75R12920 E                           

         By Gallego                                            H.B. No. 3387

         Substitute the following for H.B. No. 3387:

         By Walker                                         C.S.H.B. No. 3387

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the duties and operations of a watermaster's office,

 1-3     reimbursement of the Texas Natural Resource Conservation Commission

 1-4     for the compensation and necessary expenses of a watermaster's

 1-5     office, and creation of the watermaster fund.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7           SECTION 1.  Section 11.326, Water Code, is amended to read as

 1-8     follows:

 1-9           Sec. 11.326.  Appointment of Watermaster.  (a)  The executive

1-10     director may appoint one watermaster for each water division.

1-11           (b)  A watermaster holds office until a successor is

1-12     appointed.  The executive director may remove a watermaster at any

1-13     time.

1-14           (c)  The executive director may employ assistant watermasters

1-15     and other employees necessary to aid a watermaster in the discharge

1-16     of his duties.

1-17           (d)  In a water division in which the office of watermaster

1-18     is vacant, the executive director has the powers of a watermaster.

1-19           (e)  The executive director shall supervise and generally

1-20     direct the watermaster in the performance of his duties as defined

1-21     in Section 11.327.  A watermaster is responsible to the executive

1-22     director for the proper performance of his duties.

1-23           (f)  A person dissatisfied with any action of a watermaster

1-24     may apply to the executive director for relief.

 2-1           SECTION 2.  Subchapter G, Chapter 11, Water Code, is amended

 2-2     by adding Section 11.3261 to read as follows:

 2-3           Sec. 11.3261.  WATERMASTER ADVISORY COMMITTEE.  (a)  The

 2-4     executive director shall establish a watermaster advisory committee

 2-5     consisting of a minimum of nine members, but no more than 15

 2-6     members, who are holders of water rights or representatives of

 2-7     holders of water rights in the water division of a watermaster.  In

 2-8     appointing members of the advisory committee the executive director

 2-9     shall consider geographic representation, amount of water rights

2-10     held, different types of holders of water rights and users such as

2-11     water districts, municipal suppliers, irrigators, and industrial

2-12     users, and experience and knowledge in water management practices.

2-13           (b)  An advisory committee member is not entitled to

2-14     reimbursement of expenses incurred or to compensation.

2-15           (c)  An advisory committee member shall serve a term of two

2-16     years from the date of initial appointment by the executive

2-17     director and hold office until a successor is appointed.

2-18           (d)  The advisory committee shall meet within 30 days

2-19     following initial appointment by the executive director and elect a

2-20     presiding officer who shall serve on an annual basis.  Following

2-21     the first meeting, the committee shall meet regularly as necessary.

2-22           (e)  The advisory committee's duties include:

2-23                 (1)  providing recommendations to the executive

2-24     director regarding activities of benefit to the holders of water

2-25     rights in the administration and distribution of water to holders

2-26     of water rights;

2-27                 (2)  review and comment to the executive director on

 3-1     the annual budget of the watermaster operations; and

 3-2                 (3)  other duties as may be requested by the executive

 3-3     director with regard to the watermaster operations or as requested

 3-4     by holders of water rights in a water division which the committee

 3-5     deems of benefit to the administration of water rights in water

 3-6     divisions.

 3-7           SECTION 3.  Section 11.327, Water Code, is amended to read as

 3-8     follows:

 3-9           Sec. 11.327.  DUTIES OF WATERMASTER.  (a)  A watermaster

3-10     shall divide the water of the streams or other sources of supply of

3-11     his division in accordance with the adjudicated water rights.

3-12           (b)  A watermaster shall regulate or cause to be regulated

3-13     the controlling works of reservoirs and diversion works in time of

3-14     water shortage, as is necessary because of the rights existing in

3-15     the streams of his division, or as is necessary to prevent the

3-16     waste of water or its diversion, taking, storage, or use in excess

3-17     of the quantities to which the holders of water rights are lawfully

3-18     entitled.

3-19           (c)  A watermaster may regulate the distribution of water

3-20     from any system of works that serves users whose rights have been

3-21     separately determined.

3-22           (d)  A watermaster's duties shall not include activities

3-23     which relate to other programs of the commission, except in

3-24     situations of imminent threat to public health and safety or the

3-25     environment.

3-26           SECTION 4.  Section 11.329, Water Code, is amended to read as

3-27     follows:

 4-1           Sec. 11.329.  Compensation and Expenses of Watermaster.

 4-2     (a)  The commission shall pay the compensation and necessary

 4-3     expenses of a watermaster, assistant watermasters, and other

 4-4     necessary employees, but the holders of water rights that have been

 4-5     determined or adjudicated and are to be administered by the

 4-6     watermaster shall reimburse the commission for the compensation and

 4-7     expenses.  Necessary expenses shall be limited to [may include]

 4-8     costs associated with streamflow measurement and monitoring, water

 4-9     accounting, assessment billing and collection associated with a

4-10     watermaster's operation, and [any] other duties a watermaster may

4-11     be required to perform under this subchapter.

4-12           (b)  After the adjudication decree becomes final, and each

4-13     fiscal year thereafter, the executive director shall provide notice

4-14     to [notify] each holder of water rights under the decree, at least

4-15     30 days prior to the commission's holding a public hearing as

4-16     provided in Subsection (c), of the proposed budget for their

4-17     watermaster operations showing the amount of compensation and

4-18     expenses that will be required annually for the administration of

4-19     the water rights so determined.  This budget shall be furnished to

4-20     the watermaster advisory committee for comment at least 30 days

4-21     prior to notification to each holder of water rights.

4-22           (c)  The commission shall hold a public hearing on the

4-23     proposed fiscal year budget for each watermaster operation.  The

4-24     commission shall [to] determine the apportionment of the costs of

4-25     administration of adjudicated water rights among the holders of the

4-26     rights.  After a public hearing, the commission shall issue an

4-27     order assessing the annual cost against the holders of water rights

 5-1     to whom the water will be distributed under the final decree.  The

 5-2     commission shall equitably apportion the costs.  The executive

 5-3     director may provide for payments in installments and shall specify

 5-4     the dates by which payments shall be made to the commission.  At

 5-5     the request of the watermaster advisory committee the commission

 5-6     may modify a fiscal year budget for any water division.

 5-7           (d)  The executive director shall collect the assessments and

 5-8     shall account for assessments separately for each water division

 5-9     and shall deposit assessments collected to a special fund known as

5-10     the watermaster fund established and governed by Section 11.3291

5-11     [transmit all collections under this section to the State

5-12     Treasurer].

5-13           (e)  No water shall be diverted, taken, or stored by, or

5-14     delivered to, any person while he is delinquent in the payment of

5-15     his assessed costs.

5-16           (f)  An order of the commission assessing costs remains in

5-17     effect until the commission issues a further order.  The commission

5-18     may modify, revoke, or supersede an order assessing costs with a

5-19     subsequent order.  The commission may issue supplementary orders

5-20     from time to time to apply to new diversions.

5-21           SECTION 5.  Subchapter G, Chapter 11, Water Code, is amended

5-22     by adding Section 11.3291 to read as follows:

5-23           Sec. 11.3291.  WATERMASTER FUND.  (a)  The watermaster fund

5-24     is created as a special fund in the state treasury and shall be

5-25     administered by the commission under this subchapter and rules

5-26     adopted by the commission.

5-27           (b)  The legislature hereby appropriates without further

 6-1     legislative action any funds deposited in the watermaster's fund as

 6-2     provided in this subchapter.  The watermaster fund shall be used:

 6-3     (1) to pay the compensation and expenses of the watermaster in each

 6-4     water division; (2) to pay expenditures for equipment, facilities,

 6-5     and capital expenditures necessary to the watermaster operation

 6-6     when recommended by the watermaster advisory committee and the

 6-7     executive director and approved by the commission when hearings are

 6-8     required as provided in Section 11.329; and (3) to pay into the

 6-9     general revenue fund for use without further appropriation for

6-10     purposes of providing overhead and administrative expenses of the

6-11     commission in an amount not greater than 10 percent times the

6-12     approved annual budget under this subchapter in a water division.

6-13     Any amounts not used in one fiscal year shall be carried over and

6-14     used for the following fiscal year's operational expenses of the

6-15     watermaster.

6-16           (c)  The watermaster fund shall be accounted for separately

6-17     according to the appropriate water division from which the

6-18     watermaster's assessment is collected.

6-19           (d)  The watermaster fund shall consist of:

6-20                 (1)  fees collected in each water division;

6-21                 (2)  money from gifts, grants, or donations to the fund

6-22     for designated or general lawful use; and

6-23                 (3)  money from any other source designated by the

6-24     legislature or the commission.

6-25           (e)  The commission may invest, reinvest, and direct the

6-26     investment of any available money in the fund as provided by law

6-27     for the investment of money under Section 404.024, Government Code.

 7-1           SECTION 6.  This Act takes effect September 1, 1997.

 7-2           SECTION 7.  The importance of this legislation and the

 7-3     crowded condition of the calendars in both houses create an

 7-4     emergency and an imperative public necessity that the

 7-5     constitutional rule requiring bills to be read on three several

 7-6     days in each house be suspended, and this rule is hereby suspended.