By:  Barrientos, Armbrister                             S.B. No. 28

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     District.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 2, Chapter 429, Acts of the 70th

 1-5     Legislature, Regular Session, 1987, is amended to read as follows:

 1-6           Sec. 2.  Powers and Duties of District.  (a)(1)  The district

 1-7     has the powers, duties, authority, and responsibilities provided by

 1-8     Chapter 36 [52], Water Code, for underground water conservation

 1-9     districts, except as modified in this section.

1-10                 (2)  The district may not adopt rules regulating zoning

1-11     or the subdivision of land.

1-12           (b)(1)  Except as provided by Subdivision (2) of this

1-13     subsection, the district does not have the authority to levy taxes

1-14     under Section 36.201 [52.351], Water Code.

1-15                 (2)  If the user fee authorized by this section is held

1-16     unconstitutional by the Texas Supreme Court, the district may levy

1-17     a property tax as provided by Sections 36.201 [52.351] through

1-18     36.204 [52.354], Water Code.  The property tax may be set in an

1-19     amount of not more than three cents for each $100 valuation of

1-20     property.  An election must be called and held in the district to

1-21     approve the property tax and a majority of the qualified voters

1-22     voting at the election must approve the tax before the tax can be

1-23     levied and collected.

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

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

 2-3     for which a permit is issued by the district and which is not

 2-4     exempted from regulation by the district.  The board by rule may

 2-5     prioritize water use and may assign different fees according to the

 2-6     priority of use.  The fees may be assessed on an annual basis,

 2-7     based upon the size of column pipe used in the wells, the

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

 2-9     anticipated pumpage.  The board may utilize fees as both a

2-10     regulatory mechanism and a revenue-producing mechanism.

2-11                 (2)  The board shall adopt rules relating to the rates

2-12     of fees, the manner and form for filing reports of fees, and the

2-13     manner of collection of fees.

2-14                 (3)  The money collected from fees may be used by the

2-15     district to manage and operate the district and to pay all or part

2-16     of the principal of and interest on district bonds or notes.

2-17                 (4)  Subsection (c), Section 36.205, Water Code, does

2-18     not apply to a fee assessed under this subsection.

2-19                 (5)  The district shall assess a fee as provided by

2-20     Subsection (d), Section 36.205, Water Code, unless the district

2-21     assesses a fee against the City of Austin under Subdivision (2) of

2-22     Subsection (f) of this section.

2-23                 (6)  The district may not assess a pumpage fee of more

2-24     than 30 cents per 1,000 gallons for a use authorized by a district

2-25     pumping permit.  The limitation provided by this subdivision does

 3-1     not apply to a fee assessed against pumpage that exceeds the

 3-2     pumpage volume allowed.  If the district assesses fees under

 3-3     Subdivision (2) of Subsection (f) of this section, proceeds from

 3-4     pumpage fees shall not be used for administration of the district

 3-5     and shall be directly spent on capital projects designed to enhance

 3-6     the quality and quantity of water in the aquifer.

 3-7           (d)(1)  The board by rule may establish a production capacity

 3-8     for exempt wells within the district that supersedes the capacity

 3-9     [, as] specified in Section 36.117 [52.170], Water Code.  If the

3-10     board does not establish another capacity, the capacity[,] is

3-11     hereby reduced from 25,000 gallons per day to 10,000 gallons per

3-12     day.

3-13                 (2)  To conserve water in the district, the board by

3-14     rule may establish a limitation on the [The] number of households

3-15     that may be supplied by an exempt domestic well in the district,

3-16     pursuant to Subdivision (2), Subsection (a), Section 36.117

3-17     [52.170], Water Code.  If the board does not establish a different

3-18     limitation, the number[,] is hereby reduced to five or less.

3-19                 (3)  Notwithstanding the provisions of Subdivision (1)

3-20     of this subsection, the district may not deny a property owner the

3-21     right to drill a well or produce groundwater from the property if

3-22     the well meets minimum construction, spacing, and production

3-23     standards.

3-24           (e)  In addition to other remedies for violations of permits,

3-25     rules, or orders, the district has the power to enforce its

 4-1     permits, orders, and rules as follows:

 4-2                 (1)  If it appears that a person has violated or is

 4-3     violating any provision of Chapter 36 [52], Water Code, or any

 4-4     order, permit, or rule of the district, the district may file civil

 4-5     suit in a district court of the county in which the violation

 4-6     occurs to obtain:

 4-7                       (A)  injunctive relief to restrain the person

 4-8     from continuing the violation;

 4-9                       (B)  assessment and recovery of a civil penalty

4-10     of not less than $50 or more than $1,000 for each violation and for

4-11     each day of violation; or

4-12                       (C)  both injunctive relief and civil penalties.

4-13                 (2)  Upon application for injunctive relief and a

4-14     finding that a person is violating or threatening to violate any

4-15     provision of this Act or any rule, permit, or other order of the

4-16     district, the district court shall grant injunctive relief as the

4-17     facts may warrant.

4-18                 (3)  Initiation of legal action to obtain penalties

4-19     shall be authorized by resolution of the board of directors or by

4-20     the district's general manager, if authorized by the board.

4-21                 (4)  The district is not required to post bond or other

4-22     security with the court under this section and may recover

4-23     reasonable attorney's fees and expert witness's fees in suits

4-24     brought under this section.

4-25           (f)(1)  The legislature finds that the City of Austin

 5-1     currently receives, by way of the discharge of Barton Springs, a

 5-2     recreational benefit, dilution of urban storm water runoff in Town

 5-3     Lake, and contribution to its municipal water supply in an overall

 5-4     volume roughly equivalent to existing usage by other nonexempt

 5-5     users of water from the aquifer[, and that the City of Austin shall

 5-6     elect two of the five members of the district's board of

 5-7     directors].

 5-8                 (2)  The board may assess a fee against:

 5-9                       (A)  the City of Austin;

5-10                       (B)  a public or private water utility that uses

5-11     groundwater from the district; or

5-12                       (C)  a private person who pumps groundwater from

5-13     the district [the City of Austin, as a water use fee, each year an

5-14     amount not to exceed 40 percent of the total funding of the

5-15     district received from water use fees assessed against Austin and

5-16     other nonexempt users].

5-17                 (3)  A fee assessed under Subdivision (2) of this

5-18     subsection must be assessed according to a living unit equivalent,

5-19     as defined by board rule, or assessed by meter.  In assessing a

5-20     fee, the board may differentiate between meters on any reasonable

5-21     basis, including:

5-22                       (A)  consumption;

5-23                       (B)  potential demand;

5-24                       (C)  meter size; or

5-25                       (D)  line size.

 6-1                 (4)  The City of Austin, and any public or private

 6-2     water utility assessed a fee under Subdivision (2) of this

 6-3     subsection, shall collect and pay the fee to the district.

 6-4                 (5)  The City of Austin and public or private water

 6-5     utilities may include a fee assessed by the district under

 6-6     Subdivision (2) of this subsection as a part of the base rate of a

 6-7     customer's monthly statement.

 6-8                 (6)  Subdivisions (4) and (5) of this subsection do not

 6-9     apply to a utility that:

6-10                       (A)  the City of Austin supplies with water; and

6-11                       (B)  is assessed a fee as part of the utility's

6-12     wholesale cost.

6-13                 (7)  Fees assessed under Subdivision (2) of this

6-14     subsection in the first year the district assesses those fees may

6-15     not exceed 110 percent of the greatest total annual revenue the

6-16     district received in any previous fiscal year.

6-17                 (8)  Except as provided by Subdivision (7) of this

6-18     subsection, if a fee assessed under Subdivision (2) of this

6-19     subsection exceeds 108 percent of the comparable fee assessed in

6-20     the fiscal year that immediately preceded the assessment, excluding

6-21     the proportional amount of the fees used to service debt, the

6-22     qualified voters of the district may petition the board to hold an

6-23     election to reduce the fee to an amount equal to 108 percent of the

6-24     previous comparable fee.  If the board receives a petition under

6-25     this subdivision, the board shall consider the petition and

 7-1     determine whether to hold an election to reduce the fee in the

 7-2     manner provided by Section 26.07, Tax Code, as if the fee were a

 7-3     tax subject to that section.  If the board calls an election, the

 7-4     district shall hold the election in accordance with the procedure

 7-5     provided for an election under Section 26.07, Tax Code, as if the

 7-6     fee were a tax subject to that section.  If the fee is reduced as a

 7-7     result of an election held under this subdivision, the district

 7-8     shall prepare new bills for the fees and shall make refunds in the

 7-9     manner provided by Section 26.07, Tax Code, as if the fee were a

7-10     tax subject to that section.  A petition under this subdivision is

7-11     valid only if the petition:

7-12                       (A)  states that it is intended to require an

7-13     election in the district on the question of reducing a fee assessed

7-14     under Subdivision (2) of this subsection;

7-15                       (B)  is signed by a number of qualified voters of

7-16     the district equal to at least 10 percent of the number of

7-17     qualified voters of the district; and

7-18                       (C)  is presented to the board on or before the

7-19     90th day after the date the board assessed the fee for the current

7-20     fiscal year.

7-21                 (9)  Subsection (d), Section 36.205, Water Code, does

7-22     not apply if the district assesses a fee against the City of Austin

7-23     under Subdivision (2) of this subsection.

7-24                 (10)  The district is subject to Chapter 551,

7-25     Government Code.  The board shall hold each public meeting at a

 8-1     time of day and on a date reasonably calculated to allow members of

 8-2     the working public to attend.

 8-3           (g)  The district may own, construct, and operate in the

 8-4     district a wastewater treatment plant or other facility that may:

 8-5                 (1)  prevent or reduce the probability of pollution of

 8-6     the aquifer; or

 8-7                 (2)  enhance water conservation or reduce water

 8-8     consumption.

 8-9           SECTION 2.  Section 9, Chapter 429, Acts of the 70th

8-10     Legislature,  Regular  Session,  1987,  is  amended to  read  as

8-11     follows:

8-12           Sec. 9.  DISTRICT FINANCES.  (a)  In addition to the

8-13     authority provided by Subchapters E and F, Chapter 36, Water Code,

8-14     the district may borrow money to acquire an interest in real

8-15     property or for a capital project.  This subsection does not apply

8-16     to the district's authority regarding bonds.

8-17           (b)  The district may pay or reimburse a travel expense only

8-18     if:

8-19                 (1)  the expense is reasonable and necessary; and

8-20                 (2)  the purpose of the travel clearly involves

8-21     official business and is consistent with the district's legal

8-22     authority.

8-23           (c)  The district may pay or reimburse a travel expense

8-24     according to requirements of an applicable federal law or rule.

8-25     The district may not apply this section in a manner that conflicts

 9-1     with any applicable federal law or rule.

 9-2           (d)  The district shall minimize the amount of reimbursed

 9-3     travel expenses.  The district shall ensure that each travel

 9-4     arrangement is the most cost-effective, considering all relevant

 9-5     circumstances [BORROWING MONEY.  The district may borrow money for

 9-6     purposes of the district authorized by law according to the

 9-7     provisions of Subchapter J, Chapter 51, Water Code.  The district

 9-8     may not borrow money for a period of more than one year].

 9-9           SECTION 3.  If any section, sentence, clause, or part of this

9-10     Act shall for any reason be held invalid, such invalidity shall not

9-11     affect the remaining portions of the Act, and it is hereby declared

9-12     to be the intention of this legislature to have passed each

9-13     section, sentence, clause, or part irrespective of the fact that

9-14     any other section, sentence, clause, or part may be declared

9-15     invalid.

9-16           SECTION 4.  The importance of this legislation and the

9-17     crowded condition of the calendars in both houses create an

9-18     emergency and an imperative public necessity that the

9-19     constitutional rule requiring bills to be read on three several

9-20     days in each house be suspended, and this rule is hereby suspended,

9-21     and that this Act take effect and be in force from and after its

9-22     passage, and it is so enacted.