S.B. No. 1477
                                        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  administrative 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)  "Augmentation" means an act or process to increase
   2-21  the amount of water available for use or springflow.
   2-22              (3)  "Authority" means the Edwards Aquifer Authority.
   2-23              (4)  "Beneficial use" means the use of the amount of
   2-24  water that is economically necessary for a purpose authorized by
   2-25  law, when reasonable intelligence and reasonable diligence are used
   2-26  in applying the water to that purpose.
   2-27              (5)  "Board" means the board of directors of the
    3-1  authority.
    3-2              (6)  "Commission" means the Texas Natural Resource
    3-3  Conservation Commission.
    3-4              (7)  "Conservation" means any measure that would
    3-5  sustain or enhance water supply.
    3-6              (8)  "Diversion" means the removal of state water from
    3-7  a watercourse or impoundment.
    3-8              (9)  "Domestic or livestock use" means use of water
    3-9  for:
   3-10                    (A)  drinking, washing, or culinary purposes;
   3-11                    (B)  irrigation of a family garden or orchard the
   3-12  produce of which is for household consumption only; or
   3-13                    (C)  watering of animals.
   3-14              (10)  "Existing user" means a person who has withdrawn
   3-15  and beneficially used underground water from the aquifer on or
   3-16  before June 1, 1993.
   3-17              (11)  "Industrial use" means the use of water for or in
   3-18  connection with commercial or industrial activities, including
   3-19  manufacturing, bottling, brewing, food processing, scientific
   3-20  research and technology, recycling, production of concrete,
   3-21  asphalt, and cement, commercial uses of water for tourism,
   3-22  entertainment, and hotel or motel lodging, generation of power
   3-23  other than hydroelectric, and other business activities.
   3-24              (12)  "Irrigation use" means the use of water for the
   3-25  irrigation of pastures and commercial crops, including orchards.
   3-26              (13)  "Livestock" means animals, beasts, or poultry
   3-27  collected or raised for pleasure, recreational use, or commercial
    4-1  use.
    4-2              (14)  "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              (15)  "Order" means any written directive carrying out
   4-25  the powers and duties of the authority under this article.
   4-26              (16)  "Person" means an individual, corporation,
   4-27  organization, government or governmental subdivision or agency,
    5-1  business trust, estate, trust, partnership, association, and any
    5-2  other legal entity.
    5-3              (17)  "Pollution" means the alteration of the physical,
    5-4  thermal, chemical, or biological quality of any water in the state,
    5-5  or the contamination of any water in the state, that renders the
    5-6  water harmful, detrimental, or injurious to humans, animal life,
    5-7  vegetation, property, or public health, safety, or welfare or that
    5-8  impairs the usefulness of the public enjoyment of the water for any
    5-9  lawful or reasonable purpose.
   5-10              (18)  "Recharge" means increasing the supply of water
   5-11  to the aquifer by naturally occurring channels or artificial means.
   5-12              (19)  "Reuse" means authorized use for one or more
   5-13  beneficial purposes of use of water that remains unconsumed after
   5-14  the water is used for the original purpose of use and before the
   5-15  water is discharged or otherwise allowed to flow into a
   5-16  watercourse, lake, or other body of state-owned water.
   5-17              (20)  "Underground water" has the meaning assigned by
   5-18  Section 52.001, Water Code.
   5-19              (21)  "Waste" means:
   5-20                    (A)  withdrawal of underground water from the
   5-21  aquifer at a rate and in an amount that causes or threatens to
   5-22  cause intrusion into the  reservoir of water unsuitable for
   5-23  agricultural, gardening, domestic, or stock raising purposes;
   5-24                    (B)  the flowing or producing of wells from the
   5-25  aquifer if the water produced is not used for a beneficial purpose;
   5-26                    (C)  escape of underground water from the aquifer
   5-27  to any other reservoir that does not contain underground water;
    6-1                    (D)  pollution or harmful alteration of
    6-2  underground water in the aquifer by salt water or other deleterious
    6-3  matter admitted from another stratum or from the surface of the
    6-4  ground;
    6-5                    (E)  wilfully or negligently causing, suffering,
    6-6  or permitting underground water from the aquifer to escape into any
    6-7  river, creek, natural watercourse, depression, lake, reservoir,
    6-8  drain, sewer, street, highway, road, or road ditch, or onto any
    6-9  land other than that of the owner of the well unless such discharge
   6-10  is authorized by permit, rule, or order issued by the commission
   6-11  under Chapter 26, Water Code;
   6-12                    (F)  underground water pumped from the aquifer
   6-13  for irrigation that escapes as irrigation tailwater onto land other
   6-14  than that of the owner of the well unless permission has been
   6-15  granted by the occupant of the land receiving the discharge; or
   6-16                    (G)  for water produced from an artesian well,
   6-17  "waste" has the meaning assigned by Section 11.205, Water Code.
   6-18              (22)  "Well" means a bored, drilled, or driven shaft or
   6-19  an artificial opening in the ground made by digging, jetting, or
   6-20  some other method where the depth of the shaft or opening is
   6-21  greater than its largest surface dimension, but does not include a
   6-22  surface pit, surface excavation, or natural depression.
   6-23              (23)  "Well J-17" means state well number AY-68-37-203
   6-24  located in Bexar County.
   6-25              (24)  "Well J-27" means state well number YP-69-50-302
   6-26  located in Uvalde County.
   6-27              (25)  "Withdrawal" means an act or a failure to act
    7-1  that results in taking water from the aquifer by or through
    7-2  man-made facilities, including pumping, withdrawing, or diverting
    7-3  underground water.
    7-4        SECTION 1.04.  BOUNDARIES.  The authority includes the
    7-5  territory contained within the following area:
    7-6              (1)  all of the areas of Bexar, Medina, and Uvalde
    7-7  counties;
    7-8              (2)  all of the area of Comal County, except that
    7-9  portion of the county that lies North of the North line through the
   7-10  county of Subdivision No. 1 of the Underground Water Reservoir in
   7-11  the Edwards Limestone, Balcones escarpment area, as defined by the
   7-12  order of the Board of Water Engineers dated January 10, 1957;
   7-13              (3)  the part of Caldwell County beginning with the
   7-14  intersection of Hays County Road 266 and the San Marcos River;
   7-15        THENCE southeast along the San Marcos River to the point of
   7-16  intersection of Caldwell, Guadalupe, and Gonzales counties;
   7-17        THENCE southeast along the Caldwell-Gonzales County line to
   7-18  its intersection with U.S. Highway 183;
   7-19        THENCE north along U.S. Highway 183 to its intersection with
   7-20  State Highway 21;
   7-21        THENCE southwest along State Highway 21 to its intersection
   7-22  with Hays County Road 266;
   7-23        THENCE southwest along Hays County Road 266 to the place of
   7-24  beginning;
   7-25              (4)  the part of Hays County beginning on the northwest
   7-26  line of the R. B. Moore Survey, Abstract 412, in Comal County where
   7-27  it crosses the Comal County-Hays County line northeast along the
    8-1  northwest line of said Survey to the northeast corner of said
    8-2  Survey in Hays County, Texas;
    8-3        THENCE southeast in Hays County, Texas across the Jas.
    8-4  Deloach Survey, Abstract 878, to the most westerly northwest corner
    8-5  of the Presidio Irrigation Co. Survey, Abstract 583;
    8-6        THENCE northeast along the northwest line of said Survey to
    8-7  its most northerly northwest corner;
    8-8        THENCE continuing in the same line across the R.S. Clayton
    8-9  Survey 2, Block 742, to the west line of the H. & G. N. RR. Co.
   8-10  Survey 1, Abstract 668;
   8-11        THENCE north along the west line of said Survey to its
   8-12  northwest corner;
   8-13        THENCE east along the north line of said Survey to its
   8-14  northeast corner;
   8-15        THENCE northeast across the David Wilson Survey 83, Abstract
   8-16  476, to the southeast corner of the F. W. Robertson Survey 71,
   8-17  Abstract 385;
   8-18        THENCE north along the east line of said Survey to the
   8-19  southwest corner of the Benjamin Weed Survey 72, Abstract 483;
   8-20        THENCE east along the south line of said Survey to its
   8-21  southeast corner;
   8-22        THENCE northeast across the William Gray Survey 73, Abstract
   8-23  92, and the Murray Bailey Survey 75, Abstract 42, to the southwest
   8-24  corner of the D.Holderman Survey 33, Abstract 225;
   8-25        THENCE north along the west line of said Survey to its
   8-26  northwest corner;
   8-27        THENCE continuing in the same line to the north line of the
    9-1  Day Land & Cattle Co. Survey 672;
    9-2        THENCE west along said north line of said Survey to its
    9-3  northwest corner, which is in the east line of the Jesse Williams
    9-4  Survey 4 to the northeast corner of said Survey;
    9-5        THENCE west along the north line of said Survey to the
    9-6  Southwest corner of the Amos Singleton Survey 106, Abstract 410;
    9-7        THENCE north along the west lines of said Amos Singleton
    9-8  Survey 106 and the Watkins Nobles Survey 107, Abstract 346, to the
    9-9  northwest corner of said Watkins Nobles Survey 107;
   9-10        THENCE east along the north line of said Survey to the
   9-11  southwest corner of the Jesusa Perez Survey 14, Abstract 363;
   9-12        THENCE north along the west line of said Jesusa Perez Survey
   9-13  14 to its northwest corner;
   9-14        THENCE east along the north line of said Survey to its
   9-15  northeast corner;
   9-16        THENCE, south along the east line of said Survey for a
   9-17  distance of approximately 10,000 feet to its intersection with
   9-18  Ranch Road 150;
   9-19        THENCE, east by southeast along Ranch Road 150 approximately
   9-20  24,500 feet to its intersection with the southern boundary line of
   9-21  the Andrew Dunn Survey 9, Abstract 4;
   9-22        THENCE, east along the south line of said survey as it
   9-23  extends and becomes the southern boundary line of the Morton M.
   9-24  McCarver Survey 4, Abstract 10, for a distance of approximately
   9-25  7,000 feet to its intersection with Ranch Road 2770;
   9-26        THENCE, south on Ranch Road 2770 for a distance of
   9-27  approximately 400 feet to its intersection with Farm-to-Market Road
   10-1  171;
   10-2        THENCE, east along Farm-to-Market Road 171 for a distance of
   10-3  approximately 10,500 feet to its intersection with Farm-to-Market
   10-4  Road 25;
   10-5        THENCE, north by northeast along Farm-to-Market Road 25 for a
   10-6  distance of approximately 3,100 feet to its intersection with
   10-7  Farm-to-Market Road 131;
   10-8        THENCE, east by southeast along Farm-to-Market Road 131 for a
   10-9  distance of approximately 3,000 feet to its intersection with the
  10-10  east line of the Thomas G. Allen Survey, Abstract 26;
  10-11        THENCE south along the east line of said Thomas G. Allen
  10-12  Survey to the most northerly northwest corner of the Elisha Pruett
  10-13  Survey 23, Abstract 376;
  10-14        THENCE southwest along a west line of said Elisha Pruett
  10-15  Survey 23 to the west corner of said Survey;
  10-16        THENCE southeast along the southwest line of said Survey to
  10-17  the north corner of the John Stewart Survey, Abstract 14;
  10-18        THENCE southwest along the northwest line of said John
  10-19  Stewart Survey to its west corner;
  10-20        THENCE continuing in the same line to the most northerly
  10-21  southwest line of the John Jones Survey, Abstract 263;
  10-22        THENCE southeast along said southwest line to an interior
  10-23  corner of said John Jones Survey;
  10-24        THENCE southwest along the most southerly northwest line of
  10-25  said Survey to the southwest corner of said Survey;
  10-26        THENCE southeast along the south line of said Survey to the
  10-27  north corner of the James W. Williams Survey 11, Abstract 473;
   11-1        THENCE southwest along the northwest line of said James W.
   11-2  Williams Survey 11 to its west corner;
   11-3        THENCE southeast along the southwest line of said Survey to
   11-4  the north right-of-way line of the I. & G. N. RR.;
   11-5        THENCE southwest along said right-of-way of said I. & G. N.
   11-6  RR. to the Hays County-Comal County line;
   11-7        THENCE south along said county line to the northwest line of
   11-8  the R. B. Moore Survey, Abstract 412, in Hays County where it
   11-9  crosses the Hays County-Comal County line;
  11-10              (5)  all of the territory of Hays County contained
  11-11  within the following described area:
  11-12        Beginning on the most southern point of Hays County at the
  11-13  intersection of Hays, Comal, and Guadalupe Counties; then
  11-14  continuing in a northeasterly direction along the Hays-Guadalupe
  11-15  county line to its intersection with the Hays-Caldwell county line;
  11-16  then continuing along the Hays-Caldwell county line to an
  11-17  intersection with Farm-to-Market Road 150; then continuing in a
  11-18  northwesterly direction along Farm-to-Market Road 150 to the
  11-19  intersection with the existing southern boundary of the part of
  11-20  Hays County described in Subdivision (4) of this section; then
  11-21  continuing in a southwesterly direction along the existing southern
  11-22  boundary of the part of Hays County described in Subdivision (4) of
  11-23  this section to the intersection with the Hays-Comal county line;
  11-24  then continuing in a southerly direction along the Hays-Comal
  11-25  county line to the point of beginning;
  11-26              (6)  the part of Guadalupe County beginning at the
  11-27  Guadalupe County-Caldwell County-Hays County line at the San Marcos
   12-1  River in the northeast corner of Guadalupe County, Texas.
   12-2        THENCE southwest along the Guadalupe County-Hays County line
   12-3  to the intersect of the Guadalupe County-Hays County-Comal County
   12-4  line.
   12-5        THENCE southwest along the Guadalupe County-Comal County line
   12-6  to the intersect of the Guadalupe County-Comal County-Bexar County
   12-7  intersect at the Cibolo creek.
   12-8        THENCE south along the Guadalupe County-Bexar County line
   12-9  along the Cibolo creek to the intersect of the Guadalupe
  12-10  County-Bexar County-Wilson County line.
  12-11        THENCE south along the Guadalupe County-Wilson County line
  12-12  along the Cibolo creek to the intersect and crossing of Guadalupe
  12-13  County Road 417.
  12-14        THENCE east along Guadalupe County Road 417 to the intersect
  12-15  of Guadalupe County Road 417 and Guadalupe County Road 412.
  12-16        THENCE northeast along Guadalupe County Road 412 to the
  12-17  intersect of Guadalupe County Road 412 and Guadalupe County Road
  12-18  411 A.
  12-19        THENCE east along Guadalupe County Road 411 A to the
  12-20  intersect of Guadalupe County Road 411 A and Farm-to-Market road
  12-21  number 725.
  12-22        THENCE north along Farm-to-Market Road 725 to the intersect
  12-23  of Farm-to-Market  Road 725 and Interstate Highway 10.
  12-24        THENCE east along Interstate Highway 10 to the intersect of
  12-25  Interstate Highway 10 and State Highway 90.
  12-26        THENCE east along State Highway 90 to the Guadalupe
  12-27  County-Caldwell County line at the San Marcos river.
   13-1        THENCE northwest along the Guadalupe County-Caldwell County
   13-2  line along the San Marcos river to the place of beginning; and
   13-3              (7)  the part of Atascosa County beginning on the north
   13-4  line of the Robt. C. Rogers Survey, at the Bexar County-Atascosa
   13-5  County line, to its northwest corner, which is the northeast corner
   13-6  of the F. Brockinzen Survey, Abstract 86;
   13-7        THENCE south along the east line of said Survey passing
   13-8  through its southeast corner and continuing south along the east
   13-9  line of the F. Brockinzen Survey, Abstract 90, to its southeast
  13-10  corner;
  13-11        THENCE west along the south line of said survey to its
  13-12  southwest corner;
  13-13        THENCE north along the west line of said F. Brockinzen Survey
  13-14  to the southeast corner of the B. Bonngartner Survey, Abstract 87;
  13-15        THENCE west along the south line of said B. Bonngartner
  13-16  Survey passing through its southwest corner and continuing along
  13-17  the south line of the J. B. Goettlemann Survey, Abstract 309, to
  13-18  the Atascosa County-Medina County line;
  13-19        THENCE north along the Atascosa County-Medina County line to
  13-20  the Bexar County line;
  13-21        THENCE east along the Atascosa County-Bexar County Line to
  13-22  the place of beginning.
  13-23        SECTION 1.05.  FINDINGS RELATING TO BOUNDARIES.  The
  13-24  legislature finds that the boundaries and field notes of the
  13-25  authority form a closure.  A mistake in the field notes or in
  13-26  copying the field notes in the legislative process does not affect
  13-27  the organization, existence, or validity of the district or the
   14-1  legality or operation of the district or its governing body.
   14-2        SECTION 1.06.  FINDING OF BENEFIT.  (a)  The legislature
   14-3  finds that the water in the unique underground system of
   14-4  water-bearing formations known as the Edwards-Balcones Fault Zone
   14-5  Aquifer has a hydrologic interrelationship to the Guadalupe, San
   14-6  Antonio, San Marcos, Comal, Frio, and Nueces river basins, is the
   14-7  primary source of water for the residents of the region, and is
   14-8  vital to the general economy and welfare of this state.  The
   14-9  legislature finds that it is necessary, appropriate, and a benefit
  14-10  to the welfare of this state to provide for the management of the
  14-11  aquifer through the application of management mechanisms consistent
  14-12  with our legal system and appropriate to the aquifer system.
  14-13        (b)  The legislature further finds that the state will be
  14-14  benefitted by exercise of the powers of the authority and by the
  14-15  works and projects that are to be accomplished by the authority
  14-16  under powers conferred by Article XVI, Section 59, of the Texas
  14-17  Constitution.  The authority is created to serve a public use and
  14-18  benefit.
  14-19        SECTION 1.07.  OWNERSHIP OF UNDERGROUND WATER.  The ownership
  14-20  and rights of the owner of the land and the owner's lessees and
  14-21  assigns, including holders of recorded liens or other security
  14-22  interests in the land, in underground water and the contract rights
  14-23  of any person who purchases water for the provision of potable
  14-24  water to the public or for the resale of potable water to the
  14-25  public for any use are recognized.  However, action taken pursuant
  14-26  to this Act may not be construed as depriving or divesting the
  14-27  owner or the owner's lessees and assigns, including holders of
   15-1  recorded liens or other security interests in the land, of these
   15-2  ownership rights or as impairing the contract rights of any person
   15-3  who purchases water for the provision of potable water to the
   15-4  public or for the resale of potable water to the public for any
   15-5  use, subject to the rules adopted by the authority or a district
   15-6  exercising the powers provided by Chapter 52, Water Code.  The
   15-7  legislature intends that just compensation be paid if
   15-8  implementation of this article causes a taking of private property
   15-9  or the impairment of a contract in contravention of the Texas or
  15-10  federal constitution.
  15-11        SECTION 1.08.  GENERAL POWERS.  (a)  The authority has all of
  15-12  the powers, rights, and privileges necessary to manage, conserve,
  15-13  preserve, and protect the aquifer and to increase the recharge of,
  15-14  and prevent the waste or pollution of water in, the aquifer.  The
  15-15  authority has all of the rights, powers, privileges, authority,
  15-16  functions, and duties provided by the general law of this state,
  15-17  including Chapters 50, 51, and 52, Water Code, applicable to an
  15-18  authority created under Article XVI, Section 59, of the Texas
  15-19  Constitution.  This article prevails over any provision of general
  15-20  law that is in conflict or inconsistent with this article regarding
  15-21  the area of the authority's jurisdiction.
  15-22        (b)  The authority's powers regarding underground water apply
  15-23  only to underground water within or withdrawn from the aquifer.
  15-24  This subsection is not intended to allow the authority to regulate
  15-25  surface water.
  15-26        (c)  The authority and local governments with pollution
  15-27  control powers provided under Subchapters D and E, Chapter 26,
   16-1  Water Code, in order to prevent pollution and enforce water quality
   16-2  standards in the counties included within the authority's
   16-3  boundaries and within a buffer zone that includes all of the area
   16-4  less than five miles outside of those counties, shall apply
   16-5  pollution control regulations equally and uniformly throughout the
   16-6  area within the counties and the buffer zone.  The buffer zone does
   16-7  not include the territory within a water management district
   16-8  created under Chapter 654, Acts of the 71st Legislature, Regular
   16-9  Session, 1989.
  16-10        SECTION 1.09.  BOARD OF DIRECTORS.  (a)  The authority is
  16-11  governed by a board of nine directors.
  16-12        (b)  The board consists of:
  16-13              (1)  a member appointed by the South Central Texas
  16-14  Water Advisory Committee created by this Act;
  16-15              (2)  three residents of Bexar County, with two
  16-16  residents appointed by the governing body of the city of San
  16-17  Antonio and one resident  appointed by the Commissioners Court of
  16-18  Bexar County to represent cities and communities in the county
  16-19  other than the city of San Antonio;
  16-20              (3)  one resident of Comal County or the city of New
  16-21  Braunfels appointed by the Commissioners Court of Comal County;
  16-22              (4)  one resident of Hays County appointed by the
  16-23  governing body of the city of San Marcos;
  16-24              (5)  one resident of Medina County appointed by the
  16-25  governing body of the Medina Underground Water Conservation
  16-26  District;
  16-27              (6)  one resident of Uvalde County appointed by the
   17-1  governing body of the Uvalde Underground Water Conservation
   17-2  District; and
   17-3              (7)  one person appointed in rotation who is from
   17-4  Atascosa, Medina, or Uvalde counties, with that person appointed by
   17-5  the governing body of the Evergreen Underground Water District, by
   17-6  the Medina Underground Water Conservation District, or by the
   17-7  Uvalde County Underground Water Conservation District, with the
   17-8  person appointed by the Evergreen Underground Water District
   17-9  serving the first term, followed by a person appointed by the
  17-10  Medina Underground Water Conservation District to serve the second
  17-11  term, followed by a person  appointed by the Uvalde County
  17-12  Underground Water Conservation District to serve the third term,
  17-13  and rotating in that order of appointment for subsequent terms.
  17-14        (c)  The Commissioners Court of Bexar County and the
  17-15  governing body of the city of San Antonio shall make appointments
  17-16  under Subsection (b) of this section that accurately reflect the
  17-17  ethnic composition of the population of Bexar County.
  17-18        (d)  The initial directors of the board shall draw lots to
  17-19  determine their terms.  Four initial directors serve terms that
  17-20  expire June 1, 1995.  Five initial directors serve terms that
  17-21  expire June 1, 1997.  Subsequent directors shall be appointed to
  17-22  serve staggered four-year terms, the appropriate number of which
  17-23  expire June 1 of each odd-numbered year.
  17-24        (e)  At the initial meeting of the board, the members shall
  17-25  select one member to serve as presiding officer.  The presiding
  17-26  officer serves a term set by rule of the board not to exceed four
  17-27  years.  An act of the board is not valid unless adopted by the
   18-1  affirmative vote of a majority of the members of the board.
   18-2        (f)  A board member receives no compensation for service on
   18-3  the board but is entitled to reimbursement for actual and necessary
   18-4  expenses incurred in the performance of the member's duties.
   18-5        (g)  A board member shall hold office until a successor has
   18-6  been selected and approved and has qualified by taking the oath of
   18-7  office.
   18-8        (h)  If a vacancy on the board occurs, the governing body
   18-9  that appointed the vacating member shall appoint another person
  18-10  having the same qualifications required of the vacating member to
  18-11  serve the unexpired portion of the vacating member's term.
  18-12        SECTION 1.10.  SOUTH CENTRAL TEXAS WATER ADVISORY COMMITTEE.
  18-13  (a)  The South Central Texas Water Advisory Committee shall advise
  18-14  the board on downstream water rights and issues.  The advisory
  18-15  committee consists of one member appointed by the governing body of
  18-16  each of the following counties and municipalities, except that
  18-17  Atascosa County may not have a representative on the
  18-18  advisory  committee when the county has a representative member on
  18-19  the board:
  18-20              (1)  Atascosa;
  18-21              (2)  Caldwell;
  18-22              (3)  Calhoun;
  18-23              (4)  Comal;
  18-24              (5)  DeWitt;
  18-25              (6)  Goliad;
  18-26              (7)  Gonzales;
  18-27              (8)  Guadalupe;
   19-1              (9)  Hays;
   19-2              (10)  Karnes;
   19-3              (11)  Medina;
   19-4              (12)  Nueces;
   19-5              (13)  Refugio;
   19-6              (14)  San Patricio;
   19-7              (15)  Uvalde;
   19-8              (16)  Victoria;
   19-9              (17)  Wilson;
  19-10              (18)  the City of San Antonio;
  19-11              (19)  the City of Victoria; and
  19-12              (20)  the City of Corpus Christi.
  19-13        (b)  A member must be a resident or qualified voter of or
  19-14  engaged in business in a county all or part of which is included in
  19-15  the member's area of representation.
  19-16        (c)  The reimbursement of an advisory committee member for
  19-17  expenses is on the same terms as the reimbursement of board
  19-18  members.  An advisory committee member is not entitled to
  19-19  compensation.
  19-20        (d)  An advisory committee member holds office until a
  19-21  successor is appointed.
  19-22        (e)  The authority shall send to each advisory committee
  19-23  member all the communications of the authority that are extended to
  19-24  board members and may participate in board meetings to represent
  19-25  downstream water supply concerns and assist in solutions to those
  19-26  concerns.  Advisory committee members may not vote on a board
  19-27  decision.
   20-1        (f)  The advisory committee by resolution may request the
   20-2  board to reconsider  any board action that is considered
   20-3  prejudicial to downstream water interests.  If the board review
   20-4  does not result in a resolution satisfactory to the advisory
   20-5  committee, the advisory committee by resolution may request the
   20-6  commission to review the action.  The commission shall review the
   20-7  action and may make a recommendation to the board.  If the board
   20-8  determines that the board's action is contrary to an action of the
   20-9  commission affecting downstream interests, the board shall reverse
  20-10  itself.
  20-11        (g)  The advisory committee shall meet to organize and elect
  20-12  a presiding officer.
  20-13        (h)  The presiding officer of the advisory committee shall
  20-14  submit a report assessing the effectiveness of the authority to the
  20-15  commission and the authority by March 31 of each even-numbered
  20-16  year.  The report must assess the effect on downstream water rights
  20-17  of the management of the aquifer.  The authority shall consider the
  20-18  report in managing the authority's affairs.
  20-19        (i)  The advisory committee's duties include:
  20-20              (1)  assisting the authority in developing the
  20-21  authority's demand management plan for the county that the
  20-22  representative represents;
  20-23              (2)  assisting the authority to implement the demand
  20-24  management plan; and
  20-25              (3)  performing other duties requested by the board
  20-26  that the representative may practicably perform.
  20-27        SECTION 1.11.  GENERAL POWERS AND DUTIES OF THE BOARD AND
   21-1  AUTHORITY.  (a)  The board shall adopt rules necessary to carry out
   21-2  the authority's powers and duties under this article, including
   21-3  rules governing procedures of the board and authority.
   21-4        (b)  The authority shall ensure compliance with permitting,
   21-5  metering, and reporting requirements and shall regulate permits.
   21-6        (c)  The authority may issue orders to enforce this article
   21-7  or its rules.
   21-8        (d)  The authority may:
   21-9              (1)  issue or administer grants, loans, or other
  21-10  financial assistance to water users for water conservation and
  21-11  water reuse;
  21-12              (2)  enter into contracts;
  21-13              (3)  sue and be sued in its own name;
  21-14              (4)  receive gifts, grants, awards, and loans for use
  21-15  in carrying out its powers and duties;
  21-16              (5)  hire an executive director to be the chief
  21-17  administrator of the authority and other employees as necessary to
  21-18  carry out its powers and duties;
  21-19              (6)  delegate the power to hire employees to the
  21-20  executive director of the authority;
  21-21              (7)  own real and personal property;
  21-22              (8)  close abandoned, wasteful, or dangerous wells;
  21-23              (9)  hold permits under state law or under federal law
  21-24  pertaining to the Endangered Species Act of 1973 (16 U.S.C. Section
  21-25  1531 et seq.) and its amendments;
  21-26              (10)  enforce Chapter 32, Water Code, and commission
  21-27  rules adopted under that Act within the authority's boundaries; and
   22-1              (11)  require to be furnished to the authority water
   22-2  well drillers' logs that are required by Chapter 32, Water Code, to
   22-3  be kept and furnished to the commission.
   22-4        (e)  The authority shall make a good faith effort to award to
   22-5  minority-owned and women-owned businesses contracts issued under
   22-6  the powers and duties granted under this section in the amount of
   22-7  20 percent of the total amount of those contracts.  Not later than
   22-8  October 31 of every even-numbered year, the authority shall file
   22-9  with the governor and each house of the legislature a written
  22-10  report containing the following information for the previous two
  22-11  years for all businesses, for minority-owned and women-owned
  22-12  businesses classified by minority group and within each minority
  22-13  group classification, by gender, the total number of contracts
  22-14  issued by the authority; the total dollar amount of those
  22-15  contracts; and the total number of businesses submitting bids or
  22-16  proposals relating to such contracts and to the purpose of such
  22-17  contracts.  In this subsection:
  22-18              (1)  "Minority-owned business" means a business entity
  22-19  at least 51 percent of which is owned by members of a minority
  22-20  group or, in the case of a corporation, at least 51 percent of the
  22-21  shares of which are owned by members of a minority group, and that
  22-22  is managed and controlled by members of a minority group in its
  22-23  daily operations.
  22-24              (2)  "Minority group" includes:
  22-25                    (A)  African Americans;
  22-26                    (B)  American Indians;
  22-27                    (C)  Asian Americans; and
   23-1                    (D)  Mexican Americans and other Americans of
   23-2  Hispanic origin.
   23-3              (3)  "Women-owned business" means a business entity at
   23-4  least 51 percent of which is owned by women or, in the case of a
   23-5  corporation, at least 51 percent of the shares of which are owned
   23-6  by women, and that is managed and controlled by women in its daily
   23-7  operations.
   23-8        (f)  The authority may contract with a person who uses water
   23-9  from the aquifer for the authority or that person to construct,
  23-10  operate, own, finance, and maintain water supply facilities.
  23-11  Management fees or special fees may not be used for purchasing or
  23-12  operating these facilities.  For the purpose of this subsection,
  23-13  "water supply facility" includes a dam, reservoir, treatment
  23-14  facility, transmission facility, or recharge project.
  23-15        (g)  The authority has the power of eminent domain.  The
  23-16  authority may not acquire rights to underground water by the power
  23-17  of eminent domain.
  23-18        (h)  The authority is subject to the open meetings law,
  23-19  Chapter 271, Acts of the 60th Legislature, Regular Session, 1967
  23-20  (Article 6252-17, Vernon's Texas Civil Statutes), the open records
  23-21  law, Chapter 424, Acts of the 63rd Legislature, Regular Session,
  23-22  1973 (Article 6252-17a, Vernon's Texas Civil Statutes), and the
  23-23  Administrative Procedure and Texas Register Act (Article 6252-13a,
  23-24  Vernon's Texas Civil Statutes).
  23-25        SECTION 1.12.  SUNSET COMMISSION REVIEW.  (a)  The board is
  23-26  subject to review under Chapter 325, Government Code (Texas Sunset
  23-27  Act), but may not be abolished under that Act.  The review shall be
   24-1  conducted as if the board were scheduled to be abolished September
   24-2  1, 2005.
   24-3        (b)  Unless members of the board are continued in office
   24-4  after the review, their membership expires September 1, 2005.
   24-5        (c)  When the membership of the board of directors expires
   24-6  under Subsection (b) of this section, a new board of directors
   24-7  shall be appointed as provided by this article, with each new
   24-8  member serving for the unexpired term of the member's predecessor.
   24-9  A member whose membership has expired under Subsection (b) is not
  24-10  eligible for reappointment under this subsection.
  24-11        SECTION 1.13.  REUSE AUTHORIZED.  Any regulation of the
  24-12  withdrawal of water from the aquifer must allow for credit to be
  24-13  given for certified reuse of the water.  For regulatory credit, the
  24-14  authority or a local underground water conservation district must
  24-15  certify:
  24-16              (1)  the lawful use and reuse of aquifer water;
  24-17              (2)  the amount of aquifer water to be used; and
  24-18              (3)  the amount of aquifer withdrawals replaced by
  24-19  reuse.
  24-20        SECTION 1.14.  WITHDRAWALS.  (a)  Authorizations to withdraw
  24-21  water from the aquifer and all authorizations and rights to make a
  24-22  withdrawal under this Act shall be limited in accordance with this
  24-23  section to:
  24-24              (1)  protect the water quality of the aquifer;
  24-25              (2)  protect the water quality of the surface streams
  24-26  to which the aquifer provides springflow;
  24-27              (3)  achieve water conservation;
   25-1              (4)  maximize the beneficial use of water available for
   25-2  withdrawal from the aquifer;
   25-3              (5)  protect aquatic and wildlife habitat;
   25-4              (6)  protect species that are designated as threatened
   25-5  or endangered under applicable federal or state law; and
   25-6              (7)  provide for instream uses, bays, and estuaries.
   25-7        (b)  Except as provided by Subsections (d), (f), and (h) of
   25-8  this section and Section 1.26 of this article, for the period
   25-9  ending December 31, 2007, the amount of permitted withdrawals from
  25-10  the aquifer may not exceed 450,000 acre-feet of water for each
  25-11  calendar year.
  25-12        (c)  Except as provided by Subsections (d), (f), and (h) of
  25-13  this section and Section 1.26 of this article, for the period
  25-14  beginning January 1, 2008, the amount of permitted withdrawals from
  25-15  the aquifer may not exceed 400,000 acre-feet of water for each
  25-16  calendar year.
  25-17        (d)  If, through studies and implementation of water
  25-18  management strategies, including conservation, springflow
  25-19  augmentation, diversions downstream of the springs, reuse,
  25-20  supplemental recharge, conjunctive management of surface and
  25-21  subsurface water, and drought management plans, the authority
  25-22  determines that additional supplies are available from the aquifer,
  25-23  the authority, in consultation with appropriate state and federal
  25-24  agencies, may review and may increase the maximum amount of
  25-25  withdrawals provided by this section and set a different maximum
  25-26  amount of withdrawals.
  25-27        (e)  The authority may not allow withdrawals from the aquifer
   26-1  through wells drilled after June 1, 1993, except additional water
   26-2  as provided by Subsection (d) and then on an interruptible basis.
   26-3        (f)  If the level of the aquifer is equal to or greater than
   26-4  650 feet above mean sea level as measured at Well J-17, the
   26-5  authority may authorize withdrawal from the San Antonio pool, on an
   26-6  uninterruptible basis, of permitted amounts.  If the level of the
   26-7  aquifer is equal to or greater than 845 feet at Well J-27, the
   26-8  authority may authorize withdrawal from the Uvalde pool, on an
   26-9  uninterruptible basis, of permitted amounts.  The authority shall
  26-10  limit the additional withdrawals to ensure that springflows are not
  26-11  affected during critical drought conditions.
  26-12        (g)  The authority by rule may define other pools within the
  26-13  aquifer, in accordance with hydrogeologic research, and may
  26-14  establish index wells for any pool to monitor the level of the
  26-15  aquifer to aid the regulation of withdrawals from the pools.
  26-16        (h)  To accomplish the purposes of this article, by June 1,
  26-17  1994, the authority, through a program, shall implement and enforce
  26-18  water management practices, procedures, and methods to ensure that,
  26-19  not later than December 31, 2012, the continuous minimum
  26-20  springflows of the Comal Springs and the San Marcos Springs are
  26-21  maintained to protect endangered and threatened species to the
  26-22  extent required by federal law.  The authority from time to time as
  26-23  appropriate may revise the practices, procedures, and methods.  To
  26-24  meet this requirement, the authority shall require:
  26-25              (1)  phased reductions in the amount of water that may
  26-26  be used or withdrawn by existing users or categories of other
  26-27  users; or
   27-1              (2)  implementation of alternative management
   27-2  practices, procedures, and methods.
   27-3        SECTION 1.15.  PERMIT REQUIRED.  (a)  The authority shall
   27-4  manage withdrawals from the aquifer and shall manage all withdrawal
   27-5  points from the aquifer as provided by this Act.
   27-6        (b)  Except as provided by Sections 1.17 and 1.33 of this
   27-7  article, a person may not withdraw water from the aquifer or begin
   27-8  construction of a well or other works designed for the withdrawal
   27-9  of water from the aquifer without obtaining a permit from the
  27-10  authority.
  27-11        (c)  The authority may issue regular permits, term permits,
  27-12  and emergency permits.
  27-13        (d)  Each permit must specify the maximum rate and total
  27-14  volume of water that the water user may withdraw in a calendar
  27-15  year.
  27-16        SECTION 1.16.  DECLARATIONS OF HISTORICAL USE; INITIAL
  27-17  REGULAR PERMITS.  (a)  An existing user may apply for an initial
  27-18  regular permit by filing a declaration of historical use of
  27-19  underground water withdrawn from the aquifer during the historical
  27-20  period from June 1, 1972, through May 31, 1993.
  27-21        (b)  An existing user's declaration of historical use must be
  27-22  filed on or before March 1, 1994, on a form prescribed by the
  27-23  board.  An applicant for a permit must timely pay all application
  27-24  fees required by the board.  An owner of a well used for irrigation
  27-25  must include additional documentation of the number of acres
  27-26  irrigated during the historical period provided by Subsection (a)
  27-27  of this section.
   28-1        (c)  An owner of a well from which the water will be used
   28-2  exclusively for domestic use or watering livestock and that is
   28-3  exempt under Section 1.33 of this article is not required to file a
   28-4  declaration of historical use.
   28-5        (d)  The board shall grant an initial regular permit to an
   28-6  existing user who:
   28-7              (1)  files a declaration and pays fees as required by
   28-8  this section; and
   28-9              (2)  establishes by convincing evidence beneficial use
  28-10  of underground water from the aquifer.
  28-11        (e)  To the extent water is available for permitting, the
  28-12  board shall issue the existing user a permit for withdrawal of an
  28-13  amount of water equal to the user's maximum beneficial use of water
  28-14  without waste during any one calendar year of the historical
  28-15  period.  If a water user does not have historical use for a full
  28-16  year, then the authority shall issue a permit for withdrawal based
  28-17  on an amount of water that would normally be beneficially used
  28-18  without waste for the intended purpose for a calendar year.  If the
  28-19  total amount of water determined to have been beneficially used
  28-20  without waste under this subsection exceeds the amount of water
  28-21  available for permitting, the authority shall adjust the amount of
  28-22  water authorized for withdrawal under the permits proportionately
  28-23  to meet the amount available for permitting.  An existing
  28-24  irrigation user shall receive a permit for not less than two
  28-25  acre-feet a year for each  acre of land the user actually irrigated
  28-26  in any one calendar year during the historical period.  An existing
  28-27  user who has operated a well for three or more years during the
   29-1  historical period shall receive a permit for at least the average
   29-2  amount of water withdrawn annually during the historical period.
   29-3        (f)  The board by rule shall consider the equitable treatment
   29-4  of a person whose historic use has been affected by a requirement
   29-5  of or participation in a federal program.
   29-6        (g)  The authority shall issue an initial regular permit
   29-7  without a term, and an initial regular permit remains in effect
   29-8  until the permit is abandoned, cancelled, or retired.
   29-9        (h)  The board shall notify each permit holder that the
  29-10  permit is subject to limitations as provided by this article.
  29-11        SECTION 1.17.  INTERIM AUTHORIZATION.  (a)  A person who, on
  29-12  the effective date of this article, owns a producing well that
  29-13  withdraws water from the aquifer may continue to withdraw and
  29-14  beneficially use water without waste until final action on permits
  29-15  by the authority, if:
  29-16              (1)  the well is in compliance with all statutes and
  29-17  rules relating to well construction, approval, location, spacing,
  29-18  and operation; and
  29-19              (2)  by March 1, 1994, the person files a declaration
  29-20  of historical use on a form as required by the authority.
  29-21        (b)  Use under interim authorization may not exceed on an
  29-22  annual basis the historical, maximum, beneficial use of water
  29-23  without waste during any one calendar year as evidenced by the
  29-24  person's declaration of historical use calculated in accordance
  29-25  with Subsection (e) of Section 1.16 of this article, unless that
  29-26  amount is otherwise determined by the authority.
  29-27        (c)  Use under this section is subject to the authority's
   30-1  comprehensive management plan and  rules adopted by the authority.
   30-2        (d)  Interim authorization for a well under this section ends
   30-3  on:
   30-4              (1)  entry of a final and appealable order by the
   30-5  authority acting on the application for the well; or
   30-6              (2)  March 1, 1994, if the well owner has not filed a
   30-7  declaration of historical use.
   30-8        SECTION 1.18.  ADDITIONAL REGULAR PERMITS.  (a)  To the
   30-9  extent water is available for permitting after the issuance of
  30-10  permits to existing users, the authority may issue additional
  30-11  regular permits, subject to limits on the total amount of permitted
  30-12  withdrawals determined under Section 1.14 of this article.
  30-13        (b)  The authority may not consider or take action on an
  30-14  application relating to a proposed or existing well of which there
  30-15  is no evidence of actual beneficial use before June 1, 1993, until
  30-16  a final determination has been made on all initial regular permit
  30-17  applications submitted on or before the initial application date of
  30-18  March 1, 1994.
  30-19        SECTION 1.19.  TERM PERMITS.  (a)  The authority may issue
  30-20  interruptible term permits for withdrawal for any period the
  30-21  authority considers feasible, but may not issue a term permit for a
  30-22  period of more than 10 years.
  30-23        (b)  A holder of a term permit may not withdraw water from
  30-24  the San Antonio pool of the aquifer unless the level of the aquifer
  30-25  is higher than 665 feet above sea level, as measured at Well J-17.
  30-26        (c)  A holder of a term permit may not withdraw water from
  30-27  the Uvalde pool  of the aquifer unless the level of the aquifer is
   31-1  higher than 865 feet above sea level, as measured at Well J-27.
   31-2        SECTION 1.20.  EMERGENCY PERMITS.  (a)  Emergency permits may
   31-3  be issued only to prevent the loss of life or to prevent severe,
   31-4  imminent threats to the public health or safety.
   31-5        (b)  The term of an emergency permit may not exceed 30 days,
   31-6  unless renewed.
   31-7        (c)  The board may renew an emergency permit.
   31-8        (d)  The holder of an emergency permit may withdraw water
   31-9  from the aquifer without regard to its effect on other permit
  31-10  holders.
  31-11        SECTION 1.21.  PERMIT RETIREMENT.  (a)  The authority shall
  31-12  prepare and implement a plan for reducing, by January 1, 2008, the
  31-13  maximum annual volume of water authorized to be withdrawn from the
  31-14  aquifer under regular permits to 400,000 acre-feet a year or the
  31-15  adjusted amount determined under Subsection (d) of Section 1.14 of
  31-16  this article.
  31-17        (b)  The plan must be enforceable and must include water
  31-18  conservation and reuse measures, measures to retire water rights,
  31-19  and other water management measures designed to achieve the
  31-20  reduction levels or appropriate management of the resource.
  31-21        (c)  If, on or after January 1, 2008, the overall volume of
  31-22  water authorized to be withdrawn from the aquifer under regular
  31-23  permits is greater than 400,000 acre-feet a year or greater than
  31-24  the adjusted amount determined under Subsection (d) of Section 1.14
  31-25  of this article, the maximum authorized withdrawal of each regular
  31-26  permit shall be immediately reduced by an equal percentage as is
  31-27  necessary to reduce overall maximum demand to 400,000 acre-feet a
   32-1  year or the adjusted amount, as appropriate.  The amount reduced
   32-2  may be restored, in whole or in part, as other appropriate measures
   32-3  are implemented that maintain overall demand at or below the
   32-4  appropriate amount.
   32-5        SECTION 1.22.  ACQUISITION OF RIGHTS.  (a)  The authority may
   32-6  acquire permitted rights to use water from the aquifer for the
   32-7  purposes of:
   32-8              (1)  holding those rights in trust for sale or transfer
   32-9  of the water or the rights to persons within the authority's
  32-10  jurisdiction who may use water from the aquifer;
  32-11              (2)  holding those rights in trust as a means of
  32-12  managing overall demand on the aquifer;
  32-13              (3)  holding those rights for resale or retirement as a
  32-14  means of complying with pumping reduction requirements under this
  32-15  article; or
  32-16              (4)  retiring those rights, including those rights
  32-17  already permitted.
  32-18        (b)  The authority may acquire and hold permits or rights to
  32-19  appropriate surface water or groundwater from sources inside or
  32-20  outside of the authority's boundaries.
  32-21        (c)  Notwithstanding any other provisions of law, the
  32-22  authority's acquisition of permitted rights to use water from the
  32-23  aquifer is eligible for financial assistance from:
  32-24              (1)  the water supply account of the Texas Water
  32-25  Development Fund under Subchapter D, Chapter 17, Water Code;
  32-26              (2)  the water loan assistance fund under Subchapter C,
  32-27  Chapter 15, Water Code; and
   33-1              (3)  the revenue bond program under Subchapter I,
   33-2  Chapter 17, Water Code.
   33-3        SECTION 1.23.  CONSERVATION AND REUSE PLANS.  (a)  The
   33-4  authority may require holders of regular permits and holders of
   33-5  term permits to submit water conservation plans and, if
   33-6  appropriate, reuse plans for review and approval by the authority.
   33-7  The board by rule shall  require a plan to be implemented after a
   33-8  reasonable time after a plan's approval.
   33-9        (b)  The board shall assist users in developing conservation
  33-10  or reuse plans.
  33-11        (c)  The authority biennially shall prepare and update
  33-12  enforceable and effective conservation and reuse plans as required
  33-13  by this article.  Not later than January 1 of each odd-numbered
  33-14  year the authority shall submit the plan to the legislature.
  33-15        SECTION 1.24.  LOANS AND GRANTS.  (a)  Notwithstanding any
  33-16  other provision of law, the authority is eligible as a lender
  33-17  district to receive loans from the Texas Water Development Board
  33-18  under the agricultural water conservation bond program under
  33-19  Subchapter J, Chapter 17, Water Code.
  33-20        (b)  The authority may apply for, request, solicit, contract
  33-21  for, receive, and accept gifts, grants, and other assistance from
  33-22  any source for the purposes of this article.
  33-23        (c)  The authority may issue grants or make loans to finance
  33-24  the purchase or installation of equipment or facilities.  If the
  33-25  authority issues a grant for a water conservation, reuse, or water
  33-26  management project, the authority may require the beneficiary to
  33-27  transfer to the authority permitted rights to aquifer water equal
   34-1  to a portion of the water conserved or made available by the
   34-2  project.
   34-3        SECTION 1.25.  COMPREHENSIVE MANAGEMENT PLAN.
   34-4  (a)  Consistent with Section 1.14 of this article, the authority
   34-5  shall develop, by September 1, 1995,  and implement a comprehensive
   34-6  water management plan that includes conservation, future supply,
   34-7  and demand management plans.  The authority may not delegate the
   34-8  development of the plan under Section 1.42 of this article.
   34-9        (b)  The authority, in conjunction with the South Central
  34-10  Texas Water Advisory Committee, the Texas Water Development Board,
  34-11  and underground water conservation districts within the authority's
  34-12  boundaries, shall develop a 20-year plan for providing alternative
  34-13  supplies of water to the region, with five-year goals and
  34-14  objectives, to be implemented by the authority and reviewed
  34-15  annually by the appropriate state agencies and the Edwards Aquifer
  34-16  Legislative Oversight Committee.  The authority, advisory
  34-17  committee, Texas Water Development Board, and districts, in
  34-18  developing the plan, shall:
  34-19              (1)  thoroughly investigate all alternative
  34-20  technologies;
  34-21              (2)  investigate mechanisms for providing financial
  34-22  assistance for alternative supplies through the Texas Water
  34-23  Development Board; and
  34-24              (3)  perform a cost-benefit analysis and an
  34-25  environmental analysis.
  34-26        SECTION 1.26.  CRITICAL PERIOD MANAGEMENT PLAN.  The
  34-27  authority shall prepare and coordinate implementation of a plan for
   35-1  critical period management on or before September 1, 1995.  The
   35-2  mechanisms must:
   35-3              (1)  distinguish between discretionary use and
   35-4  nondiscretionary use;
   35-5              (2)  require reductions of all discretionary use to the
   35-6  maximum extent feasible;
   35-7              (3)  require utility pricing, to the maximum extent
   35-8  feasible, to limit discretionary use by the customers of water
   35-9  utilities; and
  35-10              (4)  require reduction of nondiscretionary use by
  35-11  permitted or contractual users, to the extent further reductions
  35-12  are necessary, in the reverse order of the following water use
  35-13  preferences:
  35-14                    (A)  municipal, domestic, and livestock;
  35-15                    (B)  industrial and crop irrigation;
  35-16                    (C)  residential landscape irrigation;
  35-17                    (D)  recreational and pleasure; and
  35-18                    (E)  other uses that are authorized by law.
  35-19        SECTION 1.27.  RESEARCH.  (a)  The authority shall complete
  35-20  research on the technological feasibility of springflow enhancement
  35-21  and yield enhancement that, immediately before September 1, 1993,
  35-22  is being conducted by the Edwards Underground Water District.
  35-23        (b)  The authority may conduct research to:
  35-24              (1)  augment the springflow, enhance the recharge, and
  35-25  enhance the yield of the aquifer;
  35-26              (2)  monitor and protect water quality;
  35-27              (3)  manage water resources, including water
   36-1  conservation, water use and reuse, and drought management measures;
   36-2  and
   36-3              (4)  develop alternative supplies of water for users.
   36-4        (c)  The authority may schedule demonstration projects for
   36-5  purposes of Subsection (b)(1) of this section.
   36-6        (d)  The authority may contract with other persons to conduct
   36-7  research.
   36-8        SECTION 1.28.  TAX; BONDS.  (a)  The authority may not levy a
   36-9  property tax.
  36-10        (b)  The authority may issue revenue bonds to finance the
  36-11  purchase of land or the purchase, construction, or installation of
  36-12  facilities or equipment.  The authority may not allow for any
  36-13  person to construct, acquire, or own facilities for transporting
  36-14  groundwater out of Uvalde County or Medina County.
  36-15        (c)  Bonds issued by the authority are subject to review and
  36-16  approval of the attorney general and the commission.  If the
  36-17  attorney general finds that the bonds have been authorized in
  36-18  accordance with the law, the attorney general shall approve them,
  36-19  and the comptroller of public accounts shall register the bonds.
  36-20  Following approval and registration, the bonds are incontestable
  36-21  and are binding obligations according to their terms.
  36-22        (d)  The authority board may organize proceeds of the bonds
  36-23  into funds and accounts and may invest the proceeds as the
  36-24  authority board determines is appropriate.
  36-25        SECTION 1.29.  FEES.  (a)  The cost of reducing withdrawals
  36-26  or permit retirements must be borne:
  36-27              (1)  solely by users of the aquifer for reducing
   37-1  withdrawals from the level on the effective date of this article to
   37-2  450,000 acre-feet a year, or the adjusted amount determined under
   37-3  Subsection (d) of Section 1.14 of this article for the period
   37-4  ending December 31, 2007; and
   37-5              (2)  equally by aquifer users and downstream water
   37-6  rights holders for permit retirements from 450,000 acre-feet a
   37-7  year, or the adjusted amount determined under Subsection (d) of
   37-8  Section 1.14 of this article for the period ending December 31,
   37-9  2007, to 400,000 acre-feet a year, or the adjusted amount
  37-10  determined under Subsection (d) of Section 1.14 of this article,
  37-11  for the period beginning January 1, 2008.
  37-12        (b)  The authority shall assess equitable aquifer management
  37-13  fees based on aquifer use under the water management plan to
  37-14  finance its administrative expenses and programs authorized under
  37-15  this article.  Each water district governed by Chapter 52, Water
  37-16  Code, that is within the authority's boundaries may contract with
  37-17  the authority to pay expenses of the authority through taxes in
  37-18  lieu of user fees to be paid by water users in the district.  The
  37-19  contract must provide that the district will pay an amount equal to
  37-20  the amount that the water users in the district would have paid
  37-21  through user fees.  The authority may not collect a total amount of
  37-22  fees and taxes that is more than is reasonably necessary for the
  37-23  administration of the authority.
  37-24        (c)  The authority shall also assess an equitable special fee
  37-25  based on permitted aquifer water rights to be used only to finance
  37-26  the retirement of rights necessary to meet the goals provided by
  37-27  Section 1.21 of this article.  The authority shall set the
   38-1  equitable special fees on permitted aquifer users at a level
   38-2  sufficient to match the funds raised from the assessment of
   38-3  equitable special fees on downstream water rights holders.
   38-4        (d)  The commission shall assess equitable special fees on
   38-5  all downstream water rights holders in the Guadalupe River Basin to
   38-6  be used solely to finance the retirement of aquifer rights
   38-7  necessary to meet the goals provided by Section 1.21 of this
   38-8  article.  Fees assessed under this subsection may not exceed
   38-9  one-half of the cost of permit retirements from 450,000 acre-feet a
  38-10  year,  or the adjusted amount determined under Subsection (d) of
  38-11  Section 1.14 of this article, for the period ending December 31,
  38-12  2007, to 400,000 acre-feet a year for the period beginning January
  38-13  1, 2008.  The authority shall report to the commission the
  38-14  estimated costs of the retirements.  The amount of fees assessed
  38-15  under this subsection shall be determined in accordance with rules
  38-16  adopted by the commission for fees under the South Texas
  38-17  watermaster program with adjustments as necessary to ensure that
  38-18  fees are equitable between users, including priority and
  38-19  nonpriority hydroelectric users.  A downstream water rights holder
  38-20  shall pay fees assessed under this subsection to the authority.  A
  38-21  fee may not be assessed by the commission under this subsection on
  38-22  contractual deliveries of water stored in Canyon Lake that may be
  38-23  diverted downstream of the San Marcos Springs or Canyon Dam.  A
  38-24  person or entity making a contractual sale of water stored upstream
  38-25  of Canyon Dam may not establish a systemwide rate that requires
  38-26  purchasers of upstream-stored water to pay the special fee assessed
  38-27  under this subsection.
   39-1        (e)  In developing an equitable fee structure under this
   39-2  section, the authority may establish different fee rates on a per
   39-3  acre-foot basis for different types of use.  The fees must be
   39-4  equitable between types of uses.  The fee rate for agricultural use
   39-5  shall be based on the volume of water withdrawn and may not be more
   39-6  than 20 percent of the fee rate for municipal use.  The authority
   39-7  shall assess the fees on the amount of water a permit holder is
   39-8  authorized to withdraw under the permit.
   39-9        (f)  The authority shall impose a permit application fee not
  39-10  to exceed $25.
  39-11        (g)  The authority may impose a registration application fee
  39-12  not to exceed $10.
  39-13        (h)  Special fees collected under Subsection (c) or (d) of
  39-14  this section may not be used to finance a surface water supply
  39-15  reservoir project.
  39-16        (i)  The authority shall provide money as necessary, but not
  39-17  to exceed five percent of the money collected under Subsection (d)
  39-18  of this section, to finance the South Central Texas Water Advisory
  39-19  Committee's administrative expenses and programs authorized under
  39-20  this article.
  39-21        SECTION 1.30.  RIVER DIVERSIONS.  (a)  The commission may
  39-22  issue to an applicant a special permit to divert water from the
  39-23  Guadalupe River from a diversion point on the river downstream of
  39-24  the point where the river emerges as a spring.
  39-25        (b)  A permit issued to a person under this section must
  39-26  condition the diversion of water from the Guadalupe River on a
  39-27  limitation of withdrawals under the person's permit to withdraw
   40-1  water from the aquifer.
   40-2        (c)  A permit issued under this section must provide that the
   40-3  permit holder may divert water from the Guadalupe River only if:
   40-4              (1)  the diversion is made instead of a withdrawal from
   40-5  the aquifer to enhance the yield of the aquifer; and
   40-6              (2)  the diversion does not impair senior water rights
   40-7  or vested riparian rights.
   40-8        (d)  A permit issued in accordance with this section is
   40-9  subordinate to permitted water rights for which applications were
  40-10  submitted before May 31, 1993, and vested riparian rights.
  40-11        (e)  Sections 11.028 and 11.033, Water Code, do not apply to
  40-12  a permit issued under this section.
  40-13        SECTION 1.31.  MEASURING DEVICES.  (a)  The owner of a
  40-14  nonexempt well that withdraws water from the aquifer shall install
  40-15  and maintain a measuring device approved by the authority designed
  40-16  to indicate the flow rate and cumulative amount of water withdrawn
  40-17  by that well.  This requirement may be waived by the authority on
  40-18  written request by a well owner to use an alternative method of
  40-19  determining the amount of water withdrawn.
  40-20        (b)  The authority is responsible for the costs of
  40-21  purchasing, installing, and maintaining measuring devices, if
  40-22  required, for an irrigation well in existence on September 1, 1993.
  40-23        SECTION 1.32.  REPORTS.  Not later than March 1 of each year,
  40-24  and on a form prescribed by the authority, each holder of a permit
  40-25  shall file with the authority a written report of water use for the
  40-26  preceding calendar year.
  40-27        SECTION 1.33.  WELL METERING EXEMPTION.  (a)  A well that
   41-1  produces 25,000 gallons of water a day or less for domestic or
   41-2  livestock use is exempt from metering requirements.
   41-3        (b)  Exempt wells must register with the authority or with an
   41-4  underground water conservation district in which the well is
   41-5  located.
   41-6        (c)  A well within or serving a subdivision requiring
   41-7  platting does not qualify for an exempt use.
   41-8        SECTION 1.34.  TRANSFER OF RIGHTS.  (a)  Water withdrawn from
   41-9  the aquifer must be used within the boundaries of the authority.
  41-10        (b)  The authority by rule may establish a procedure by which
  41-11  a person who installs water conservation equipment may sell the
  41-12  water conserved.
  41-13        (c)  A permit holder may lease permitted water rights, but a
  41-14  holder of a permit for irrigation use may not lease more than 50
  41-15  percent of the irrigation rights initially permitted.  The user's
  41-16  remaining irrigation water rights must be used in accordance with
  41-17  the original permit and must pass with transfer of the irrigated
  41-18  land.
  41-19        SECTION 1.35.  PROHIBITIONS.  (a)  A person may not withdraw
  41-20  water from the aquifer except as authorized by a permit issued by
  41-21  the authority or by this article.
  41-22        (b)  A person holding a permit issued by the authority may
  41-23  not violate the terms or conditions of the permit.
  41-24        (c)  A person may not waste water withdrawn from the aquifer.
  41-25        (d)  A person may not pollute or contribute to the pollution
  41-26  of the aquifer.
  41-27        (e)  A person may not violate this article or a rule of the
   42-1  authority adopted under this article.
   42-2        SECTION 1.36.  ENFORCEMENT.  (a)  The authority may enter
   42-3  orders to enforce the terms and conditions of permits, orders, or
   42-4  rules issued or adopted under this article.
   42-5        (b)  The authority by rule shall provide for the suspension
   42-6  of a permit of any class for a failure to pay a required fee or a
   42-7  violation of a permit condition or order of the authority or a rule
   42-8  adopted by the authority.
   42-9        SECTION 1.37.  ADMINISTRATIVE PENALTY.  (a)  The authority
  42-10  may assess an administrative penalty against a person who violates
  42-11  this article or a rule adopted or order issued under this article
  42-12  in an amount of not less than $100 or more than $1,000 for each
  42-13  violation and for each day of a continuing violation.
  42-14        (b)  In determining the amount of the penalty, the authority
  42-15  shall consider:
  42-16              (1)  the history of previous violations;
  42-17              (2)  the amount necessary to deter future violations;
  42-18              (3)  efforts to correct the violation;
  42-19              (4)  enforcement costs relating to the violation; and
  42-20              (5)  any other matters that justice may require.
  42-21        (c)  If after an examination of the facts the authority
  42-22  concludes that the person did commit a violation, the authority may
  42-23  issue a preliminary report stating the facts on which it based its
  42-24  conclusion, recommending that an administrative penalty under this
  42-25  section be imposed, and recommending the amount of the proposed
  42-26  penalty.
  42-27        (d)  The authority shall give written notice of the report to
   43-1  the person charged with committing the violation.  The notice must
   43-2  include a brief summary of the facts, a statement of the amount of
   43-3  the recommended penalty, and a statement of the person's right to
   43-4  an informal review of the occurrence of the violation, the amount
   43-5  of the penalty, or both.
   43-6        (e)  Not later than the 10th day after the date on which the
   43-7  person charged with committing the violation receives the notice,
   43-8  the person may either give the authority written consent to the
   43-9  report, including the recommended penalty, or make a written
  43-10  request for an informal review by the authority.
  43-11        (f)  If the person charged with committing the violation
  43-12  consents to the penalty recommended by the authority or fails
  43-13  timely to request an informal review, the authority shall assess
  43-14  the penalty.  The authority shall give the person written notice of
  43-15  its action.  The person shall pay the penalty not later than the
  43-16  30th day after the date on which the person receives the notice.
  43-17        (g)  If the person charged with committing a violation
  43-18  requests an informal review as provided by Subsection (e) of this
  43-19  section, the authority shall conduct the review.  The authority
  43-20  shall give the person written notice of the results of the review.
  43-21        (h)  Not later than the 10th day after the date on which the
  43-22  person charged with committing the violation receives the notice
  43-23  prescribed by Subsection (g) of this section, the person may make
  43-24  to the authority a written request for a hearing.
  43-25        (i)  If, after informal review, a person who has been ordered
  43-26  to pay a penalty fails to request a formal hearing in a timely
  43-27  manner, the authority shall assess the penalty.  The authority
   44-1  shall give the person written notice of its action.  The person
   44-2  shall pay the penalty not later than the 30th day after the date on
   44-3  which the person receives the notice.
   44-4        (j)  Within 30 days after the date the authority's order is
   44-5  final as provided by Subsection (c), Section 16, Administrative
   44-6  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
   44-7  Civil Statutes), the person shall:
   44-8              (1)  pay the amount of the penalty;
   44-9              (2)  pay the amount of the penalty and file a petition
  44-10  for judicial review contesting the occurrence of the violation, the
  44-11  amount of the penalty, or both the occurrence of the violation and
  44-12  the amount of the penalty; or
  44-13              (3)  without paying the amount of the penalty, file a
  44-14  petition for judicial review contesting the occurrence of the
  44-15  violation, the amount of the penalty, or both the occurrence of the
  44-16  violation and the amount of the penalty.
  44-17        (k)  Within the 30-day period, a person who acts under
  44-18  Subdivision (3) of Subsection (j) of this section may:
  44-19              (1)  stay enforcement of the penalty by:
  44-20                    (A)  paying the amount of the penalty to the
  44-21  court for placement in an escrow account; or
  44-22                    (B)  giving to the court a supersedeas bond
  44-23  approved by the court for the amount of the penalty and that is
  44-24  effective until all judicial review of the authority's order is
  44-25  final; or
  44-26              (2)  request the court to stay enforcement of the
  44-27  penalty by:
   45-1                    (A)  filing with the court a sworn affidavit of
   45-2  the person stating that the person is financially unable to pay the
   45-3  amount of the penalty and is financially unable to give the
   45-4  supersedeas bond; and
   45-5                    (B)  giving a copy of the affidavit to the
   45-6  authority by certified mail.
   45-7        (l)  If the authority receives a copy of an affidavit under
   45-8  Subdivision (2) of Subsection (k) of this section, it may file with
   45-9  the court within five days after the date the copy is received a
  45-10  contest to the affidavit.  The court shall hold a hearing on the
  45-11  facts alleged in the affidavit as soon as practicable and shall
  45-12  stay the enforcement of the penalty on finding that the alleged
  45-13  facts are true.  The person who files an affidavit has the burden
  45-14  of proving that the person is financially unable to pay the amount
  45-15  of the penalty and to give a supersedeas bond.
  45-16        (m)  If the person does not pay the amount of the penalty and
  45-17  the enforcement of the penalty is not stayed, the authority may
  45-18  refer the matter to the attorney general for collection of the
  45-19  amount of the penalty.
  45-20        (n)  Judicial review of the order of the authority:
  45-21              (1)  is instituted by filing a petition as provided by
  45-22  Section 19, Administrative Procedure and Texas Register Act
  45-23  (Article 6252-13a, Vernon's Texas Civil Statutes); and
  45-24              (2)  is under the substantial evidence rule.
  45-25        (o)  If the court sustains the occurrence of the violation,
  45-26  the court may uphold or reduce the amount of the penalty and order
  45-27  the person to pay the full or reduced amount of the penalty.  If
   46-1  the court does not sustain the occurrence of the violation, the
   46-2  court shall order that no penalty is owed.
   46-3        (p)  When the judgment of the court becomes final, the court
   46-4  shall proceed under this subsection.  If the person paid the amount
   46-5  of the penalty and if that amount is reduced or is not upheld by
   46-6  the court, the court shall order that the appropriate amount plus
   46-7  accrued interest be remitted to the person.  The rate of the
   46-8  interest is the rate charged on loans to depository institutions by
   46-9  the New York Federal Reserve Bank, and the interest shall be paid
  46-10  for the period beginning on the date the penalty was paid and
  46-11  ending on the date the penalty is remitted.  If the person gave a
  46-12  supersedeas bond and if the amount of the penalty is not upheld by
  46-13  the court, the court shall order the release of the bond.  If the
  46-14  person gave a supersedeas bond and if the amount of the penalty is
  46-15  reduced, the court shall order the release of the bond after the
  46-16  person pays the amount.
  46-17        (q)  A penalty collected under this section shall be remitted
  46-18  to the authority.
  46-19        (r)  All proceedings under this section are subject to the
  46-20  Administrative Procedure and Texas Register Act (Article 6252-13a,
  46-21  Vernon's Texas Civil Statutes).
  46-22        SECTION 1.38.  INJUNCTION BY AUTHORITY.  The authority may
  46-23  file a civil suit in a state district court for an injunction to
  46-24  enforce this article.  The authority may recover reasonable
  46-25  attorney fees in a suit under this section.
  46-26        SECTION 1.39.  SUIT FOR MANDAMUS.  The commission may file a
  46-27  civil suit for an order of mandamus against the authority to compel
   47-1  the authority to perform its duties under this article or to compel
   47-2  the authority to enforce this article against a violator.  The
   47-3  commission may recover attorney fees from the authority in a suit
   47-4  under this section.
   47-5        SECTION 1.40.  CIVIL PENALTY.  (a)  The commission or
   47-6  authority may file a civil action in state district court for a
   47-7  civil penalty for a violation of this article or a rule adopted or
   47-8  permit or order issued under this article.
   47-9        (b)  The commission or authority may recover a civil penalty
  47-10  of not less than $100 or more than $10,000 for each violation and
  47-11  for each day of violation and attorney fees.
  47-12        (c)  A civil penalty or attorney fees collected by the
  47-13  authority under this section shall be paid to the authority.
  47-14        (d)  A civil penalty or attorney fees collected by the
  47-15  commission under this section shall be deposited to the credit of
  47-16  the general revenue fund.
  47-17        SECTION 1.41.  REPEALER; TRANSFERS; RULES.  (a)  Chapter 99,
  47-18  Acts of the 56th Legislature, Regular Session, 1959 (Article
  47-19  8280-219, Vernon's Texas Civil Statutes), is repealed, and the
  47-20  Edwards Underground Water District is abolished.
  47-21        (b)  All files and records of the Edwards Underground Water
  47-22  District pertaining to control, management, and operation of the
  47-23  district are transferred from the Edwards Underground Water
  47-24  District to the authority on the effective date of this article.
  47-25        (c)  All real and personal property, leases, rights,
  47-26  contracts, staff, and obligations of the Edwards Underground Water
  47-27  District are transferred to the authority on the effective date of
   48-1  this article.
   48-2        (d)  On September 1, 1993, all unobligated and unexpended
   48-3  funds of the Edwards Underground Water District shall be
   48-4  transferred to the authority.
   48-5        (e)  A rule adopted by the Edwards Underground Water District
   48-6  before the effective date of this article that relates to
   48-7  management or control of the aquifer is, on the effective date of
   48-8  this article, a rule of the  authority and remains in effect until
   48-9  amended or repealed by the authority.
  48-10        (f)  The authority shall be automatically substituted for the
  48-11  Edwards Underground Water District in any judicial or
  48-12  administrative proceeding to which, on the effective date of this
  48-13  article, the Edwards Underground Water District is a party.
  48-14        SECTION 1.42.  EFFECT ON OTHER DISTRICTS.  (a)  An
  48-15  underground water conservation district other than the authority
  48-16  may manage and control water that is a part of the aquifer after
  48-17  the effective date of this article only as provided in this
  48-18  section.  This article does not affect a water reclamation or
  48-19  conservation district that manages and controls only water from a
  48-20  resource other than the aquifer.
  48-21        (b)  An underground water conservation district other than
  48-22  the authority may manage and control water that is a part of the
  48-23  aquifer to the extent that those management activities do not
  48-24  conflict with and are not duplicative of this article or the rules
  48-25  and orders of the authority.
  48-26        (c)  Except as otherwise provided by this article, the board
  48-27  may delegate the powers and duties granted to it under this
   49-1  article.  The board shall delegate all or part of its powers or
   49-2  duties to an underground water conservation district on the
   49-3  district's request if the district demonstrates to the satisfaction
   49-4  of the board that:
   49-5              (1)  the district has statutory powers necessary for
   49-6  full enforcement of the rules and orders to be delegated;
   49-7              (2)  the district has implemented all rules and
   49-8  policies necessary to fully implement the programs to be delegated;
   49-9  and
  49-10              (3)  the district has implemented a system designed to
  49-11  provide the authority with adequate information with which to
  49-12  monitor the adequacy of the district's performance in enforcing
  49-13  board rules and orders.
  49-14        (d)  In making the determination under Subsection (c) of this
  49-15  section, the board may consider the district's past performance and
  49-16  experience in enforcing powers and duties delegated to it by the
  49-17  board.  The board may deny a request for delegation of powers or
  49-18  duties by a district if the district has previously had a
  49-19  delegation terminated under Subsection (e) of this section.
  49-20        (e)  If the authority determines that a district has failed
  49-21  adequately to enforce or implement any rules or orders delegated
  49-22  under this section, the authority immediately shall provide to the
  49-23  district notice that sets forth the reasons for its determination
  49-24  and the actions that the district must take to retain the delegated
  49-25  authority.  Not later than the 10th day after the date the notice
  49-26  is given, the district must demonstrate its commitment and ability
  49-27  to take the actions set forth in the notice.  If, at the end of the
   50-1  10-day period, the authority does not find that the district will
   50-2  adequately enforce its rules and orders, the authority immediately
   50-3  shall resume full responsibility for implementation and enforcement
   50-4  of those rules and orders.  The authority shall provide to the
   50-5  district notice that the delegation of authority to it has been
   50-6  terminated.  After the termination notice is given, the authority
   50-7  of the district to manage or control water in the aquifer is
   50-8  limited to the authority granted by Subsection (b) of this section.
   50-9        SECTION 1.43.  CREATION OF UNDERGROUND WATER CONSERVATION
  50-10  DISTRICT.  An underground water conservation district may be
  50-11  created in any county affected by this article as provided by
  50-12  Subchapter B, Chapter 52, Water Code.
  50-13        SECTION 1.44.  COOPERATIVE CONTRACTS FOR ARTIFICIAL RECHARGE.
  50-14  (a)  The authority may contract with any political subdivision of
  50-15  the state under Chapter 791, Government Code, to provide for
  50-16  artificial recharge of the aquifer, through injection wells or with
  50-17  surface water subject to the control of the political subdivision,
  50-18  for the subsequent retrieval of the water by the political
  50-19  subdivision or its authorized assignees for beneficial use within
  50-20  the authority.
  50-21        (b)  The authority may not unreasonably deny a request to
  50-22  enter into a cooperative contract under this section if the
  50-23  political subdivision agrees to:
  50-24              (1)  file with the authority records of the injection
  50-25  or artificial recharge of the aquifer; and
  50-26              (2)  provide for protection of the quality of the
  50-27  aquifer water and of the rights of aquifer users in designating the
   51-1  location of injection wells or recharge dams, the methods of
   51-2  injection or recharge, and the location and type of retrieval
   51-3  wells.
   51-4        (c)  The political subdivision causing artificial recharge of
   51-5  the aquifer is entitled to withdraw during any 12-month period the
   51-6  measured amount of water actually injected or artificially
   51-7  recharged during the preceding 12-month period, as demonstrated and
   51-8  established by expert testimony, less an amount determined by the
   51-9  authority to:
  51-10              (1)  account for that part of the artificially
  51-11  recharged water discharged through springs; and
  51-12              (2)  compensate the authority in lieu of users' fees.
  51-13        (d)  The amounts of water withdrawn under this section are
  51-14  not subject to the maximum total permitted withdrawals provided by
  51-15  Section 1.14 of this article.
  51-16        SECTION 1.45.  RECHARGE DAMS.  (a)  The authority may build
  51-17  or operate recharge dams in the recharge area of the aquifer if the
  51-18  recharge is made to increase the yield of the aquifer and the
  51-19  recharge project does not impair senior water rights or vested
  51-20  riparian rights.
  51-21        (b)  The commission shall determine the historic yield of the
  51-22  floodwater to the Nueces River basin.  The historic yield is equal
  51-23  to the lesser of:
  51-24              (1)  the average annual yield for the period from 1950
  51-25  to 1987; or
  51-26              (2)  the annual yield for 1987.
  51-27        (c)  Only the amount of floodwater in excess of the historic
   52-1  yield as determined by the commission may be impounded by a
   52-2  recharge dam built or operated under this section.
   52-3                               ARTICLE 2
   52-4        SECTION 2.01.  DEFINITION.  In this article, "district" means
   52-5  the Uvalde County Underground Water Conservation District.
   52-6        SECTION 2.02.  VALIDATION.  The creation of the district and
   52-7  all resolutions, orders, and other acts or attempted acts of the
   52-8  board of directors of the district are validated in all respects.
   52-9  The creation of the district and all resolutions, orders, and other
  52-10  acts or attempted acts of the board of directors of the district
  52-11  are valid as though they originally had been legally authorized or
  52-12  accomplished.
  52-13        SECTION 2.03.  BOUNDARIES.  Pursuant to the petition to the
  52-14  Commissioners Court of Uvalde County, Texas, requesting the
  52-15  creation of the district, the district includes the territory
  52-16  contained within the boundaries of Uvalde County.
  52-17        SECTION 2.04.  FINDING OF BENEFIT.  All the land and other
  52-18  property included within the boundaries of the district will be
  52-19  benefitted by the validation of the district.
  52-20        SECTION 2.05.  POWERS.  (a)  The district has all of the
  52-21  rights, powers, privileges, authority, functions, and duties
  52-22  provided by the general law of the state, including Chapters 50 and
  52-23  52, Water Code, applicable to underground water conservation
  52-24  districts created under Article XVI, Section 59, of the Texas
  52-25  Constitution.  This article prevails over any provision of general
  52-26  law that is in conflict or inconsistent with this article.
  52-27        (b)  The district may develop and implement a drought
   53-1  response plan, with reasonable rules, using water levels as
   53-2  observed in the Uvalde Index Well YP-69-50-302.
   53-3        (c)  The rights, powers, privileges, authority, functions,
   53-4  and duties of the district are subject to the continuing right of
   53-5  supervision of the state to be exercised by and through the Texas
   53-6  Water Commission.
   53-7        SECTION 2.06.  LEVY OF TAXES.  The levy and collection of
   53-8  taxes by the district are governed by Subchapter H, Chapter 52,
   53-9  Water Code, except that the district may not levy a maintenance and
  53-10  operating tax at a rate that exceeds two cents per $100 assessed
  53-11  valuation unless an election held in the district authorizes a
  53-12  higher rate.
  53-13        SECTION 2.07.  PENDING LITIGATION.  This article does not
  53-14  apply to or affect litigation pending on the effective date of this
  53-15  article in any court of competent jurisdiction in this state to
  53-16  which the district is a party.
  53-17                               ARTICLE 3
  53-18        SECTION 3.01.  LEGISLATIVE OVERSIGHT.  (a)  The Edwards
  53-19  Aquifer Legislative Oversight Committee is composed of:
  53-20              (1)  three members of the senate appointed by the
  53-21  lieutenant governor; and
  53-22              (2)  three members of the house of representatives
  53-23  appointed by the speaker of the house of representatives.
  53-24        (b)  The committee shall examine and report to the
  53-25  legislature on the effectiveness of the state and local
  53-26  governmental entities in meeting the purposes of the Edwards
  53-27  Aquifer Authority.
   54-1        (c)  The board shall continually oversee and review:
   54-2              (1)  the activities of the Edwards Aquifer Authority
   54-3  and the implementation of that authority's enabling legislation;
   54-4              (2)  the activities of the South Central Texas Water
   54-5  Advisory Committee;
   54-6              (3)  compliance with federal law relating to threatened
   54-7  or endangered species related to management of underground or
   54-8  surface water in the Edwards Aquifer region;
   54-9              (4)  water pollution control activities in the Edwards
  54-10  Aquifer region; and
  54-11              (5)  the activities of soil and water conservation
  54-12  districts and river authorities in the Edwards Aquifer district
  54-13  that affect the management of the aquifer.
  54-14        SECTION 3.02.  NOTICE OF AVAILABLE WATER.  The Texas Natural
  54-15  Resource Conservation Commission shall notify the Edwards Aquifer
  54-16  Authority of any water available for appropriation in the
  54-17  Guadalupe-Blanco River Basin as the commission discovers the
  54-18  available water.
  54-19        SECTION 3.03.  SUNSET COMMISSION REVIEW OF GUADALUPE-BLANCO
  54-20  RIVER AUTHORITY.  (a)  The board of directors of the
  54-21  Guadalupe-Blanco River Authority is subject to review under Chapter
  54-22  325, Government Code (Texas Sunset Act), but may not be abolished
  54-23  under that Act.  The review shall be conducted as if the board of
  54-24  directors were scheduled to be abolished September 1, 1995.
  54-25        (b)  Unless after the review the legislature continues the
  54-26  members of the board of directors in office, the terms of the board
  54-27  members expire September 1, 1995.
   55-1        (c)  If the terms of the board of directors expire under
   55-2  Subsection (b) of this section, a new board of directors shall be
   55-3  appointed and confirmed as provided by Chapter 75, Acts of the 43rd
   55-4  Legislature, 1st Called Session, 1933, with three members appointed
   55-5  to terms expiring February 1, 1997, three to terms expiring
   55-6  February 1, 1999, and three to terms expiring February 1, 2001.  A
   55-7  member whose term expires under Subsection (b) of this section is
   55-8  not eligible for reappointment under this subsection.
   55-9        SECTION 3.04.  COOPERATION.  All state and local governmental
  55-10  entities are hereby directed to cooperate with the authority to the
  55-11  maximum extent practicable so that the authority can best be able
  55-12  to accomplish the purposes set forth under Article 1.  The
  55-13  authority shall, on or before January 1, 1995, submit a report to
  55-14  the governor, lieutenant governor, and speaker of the house of
  55-15  representatives evaluating the extent to which other entities have
  55-16  cooperated with and assisted the authority.
  55-17                               ARTICLE 4
  55-18        SECTION 4.01.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
  55-19  (a)  The proper and legal notice of the intention to introduce this
  55-20  Act, setting forth the general substance of this Act, has been
  55-21  published as provided by law, and the notice and a copy of this Act
  55-22  have been furnished to all persons, agencies, officials, or
  55-23  entities to which they are required to be furnished by the
  55-24  constitution and other laws of this state, including the governor,
  55-25  who has submitted the notice and Act to the Texas Water Commission.
  55-26        (b)  The Texas Water Commission has filed its recommendations
  55-27  relating to this Act with the governor, lieutenant governor, and
   56-1  speaker of the house of representatives within the required time.
   56-2        (c)  All requirements of the constitution and laws of this
   56-3  state and the rules and procedures of the legislature with respect
   56-4  to the notice, introduction, and passage of this Act are fulfilled
   56-5  and accomplished.
   56-6        SECTION 4.02.  EFFECTIVE DATES.  This Act takes effect
   56-7  September 1, 1993, except Section 1.35 of Article 1 takes effect
   56-8  March 1, 1994.
   56-9        SECTION 4.03.  EMERGENCY.  The importance of this legislation
  56-10  and the crowded condition of the calendars in both houses create an
  56-11  emergency and an imperative public necessity that the
  56-12  constitutional rule requiring bills to be read on three several
  56-13  days in each house be suspended, and this rule is hereby suspended.