BILL ANALYSIS



C.S.H.B. 3096
By: Van de Putte / Corte
5-3-95
Committee Report (Substituted)


BACKGROUND
The Edwards Underground Water District (EUWD) was created by
special act of the Legislature in 1959.  The district originally
served a five-county area encompassing Uvalde, Medina, Bexar, Comal
and Hays counties.  In 1989, Uvalde and Medina counties separately
withdrew from the Edwards and formed their own Chapter 52
districts.  The EUWD is not a Chapter 52 district.

Senate Bill 1477 in 1993 created an Edwards Aquifer Authority with
overall responsibility for water management in the region.  The
bill also abolished the Edwards Underground Water District while
validating the Uvalde County Underground Water Conservation
District and continuing the Medina County Underground Water
Conservation District.  

Senate Bill 1477 also provided that, while the Authority retained
jurisdiction over regional water management, its specific powers
and responsibilities could be delegated to the local underground
water conservation districts under conditions set forth in the
bill.

In late 1993, the United States Department of Justice refused pre-clearance for Senate Bill 1477 on the grounds that it violated the
Voting Rights Act.  Implementation of Senate Bill 1477 has been
delayed since that time.


PURPOSE
This bill will reinstate the Edwards Underground Water District and
expand the ability of the district to perform the water management
functions necessary for an effective regional water management
strategy to work.

RULEMAKING AUTHORITY
Section 5 of the bill clarifies the rulemaking authority of the
Edwards Underground Water District.

SECTION BY SECTION ANALYSIS
SECTION 1. This section permits the Edwards Aquifer Authority to
contract with the Edwards Underground Water District for payment of
administrative expenses of the Authority from tax revenues of the
EUWD, as is presently allowed for Chapter 52 water districts.

SECTION 2.  (a)  This repeals Section 1.41 of Chapter 626, Acts of
the 73rd Legislature, which abolished the Edwards Underground Water
District.  The effect of this repealer is to reinstate the
District.

     (b)  Eliminates the repeal of Chapter 99, Acts of the 56th
     Legislature, Regular Session, (Article 8280-219 VTCS) by
     Section 1.41 of Chapter 626, Acts of the 73rd Legislature and
     provides that the Edwards Underground Water District exists as
     if Senate Bill 1477 had never passed.

SECTION 3.  Amends Section 1.42 of Chapter 626, Acts of the 73rd
Legislature by incorporating "or underground water district" into
the language concerning underground water conservation districts,
providing the Edwards Aquifer Authority with the authority to
delegate its powers and duties to the Edwards Underground Water
District, as is currently authorized for Chapter 52 water districts
pursuant to Senate Bill 1477 of the 73rd Legislature.

SECTION 4.  Amends Section 3(a) of Chapter 99, Acts of the 73rd
Legislature (Article 8280-219, VTCS) by adding a new Subsection
(17) and making conforming changes where necessary referencing the
Texas Natural Resource Conservation Commission in place of Texas
Water Commission.   

     (17) Directs the Edwards Underground Water District to require
     permits for drilling, equipping or completing wells, and
     outlines the process by which a permit is granted,  including
     requirements and time limits for action on the permits.  

SECTION 5.  Section 3(b) through 3(f) of Chapter 99, Acts of the
73rd Legislature (Article 8280-219, VTCS) is amended by amending
(b) to allow the Board of Directors of the Edwards Underground
Water District to adopt reasonable rules to carry out its powers
and responsibilities, and so that its rulemaking authority is not
limited to its drought management and well registration powers.

     (c)  Requires that the district take public input at hearings
     and through public process in the development of rules adopted
     under Subsection (b).

     (d)  Provides an appeal for the rules adopted under this
     Section and makes a reference change from TWC to TNRCC.

     (e)  Provides venue in Bexar County for cases filed
     challenging rules adopted under this section.

     (f)  Makes reference changes from Texas Water Commission to
     Texas Natural Resource Conservation Commission and clarifies
     legal terms relating to suits filed under this section.

     (g)  Directs the Edwards Underground Water District to assume
     responsibility for well registration upon promulgation of
     rules adopted under this Section.

SECTION 6.  Chapter 99, of Section 1.41 of Chapter 626, Acts of the
73rd Legislature (Article 8280-219, VTCS) is amended by adding
Section 3D and Section 3E.

     Sec. 3D.  LOANS AND GRANTS.  This gives the Edwards
     Underground Water District, under authority granted by Section
     52-a, Article III, Texas Constitution, authority to make loans
     or grants for water conservation, reuse or development
     equipment, technology, or projects.  It is intended to support
     economic development, particularly in the agricultural sector,
     and education about water conservation and reuse.

     Sec. 3E.  ADMINISTRATIVE PENALTY.  (a) This section gives the
     Edwards Underground Water District authority to investigate
     violations of the statute or of rules and regulations adopted
     thereunder and to assess administrative penalties.  Such
     penalties are limited to $10,000 per day per violation, with
     each day considered a separate violation.

           (b)  Provides guidelines for the determination of
           penalty, including the seriousness and impact of the
           violation, the economic and environmental damage caused
           by the violation, criteria involving the violator, and
           any other matters that justice may require.

           (c)  Directs the general manager to perform an initial
           investigation and issue a preliminary report on whether
           a violation has occurred and including a recommendation
           as to a penalty.

           (d)  Requires the general manager to give written notice
           of the violation to the alleged violator within 14 days
           of the issuance of the report.

           (e)  Gives the alleged violator 20 days to respond.

           (f)  Provides that if the alleged violator does not
           respond, the district shall assess a penalty or order
           a hearing on the report.

           (g)  Provides that, if a hearing is set on an alleged
           violation, it will be conducted by the State Office of
           Administrative Hearings and subject to the provisions
           of Chapter 2001 of the Government Code.  The hearing
           officer shall submit a proposal for decision to the
           board of directors of the District.  The board of
           directors shall act on the proposal for decision.

           (h)  Requires the district to give notice of its
           decision and any penalty assessed.

           (i)  Requires that the alleged violator shall, within
           30 days of the issuance of the order, either pay the
           penalty, seek judicial review, or seek judicial review
           without paying the penalty.

           (j)  Provides that, if the alleged violator seeks
           judicial review without paying the penalty, the violator
           must either pay the penalty into escrow, file a
           supersedeas bond, or file an affidavit of financial
           inability to pay.

           (k) Provides a process by which the general manager
may contest an           affidavit of inability to pay.

           (l) Permits the general manager to refer the case
of any violator who has       not paid his or her penalty to the
attorney general for collection.

           (m)  Declares that judicial review of a board order is
instituted by filing a        petition as provided by Subchapter G,
Chapter 2001, Government Code, and is        under the substantial
evidence rule.

           (n)  Permits a court to uphold the violation and
           penalty, uphold the violation and reduce the penalty,
           or not sustain the violation.

           (o) Provides rules under which the court will
collect a penalty assessed         under this section.
           
           (p) Provides that all proceedings under this
section are governed by Chapter         2001, Government Code.
           
           (q) Provides that penalties collected under this
section must be deposited          with the District.
           
           (r)  Provides that, unless prohibited by other law, the
District may compromise,           modify, or remit and
administrative penalty under this section.

           (s)  Requires that administrative penalties, when paid
           in full, provide full and complete satisfaction of the
           obligations of the violator.

           (t)  Provides that issuance of permits does not limit
           administrative liability.

SECTION 7.  Amends Chapter 99, Acts of the 73rd Legislature
(Article 8280-219, VTCS) by adding Section 2A.

     Sec. 2A. SUNSET.  Subjects this article to Chapter 325 of the
     Government Code and provides that the Edwards Underground
     Water District shall be reviewed in 1997.

SECTION 8.  Subsection (a) provides that the effective date of this
legislation is September 1, 1995.  Subsection (b) provides that the
sunset provision takes effect on the later of September 1, 1995, or
when Senate Bill 1477 of the 73rd Legislature takes effect.  If
Senate Bill 1477 takes effect after September 1, 1997, the sunset
provision shall take effect on the first sunset review period that
follows its effective date.

SECTION 9.  EMERGENCY CLAUSE. 

COMPARISON OF ORIGINAL TO SUBSTITUTE
The original bill provided the Edwards Underground Water District
with nine new powers.  This substitute bill provides the District
with four new powers.  Those powers are to make loans and grants,
to require well permits, additional rulemaking authority, and the
authority to assess administrative penalties.  The substitute bill
also provides clarifying language in Senate Bill 1477 of the 73rd
Legislature, to give the Edwards Underground Water District
equivalent stature to Chapter 52 water conservation districts
thereunder.  Lastly, the substitute bill provides a sunset
provision for the Edwards Underground Water District enabling
statute.

SUMMARY OF COMMITTEE ACTION
H.B.3096 was considered by the committee in a formal meeting on May
2, 1995.
No testimony was received.
The committee considered a complete substitute for the bill.  The
substitute was withdrawn.
The bill was left pending.

H.B.3096 was considered by the committee in a formal meeting on May
3, 1995.
No testimony was received.
The committee considered a complete substitute for the bill.  The
substitute was adopted by a record vote of 5 ayes, 3 nays, 0 pnv,
1 absent.
The bill was reported favorably as substituted, with the
recommendation that it do pass and be printed, by a record vote of
6 ayes, 1 nays, 1 pnv, 1 absent.