its
   25-5  boundaries except through contract with the authority.
   25-6        Sec. 3.15.  PERMITS FROM TEXAS WATER COMMISSION.  (a)  For
   25-7  the purpose of maintaining established water quality standards in
   25-8  the bays and estuaries within the district or other lawful purpose,
   25-9  the authority may apply to the commission for water appropriation
  25-10  permits.
  25-11        (b)  The authority may apply for water storage or use permits
  25-12  from the commission to store and sell state water.
  25-13        Sec. 3.16.  EMINENT DOMAIN.  The authority may acquire
  25-14  property of any kind within or outside the district, appropriate
  25-15  for the exercise of its functions, through the exercise of the
  25-16  power of eminent domain under the provisions of Title 52, Revised
  25-17  Statutes, as amended.
  25-18        Sec. 3.17.  RELOCATION OF FACILITIES.  In the event that the
  25-19  authority, in the exercise of the power of eminent domain or power
  25-20  of relocation or any other power, makes necessary the relocation,
  25-21  raising, rerouting, changing the grade of, or altering the
  25-22  construction of any highway, railroad, electric transmission line,
  25-23  telephone or telegraph properties and facilities, or pipelines, all
  25-24  such necessary relocation, raising, rerouting, change in grade, or
  25-25  alteration of construction shall be accomplished at the sole
   26-1  expense of the authority.  The term "sole expense" shall mean the
   26-2  actual cost of such relocation, raising, rerouting, change in
   26-3  grade, alteration of grade, or construction in providing comparable
   26-4  replacement without any enhancement of such facilities after
   26-5  deducting therefrom the net salvage value derived from the old
   26-6  facility.
   26-7        Sec. 3.18.  USE OF PUBLIC EASEMENTS.  The authority shall
   26-8  have the right, power, and authority to use any and all public
   26-9  roadways, streets, alleys, or public easements within or outside
  26-10  the district in the accomplishment of its purposes, without the
  26-11  necessity of securing a franchise.
  26-12        Sec. 3.19.  ACQUISITION AND DISPOSITION OF PROPERTY.
  26-13  (a)  The authority may purchase, lease, acquire by gift, maintain,
  26-14  use, and operate property of any kind appropriate for the exercise
  26-15  of its functions.
  26-16        (b)  The board may sell to the highest bidder at a public or
  26-17  private sale or may exchange any property or land owned by the
  26-18  authority which is not required to carry out the plans of the
  26-19  authority.  Before either a public or a private sale of property or
  26-20  land not required for the authority's plans, the authority shall
  26-21  give notice of the intent to sell by publishing notice once a week
  26-22  for two consecutive weeks in one or more newspapers with general
  26-23  circulation in the district.
  26-24        Sec. 3.20.  FACILITIES.  The authority may acquire in any
  26-25  lawful manner, construct, extend, improve, maintain, reconstruct,
   27-1  use, and operate any facilities necessary or convenient to the
   27-2  exercise of its powers, rights, duties, and functions.
   27-3        Sec. 3.21.  CONTRACTS GENERALLY.  (a)  The authority may make
   27-4  contracts and execute instruments that are necessary or convenient
   27-5  to the exercise of its powers, rights, duties, and functions.  A
   27-6  contract may be for any term not to exceed 50 years.
   27-7        (b)  Any construction or repair contract, contract for the
   27-8  purchase of material, equipment, or supplies, or any contract for
   27-9  services, other than technical, scientific, legal, fiscal, or other
  27-10  professional services, shall be awarded to the lowest and best
  27-11  bidder for the contract after publication of a notice to bidders
  27-12  once each week for three consecutive weeks before the date set for
  27-13  awarding the contract if the contract will require an estimated
  27-14  expenditure of more than $25,000 or if the contract is for a term
  27-15  of more than five years.  In the event of an emergency, the
  27-16  authority may let such contracts as are necessary to protect and
  27-17  preserve the public health and welfare or the properties of the
  27-18  authority without such bidding procedures.
  27-19        (c)  The notice is sufficient if it states the time and
  27-20  place; when and where the bids will be opened; the general nature
  27-21  of the work to be done; the material, equipment, or supplies to be
  27-22  purchased; or the nonprofessional services to be rendered and
  27-23  states the terms on which copies of the plans, specifications, or
  27-24  other pertinent information may be obtained.
  27-25        (d)  Publication of the notice shall be in a newspaper having
   28-1  general circulation in the county or counties in which the contract
   28-2  is to be performed.  In addition to publishing notice in a
   28-3  newspaper having general circulation, the notice may also be
   28-4  published in any other appropriate publication.
   28-5        (e)  Anyone desiring to bid on the construction of any work
   28-6  advertised as herein provided shall on written application to the
   28-7  board be furnished with a copy of the plans and specifications or
   28-8  other engineering and architectural documents showing the work to
   28-9  be done and all the details thereof, provided that a charge may be
  28-10  made for the documents to cover the cost of reproduction.  All bids
  28-11  to do any such work shall be in writing, be sealed and delivered to
  28-12  the board, and be accompanied by a certified check drawn on some
  28-13  responsible bank in the state or a bid bond from a company approved
  28-14  by the board, for at least one percent of the total amount bid.
  28-15  The amount of the check or bond shall be forfeited to the authority
  28-16  in the event the successful bidder fails or refuses to enter into a
  28-17  proper contract therefor or fails or refuses to furnish the bond
  28-18  therefor as required by law.  Any or all bids may be rejected by
  28-19  the board.
  28-20        (f)  Bids shall be opened at the place specified in the
  28-21  published notice and shall be announced by the board.  The place
  28-22  where the bids are opened and announced shall always be open to the
  28-23  public.
  28-24        (g)  The contract price of all construction contracts of the
  28-25  authority may be made in partial payments as the work progresses,
   29-1  but such payments shall not exceed 90 percent of the amount due at
   29-2  the time of the payment as shown by the report of the general
   29-3  manager of the authority.  The board shall at all times during the
   29-4  progress of the work inspect the same or cause the same to be
   29-5  inspected by the general manager or his assistants, and on the
   29-6  completion of any contract in accordance with its terms, the board
   29-7  shall pay the balance due thereon.
   29-8        (h)  The person, firm, or corporation to whom the contract is
   29-9  let shall provide the performance and payment bonds required by
  29-10  law.
  29-11        (i)  The provisions of this section do not prohibit the
  29-12  authority from purchasing surplus property from the United States
  29-13  government by negotiated contract and without the necessity for
  29-14  advertising bids.
  29-15        (j)  An officer, agent, or employee of the authority who is
  29-16  financially interested in a contract of a type enumerated in
  29-17  Subsection (b) of this section shall disclose that fact to the
  29-18  board before the board votes on the acceptance of the contract.
  29-19        (k)  Notwithstanding any provision of any charter of any city
  29-20  or town, contracts between the authority and any city or town need
  29-21  not be submitted to the electorate.
  29-22        (l)(1)  The authority and all persons are authorized to enter
  29-23  into contracts with respect to any waste and any waste disposal or
  29-24  treatment facilities and any other facilities described in this
  29-25  subsection or any other part of this Act, and the authority is
   30-1  authorized to execute all appropriate documents and instruments in
   30-2  connection therewith; the authority is authorized to issue bonds
   30-3  with respect to any of its powers, including those powers granted
   30-4  in this subsection, and for the purpose of providing or funding any
   30-5  debt service reserve fund or other special reserve, contingency, or
   30-6  other fund in connection with bonds, for the purpose of providing
   30-7  funds to operate any facilities for a period not to exceed three
   30-8  years after completion and to maintain any facilities, and to
   30-9  provide funds to pay interest on bonds during a period determined
  30-10  by the authority.
  30-11              (2)  All persons are authorized to contract with the
  30-12  authority in any manner authorized by this Act with respect to any
  30-13  facilities described in this Act, provided that any public agency
  30-14  or local government additionally is authorized to enter into and
  30-15  execute any such contract with the authority and to determine,
  30-16  agree, and pledge that all or any part of its payments under the
  30-17  contract shall be payable subject only to the authorization of such
  30-18  contract, pledge, and payments by a majority vote of the governing
  30-19  body of the public agency or local government.  All public agencies
  30-20  and local governments are authorized to use and pledge any other
  30-21  available revenues or resources for and to the payment of amounts
  30-22  due under such contracts as an additional source or sources of
  30-23  payment or as the sole source or sources of payment and may
  30-24  covenant so as to assure the availability of the amounts payable
  30-25  when required.
   31-1              (3)  This subsection shall be wholly sufficient
   31-2  authority within itself for the issuance of the bonds subject to
   31-3  Article 5 of this Act, the execution of the contracts, and the
   31-4  performance of the other acts and procedures authorized herein by
   31-5  the authority and all persons, including specifically public
   31-6  agencies, without reference to any other provisions of law or any
   31-7  restrictions or limitations contained therein, except as herein
   31-8  specifically provided.  To the extent of any conflict or
   31-9  inconsistency between any provisions of this subsection and any
  31-10  other provision of law, including any home-rule city charter
  31-11  provisions, this subsection shall prevail and control, provided
  31-12  that the authority and all persons, including specifically public
  31-13  agencies, shall have the right to use any other provision of law
  31-14  not in conflict with the provisions of this subsection to the
  31-15  extent convenient or necessary to carry out any power or authority,
  31-16  express or implied, granted by this subsection.
  31-17        Sec. 3.22.  COOPERATIVE AGREEMENTS.  The authority may enter
  31-18  into cooperative agreements with other local governments, water
  31-19  districts, state agencies, or agencies of the United States
  31-20  government.  Cooperative agreements include but are not limited to
  31-21  agreements:
  31-22              (1)  for water development functions;
  31-23              (2)  to perform water supply, water quality, waste
  31-24  disposal management, and inspection functions and give technical
  31-25  aid and education services to any entity that is a party to the
   32-1  agreement; and
   32-2              (3)  to transfer money or property to any entity that
   32-3  is a party to the cooperative agreement for the purpose of water
   32-4  supply, water quality, waste disposal management, inspection,
   32-5  enforcement, and technical aid and education.
   32-6        Sec. 3.23.  REUSE AUTHORIZED.  (a)  Any regulation affecting
   32-7  the withdrawal of water from the Edwards Aquifer shall allow for
   32-8  credit to be given for the certified reuse of aquifer water.  For
   32-9  regulatory credit, the authority must certify:
  32-10              (1)  the beneficial use and reuse of aquifer water;
  32-11              (2)  the amount of aquifer water to be used; and
  32-12              (3)  the amount of aquifer withdrawals replaced by
  32-13  reuse.
  32-14        (b)  Water withdrawn from the Edwards Aquifer and returned to
  32-15  a water course by a municipal or industrial user under a wastewater
  32-16  discharge permit is appropriated to the discharging user for reuse
  32-17  to the extent that:
  32-18              (1)  reuse is certified by the authority;
  32-19              (2)  reuse replaces water that would otherwise have
  32-20  been withdrawn from the Edwards Aquifer; and
  32-21              (3)  reuse is for municipal or industrial purposes.
  32-22        Sec. 3.24.  RIGHTS NOT AFFECTED.  (a)  Contracts of the
  32-23  Lavaca-Navidad River Authority to supply water from surface water
  32-24  supplies to local governments or other public entities outside the
  32-25  boundaries of the district are exempt from and not affected by the
   33-1  provisions of this Act.  The Lavaca-Navidad River Authority is not
   33-2  exempt from other applicable provisions of this Act.
   33-3        (b)  The anticipated development of methods and structures to
   33-4  enhance recharge of the Edwards Aquifer may impair or otherwise
   33-5  affect existing or future water supply projects in the Nueces, San
   33-6  Antonio, and Guadalupe river basins.  It is necessary to maximize
   33-7  the benefits of existing and future water supply projects for
   33-8  highest and best use of the entire water resource.  The commission
   33-9  may not impose or enforce any condition on the use of state water
  33-10  that results in a reduction of the firm yield of a water supply
  33-11  project in the Nueces, San Antonio, or Guadalupe river basins.
  33-12                 ARTICLE 4.  GENERAL FISCAL PROVISIONS
  33-13        Sec. 4.01.  DISBURSEMENT OF FUNDS.  The authority's money is
  33-14  disbursable only by check, draft, order, or other instrument signed
  33-15  by the person or persons authorized to do so by the board's bylaws
  33-16  or by resolution of the board.
  33-17        Sec. 4.02.  FEES AND CHARGES.  The authority shall establish
  33-18  fees and charges for its services which may not be higher than
  33-19  necessary to fulfill the obligations imposed on it by this Act.
  33-20        Sec. 4.03.  LOANS AND GRANTS.  (a)  The authority may borrow
  33-21  money for its corporate purposes.
  33-22        (b)  The authority may borrow money and accept grants from
  33-23  private sources, the United States government, the state, and local
  33-24  governments.  The authority may enter into any agreement in
  33-25  connection with the loan or grant which is not in conflict with the
   34-1  constitution and laws of this state.
   34-2        (c)  The sources of any funds accepted by the authority are
   34-3  public information, as to both the amount and any restrictions
   34-4  placed by the donor on their expenditure.
   34-5        Sec. 4.04.  FISCAL YEAR.  The authority's fiscal year shall
   34-6  be established by the board.
   34-7        Sec. 4.05.  INDEPENDENT AUDIT.  (a)  The authority shall keep
   34-8  a complete system of accounts.  An audit of its affairs for each
   34-9  year shall be prepared by an independent certified public
  34-10  accountant or a firm of independent certified public accountants of
  34-11  recognized integrity and ability selected by the board.  The cost
  34-12  of the audit shall be paid by the authority.
  34-13        (b)  The authority shall file copies of the independent audit
  34-14  with the governor, the development board, and the commissioners
  34-15  court of each county in the district.  The board shall keep at
  34-16  least one copy of the audit at the office of the authority open to
  34-17  inspection by any interested person during normal office hours.
  34-18        Sec. 4.06.  DEPOSITORY BANKS.  (a)  The board shall designate
  34-19  one or more banks within the district to serve as depository for
  34-20  the funds of the authority.  All funds of the authority shall be
  34-21  deposited in the depository bank or banks except that bond proceeds
  34-22  and funds pledged to pay bonds may be deposited with the trustee
  34-23  bank named in the trust indenture to the extent provided in a trust
  34-24  indenture and except that funds shall be remitted to the bank of
  34-25  payment for the payment of principal of and interest on bonds.  To
   35-1  the extent that funds in the depository banks or a trustee bank are
   35-2  not invested or insured by the Federal Deposit Insurance
   35-3  Corporation, they shall be secured in the manner provided by law
   35-4  for the security of county funds.
   35-5        (b)  Before designating a depository bank or banks, the board
   35-6  shall issue a notice stating the time and place when and where the
   35-7  board will meet for such purpose and inviting the banks in the
   35-8  district to submit applications to be designated depositories.  The
   35-9  term of service for depositories shall be prescribed by the board.
  35-10  Such notice shall be published one time in a newspaper of general
  35-11  circulation in the district and specified by the board, or, in lieu
  35-12  of such publication, a copy of such notice may be mailed to each
  35-13  bank in the district.
  35-14        (c)  At the time mentioned in the notice, the board shall
  35-15  consider the applications and the management and condition of the
  35-16  banks filing them and shall designate as depositories the bank or
  35-17  banks which offer the most favorable terms and conditions for the
  35-18  handling of the funds of the authority and which the board finds
  35-19  have proper management and are in condition to warrant handling of
  35-20  authority funds.  Membership on the board of an officer or director
  35-21  of a bank shall not disqualify the bank from being designated as
  35-22  depository.
  35-23        (d)  If no applications are received by the time stated in
  35-24  the notice, the board shall designate some bank or banks within or
  35-25  outside the district on such terms and conditions as it may find
   36-1  advantageous to the authority.
   36-2                  ARTICLE 5.  BOND AND TAX PROVISIONS
   36-3        Sec. 5.01.  BONDS.  (a)  For the purpose of carrying out any
   36-4  power or authority conferred by this Act, including the expense of
   36-5  preparing the master plan and the payment of engineering and other
   36-6  expenses in connection therewith, the authority is empowered to
   36-7  issue bonds secured by a pledge of all or part of the revenues
   36-8  accruing to the authority, including without limitation those
   36-9  received from the sale of water or other products, rendition of
  36-10  service, tolls, charges, and all other sources.
  36-11        (b)  Bonds shall be authorized by resolution of the board and
  36-12  shall be issued in the name of the authority, signed by the
  36-13  chairman and vice-chairman, and attested by the secretary, and
  36-14  shall bear the seal of the authority.  It is provided, however,
  36-15  that the signatures of the chairman, the vice-chairman, or the
  36-16  secretary or of both signees may be printed or lithographed on the
  36-17  bonds if authorized by the board, and that the seal of the
  36-18  authority may be impressed on the bonds or may be printed or
  36-19  lithographed thereon.  The bonds shall be in such form as shall be
  36-20  prescribed by the board, shall be in such denomination or
  36-21  denominations, shall mature serially or otherwise in not to exceed
  36-22  50 years from their date, shall bear such interest, and may be sold
  36-23  at a price and under terms determined by the board to be the most
  36-24  advantageous reasonably obtainable, and, within the discretion of
  36-25  the board, may be made callable prior to maturity at such times and
   37-1  prices as may be prescribed in the bonds, and may be made
   37-2  registrable as to principal or as to both principal and interest.
   37-3  The bonds may be further secured by an indenture of trust with a
   37-4  corporate trustee.
   37-5        (c)  Bonds may be issued in more than one series and from
   37-6  time to time as required for carrying out the purposes of this Act.
   37-7  Any pledge of revenues may reserve the right, under conditions
   37-8  therein specified, to issue additional bonds which will be on a
   37-9  parity with or be secured by a lien senior to or subordinate to the
  37-10  bonds then being issued.
  37-11        (d)  The resolution authorizing the bonds or the trust
  37-12  indenture further securing such bonds may specify additional
  37-13  provisions which shall constitute a contract between the authority
  37-14  and its bondholders.  The board shall have full discretion in
  37-15  providing for such additional provisions including the authority to
  37-16  provide for a corporate trustee or receiver to take possession of
  37-17  facilities of the authority in the event of default on the part of
  37-18  the authority in fulfilling the covenants therein made.
  37-19        Sec. 5.02.  REFUNDING BONDS.  The authority is authorized to
  37-20  issue refunding bonds for the purpose of refunding any outstanding
  37-21  bonds authorized by this Act and interest thereon.  Such refunding
  37-22  bonds may be issued to refund one or more series of outstanding
  37-23  bonds and combine the pledges for the outstanding bonds for the
  37-24  security of the refunding bonds and may be secured by other or
  37-25  additional revenues.  The provisions of this law with reference to
   38-1  the issuance by the authority of other bonds, their security, and
   38-2  their approval by the attorney general and the remedies of the
   38-3  holders shall be applicable to refunding bonds.  Refunding bonds
   38-4  shall be registered by the comptroller on surrender and
   38-5  cancellation of the bonds to be refunded, but in lieu thereof the
   38-6  resolution authorizing their issuance may provide that they shall
   38-7  be sold and the proceeds thereof deposited in the bank where the
   38-8  original bonds are payable, in which case the refunding bonds may
   38-9  be issued in an amount sufficient to pay the principal of and the
  38-10  interest on the original bonds to their option date or maturity
  38-11  date, and the comptroller shall register them without concurrent
  38-12  surrender and cancellation of the original bonds.
  38-13        Sec. 5.03.  APPROVAL AND REGISTRATION OF BONDS.  After any
  38-14  bonds, including refunding bonds, are authorized by the authority,
  38-15  such bonds and the record relating to their issuance shall be
  38-16  submitted to the attorney general for examination as to the
  38-17  validity thereof.  If such bonds recite that they are secured by a
  38-18  pledge of the proceeds of a contract made between the authority and
  38-19  any city or other governmental agency, authority, or district, a
  38-20  copy of such contract and the proceedings of the city or other
  38-21  governmental agency, authority, or district authorizing such
  38-22  contract shall also be submitted to the attorney general.  If the
  38-23  attorney general finds that such bonds have been authorized and
  38-24  such contracts have been made in accordance with the constitution
  38-25  and laws of the state, the attorney general shall approve the bonds
   39-1  and such contracts and the bonds then shall be registered by the
   39-2  comptroller of public accounts.  Thereafter the bonds and the
   39-3  contracts, if any, shall be valid and binding and shall be
   39-4  incontestable for any cause.
   39-5        Sec. 5.04.  BONDS AUTHORIZED INVESTMENTS.  All bonds and
   39-6  refunding bonds of the authority shall be and are hereby declared
   39-7  to be legal, eligible, and authorized investments for banks;
   39-8  savings and loan associations; insurance companies; fiduciaries;
   39-9  trustees; the sinking funds of cities, towns, villages, counties,
  39-10  school districts, or any other political corporation or subdivision
  39-11  of the State of Texas; and for all public funds of the state or its
  39-12  agencies, including the permanent school fund.  Such bonds and
  39-13  refunding bonds shall be eligible to secure the deposit of any and
  39-14  all public funds of the state and the cities, towns, villages,
  39-15  counties, school districts, or other political corporations or
  39-16  subdivisions of the state, and such bonds shall be lawful and
  39-17  sufficient security for the deposits to the extent of the face
  39-18  value of the bonds when accompanied by all unmatured coupons
  39-19  appurtenant thereto.
  39-20        Sec. 5.05.  TAXES AND FEES.  Subject to all applicable laws,
  39-21  taxes and fees may be levied by local governments in any manner and
  39-22  amount necessary to carry out the purposes of this Act, to support
  39-23  the authority, or to fulfill any agreement with the authority.
  39-24                     ARTICLE 6.  UNDERGROUND WATER
  39-25                        CONSERVATION DISTRICTS
   40-1        Sec. 6.01.  PURPOSE AND POWER OF DISTRICT.  The authority may
   40-2  establish one or more underground water conservation districts for
   40-3  the purpose of accomplishing any of the purposes or exercising any
   40-4  of the powers, rights, privileges, or authority vested by Chapter
   40-5  52, Water Code.
   40-6        Sec. 6.02.  ESTABLISHMENT OF DISTRICTS.  (a)  Underground
   40-7  water conservation districts may be established by the procedures
   40-8  contained in this section.
   40-9        (b)  The authority may adopt a resolution calling for the
  40-10  creation of an underground water conservation district, determining
  40-11  the boundaries thereof, declaring that taxes for the maintenance of
  40-12  the underground water conservation district and its improvements
  40-13  shall be levied, at a rate not to exceed the maximum rate fixed in
  40-14  Chapter 52, Water Code, on the taxable property within the proposed
  40-15  underground water conservation district, and fixing a time and
  40-16  place for a public hearing on the matters set out in the
  40-17  resolution.  The authority must adopt a resolution calling for the
  40-18  creation of an underground water conservation district when it is
  40-19  requested by a local government or a group of 25 or more land
  40-20  owners in the proposed district.
  40-21        (c)  The public hearing may be conducted by a quorum of the
  40-22  board of directors, by one or more directors, or by one or more
  40-23  employees designated by the board.  If someone other than a quorum
  40-24  of the board conducts the hearing, they shall have power to accept
  40-25  evidence and make recommendations on which the board may act.  The
   41-1  board may alter, modify, or change any provision of the resolution
   41-2  calling for the creation of the proposed underground water
   41-3  conservation district subsequent to the public hearing, provided
   41-4  that the boundaries of the underground water conservation district
   41-5  may not be enlarged or expanded without further notice as herein
   41-6  provided.
   41-7        (d)  Notice of the public hearing shall be published in a
   41-8  newspaper of general circulation within the proposed underground
   41-9  water conservation district once not less than 15 nor more than 30
  41-10  days prior to the public hearing.
  41-11        (e)  All public hearings on creation of an underground water
  41-12  conservation district shall be held within the boundaries of the
  41-13  proposed underground water conservation district and may be held
  41-14  concurrently or in connection with any other public hearing,
  41-15  meeting, or proceeding conducted by the board.
  41-16        (f)  Any interested person, including persons residing or
  41-17  owning property within the district, may appear at the public
  41-18  hearing and present evidence relevant to the matters set forth in
  41-19  the resolution calling for the creation of the proposed underground
  41-20  water conservation district.  All persons residing within or owning
  41-21  property within the proposed underground water conservation
  41-22  district shall have the right to appear at the public hearing and
  41-23  present evidence with regard to whether they will receive benefits
  41-24  from the proposed improvements or taxation.
  41-25        (g)  The board shall review the findings and recommendations
   42-1  resulting from the public hearing and may adopt a resolution
   42-2  creating the underground water conservation district, stating the
   42-3  purposes for which the underground water conservation district has
   42-4  been created, designating the boundaries of the underground water
   42-5  conservation district, declaring that the indebtedness to be
   42-6  incurred or the cost of services to be rendered by the authority
   42-7  for the benefit of the underground water conservation district
   42-8  shall be payable from taxes levied on property within the
   42-9  underground water conservation district, finding that the property
  42-10  within the underground water conservation district will benefit
  42-11  from the indebtedness proposed to be incurred or the services
  42-12  proposed to be rendered by the authority on its behalf, and calling
  42-13  for an election within the underground water conservation district
  42-14  to authorize the indebtedness and the maintenance tax.  The
  42-15  resolution shall further state the date of the election, the
  42-16  proposition or propositions to be voted on, the location of the
  42-17  polling places, and the names of the officers of the election.  The
  42-18  election may be held in conjunction with a general election or any
  42-19  special election other than a primary election.  The provisions of
  42-20  the Election Code shall govern the election unless they are
  42-21  contrary to any provision of this Act.
  42-22        (h)  The resolution of the board creating an underground
  42-23  water conservation district is final and conclusive and is not
  42-24  subject to review by any court except on the basis of whether the
  42-25  resolution is supported by substantial evidence.  The resolution
   43-1  shall be filed in the deed records of the county or counties where
   43-2  the territory within the underground water conservation district is
   43-3  situated.  Any action or proceeding in which the validity of the
   43-4  board's resolution creating an underground water conservation
   43-5  district or of the proceedings relative thereto is contested,
   43-6  questioned, or denied shall be commenced within 30 days from the
   43-7  effective date of the resolution; otherwise, the resolution and all
   43-8  proceedings relative thereto, including the creation of the
   43-9  underground water conservation district, shall be held to be valid
  43-10  and in every respect legal and incontestable.
  43-11        Sec. 6.03.  BOUNDARIES AND ADDITION OF TERRITORY.  (a)  The
  43-12  boundaries of an underground water conservation district may
  43-13  include any territory within the district whether or not the
  43-14  territory contains noncontiguous parcels of land and whether or not
  43-15  the territory is located within the boundaries of any incorporated
  43-16  city, town, village, or any other governmental entity or political
  43-17  subdivision of the state.
  43-18        (b)  Proceedings for the annexation of territory to an
  43-19  existing underground water conservation district may be initiated
  43-20  by a resolution of the board, by a petition signed by the owners of
  43-21  50 percent or more of the value of the land subject to the
  43-22  proceedings, or by a petition signed by a majority of the residents
  43-23  of the territory to be annexed.  The petition shall, insofar as is
  43-24  practicable, set forth substantially those matters set forth in the
  43-25  resolution calling for the creation of an underground water
   44-1  conservation district and shall request a public hearing by the
   44-2  board on the matters set out in the petition.  The public hearing
   44-3  shall be held in substantial compliance with the provisions set
   44-4  forth herein for a public hearing on creation of an underground
   44-5  water conservation district.  If the board determines that the
   44-6  annexation should be accomplished, it may adopt a resolution
   44-7  calling separate elections on the matter of annexation to be held
   44-8  within the existing underground water conservation district and
   44-9  within the territory to be annexed.  The annexation shall not
  44-10  become final until approved by a majority of the qualified voters
  44-11  within the existing underground water conservation district and
  44-12  until a majority of the qualified voters within the boundaries of
  44-13  the territory to be annexed approve the annexation and elect to
  44-14  allow the territory to be annexed to be taxed for maintenance
  44-15  purposes, to assume its pro rata share of the indebtedness
  44-16  authorized and the taxes necessary to support the voted but
  44-17  unissued tax or tax and revenue bonds of the underground water
  44-18  conservation district to be issued on behalf of the existing
  44-19  underground water conservation district, and to authorize the
  44-20  underground water conservation district to levy a tax on the
  44-21  property therein for the payment of such unissued bonds when
  44-22  issued.  The elections shall conform to the Election Code, insofar
  44-23  as that code is not inconsistent with the provisions of this Act.
  44-24  The board's resolution canvassing the returns of such elections
  44-25  shall redefine the boundaries of the underground water conservation
   45-1  district and shall be recorded in the deed records of the county
   45-2  within which the annexed territory lies.
   45-3        (c)  Proceedings for the addition of territory to an existing
   45-4  underground water conservation district on which less than three
   45-5  qualified voters reside may be initiated by a petition signed by
   45-6  the owner or owners of the land praying that the land described
   45-7  therein be added and become a part of the underground water
   45-8  conservation district.  The petition shall, insofar as applicable,
   45-9  set forth  substantially those matters set forth in a resolution
  45-10  calling for the creation of an underground water conservation
  45-11  district and shall request a public hearing by the board on the
  45-12  matters set out in the petition.  The public hearing shall be held
  45-13  in substantial compliance with provisions set forth herein for a
  45-14  public hearing on creation of an underground water conservation
  45-15  district.  If the board determines that the addition should be
  45-16  accomplished, it may adopt a resolution adding such territory.  If
  45-17  taxes or bonds have been authorized within the underground water
  45-18  conservation district prior to the addition of the territory, the
  45-19  resolution adding the territory shall be temporary and the addition
  45-20  shall not become final until approved by a majority of the
  45-21  qualified voters within the underground water conservation district
  45-22  as it will exist after the addition.  The election shall be held as
  45-23  soon as practicable after the adoption of the resolution adding the
  45-24  territory, on the proposition of approving the addition, ratifying
  45-25  the unissued tax or tax and revenue bonds of the authority which
   46-1  are to be issued on behalf of the underground water conservation
   46-2  district, and authorizing the underground water conservation
   46-3  district to levy a tax on the property within the underground water
   46-4  conservation district as enlarged for payment of the unissued bonds
   46-5  when issued or for the maintenance of the underground water
   46-6  conservation district, or both, as applicable.  The election shall
   46-7  conform to the Election Code so far as that code is not
   46-8  inconsistent with the provisions of this Act.  The board's
   46-9  resolution canvassing the returns of the election or adding the
  46-10  territory shall redefine the boundaries of the underground water
  46-11  conservation district and shall be recorded in the deed records of
  46-12  the county within which the added territory lies.
  46-13        Sec. 6.04.  TAXATION.  (a)  If the qualified voters in the
  46-14  elections called pursuant to Section 6.02 or Section 6.03 of this
  46-15  Act authorize the underground water conservation district to incur
  46-16  indebtedness for the benefit of the authority, the authority shall
  46-17  have authority to issue bonds as provided in Article 5 of this Act,
  46-18  provided that taxes levied by the underground water conservation
  46-19  district for the purpose of making payments of the interest on or
  46-20  principal of the bonds shall be levied only on taxable property
  46-21  within the underground water conservation district.
  46-22        (b)  Notwithstanding any provision of this Act to the
  46-23  contrary, if the qualified voters in the elections called pursuant
  46-24  to Section 6.02 or Section 6.03 of this Act authorize the
  46-25  underground water conservation district to levy and collect ad
   47-1  valorem taxes for the maintenance of the authority and its
   47-2  improvements, the maintenance tax shall be levied only on taxable
   47-3  property within the underground water conservation district.
   47-4        Sec. 6.05.  BONDED INDEBTEDNESS.  An underground water
   47-5  conservation district may incur any and all indebtedness necessary
   47-6  to provide all improvements and the maintenance thereof, requisite
   47-7  to the achievement of the purposes for which the underground water
   47-8  conservation district is organized, and the underground water
   47-9  conservation district is authorized to levy and collect all taxes
  47-10  necessary for the payment of the interest on the indebtedness and
  47-11  the creation of a sinking fund for the payment thereof, and such
  47-12  taxes shall be a lien on the property assessed for the payment
  47-13  thereof.
  47-14        SECTION 2.  Section 11.028, Water Code, is amended to read as
  47-15  follows:
  47-16        Sec. 11.028.  EXCEPTION.  Any appropriation made after
  47-17  May 17, 1931, for any purpose other than domestic or municipal use
  47-18  is subject to the right of any city or town to make further
  47-19  appropriations of the water for domestic or municipal use <without
  47-20  paying for the water>.  However, this section does not apply to any
  47-21  stream which constitutes or defines the international boundary
  47-22  between the United States of America and the Republic of Mexico.
  47-23        SECTION 3.  Subsection (b), Section 52.022, Water Code, is
  47-24  amended to read as follows:
  47-25        (b)  The commission has exclusive jurisdiction over the
   48-1  delineation of management areas and the creation of districts under
   48-2  this subchapter except that the regional water management district
   48-3  known as the Edwards Water Authority has exclusive jurisdiction in
   48-4  the area served by that district.
   48-5        SECTION 4.  Chapter 99, Acts of the 56th Legislature, Regular
   48-6  Session, 1959 (Article 8280-219, Vernon's Texas Civil Statutes), is
   48-7  amended by adding Section 3A to read as follows:
   48-8        Sec. 3A.  The district is granted the powers of a district
   48-9  created and empowered under Chapter 52, Water Code.
  48-10        SECTION 5.  (a)  The creation of the Uvalde County
  48-11  Underground Water Conservation District and all resolutions,
  48-12  orders, and other acts or attempted acts of the board of directors
  48-13  of the district are validated in all respects.  The creation of the
  48-14  district and all resolutions, orders, and other acts or attempted
  48-15  acts of the board of directors of the district are valid as though
  48-16  they originally had been legally authorized or accomplished.
  48-17        (b)  This validation does not apply to or affect litigation
  48-18  pending on the effective date of this Act in any court of competent
  48-19  jurisdiction in this state to which the Uvalde County Underground
  48-20  Water Conservation District is a party.
  48-21        SECTION 6.  (a)  There is hereby created, pursuant to Article
  48-22  XVI, Section 59, of the Texas Constitution, a conservation and
  48-23  reclamation district to be known as the Kinney County Underground
  48-24  Water Conservation District, which shall be a governmental agency
  48-25  and body politic and corporate of the State of Texas.  The creation
   49-1  of the district is hereby determined to be essential to the
   49-2  accomplishment of the purposes of Article XVI, Section 59, of the
   49-3  Texas Constitution.  The powers, rights, and duties of a district
   49-4  created under Chapter 52, Water Code, are hereby declared to be the
   49-5  powers, rights, and duties of the Kinney County Underground Water
   49-6  Conservation District.
   49-7        (b)  The territory of the district is Kinney County.
   49-8        (c)  A confirmation election under the provisions of Chapter
   49-9  52, Water Code, is necessary.
  49-10        SECTION 7.  (a)  The Edwards Water Authority will submit its
  49-11  water management plan to the Legislative Natural Resources Board
  49-12  for review each year.  The Texas Water Development Board will
  49-13  submit its comments on the water management plan to the legislature
  49-14  annually noting its exceptions and providing technical analysis of
  49-15  the plan's effectiveness.
  49-16        (b)  The Edwards Water Authority and the water districts
  49-17  within the territory of the authority are subject to a full review
  49-18  of the effectiveness of the management of water resources in the
  49-19  territory of the authority beginning in 1999.  The review will be
  49-20  conducted by the Legislative Natural Resources Board and its formal
  49-21  report made to the legislature in 2001.
  49-22        SECTION 8.  The sum of $250,000 is appropriated to the
  49-23  Edwards Water Authority from the water assistance fund administered
  49-24  by the Texas Water Development Board for the initial startup costs
  49-25  of the authority.
   50-1        SECTION 9.  (a)  The proper and legal notice of the intention
   50-2  to introduce this Act, setting forth the general substance of this
   50-3  Act, has been published as provided by law, and the notice and a
   50-4  copy of this Act have been furnished to all persons, agencies,
   50-5  officials, or entities to which they are required to be furnished
   50-6  by the constitution and other laws of this state, including the
   50-7  governor, who has submitted the notice and Act to the Texas Water
   50-8  Commission.
   50-9        (b)  The Texas Water Commission has filed its recommendations
  50-10  relating to this Act with the governor, lieutenant governor, and
  50-11  speaker of the house of representatives within the required time.
  50-12        (c)  All requirements of the Texas Constitution and laws of
  50-13  this state and the rules and procedures of the legislature with
  50-14  respect to the notice, introduction, and passage of this Act are
  50-15  fulfilled and accomplished.
  50-16        SECTION 10.  This Act takes effect September 1, 1993.
  50-17        SECTION 11.  The importance of this legislation and the
  50-18  crowded condition of the calendars in both houses create an
  50-19  emergency and an imperative public necessity that the
  50-20  constitutional rule requiring bills to be read on three several
  50-21  days in each house be suspended, and this rule is hereby suspended.