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By:  Staples                                                      S.B. No. 1362


A BILL TO BE ENTITLED

AN ACT

relating to the development of a regional water supply reservoir 
project at Lake Eastex reservoir site, the renaming of the site as 
Lake Columbia, and the acquisition of the site and other property; 
providing for the issuance of bonds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  DEFINITIONS.  In this Act:                                         
		(1)  "Authority" means the Angelina and Neches River 
Authority.             
		(2)  "Board" means the Texas Water Development Board.                         
		(3)  "Lake Columbia" means the reservoir project 
previously known as Lake Eastex authorized by Permit to Appropriate 
State Water Number 4228 (Application No. 4537) held by the 
authority.
	SECTION 2.  RENAMING OF SITE.  Because of the significant 
impact the Space Shuttle Columbia disaster has had on the people in 
East Texas and as a memorial to the seven astronauts lost in the 
disaster, the legislature has determined that the name of the Lake 
Eastex project in Cherokee and Smith counties should be renamed 
Lake Columbia.
	SECTION 3.  DESIGNATION OF SITE.  The legislature, as 
authorized by Subsection (g), Section 16.051, Water Code, 
designates the site known as the Lake Columbia 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 authority.  The legislature also 
determines that the Lake Columbia Regional Water Supply Project is 
necessary to meet water supply requirements.
	SECTION 4.  ACQUISITION AND FUNDING.  (a)  Using the state 
participation account of the Texas Water Development Fund II to 
encourage optimal regional development of the Lake Columbia 
project, the board is authorized to execute an agreement with the 
authority to acquire the entire or any undivided interest in the 
Lake Columbia site and other land needed for the project.  The 
authority shall hold title in trust for the board.
	(b)  Using the state participation account of the Texas Water 
Development Fund II, the board may issue bonds to acquire up to 50 
percent of any undivided interest in the Lake Columbia project, 
including the entire or any undivided interest in the site.
	SECTION 5.  PURCHASE OF BOARD'S INTEREST.  Any contract 
providing for state participation in the Lake Columbia site or the 
construction of a reservoir at that site must provide for the 
purchase of the board's interest in the facility in accordance with 
Subsection (b), Section 16.186, Water Code.  The board shall 
contract with the authority for such a purchase.
	SECTION 6.  EXEMPTION FROM WATER QUALITY FEES.  Neither the 
board nor the authority is required to pay water quality fees under 
Section 26.0291, Water Code, on the Lake Columbia project until it 
is completed.
	SECTION 7.  RULES.  The authority, after notice and hearing, 
may adopt rules to protect water quality in the site that are 
consistent with state and federal water quality requirements.  The 
rules may include:
		(1)  establishment of an area around the site to be 
protected from sources of pollution;
		(2)  prohibition of or restrictions on the use of 
on-site sewage disposal systems in the protected zone;
		(3)  restrictions on locating facilities that may 
discharge waste into the site; and
		(4)  other prohibitions, restrictions, or requirements 
that may be necessary to protect the water quality in the site and 
in the reservoir after it is completed.
	SECTION 8.  IMPACT FEES.  The authority may impose impact 
fees on the area regulated under rules adopted under Section 7 of 
this Act.
	SECTION 9.  EFFECTIVE DATE.  This Act takes effect 
immediately if it receives a vote of two-thirds of all the members 
elected to each house, as provided by Section 39, Article III, Texas 
Constitution.  If this Act does not receive the vote necessary for 
immediate effect, this Act takes effect September 1, 2003.