1-1     By:  Barrientos, Armbrister                             S.B. No. 28

 1-2           (In the Senate - Filed April 7, 1997; April 10, 1997, read

 1-3     first time and referred to Committee on Natural Resources;

 1-4     April 22, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 7, Nays 0; April 22, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 28                By:  Barrientos

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the Barton Springs-Edwards Aquifer Conservation

1-11     District.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Section 2, Chapter 429, Acts of the 70th

1-14     Legislature, Regular Session, 1987, is amended to read as follows:

1-15           Sec. 2.  Powers and Duties of District.  (a)(1)  The district

1-16     has the powers, duties, authority, and responsibilities provided by

1-17     Chapter 36 [52], Water Code, for underground water conservation

1-18     districts, except as modified in this section.

1-19                 (2)  The district may not adopt rules regulating zoning

1-20     or the subdivision of land.

1-21           (b)(1)  Except as provided by Subdivision (2) of this

1-22     subsection, the district does not have the authority to levy taxes

1-23     under Section 36.201 [52.351], Water Code.

1-24                 (2)  If the user fee authorized by this section is held

1-25     unconstitutional by the Texas Supreme Court, the district may levy

1-26     a property tax as provided by Sections 36.201 [52.351] through

1-27     36.204 [52.354], Water Code.  The property tax may be set in an

1-28     amount of not more than three cents for each $100 valuation of

1-29     property.  An election must be called and held in the district to

1-30     approve the property tax and a majority of the qualified voters

1-31     voting at the election must approve the tax before the tax can be

1-32     levied and collected.

1-33           (c)(1)  The board of directors of the district (the "board")

1-34     has by rule the authority to impose reasonable fees on each well

1-35     for which a permit is issued by the district and which is not

1-36     exempted from regulation by the district.  The board by rule may

1-37     prioritize water use and may assign different fees according to the

1-38     priority of use.  The fees may be assessed on an annual basis,

1-39     based upon the size of column pipe used in the wells, the

1-40     production capacity of the well, or actual, authorized, or

1-41     anticipated pumpage.  The board may utilize fees as both a

1-42     regulatory mechanism and a revenue-producing mechanism.

1-43                 (2)  The board shall adopt rules relating to the rates

1-44     of fees, the manner and form for filing reports of fees, and the

1-45     manner of collection of fees.

1-46                 (3)  The money collected from fees may be used by the

1-47     district to manage and operate the district and to pay all or part

1-48     of the principal of and interest on district bonds or notes.

1-49                 (4)  Subsection (c), Section 36.205, Water Code, does

1-50     not apply to a fee assessed under this subsection.

1-51                 (5)  The district shall assess a fee as provided by

1-52     Subsection (d), Section 36.205, Water Code, unless the district

1-53     assesses a fee against the City of Austin under Subdivision (2) of

1-54     Subsection (f) of this section.

1-55                 (6)  The district may not assess a pumpage fee of more

1-56     than 30 cents per 1,000 gallons for a use authorized by a district

1-57     pumping permit.  The limitation provided by this subdivision does

1-58     not apply to a fee assessed against pumpage that exceeds the

1-59     pumpage volume allowed.  If the district assesses fees under

1-60     Subdivision (2) of Subsection (f) of this section, proceeds from

1-61     pumpage fees shall not be used for administration of the district

1-62     and shall be directly spent on capital projects designed to enhance

1-63     the quality and quantity of water in the aquifer.

1-64           (d)(1)  The board by rule may establish a production capacity

 2-1     for exempt wells within the district that supersedes the capacity

 2-2     [, as] specified in Section 36.117 [52.170], Water Code.  If the

 2-3     board does not establish another capacity, the capacity[,] is

 2-4     hereby reduced from 25,000 gallons per day to 10,000 gallons per

 2-5     day.

 2-6                 (2)  To conserve water in the district, the board by

 2-7     rule may establish a limitation on the [The] number of households

 2-8     that may be supplied by an exempt domestic well in the district,

 2-9     pursuant to Subdivision (2), Subsection (a), Section 36.117

2-10     [52.170], Water Code.  If the board does not establish a different

2-11     limitation, the number[,] is hereby reduced to five or less.

2-12                 (3)  Notwithstanding the provisions of Subdivision (1)

2-13     of this subsection, the district may not deny a property owner the

2-14     right to drill a well or produce groundwater from the property if

2-15     the well meets minimum construction, spacing, and production

2-16     standards.

2-17           (e)  In addition to other remedies for violations of permits,

2-18     rules, or orders, the district has the power to enforce its

2-19     permits, orders, and rules as follows:

2-20                 (1)  If it appears that a person has violated or is

2-21     violating any provision of Chapter 36 [52], Water Code, or any

2-22     order, permit, or rule of the district, the district may file civil

2-23     suit in a district court of the county in which the violation

2-24     occurs to obtain:

2-25                       (A)  injunctive relief to restrain the person

2-26     from continuing the violation;

2-27                       (B)  assessment and recovery of a civil penalty

2-28     of not less than $50 or more than $1,000 for each violation and for

2-29     each day of violation; or

2-30                       (C)  both injunctive relief and civil penalties.

2-31                 (2)  Upon application for injunctive relief and a

2-32     finding that a person is violating or threatening to violate any

2-33     provision of this Act or any rule, permit, or other order of the

2-34     district, the district court shall grant injunctive relief as the

2-35     facts may warrant.

2-36                 (3)  Initiation of legal action to obtain penalties

2-37     shall be authorized by resolution of the board of directors or by

2-38     the district's general manager, if authorized by the board.

2-39                 (4)  The district is not required to post bond or other

2-40     security with the court under this section and may recover

2-41     reasonable attorney's fees and expert witness's fees in suits

2-42     brought under this section.

2-43           (f)(1)  The legislature finds that the City of Austin

2-44     currently receives, by way of the discharge of Barton Springs, a

2-45     recreational benefit, dilution of urban storm water runoff in Town

2-46     Lake, and contribution to its municipal water supply in an overall

2-47     volume roughly equivalent to existing usage by other nonexempt

2-48     users of water from the aquifer[, and that the City of Austin shall

2-49     elect two of the five members of the district's board of

2-50     directors].

2-51                 (2)  The board may assess a fee against:

2-52                       (A)  the City of Austin;

2-53                       (B)  a public or private water utility that uses

2-54     groundwater from the district; or

2-55                       (C)  a private person who pumps groundwater from

2-56     the district [the City of Austin, as a water use fee, each year an

2-57     amount not to exceed 40 percent of the total funding of the

2-58     district received from water use fees assessed against Austin and

2-59     other nonexempt users].

2-60                 (3)  A fee assessed under Subdivision (2) of this

2-61     subsection must be assessed according to a living unit equivalent,

2-62     as defined by board rule, or assessed by meter.  In assessing a

2-63     fee, the board may differentiate between meters on any reasonable

2-64     basis, including:

2-65                       (A)  consumption;

2-66                       (B)  potential demand;

2-67                       (C)  meter size; or

2-68                       (D)  line size.

2-69                 (4)  The City of Austin, and any public or private

 3-1     water utility assessed a fee under Subdivision (2) of this

 3-2     subsection, shall collect and pay the fee to the district.

 3-3                 (5)  The City of Austin and public or private water

 3-4     utilities may include a fee assessed by the district under

 3-5     Subdivision (2) of this subsection as a part of the base rate of a

 3-6     customer's monthly statement.

 3-7                 (6)  Subdivisions (4) and (5) of this subsection do not

 3-8     apply to a utility that:

 3-9                       (A)  the City of Austin supplies with water; and

3-10                       (B)  is assessed a fee as part of the utility's

3-11     wholesale cost.

3-12                 (7)  Fees assessed under Subdivision (2) of this

3-13     subsection in the first year the district assesses those fees may

3-14     not exceed 110 percent of the greatest total annual revenue the

3-15     district received in any previous fiscal year.

3-16                 (8)  Except as provided by Subdivision (7) of this

3-17     subsection, if a fee assessed under Subdivision (2) of this

3-18     subsection exceeds 108 percent of the comparable fee assessed in

3-19     the fiscal year that immediately preceded the assessment, excluding

3-20     the proportional amount of the fees used to service debt, the

3-21     qualified voters of the district may petition the board to hold an

3-22     election to reduce the fee to an amount equal to 108 percent of the

3-23     previous comparable fee.  If the board receives a petition under

3-24     this subdivision, the board shall consider the petition and

3-25     determine whether to hold an election to reduce the fee in the

3-26     manner provided by Section 26.07, Tax Code, as if the fee were a

3-27     tax subject to that section.  If the board calls an election, the

3-28     district shall hold the election in accordance with the procedure

3-29     provided for an election under Section 26.07, Tax Code, as if the

3-30     fee were a tax subject to that section.  If the fee is reduced as a

3-31     result of an election held under this subdivision, the district

3-32     shall prepare new bills for the fees and shall make refunds in the

3-33     manner provided by Section 26.07, Tax Code, as if the fee were a

3-34     tax subject to that section.  A petition under this subdivision is

3-35     valid only if the petition:

3-36                       (A)  states that it is intended to require an

3-37     election in the district on the question of reducing a fee assessed

3-38     under Subdivision (2) of this subsection;

3-39                       (B)  is signed by a number of qualified voters of

3-40     the district equal to at least 10 percent of the number of

3-41     qualified voters of the district; and

3-42                       (C)  is presented to the board on or before the

3-43     90th day after the date the board assessed the fee for the current

3-44     fiscal year.

3-45                 (9)  Subsection (d), Section 36.205, Water Code, does

3-46     not apply if the district assesses a fee against the City of Austin

3-47     under Subdivision (2) of this subsection.

3-48                 (10)  The district is subject to Chapter 551,

3-49     Government Code.  The board shall hold each public meeting at a

3-50     time of day and on a date reasonably calculated to allow members of

3-51     the working public to attend.

3-52           (g)  The district may own, construct, and operate in the

3-53     district a wastewater treatment plant or other facility that may:

3-54                 (1)  prevent or reduce the probability of pollution of

3-55     the aquifer; or

3-56                 (2)  enhance water conservation or reduce water

3-57     consumption.

3-58           SECTION 2.  Section 9, Chapter 429, Acts of the 70th

3-59     Legislature,  Regular  Session,  1987,  is  amended to  read  as

3-60     follows:

3-61           Sec. 9.  DISTRICT FINANCES.  (a)  In addition to the

3-62     authority provided by Subchapters E and F, Chapter 36, Water Code,

3-63     the district may borrow money to acquire an interest in real

3-64     property or for a capital project.  This subsection does not apply

3-65     to the district's authority regarding bonds.

3-66           (b)  The district may pay or reimburse a travel expense only

3-67     if:

3-68                 (1)  the expense is reasonable and necessary; and

3-69                 (2)  the purpose of the travel clearly involves

 4-1     official business and is consistent with the district's legal

 4-2     authority.

 4-3           (c)  The district may pay or reimburse a travel expense

 4-4     according to requirements of an applicable federal law or rule.

 4-5     The district may not apply this section in a manner that conflicts

 4-6     with any applicable federal law or rule.

 4-7           (d)  The district shall minimize the amount of reimbursed

 4-8     travel expenses.  The district shall ensure that each travel

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

4-10     circumstances [BORROWING MONEY.  The district may borrow money for

4-11     purposes of the district authorized by law according to the

4-12     provisions of Subchapter J, Chapter 51, Water Code.  The district

4-13     may not borrow money for a period of more than one year].

4-14           SECTION 3.  If any section, sentence, clause, or part of this

4-15     Act shall for any reason be held invalid, such invalidity shall not

4-16     affect the remaining portions of the Act, and it is hereby declared

4-17     to be the intention of this legislature to have passed each

4-18     section, sentence, clause, or part irrespective of the fact that

4-19     any other section, sentence, clause, or part may be declared

4-20     invalid.

4-21           SECTION 4.  The importance of this legislation and the

4-22     crowded condition of the calendars in both houses create an

4-23     emergency and an imperative public necessity that the

4-24     constitutional rule requiring bills to be read on three several

4-25     days in each house be suspended, and this rule is hereby suspended,

4-26     and that this Act take effect and be in force from and after its

4-27     passage, and it is so enacted.

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