By Turner of Coleman                                  H.B. No. 1973
         77R6937 QS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the provision of water services in Williamson County
 1-3     and the use of money for water-use strategies by the Lower Colorado
 1-4     River Authority.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 27, Chapter 7, Acts of the 43rd
 1-7     Legislature, 4th Called Session, 1934 (Article 8280-107, Vernon's
 1-8     Texas Civil Statutes), is amended to read as follows:
 1-9           Sec. 27.  (a)  Notwithstanding any other provision of this
1-10     Act, the district:
1-11                 (1)  may purchase, construct, acquire, own, operate,
1-12     repair, improve, or extend any facility necessary or convenient to
1-13     provide water services in Williamson County in cooperation with
1-14     another special district, a municipality, or another governmental
1-15     entity;
1-16                 (2)  may not provide water services in the watershed of
1-17     the Brazos River unless the district obtains in writing the consent
1-18     of the Brazos River Authority before the services are provided; and
1-19                 (3)  may transfer surface water from the district to a
1-20     place in Williamson County that is outside the watershed of the
1-21     Colorado River only if the transfer is made to:
1-22                       (A)  a municipality that was a district water
1-23     customer on May 20, 1997, and located in the watersheds of both the
1-24     Colorado River and the Brazos River; or
 2-1                       (B)  a person or entity that pays for the surface
 2-2     water in an amount sufficient to pay both the district's applicable
 2-3     water rate and an additional charge to pay:
 2-4                             (i)  the costs of mitigating any adverse
 2-5     effects of the transfer of surface water to Williamson County from
 2-6     the Colorado River watershed;[,] and
 2-7                             (ii)  the cost of replacing into the
 2-8     Colorado River watershed at least 1.33 gallons of water for each
 2-9     gallon transferred out of the watershed, [provided such transfer
2-10     results in no net loss of water to the Colorado River watershed] as
2-11     determined by the district's board of directors.
2-12           (b)  Notwithstanding the amounts of surface water transferred
2-13     by the district to municipalities in accordance with Subsection
2-14     (a)(3)(A) of this section [Paragraph (A) of this subdivision], the
2-15     volume of surface water authorized for transfer by the district in
2-16     accordance with Subsection (a)(3)(B) of this section [this
2-17     paragraph] shall not exceed 75,000 [25,000] acre-feet per annum, it
2-18     being the intent of the legislature that the district shall not be
2-19     the sole provider of surface water to Williamson County.
2-20           (c) [(b)]  The district shall determine the amount of the
2-21     additional charge under Subsection (a)(3)(B) of this section.  The
2-22     additional charge may not be less than 10 percent of the district's
2-23     applicable rate per acre-foot for surface water to be transferred. 
2-24           (d)  The district shall deposit any money the district
2-25     receives from the additional charge, and may deposit any other
2-26     money as the board of directors determines, into a separate fund
2-27     designated as the agricultural water conservation fund.  The
 3-1     district may use money from the agricultural water conservation
 3-2     fund only for the development of water resources or other water use
 3-3     strategies to replace or offset the amount of surface water to be
 3-4     transferred to Williamson County, including the development and
 3-5     implementation of methods, programs, and strategies relating to
 3-6     groundwater resources, reuse, conservation, and other opportunities
 3-7     to reduce the reliance on surface water for agricultural
 3-8     irrigation, provided that the methods, programs, and strategies
 3-9     take into consideration the surface water and groundwater needs of
3-10     the affected Colorado River basin users.
3-11           (e)  Prior to its determination of the use of money from the
3-12     agricultural water conservation fund, the district shall consult
3-13     with an advisory committee composed of:
3-14                 (1)  members [representing agricultural irrigation
3-15     interests that is] appointed by the county judges of Matagorda,
3-16     Wharton, and Colorado counties to represent agricultural irrigation
3-17     interests; and
3-18                 (2)  members appointed by the county judges of Burnet,
3-19     Llano, and Travis counties to represent the Highland Lakes
3-20     interests.
3-21           (f)  The board of directors' determination of the additional
3-22     charge is not subject to review or modification by any regulatory
3-23     agency or authority.  Water resources developed or conserved
3-24     through the additional charge may be acquired from any source
3-25     inside or outside the boundaries of the district and shall be used
3-26     to benefit the water service areas of the district's irrigation
3-27     operations.
 4-1           (g)  The district shall measure and report to the advisory
 4-2     committee, the board of directors, and the county judges of
 4-3     Matagorda, Wharton, Colorado, Burnet, Llano, and Travis counties a
 4-4     comparison of:
 4-5                 (1)  the volume of water transferred to persons or
 4-6     entities in Williamson County under Subsection (a)(3)(B) of this
 4-7     section; and
 4-8                 (2)  the volume of water replaced into the Colorado
 4-9     River watershed under Subsection (a)(3)(B) of this section, both by
4-10     increasing the supply of water available for agricultural
4-11     irrigation from other sources and by decreasing the demand for
4-12     water from the Colorado River for agricultural irrigation.
4-13           (h)  The district shall ensure that the cumulative volume of
4-14     replacement water available for irrigation purposes in the Colorado
4-15     River watershed in any 12-month period is at least as large as the
4-16     volume of water transferred to persons or entities in Williamson
4-17     County under Subsection (a)(3)(B) of this section during that
4-18     period. The district shall ensure that the cumulative volume of
4-19     replacement water available for irrigation purposes in the Colorado
4-20     River watershed in any 36-month period is at least 1.33 times as
4-21     large as the volume of water transferred to persons or entities in
4-22     Williamson County under Subsection (a)(3)(B) of this section during
4-23     that period.
4-24           SECTION 2. (a)  The change in law made by this Act applies
4-25     only to a transfer of water or a determination regarding the use of
4-26     money from the agricultural water conservation fund made on or
4-27     after the effective date under Section 27, Chapter 7, Acts of the
 5-1     43rd Legislature, 4th Called Session, 1934 (Article 8280-107,
 5-2     Vernon's Texas Civil Statutes), as amended by this Act.
 5-3           (b)  This Act takes effect immediately if it receives a vote
 5-4     of two-thirds of all the members elected to each house, as provided
 5-5     by Section 39, Article III, Texas Constitution.  If this Act does
 5-6     not receive the vote necessary for immediate effect, this Act takes
 5-7     effect September 1, 2001.