By: Armbrister, et al. S.B. No. 1477 A BILL TO BE ENTITLED AN ACT 1-1 relating to the creation, administration, powers, duties, 1-2 operation, and financing of the Edwards Aquifer Authority and the 1-3 management of the Edwards Aquifer; granting the power of eminent 1-4 domain; authorizing the issuance of bonds; providing civil and 1-5 criminal penalties; and validating the creation of the Uvalde 1-6 County Underground Water Conservation District. 1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-8 ARTICLE 1 1-9 SECTION 1.01. FINDINGS AND DECLARATION OF POLICY. The 1-10 legislature finds that the Edwards Aquifer is a unique and complex 1-11 hydrological system, with diverse economic and social interests 1-12 dependent on the aquifer for water supply. In keeping with that 1-13 finding, the Edwards Aquifer is declared to be a distinctive 1-14 natural resource in this state, a unique aquifer, and not an 1-15 underground stream. To sustain these diverse interests and that 1-16 natural resource, a special regional management district is 1-17 required for the effective control of the resource to protect 1-18 terrestrial and aquatic life, domestic and municipal water 1-19 supplies, the operation of existing industries, and the economic 1-20 development of the state. Use of water in the district for 1-21 beneficial purposes requires that all reasonable measures be taken 1-22 to be conservative in water use. 1-23 SECTION 1.02. Creation. (a) A conservation and reclamation 1-24 district, to be known as the Edwards Aquifer Authority, is created 2-1 in all or part of Atascosa, Bexar, Caldwell, Comal, Guadalupe, 2-2 Hays, Medina, and Uvalde counties. A confirmation election is not 2-3 necessary. The authority is a governmental agency and a body 2-4 politic and corporate. 2-5 (b) The authority is created under and is essential to 2-6 accomplish the purposes of Article XVI, Section 59, of the Texas 2-7 Constitution. 2-8 SECTION 1.03. DEFINITIONS. In this article: 2-9 (1) "Aquifer" means the Edwards Aquifer, which is that 2-10 portion of an arcuate belt of porous, water-bearing, predominately 2-11 carbonate rocks known as the Edwards and Associated Limestones in 2-12 the Balcones Fault Zone extending from west to east to northeast 2-13 from the hydrologic division near Brackettville in Kinney County 2-14 that separates underground flow toward the Comal Springs and San 2-15 Marcos Springs from underground flow to the Rio Grande Basin, 2-16 through Uvalde, Medina, Atascosa, Bexar, Guadalupe, and Comal 2-17 counties, and in Hays County south of the hydrologic division near 2-18 Kyle that separates flow toward the San Marcos River from flow to 2-19 the Colorado River Basin. 2-20 (2) "Authority" means the Edwards Aquifer Authority. 2-21 (3) "Beneficial use" means the use of the amount of 2-22 water that is reasonable and necessary for a lawful purpose, if 2-23 reasonable intelligence and reasonable diligence are used in 2-24 applying the water to that purpose. 2-25 (4) "Board" means the board of directors of the 2-26 authority. 2-27 (5) "Commission" means the Texas Natural Resource 3-1 Conservation Commission. 3-2 (6) "Conservation" means any measure that would 3-3 sustain or enhance water supply. 3-4 (7) "Domestic use" means use of water by a person 3-5 owning the well from which the water is withdrawn and that person's 3-6 household for: 3-7 (A) drinking, washing, or culinary purposes; 3-8 (B) irrigation of lawns; 3-9 (C) irrigation of a family garden or orchard the 3-10 produce of which is for household consumption only; and 3-11 (D) watering of domestic animals not raised, 3-12 maintained, or sold for commercial purposes. 3-13 (8) "Existing user" means a person who has withdrawn 3-14 and beneficially used underground water from the aquifer on or 3-15 before June 1, 1993. 3-16 (9) "Industrial use" means the use of water for or in 3-17 connection with commercial or industrial activities, including 3-18 manufacturing, commercial feedlot operations, commercial fish 3-19 production, bottling, brewing, food processing, scientific research 3-20 and technology, recycling, production of concrete, asphalt, and 3-21 cement, cooling-tower heat exchange, commercial uses of water for 3-22 tourism, entertainment, and hotel or motel lodging, generation of 3-23 power other than hydroelectric, and other business activities. 3-24 (10) "Irrigation use" means the use of water for the 3-25 irrigation of pastures and commercial crops, including orchards. 3-26 (11) "Livestock" means animals, beasts, or poultry 3-27 collected or raised for pleasure, recreational use, or commercial 4-1 use. 4-2 (12) "Municipal use" means the use of water within or 4-3 outside of a municipality and its environs whether supplied by a 4-4 person, privately owned utility, political subdivision, or other 4-5 entity, including the use of treated effluent for certain purposes 4-6 specified as follows. The term includes: 4-7 (A) the use of water for domestic use, the 4-8 watering of lawns and family gardens, fighting fires, sprinkling 4-9 streets, flushing sewers and drains, water parks and parkways, and 4-10 recreation, including public and private swimming pools; 4-11 (B) the use of water in industrial and 4-12 commercial enterprises supplied by a municipal distribution system 4-13 without special construction to meet its demands; and 4-14 (C) the application of treated effluent on land 4-15 under a permit issued under Chapter 26, Water Code, if: 4-16 (i) the primary purpose of the application 4-17 is the treatment or necessary disposal of the effluent; 4-18 (ii) the application site is a park, 4-19 parkway, golf course, or other landscaped area within the 4-20 authority's boundaries; or 4-21 (iii) the effluent applied to the site is 4-22 generated within an area for which the commission has adopted a 4-23 rule that prohibits the discharge of the effluent. 4-24 (13) "Person" means an individual, corporation, 4-25 organization, government or governmental subdivision or agency, 4-26 business trust, estate, trust, partnership, association, and any 4-27 other legal entity. 5-1 (14) "Pollution" means the alteration of the physical, 5-2 thermal, chemical, or biological quality of any water in the state, 5-3 or the contamination of any water in the state, that renders the 5-4 water harmful, detrimental, or injurious to humans, animal life, 5-5 vegetation, property, or public health, safety, or welfare or that 5-6 impairs the usefulness of the public enjoyment of the water for any 5-7 lawful or reasonable purpose. 5-8 (15) "Reuse" means authorized use for one or more 5-9 beneficial purposes of use of water that remains unconsumed after 5-10 the water is used for the original purpose of use and before the 5-11 water is discharged or otherwise allowed to flow into a 5-12 watercourse, lake, or other body of state-owned water. 5-13 (16) "Underground water" has the meaning assigned by 5-14 Section 52.001, Water Code. 5-15 (17) "Waste" means: 5-16 (A) withdrawal of underground water from the 5-17 aquifer at a rate and in an amount that causes or threatens to 5-18 cause intrusion into the reservoir of water unsuitable for 5-19 agricultural, gardening, domestic, or stock raising purposes; 5-20 (B) the flowing or producing of wells from the 5-21 aquifer if the water produced is not used for a beneficial purpose; 5-22 (C) escape of underground water from the aquifer 5-23 to any other reservoir that does not contain underground water; 5-24 (D) pollution or harmful alteration of 5-25 underground water in the aquifer by salt water or other deleterious 5-26 matter admitted from another stratum or from the surface of the 5-27 ground; 6-1 (E) wilfully or negligently causing, suffering, 6-2 or permitting underground water from the aquifer to escape into any 6-3 river, creek, natural watercourse, depression, lake, reservoir, 6-4 drain, sewer, street, highway, road, or road ditch, or onto any 6-5 land other than that of the owner of the well; or 6-6 (F) underground water pumped from the aquifer 6-7 for irrigation that escapes as irrigation tailwater onto land other 6-8 than that of the owner of the well unless permission has been 6-9 granted by the occupant of the land receiving the discharge. 6-10 (18) "Well" means a bored, drilled, or driven shaft or 6-11 an artificial opening in the ground made by digging, jetting, or 6-12 some other method where the depth of the shaft or opening is 6-13 greater than its largest surface dimension, but does not include a 6-14 surface pit, surface excavation, or natural depression. 6-15 (19) "Well J-17" means state well number AY-68-37-203 6-16 located in Bexar County. 6-17 (20) "Well J-27" means state well number YP-69-50-302 6-18 located in Uvalde County. 6-19 (21) "Withdrawal" means an act or a failure to act 6-20 that results in taking water from the aquifer by or through 6-21 man-made facilities, including pumping, withdrawing, or diverting 6-22 underground water. 6-23 SECTION 1.04. BOUNDARIES. The authority includes the 6-24 territory contained within the following area: 6-25 (1) all of the areas of Bexar, Medina, and Uvalde 6-26 counties; 6-27 (2) all of the area of Comal County, except that 7-1 portion of the county that lies North of the North line through the 7-2 county of Subdivision No. 1 of the Underground Water Reservoir in 7-3 the Edwards Limestone, Balcones escarpment area, as defined by the 7-4 order of the Board of Water Engineers dated January 10, 1957; 7-5 (3) the part of Caldwell County beginning with the 7-6 intersection of Hays County Road 266 and the San Marcos River; 7-7 THENCE southeast along the San Marcos River to the point of 7-8 intersection of Caldwell, Guadalupe, and Gonzales counties; 7-9 THENCE southeast along the Caldwell-Gonzales County line to 7-10 its intersection with U.S. Highway 183; 7-11 THENCE north along U.S. Highway 183 to its intersection with 7-12 State Highway 21; 7-13 THENCE southwest along State Highway 21 to its intersection 7-14 with Hays County Road 266; 7-15 THENCE southwest along Hays County Road 266 to the place of 7-16 beginning; 7-17 (4) the part of Hays County beginning on the northwest 7-18 line of the R. B. Moore Survey, Abstract 412, in Comal County where 7-19 it crosses the Comal County-Hays County line northeast along the 7-20 northwest line of said Survey to the northeast corner of said 7-21 Survey in Hays County, Texas; 7-22 THENCE southeast in Hays County, Texas across the Jas. 7-23 Deloach Survey, Abstract 878, to the most westerly northwest corner 7-24 of the Presidio Irrigation Co. Survey, Abstract 583; 7-25 THENCE northeast along the northwest line of said Survey to 7-26 its most northerly northwest corner; 7-27 THENCE continuing in the same line across the R.S. Clayton 8-1 Survey 2, Block 742, to the west line of the H. & G. N. RR. Co. 8-2 Survey 1, Abstract 668; 8-3 THENCE north along the west line of said Survey to its 8-4 northwest corner; 8-5 THENCE east along the north line of said Survey to its 8-6 northeast corner; 8-7 THENCE northeast across the David Wilson Survey 83, Abstract 8-8 476, to the southeast corner of the F. W. Robertson Survey 71, 8-9 Abstract 385; 8-10 THENCE north along the east line of said Survey to the 8-11 southwest corner of the Benjamin Weed Survey 72, Abstract 483; 8-12 THENCE east along the south line of said Survey to its 8-13 southeast corner; 8-14 THENCE northeast across the William Gray Survey 73, Abstract 8-15 92, and the Murray Bailey Survey 75, Abstract 42, to the southwest 8-16 corner of the D.Holderman Survey 33, Abstract 225; 8-17 THENCE north along the west line of said Survey to its 8-18 northwest corner; 8-19 THENCE continuing in the same line to the north line of the 8-20 Day Land & Cattle Co. Survey 672; 8-21 THENCE west along said north line of said Survey to its 8-22 northwest corner, which is in the east line of the Jesse Williams 8-23 Survey 4 to the northeast corner of said Survey; 8-24 THENCE west along the north line of said Survey to the 8-25 Southwest corner of the Amos Singleton Survey 106, Abstract 410; 8-26 THENCE north along the west lines of said Amos Singleton 8-27 Survey 106 and the Watkins Nobles Survey 107, Abstract 346, to the 9-1 northwest corner of said Watkins Nobles Survey 107; 9-2 THENCE east along the north line of said Survey to the 9-3 southwest corner of the Jesusa Perez Survey 14, Abstract 363; 9-4 THENCE north along the west line of said Jesusa Perez Survey 9-5 14 to its northwest corner; 9-6 THENCE east along the north line of said Survey to its 9-7 northeast corner; 9-8 THENCE, south along the east line of said Survey for a 9-9 distance of approximately 10,000 feet to its intersection with 9-10 Ranch Road 150; 9-11 THENCE, east by southeast along Ranch Road 150 approximately 9-12 24,500 feet to its intersection with the southern boundary line of 9-13 the Andrew Dunn Survey 9, Abstract 4; 9-14 THENCE, east along the south line of said survey as it 9-15 extends and becomes the southern boundary line of the Morton M. 9-16 McCarver Survey 4, Abstract 10, for a distance of approximately 9-17 7,000 feet to its intersection with Ranch Road 2770; 9-18 THENCE, south on Ranch Road 2770 for a distance of 9-19 approximately 400 feet to its intersection with Farm-to-Market Road 9-20 171; 9-21 THENCE, east along Farm-to-Market Road 171 for a distance of 9-22 approximately 10,500 feet to its intersection with Farm-to-Market 9-23 Road 25; 9-24 THENCE, north by northeast along Farm-to-Market Road 25 for a 9-25 distance of approximately 3,100 feet to its intersection with 9-26 Farm-to-Market Road 131; 9-27 THENCE, east by southeast along Farm-to-Market Road 131 for a 10-1 distance of approximately 3,000 feet to its intersection with the 10-2 east line of the Thomas G. Allen Survey, Abstract 26; 10-3 THENCE south along the east line of said Thomas G. Allen 10-4 Survey to the most northerly northwest corner of the Elisha Pruett 10-5 Survey 23, Abstract 376; 10-6 THENCE southwest along a west line of said Elisha Pruett 10-7 Survey 23 to the west corner of said Survey; 10-8 THENCE southeast along the southwest line of said Survey to 10-9 the north corner of the John Stewart Survey, Abstract 14; 10-10 THENCE southwest along the northwest line of said John 10-11 Stewart Survey to its west corner; 10-12 THENCE continuing in the same line to the most northerly 10-13 southwest line of the John Jones Survey, Abstract 263; 10-14 THENCE southeast along said southwest line to an interior 10-15 corner of said John Jones Survey; 10-16 THENCE southwest along the most southerly northwest line of 10-17 said Survey to the southwest corner of said Survey; 10-18 THENCE southeast along the south line of said Survey to the 10-19 north corner of the James W. Williams Survey 11, Abstract 473; 10-20 THENCE southwest along the northwest line of said James W. 10-21 Williams Survey 11 to its west corner; 10-22 THENCE southeast along the southwest line of said Survey to 10-23 the north right-of-way line of the I. & G. N. RR.; 10-24 THENCE southwest along said right-of-way of said I. & G. N. 10-25 RR. to the Hays County-Comal County line; 10-26 THENCE south along said county line to the northwest line of 10-27 the R. B. Moore Survey, Abstract 412, in Hays County where it 11-1 crosses the Hays County-Comal County line; 11-2 (5) all of the territory of Hays County contained 11-3 within the following described area: 11-4 Beginning on the most southern point of Hays County at the 11-5 intersection of Hays, Comal, and Guadalupe Counties; then 11-6 continuing in a northeasterly direction along the Hays-Guadalupe 11-7 county line to its intersection with the Hays-Caldwell county line; 11-8 then continuing along the Hays-Caldwell county line to an 11-9 intersection with Farm-to-Market Road 150; then continuing in a 11-10 northwesterly direction along Farm-to-Market Road 150 to the 11-11 intersection with the existing southern boundary of the part of 11-12 Hays County described in Subdivision (3) of this section; then 11-13 continuing in a southwesterly direction along the existing southern 11-14 boundary of the part of Hays County described in Subdivision (3) of 11-15 this section to the intersection with the Hays-Comal county line; 11-16 then continuing in a southerly direction along the Hays-Comal 11-17 county line to the point of beginning; 11-18 (6) the part of Guadalupe County beginning at the 11-19 Guadalupe County-Caldwell County-Hays County line at the San Marcos 11-20 River in the northeast corner of Guadalupe County, Texas. 11-21 THENCE southwest along the Guadalupe County-Hays County line 11-22 to the intersect of the Guadalupe County-Hays County-Comal County 11-23 line. 11-24 THENCE southwest along the Guadalupe County-Comal County line 11-25 to the intersect of the Guadalupe County-Comal County-Bexar County 11-26 intersect at the Cibolo creek. 11-27 THENCE south along the Guadalupe County-Bexar County line 12-1 along the Cibolo creek to the intersect of the Guadalupe 12-2 County-Bexar County-Wilson County line. 12-3 THENCE south along the Guadalupe County-Wilson County line 12-4 along the Cibolo creek to the intersect and crossing of Guadalupe 12-5 County Road 417. 12-6 THENCE east along Guadalupe County Road 417 to the intersect 12-7 of Guadalupe County Road 417 and Guadalupe County Road 412. 12-8 THENCE northeast along Guadalupe County Road 412 to the 12-9 intersect of Guadalupe County Road 412 and Guadalupe County Road 12-10 411 A. 12-11 THENCE east along Guadalupe County Road 411 A to the 12-12 intersect of Guadalupe County Road 411 A and Farm-to-Market road 12-13 number 725. 12-14 THENCE north along Farm to Market Road 725 to the intersect 12-15 of Farm to Market Road 725 and Interstate Highway 10. 12-16 THENCE east along Interstate Highway 10 to the intersect of 12-17 Interstate Highway 10 and State Highway 90. 12-18 THENCE east along State Highway 90 to the Guadalupe 12-19 County-Caldwell County line at the San Marcos river. 12-20 THENCE northwest along the Guadalupe County-Caldwell County 12-21 line along the San Marcos river to the place of beginning; and 12-22 (7) the part of Atascosa County beginning on the north 12-23 line of the Robt. C. Rogers Survey, at the Bexar County-Atascosa 12-24 County line, to its northwest corner, which is the northeast corner 12-25 of the F. Brockinzen Survey, Abstract 86; 12-26 THENCE south along the east line of said Survey passing 12-27 through its southeast corner and continuing south along the east 13-1 line of the F. Brockinzen Survey, Abstract 90, to its southeast 13-2 corner; 13-3 THENCE west along the south line of said survey to its 13-4 southwest corner; 13-5 THENCE north along the west line of said F. Brockinzen Survey 13-6 to the southeast corner of the B. Bonngartner Survey, Abstract 87; 13-7 THENCE west along the south line of said B. Bonngartner 13-8 Survey passing through its southwest corner and continuing along 13-9 the south line of the J. B. Goettlemann Survey, Abstract 309, to 13-10 the Atascosa County-Medina County line; 13-11 THENCE north along the Atascosa County-Medina County line to 13-12 the Bexar County line; 13-13 THENCE east along the Atascosa County-Bexar County Line to 13-14 the place of beginning. 13-15 SECTION 1.05. FINDINGS RELATING TO BOUNDARIES. The 13-16 legislature finds that the boundaries and field notes of the 13-17 authority form a closure. A mistake in the field notes or in 13-18 copying the field notes in the legislative process does not affect 13-19 the organization, existence, or validity of the district or the 13-20 legality or operation of the district or its governing body. 13-21 SECTION 1.06. FINDING OF BENEFIT. (a) The legislature 13-22 finds that the water in the unique underground system of 13-23 water-bearing formations known as the Edwards-Balcones Fault Zone 13-24 Aquifer has a hydrologic interrelationship to the Guadalupe, San 13-25 Antonio, San Marcos, Comal, Frio, and Nueces river basins, is the 13-26 primary source of water for the residents of the region, and is 13-27 vital to the general economy and welfare of this state. The 14-1 continuous and sustained withdrawal of underground water from the 14-2 aquifer at the rates between 1982 and 1993 or greater rates may 14-3 result in damage to the aquifer, the Comal and San Marcos springs, 14-4 and the general economy and welfare of this state. Before the 14-5 effective date of this Act there was no effective, consistent, or 14-6 comprehensive regulation of the withdrawal and use of underground 14-7 water from the aquifer and the withdrawal and use of that 14-8 underground water will continue to increase unless effective 14-9 management is implemented. The legislature finds that it is 14-10 necessary and appropriate and a benefit to the welfare of this 14-11 state to provide for the recognition and management of rights to 14-12 withdraw underground water from the aquifer through the application 14-13 of management mechanisms appropriate to that unique system. 14-14 (b) The legislature further finds that all of the land and 14-15 other property included within the boundaries of the authority will 14-16 be benefitted by exercise of the powers of the authority and by the 14-17 works and projects that are to be accomplished by the authority 14-18 under powers conferred by Article XVI, Section 59, of the Texas 14-19 Constitution. The authority is created to serve a public use and 14-20 benefit. 14-21 SECTION 1.07. COMPENSATION FOR PROPERTY. The legislature 14-22 intends that just compensation be paid in the event that 14-23 implementation of this article causes a taking of private property 14-24 or results in the impairment of a contract in contravention of the 14-25 Texas or federal constitution. 14-26 SECTION 1.08. GENERAL POWERS. (a) The authority has all of 14-27 the powers, rights, and privileges necessary to manage, conserve, 15-1 preserve, and protect the aquifer and to increase the recharge of, 15-2 and prevent the waste or pollution of water in, the aquifer. The 15-3 authority has all of the rights, powers, privileges, authority, 15-4 functions, and duties provided by the general law of this state, 15-5 including Chapters 50 and 52, Water Code, applicable to an 15-6 authority created under Article XVI, Section 59, of the Texas 15-7 Constitution. This article prevails over any provision of general 15-8 law that is in conflict or inconsistent with this article regarding 15-9 the area of the authority's jurisdiction. 15-10 (b) The authority's powers regarding underground water apply 15-11 only to underground water within or withdrawn from the aquifer. 15-12 (c) The rights, powers, privileges, authority, functions, 15-13 and duties of the authority are subject to the continuing right of 15-14 supervision of the state to be exercised by and through the 15-15 commission. 15-16 SECTION 1.09. BOARD OF DIRECTORS. (a) The authority is 15-17 governed by a board of nine directors. 15-18 (b) A board member must be a resident of or qualified voter 15-19 in a county all or part of which is included within the boundaries 15-20 of the authority. 15-21 (c) The board consists of: 15-22 (1) three residents of Bexar County, with two 15-23 residents appointed by the governing body of the City of San 15-24 Antonio and one resident appointed by the Commissioners Court of 15-25 Bexar County to represent cities and communities in the county 15-26 other than the City of San Antonio; 15-27 (2) one resident of Comal County or the City of New 16-1 Braunfels appointed by the Commissioners Court of Comal County; 16-2 (3) one resident of Hays County appointed by the 16-3 governing body of the City of San Marcos; 16-4 (4) one resident of Medina County appointed by the 16-5 governing body of the Medina Underground Water Conservation 16-6 District; 16-7 (5) one resident of Uvalde County appointed by the 16-8 governing body of the Uvalde Underground Water Conservation 16-9 District; 16-10 (6) one person appointed by the Commissioners Court of 16-11 Bexar County who is an active operator engaged in irrigated 16-12 agriculture to alternate terms with a resident of Atascosa County 16-13 appointed by the governing body of the Evergreen Underground Water 16-14 Conservation District, with the person appointed by the Evergreen 16-15 Underground Water Conservation District serving the first term; and 16-16 (7) one person appointed in rotation by the 16-17 Commissioners Court of Guadalupe, Hays, or Comal County, with a 16-18 person appointed by the Commissioners Court of Guadalupe County to 16-19 serve the first term, followed by a person appointed by the 16-20 Commissioners Court of Hays County to serve the second term, 16-21 followed by a person appointed by the Commissioners Court of Comal 16-22 County to serve the third term, and rotating in that order of 16-23 appointment for subsequent terms. 16-24 (d) The Commissioners Court of Bexar County and the 16-25 governing body of the City of San Antonio must make appointments 16-26 under Subsection (c) of this section that accurately reflect the 16-27 ethnic composition of the population of Bexar County. 17-1 (e) The initial directors of the board shall draw lots to 17-2 determine their terms. Four initial directors serve terms that 17-3 expire June 1, 1995. Five initial directors serve terms that 17-4 expire June 1, 1997. Subsequent directors shall be appointed to 17-5 serve staggered four-year terms, the appropriate number of which 17-6 expire June 1 of each odd-numbered year. 17-7 (f) At the initial meeting of the board, the members shall 17-8 select one member to serve as presiding officer. The presiding 17-9 officer serves a term set by rule of the board not to exceed four 17-10 years. 17-11 (g) An act of the board is not valid unless adopted by the 17-12 affirmative vote of a majority of the members of the board. 17-13 (h) Board members receive no compensation for service on the 17-14 board but are entitled to reimbursement for actual and necessary 17-15 expenses incurred in the performance of their duties. 17-16 (i) Board members shall hold office until a successor has 17-17 been selected and approved and has qualified by taking the oath of 17-18 office. 17-19 (j) If a vacancy on the board occurs, the governing body 17-20 that appointed the vacating member shall appoint another person 17-21 having the same qualifications required of the vacating member to 17-22 serve the unexpired portion of the vacating member's term. 17-23 SECTION 1.10. AREA REPRESENTATIVES. (a) The commissioners 17-24 court of each of the following counties shall appoint an area 17-25 representative: 17-26 (1) Atascosa; 17-27 (2) Comal; 18-1 (3) Guadalupe; 18-2 (4) Hays; 18-3 (5) Medina; and 18-4 (6) Uvalde. 18-5 (b) The governing body of the City of San Antonio shall 18-6 appoint an area representative for Bexar County. 18-7 (c) If an underground water conservation district has been 18-8 created in a county: 18-9 (1) the general manager of the district serves as the 18-10 area representative for the county; and 18-11 (2) the commissioners court of the county, or the 18-12 governing body of the City of San Antonio in the case of Bexar 18-13 County, may not appoint a representative for the county. 18-14 (d) An area representative appointed by a commissioners 18-15 court or other governing body under Subsection (a) or (b) of this 18-16 section serves at the pleasure of the court or body that appointed 18-17 the representative. 18-18 (e) An area representative's duties include: 18-19 (1) assisting the authority in developing the 18-20 authority's demand management plan for the county that the 18-21 representative represents; 18-22 (2) assisting the authority to implement the demand 18-23 management plan; and 18-24 (3) performing other duties requested by the board 18-25 that the representative may practicably perform. 18-26 SECTION 1.11. ADVISORY COMMITTEE ON DOWNSTREAM WATER RIGHTS 18-27 AND ISSUES. (a) The Edwards Aquifer Area Advisory Committee shall 19-1 advise the board on downstream water rights and issues. The 19-2 advisory committee consists of members appointed in accordance with 19-3 Subsection (b) of this section and one member appointed by the 19-4 commissioners court of each of the following counties, except that 19-5 Atascosa and Guadalupe counties may not have a representative on 19-6 the advisory committee when the county has a representative member 19-7 on the board: 19-8 (1) Atascosa; 19-9 (2) Caldwell; 19-10 (3) Calhoun; 19-11 (4) DeWitt; 19-12 (5) Goliad; 19-13 (6) Gonzales; 19-14 (7) Guadalupe; 19-15 (8) Karnes; 19-16 (9) Nueces; 19-17 (10) Refugio; 19-18 (11) San Patricio; 19-19 (12) Victoria; and 19-20 (13) Wilson. 19-21 (b) The governing body of each municipality that is in a 19-22 county listed in Subsection (a) of this section and has a 19-23 population of more than 50,000 may also appoint a member to the 19-24 advisory committee. 19-25 (c) A member must be a resident or qualified voter of or 19-26 engaged in business in a county all or part of which is included in 19-27 the member's area of representation. 20-1 (d) The reimbursement of an advisory committee member for 20-2 expenses is on the same terms as the reimbursement of board 20-3 members. An advisory committee member is not entitled to 20-4 compensation. 20-5 (e) An advisory committee member holds office until a 20-6 successor is appointed. 20-7 (f) The authority shall send to each advisory committee 20-8 member all the communications of the authority that are extended to 20-9 board members and may participate in board meetings to represent 20-10 downstream water supply concerns and assist in solutions to those 20-11 concerns. Advisory committee members may not vote on a board 20-12 decision. 20-13 (g) The advisory committee by resolution may request the 20-14 board to reconsider any board action that is considered 20-15 prejudicial to downstream water interests. If the board review 20-16 does not result in a resolution satisfactory to the advisory 20-17 committee, the advisory committee by resolution may request the 20-18 commission to review the action. The commission shall review the 20-19 action and may make a recommendation to the board. 20-20 (h) The advisory committee shall meet to organize and elect 20-21 a presiding officer. 20-22 (i) The presiding officer of the advisory committee shall 20-23 submit a report assessing the effectiveness of the authority to the 20-24 commission and the authority by March 31 of each even-numbered 20-25 year. The report must assess the effect on downstream water rights 20-26 of the management of the aquifer. The authority shall consider the 20-27 report in managing the authority's affairs. 21-1 SECTION 1.12. GENERAL POWERS AND DUTIES OF THE BOARD AND 21-2 AUTHORITY. (a) The board shall adopt rules necessary to carry out 21-3 the authority's powers and duties under this article, including 21-4 rules governing procedures of the board and authority. 21-5 (b) The authority shall ensure compliance with permitting, 21-6 metering, and reporting requirements and shall regulate permits. 21-7 (c) The authority may issue orders to enforce this article 21-8 or its rules. 21-9 (d) The authority may: 21-10 (1) issue or administer grants, loans, or other 21-11 financial assistance to water users for water conservation and 21-12 water reuse; 21-13 (2) enter into contracts; 21-14 (3) sue and be sued in its own name; 21-15 (4) receive gifts, grants, awards, and loans for use 21-16 in carrying out its powers and duties; 21-17 (5) hire an executive director to be the chief 21-18 administrator of the authority and other employees as necessary to 21-19 carry out its powers and duties; 21-20 (6) delegate the power to hire employees to the 21-21 executive director of the authority; 21-22 (7) own real and personal property; 21-23 (8) close abandoned, wasteful, or dangerous wells; 21-24 (9) hold permits under state law or under federal law 21-25 pertaining to the Endangered Species Act of 1973 (16 U.S.C. Section 21-26 1531 et seq.) and its amendments; 21-27 (10) enforce Chapter 32, Water Code, and commission 22-1 rules adopted under that Act within the authority's boundaries; and 22-2 (11) require to be furnished to the authority water 22-3 well drillers' logs that are required by Chapter 32, Water Code, to 22-4 be kept and furnished to the commission. 22-5 (e) The authority may contract with a person who uses water 22-6 from the aquifer for the authority or that person to construct, 22-7 operate, own, finance, and maintain water supply facilities. 22-8 Management fees or special fees may not be used for purchasing or 22-9 operating these facilities. For the purpose of this subsection, 22-10 "water supply facility" includes a dam, reservoir, treatment 22-11 facility, transmission facility, or recharge project. 22-12 (f) The authority has the power of eminent domain. The 22-13 authority may not acquire rights to underground water by the power 22-14 of eminent domain. 22-15 (g) The authority is subject to the open meetings law, 22-16 Chapter 271, Acts of the 60th Legislature, Regular Session, 1967 22-17 (Article 6252-17, Vernon's Texas Civil Statutes), the open records 22-18 law, Chapter 424, Acts of the 63rd Legislature, Regular Session, 22-19 1973 (Article 6252-17a, Vernon's Texas Civil Statutes), and the 22-20 Administrative Procedure and Texas Register Act (Article 6252-13a, 22-21 Vernon's Texas Civil Statutes), and their subsequent amendments. 22-22 SECTION 1.13. SUNSET COMMISSION REVIEW. (a) The board is 22-23 subject to review under the Texas Sunset Act (Chapter 325, 22-24 Government Code) and its subsequent amendments but may not be 22-25 abolished under that Act. The review shall be conducted as if the 22-26 board were scheduled to be abolished September 1, 2005. 22-27 (b) Unless members of the board are continued in office 23-1 after the review, their membership expires September 1, 2005. 23-2 (c) When the membership of the board of directors expires 23-3 under Subsection (b) of this section, a new board of directors 23-4 shall be appointed as provided by this article, with each new 23-5 member serving for the unexpired term of the member's predecessor. 23-6 A member whose membership has expired under Subsection (b) is not 23-7 eligible for reappointment under this subsection. 23-8 SECTION 1.14. WATER QUALITY. The authority has the powers 23-9 provided a local government under Subchapters D and E, Chapter 26, 23-10 Water Code, to prevent pollution and enforce water quality 23-11 standards within the authority's boundaries and in a buffer zone 23-12 that includes all of the area less than 10 miles outside of the 23-13 authority's boundaries. 23-14 SECTION 1.15. WITHDRAWALS. (a) Authorizations to withdraw 23-15 water from the aquifer and all authorizations and rights to make a 23-16 withdrawal under this Act shall be limited in accordance with this 23-17 section to: 23-18 (1) protect the water quality of the aquifer; 23-19 (2) protect the water quality of the surface streams 23-20 to which the aquifer provides springflow; 23-21 (3) achieve water conservation; 23-22 (4) maximize the beneficial use of water available for 23-23 withdrawal from the aquifer; 23-24 (5) protect aquatic and wildlife habitat; 23-25 (6) protect species that are designated as threatened 23-26 or endangered under applicable federal or state law; and 23-27 (7) provide for instream uses, bays, and estuaries. 24-1 (b) Except as provided by Subsections (d), (e), and (g) of 24-2 this section and Section 1.27 of this article, for the period 24-3 ending December 31, 2007, the amount of permitted withdrawals from 24-4 the aquifer may not exceed 450,000 acre-feet of water for each 24-5 calendar year. 24-6 (c) Except as provided by Subsections (d), (e), and (g) of 24-7 this section and Section 1.27 of this article, for the period 24-8 beginning January 1, 2008, the amount of permitted withdrawals from 24-9 the aquifer may not exceed 400,000 acre-feet of water for each 24-10 calendar year. 24-11 (d) If, through studies and, if necessary, implementation of 24-12 water management strategies, including springflow augmentation, 24-13 diversions downstream of the springs, supplemental recharge, and 24-14 conjunctive management of surface and subsurface water, the 24-15 authority determines that additional supplies are available from 24-16 the aquifer or that the available supply is reduced, the authority, 24-17 in consultation with appropriate state and federal agencies, may 24-18 review and may increase or decrease the maximum amount of permitted 24-19 withdrawals provided by this section and set a different maximum 24-20 amount of permitted withdrawals. 24-21 (e) If the level of the aquifer is equal to or greater than 24-22 665 feet above mean sea level as measured at Well J-17, the 24-23 authority may authorize withdrawal from the San Antonio pool, on an 24-24 interruptible basis, of additional amounts above the withdrawal 24-25 limitations imposed in accordance with this section. If the 24-26 level of the aquifer is equal to or greater than 865 feet at Well 24-27 J-27, the authority may authorize withdrawal from the Uvalde pool, 25-1 on an interruptible basis, of additional amounts above the 25-2 withdrawal limits imposed in accordance with this section. The 25-3 authority shall limit the additional withdrawals to ensure that 25-4 springflows are not affected during critical drought conditions. 25-5 (f) The authority by rule may define other pools within the 25-6 aquifer, in accordance with hydrogeologic research, and may 25-7 establish index wells for any pool to monitor the level of the 25-8 aquifer to aid the regulation of withdrawals from the pools. 25-9 (g) To accomplish the purposes of this article, by June 1, 25-10 1994, the authority, through a program, shall implement and enforce 25-11 water management practices, procedures, and methods to ensure that, 25-12 not later than December 31, 2012, the continuous minimum spring 25-13 flows of the Comal Springs and the San Marcos Springs are 25-14 maintained to protect endangered and threatened species to the 25-15 extent required by federal law. The authority from time to time as 25-16 appropriate may revise the practices, procedures, and methods. To 25-17 meet this requirement, the authority shall require: 25-18 (1) phased reductions in the amount of water that may 25-19 be used or withdrawn by existing users or categories of other 25-20 users; or 25-21 (2) implementation of alternative management 25-22 practices, procedures, and methods. 25-23 SECTION 1.16. PERMIT REQUIRED. (a) The authority shall 25-24 manage withdrawals from the aquifer and shall manage all withdrawal 25-25 points from the aquifer as provided by this Act. 25-26 (b) Except as provided by Sections 1.18 and 1.34 of this 25-27 article, a person may not withdraw water from the aquifer or begin 26-1 construction of a well or other works designed for the withdrawal 26-2 of water from the aquifer without obtaining a permit from the 26-3 authority. 26-4 (c) The authority may issue regular permits, term permits, 26-5 and emergency permits. 26-6 (d) Each permit must specify the maximum rate and total 26-7 volume of water that the water user may withdraw in a calendar 26-8 year. 26-9 SECTION 1.17. DECLARATIONS OF HISTORICAL USE; INITIAL 26-10 REGULAR PERMITS. (a) An existing user may apply for an initial 26-11 regular permit by filing a declaration of historical use of 26-12 underground water withdrawn from the aquifer during the historical 26-13 period from June 1, 1982, through May 31, 1993. 26-14 (b) An existing user's declaration of historical use must be 26-15 filed on or before March 1, 1994, on a form prescribed by the 26-16 board. An applicant for a permit must timely pay all application 26-17 fees required by the board. An owner of a well used for irrigation 26-18 must include additional documentation of the number of acres 26-19 irrigated during the historical period provided by Subsection (a) 26-20 of this section. 26-21 (c) An owner of a well from which the water will be used 26-22 exclusively for domestic use or watering livestock and that is 26-23 exempt under Section 1.34 of this article is not required to file a 26-24 declaration of historical use. 26-25 (d) The board shall grant an initial regular permit to an 26-26 existing user who: 26-27 (1) files a declaration and pays fees as required by 27-1 this section; and 27-2 (2) establishes by convincing evidence beneficial use 27-3 of underground water from the aquifer. 27-4 (e) To the extent water is available for permitting, the 27-5 board shall issue the existing user a permit for withdrawal of an 27-6 amount of water equal to the user's maximum beneficial use of water 27-7 without waste during any one calendar year of the historical 27-8 period. If the total amount of water determined to have been 27-9 beneficially used without waste under this subsection exceeds the 27-10 amount of water available for permitting, the authority shall 27-11 adjust the amount of water authorized for withdrawal under the 27-12 permits proportionately to meet the amount available for 27-13 permitting. To the extent water is available for permitting: 27-14 (1) an existing irrigation user shall receive a permit 27-15 for not less than two acre-feet a year for each acre of land the 27-16 user irrigated in any one year during the historical period; and 27-17 (2) an existing user who has operated a well for three 27-18 or more years during the historical period shall receive a permit 27-19 for at least the average amount of water withdrawn annually during 27-20 the historical period. 27-21 (f) The board by rule shall consider the equitable treatment 27-22 of a person whose historic use has been affected by a requirement 27-23 of or participation in a federal program. 27-24 (g) The authority shall issue an initial regular permit 27-25 without a term, and an initial regular permit remains in effect 27-26 until the permit is abandoned, cancelled, or retired. 27-27 (h) The board shall notify each permit holder that the 28-1 permit is subject to limitations as provided by this article. 28-2 SECTION 1.18. INTERIM AUTHORIZATION. (a) A person who, on 28-3 the effective date of this article, owns a producing well that 28-4 withdraws water from the aquifer may continue to withdraw and 28-5 beneficially use water without waste until final action on permits 28-6 by the authority, if: 28-7 (1) the well is in compliance with all statutes and 28-8 rules relating to well construction, approval, location, spacing, 28-9 and operation; and 28-10 (2) by March 1, 1994, the person files a declaration 28-11 of historical use on a form as required by the authority. 28-12 (b) Use under interim authorization may not exceed on an 28-13 annual basis the historical, maximum, beneficial use of water 28-14 without waste during any one calendar year as evidenced by the 28-15 person's declaration of historical use, unless that amount is 28-16 otherwise determined by the authority. 28-17 (c) Use under this section is subject to the authority's 28-18 comprehensive management plan and rules adopted by the authority. 28-19 (d) Interim authorization for a well under this section ends 28-20 on: 28-21 (1) entry of a final and appealable order by the 28-22 authority acting on the application for the well; or 28-23 (2) March 1, 1994, if the well owner has not filed a 28-24 declaration of historical use. 28-25 SECTION 1.19. ADDITIONAL REGULAR PERMITS. (a) To the 28-26 extent water is available for permitting after the issuance of 28-27 permits to existing users, the authority may issue additional 29-1 regular permits, subject to limits on the total amount of permitted 29-2 withdrawals determined under Section 1.15 of this article. 29-3 (b) The authority may not consider or take action on an 29-4 application relating to a proposed or existing well of which there 29-5 is no evidence of actual beneficial use before June 1, 1993, until 29-6 a final determination has been made on all initial regular permit 29-7 applications submitted on or before the initial application date of 29-8 March 1, 1994. 29-9 SECTION 1.20. TERM PERMITS. (a) The authority may issue 29-10 term permits for withdrawal for any period the authority considers 29-11 feasible, but may not issue a term permit for a period of more than 29-12 10 years. 29-13 (b) A holder of a term permit may not withdraw water from 29-14 the San Antonio pool of the aquifer unless the level of the aquifer 29-15 is higher than 665 feet above sea level, as measured at Well J-17. 29-16 (c) A holder of a term permit may not withdraw water from 29-17 the Uvalde pool of the aquifer unless the level of the aquifer is 29-18 higher than 865 feet above sea level, as measured at Well J-27. 29-19 SECTION 1.21. EMERGENCY PERMITS. (a) Emergency permits may 29-20 be issued only to prevent the loss of life or to prevent severe, 29-21 imminent threats to the public health or safety. 29-22 (b) The term of an emergency permit may not exceed 30 days, 29-23 unless renewed. 29-24 (c) The board may renew an emergency permit. 29-25 (d) The holder of an emergency permit may withdraw water 29-26 from the aquifer without regard to its effect on other permit 29-27 holders. 30-1 SECTION 1.22. PERMIT RETIREMENT. (a) The authority shall 30-2 prepare and implement a plan for reducing, by January 1, 2008, the 30-3 maximum annual volume of water authorized to be withdrawn from the 30-4 aquifer under regular permits to 400,000 acre-feet a year or the 30-5 adjusted amount determined under Subsection (d) of Section 1.15 of 30-6 this article. 30-7 (b) The plan must be enforceable and must include water 30-8 conservation and reuse measures, measures to retire water rights, 30-9 and other water management measures designed to achieve the 30-10 reduction levels or appropriate management of the resource. 30-11 (c) If, on or after January 1, 2008, the overall volume of 30-12 water authorized to be withdrawn from the aquifer under regular 30-13 permits is greater than 400,000 acre-feet a year or greater than 30-14 the adjusted amount determined under Subsection (d) of Section 1.15 30-15 of this article, the maximum authorized withdrawal of each regular 30-16 permit shall be immediately reduced by an equal percentage as is 30-17 necessary to reduce overall maximum demand to 400,000 acre-feet a 30-18 year or the adjusted amount, as appropriate. The amount reduced 30-19 may be restored, in whole or in part, as other appropriate measures 30-20 are implemented that maintain overall demand at or below the 30-21 appropriate amount. 30-22 SECTION 1.23. ACQUISITION OF RIGHTS. (a) The authority may 30-23 acquire permitted rights to use water from the aquifer for the 30-24 purposes of: 30-25 (1) holding those rights in trust for sale or transfer 30-26 of the water or the rights to persons within the authority's 30-27 jurisdiction who may use water from the aquifer; 31-1 (2) holding those rights in trust as a means of 31-2 managing overall demand on the aquifer; 31-3 (3) holding those rights for resale or retirement as a 31-4 means of complying with pumping reduction requirements under this 31-5 article; or 31-6 (4) retiring those rights, including those rights 31-7 already permitted. 31-8 (b) The authority may acquire and hold permits or rights to 31-9 appropriate surface water or groundwater from sources inside or 31-10 outside of the authority's boundaries. 31-11 (c) Notwithstanding any other provisions of law, the 31-12 authority's acquisition of permitted rights to use water from the 31-13 aquifer is eligible for financial assistance from: 31-14 (1) the water supply account of the Texas Water 31-15 Development Fund under Subchapter D, Chapter 17, Water Code; 31-16 (2) the water loan assistance fund under Subchapter C, 31-17 Chapter 15, Water Code; and 31-18 (3) the revenue bond program under Subchapter I, 31-19 Chapter 17, Water Code. 31-20 SECTION 1.24. CONSERVATION AND REUSE PLANS. (a) The 31-21 authority shall require holders of regular permits and holders of 31-22 term permits to submit water conservation plans and, if 31-23 appropriate, reuse plans for review and approval by the authority. 31-24 The board by rule shall require a plan to be implemented after a 31-25 reasonable time after a plan's approval. 31-26 (b) The board shall assist users in developing conservation 31-27 or reuse plans. 32-1 (c) The authority biennially shall prepare and update 32-2 enforceable and effective conservation and reuse plans as required 32-3 by this article. Not later than January 1 of each odd-numbered 32-4 year the authority shall submit the plan to the legislature. 32-5 SECTION 1.25. LOANS AND GRANTS. (a) Notwithstanding any 32-6 other provision of law, the authority is eligible as a lender 32-7 district to receive loans from the Texas Water Development Board 32-8 under the agricultural water conservation bond program under 32-9 Subchapter J, Chapter 17, Water Code. 32-10 (b) The authority may apply for, request, solicit, contract 32-11 for, receive, and accept gifts, grants, and other assistance from 32-12 any source for the purposes of this article. 32-13 (c) The authority may issue grants or make loans to finance 32-14 the purchase or installation of equipment or facilities. If the 32-15 authority issues a grant for a water conservation, reuse, or water 32-16 management project, the authority may require the beneficiary to 32-17 transfer to the authority permitted rights to aquifer water equal 32-18 to a portion of the water conserved or made available by the 32-19 project. 32-20 SECTION 1.26. COMPREHENSIVE MANAGEMENT PLAN. 32-21 (a) Consistent with Section 1.15 of this article, the authority 32-22 shall develop, by September 1, 1995, and implement a comprehensive 32-23 water management plan that includes conservation, future supply, 32-24 and demand management plans. The authority may not delegate the 32-25 development of the plan under Section 1.43 of this article. 32-26 (b) The authority, in conjunction with the Texas Water 32-27 Development Board and underground water conservation districts 33-1 within the authority's boundaries, shall develop a 20-year plan for 33-2 providing alternative supplies of water to the region, with 33-3 five-year goals and objectives, to be implemented by the authority 33-4 and reviewed annually by the appropriate federal agencies. The 33-5 authority, Texas Water Development Board, and districts, in 33-6 developing the plan, shall: 33-7 (1) make a thorough investigation of all alternative 33-8 technologies; 33-9 (2) provide for financial assistance for alternative 33-10 supplies through the Texas Water Development Board; and 33-11 (3) perform a cost-benefit analysis and an 33-12 environmental analysis. 33-13 SECTION 1.27. DEMAND MANAGEMENT PLAN. The authority shall 33-14 prepare and, after commission review, implement plans that provide 33-15 for demand management. The demand mechanisms must: 33-16 (1) distinguish between discretionary use and 33-17 nondiscretionary use for each permittee; 33-18 (2) require reductions, to the maximum extent 33-19 feasible, of all discretionary use; and 33-20 (3) require reduction of nondiscretionary use, to the 33-21 extent further reductions are necessary, in the reverse order of 33-22 the following water use preferences: 33-23 (A) domestic and municipal; 33-24 (B) industrial and irrigation; 33-25 (C) recreational and pleasure; and 33-26 (D) other uses that are authorized by law. 33-27 SECTION 1.28. RESEARCH. (a) The authority shall complete 34-1 research on the technological feasibility of springflow enhancement 34-2 and yield enhancement that, immediately before September 1, 1993, 34-3 is being conducted by the Edwards Underground Water District. 34-4 (b) The authority may conduct research to help: 34-5 (1) manage water resources, including water 34-6 conservation, water use and reuse, and drought management measures; 34-7 (2) enhance the recharge of and augment the flow into 34-8 and out of the aquifer; 34-9 (3) develop alternative supplies of water for users; 34-10 and 34-11 (4) monitor and protect water quality. 34-12 (c) The authority may contract with other persons to conduct 34-13 research. 34-14 SECTION 1.29. TAX; BONDS. (a) The authority may not levy a 34-15 property tax. 34-16 (b) The authority may issue revenue bonds to finance the 34-17 purchase of land or the purchase, construction, or installation of 34-18 facilities or equipment for: 34-19 (1) water conservation, water reuse, or other water 34-20 management measures by water users; or 34-21 (2) development, storage, pumping, treatment, 34-22 transportation, or wholesale distribution of groundwater or surface 34-23 water for use within the authority from sources within or outside 34-24 the boundaries of the authority, except that the authority may not 34-25 construct, acquire, or own facilities for transporting groundwater 34-26 out of Uvalde County or Medina County. 34-27 (c) Revenue bond proceeds may be used: 35-1 (1) for springflow augmentation or alternative water 35-2 supplies; 35-3 (2) to finance the retirement of water rights; and 35-4 (3) for financial assistance for research or 35-5 conservation under this article. 35-6 (d) Revenue bond proceeds may not be used for maintenance or 35-7 operating expenses. 35-8 (e) Bonds issued by the authority are subject to review and 35-9 approval of the attorney general and the commission. If the 35-10 attorney general finds that the bonds have been authorized in 35-11 accordance with the law, the attorney general shall approve them, 35-12 and the comptroller of public accounts shall register the bonds. 35-13 Following approval and registration, the bonds are incontestable 35-14 and are binding obligations according to their terms. 35-15 (f) The board may organize proceeds of the bonds into funds 35-16 and accounts and may invest the proceeds as the board determines is 35-17 appropriate. 35-18 SECTION 1.30. FEES. (a) The cost of reducing withdrawals 35-19 or permit retirements must be borne: 35-20 (1) solely by users of the aquifer for reducing 35-21 withdrawals from the level on the effective date of this article to 35-22 450,000 acre-feet a year, or the adjusted amount determined under 35-23 Subsection (d) of Section 1.15 of this article for the period 35-24 ending December 31, 2007; and 35-25 (2) equally by aquifer users and downstream water 35-26 rights holders for permit retirements from 450,000 acre-feet a 35-27 year, or the adjusted amount determined under Subsection (d) of 36-1 Section 1.15 of this article for the period ending December 31, 36-2 2007, to 400,000 acre-feet a year, or the adjusted amount 36-3 determined under Subsection (d) of Section 1.15 of this article, 36-4 for the period beginning January 1, 2008. 36-5 (b) The authority shall assess equitable aquifer management 36-6 fees based on permitted aquifer rights to finance its 36-7 administrative expenses and programs authorized under this article. 36-8 (c) The authority shall also assess an equitable special fee 36-9 based on permitted aquifer water rights to be used only to finance 36-10 the retirement of rights necessary to meet the goals provided by 36-11 Section 1.22 of this article. The authority shall set the 36-12 equitable special fees on permitted aquifer users at a level 36-13 sufficient to match the funds raised from the assessment of 36-14 equitable special fees on downstream water rights holders. 36-15 (d) The commission shall assess equitable special fees on 36-16 all downstream water rights holders in the Guadalupe River Basin to 36-17 be used solely to finance the retirement of aquifer rights 36-18 necessary to meet the goals provided by Section 1.22 of this 36-19 article. Fees assessed under this subsection may not exceed 36-20 one-half of the cost of permit retirements from 450,000 acre-feet a 36-21 year, or the adjusted amount determined under Subsection (d) of 36-22 Section 1.15 of this article, for the period ending December 31, 36-23 2007, to 400,000 acre-feet a year, or the adjusted amount 36-24 determined under Subsection (d) of Section 1.15 of this article, 36-25 for the period beginning January 1, 2008. The authority shall 36-26 report to the commission the estimated costs of the retirements. 36-27 The amount of fees assessed under this subsection shall be 37-1 determined in accordance with rules adopted by the commission for 37-2 fees under the South Texas watermaster program. A downstream water 37-3 rights holder shall pay fees assessed under this subsection to the 37-4 authority. A fee may not be assessed by the commission under this 37-5 subsection on contractual deliveries of water stored in Canyon Lake 37-6 that may be diverted downstream of the San Marcos Springs or Canyon 37-7 Dam. A person or entity making a contractual sale of water stored 37-8 upstream of Canyon Dam may not establish a systemwide rate that 37-9 requires purchasers of upstream-stored water to pay the special fee 37-10 assessed under this subsection. The commission may not assess a 37-11 fee under this subsection on hydroelectric use of water by the 37-12 following dams: 37-13 (1) City of Gonzales Dam; 37-14 (2) City of Seguin Dam; 37-15 (3) New Braunfels Utilities Dam; 37-16 (4) Dam No. TP-1; 37-17 (5) Dam No. TP-3; 37-18 (6) Dam No. TP-4; 37-19 (7) Dam No. TP-5; 37-20 (8) Dam No. H-4; or 37-21 (9) Dam No. H-5. 37-22 (e) In developing an equitable fee structure under this 37-23 section, the authority may establish different fee rates on a per 37-24 acre-foot basis for different types of use. The fees must be 37-25 equitable between types of uses. The fee rate for agricultural use 37-26 may not be more than 20 percent of the fee rate for municipal use. 37-27 The authority shall assess the fees on the amount of water a permit 38-1 holder is authorized to withdraw under the permit. 38-2 (f) The authority shall impose a permit application fee not 38-3 to exceed $25. 38-4 (g) The authority may assess a surcharge fee to be imposed 38-5 on a permittee's withdrawal of water in excess of permitted 38-6 amounts. 38-7 (h) The authority may impose a registration application fee 38-8 not to exceed $10. 38-9 (i) Special fees collected under Subsection (c) or (d) of 38-10 this section may not be used to finance a surface water supply 38-11 reservoir project. 38-12 SECTION 1.31. RIVER DIVERSIONS. (a) The commission may 38-13 issue to an applicant a special permit to divert water from the 38-14 Guadalupe River from a diversion point on the river downstream of 38-15 the point where the river emerges as a spring. 38-16 (b) A permit issued to a person under this section must 38-17 condition the diversion of water from the Guadalupe River on a 38-18 limitation of withdrawals under the person's permit to withdraw 38-19 water from the aquifer. 38-20 (c) A permit issued under this section must provide that the 38-21 permit holder may divert water from the Guadalupe River only if: 38-22 (1) the diversion is made instead of a withdrawal from 38-23 the aquifer to enhance the yield of the aquifer; and 38-24 (2) the diversion does not impair senior water rights 38-25 or vested riparian rights. 38-26 (d) A permit issued in accordance with this section is 38-27 subordinate to permitted water rights for which applications were 39-1 submitted before May 31, 1993, and vested riparian rights. 39-2 (e) Sections 11.028 and 11.033, Water Code, do not apply to 39-3 a permit issued under this section. 39-4 SECTION 1.32. MEASURING DEVICES. (a) The owner of a 39-5 nonexempt well that withdraws water from the aquifer shall install 39-6 and maintain a measuring device approved by the authority designed 39-7 to indicate the flow rate and cumulative amount of water withdrawn 39-8 by that well. This requirement may be waived by the authority on 39-9 written request by a well owner to use an alternative method of 39-10 determining the amount of water withdrawn. 39-11 (b) The authority is responsible for the costs of installing 39-12 and maintaining measuring devices, if required, for an irrigation 39-13 well in existence on the effective date of this article. 39-14 SECTION 1.33. REPORTS. Not later than March 1 of each year, 39-15 and on a form prescribed by the authority, each holder of a permit 39-16 shall file with the authority a written report of water use for the 39-17 preceding calendar year. 39-18 SECTION 1.34. WELL PERMIT EXEMPTION. (a) A well that 39-19 produces 25,000 gallons of water a day or less for domestic use or 39-20 for the open-range watering of livestock connected with farming, 39-21 ranching, or dairy enterprises is exempt from permitting 39-22 requirements. 39-23 (b) Exempt wells must register with the authority or with an 39-24 underground water conservation district in which the well is 39-25 located. 39-26 (c) A well within or serving a subdivision requiring 39-27 platting does not qualify for an exempt use. 40-1 (d) Except as provided by Subsection (b) of this section, 40-2 land sold within the authority's boundaries retains the 40-3 authorization to withdraw water in accordance with permits obtained 40-4 under this article. 40-5 SECTION 1.35. TRANSFER OF RIGHTS. (a) Water withdrawn from 40-6 the aquifer must be used within the boundaries of the authority. 40-7 (b) A permit holder may sell permitted water rights only to 40-8 the authority, but a holder of a permit for irrigation use may not 40-9 sell more than 50 percent of the irrigation rights initially 40-10 permitted. The user's remaining irrigation water rights must be 40-11 used in accordance with the original permit and must pass with 40-12 transfer of the irrigated land, except as provided by rules of the 40-13 board. 40-14 (c) The authority may purchase permitted water rights and: 40-15 (1) sell those rights to other permit holders; 40-16 (2) sell water withdrawn under those rights to other 40-17 permit holders; 40-18 (3) hold the water in trust for future beneficial use 40-19 within the authority's boundaries; or 40-20 (4) retire those rights. 40-21 SECTION 1.36. PROHIBITIONS. (a) A person may not withdraw 40-22 water from the aquifer except as authorized by a permit issued by 40-23 the authority or by this article. 40-24 (b) A person holding a permit issued by the authority may 40-25 not violate the terms or conditions of the permit. 40-26 (c) A person may not waste water withdrawn from the aquifer. 40-27 (d) A person may not pollute or contribute to the pollution 41-1 of the aquifer. 41-2 (e) A person may not violate this article or a rule of the 41-3 authority adopted under this article. 41-4 SECTION 1.37. ENFORCEMENT. (a) The authority may enter 41-5 orders to enforce the terms and conditions of permits, orders, or 41-6 rules issued or adopted under this article. 41-7 (b) The authority by rule shall provide for the suspension 41-8 of a permit of any class for a failure to pay a required fee or a 41-9 violation of a permit condition or order of the authority or a rule 41-10 adopted by the authority. 41-11 SECTION 1.38. ADMINISTRATIVE PENALTY. (a) The authority 41-12 may assess an administrative penalty against a person who violates 41-13 this article or a rule adopted or permit or order issued under this 41-14 article in an amount of not less than $100 or more than $1,000 for 41-15 each violation and for each day of a continuing violation. 41-16 (b) In determining the amount of the penalty, the authority 41-17 shall consider: 41-18 (1) the history of previous violations; 41-19 (2) the amount necessary to deter future violations; 41-20 (3) efforts to correct the violation; 41-21 (4) enforcement costs relating to the violation; and 41-22 (5) any other matters that justice may require. 41-23 (c) If after an examination of the facts the authority 41-24 concludes that the person did commit a violation, the authority may 41-25 issue a preliminary report stating the facts on which it based its 41-26 conclusion, recommending that an administrative penalty under this 41-27 section be imposed, and recommending the amount of the proposed 42-1 penalty. 42-2 (d) The authority shall give written notice of the report to 42-3 the person charged with committing the violation. The notice must 42-4 include a brief summary of the facts, a statement of the amount of 42-5 the recommended penalty, and a statement of the person's right to 42-6 an informal review of the occurrence of the violation, the amount 42-7 of the penalty, or both. 42-8 (e) Not later than the 10th day after the date on which the 42-9 person charged with committing the violation receives the notice, 42-10 the person may either give the authority written consent to the 42-11 report, including the recommended penalty, or make a written 42-12 request for an informal review by the authority. 42-13 (f) If the person charged with committing the violation 42-14 consents to the penalty recommended by the authority or fails to 42-15 timely request an informal review, the authority shall assess the 42-16 penalty. The authority shall give the person written notice of its 42-17 action. The person shall pay the penalty not later than the 30th 42-18 day after the date on which the person receives the notice. 42-19 (g) If the person charged with committing a violation 42-20 requests an informal review as provided by Subsection (e) of this 42-21 section, the authority shall conduct the review. The authority 42-22 shall give the person written notice of the results of the review. 42-23 (h) Not later than the 10th day after the date on which the 42-24 person charged with committing the violation receives the notice 42-25 prescribed by Subsection (g) of this section, the person may make 42-26 to the authority a written request for a hearing. 42-27 (i) If, after informal review, a person who has been ordered 43-1 to pay a penalty fails to request a formal hearing in a timely 43-2 manner, the authority shall assess the penalty. The authority 43-3 shall give the person written notice of its action. The person 43-4 shall pay the penalty not later than the 30th day after the date on 43-5 which the person receives the notice. 43-6 (j) Except as provided by Subsection (k) of this section, 43-7 not later than the 30th day after the date on which the authority 43-8 issues a final decision after a hearing under Subsection (h) of 43-9 this section, a person who has been ordered to pay a penalty under 43-10 this section shall pay the penalty in full. 43-11 (k) If the person seeks judicial review of either the fact 43-12 of the occurrence of the violation or the amount of the penalty, or 43-13 of both, the person shall send the amount of the penalty to the 43-14 authority for placement in an escrow account or post with the 43-15 authority a supersedeas bond in a form approved by the authority 43-16 for the amount of the penalty. The bond must be effective until 43-17 all judicial review of the order or decision is final. 43-18 (l) Failure to forward the money to or to post the bond with 43-19 the authority within the period provided by Subsection (j) or (k) 43-20 of this section results in a waiver of all legal rights to judicial 43-21 review. If the person charged fails to forward the money or post 43-22 the bond within the period provided by Subsection (f), (i), (j), or 43-23 (k) of this section, the authority may forward the matter to the 43-24 attorney general for enforcement of the penalty and interest as 43-25 provided by law for legal judgments. An action to enforce a 43-26 penalty order under this section must be initiated in a court of 43-27 competent jurisdiction in Travis County or in the county in which 44-1 the violation occurred. The authority or the attorney general may 44-2 recover attorney fees in a suit filed under this subsection. 44-3 (m) Judicial review of an authority order or review under 44-4 this section assessing a penalty is under the substantial evidence 44-5 rule. A suit may be initiated by filing a petition with a district 44-6 court in Travis County. 44-7 (n) If a penalty is reduced or not assessed, the authority 44-8 shall remit to the person the appropriate amount plus accrued 44-9 interest if the penalty has been paid or shall execute a release of 44-10 the bond if a supersedeas bond has been posted. The accrued 44-11 interest on amounts remitted by the authority under this subsection 44-12 shall be paid at a rate equal to the rate provided by law for legal 44-13 judgments and shall be paid for the period beginning on the date 44-14 the penalty is paid to the authority under this section and ending 44-15 on the date the penalty is remitted. 44-16 (o) A penalty collected under this section shall be paid to 44-17 the authority. 44-18 SECTION 1.39. INJUNCTION BY AUTHORITY. The authority may 44-19 file a civil suit in a state district court for an injunction to 44-20 enforce this article or a rule adopted or permit or order issued 44-21 under this article. If the court determines that a person has 44-22 violated or threatens to violate this article or a rule adopted or 44-23 permit or order issued under this article, the court may enter an 44-24 injunction to enforce this article or the permit, order, or rule. 44-25 The authority may recover reasonable attorney fees in a suit under 44-26 this section. 44-27 SECTION 1.40. SUIT FOR MANDAMUS. The commission may file a 45-1 civil suit for an order of mandamus against the authority to compel 45-2 the authority to perform its duties under this article or to compel 45-3 the authority to enforce this article against a violator. The 45-4 commission may recover attorney fees from the authority in a suit 45-5 under this section. 45-6 SECTION 1.41. CIVIL PENALTY. (a) The commission or 45-7 authority may file a civil action in state district court for a 45-8 civil penalty for a violation of this article or a rule adopted or 45-9 permit or order issued under this article. 45-10 (b) The commission or authority may recover a civil penalty 45-11 of not less than $100 or more than $10,000 for each violation and 45-12 for each day of violation and attorney fees. 45-13 (c) A civil penalty or attorney fees collected by the 45-14 authority under this section shall be paid to the authority. 45-15 (d) A civil penalty or attorney fees collected by the 45-16 commission under this section shall be deposited to the credit of 45-17 the general revenue fund. 45-18 SECTION 1.42. REPEALER; TRANSFERS; RULES. (a) Chapter 99, 45-19 Acts of the 56th Legislature, Regular Session, 1959 (Article 45-20 8280-219, Vernon's Texas Civil Statutes), is repealed, and the 45-21 Edwards Underground Water District is abolished. 45-22 (b) All files and records of the Edwards Underground Water 45-23 District pertaining to control, management, and operation of the 45-24 district are transferred from the Edwards Underground Water 45-25 District to the authority on the effective date of this article. 45-26 (c) All real and personal property, leases, rights, 45-27 contracts, staff, and obligations of the Edwards Underground Water 46-1 District are transferred to the authority on the effective date of 46-2 this article. 46-3 (d) On September 1, 1993, all unobligated and unexpended 46-4 funds of the Edwards Underground Water District shall be 46-5 transferred to the authority. 46-6 (e) A rule adopted by the Edwards Underground Water District 46-7 before the effective date of this article that relates to 46-8 management or control of the aquifer is, on the effective date of 46-9 this article, a rule of the authority and remains in effect until 46-10 amended or repealed by the authority. 46-11 (f) The authority shall be automatically substituted for the 46-12 Edwards Underground Water District in any judicial or 46-13 administrative proceeding to which, on the effective date of this 46-14 article, the Edwards Underground Water District is a party. 46-15 SECTION 1.43. EFFECT ON OTHER DISTRICTS. (a) An 46-16 underground water conservation district other than the authority 46-17 may manage and control water that is a part of the aquifer after 46-18 the effective date of this article only as provided in this 46-19 section. This article does not affect a water reclamation or 46-20 conservation district that manages and controls only water from a 46-21 resource other than the aquifer. 46-22 (b) An underground water conservation district other than 46-23 the authority may manage and control water that is a part of the 46-24 aquifer to the extent that those management activities do not 46-25 conflict with and are not duplicative of this article or the rules 46-26 and orders of the authority. 46-27 (c) Except as otherwise provided by this article, the board 47-1 may delegate the powers and duties granted to it under this 47-2 article. The board shall delegate all or part of its powers or 47-3 duties to an underground water conservation district on the 47-4 district's request if the district demonstrates to the satisfaction 47-5 of the board that: 47-6 (1) the district has statutory powers necessary for 47-7 full enforcement of the rules and orders to be delegated; 47-8 (2) the district has implemented all rules and 47-9 policies necessary to fully implement the programs to be delegated; 47-10 and 47-11 (3) the district has implemented a system designed to 47-12 provide the authority with adequate information with which to 47-13 monitor the adequacy of the district's performance in enforcing 47-14 board rules and orders. 47-15 (d) In making the determination under Subsection (c) of this 47-16 section, the board may consider the district's past performance and 47-17 experience in enforcing powers and duties delegated to it by the 47-18 board. The board may deny a request for delegation of powers or 47-19 duties by a district if the district has previously had a 47-20 delegation terminated under Subsection (e) of this section. 47-21 (e) If the authority determines that a district has failed 47-22 adequately to enforce or implement any rules or orders delegated 47-23 under this section, the authority immediately shall provide to the 47-24 district notice that sets forth the reasons for its determination 47-25 and the actions that the district must take to retain the delegated 47-26 authority. Not later than the 10th day after the date the notice 47-27 is given, the district must demonstrate its commitment and ability 48-1 to take the actions set forth in the notice. If, at the end of the 48-2 10-day period, the authority does not find that the district will 48-3 adequately enforce its rules and orders, the authority immediately 48-4 shall resume full responsibility for implementation and enforcement 48-5 of those rules and orders. The authority shall provide to the 48-6 district notice that the delegation of authority to it has been 48-7 terminated. After the termination notice is given, the authority 48-8 of the district to manage or control water in the aquifer is 48-9 limited to the authority granted by Subsection (b) of this section. 48-10 SECTION 1.44. CREATION OF UNDERGROUND WATER CONSERVATION 48-11 DISTRICT. An underground water conservation district may be 48-12 created in any county affected by this article as provided by 48-13 Subchapter B, Chapter 52, Water Code. 48-14 ARTICLE 2 48-15 SECTION 2.01. DEFINITION. In this article, "district" means 48-16 the Uvalde County Underground Water Conservation District. 48-17 SECTION 2.02. VALIDATION. The creation of the district and 48-18 all resolutions, orders, and other acts or attempted acts of the 48-19 board of directors of the district are validated in all respects. 48-20 The creation of the district and all resolutions, orders, and other 48-21 acts or attempted acts of the board of directors of the district 48-22 are valid as though they originally had been legally authorized or 48-23 accomplished. 48-24 SECTION 2.03. BOUNDARIES. Pursuant to the petition to the 48-25 Commissioners Court of Uvalde County, Texas, requesting the 48-26 creation of the district, the district includes the territory 48-27 contained within the boundaries of Uvalde County. 49-1 SECTION 2.04. FINDING OF BENEFIT. All the land and other 49-2 property included within the boundaries of the district will be 49-3 benefitted by the validation of the district. 49-4 SECTION 2.05. POWERS. (a) The district has all of the 49-5 rights, powers, privileges, authority, functions, and duties 49-6 provided by the general law of the state, including Chapters 50 and 49-7 52, Water Code, applicable to underground water conservation 49-8 districts created under Article XVI, Section 59, of the Texas 49-9 Constitution. This article prevails over any provision of general 49-10 law that is in conflict or inconsistent with this article. 49-11 (b) The district may develop and implement a drought 49-12 response plan, with reasonable rules, using water levels as 49-13 observed in the Uvalde Index Well YP-69-50-302. 49-14 (c) The rights, powers, privileges, authority, functions, 49-15 and duties of the district are subject to the continuing right of 49-16 supervision of the state to be exercised by and through the Texas 49-17 Water Commission. 49-18 SECTION 2.06. LEVY OF TAXES. The levy and collection of 49-19 taxes by the district is governed by Subchapter H, Chapter 52, 49-20 Water Code, except that the district may not levy a maintenance and 49-21 operating tax at a rate that exceeds two cents per $100 assessed 49-22 valuation unless an election held in the district authorizes a 49-23 higher rate. 49-24 SECTION 2.07. PENDING LITIGATION. This article does not 49-25 apply to or affect litigation pending on the effective date of this 49-26 article in any court of competent jurisdiction in this state to 49-27 which the district is a party. 50-1 ARTICLE 3 50-2 SECTION 3.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 50-3 (a) The proper and legal notice of the intention to introduce this 50-4 Act, setting forth the general substance of this Act, has been 50-5 published as provided by law, and the notice and a copy of this Act 50-6 have been furnished to all persons, agencies, officials, or 50-7 entities to which they are required to be furnished by the 50-8 constitution and other laws of this state, including the governor, 50-9 who has submitted the notice and Act to the Texas Water Commission. 50-10 (b) The Texas Water Commission has filed its recommendations 50-11 relating to this Act with the governor, lieutenant governor, and 50-12 speaker of the house of representatives within the required time. 50-13 (c) All requirements of the constitution and laws of this 50-14 state and the rules and procedures of the legislature with respect 50-15 to the notice, introduction, and passage of this Act are fulfilled 50-16 and accomplished. 50-17 SECTION 3.02. EFFECTIVE DATES. This Act takes effect 50-18 September 1, 1993; except Section 1.36 of Article 1 takes effect 50-19 March 1, 1994. 50-20 SECTION 3.03. EMERGENCY. The importance of this legislation 50-21 and the crowded condition of the calendars in both houses create an 50-22 emergency and an imperative public necessity that the 50-23 constitutional rule requiring bills to be read on three several 50-24 days in each house be suspended, and this rule is hereby suspended.