82R10169 MXM-F
 
  By: Garza H.B. No. 2760
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to species-protection programs for the Edwards Aquifer,
  the Guadalupe River Basin, the San Antonio River Basin, and the San
  Antonio Bay and estuary system; imposing a tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  FINDINGS AND DECLARATION OF POLICY. (a) The
  legislature makes the findings described by this section.
         (b)  The Edwards Aquifer is a unique and complex hydrological
  system and has a hydrologic interrelationship with the Guadalupe
  River and San Antonio River Basins. The aquifer is the primary
  source of water for the residents of the region and is vital to the
  general economy and welfare of this state. In keeping with these
  findings, it is necessary, appropriate, and a benefit to the
  welfare of this state to provide for the continued proper and
  effective management of the aquifer to sustain the diverse economic
  and social interests associated with the aquifer and the interests
  of those species associated with the aquifer that have been listed
  under federal law as threatened or endangered.
         (c)  The legislature passed the Act creating the Edwards
  Aquifer Authority in 1993 to provide for the necessary regulation
  and management of the aquifer. The management of the aquifer under
  the Act creating the Edwards Aquifer Authority has provided a sound
  and effective framework for the aquifer's management. To foster and
  further advance the protection of the threatened or endangered
  species associated with the aquifer, the legislature amended the
  Act creating the Edwards Aquifer Authority in 2007 to institute a
  consensus-based process that involves input from the United States
  Fish and Wildlife Service, other appropriate federal agencies, the
  Edwards Aquifer Authority, the Texas Commission on Environmental
  Quality, the Parks and Wildlife Department, the Texas Department of
  Agriculture, the Texas Water Development Board, the
  Guadalupe-Blanco River Authority, the San Antonio River Authority,
  the San Antonio Water System, and other interested stakeholders to
  develop an Edwards Aquifer recovery implementation program for the
  species in compliance with the federal Endangered Species Act of
  1973 (16 U.S.C. Section 1531 et seq.).
         (d)  The legislature created a steering committee for the
  program that, after more than three years of consensus-based study,
  investigation, and decision making, will, by the end of 2011,
  present to the Edwards Aquifer Authority certain program documents
  containing recommended courses of action for the implementation of
  certain species-protection measures for the threatened or
  endangered species associated with the aquifer and the riverine and
  riparian lands at and proximately located downstream of the Comal
  Springs and San Marcos Springs.
         (e)  In amending the Act creating the Edwards Aquifer
  Authority to institute the Edwards Aquifer recovery implementation
  program, a funding mechanism was not provided for the
  implementation of the program, and for this reason, a broad-based
  regional funding mechanism dedicated to the implementation of the
  program is required and vital to the general economy and welfare of
  this state, and particularly to the Edwards Aquifer region in South
  Central Texas and the Guadalupe River and San Antonio River Basins.
  The imposition of a sales and use tax in the area of the state that
  is the beneficiary of the activities undertaken under the Edwards
  Aquifer recovery implementation program is the most appropriate
  mechanism to generate revenue for and allocate the costs for this
  program and is in the public interest.
         (f)  The Guadalupe River and San Antonio River Basins are
  primary sources of water for the residents of South Central Texas
  and for inflows into the San Antonio Bay and estuary system and are
  vital to the general economy and welfare of this state. The
  legislature also recognizes that the ecological soundness of these
  river basins and bay system is important to the economy, health, and
  well-being of the state. For these reasons, it is necessary,
  appropriate, and a benefit to the welfare of this state to provide
  for the continued proper and effective management of the Guadalupe
  River and San Antonio River Basins and the San Antonio Bay and
  estuary system to sustain the diverse economic and social interests
  associated with these river basins and bay system and the interests
  of those species that have been listed under federal law as
  threatened or endangered or are otherwise considered to be species
  of concern and are associated with these river basins and bay
  system.
         (g)  To improve the foundation of work accomplished by the
  state relating to freshwater inflow needs for bays and estuaries in
  the state and to fully address bay and estuary environmental flow
  issues, in S.B. No. 3, Acts of the 80th Legislature, Regular
  Session, 2007, the legislature instituted a more intensive
  environmental flows process across the state to evaluate riverine
  environmental flow conditions and develop management strategies
  for addressing environmental flow needs through an ongoing,
  regional consensus-based, and adaptive approach involving balanced
  representation of stakeholders.
         (h)  To facilitate the environmental flows process, the
  legislature created the environmental flows advisory group to study
  the public policy implications for balancing the demands on the
  water resources of the state resulting from a growing population
  and the environmental flow requirements of the riverine, bay, and
  estuary systems of the state, including those in the Guadalupe
  River and San Antonio River Basins and the San Antonio Bay and
  estuary system. In the course of its work, the advisory group is
  considering issues that it determines have importance and relevance
  to the protection of environmental flows in the state's riverine,
  bay, and estuary systems, including those of the Guadalupe River
  and San Antonio River Basins and the San Antonio Bay and estuary
  system.
         (i)  To assist in the evaluation and recommendation process
  for the environmental flows process for the Guadalupe River and San
  Antonio River Basins and the San Antonio Bay and estuary system, a
  basin and bay area stakeholder committee and an expert science team
  were established to make recommendations to the environmental flows
  advisory group and the Texas Commission on Environmental Quality
  regarding environmental flow standards and strategies to meet those
  standards. After reviewing the work of the expert science team, the
  stakeholder committee is scheduled to make these recommendations in
  September 2011. After it submits its recommendations to the
  advisory group and the Texas Commission on Environmental Quality,
  the stakeholder committee will prepare a work plan as required by
  the environmental flows process that establishes, among other
  things, prioritized strategies and projects as approved by the
  advisory group, a periodic review of the environmental flow
  standards, recommendations, and strategies at least once every 10
  years, specific monitoring, studies, and activities, and a schedule
  for continuing the validation or refinement of the environmental
  flow standards, analyses, recommendations, and strategies. The
  work plan is scheduled to be completed in 2012-2013 and will be
  submitted to the advisory group for approval as required by the
  environmental flows process.
         (j)  In creating the environmental flows process, a funding
  mechanism was not provided for the development of the work plan or
  the implementation of strategies to meet the environmental flow
  standards recommended by the stakeholder committee for the
  Guadalupe River and San Antonio River Basins and the San Antonio Bay
  and estuary system, and for this reason, a broad-based regional
  funding mechanism dedicated to the development and implementation
  of the environmental flows work plan for the Guadalupe River and San
  Antonio River Basins and the San Antonio Bay and estuary system is
  required and vital to the general economy and welfare of this state,
  and particularly to the region encompassed by these river basins
  and estuary system. The imposition of a sales and use tax in the
  area of the state that is the beneficiary of the activities
  undertaken under the environmental flows process for these river
  basins and estuary system is the most appropriate mechanism to
  generate revenue for and allocate the costs for this process and is
  in the public interest. Because the Edwards Aquifer and the
  Guadalupe River and San Antonio River Basins have a hydrologic
  interrelationship, it is appropriate to consider them together in
  the creation of a regional funding mechanism for the implementation
  of the species-protection programs associated with these
  hydrologic systems.
         SECTION 2.  SALES AND USE TAX. Subtitle C, Title 3, Tax
  Code, is amended by adding Chapter 328 to read as follows:
  CHAPTER 328. EDWARDS AQUIFER, GUADALUPE RIVER BASIN, SAN ANTONIO
  RIVER BASIN, AND SAN ANTONIO BAY AND ESTUARY SYSTEM
  SPECIES-PROTECTION SALES AND USE TAXES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 328.001.  DEFINITION. In this chapter, "authorities"
  means the Edwards Aquifer Authority, the Guadalupe-Blanco River
  Authority, and the San Antonio River Authority.
         Sec. 328.002.  MEANING OF WORDS AND PHRASES. The words and
  phrases used in this chapter and defined by Chapters 151 and 321
  have the meanings assigned by Chapters 151 and 321.
         Sec. 328.003.  APPLICABILITY OF CERTAIN TAX CODE PROVISIONS.
  (a) Subtitles A and B, Title 2, and Chapter 151 apply to taxes
  imposed under this chapter and to the administration and
  enforcement of those taxes in the same manner that those laws apply
  to state taxes.
         (b)  Chapter 321 applies to the application, collection, and
  administration of a sales and use tax imposed under this chapter by
  the authorities.
         (c)  The following provisions of this code do not apply to a
  tax imposed under this chapter:
               (1)  Section 321.101; and
               (2)  Subchapter F, Chapter 321.
         Sec. 328.004.  APPLICABILITY TO AREA IN CERTAIN WATER
  AUTHORITIES. This chapter applies to the species-protection
  program area in the Edwards Aquifer Authority, the Guadalupe-Blanco
  River Authority, and the San Antonio River Authority.
         Sec. 328.005.  SPECIES-PROTECTION PROGRAM AREA DEFINED. (a)  
  In this section:
               (1)  "Guadalupe River Basin" has the meaning assigned
  by Section 17.1001, Water Code.
               (2)  "San Antonio River Basin" has the meaning assigned
  by Section 17.1001, Water Code.
         (b)  "Species-protection program area" means the area of a
  county:
               (1)  bordering or transected by the Guadalupe River and
  located in the geographical extent of the Guadalupe River Basin;
               (2)  bordering or transected by the San Antonio River
  and located in the geographical extent of the San Antonio River
  Basin; and
               (3)  in the Edwards Aquifer Authority.
  [Sections 328.006-328.050 reserved for expansion]
  SUBCHAPTER B. IMPOSITION OF SALES AND USE TAX FOR
  SPECIES-PROTECTION PROGRAMS
         Sec. 328.051.  AUTHORIZATION. The authorities may adopt a
  sales and use tax under this chapter in the species-protection
  program area if imposition of the tax is authorized at an election
  under Subchapter C.
         Sec. 328.052.  MAXIMUM SALES AND USE TAX RATE. (a)  The
  maximum tax rate for the tax imposed under this chapter is
  one-fourth of one percent.
         (b)  The tax authorized under this chapter must be imposed at
  the rate of one-eighth of one percent unless the Edwards Aquifer
  Authority determines under Section 17.1013, Water Code, that
  additional species-protection measures are required or the
  environmental flows advisory group approves a work plan under
  Section 11.02362(t), Water Code.
         (c)  On notification to the comptroller under Section
  17.1013(a) or Section 11.02362(t), Water Code, the tax shall be
  imposed at the rate of one-fourth of one percent beginning on the
  date provided by Section 321.102.
         Sec. 328.053.  EFFECT ON COMBINED LOCAL TAX RATE. The rate
  of the tax imposed under this chapter may not be considered in
  determining the combined or overlapping rate of local sales and use
  taxes in any area under this subtitle or another law, including:
               (1)  the Health and Safety Code;
               (2)  the Local Government Code;
               (3)  the Special District Local Laws Code; or
               (4)  the Transportation Code.
         Sec. 328.054.  DURATION OF TAX. (a) In this section,
  "Edwards Aquifer recovery implementation program" and
  "implementing agreement" have the meanings assigned by Section
  17.1001, Water Code.
         (b)  The tax imposed under this chapter may not be abolished
  or decreased during the term of the implementing agreement for the
  Edwards Aquifer recovery implementation program.
         Sec. 328.055.  USE OF TAX REVENUE. The revenue from a tax
  imposed under this chapter shall be deposited to the credit of the
  species-protection program fund established under Section 17.1002,
  Water Code. The money in the fund may be appropriated only to the
  Texas Water Development Board to provide financial assistance under
  Subchapter N, Chapter 17, Water Code.
  [Sections 328.056-328.100 reserved for expansion]
  SUBCHAPTER C. ELECTION
         Sec. 328.101.  ELECTION ON TAX. (a)  The governing bodies of
  the authorities by joint order may call an election in the
  species-protection program area in each authority to authorize the
  adoption of the tax under this chapter. For an area of
  jurisdictional overlap between the Edwards Aquifer Authority and
  one of the other two authorities, the Edwards Aquifer Authority
  will adopt the order and conduct the election for that part of the
  program area in the Edwards Aquifer Authority's jurisdiction.
         (b)  The election may be held on a uniform election date and
  in conjunction with any other election.
         (c)  The ballot shall be printed to provide for voting for or
  against the proposition: "Authorization of a sales and use tax at a
  rate of not more than one-fourth of one percent in the
  species-protection program area to provide money to the Texas Water
  Development Board for species-protection programs under Subchapter
  N, Chapter 17, Water Code, for the Edwards Aquifer recovery
  implementation program and the Guadalupe River Basin, San Antonio
  River Basin, and San Antonio Bay and estuary system environmental
  flows program."
         (d)  The tax is adopted if a majority of the votes cast in the
  election favor the proposition.
         (e)  Notwithstanding any other law, the board of the
  authorities may meet in a joint meeting to canvass the votes of the
  election, declare the results, and, if necessary, send notice to
  the comptroller of those results.
         Sec. 328.102.  NOTICE OF ELECTION. In addition to the notice
  required by Section 4.003(c), Election Code, the authorities shall
  give notice of the election to adopt the sales and use tax under
  this chapter by publishing a substantial copy of the joint order
  under Section 328.101 in a newspaper with general circulation in
  each county of the species-protection program area once a week for
  two consecutive weeks. The first publication must appear not
  earlier than the 30th day before the date set for the election.
         Sec. 328.103.  ELECTION COSTS. The authorities shall pay
  for the cost of an election held under this subchapter for their
  respective parts of the species-protection program area. For an
  area of jurisdictional overlap between the Edwards Aquifer
  Authority and one of the other two authorities, the Edwards Aquifer
  Authority shall pay the cost of conducting the election for that
  part of the program area in the Edwards Aquifer Authority's
  jurisdiction.
         SECTION 3.  FINANCIAL ASSISTANCE FOR SPECIES-PROTECTION
  PROGRAMS. Chapter 17, Water Code, is amended by adding Subchapter N
  to read as follows:
  SUBCHAPTER N. FINANCIAL ASSISTANCE TO THE SPECIES-PROTECTION
  PROGRAMS FOR THE EDWARDS AQUIFER RECOVERY IMPLEMENTATION PROGRAM
  AND THE GUADALUPE RIVER BASIN, SAN ANTONIO RIVER BASIN, AND SAN
  ANTONIO BAY AND ESTUARY SYSTEM ENVIRONMENTAL FLOWS PROGRAM
         Sec. 17.1001.  DEFINITIONS. In this subchapter:
               (1)  "Adaptive decision-making process" means the
  procedures incorporated into and made a part of the implementing
  agreement that provide for an integrated, structured, and
  interactive decision-making process to review and evaluate the
  results of the monitoring and research programs that allows for
  adjusting previous decisions made for the Edwards Aquifer recovery
  implementation program regarding the appropriate
  species-protection measures in light of the results of the
  monitoring program and other sources of new data and information.
               (2) "Adaptive management plan" means the plan
  incorporated into and made a part of the implementing agreement for
  examining alternative strategies for meeting measurable biological
  goals and objectives and then, if necessary, adjusting future
  species-protection measures according to what is learned.
               (3)  "Advisory group" has the meaning assigned by
  Section 11.002.
               (4)  "Edwards Aquifer" has the meaning assigned by
  Section 1.03, Chapter 626, Acts of the 73rd Legislature, Regular
  Session, 1993.
               (5)  "Edwards Aquifer recovery implementation program"
  means the program developed under Section 1.26A, Chapter 626, Acts
  of the 73rd Legislature, Regular Session, 1993, for the Edwards
  Aquifer for the protection of the plan species.
               (6)  "Financial assistance" means the money provided
  from the fund by the board for the purposes described by Section
  17.1002.
               (7)  "Fund" means the species-protection program fund
  created by Section 17.1002.
               (8)  "Guadalupe River Basin" means the geographical
  extent of the river basin as delineated by maps maintained by the
  board and in the Guadalupe-Blanco River Authority.
               (9)  "Guadalupe River Basin, San Antonio River Basin,
  and San Antonio Bay and estuary system environmental flows program"
  means the environmental flows program developed under Article 1,
  Chapter 1430 (S.B. 3), Acts of the 80th Legislature, Regular
  Session, 2007, for the Guadalupe River Basin, San Antonio River
  Basin, and San Antonio Bay and estuary system for, among other
  things, the protection of the species of concern.
               (10)  "Implementing agreement" means the agreement
  that binds one or more permittees to the requirements and
  responsibilities of the habitat conservation plan and incidental
  take permit approved and issued under Section 10 of the federal
  Endangered Species Act of 1973 (16 U.S.C. Section 1531 et seq.), for
  the Edwards Aquifer recovery implementation program, and any
  changes to, or renewals of, the agreement.
               (11)  "Plan species" means the species identified in
  the implementing agreement.
               (12)  "San Antonio River Basin" means the geographical
  extent of the river basin as delineated by maps maintained by the
  board and in the San Antonio River Authority.
               (13)  "San Antonio Bay and estuary system" means the
  geographical extent of the bay and estuary system having a
  hydrologic interrelationship with the Guadalupe River and San
  Antonio River Basins, separated from the Gulf of Mexico by
  Matagorda Island, and composed of those interconnected bodies of
  water known as Hynes Bay, Mission Lake, and Guadalupe Bay in the
  northwest, Ayres and Mesquite Bays to the southwest, and Espiritu
  Santo Bay to the east.
               (14)  "Species of concern" means species located in the
  Guadalupe River Basin, the San Antonio River Basin, and the San
  Antonio Bay and estuary system that are:
                     (A)  listed as threatened or endangered under
  Section 4 of the federal Endangered Species Act of 1973 (16 U.S.C.
  Section 1531 et seq.);
                     (B)  listed by the Parks and Wildlife Department
  as threatened or endangered; or
                     (C)  determined by the advisory group, or the
  Guadalupe-Blanco River Authority and the San Antonio River
  Authority, to be at risk because of declines in populations or
  habitat, or are otherwise in need of concentrated conservation
  actions.
               (15)  "Species-protection measure" means the
  activities incorporated into and made a part of the implementing
  agreement to:
                     (A)  manage water in and withdrawn from the
  Edwards Aquifer, and water discharging from Comal Springs and San
  Marcos Springs, for the protection of the species identified in the
  implementing agreement;
                     (B)  restore the habitat of the species identified
  in the implementing agreement;
                     (C)  minimize and mitigate the impact of the
  adverse effects of the activities covered by the incidental take
  permit issued for the Edwards Aquifer recovery implementation
  program;
                     (D)  implement the adaptive management plan; and
                     (E)  implement the adaptive decision-making
  process.
               (16)  "Work plan" means the document required to be
  prepared for the Guadalupe River Basin, San Antonio River Basin,
  and San Antonio Bay and estuary system environmental flows program
  by the stakeholder committees established under Section
  11.02362(d) and submitted to the advisory group for approval under
  Section 11.02362(p) that:
                     (A)  makes recommendations regarding
  environmental flow standards and strategies and projects to meet
  those standards;
                     (B)  prioritizes the strategies and projects;
                     (C)  provides for a periodic review to occur at
  least once every 10 years of the environmental flow analyses and
  environmental flow regime recommendations, environmental flow
  standards, and strategies;
                     (D)  prescribes specific monitoring, studies, and
  activities; and
                     (E)  establishes a schedule for continuing the
  validation or refinement of the environmental flow analysis and
  environmental flow regime recommendation, the environmental flow
  standards adopted by the Texas Commission on Environmental Quality,
  and the strategies to achieve those standards.
         Sec. 17.1002.  FUND CREATED. (a) There is created in the
  state treasury outside the general revenue fund a special fund
  known as the species-protection program fund, and the board shall
  administer the fund in accordance with this subchapter.
         (b)  The fund consists of:
               (1)  revenue from the tax imposed under Chapter 328,
  Tax Code;
               (2)  earnings on the investment of money credited to
  the fund; and
               (3)  interest earned on the fund.
         (c)  The fund may be appropriated only to the board and only
  to provide financial assistance for:
               (1)  implementing species-protection measures for the
  Edwards Aquifer recovery implementation program;
               (2)  implementing the adaptive management plan for the
  Edwards Aquifer recovery implementation program;
               (3)  paying research and planning costs associated with
  the implementation of species-protection measures or the adaptive
  management plan, including planning, engineering, architectural,
  legal, title, fiscal, economic, and any other study, survey,
  design, or research and investigation costs;
               (4)  providing money for the state's participation in
  any federal program that may provide money for the Edwards Aquifer
  recovery implementation program;
               (5)  paying research, planning, development, and
  preparation costs of the work plan for the Guadalupe River Basin,
  San Antonio River Basin, and San Antonio Bay and estuary system
  environmental flows program; or
               (6)  providing water projects in the Guadalupe River
  Basin, the San Antonio River Basin, or the San Antonio Bay and
  estuary system related to species of concern as recommended in the
  approved work plan, or as approved by the Guadalupe-Blanco River
  Authority and the San Antonio River Authority.
         (d)  From money appropriated to the board from the fund, the
  board shall allocate not less than $1.5 million per state fiscal
  year for purposes described by Subsections (c)(5) and (6). After
  that first $1.5 million has been allocated, the board shall give
  priority to providing financial assistance for purposes described
  by Subsections (c)(1)-(4).
         Sec. 17.1003.  EXEMPTION FROM LAW ON USE OF DEDICATED
  REVENUE. Section 403.095, Government Code, does not apply to the
  fund.
         Sec. 17.1004.  DEPOSITS TO FUND. The board shall deposit in
  the fund all amounts received from the tax imposed under Chapter
  328, Tax Code.
         Sec. 17.1005.  INVESTMENT OF MONEY IN FUND; INTEREST.  (a)  
  The board shall invest, reinvest, and direct the investment of
  money accumulated in the fund.
         (b)  Section 404.071, Government Code, does not apply to the
  fund.
         Sec. 17.1006.  USE OF FUND. The board shall provide
  financial assistance to an applicant from money in the fund only in
  accordance with this subchapter.  The board may not make financial
  assistance available under this subchapter from any other fund.
         Sec. 17.1007.  FEES; RULE.  (a)  The board by rule may set a
  fee at an amount necessary to recover the costs incurred by the
  board in administering the fund.
         (b)  The board may not set a fee for the filing of an
  application for financial assistance.
         (c)  Board fees may not exceed the cost to the board of
  performing the administrative functions necessary to administer
  the fund.  The fee may be deducted from the fund on an annual basis
  as determined by the board.
         Sec. 17.1008.  ELIGIBLE APPLICANT.  (a)  The following
  persons may apply to the board for financial assistance for a
  purpose described by Section 17.1002(c)(1), (2), (3), or (4):
               (1)  the Edwards Aquifer Authority; or
               (2)  a party to the implementing agreement authorized
  under Section 17.1009(b)(2) to apply for financial assistance.
         (b)  The following persons may apply to the board for
  financial assistance for a purpose described by Section
  17.1002(c)(5) or (6):
               (1)  the Guadalupe-Blanco River Authority; or
               (2)  the San Antonio River Authority.
         Sec. 17.1009.  APPLICATION FOR FINANCIAL ASSISTANCE. (a)  A
  person who applies to the board for financial assistance shall
  apply in affidavit form.
         (b)  The application must include:
               (1)  the name and contact information of the applicant
  and its principal officers;
               (2)  a resolution of the applicant representing that
  the filing of the application has been authorized by the governing
  body or other appropriate official of the applicant;
               (3)  a description of the purposes for which financial
  assistance is applied for under Section 17.1002(c);
               (4)  for applications for financial assistance under
  Section 17.1002(c)(1), (2), (3), or (4), a statement that the
  implementing agreement, habitat conservation plan, incidental take
  permit, or other appropriate regulatory document authorizes the
  proposed activity to be performed;
               (5)  for applications for financial assistance under
  Section 17.1002(c)(5) or (6):
                     (A)  a statement that the financial assistance is
  for researching, planning, developing, and preparing the work plan
  for the Guadalupe River Basin, San Antonio River Basin, and San
  Antonio Bay and estuary system environmental flows program; or
                     (B)  a description of a water project
  demonstrating that:
                           (i)  the project is in the Guadalupe River
  Basin, the San Antonio River Basin, or the San Antonio Bay and
  estuary system;
                           (ii)  the project relates to species of
  concern; and
                           (iii)  the approved work plan, or the action
  of the Guadalupe-Blanco River Authority and the San Antonio River
  Authority, authorizes the proposed water project to be performed;
               (6)  citations to all appropriate documents requested
  by the board demonstrating that the proposed activity is
  authorized;
               (7)  a brief action plan for the proposed activity for
  the period for which financial assistance is sought;
               (8)  a budget showing the estimated total cost of the
  proposed activity and the amount anticipated to be expended for the
  period for which financial assistance is sought; and
               (9)  the amount of financial assistance requested.
         (c)  The application must be filed with the board not later
  than September 30th of the year preceding the year for which
  financial assistance is sought.
         Sec. 17.1010.  ACTION ON THE APPLICATION. (a)  The board
  shall approve an application under Section 17.1009 for an applicant
  that demonstrates:
               (1)  the applicant is eligible to apply under Section
  17.1008;
               (2)  authorization as described by Section
  17.1009(b)(2);
               (3)  the proposed activity is authorized for financial
  assistance in Section 17.1002(c);
               (4)  the proposed activity is authorized to be
  performed by the implementing agreement or work plan, or other
  authorization, as applicable;
               (5)  the action plan describes the proposed activity
  for the period for which financial assistance is sought;
               (6)  the budget states the estimated total costs of the
  proposed activities and the amount anticipated to be spent for the
  period for which financial assistance is sought;
               (7)  the fund balance is sufficient to provide
  financial assistance in the applied for amount; and
               (8)  the prioritization required by Section 17.1002(d)
  has been met, if applicable.
         (b)  The board may withhold action on an application if it
  identifies a consideration in Subsection (a) that is deficient and
  it allows reasonable time to file additional information before the
  application is reconsidered for final action.  If the reason for
  withholding action is the insufficiency of money in the fund, the
  board shall advise the applicant and withhold action on the
  application until sufficient money is available.
         (c)  The board shall notify the applicant in writing of its
  decision on the application.
         (d)  The board shall provide a written statement to an
  applicant whose application has been denied because it did not
  qualify under Subsection (a).  The statement must provide the
  reasons and justification for the denial.
         (e)  If the board approves an application under this section,
  it shall enter into a grant agreement with the applicant not later
  than the 30th day after the date it takes final action on the
  application and promptly remit the amount of the approved financial
  assistance to the applicant.
         Sec. 17.1011.  APPLICATION AMENDMENT. (a)  An applicant may
  amend an application for financial assistance by filing a written
  request to the board to take action on the application as amended.
         (b)  The board shall take action under Section 17.1010 on the
  amended application in the same manner as provided for in the
  original application.
         Sec. 17.1012.  DELEGATION TO EXECUTIVE ADMINISTRATOR. The
  board may delegate to the executive administrator its authority to
  take action on an application under this subchapter.
         Sec. 17.1013.  NOTICE OF ADDITIONAL MEASURES. (a)  If at any
  time during the term of the implementing agreement the Edwards
  Aquifer Authority determines that additional species-protection
  measures are required to achieve the biological goals of the
  Edwards Aquifer recovery implementation program and that
  additional financial assistance is required to pay for the
  additional measures, the Edwards Aquifer Authority shall give
  notice to the board and the comptroller that additional measures
  are required and that the sales and use tax rate will be increased
  as provided by Section 328.052(b), Tax Code, if the tax is being
  imposed at a rate of one-eighth of one percent.  The Edwards Aquifer
  Authority shall send the notice to the board and the comptroller by
  United States certified or registered mail.
         (b)  The notice must include:
               (1)  a summary of the findings of the adaptive
  management plan;
               (2)  a description of the alternative measures that are
  recommended to be implemented in addition to, or instead of, the
  species-protection measures that are being implemented under the
  implementing agreement;
               (3)  a summary of the results of the adaptive
  decision-making process; and
               (4)  a certified copy of the final decision by the
  United States Fish and Wildlife Service that the additional
  species-protection measures are required and that they are approved
  for implementation by the Edwards Aquifer recovery implementation
  program.
         Sec. 17.1014.  REPORT. Not later than April 1 of each year,
  the Edwards Aquifer Authority shall prepare and file with the board
  a report of:
               (1)  the preceding year's activities to implement the
  Edwards Aquifer recovery implementation program;
               (2)  the activities that are scheduled for the next
  year; and
               (3)  the amount of financial assistance that will
  likely be applied for in the next two years.
         Sec. 17.1015.  EXEMPTION FROM UNIFORM GRANT AND CONTRACT
  MANAGEMENT LAW. Chapter 783, Government Code, does not apply to
  financial assistance.
         SECTION 4.  ENVIRONMENTAL FLOW RECOMMENDATION. Section
  11.02362, Water Code, is amended by adding Subsection (t) to read as
  follows:
         (t)  On approval by the advisory group of the work plan for
  the river basin and bay system consisting of the Guadalupe River
  Basin, the San Antonio River Basin, and the San Antonio Bay and
  estuary system, the advisory group shall send to the comptroller by
  United States certified or registered mail a certified copy of the
  advisory group's approval action and a map of those river basins and
  bay system and give notice that the sales and use tax rate will be
  increased as provided by Section 328.052(b), Tax Code, if the tax is
  being imposed at a rate of one-eighth of one percent.
         SECTION 5.  TRANSITION. (a)  The Texas Water Development
  Board may not approve an application for financial assistance under
  Section 17.1010, Water Code, as added by this Act, before January 1,
  2012.
         (b) The Texas Water Development Board may not remit money
  under Subchapter N, Chapter 17, Water Code, as added by this Act,
  for applications for financial assistance approved in 2012 under
  Section 17.1010, Water Code, as added by this Act, before January 1,
  2013.
         SECTION 6.  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, 2011.