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78R6739 MI-F

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 the Lake Eastex reservoir site and the acquisition of the 
site and other property.
	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.                         
	SECTION 2.  DESIGNATION OF SITE.  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 authority.  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)  Using the state 
participation account of the Texas Water Development Fund II to 
encourage optimal regional development of the Lake Eastex project, 
the 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.  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 Eastex project, 
including the entire or any undivided interest in the site.
	SECTION 4.  PURCHASE OF BOARD'S INTEREST.  Any contract 
providing for state participation in the Lake Eastex 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 
Section 16.186(b), Water Code.  The board shall contract with the 
authority for such a purchase.
	SECTION 5.  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 Eastex project until it is 
completed.
	SECTION 6.  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 7.  IMPACT FEES.  The authority may impose impact 
fees on the area regulated under rules adopted under Section 6 of 
this Act.
	SECTION 8.  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.