BLS C.S.S.B. 28 75(R)    BILL ANALYSIS


NATURAL RESOURCES
C.S.S.B. 28
By: Barrientos, Armbrister (Walker)
5-15-97
Committee Report (Substituted)



BACKGROUND 

The Barton Springs/Edwards Aquifer Conservation District (District) was
organized and 
validated in 1987 under Chapter 52 of the Texas Water Code to protect,
conserve and preserve 
the Barton Springs segment of the Edwards Aquifer.  The District has
authority to permit wells, 
assess water use fees, and assess a fee against the City of Austin.  The
District is governed by 
a five member elected board of directors.  Two director precincts are
within a portion of the 
City of Austin.  In addition to its enabling legislation, the District
operates under Chapter 36 of 
the Texas Water Code.

PURPOSE

To amend the powers and duties of the District.  Specifically, the bill
deletes references to Chapter 52 of the Water Code and replaces them with
reference to Chapter 36 of the Texas Water Code.  The bill would also
authorize the District to assess fees based upon water use up to
twenty-five cents per thousand gallons.  This limit would not apply to
fees assessed on water pumped in excess of permitted volume.   

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2, Chapter 429, Acts of the 70th Legislature,
Regular Session, 1987, as follows: 

      Sec. 2. POWERS AND DUTIES OF DISTRICT. (a) Replaces reference to
Chapter 52, Water Code, with reference to Chapter 36, Water Code. 
 (b) Replaces references to repealed sections of Chapter 52, Water Code,
with references to Chapter 36, Water Code. 
 (c) Prohibits fees assessed on the basis of well production capacity or
actual, authorized, or anticipated water pumped from exceeding 25 cents
per thousand gallons for fees assessed before September 1, 2001, and from
exceeding 17 cents per thousand gallons for fees assessed on or after
September 1, 2001.  Provides that the limitation does not apply to a fee
assessed on any water pumped exceeding permitted water pumped volume.
Requires the District's board, if the fee is greater than 17 cents per
1,000 gallons before September 1, 2001, to dedicate to capital or
conservation projects the portion of the fee revenue that exceeds the
difference between $650,000 and the sum of the fee  revenue and the
contribution from the City of Austin made under Subsection (f)(2) of this
section. 
 (d) Replaces references to repealed sections of Chapter 52, Water Code,
with references to Chapter 36, Water Code. 
 (e) Replaces reference to Chapter 52, Water Code, with reference to
Chapter 36, Water Code. 
 (f) Authorizes the District's board to assess the City of Austin as a
water use fee: an amount not to exceed  55% of the total funding of the
District received from water use fees assessed against the Austin and
other nonexempt users each year before September 1, 2001; and  an amount
not to exceed  60% of the total funding of the District received from
water use fees assessed against Austin and other nonexempt users each year
on or after September 1, 2001. 

 (g) Provides that Section 2, Chapter 429, Acts of the 70th Legislature,
Regular Session, 1987, prevails over any conflicting or inconsistent
provision of law. 


SECTION 2.  Amends Chapter 429, Acts of the 70th Legislature, Regular
Session, 1987, by adding Section 7A and 7B, as follows: 

   Sec. 7A.  TRAVEL GUIDELINES.  Sets forth provisions for travel expenses
of the District. 

 Sec. 7B.  MEETINGS REQUIREMENTS.  Provides that the District's board
meetings are subject to Chapter 551, Government Code.  Requires the
District's board to schedule each meeting at a time, date, and place
calculated to enable members of the working public to attend. 


SECTION 3.  Amends Chapter 429, Acts of the 70th Legislature, Regular
Session, Regular Session, 1987, by adding Section 9A, as follows: 

 Sec. 9A.  ANNUAL AUDIT.  Requires TNRCC to conduct an annual audit of the
District's finances, management, and operations.  Requires copies of
TNRCC's audit report to be made available to the public at the District's
office and at TNRCC's office in Austin. Requires the District's board to
develop, and the District to begin, to implement a plan to address any
shortcoming identified in the audit not later than the 90th day after the
date the District's board receives the audit report under this section. 

SECTION 4.  Provides that this Act takes effect immediately, except
Section 3 of this Act takes effect September 1, 1997 unless S.B. No. 1,
75th Legislature, Regular Session, 1997, becomes law and includes a
provision requiring the District to undergo a periodic performance audit,
in which case Section 3 has no effect. 

SECTION 5.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1.  In SECTION 1 of the original, proposed Section 2(c), Chapter
429, Acts of the 70th Legislature, Regular Session, 1987, is amended by
authorizing the board by rule to prioritize water use and assign different
fees according to the priority of use.  The substitute does not contain
this provision.  However, the substitute adds new provisions in this
subsection that provide for amounts that the fee on a well's production
capacity or actual, authorized, or anticipated water pumped may not exceed
before September 1, 2001.  This new provision of the substitute also
states that limitation does not apply to a fee assessed on water pumped
that exceeds the permitted water pumped volume.   Also, in the substitute,
if the fee is greater than a certain amount by September 1, 2001, then the
board shall dedicate to capital or conservation projects the portion of
the fee revenue that exceeds the difference between the sum of the fee
revenue and the contribution from the City of Austin made under Subsection
(f)(2) of this section and $650,000. 

SECTION 1.  Proposed Section 2(c)(4), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original stated
that Subsection (c), Section 36.205, Water Code, does not apply to a fee
assessed under this subsection.  This provision was deleted in the
substitute. 

SECTION 1.  Proposed Section 2(c)(5), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original stated
that the district shall assess a fee as provided by Subsection (d),
Section 36.205, Water Code, unless the district assesses a fee against the
City of Austin under Subdivision (2) of Subsection (f) of this section.
This provision was deleted in  the substitute. 

SECTION 1.  Proposed Section 2(c)(6), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original stated
that a district may not assess a water pumped fee of more that 30 cents
per 1,000 gallons for a use authorized by a district pumping permit.  It
also stated that the limitation provided by this subdivision does not
apply to a fee assessed against water pumped that exceeds the water pumped
volume allowed.  Finally, it stated that if the district assesses fees
under Subdivision (2) of Subsection (f) of this section, proceeds from
water pumped fees shall not be used for administration of the district and
shall be directly spent on capital projects designed to enhance the
quality and quantity of water in the aquifer.  This proposed Section
2(c)(6) was deleted in the substitute. Substitute provisions concerning
pumping fees are in SECTION 1, proposed Section 2(c), Chapter 429, Acts of
the 70th Legislature, Regular Session, 1987, of the substitute. 

SECTION 1.  Proposed Sections 2(d)(1) and 2(d)(2), Chapter 429, Acts of
the 70th Legislature, Regular Session, 1987, in SECTION 1 of the original
contains provisions that require the board to establish rules concerning
production capacity concerning the exempt wells in the district. That
language is deleted in the substitute, although proposed Sections 2(d)(1)
and 2(d)(2) are still amended in the substitute to change the references
to repealed sections of Chapter 52, Water Code, to references to sections
of Chapter 36, Water Code. 
 
SECTION 1.  Proposed subsection (d)(3) of Section 2, Chapter 429, Acts of
the 70th Legislature, Regular Session, 1987, in SECTION 1 of the original
states that notwithstanding the provisions of Subdivision (1) of that
subsection, the district may not deny a property owner the right to drill
a well or produce groundwater from the property if the well meets minimum
construction, spacing, and production standards.  That proposed language
was deleted in the substitute. 

SECTION 1.  Proposed Section 2(f)(1), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987,  in SECTION 1 of the original added
the words "a recreational benefit, dilution of urban storm water runoff in
Town Lake, and" between the words "Barton Springs" and "contribution."
These added words were deleted in the substitute.  Also, in the same
proposed Section 2(f)(1), the original struck through the following text
in existing law: ", and that the City of Austin shall elect two of the
five members of the district's board of directors."  That existing text
was not stricken through in the substitute. 

SECTION 1.  Proposed Section 2(f)(2), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original states
that the board may assess a fee against the City of Austin; a public or
private water utility that uses groundwater from the district; or a
private person who pumps groundwater from the district.  This proposed
subsection in the original also struck through text n existing law
providing that the board may asses the City of Austin, as a water use fee,
each year an amount not to exceed 40 percent of the total funding of the
district received from water use fees assessed against Austin and other
nonexempt users.   In the substitute, this subsection now states that the
board may assess the City of Austin as a water use fee: an amount not to
exceed  55% of the total funding of the District received from water use
fees assessed against the Austin and other nonexempt users each year
before September 1, 2001; and an amount not to exceed  60% of the total
funding of the District received from water use fees assessed against
Austin and other nonexempt users each year on or after September 1, 2001. 

SECTION 1. Proposed Section 2(f)(3), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original states
that a fee assessed under Subdivision (2) of that proposed subsection must
be assessed according to a living unit equivalent, as defined by board
rule, or assessed by meter.  Also, in assessing a fee, the board may
differentiate between meters on any reasonable basis, including
consumption; potential demand; meter size; or line size.  That proposed
language has been deleted in the substitute. 

SECTION 1.  Proposed Section 2(f)(4), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original provided
that the City of Austin, and any public or private water utility assessed
under Subdivision (2) of this subsection, shall collect and pay the fee to
the district. That proposed language has been deleted in the substitute. 
 
SECTION 1.  Proposed Section 2(f)(5), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original stated
that the City of Austin and public or private water utilities may include
a fee assessed by the district under Subdivision (2) of that proposed
subsection as a part of the base rate of a customer's monthly statement.
That proposed language has been deleted in the substitute. 

SECTION 1.  Proposed Section 2(f)(6), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original stated
that Subdivisions (4) and (5) of that proposed subsection do not apply to
a utility that the City of Austin supplies with water; and is assessed a
fee as part of the utility's wholesale cost.  That proposed language has
been deleted in the substitute. 

SECTION 1.  Proposed Section 2(f)(7), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original stated
that fees assessed under Subdivision (2) of that proposed subsection in
the first year the district assesses those fees may not exceed 110 percent
of the greatest total annual revenue the district received in any previous
fiscal year. That proposed language has been deleted in the substitute.

SECTION 1.  Proposed Section 2(f)(8), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original stated
that, except as provided by Subdivision (7) of this subsection, if a fee
assessed under Subdivision (2) of this subsection exceeds 108 percent of
the comparable fee assessed in the fiscal year that immediately preceded
the assessment, excluding the proportional amount of the fees used to
service debt, the qualified voters of the district may petition the board
to hold an election to reduce the fee to an amount equal to 108 percent of
the previous comparable fee.  If the board receives a petition under this
subdivision, the board shall consider the petition and determine whether
to hold an election to reduce the fee in the manner provided by Section
26.07, Tax Code, as if the fee were a tax subject to that section.  If the
board calls an election, the district shall hold the election in
accordance with the procedure provided for an election under Section
26.07, Tax Code, as if the fee were a tax subject to that section.  If the
fee is reduced as a result of an election under Section 26.07, Tax Code,
as if the fee were a tax subject to that section.  A petition under this
subdivision is valid only if the petition: sates that it is intended to
require an election in the district on the question of reducing a fee
assessed under Subdivision (2) of this subsection; is signed by a number
of qualified voters of the district equal to at least 10 percent of the
number of qualified voters of the district; and is presented to the board
on or before the 90th day after the date the board assessed the fee for
the current fiscal year.  That proposed language has been deleted in the
substitute.         

SECTION 1.  Proposed Section 2(f)(9), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original stated
that Subsection (d), Section 36.205, Water Code, does not apply if the
district assesses a fee against the City of Austin under Subdivision (2)
of this subsection.  That proposed language has been deleted in the
substitute.         

SECTION 1.  Proposed Section 2(f)(10), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original
corresponds with proposed Section 7(B), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 2 of the substitute.      

SECTION 1.  Proposed Section 2(g), Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987, in SECTION 1 of the original provided
that the district may own, construct, and operate in the district a
wastewater treatment plant or other facility that may prevent or reduce
the probability of pollution of the aquifer; or enhance water conservation
or reduce water consumption.  That proposed language has been deleted in
the substitute. 

SECTION 1.  The language in proposed Section 2(g), Chapter 429, Acts of
the 70th Legislature, Regular Session, 1987, of the substitute was added
in the substitute. 

SECTION 2.  SECTION 2 of the original amends Section 9, Chapter 429, Acts
of the 70th Legislature, Regular Session, 1987, and SECTION 2 of the
substitute adds Sections 7A and 7B to Chapter 429, Acts of the 70th
Legislature, Regular Session, 1987. Proposed Section 9(b) in the original
is substantially similar to  proposed Section 7A in the substitute.
However, in the  original, proposed 9(a) stated that, in addition to the
authority provided by Subchapters E and F, Chapter 36, Water Code, the
district could borrow money to acquire an interest in real property or for
a capital project and that the section did not apply to the district's
authority regarding bonds.  This provision was not included in the
substitute.  Also, proposed Section 7B in the substitute corresponds with
proposed Section 2(f)(10) in SECTION 1 of the original. 

SECTION 3.  In the original, this section was a severability clause.  This
clause was not included in the substitute. 

SECTION 3.  The language in SECTION 3 of the substitute was added in the
substitute. 

SECTION 4 of the original was an emergency clause.  The emergency clause
is SECTION 5 of the substitute. 

SECTION 4 of the substitute is now an effective date section, which was
not in the original.