By:  Lucio                                            S.B. No. 1406

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                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.

 1-9           (a)  The executive director may appoint one watermaster for

1-10     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

1-21     defined in Section 11.327.  A watermaster is responsible directly

 2-1     to the executive director for the proper performance of his duties.

 2-2           (f)  A person dissatisfied with any action of a watermaster

 2-3     may apply to the executive director for relief.

 2-4           SECTION 2.  Subchapter G, Chapter 11, is amended by adding

 2-5     Section 11.3261 to read as follows:

 2-6           Sec. 11.3261.  WATERMASTER ADVISORY COMMITTEE.

 2-7           (a)  The executive director shall establish a Watermaster

 2-8     Advisory Committee consisting of a minimum of nine (9) members, but

 2-9     not more than fifteen (15) members, who are holders of water rights

2-10     or representatives of holders of water rights in the water division

2-11     of a watermaster.  In appointing members of the advisory committee

2-12     the executive director shall consider geographic representation,

2-13     amount of water rights held, different types of holders of water

2-14     rights and uses such as water districts, municipal suppliers,

2-15     irrigators, and industrial users and experience and knowledge in

2-16     water management practices.

2-17           (b)  An advisory committee member is not entitled to

2-18     reimbursement of expenses incurred or to compensation.

2-19           (c)  An advisory committee member shall serve a term of two

2-20     (2) years from date of initial appointment by the executive

2-21     director and hold office until a successor is appointed.

2-22           (d)  The advisory committee shall meet within thirty (30)

2-23     days following initial appointment by the executive director and

2-24     elect a presiding officer who shall serve on an annual basis and

2-25     the committee shall meet regularly thereafter as is necessary.

 3-1           (e)  The advisory committee's duties include:  (1) general

 3-2     oversight of watermaster operations and recommendations to the

 3-3     executive director regarding activities of benefit to the holders

 3-4     of water rights in the administration and distribution of water to

 3-5     holder of water rights; (2) review and comment to the executive

 3-6     director on the annual budget of the watermaster operations;

 3-7     (3) other duties as may be requested by the executive director with

 3-8     regard to the watermaster operation or as requested by holders of

 3-9     water rights in the water division in which the committee deems of

3-10     benefit to administration of water rights in the water division.

3-11           SECTION 3.  Section 11.327, Water Code, is amended to read as

3-12     follows:

3-13           Sec. 11.327.  Duties of Watermaster.

3-14           (a)  A watermaster shall divide the water of the streams or

3-15     other sources of supply of his division in accordance with the

3-16     adjudicated water rights.

3-17           (b)  A watermaster shall regulate or cause to be regulated

3-18     the controlling works of reservoirs and diversion works in time of

3-19     water shortage, as is necessary because of the rights existing in

3-20     the streams of his division, or as is necessary to prevent the

3-21     waste of water or its diversion, taking, storage, or use in excess

3-22     of the quantities to which the holders of water rights are lawfully

3-23     entitled.

3-24           (c)  A watermaster may regulate the distribution of water

3-25     from any system of works that serves users whose rights have been

 4-1     separately determined.

 4-2           (d)  A watermaster's duties shall not include duties not

 4-3     directly associated with the duties defined in Subsections (a), (b)

 4-4     or (c) or duties which relate to other activities, programs or

 4-5     purposes of the commission except duties as may directly benefit

 4-6     the holders of water rights in respect to their water rights when

 4-7     approved by the watermaster advisory committee and executive

 4-8     director.

 4-9           SECTION 4.  Section 11.329, Water Code, is amended to read as

4-10     follows:

4-11           Sec. 11.329.  Compensation and Expenses of Watermaster.

4-12           (a)  The commission shall pay the compensation and necessary

4-13     expenses of a watermaster, assistant watermasters, and other

4-14     necessary employees, but the holders of water rights that have been

4-15     determined or adjudicated and are to be administered by the

4-16     watermaster shall reimburse the commission for the compensation and

4-17     expenses.  Necessary expenses [may include] shall be limited to

4-18     costs associated with streamflow measurement and monitoring, water

4-19     accounting, assessment billing and collection done by a

4-20     watermaster, and [any] other duties a watermaster may be required

4-21     to perform under this subchapter.

4-22           (b)  After the adjudication decree becomes final, and each

4-23     fiscal year thereafter, the executive director shall notify by July

4-24     1 of each fiscal year each holder of water rights under the decree

4-25     of the budget for the watermaster operations showing the amount of

 5-1     compensation and expenses that will be required annually for the

 5-2     administration of the water rights so determined.  This budget

 5-3     shall be furnished to the watermaster advisory committee for

 5-4     comment at least thirty (30) days prior to notification to each

 5-5     holder of water rights.

 5-6           (c)  The commission shall hold a public hearing on the

 5-7     required annual amount as set out in the budget if requested in

 5-8     writing by ten (10) water right holders filed with the commission

 5-9     on or before August 1 of each fiscal year.  The commission shall

5-10     hold a public hearing to determine the apportionment of the costs

5-11     of administration of adjudicated water rights among the holders of

5-12     the rights.  After [a] the public hearing or hearings, the

5-13     commission shall issue an order assessing the annual cost against

5-14     the holders of water rights to whom the water will be distributed

5-15     under the final decree.  The commission shall equitably apportion

5-16     the costs.  The executive director may provide for payments in

5-17     installments and shall specify the dates by which payments shall be

5-18     made to the commission.

5-19           (d)  The executive director shall [transmit all collections

5-20     under this section to the State Treasurers] collect the assessments

5-21     and shall account for assessments separately for each water

5-22     division watermaster operation and shall deposit assessments

5-23     collected to a special fund known as the Watermaster Fund

5-24     established and governed by Section 11.3291 of this subchapter.

5-25           (e)  No water shall be diverted, taken, or stored by, or

 6-1     delivered to, any person while he is delinquent in the payment of

 6-2     his assessed costs.

 6-3           (f)  An order of the commission assessing costs remains in

 6-4     effect until the commission issues a further order.  The commission

 6-5     may modify, revoke, or supersede an order assessing costs with a

 6-6     subsequent order.  The commission may issue supplementary orders

 6-7     from time to time to apply to new diversions.

 6-8           SECTION 5.  Subchapter G, Chapter 11, is amended by adding

 6-9     Section 11.3291 to read as follows:

6-10           Sec. 11.3291.  WATERMASTER FUND.

6-11           (a)  The watermaster fund is created as a special fund in the

6-12     state treasury and shall be administered by the commission under

6-13     this subchapter and rules adopted by the commission.

6-14           (b)  The Legislature hereby appropriates without further

6-15     legislative action any funds deposited in the Watermaster's Fund as

6-16     provided in this subchapter, and the watermasters fund is created

6-17     and shall be maintained to pay:  (1) the compensation and expenses

6-18     of the watermaster in each water division; (2) expenditures for

6-19     necessary equipment, facilities, and capital expenditures necessary

6-20     to the watermaster operation when recommended by the watermaster

6-21     advisory committee and the executive director and approved by the

6-22     commission when hearings are required as provided in section

6-23     11.329; (3) pay to the general fund for use without further

6-24     appropriation for purposes of providing overhead and administrative

6-25     expenses of the commission in an amount not greater than 2 1/2

 7-1     percent times the annual amount of assessment collected under this

 7-2     subchapter in a water division, and (4) any amounts not used in one

 7-3     fiscal year shall be carried over and used for the following fiscal

 7-4     year's operational expenses of the watermaster.

 7-5           (c)  The watermaster fund shall be accounted for separately

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

 7-7     watermaster's assessment is collected.

 7-8           (d)  The fund shall consist of:  (1) fees collected in each

 7-9     water division, (2) money from gifts, grants, or donations to the

7-10     fund for designated or general lawful use and (3) money from any

7-11     other source designated by the legislature or the commission.

7-12           (e)  The commission may invest, reinvest, and direct the

7-13     investment of any available money in the fund as provided by law

7-14     for the investment of money under Section 404.024, Government Code.

7-15           SECTION 6.  This Act shall take effect and be enforced from

7-16     and after September 1, 1997.

7-17           SECTION 7.  The importance of this legislation and the

7-18     crowded condition of the calendars in both houses create an

7-19     emergency and an imperative public necessity that the

7-20     constitutional rule requiring bills to be read on three several

7-21     days in each house be suspended, and this rule is hereby suspended.