By:  Duncan                                           S.B. No. 1565
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the management, conservation, and use of groundwater.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 36.001, Water Code, is amended by adding
 1-5     new subdivisions (18) and (19) to read as follows:
 1-6           (18)  "Agriculture" includes the following activities:
 1-7     cultivating the soil, producing crops for human food, animal feed,
 1-8     or planting seed or for the production of fibers; floriculture,
 1-9     viticulture, silviculture, and horticulture, including the
1-10     cultivation of plants in containers or non-soil media; raising,
1-11     feeding or keeping livestock or other animals for the production of
1-12     food or fiber, leather, pelts, or other tangible products having a
1-13     commercial value; wildlife management; and planting cover crops,
1-14     including cover crops cultivated for transplantation, or leaving
1-15     land idle for the purpose of participating in any governmental
1-16     program or normal crop or livestock rotation procedure.
1-17           (19)  "Agricultural use" means any use or activity involving
1-18     agriculture, including, but not limited to, irrigation.
1-19           SECTION 2.  Section 36.205, Water Code, is amended to read as
1-20     follows:
1-21           Sec. 36.205.  AUTHORITY TO SET FEES.  (a)  A district may set
1-22     fees for administrative acts of the district, such as filing
1-23     applications.  Fees set by a district may not unreasonably exceed
 2-1     the cost to the district of performing the administrative function
 2-2     for which the fee is charged.
 2-3           (b)  A district shall set and collect fees for all services
 2-4     provided outside the boundaries of the district.  Such fees may not
 2-5     unreasonably exceed the cost to the district of providing the
 2-6     services outside of the district.
 2-7           (c)  A district may assess production fees based on the
 2-8     amount of water authorized by permit to be withdrawn from a well or
 2-9     the amount actually withdrawn.  A district may assess such
2-10     production fees in lieu of, or in conjunction with, any taxes
2-11     otherwise levied by the district.  A district may utilize revenues
2-12     generated by such production fees for any lawful purpose.
2-13     Production fees [Fees based on the amount of water to be withdrawn
2-14     from a well] shall not exceed:
2-15           (1)  one dollar per acre foot for water used for [the purpose
2-16     of irrigating agricultural crops] agriculture; or
2-17           (2)  ten dollars per acre foot per annum [17 cents per
2-18     thousand gallons] for water used for any other purpose.
2-19           (d)  The Barton Springs-Edwards Aquifer Conservation District
2-20     may not charge production fees in excess of one dollar per acre
2-21     foot per annum for water used for the purpose of irrigating
2-22     agricultural crops, or 17 cents per thousand gallons per annum for
2-23     water used for any other purpose.  The  Barton-Springs Edwards
2-24     Aquifer Conservation District, which [A district affected by
2-25     Subsection (c)(2) that also] may assess a water use fee against a
2-26     specific municipality shall assess an amount not to exceed 60
 3-1     percent of the total funding of the district received from water
 3-2     use fees assessed against that municipality and other nonexempt
 3-3     users in the district.  This subsection shall take precedence over
 3-4     all prior enactments.
 3-5           (e)  Subsection (c) does not apply to the following
 3-6     districts:
 3-7           (1)  the Edwards Aquifer Authority;
 3-8           (2)  the Fort Bend Subsidence District; [or]
 3-9           (3)  the Harris-Galveston Coastal Subsidence District;
3-10           (4)  the Barton Springs-Edwards Aquifer Conservation
3-11     District; or
3-12           (5)  any district that collects a property tax and was
3-13     created before September 1, 1999, unless otherwise authorized by
3-14     special law.
3-15           (f)  A district, including a district excepted by Subsection
3-16     (d), may assess a production fee under Subsection (c) of this
3-17     section for any water produced pursuant to an exemption under
3-18     Section 36.117 if that water is subsequently sold to another
3-19     person.
3-20           (g)  A district, including a district excepted by Subsection
3-21     (e), may assess a production fee under Subsection (c) of this
3-22     section for any water produced for injection into a geologic
3-23     formation for the recovery of oil or natural gas, the provisions of
3-24     Section 36.117 notwithstanding.
3-25           SECTION 3.  Amend Section 36.206, Water Code, to read as
3-26     follows:
 4-1           Sec. 36.206.  DISTRICT FEES.  (a)  A temporary board may set
 4-2     user fees to pay for the creation and initial operation of a
 4-3     district, until such time as the district creation has been
 4-4     confirmed and a permanent board has been elected by a majority vote
 4-5     of the qualified voters voting in the district in an election
 4-6     called for those purposes.
 4-7           (b)  The rate of fees set for [crop or livestock production
 4-8     or other] agricultural uses shall be no more than 20 precent of the
 4-9     rate applied to municipal uses.
4-10           SECTION 4.  This act takes effect September 1, 2001.