1-1     By:  Lucio                                            S.B. No. 1406

 1-2           (In the Senate - Filed March 13, 1997; March 19, 1997, read

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

 1-4     April 18, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 9, Nays 0; April 18, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1406                   By:  Lucio

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the duties and operations of a watermaster's office,

1-11     reimbursement of the Texas Natural Resource Conservation Commission

1-12     for the compensation and necessary expenses of a watermaster's

1-13     office, and creation of the watermaster fund.

1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-15           SECTION 1.  Section 11.326, Water Code, is amended to read as

1-16     follows:

1-17           Sec. 11.326.  Appointment of Watermaster.  (a)  The executive

1-18     director may appoint one watermaster for each water division.

1-19           (b)  A watermaster holds office until a successor is

1-20     appointed.  The executive director may remove a watermaster at any

1-21     time.

1-22           (c)  The executive director may employ assistant watermasters

1-23     and other employees necessary to aid a watermaster in the discharge

1-24     of his duties.

1-25           (d)  In a water division in which the office of watermaster

1-26     is vacant, the executive director has the powers of a watermaster.

1-27           (e)  The executive director shall supervise and generally

1-28     direct the watermaster in the performance of his duties as defined

1-29     in Section 11.327.  A watermaster is responsible to the executive

1-30     director for the proper performance of his duties.

1-31           (f)  A person dissatisfied with any action of a watermaster

1-32     may apply to the executive director for relief.

1-33           SECTION 2.  Subchapter G, Chapter 11, Water Code, is amended

1-34     by adding Section 11.3261 to read as follows:

1-35           Sec. 11.3261.  WATERMASTER ADVISORY COMMITTEE.  (a)  The

1-36     executive director shall establish a watermaster advisory committee

1-37     consisting of a minimum of nine members, but no more than 15

1-38     members, who are holders of water rights or representatives of

1-39     holders of water rights in the water division of a watermaster.  In

1-40     appointing members of the advisory committee the executive director

1-41     shall consider geographic representation, amount of water rights

1-42     held, different types of holders of water rights and users such as

1-43     water districts, municipal suppliers, irrigators, and industrial

1-44     users, and experience and knowledge in water management practices.

1-45           (b)  An advisory committee member is not entitled to

1-46     reimbursement of expenses incurred or to compensation.

1-47           (c)  An advisory committee member shall serve a term of two

1-48     years from the date of initial appointment by the executive

1-49     director and hold office until a successor is appointed.

1-50           (d)  The advisory committee shall meet within 30 days

1-51     following initial appointment by the executive director and elect a

1-52     presiding officer who shall serve on an annual basis.  Following

1-53     the first meeting, the committee shall meet regularly as necessary.

1-54           (e)  The advisory committee's duties include:

1-55                 (1)  providing recommendations to the executive

1-56     director regarding activities of benefit to the holders of water

1-57     rights in the administration and distribution of water to holders

1-58     of water rights;

1-59                 (2)  review and comment to the executive director on

1-60     the annual budget of the watermaster operations; and

1-61                 (3)  other duties as may be requested by the executive

1-62     director with regard to the watermaster operations or as requested

1-63     by holders of water rights in a water division which the committee

1-64     deems of benefit to the administration of water rights in water

 2-1     divisions.

 2-2           SECTION 3.  Section 11.327, Water Code, is amended to read as

 2-3     follows:

 2-4           Sec. 11.327.  DUTIES OF WATERMASTER.  (a)  A watermaster

 2-5     shall divide the water of the streams or other sources of supply of

 2-6     his division in accordance with the adjudicated water rights.

 2-7           (b)  A watermaster shall regulate or cause to be regulated

 2-8     the controlling works of reservoirs and diversion works in time of

 2-9     water shortage, as is necessary because of the rights existing in

2-10     the streams of his division, or as is necessary to prevent the

2-11     waste of water or its diversion, taking, storage, or use in excess

2-12     of the quantities to which the holders of water rights are lawfully

2-13     entitled.

2-14           (c)  A watermaster may regulate the distribution of water

2-15     from any system of works that serves users whose rights have been

2-16     separately determined.

2-17           (d)  A watermaster's duties shall not include activities

2-18     which relate to other programs of the commission, except in

2-19     situations of imminent threat to public health and safety or the

2-20     environment.

2-21           SECTION 4.  Section 11.329, Water Code, is amended to read as

2-22     follows:

2-23           Sec. 11.329.  Compensation and Expenses of Watermaster.

2-24     (a)  The commission shall pay the compensation and necessary

2-25     expenses of a watermaster, assistant watermasters, and other

2-26     necessary employees, but the holders of water rights that have been

2-27     determined or adjudicated and are to be administered by the

2-28     watermaster shall reimburse the commission for the compensation and

2-29     expenses.  Necessary expenses shall be limited to [may include]

2-30     costs associated with streamflow measurement and monitoring, water

2-31     accounting, assessment billing and collection associated with a

2-32     watermaster's operation, and [any] other duties a watermaster may

2-33     be required to perform under this subchapter.

2-34           (b)  After the adjudication decree becomes final, and each

2-35     fiscal year thereafter, the executive director shall provide notice

2-36     to [notify] each holder of water rights under the decree, at least

2-37     30 days prior to the commission's holding a public hearing as

2-38     provided in Subsection (c), of the proposed budget for their

2-39     watermaster operations showing the amount of compensation and

2-40     expenses that will be required annually for the administration of

2-41     the water rights so determined.  This budget shall be furnished to

2-42     the watermaster advisory committee for comment at least 30 days

2-43     prior to notification to each holder of water rights.

2-44           (c)  The commission shall hold a public hearing on the

2-45     proposed fiscal year budget for each watermaster operation.  The

2-46     commission shall [to] determine the apportionment of the costs of

2-47     administration of adjudicated water rights among the holders of the

2-48     rights.  After a public hearing, the commission shall issue an

2-49     order assessing the annual cost against the holders of water rights

2-50     to whom the water will be distributed under the final decree.  The

2-51     commission shall equitably apportion the costs.  The executive

2-52     director may provide for payments in installments and shall specify

2-53     the dates by which payments shall be made to the commission.  At

2-54     the request of the watermaster advisory committee the commission

2-55     may modify a fiscal year budget for any water division.

2-56           (d)  The executive director shall collect the assessments and

2-57     shall account for assessments separately for each water division

2-58     and shall deposit assessments collected to a special fund known as

2-59     the watermaster fund established and governed by Section 11.3291

2-60     [transmit all collections under this section to the State

2-61     Treasurer].

2-62           (e)  No water shall be diverted, taken, or stored by, or

2-63     delivered to, any person while he is delinquent in the payment of

2-64     his assessed costs.

2-65           (f)  An order of the commission assessing costs remains in

2-66     effect until the commission issues a further order.  The commission

2-67     may modify, revoke, or supersede an order assessing costs with a

2-68     subsequent order.  The commission may issue supplementary orders

2-69     from time to time to apply to new diversions.

 3-1           SECTION 5.  Subchapter G, Chapter 11, Water Code, is amended

 3-2     by adding Section 11.3291 to read as follows:

 3-3           Sec. 11.3291.  WATERMASTER FUND.  (a)  The watermaster fund

 3-4     is created as a special fund in the state treasury and shall be

 3-5     administered by the commission under this subchapter and rules

 3-6     adopted by the commission.

 3-7           (b)  The legislature hereby appropriates without further

 3-8     legislative action any funds deposited in the watermaster's fund as

 3-9     provided in this subchapter.  The watermaster fund shall be used:

3-10     (1) to pay the compensation and expenses of the watermaster in each

3-11     water division; (2) to pay expenditures for equipment, facilities,

3-12     and capital expenditures necessary to the watermaster operation

3-13     when recommended by the watermaster advisory committee and the

3-14     executive director and approved by the commission when hearings are

3-15     required as provided in Section 11.329; and (3) to pay into the

3-16     general revenue fund for use without further appropriation for

3-17     purposes of providing overhead and administrative expenses of the

3-18     commission in an amount not greater than 10 percent times the

3-19     approved annual budget under this subchapter in a water division.

3-20     Any amounts not used in one fiscal year shall be carried over and

3-21     used for the following fiscal year's operational expenses of the

3-22     watermaster.

3-23           (c)  The watermaster fund shall be accounted for separately

3-24     according to the appropriate water division from which the

3-25     watermaster's assessment is collected.

3-26           (d)  The watermaster fund shall consist of:

3-27                 (1)  fees collected in each water division;

3-28                 (2)  money from gifts, grants, or donations to the fund

3-29     for designated or general lawful use; and

3-30                 (3)  money from any other source designated by the

3-31     legislature or the commission.

3-32           (e)  The commission may invest, reinvest, and direct the

3-33     investment of any available money in the fund as provided by law

3-34     for the investment of money under Section 404.024, Government Code.

3-35           SECTION 6.  This Act takes effect September 1, 1997.

3-36           SECTION 7.  The importance of this legislation and the

3-37     crowded condition of the calendars in both houses create an

3-38     emergency and an imperative public necessity that the

3-39     constitutional rule requiring bills to be read on three several

3-40     days in each house be suspended, and this rule is hereby suspended.

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