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 (b) Replaces references to repealed sections of Chapter 52, Water Code, with references to Chapter 36, Water Code.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.