JBM S.B. 1406 75(R) BILL ANALYSIS NATURAL RESOURCES S.B. 1406 By: Lucio (Gallego) 5-9-97 Committee Report (Unamended) BACKGROUND Currently, the watermasters and water divisions of the Texas Natural Resource Conservation Commission (TNRCC) are responsible for administrating adjudicated water rights in Texas. The watermaster program is financed by local water right user fees. Under current law, the local water right user fees are transmitted to the state treasurer. On certain occasions, special legislation had to be approved so that these funds were not swept into the general fund at the end of a fiscal year. Additionally, local water rights holders who pay for the watermaster operation believe that there should be a formal mechanism which allows those individuals to express their concerns and ideas in the operation of the watermaster office. This bill will provide procedures regarding the duties and operations of a watermaster's office, reimbursement to the TNRCC for the compensation and necessary expenses of a watermaster's office, and the creation and administration of the watermaster fund. PURPOSE To provide procedures regarding the duties and operations of a watermaster's office, reimbursement of the TNRCC for the compensation and necessary expenses of a watermaster's office, and the creation and administration of the Watermaster Fund. RULEMAKING AUTHORITY It is the committee's opinion that this bill does expressly grant additional rulemaking authority to the TNRCC in SECTION 5 of the bill. 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, as follows: Sec. 11.3261. (a) Requires the executive director to establish the watermaster advisory committee (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. Requires the executive director to 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 committee. (b) Provides that committee members are not entitled to reimbursement of expenses incurred or to compensation. (c) Provides that terms of office for committee members are two years from the date of initial appointment and until a successor is appointed. (d) Requires the committee to meet within thirty days following the initial appointment to elect a presiding officer who serves on an annual basis. Following the first meeting, requires the committee to meet regularly after as necessary. (e) Sets forth the duties of the committee. SECTION 3. Amends Section 11.327, Water Code, as follows: Section 11.327 (d) Provides that a watermaster's duties shall not include activities which relate to other programs of TNRCC, 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) Provides that necessary expenses of the watermaster shall be limited to costs 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. Makes conforming changes. (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 under the decree, at least 30 days prior to TNRCC'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. Requires the budget to also be given to the committee for comment at least 30 days prior to notification to each holder of water rights. (c) Requires TNRCC to hold a public hearing on the proposed fiscal year budget for each watermaster operation. Requires TNRCC to determine the apportionment of the costs of administration of adjudicated water rights among the holders of the rights. At the request of the committee, authorizes TNRCC to modify a fiscal year budget for any water division. (d) Requires the executive director to collect the assessments and shall account for them separately for each water division and deposit the assessments in a special fund known as the watermaster fund established and governed by Section 11.3291, Water Code. SECTION 5. Amends Subchapter G, Chapter 11, Water Code, by adding Section 11.3291, as follows: Sec. 11.3291. (a) Creates the watermaster fund as a special fund in the state treasury and requires the fund to be administered by TNRCC under this subchapter and rules adopted by 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. Sets forth the required uses for the watermaster fund. Provides that 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) Requires the watermaster fund to be accounted for separately according to the appropriate water division from which the watermaster's assessment is collected. (d) Sets forth the composition of the watermaster fund. (e) Authorizes TNRCC 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.