Bill not drafted by TLC or Senate E&E.

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      By Gallego                                      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 directly to the

1-22     executive 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, is amended by adding

 2-2     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 (9) members, but no more than

 2-6     fifteen (15) members, who are holders of water rights or

 2-7     representatives of holders of water rights in the water division of

 2-8     a watermaster.  In appointing members of the advisory committee the

 2-9     executive director shall consider geographic representation, amount

2-10     of water rights held, different types of holders of water rights

2-11     and uses such as water districts, municipal suppliers, irrigators,

2-12     and industrial users and experience and knowledge in water

2-13     management practices.

2-14           (b)  An advisory committee member is not entitled to

2-15     reimbursement of expenses incurred or to compensation.

2-16           (c)  An advisory committee member shall serve a term of two

2-17     (2) years from date of initial appointment by the executive

2-18     director and hold office until a successor is appointed.

2-19           (d)  The advisory committee shall meet within thirty (30)

2-20     days following initial appointment by the executive director and

2-21     elect a presiding officer who shall serve on an annual basis and

2-22     the committee shall meet regularly thereafter as is necessary.

2-23           (e)  The advisory committee's duties include:  (1) general

2-24     oversight of watermaster operations and recommendations to the

2-25     executive director regarding activities of benefit to the holders

2-26     of water rights in the administration and distribution of water to

2-27     holders of water rights; (2) review and comment to the executive

2-28     director on the annual budget of the watermaster operations; (3)

2-29     other duties as may be requested by the executive director with

2-30     regard to the watermaster operation or as requested by holders of

 3-1     water rights in the water division in which the committee deems of

 3-2     benefit to administration of water rights in the water division.

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

 3-4     follows:

 3-5           Sec. 11.327.  Duties of Watermaster.  (a)  A watermaster

 3-6     shall divide the water of the streams or other sources of supply of

 3-7     his division in accordance with the adjudicated water rights.

 3-8           (b)  A watermaster shall regulate or cause to be regulated

 3-9     the controlling works of reservoirs and diversion works in time of

3-10     water shortage, as is necessary because of the rights existing in

3-11     the streams of his division, or as is necessary to prevent the

3-12     waste of water or its diversion, taking, storage, or use in excess

3-13     of the quantities to which the holders of water rights are lawfully

3-14     entitled.

3-15           (c)  A watermaster may regulate the distribution of water

3-16     from any system of works that serves users whose rights have been

3-17     separately determined.

3-18           (d)  A watermaster's duties shall not include duties not

3-19     directly associated with the duties defined in Subsections (a), (b)

3-20     or (c) or duties which relate to other activities, programs or

3-21     purposes of the commission except duties as may directly benefit

3-22     the holders of water rights in respect to their water rights when

3-23     approved by the watermaster advisory committee and executive

3-24     director.

3-25           SECTION 4.  Section 11.329, Water Code, is amended to read as

3-26     follows:

3-27           Sec. 11.329.  Compensation and Expenses of Watermaster.

3-28     (a)  The commission shall pay the compensation and necessary

3-29     expenses of a watermaster, assistant watermasters, and other

3-30     necessary employees, but the holders of water rights that have been

 4-1     determined or adjudicated and are to be administered by the

 4-2     watermaster shall reimburse the commission for the compensation and

 4-3     expenses.  Necessary expenses [may include] shall be limited to costs

 4-4     associated with streamflow measurement and monitoring, water

 4-5     accounting, assessment billing and collection done by a

 4-6     watermaster, and [any] other duties a watermaster may be required to

 4-7     perform under this subchapter.

 4-8           (b)  After the adjudication decree becomes final, and each

 4-9     fiscal year thereafter, the executive director shall notify by July

4-10     1 of each fiscal year each holder of water rights under the decree

4-11     of the budget for the watermaster operations showing the amount of

4-12     compensation and expenses that will be required annually for the

4-13     administration of the water rights so determined.  This budget

4-14     shall be furnished to the watermaster advisory committee for

4-15     comment at least thirty (30) days prior to notification to each

4-16     holder of water rights.

4-17           (c)  The commission shall hold a public hearing on the

4-18     required annual amount as set out in the budget if requested in

4-19     writing by ten (10) water right holders filed with the commission

4-20     on or before August 1 of each fiscal year.  The commission shall

4-21     hold a public hearing to determine the apportionment of the costs

4-22     of administration of adjudicated water rights among the holders of

4-23     the rights.  After [a] the public hearing or hearings, the commission

4-24     shall issue an order assessing the annual cost against the holders

4-25     of water rights to whom the water will be distributed under the

4-26     final decree.  The commission shall equitably apportion the costs.

4-27     The executive director may provide for payments in installments and

4-28     shall specify the dates by which payments shall be made to the

4-29     commission.

4-30           (d)  The executive director shall [transmit all collections

 5-1     under this section to the State Treasures] collect the assessments

 5-2     and shall account for assessments separately for each water

 5-3     division watermaster operation and shall deposit assessments

 5-4     collected to a special fund known as the Watermaster Fund

 5-5     established and governed by Section 11.3291 of this subchapter.

 5-6           (e)  No water shall be diverted, taken, or stored by, or

 5-7     delivered to, any person while he is delinquent in the payment of

 5-8     his assessed costs.

 5-9           (f)  An order of the commission assessing costs remains in

5-10     effect until the commission issues a further order.  The commission

5-11     may modify, revoke, or supersede an order assessing costs with a

5-12     subsequent order.  The commission may issue supplementary orders

5-13     from time to time to apply to new diversions.

5-14           SECTION 5.  Subchapter G, Chapter 11, is amended by adding

5-15     Section 11.3291 to read as follows:

5-16           Sec. 11.3291.  WATERMASTER FUND.  (a)  The watermaster fund

5-17     is created as a special fund in the state treasury and shall be

5-18     administered by the commission under this subchapter and rules

5-19     adopted by the commission.

5-20           (b)  The Legislature hereby appropriates without further

5-21     legislative action any funds deposited in the Watermaster's Fund as

5-22     provided in this subchapter, and the watermasters fund is created

5-23     and shall be maintained to pay:  (1) the compensation and expenses

5-24     of the watermaster in each water division; (2) expenditures for

5-25     necessary equipment, facilities, and capital expenditures necessary

5-26     to the watermaster operation when recommended by the watermaster

5-27     advisory committee and the executive director and approved by the

5-28     commission when hearings are required as provided in section

5-29     11.329; (3) pay to the general fund for use without further

5-30     appropriation for purposes of providing overhead and administrative

 6-1     expenses of the commission in an amount not greater than 2 1/2

 6-2     percent times the annual amount of assessment collected under this

 6-3     subchapter in a water division, and (4) any amounts not used in one

 6-4     fiscal year shall be carried over and used for the following fiscal

 6-5     year's operational expenses of the watermaster.

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

 6-7     according to the appropriate water division from which the

 6-8     watermaster's assessment is collected.

 6-9           (d)  The fund shall consist of:  (1) fees collected in each

6-10     water division, (2) money from gifts, grants, or donations to the

6-11     fund for designated or general lawful use and (3) money from any

6-12     other source designated by the legislature or the commission.

6-13           (e)  The commission may invest, reinvest, and direct the

6-14     investment of any available money in the fund as provided by law

6-15     for the investment of money under Section 404.024, Government Code.

6-16           SECTION 6.  This Act shall take effect and be enforced from

6-17     and after September 1, 1997.

6-18           SECTION 7.  The importance of this Legislation and the

6-19     crowded condition of the calendars in both houses create an

6-20     emergency and an imperative public necessity that the

6-21     constitutional rule requiring Bills to be read on three (3)

6-22     separate days in each house is suspended, and this rule is hereby

6-23     suspended.