By:  Lucio                                            S.B. No. 1406

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     reimbursement of the Texas Natural Resource Conservation Commission

 1-3     for the compensation and necessary expenses of a watermaster's

 1-4     office, and creation of the watermaster fund.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 11.326, Water Code, is amended to read as

 1-7     follows:

 1-8           Sec. 11.326.  Appointment of Watermaster.  (a)  The executive

 1-9     director may appoint one watermaster for each water division.

1-10           (b)  A watermaster holds office until a successor is

1-11     appointed.  The executive director may remove a watermaster at any

1-12     time.

1-13           (c)  The executive director may employ assistant watermasters

1-14     and other employees necessary to aid a watermaster in the discharge

1-15     of his duties.

1-16           (d)  In a water division in which the office of watermaster

1-17     is vacant, the executive director has the powers of a watermaster.

1-18           (e)  The executive director shall supervise and generally

1-19     direct the watermaster in the performance of his duties as defined

1-20     in Section 11.327.  A watermaster is responsible to the executive

1-21     director for the proper performance of his duties.

1-22           (f)  A person dissatisfied with any action of a watermaster

1-23     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

 3-1     of water rights;

 3-2                 (2)  review and comment to the executive director on

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

 3-4                 (3)  other duties as may be requested by the executive

 3-5     director with regard to the watermaster operations or as requested

 3-6     by holders of water rights in a water division which the committee

 3-7     deems of benefit to the administration of water rights in water

 3-8     divisions.

 3-9           SECTION 3.  Section 11.327, Water Code, is amended to read as

3-10     follows:

3-11           Sec. 11.327.  DUTIES OF WATERMASTER.  (a)  A watermaster

3-12     shall divide the water of the streams or other sources of supply of

3-13     his division in accordance with the adjudicated water rights.

3-14           (b)  A watermaster shall regulate or cause to be regulated

3-15     the controlling works of reservoirs and diversion works in time of

3-16     water shortage, as is necessary because of the rights existing in

3-17     the streams of his division, or as is necessary to prevent the

3-18     waste of water or its diversion, taking, storage, or use in excess

3-19     of the quantities to which the holders of water rights are lawfully

3-20     entitled.

3-21           (c)  A watermaster may regulate the distribution of water

3-22     from any system of works that serves users whose rights have been

3-23     separately determined.

3-24           (d)  A watermaster's duties shall not include activities

3-25     which relate to other programs of the commission, except in

 4-1     situations of imminent threat to public health and safety or the

 4-2     environment.

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

 4-4     follows:

 4-5           Sec. 11.329.  Compensation and Expenses of Watermaster.

 4-6     (a)  The commission shall pay the compensation and necessary

 4-7     expenses of a watermaster, assistant watermasters, and other

 4-8     necessary employees, but the holders of water rights that have been

 4-9     determined or adjudicated and are to be administered by the

4-10     watermaster shall reimburse the commission for the compensation and

4-11     expenses.  Necessary expenses shall be limited to [may include]

4-12     costs associated with streamflow measurement and monitoring, water

4-13     accounting, assessment billing and collection associated with a

4-14     watermaster's operation, and [any] other duties a watermaster may

4-15     be required to perform under this subchapter.

4-16           (b)  After the adjudication decree becomes final, and each

4-17     fiscal year thereafter, the executive director shall provide notice

4-18     to [notify] each holder of water rights under the decree, at least

4-19     30 days prior to the commission's holding a public hearing as

4-20     provided in Subsection (c), of the proposed budget for their

4-21     watermaster operations showing the amount of compensation and

4-22     expenses that will be required annually for the administration of

4-23     the water rights so determined.  This budget shall be furnished to

4-24     the watermaster advisory committee for comment at least 30 days

4-25     prior to notification to each holder of water rights.

 5-1           (c)  The commission shall hold a public hearing on the

 5-2     proposed fiscal year budget for each watermaster operation.  The

 5-3     commission shall [to] determine the apportionment of the costs of

 5-4     administration of adjudicated water rights among the holders of the

 5-5     rights.  After a public hearing, the commission shall issue an

 5-6     order assessing the annual cost against the holders of water rights

 5-7     to whom the water will be distributed under the final decree.  The

 5-8     commission shall equitably apportion the costs.  The executive

 5-9     director may provide for payments in installments and shall specify

5-10     the dates by which payments shall be made to the commission.  At

5-11     the request of the watermaster advisory committee the commission

5-12     may modify a fiscal year budget for any water division.

5-13           (d)  The executive director shall collect the assessments and

5-14     shall account for assessments separately for each water division

5-15     and shall deposit assessments collected to a special fund known as

5-16     the watermaster fund established and governed by Section 11.3291

5-17     [transmit all collections under this section to the State

5-18     Treasurer].

5-19           (e)  No water shall be diverted, taken, or stored by, or

5-20     delivered to, any person while he is delinquent in the payment of

5-21     his assessed costs.

5-22           (f)  An order of the commission assessing costs remains in

5-23     effect until the commission issues a further order.  The commission

5-24     may modify, revoke, or supersede an order assessing costs with a

5-25     subsequent order.  The commission may issue supplementary orders

 6-1     from time to time to apply to new diversions.

 6-2           SECTION 5.  Subchapter G, Chapter 11, Water Code, is amended

 6-3     by adding Section 11.3291 to read as follows:

 6-4           Sec. 11.3291.  WATERMASTER FUND.  (a)  The watermaster fund

 6-5     is created as a special fund in the state treasury and shall be

 6-6     administered by the commission under this subchapter and rules

 6-7     adopted by the commission.

 6-8           (b)  The legislature hereby appropriates without further

 6-9     legislative action any funds deposited in the watermaster's fund as

6-10     provided in this subchapter.  The watermaster fund shall be used:

6-11     (1) to pay the compensation and expenses of the watermaster in each

6-12     water division; (2) to pay expenditures for equipment, facilities,

6-13     and capital expenditures necessary to the watermaster operation

6-14     when recommended by the watermaster advisory committee and the

6-15     executive director and approved by the commission when hearings are

6-16     required as provided in Section 11.329; and (3) to pay into the

6-17     general revenue fund for use without further appropriation for

6-18     purposes of providing overhead and administrative expenses of the

6-19     commission in an amount not greater than 10 percent times the

6-20     approved annual budget under this subchapter in a water division.

6-21     Any amounts not used in one fiscal year shall be carried over and

6-22     used for the following fiscal year's operational expenses of the

6-23     watermaster.

6-24           (c)  The watermaster fund shall be accounted for separately

6-25     according to the appropriate water division from which the

 7-1     watermaster's assessment is collected.

 7-2           (d)  The watermaster fund shall consist of:

 7-3                 (1)  fees collected in each water division;

 7-4                 (2)  money from gifts, grants, or donations to the fund

 7-5     for designated or general lawful use; and

 7-6                 (3)  money from any other source designated by the

 7-7     legislature or the commission.

 7-8           (e)  The commission may invest, reinvest, and direct the

 7-9     investment of any available money in the fund as provided by law

7-10     for the investment of money under Section 404.024, Government Code.

7-11           SECTION 6.  This Act takes effect September 1, 1997.

7-12           SECTION 7.  The importance of this legislation and the

7-13     crowded condition of the calendars in both houses create an

7-14     emergency and an imperative public necessity that the

7-15     constitutional rule requiring bills to be read on three several

7-16     days in each house be suspended, and this rule is hereby suspended.