BILL ANALYSIS



C.S.H.B. 753
By: King
5-2-95
Committee Report (Substituted)


BACKGROUND
     During the 73rd Session, the Legislature passed legislation
regarding the Edwards Aquifer.  As a result of this legislation,
the Edwards Aquifer Authority was created to regulate the Edwards
Aquifer region.  The U.S. Justice Department disallowed the Edwards
Aquifer Authority due to voting rights violations, and the
management plan has not yet gone into effect.  The proposed
management plan relied primarily on strict pumping limits which
placed a tremendous burden on pumpers and citizens who rely on the
aquifer throughout the region.

     C.S.H.B. 753 proposes to manage the Edwards Aquifer region
through an Interlocal Contract agreed to by the Edwards Underground
Water District (EUWD), Uvalde County Underground Water Conservation
District (UCUWCD), and the Medina County Underground Water
Conservation District (MCUWCD).  The EUWD, the UCUWCD, and the
MCUWD have been pre-approved by the Justice Department and are
currently in operation.  The Interlocal proposes that the EUWD
regulate water management in Bexar, Comal, and the Hays Counties,
UCUWCD regulate water management in Uvalde County, and MCUWCD
regulate water in Medina County.

PURPOSE
     To implement the Interlocal Contract as the statutory
authority of the Edwards Underground Water District, the Medina
County Underground Water Conservation District, and the Uvalde
County Underground Water Conservation District.

RULEMAKING AUTHORITY
It is in the opinion of the Committee that this bill doesn't create
any additional rule making 
authority.

SECTION BY SECTION ANALYSIS
SECTION 1.  COMPREHENSIVE MANAGEMENT PLAN.  The Edwards Underground
Water District, the Medina County Underground Water Conservation
District, and the Uvalde County Underground Water Conservation
District agree upon regional management of the Edwards Aquifer.

SECTION 2.  DEFINITIONS.
2.1  Defines "Beneficial Use" with the meaning assigned by  Texas
Water Code 52.001 or     or   Section 1.02 of the 1992 Demand
Management Plan for the Edwards District.

2.2  Defines "Endangered Species Act" as codified in 16 U.S.C.
1531-1544.

2.3  Defines "Waste" with the meaning assigned by Texas Water Code
52.001 or Section 1.02   of the 1992 Demand Management Plan of the
Edwards District.

SECTION 3.  GOVERNANCE.  
3.1  Parties shall retain their own governing structure and
maintain local control;  Legislative    authority will be organized
in accordance with Chapter 52 Texas Water Code.  

3.2  Geographic Boundary shall comply with the cumulative area of
the counties covered by  each Party's geographic jurisdiction.

3.3  The Liaison Committee shall function as coordinating committee
among the Parties;  Criteria under which the Liaison Committee
shall function is defined.

SECTION 4.  FINANCING STRUCTURE.  Financial structure for water
management     shall be based upon the guiding principal that
"Those who benefit--pay."

4.1  Ad Valorem Taxation.
4.2  Production Fees.
4.3  Production Surcharge Fees.
4.4  Transport and Export Fees.
4.5  General Obligation Bonds and Revenue Bonds.
4.6  Making Loans and Grants.
4.7  Receiving Loans and Grants.
4.8  Research Costs.
4.9  Aquifer Management Guidelines.

SECTION 5.  WATER MANAGEMENT ELEMENTS.  Parties agree upon the
following terms of the comprehensive water management plan:

5.1  Aquifer complexity.
5.2  Long-term planning.
5.3  Springflow.
5.4  Downstream and Upstream Interests.
5.5  Drought Response Plans.
5.6  Conservation Plans.
5.7  Reuse Policies.
5.8  Water Quality.
5.9  Water Supplies.
5.10 Water Management Tools.
5.11 Transport of Water.
5.12 Export of Water.
5.13 Production Management.
5.14 Water Markets.

SECTION 6.  WATER AND OTHER PROPERTY RIGHTS.  Nothing in this
Contract creates or diminishes water rights or other property
rights recognized under law.

SECTION 7.  DISPUTE RESOLUTION.  All claims and controversies
relating to this Contract shall be referred for resolution by each
party to its General Manager.

SECTION 8.  ENFORCEMENT.  Each Party shall meet the requirements
under this Contract.

SECTION 9.  MISCELLANEOUS PROVISIONS.

9.1  Entire Contract.
9.2  Term of Contract.
9.3  Amendment.
9.4  Notices.
9.5  Force Majeure.
9.6  Governing Law.
9.7  Severability.
9.8  Counterparts.

SECTION 10.  EMERGENCY CLAUSE.

COMPARISON OF ORIGINAL TO SUBSTITUTE
The Original simply stated that the Legislature validates a certain
agreement known as the Edwards Aquifer Interlocal Contract.  The
Substitute actually includes the language of that agreement.

SUMMARY OF COMMITTEE ACTION
H.B.753 was considered by the committee in a public hearing on May
2, 1995.
No testimony was received.
The committee considered a complete substitute for the bill.  The
substitute was adopted without objection.
The bill was reported favorably as substituted, with the
recommendation that it do pass and be printed, by a record vote of
7 ayes, 2 nays, 0 pnv, 0 absent.