JBM C.S.H.B. 3387 75(R)BILL ANALYSIS


NATURAL RESOURCES
C.S.H.B. 3387
By: Gallego
4-30-97
Committee Report (Substituted)



BACKGROUND 

The watermaster program was started at the Texas Water Commission.  Later,
the program was used by the Texas Natural Resource Conservation Commission
(TNRCC) for the purpose of administrating adjudicated water rights after
the enactment of the Water Rights Adjudication Act in 1967.  Today, there
are two watermaster offices in operation:  the Rio Grande watermaster,
covering the Middle and Lower Rio Grande, and the South Texas watermaster,
covering the Nueces watershed in the Uvalde, San Antonio, and Corpus
Christi areas.   

The watermaster programs are totally funded by local water right user
fees.  Budgets are established for the needs of the program, and the
assessments are paid each year by water right holders to meet the costs of
operation.  The watermaster's offices  receive support from TNRCC with
respect to various issues relating to water rights administration, water
rights marketing, and transfer of ownership of water rights. 

Many of the water right holders in the watermaster program would prefer a
system that made the watermaster more accountable to local users.
Therefore, this legislation would place the watermaster assessment fee in
a special fund used only for certain purposes.  In addition,  the bill
creates a watermaster advisory committee in each water division where
there is a watermaster. This would give the watermaster a formal way to
allow direct input from the local stakeholders. Lastly, the bill
simplifies the duties of the watermaster with regard to the administration
of the water rights of individuals who own these rights. 

PURPOSE

To make the watermaster more accountable and responsive to the users who
fund the program by creating a watermaster advisory committee and a
special watermaster fund. This legislation also limits some specific
administrative duties of the watermaster and requires the watermaster to
involve water right holders in decisions on the annual budget.   

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does expressly grant
additional rulemaking authority to the TNRCC in Section 5. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.326, Water Code, by providing that the
executive director shall supervise and direct the watermaster in the
performance of his duties as defined in Section 11.327 of the Water Code. 

SECTION 2.  Amends Subchapter G, Chapter 11, Water Code, by adding Section
11.3261. 
 
 Section 11.3261(a) Creates the watermaster advisory committee, composed
of at least nine members but no more than 15 members, who are holders of
water rights or representatives of holders of water rights in the water
division of a watermaster.  The executive director shall consider
geographic representation, amount of water rights held, different types of
holders of water rights and users of such rights such as municipal
suppliers, irrigators, and industrial users,  and experience and knowledge
in water management practices in making the appointments to the
commission. 

 (b) Committee members are not entitled to reimbursement of expenses
incurred or to compensation. 

 (c) Terms of office for committee members are two years from the date of
initial   appointment and hold office until a successor is appointed. 

 (d) The advisory committee shall meet within thirty days following the
initial   appointment to elect a presiding officer who serves on an annual
basis.  Following the first meeting, the committee shall meet regularly
after as necessary. 

 (e) The duties of the committee include:
  (1) providing recommendations to the executive director regarding
activities of   benefit to the holders of water rights in the
administration and distribution or   water to holders of water rights. 
  (2) review and comment to the executive director on the annual budget.
  (3) other duties as may be requested by the executive director with
regard to the   watermaster operations or as requested by holders of water
rights in a water   division which the committee deems of benefit to the
administration of water   rights in water divisions. 

SECTION 3.  Amends Section 11.327, Water Code, as follows:

 Section 11.327 (d) States that a watermaster's duties shall not include
activities which relate to other programs of the commission, except in
situations of imminent threat to public health and safety or the
environment. 

SECTION 4.  Amends Section 11.329, Water Code, as follows:

 Section 11.329 (a) Limits the compensation of the watermaster to
necessary expenses associated with streamflow measurement and monitoring,
water accounting, assessment billing and collection associated with a
watermaster's operation, and other duties a watermaster may be required to
perform under this subchapter. 

 (b) Provides that after the adjudication decree becomes final, and each
fiscal year thereafter, the executive director shall provide notice to
each holder of water rights at least 30 days prior to the commission's
holding a public hearing as provided in Subsection (c), of the proposed
budget for their watermaster operations showing the amount of compensation
and expenses that will be required annually for the administration of the
water rights so determined. The budget shall also be given to the
watermaster advisory committee for comment at least 30 days prior to
notification to each holder of water rights.. 

 (c) Provides for a public hearing on the proposed fiscal year budget for
each watermaster operation.  Also, the commission shall determine the
apportionment of the costs of administration of adjudicated water rights
among the holders of the rights.  After a public hearing, the commission
shall issue an order assessing the annual cost against the holders of the
water rights to whom the water will be distributed under the final decree.
The commission shall equitably apportion the costs.  The executive
director may provide for payments in installments and shall specify the
dates by which payments shall be made to the commission.  At the request
of the watermaster advisory committee the commission  may modify a fiscal
year budget for any water division. 

 (d) The executive director shall collect the assessments and shall
account for them separately for each watermaster operation and deposit the
assessments in a special fund known as the watermaster fund established
and governed by Section 11.3291. 

SECTION 5.  Amends Subchapter G, Chapter 11, Water Code, by adding Section
11.3291. 
 
 Section 11.3291 (a) Creates the special watermaster fund in the state
treasury and provides that the fund shall be administered by the
commission under this subchapter and rules adopted by the TNRCC. 

 (b) Provides that the legislature hereby appropriates without further
legislative action any funds deposited in the watermaster's fund as
provided by this subchapter.  The fund shall be used for:  
  (1) compensation and expenses of the watermaster in each water division; 
  (2) expenditures for equipment, facilities and capital expenditures
necessary to the   operation of the watermaster program, when recommended
by the water master   advisory committee and the executive director and
approved by the commission   when hearings are required as provided in
Section 11.329; and 
  (3) providing overhead and administrative expenses to a general revenue
fund of   the commission in an amount not greater than 10 percent times
the approved   annual budget under this subchapter in a water division.
Amounts not used in one   fiscal year shall be carried over and used for
the following fiscal year's operational   expenses of the watermaster. 
  
 (c) The fund shall be accounted for separately for each water division.

 (d) The watermaster fund shall consist of fees collected in each water
division, money from gifts, grants or donations, and money from any other
source designated by the legislature or commission. 

 (e) Allows the commission to invest, reinvest, and direct the investment
of any available money in the fund as provided by Section 404.024,
Government Code. 

SECTION 6.  Effective date: September 1, 1997.

SECTION 7.  Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1.  Section 11.326(e), Water Code, is amended in the original by
inserting the word "directly" between "responsible" and "to."  This
insertion is not made in the substitute. 

SECTION 2.  Section 11.3261(e)(1), Water Code, in the original states that
the advisory committee's duties include the general oversight of
watermaster operations and recommendations to the executive director
regarding activities of benefit to the holders of water rights in the
administration and distribution of water holders of water rights.  The
substitute differs from the original in Section 11.3261(e)(1) by stating
that the duties of the committee include providing recommendations to the
executive director regarding activities of benefit to the holders of water
rights in the administration and distribution or water to holders of water
rights (no reference to oversight). 

SECTION 3.  Section 11.327(d), Water Code, in the original states that a
watermaster's duties shall not include duties directly associated with the
duties defined in Subsections (a), (b) or (c) or duties which relate to
other activities programs or purposes of the commission except duties as
may directly benefit the holders of water rights in respect to their water
rights when approved by the watermaster advisory committee and executive
director.  The substitute differs in this section by stating that a
watermaster's duties shall not include activities which relate to other
programs of the commission, except in situations of imminent threat to
public health and safety or the environment.     

SECTION 4.  Section 11.329(a), Water Code, is amended in the original by
inserting the words "done by a watermaster" after "collection" and before
"and."  In the substitute, this section is amended by inserting the words
"associated with a watermaster's operation" after "collection" and before
"and."   
 
Also, Section 11.329(b), Water Code, is amended in the original by stating
that the executive director shall notify by July 1 of each fiscal year
each holder of water rights under the decree of the budget for the
watermaster operations showing the amount of compensation and expenses
that will be required annually for the administration of the water rights
so determined.  This section in the substitute is amended by stating that
the executive director shall provide notice to each holder of water rights
at least 30 days prior to the commission's holding a public hearing as
provided in Subsection (c), of the proposed budget for their watermaster
operations showing the amount of compensation and expenses that will be
required annually for the administration of the water rights so
determined.   

Finally, Section 11.329(c), Water Code, is amended in the original by
requiring that the commission hold a public hearing on the required annual
amount as set out in the budget if requested in writing by ten water right
holders filed with the commission on or before August 1 of each fiscal
year.   In the substitute, the commission is required to hold a public
hearing on the proposed fiscal year budget for each watermaster operation.
Also in the original in this section, the commission was required to hold
a public hearing to determine the apportionment of costs of administration
of adjudicated rights.  This requirement is deleted in the substitute.
Further, in this section, the original provides for more than one hearing
before an order assessing the annual cost against water right holders, and
the substitute only provides for one public hearing on this matter.  Also
in Section 11.329(c), Water Code, a new sentence is added in the
substitute that states that, at the request of the watermaster advisory
committee, the commission  may modify a fiscal year budget for any water
division. 

SECTION 5.  Section 11.3291(b)(3), Water Code, in the original states that
overhead and administration expenses of the commission may not exceed 2
1/2 percent times the annual amount of assessment collected.  The
substitute changes this number to 10 percent.