By Cook H.B. No. 1629
77R6754 QS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the provision of water by the Lower Colorado River
1-3 Authority to a municipality outside the Colorado River basin.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 7, Acts of the 43rd Legislature, 4th
1-6 Called Session, 1934 (Article 8280-107, Vernon's Texas Civil
1-7 Statutes), is amended by adding Section 28 to read as follows:
1-8 Sec. 28. Notwithstanding any other provision of this Act or
1-9 other law:
1-10 (a) In this section, "municipality" includes a municipally
1-11 owned utility.
1-12 (b) Subject to the limitations and restrictions in this
1-13 section, the district may enter into a written contract with a
1-14 municipality located outside the Colorado River watershed to
1-15 distribute and sell water to the municipality.
1-16 (c) In addition to the district's applicable water rate, the
1-17 district shall charge a municipality a surcharge determined by the
1-18 board of directors according to the terms of the contract to enable
1-19 the district to develop and manage water resources sufficient to
1-20 address the projected needs of the district's water service area
1-21 and the needs of the municipality to the extent agreed in the
1-22 contract. The board of directors' determination of the surcharge
1-23 is not subject to review or modification by any regulatory agency
1-24 or administrative authority.
2-1 (d) The use or reservation of water under a contract
2-2 authorized by this section may extend for a base period of not more
2-3 than 50 years. A contract may provide an option to renew for not
2-4 more than an additional 30 years. An option to renew must require
2-5 that the municipality progressively reduce the amount of water
2-6 reserved or used by the municipality during the last 10 years of
2-7 the renewal term and require that the rate paid by the municipality
2-8 immediately increase by a factor of five if the municipality does
2-9 not make the required reduction. The municipality is not entitled
2-10 to further reservation, use, or delivery of water from the district
2-11 at the conclusion of the contract.
2-12 (e) The district may not amend a contract to increase the
2-13 volume of water to be sold to a municipality under this section
2-14 unless at least 12 directors vote to approve the amendment after
2-15 having consulted with the county judges of San Saba, Lampasas,
2-16 Burnet, Llano, Blanco, Travis, Bastrop, Fayette, Colorado, Wharton,
2-17 and Matagorda counties. The directors shall encourage the county
2-18 judges with whom they consult to form a committee to address the
2-19 protection of Colorado River water resources.
2-20 (f) A contract authorized by this section must require that
2-21 the rate paid by the municipality immediately increase by a factor
2-22 of five if:
2-23 (1) the municipality initiates legal proceedings in a
2-24 court or regulatory agency to obtain, or obtains, other than
2-25 through direct negotiations with the district or other than with
2-26 the express written consent of the district:
2-27 (A) an increase in the amount of surface water
3-1 taken by the municipality under this section; or
3-2 (B) an extension of either the base or renewal
3-3 periods under Subsection (d); or
3-4 (2) the district is compelled by any authority to
3-5 reserve, sell, or make available to the municipality more than
3-6 150,000 acre-feet of water per year or to reserve, sell, or make
3-7 available to the municipality water beyond the base and renewal
3-8 periods under Subsection (d).
3-9 (g) Within the district's water service area as it existed
3-10 on January 1, 2001, the district must own any personal property,
3-11 fixtures, or appurtenances that are used for making available,
3-12 diverting, or delivering water to a municipality under a contract
3-13 authorized by this section.
3-14 (h) Water to be provided under a contract authorized by this
3-15 section may not be diverted from the Colorado River at diversion
3-16 points located on the reservoirs that, on the effective date of
3-17 this section, are owned and operated by the district upstream of
3-18 Mansfield Dam.
3-19 (i) The district may sell no more than a total of 150,000
3-20 acre-feet of water in any year under contracts authorized by this
3-21 section.
3-22 (j) This section does not authorize:
3-23 (1) the district to sell its surface water rights to
3-24 any person or entity for use outside the Colorado River watershed;
3-25 or
3-26 (2) a sale or lease of water other than as
3-27 specifically authorized by this section.
4-1 (k) The district may not sell groundwater to a municipality
4-2 under this section.
4-3 (l) The district may not contract to distribute or sell
4-4 water under this section unless the district's board of directors
4-5 finds that the contract:
4-6 (1) will protect and benefit the lower Colorado River
4-7 watershed and the district's water service area, including
4-8 municipal, industrial, agricultural, recreational, and
4-9 environmental interests;
4-10 (2) is consistent with regional water management plans
4-11 filed with the Texas Water Development Board; and
4-12 (3) will benefit stored water levels in the district's
4-13 existing reservoirs.
4-14 SECTION 2. This Act constitutes full authority for a
4-15 municipality or municipally owned utility to enter into a contract
4-16 with the district under Section 28, Chapter 7, Acts of the 43rd
4-17 Legislature, 4th Called Session, 1934 (Article 8280-107, Vernon's
4-18 Texas Civil Statutes), as added by this Act. The payments made
4-19 under a contract authorized by that section are operation and
4-20 maintenance expenses of the municipality's utility system. A
4-21 municipality or municipally owned utility that enters into a
4-22 contract under that section may use proceeds from the sale of its
4-23 revenue bonds to make any such payments.
4-24 SECTION 3. This Act takes effect immediately if it receives
4-25 a vote of two-thirds of all the members elected to each house, as
4-26 provided by Section 39, Article III, Texas Constitution. If this
4-27 Act does not receive the vote necessary for immediate effect, this
5-1 Act takes effect September 1, 2001.