By Greenberg                                          H.B. No. 3521

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the Barton Springs-Edwards Aquifer Conservation

 1-3     District.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 2 of Chapter 429, Acts of the 70th

 1-6     Legislature, Regular Session, is amended to read as follows:

 1-7           Sec. 2.  Powers and Duties of District:  (a)(1)  The district

 1-8     has the powers, duties, authority, and responsibilities provided by

 1-9     Chapter [52] 36, Water Code, for underground water conservation

1-10     districts, except as modified in this section.

1-11                 (2)  The district may not adopt rules regulating zoning

1-12     or the subdivision of land.

1-13           (b)(1)  Except as provided by Subdivision (2) of this

1-14     subsection, the district does not have the authority to levy taxes

1-15     under Section [52.351] 36.201, Water Code.

1-16                 (2)  If the user fee authorized by this section is held

1-17     unconstitutional by the Texas Supreme Court, the district may levy

1-18     a property tax as provided by Sections [52.351] 36.201 through

1-19     [52.354] 36.204, Water Code.  The property tax may be set in an

1-20     amount of not more than three cents for each $100 valuation of

1-21     property.  An election must be called and held in the district to

1-22     approve the property tax and a majority of the qualified voters

 2-1     voting at the election must approve the tax before the tax can be

 2-2     levied and collected.

 2-3           (c)(1)  The board of directors of the district (the "board")

 2-4     has by rule the authority to impose reasonable fees on each well

 2-5     for which a permit is issued by the district and which is not

 2-6     exempted from regulation by the district.  The fees may be assessed

 2-7     on an annual basis, based upon the size of column pipe used in the

 2-8     wells, the production capacity of the well, or actual, authorized,

 2-9     or anticipated pumpage.  The board may adopt rules prioritizing

2-10     water use and assign different fees to the different priorities.

2-11     The board may utilize fees as both a regulatory mechanism and a

2-12     revenue-producing mechanism.

2-13                 (2)  The board shall adopt rules relating to the rates

2-14     of fees, the manner and form for filing reports of fees, and the

2-15     manner of collection of fees.

2-16                 (3)  The money collected from fees may be used by the

2-17     district to manage and operate the district and to pay all or part

2-18     of the principal of and interest on district bonds or notes.

2-19           (d)(1)  The production capacity for exempt wells within the

2-20     district, as specified in Section [52.170] 36.117, Water Code, is

2-21     hereby reduced from 25,000 gallons per day to 10,000 gallons per

2-22     day,  or such other level as may be adopted by the Board by rule;

2-23     provided however, the district shall not deny a property owner the

2-24     ability to drill a well and produce groundwater from his property

2-25     if the well meets minimum construction, spacing and production

2-26     standards.

2-27                 (2)  The number of households that may be supplied by

 3-1     an exempt domestic well in the district, pursuant to Subdivision

 3-2     (2), Section [52.170] 36.117, Water Code, is hereby reduced to five

 3-3     or less,  or such other level as may be adopted by the Board by

 3-4     rule for the purpose of conserving water within the district.

 3-5           (e)  In addition to other remedies for violations of permits,

 3-6     rules, or orders, the district has the power to enforce its

 3-7     permits, orders, and rules as follows:

 3-8                 (1)  If it appears that a person has violated or is

 3-9     violating any provision of Chapter [52] 36, Water Code, or any

3-10     order, permit, or rule of the district, the district may file civil

3-11     suit in a district court of the county in which the violation

3-12     occurs to obtain:

3-13                       (A)  injunctive relief to restrain the person

3-14     from continuing the violation;

3-15                       (B)  assessment and recovery of a civil penalty

3-16     of not less than $50 or more than $1,000 for each violation and for

3-17     each day of violation; or

3-18                       (C)  both injunctive relief and civil penalties.

3-19                 (2)  Upon application for injunctive relief and a

3-20     finding that a person is violating or threatening to violate any

3-21     provision of this Act or any rule, permit, or other order of the

3-22     district, the district court shall grant injunctive relief as the

3-23     facts may warrant.

3-24                 (3)  Initiation of legal action to obtain penalties

3-25     shall be authorized by resolution of the board of directors or by

3-26     the district's general manager, if authorized by the board.

3-27                 (4)  The district is not required to post bond or other

 4-1     security with the court under this section and may recover

 4-2     reasonable attorney's fees and expert witness's fees in suits

 4-3     brought under this section.

 4-4           [(f)(1)  The legislature finds that the City of Austin

 4-5     currently receives, by way of the discharge of Barton Springs,

 4-6     contribution to its municipal water supply in an overall volume

 4-7     roughly equivalent to existing usage by other nonexempt users of

 4-8     water from the aquifer, and that the City of Austin shall elect two

 4-9     of the five members of the districts board of directors.]

4-10                 [(2)  The board may assess the City of Austin, as a

4-11     water use fee, each year in amount not to exceed 40 percent of the

4-12     total funding of the district received from water use fees assessed

4-13     against Austin and other nonexempt users.]

4-14           (f)(1)  The board may assess water users supplied directly or

4-15     indirectly by the City of Austin, any public or private water

4-16     utilities using groundwater from within the district, or a private

4-17     person pumping groundwater from within the district a reasonable

4-18     fee based on each living unit equivalent or meter.  The fee

4-19     structure may differentiate between meters on any reasonable basis,

4-20     including factors such as consumption, potential demand, meter

4-21     size, or line size.  A living unit equivalent or meter shall be

4-22     defined for the district by the board.

4-23                 (2)  The City of Austin, and any public or private

4-24     water utility having customers assessed a meter fee under

4-25     subsection (f)(1) of this section (except a utility supplied water

4-26     by the City of Austin which is assessed the meter fee as part of

4-27     its wholesale cost) shall include the meter fee assessed by the

 5-1     district to its wholesale and retail customers as part of its base

 5-2     rate on the customer's monthly statement, and collect and reimburse

 5-3     such fees to the district.

 5-4                 (3)  If the district assesses fees under this

 5-5     subsection (f), the provisions of Section 36.205 (c) and (d) shall

 5-6     not apply, provided that the district shall in no case assess a

 5-7     pumpage fee in excess of 30 cents per thousand gallons for use

 5-8     authorized by district pumping permits.

 5-9           (g)  The district may own, construct and operate wastewater

5-10     treatment plants and other facilities in the district which prevent

5-11     or reduce the likelihood of pollution of the aquifer or serve to

5-12     enhance water conservation.

5-13           SECTION 2.  Section 9 of Chapter 429, Acts of the 70th

5-14     Legislature, Regular Session, is amended to read as follows:

5-15           [Section 9.  BORROWING MONEY.  The district may borrow money

5-16     for purposes of the district authorized by law according to the

5-17     provisions of Subchapter J, Chapter 51, Water Code.  The district

5-18     may not borrow money for a period of more one year.]

5-19           Sec. 9.  DISTRICT FINANCES.  (a)  In addition to its

5-20     authority under Subchapters E and F, Chapter 36, Water Code, the

5-21     district may borrow money to acquire interests in real property and

5-22     for capitol projects.  This does not affect the authority of the

5-23     district in relation to the issuance of bonds.

5-24           (b)  The district may pay or reimburse a travel expense only

5-25     if:

5-26                 (1)  the expense is reasonable and necessary;

5-27                 (2)  the purpose of the travel clearly involves

 6-1     official business and is consistent with the districts legal

 6-2     authority.

 6-3           (c)  A travel expense may be paid or reimbursed according to

 6-4     the requirements of an applicable federal law or regulation, and

 6-5     this chapter does not apply to the extent necessary to avoid

 6-6     conflict with an applicable federal law or regulation.

 6-7           (d)  The district shall minimize the amount of travel

 6-8     expenses paid or reimbursed by the agency.  The district shall

 6-9     ensure that each travel arrangement is the most cost effective

6-10     considering all relevant circumstances.

6-11           SECTION 3.  SEVERABILITY.  If any section, sentence, clause

6-12     or part of this Act shall for any reason, be held invalid, such

6-13     invalidity shall not affect the remaining portions of the Act, and

6-14     it is hereby declared to be the intention of this legislature to

6-15     have passed each section, sentence, clause, or part irrespective of

6-16     the fact that any other section, sentence, clause, or part may be

6-17     declared invalid.

6-18           SECTION 4.  EMERGENCY.  The importance of this legislation

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

6-20     emergency and imperative public necessity that the constitutional

6-21     rule requiring bills to be read on three several days in each house

6-22     be suspended, and this rule is hereby suspended, and that this Act

6-23     take effect and be in force from and after its passage, and it is

6-24     so enacted.