SRC-EPT S.B. 1362 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1362
78R6739 MI-FBy: Staples
Natural Resources
4/1/2003
As Filed


DIGEST AND PURPOSE 

Currently Lake Eastex is a part of the statewide water plan. As proposed,
S.B. 1362 designates Lake Eastex as a unique reservoir.  This bill
establishes a partnership between the Angelina and Neches River Authority
which is responsible for overseeing construction of the dam, and the Texas
Water Development Board in order to allow the river authority to secure
project funding from the Texas Water Development Fund II.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Angelina and Neches River Authority
in SECTION 6 of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  DEFINITIONS.  Defines  "authority" and "board."   

SECTION 2.  DESIGNATION OF SITE.  Provides that the legislature, as
authorized by Section 16.051(g), Water Code, designates the site known as
the Lake Eastex site on Mud Creek, a tributary of the Angelina River, in
Cherokee and Smith counties, Texas, as a site of unique value for the
construction of a dam and reservoir on Mud Creek, to impound up to 195,500
acre-feet of water as authorized by Permit to Appropriate State Water
Number 4228 (Application No. 4537) held by the Angelina Neches River
Authority (authority).  Provides that the legislature also determines that
the Lake Eastex Regional Water Supply Project is necessary to meet water
supply requirements. 

SECTION 3.  ACQUISITION AND FUNDING.  (a)  Provides that using the state
participation account of the Texas Water Development Fund II to encourage
optimal regional development of the Lake Eastex project, the Texas Water
Development Board (board) is authorized to execute an agreement with the
authority to acquire the entire or any undivided interest in the Lake
Eastex site and other land needed for the project.  Requires the authority
to hold title in trust for the board. 
 
(b)  Authorizes the board, using the state participation account of the
Texas Water Development Fund II, to issue bonds to acquire up to 50
percent of any undivided interest in the Lake Eastex project, including
the entire or any undivided interest in the site. 
 
SECTION 4.  PURCHASE OF BOARD'S INTEREST.  Requires any contract providing
for state participation in the Lake Eastex site or the construction of a
reservoir at that site to provide for the purchase of the board's interest
in the facility in accordance with Section 16.186(b), Water Code.
Requires the board to contract with the authority for such a purchase. 
 
SECTION 5.  EXEMPTION FROM WATER QUALITY FEES.  Provides that neither the
board nor the authority is required to pay water quality fees under
Section 26.0291, Water Code, on the Lake Eastex project until it is
completed. 
 
SECTION 6.  RULES.  Authorizes the authority, after notice and hearing, to
adopt rules to protect water quality in the site that are consistent with
state and federal water quality requirements.  Authorizes the rules to
include certain actions and prohibitions. 
   
SECTION 7.  IMPACT FEES.  Authorizes the authority to impose impact fees
on the area regulated under rules adopted under Section 6 of this Act. 

SECTION 8.  EFFECTIVE DATE.  Provides that this Act takes effect upon
passage or September 1, 2003.