Bill Number: TX73RSB 1477                      Date: 5/31/93

ENROLLED



              AN ACT

relating to the creation, administration, powers, duties,

operation, and financing of the Edwards Aquifer Authority and the

management of the Edwards Aquifer, granting the power of eminent

domain; authorizing the issuance of bonds; providing civil and

administrative penalties; and validating the creation of the Uvalde

County Underground Water Conservation District.



     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

	SECTION 1.01. FINDINGS AND DECLARATION OF POLICY.

The legislature finds that the Edwards Aquifer is a unique and complex

hydrological system, with diverse economic and social interests

dependent on the aquifer for water supply.  In keeping with that

finding, the Edwards Aquifer is declared to be a distinctive

natural resource in this state, a unique aquifer, and not an

underground stream.  To sustain these diverse interests and that

natural resource, a special regional management district is

required for the effective control of the resource to protect

terrestrial and aquatic life, domestic and municipal water

supplies, the operation of existing industries, and the economic

development of the state.  Use of water in the district for

beneficial purposes requires that all reasonable measures be taken

to be conservative in water use.

	SECTION 1.02. CREATION.

a) A conservation and reclamation district, to be known as the

Edwards Aquifer Authority, is created in all or part of Atascosa

Bexar, Caldwell, Comal, Guadalupe, Hays, Medina, and Uvalde

counties.  A confirmation election is not necessary.  The

authority is a governmental agency and a body politic and corporate.

(b) The authority is created under and is essential to

accomplish the purposes of Article XVI, Section 59, of the Texas

Constitution.

	SECTION 1.03. DEFINITIONS.

In this article:

(1) "Aquifer" means the Edwards Aquifer, which is that

portion of an arcuate belt of porous, water-bearing, predominately

carbonate rocks known as the Edwards and Associated Limestones in

the Balcones Fault Zone extending from west to east to northeast

from the hydrologic division near Brackettville in Kinney County

that separates underground flow toward the Comal Springs and San

Marcos Springs from underground flow to the Rio Grande Basin

through Uvalde, Medina, Atascosa, Bexar, Guadalupe, and Comal

counties, and in Hays County south of the hydrologic division near

Kyle that separates flow toward the San Marcos River from flow to

the Colorado River Basin.

	(2) "Augmentation" means an act or process to increase

the amount of water available for use or springflow.

	(3) "Authority" means the Edwards Aquifer Authority.

	(4) "Beneficial use" means the use of the amount of

water that is economically necessary for a purpose authorized by

law, when reasonable intelligence and reasonable diligence are used

in applying the water to that purpose.

	(5) "Board" means the board of directors of the

authority.

	(6) "Commission" means the Texas Natural Resource

Conservation Commission.

	(7) "Conservation" means any measure that would

sustain or enhance water supply.

	(8) "Diversion" means the removal of state water from

a watercourse or impoundment.

	(9) "Domestic or livestock use" means use of water

for:

		(A) drinking, washing, or culinary purposes;

		(B) irrigation of a family garden or orchard the

produce of which is for household consumption only, or

		(C) watering of animals.

	(10) "Existing user" means a person who has withdrawn

and beneficially used underground water from the aquifer on or

before June 1, 1993.

	(11) "Industrial use" means the use of water for or in

connection with commercial or industrial activities, including

manufacturing, bottling, brewing, food processing, scientific

research and technology, recycling, production of concrete,

asphalt, and cement, commercial uses of water for tourism,

entertainment, and hotel or motel lodging, generation of power

other than hydroelectric, and other business activities.

	(12) "Irrigation use" means the use of water for the

irrigation of pastures and commercial crops, including orchards.

	(13) "Livestock" means animals, beasts, or poultry

collected or raised for pleasure, recreational use, or commercial

use.

	(14) "Municipal use" means the use of water within or

outside of a municipality and its environs whether supplied by a

person, privately owned utility, political subdivision, or other

entity, including the use of treated effluent for certain purposes

specified as follows.  The term includes:

	(A) the use of water for domestic use,

the watering of lawns and family gardens, fighting fires, sprinkling

streets, flushing sewers and drains, water parks and parkways, and

recreation, including public and private swimming pools;

	(B) the use of water in industrial and

commercial enterprises supplied by a municipal distribution system

without special construction to meet its demands; and

	(C) the application of treated effluent on land

under a permit issued under Chapter 26, Water Code, if:

		(I) the primary purpose of the application

is the treatment or necessary disposal of the effluent;

		(II) the application site is a park,

parkway, golf course, or other landscaped area within the

authority's boundaries; or

		(III) the effluent applied to the site is

generated within an area for which the commission has adopted a

rule that prohibits the discharge of the effluent.

	(15) "Order" means any written directive carrying out

the powers and duties of the authority under this article.

	(16) "Person" means an individual, corporation,

organization, government or governmental subdivision or agency,

business trust, estate, trust, partnership, association, and any

other legal entity.

	(17) "Pollution" means the alteration of the physical,

thermal, chemical, or biological quality of any water in the state,

or the contamination of any water in the state that renders the

water harmful, detrimental, or injurious to humans, animal life,

vegetation, property, or public health, safety, or welfare or that

impairs the usefulness of the public enjoyment of the water for any

lawful or reasonable purpose.

	(18) "Recharge" means increasing the supply of water

to the aquifer by naturally occurring channels or artificial means.

	(19) "Reuse" means authorized use for one or more

beneficial purposes of use of water that remains unconsumed after

the water is used for the original purpose of use and before the

water is discharged or otherwise allowed to flow into a

watercourse, lake, or other body of state-owned water.

	(20) "Underground water" has the meaning assigned by

Section 52.OO1, Water Code.

	(21) "Waste" means:

		(A) withdrawal of underground water from the

aquifer at a rate and in an amount that causes or threatens to

cause intrusion into the reservoir of water unsuitable for

agricultural, gardening, domestic, or stock raising purposes;

		(B) the flowing or producing of wells from the

aquifer if the water produced 1s not used for a beneficial purpose;

		(C) escape of underground water from the aquifer

to any other reservoir that does not contain underground water;

		(D) pollution or harmful alteration of

underground water in the aquifer by salt water or other deleterious

matter admitted from another stratum or from the surface of the

ground;

		(E) willfully or negligently causing, suffering,

or permitting underground water from the aquifer to escape into any

river, creek, natural watercourse, depression, lake, reservoir,

drain, sewer, street, highway, road, or road ditch, or onto any

land other than that of the owner of the well unless such discharge

is authorized by permit, rule, or order issued by the commission

under Chapter. 26, Water Code;

		(F) underground water pumped from the aquifer

for irrigation that escapes as irrigation tailwater onto land other

than that of the owner of the well unless permission has been

granted by the occupant of the land receiving the discharge; or

(G) for water produced from an artesian well,

"waste" has the meaning assigned by Section 11.205, Water Code.

	(22) "Well" means a bored, drilled, or driven shaft or

an artificial opening in the ground made by digging, jetting, or

some other method where the depth of the shaft or opening is

greater than its largest surface dimension, but does not include a

surface pit, surface excavation, or natural depression.

	(23)"Well J-17" means state well number AY68-37-203

located in Bexar County.

	(24) "Well J-27" means state well number YP-69-50-302

located In Uvalde County.

	(25) "Withdrawal" means an act or a failure to act

that results in taking water from the aquifer by or through

man-made facilities including pumping, withdrawing, or diverting

underground water.

	SECTION 1.04. BOUNDARIES.

The authority includes the territory contained within the

following area:

	(1) all of the areas of Bexar, Medina, and Uvalde

counties;

	(2) all of the area of Comal County, except that

portion of the county that lies North of the North line through the

county of Subdivision No. 1 of the Underground Water Reservoir in

the Edwards Limestone, Balcones escarpment area, as defined by the

order of the Board of Water Engineers dated January 10, 1957;

	(3) the part of Caldwell County beginning with the

intersection of Hays County Road 266 and the San Marcos River,

	THENCE southeast along the San Marcos River to the point of

intersection of Caldwell, Guadalupe, and Gonzales counties;

	THENCE southeast along the Caldwell-Gonzales County line to

its intersection with U.S. Highway 183;

	THENCE north along U.S. Highway 183 to its intersection with

State Highway 21;

	THENCE southwest along State Highway 21 to its intersection

with Hays County Road 266;

	THENCE southwest along Hays County Road 266 to the place of

beginning;

	(4) the part of Hays County beginning on the northwest

line of the R. B. Moore Survey, Abstract 412, In Comal County where

it crosses the Comal County-Hays County line northeast along the

northwest line of said Survey to the northeast corner of said

Survey in Hays County, Texas;

	THENCE southeast in Hays County, Texas across the Jas.

Deloach Survey, Abstract 878, to the most westerly northwest corner

of the Presidio Irrigation Co. Survey, Abstract 583;

	THENCE northeast along the northwest line of said Survey to

its most northerly northwest corner,

	THENCE continuing in the same line across the R.S. Clayton

Survey 2, Block 742, to the west line of the H. & G. N. RR. Co.

Survey 1, Abstract 668;

	THENCE north along the west line of said Survey to its

northwest corner,

	THENCE east along the north line of said Survey to its

northeast corner,

	THENCE northeast across the David Wilson Survey 83, Abstract

476, to the southeast corner of the F. W. Robertson Survey 71,

Abstract 385;

	THENCE north along the east line of said Survey to the

southwest corner of the Benjamin Weed Survey 72, Abstract 483;

	THENCE east along the south line of said Survey to its

southeast corner,

	THENCE northeast across the William Gray Survey 73, Abstract

92, and the Murray Bailey Survey 75, Abstract 42, to the southwest

corner of the D. Holderman Survey 33, Abstract 225;

	THENCE north along the west line of said Survey to its

northwest corner,

	THENCE continuing in the same line to the north line of the

Day Land & Cattle Co. Survey 672;

	THENCE west along said north line of said Survey to its

northwest corner, which is in the east line of the Jesse Williams

Survey 4 to the northeast corner of said Survey;

	THENCE west along the north line of said Survey to the

Southwest corner of the Amos Singleton Survey 106, Abstract 410;

	THENCE north along the west lines of said Amos Singleton

Survey 106 and the Watkins Nobles Survey 107, Abstract 346, to the

northwest corner of said Watkins Nobles Survey 107;

	THENCE east along the north line of said Survey to the

southwest corner of the Jesusa Perez Survey 14, Abstract 363;

	THENCE north along the west line of said Jesusa Perez Survey

to its northwest corner;

	THENCE east along the north line of said Survey to its

northeast corner;

	THENCE, south along the east line of said Survey for a

distance of approximately 10,000 feet to its Intersection with

Ranch Road 150;

	THENCE, east by southeast along Ranch Road 150 approximately

24,500 feet to its intersection with the southern boundary line of

the Andrew Dunn Survey 9, Abstract 4;

	THENCE, east along the south line of said survey as it

extends and becomes the southern boundary line of the Morton M.

McCarver Survey 4, Abstract 10, for a distance of approximately

7,000 feet to its Intersection with Ranch Road 2770;

THENCE, south an Ranch Road 2770 for a distance of

approximately 400 feet to its Intersection with Farm-to-Market Road

171;

	THENCE, east along Farm-to-Market Road 171 for a distance of

approximately 10,500 feet to its Intersection with Farm-to-Market

Road 25;

	THENCE, north by northeast along Farm-to-Market Road 25 for a

distance of approximately 3,100 feet to its intersection with

Farm-to-Market Road 131;

	THENCE, east by southeast along Farm-to-Market Road 131 for a

distance of approximately 3,000 feet to its intersection with the

east line of the Thomas G. Allen Survey, Abstract 26;

	THENCE south along the east line of said Thomas G. Allen

Survey to the most northerly northwest comer of the Elisha Pruett

Survey 23, Abstract 376;

	THENCE southwest along a west line of said Elisha Pruett

Survey 23 to the west corner of said Survey,

	THENCE southeast along the southwest line of said Survey to

the north corner of the John Stewart Survey, Abstract 14;

	THENCE southwest along the northwest line of said John

Stewart Survey to its west corner;

	THENCE continuing in the same line to the most northerly

set line of the John Jones Survey, Abstract 263;

	THENCE southeast along said southwest line to an interior

corner of said John Jones Survey;

	THENCE southwest along the most southerly northwest line of

said Survey to the southwest corner of said Survey;

	THENCE southeast along the south line of said Survey to the

north corner of the James W. Williams Survey 11, Abstract 473;

	THENCE southwest along the northwest line of said James W.

Willams Survey 11 to its west corner;

	THENCE southeast along the southwest line of said Survey to

the north right-of-way line of the I. & G. N. RR.;

	THENCE southwest along said right-of-way of said 1. & G. N.

RR. to the Hays County-Comal County line;

	THENCE south along said county line to the northwest line of

the R. S. Moore Survey, Abstract 412, in Hays County where it

crosses the Hays County-Comal County line;

	(5) all of the territory of Hays County contained

within the following described area:

Beginning on the most southern point of Hays County at the

intersection of Hays, Comal, and Guadalupe Counties; then

continuing in a northeasterly direction along the Hays-Guadalupe

county line to its intersection with the Hays-Caldwell county line;

then continuing along the Hays-Caldwell county line to an

intersection with Farm-to-Market Road 150; then continuing in a

northwesterly direction along Farm-to-Market Road 150 to the

intersection with the existing southern boundary of the part of

Hays County described in Subdivision (4) of this section; then

continuing in a southwesterly direction along the existing southern

boundary of the part of Hays County described in Subdivision (4) of

this section to the intersection with the Hays-Comal county line;

then continuing in a southerly direction along the Hays-Comal

county line to the point of beginning;

	(6) the part of Guadalupe County beginning at the

Guadalupe County-Caldwell County-Hays County line at the San Marcos

River in the northeast corner of Guadalupe County, Texas.

	THENCE southwest along the Guadalupe County-Hays County line

to the intersect of the Guadalupe County-Hays County-Comal County

line.

	THENCE southwest along the Guadalupe County-Comal County line

to the intersect of the Guadalupe County-Comal County-Bexar County

intersect at the Cibolo creek.

	THENCE south along the Guadalupe County-Bexar County line

along the Cibolo creek to the intersect of the Guadalupe

County-Bexar County-Wilson County line.

	THENCE south along the Guadalupe County-Wilson County line

along the Cibolo creek to the intersect and crossing of Guadalupe

County Road 417.

	THENCE east along Guadalupe County Road 417 to the intersect

of Guadalupe County Road 417 and Guadalupe County Road 412.

	THENCE northeast along Guadalupe County Road 412 to the

intersect of Guadalupe County Road 412 and Guadalupe County Road

411 A.

	THENCE east along Guadalupe County Road 411 A to the

intersect of Guadalupe County Road 411 A and Farm-to-Market road

number 725.

	THENCE north along Farm-to-Market Road 725 to the intersect

of Farm-to-Market Road 725 and Interstate Highway 10.

	THENCE east along Interstate Highway 10 to the intersect of

Interstate Highway 10 and State Highway 90.

	THENCE east along State Highway 90 to the Guadalupe

County-Caldwell County line at the San Marcos river.

	THENCE northwest along the Guadalupe County-Caldwell County

line along the San Marcos river to the place of beginning; and

	(7) the part of Atascosa County beginning on the north

line of the Robt. C. Rogers Survey, at the Bexar County-Atascosa

County line, to its northwest corner, which is the northeast corner

of the F. Brockinzen Survey, Abstract 86;

	THENCE south along the east: line of said Survey passing

through Its southeast corner and continuing south along the east

line of the F. Brockinzen Survey, Abstract 90, to its southeast

corner,

	THENCE west along the south line of said survey to its

southwest corner;

	THENCE north along the west line of said F. Brockinzen Survey

to the southeast corner of the B. Bonngartner Survey, Abstract 87;

	THENCE west along the south line of said S. Bonngartner

Survey passing through its southwest corner and continuing along

the south line of the J. S. Goottlemann Survey, Abstract 309, to

the Atascosa County-Medina County line;

	THENCE north along the Atascosa County-Medina County line to

the Bexar County line;

	THENCE east along the Atascosa County-Bexar County line to

the place of beginning.

	SECTION 1.05. FINDINGS RELATING TO BOUNDARIES.

The legislature finds that the boundaries and field notes of the

authority form a closure.  A mistake in the field notes or in

copying the field notes in the legislative process does not affect

the organization, existence, or validity of the district or the

legality or operation of the district or its governing body.

	SECTION 1.06. FINDING OF BENEFIT.

	(a) The legislature finds that the water

in the unique underground system of water-bearing

formations known as the Edwards-Balcones Fault Zone Aquifer

has a hydrologic interrelationship to the Guadalupe,

San Antonio, San Marcos, Comal, Frio, and Nueces river basins, is the

primary source of water for the residents of the region, and is

vital to the general economy and welfare of this state.  The

legislature finds that it is necessary, appropriate, and of benefit

to the welfare of this state to provide for the management of the

aquifer through the application of management mechanisms consistent

with our legal system and appropriate to the aquifer system.

	(b) The legislature further finds that the state will be

benefited by exercise of the powers of the authority and by the

works and projects that are to be accomplished by the authority

under powers conferred by Article XVI, Section 59, of the Texas

Constitution.  The authority is created to serve a public use and

benefit.

	SECTION 1.07. OWNERSHIP OF UNDERGROUND WATER.

The ownership and rights of the owner of the land and the owner's

lessees and assigns, including holders of recorded liens or other

security interests in the land, in underground water and the contract

rights of any person who purchases water for the provision of potable

water to the public or for the resale of potable water to the

public for any use are recognized.  However, action taken pursuant

to this act may not be construed as depriving or divesting the

owner or the owner's lessees and assigns, including holders of

recorded liens or other security interests in the land, of these

ownership rights or as impairing the contract rights of any person

who purchases water for the provision of potable water to the

public or for the resale of potable water to the public for any

use, subject to the rules adopted by the authority or a district

exercising the powers provided by Chapter 52, Water Code.  The

legislature intends that just compensation be paid if

implementation of this article causes a taking of private property

or the impairment of a contract in contravention of the Texas or

federal constitution.

	SECTION 1.08 GENERAL POWERS.

	(a) The authority has all of

the powers, rights, and privileges necessary to manage, conserve,

preserve, and protect the aquifer and to increase the recharge of,

and prevent the waste or pollution of water in, the aquifer.  The

authority has all of the rights, powers, privileges, authority,

functions, and duties provided by the general law of this state

including Chapters 50, 51, and 52, Water Code, applicable to an

authority created under Article XVI, Section 59, of the Texas

Constitution.  This article prevails over any provision of general

law that is in conflict or inconsistent with this article regarding

the area of the authority's jurisdiction.

	(b) The authority's powers regarding underground water apply

only to underground water within or withdrawn from the aquifer.

This subsection is not intended to allow the authority to regulate

surface water.

	(c) The authority and local government with pollution

control powers provided under Subchapters D and E. Chapter 26,

Water Code, in order to prevent pollution and enforce water quality

standards in the counties included the authority's

boundaries and within a buffer zone that includes all of the area

less than five miles outside of those counties, shall apply

pollution control regulations equally and uniformly throughout the

area within the counties and the buffer zone.  The buffer zone does

not include the territory within a water management district

created under Chapter 654, Acts of the 71st Legislature, Regular

Session, 1989.

	SECTION 1.09. BOARD OF DIRECTORS.

	(a) The authority is governed by a board of nine directors.

	(b) The board consists of:

		(1) a member appointed by the South Central Texas

Water Advisory Committee created by this Act;

		(2) three residents of Bexar County, with two

residents appointed by the governing body of the city of San

Antonio and one resident appointed by the Commissioners Court of

Bexar County to represent cities and communities in the county

other than the city of San Antonio;

		(3) one resident of Comal County or the city of New

Braunfels appointed by the Commissioners Court of Comal County;

		(4) one resident of Hays County appointed by the

governing body of the city of San Marcos;

		(5) one resident of Medina County appointed by the

governing body of the Medina Underground Water Conservation

District;

		(6) one resident of Uvalde County appointed by the

governing body of the Uvalde Underground Water Conservation

District, and

		(7) one person appointed in rotation who is from

Atascosa, Medina, or Uvalde counties, with that person appointed by

the governing body of the Evergreen Underground Water District, by

the Medina Underground Water Conservation District, or by the

Uvalde County Underground Water Conservation District with the

person appointed by the Evergreen Underground Water District

serving the first term, followed by a person appointed by the

Medina Underground Water Conservation District to serve the second

term, followed by a person appointed by the Uvalde County

Underground Water Conservation District to serve the third term,

and rotating in that order of appointment for subsequent terms.

	(c) The Commissioners Court of Bexar County and the

governing body of the city of San Antonio shall make appointments

under Subsection (b) of this section that accurately reflect the

ethnic composition of the population of Bexar County.

	(d) The Initial directors of the board shall draw lots to

determine their terms.  Four initial directors serve terms that

expire June 1, 1995.  Five initial directors serve terms that

expire June 1, 1997.  Subsequent directors shall be appointed to

serve staggered four-year terms, the appropriate number of which

expire June 1 of each odd-numbered year.

	(e) At the initial meeting of the board, the members shall

select one member to serve as presiding officer.  The presiding

officer serves a term set by rule of the board not to exceed four

years.  An act of the board is not valid unless adopted by the

affirmative vote of a majority of the members of the board.

	(f) A board member receives no compensation for service on

the board but is entitled to reimbursement for actual and necessary

expenses incurred in the performance of the member's duties.

	(g) A board member shall hold office until a successor has

been selected and approved and has qualified by taking the oath of

office.

	(h) If a vacancy on the board occurs, the governing body

that appointed the vacating member shall appoint another person

having the same qualifications required of the vacating member to

serve the unexpired portion of the vacating members term.

SECTION 1.10. SOUTH CENTRAL TEXAS WATER ADVISORY COMMITTEE.

	(a) The South Central Texas Water Advisory Committee shall

advise the board on downstream water rights and issues.  The advisory

committee consists of one member appointed by the governing body of

each of the following counties and municipalities, except that

Atascosa and Guadalupe counties may not have a representative on

the advisory committee when the county has a representative member,

on the board:

	(1) Atascosa;

	(2) Caldwell;

	(3) Calhoun;

	(4) Comal;

	(5) DeWitt;

	(6) Goliad;

	(7) Gonzales;

	(8) Guadalupe;

	(9) Hays;

	(10) Karnes;

	(11) Medina;

	(12) Nueces;

	(13) Refugio;

	(14) San Patricio;

	(15) Uvalde;

	(16) Victoria;

	(17) Wilson;

	(18) the city of San Antonio;

	(19) the city of Victoria; and

	(20) the city of Corpus Christi.



	(b) A member must be a resident or qualified voter of or

engaged in business in a county all or part of which is included in

the member's area of representation.

	(c) The reimbursement of an advisory committee member for

expenses is on the same terms as the reimbursement of board

members.  An advisory committee member is not entitled to

compensation.

	(d) An advisory committee member holds office until a

successor is appointed.

	(e) The authority shall send to each advisory committee

member all the communications of the authority that are extended to

board members and may participate in board meetings to represent

downstream water supply concerns and assist in solutions to those

concerns.  Advisory committee members may not vote on a board

decision.

	(f) The advisory committee by resolution may request the

board to reconsider any board action that is considered

prejudicial to downstream water interests.  If the board review

does not result in a resolution satisfactory to the advisory

committee, the advisory committee by resolution may request the

commission to review the action.  The commission shall review the

action and may make a recommendation to the board. If the board

determines that the board's action is contrary to an action of the

commission affecting downstream interests, the board shall reverse

itself.

	(g) The advisory committee shall meet to organize and elect

a presiding officer.

	(h) The presiding officer of the advisory committee shall

submit a report assessing the effectiveness of the authority to the

commission and the authority by March 31 of each even-numbered

year.  The report must assess the effect on downstream water rights

of the management of the aquifer.  The authority shall consider the

report in managing the authority's affairs.

	(i) The advisory committee's duties include:

		(1) assisting the authority in developing the

authority's demand management plan for the county that the

representative represents;

		(2) assisting the authority to implement the demand

management plan; and

		(3) performing other duties requested by the board

that the representative may practicably perform.

	SECTION 1.11. GENERAL POWERS AND DUTIES OF THE BOARD AND AUTHORITY.

	(a) The board shall adopt rules necessary to carry out

the authority's powers and duties under this article, including

rules governing procedures of the board and authority.

	(b) The authority shall ensure compliance with permitting,

metering, and reporting requirements and shall regulate permits.

	(c) The authority may issue orders to enforce this article

or its rules.

	(d) The authority may:

		(1) issue or administer grants, loans, or other

financial assistance to water users for water conservation and

water reuse;

		(2) enter into contracts;

		(3) sue and be sued in its own name;

		(4) receive gifts, grants, awards, and loans for use

in carrying out its powers and duties;

		(5) hire an executive director to be the chief

administrator of the authority and other employees as necessary to

carry out its powers and duties;

		(6) delegate the power to hire employees to the

executive director of the authority;

		(7) own real and personal property;

		(8) close abandoned,, wasteful, or dangerous wells;

		(9) hold permits under state law or under federal law

pertaining to the Endangered Species Act of 1973 (16 U.S.C. Section

1531 et seq.) and its amendments;

		(10) enforce Chapter 32, Water Code, and commission

rules adopted under that Act within the authority's boundaries; and

		(11) require to be furnished to the authority water

well drillers' logs that are required by Chapter 32, Water Code, to

be kept and furnished to the committee.

	(e) The authority shall make a good faith effort to award to

minority-owned and women-owned businesses contracts issued under

the powers and duties granted under this section in the amount of

20 percent of the total amount of those contracts.  Not later than

October 31 of every even-numbered year, the authority shall file

with the governor and each house of the legislature a written

report containing the following information for the previous two

years for all businesses, for minority-owned and women-owned

businesses classified by minority group and within each minority

group classification, by gender, the total number of contracts

issued by the authority; the total dollar amount of those

contracts; and the total number of businesses submitting bids or

proposals relating to such contracts and to the purpose of such

contracts.  In this subsection:

		(1) "Minority-owned business" means a business

at least 51 percent of which is owned by members of a minority

group or, in the case of a corporation, at least 51 percent of the

shares of which are owned by members of a minority group, and that

is managed and controlled by members of a minority group in its

daily operations;

		(2) minority groups includes:

			(A) African Americans

			(B) American Indians

			(C) Asian Americans; and

			(D) Mexican Americans and other Americans of

Hispanic origin; and

		(3) 'Women-owned business" means a business entity at

least 51 percent of which is owned by women, or in the case of a

corporation, at least 51 percent of the shares of which are owned

by women, and that is managed and controlled by women in its daily

operations.

	(f) The authority may contract with a person who uses water

from the aquifer for the authority or that person to construct,

operate, own, finance, and maintain water supply facilities.

Management fees or special fees may not be used for purchasing or

operating these facilities.  For the purpose of this subsection,

"water supply facility" includes a dam, reservoir, treatment

facility, transmission facility, or recharge project.

	(g) The authority has the power of eminent domain.  The

authority may not acquire rights to underground water by the power

of eminent domain.

	(h) The authority is subject to the open meetings law,

Chapter 271, Acts of the 60th Legislature, Regular Session, 1967

Article 6252-17, Vernon's Texas Civil Statutes), the open records

law, Chapter 424, Acts of the 63rd Legislature, Regular Session,

1973 (Article 6252-17a, Vernon's Texas Civil Statutes), and the

Administrative Procedure and Texas Register Act (Article 6252-13a,

Vernon's Texas Civil Statutes).

	SECTION 1.12. SUNSET COMMISSION REVIEW.

	(a) The board is subject to review under Chapter 325, Government

Code (Texas Sunset Act), but may not be abolished under that Act.  The

review shall be conducted as if the board were scheduled to be abolished

September 1, 2005.

	(b) Unless members of the board are continued In office

after the review, their membership expires September 1, 2005.

	(c) When the membership of the board of directors expires

under Subsection (b) of this section, a new board of directors

will be appointed as provided by this article, with each new

member serving for the unexpired term of the member's predecessor.

A member whose membership has expired under Subsection (b) is not

eligible for reappointment under this subsection.

	SECTION 1.13. REUSE AUTHORIZED.

Any regulation of the withdrawal of water from the aquifer must

allow for credit to be given for certified reuse of the water.

For regulatory credit the authority or a local underground water

conservation district must certify:

	(1) the lawful use and reuse of aquifer water,

	(2) the amount of aquifer water to be used; and

	(3) the amount of aquifer withdrawals replaced by

reuse.

	SECTION 1.14. WITHDRAWALS.

	(a) Authorizations to withdraw water from the aquifer and

all authorizations and rights to make a withdrawal under this Act

shall be limited in accordance with this section to:

		(1) protect the water quality of the aquifer;

		(2) protect the water quality of the surface streams

to which the aquifer provides springflow;

		(3) achieve water conservation;

		(4) maximize the beneficial use of water available for

withdrawal from the aquifer;

		(5) protect aquatic and wildlife habitat;

		(6) protect species that are designated as threatened

or endangered under applicable federal or state law, and

		(7) provide for instream uses, bays, and estuaries.

	(b) Except as provided by Subsections (d), (f), and (h) of

this section and Section 1.26 of this article, for the period

ending December 31, 2007, the amount of permitted withdrawals from

the aquifer may not exceed 450,000 acre-feet of water for each

calendar year.

	(c) Except as provided by Subsections (d), (f), and (h) of

this section and Section 1.20 of this article, for the period

beginning January 1, 2008, the amount of permitted withdrawals from

the aquifer may not exceed 400,000 acre-feet of water for each

calendar year.

	(d) If, through studies and implementation of water

management strategies, including conservation, springflow

augmentation, diversions downstream of the springs, reuse,

supplemental recharge, conjunctive management of surface and

subsurface water, and drought management plans, the authority

determines that additional supplies are available from the aquifer

the authority, in consultation with appropriate state and federal

agencies, may review and may increase the maximum amount of

withdrawals provided by this section and set a different maximum

amount of withdrawals.

	(e) The authority may not allow withdrawals from the aquifer

through wells drilled after June 1, 1993, except additional water

as provided by Subsection (d) and then on an interruptible basis.

	(f) If the level of the aquifer is equal to or greater than

650 feet above mean sea level as measured at Well J-17, the

authority may authorize withdrawal from the San Antonio pool, on an

uninterruptible basis, of permitted amounts.  If the level of the

aquifer is equal to or greater than 845 feet at Well J-27, the

authority may authorize withdrawal from the Uvalde pool, on an

uninterruptible basis, of permitted amounts.  The authority shall

limit the additional withdrawals to ensure that springfiows are not

affected during critical drought conditions.

	(g) The authority by rule may define other pools within the

aquifer, in accordance with hydrogeologic research, and may

establish index wells for any pool to monitor the level of the

aquifer to aid the regulation of withdrawals from the pools.

	(h) To accomplish the purposes of this article, by June 1,

1994, the authority, through a program, shall implement and enforce

water management practices, procedures, and methods to ensure that,

not later than December 31, 2012, the continuous minimum

springflows of the Comal Springs and the San Marcos Springs are

maintained to protect endangered and threatened species to the

extent required by federal law.  The authority from time to time as

appropriate may revise the practices, procedures, and methods.  To

meet this requirement, the authority shall require:

		(1) phased reductions in the amount of water that may

be used or withdrawn by existing users or categories of other

users; or

		(2) implementation of alternative management

practices, procedures, and methods.

SECTION 1.15. PERMIT REQUIRED.

	(a) The authority shall manage withdrawals from the aquifer and shall

manage all withdrawal points from the aquifer as provided by this Act.

	(b) Except as provided by Sections 1.17 and 1.33 of this

article, a person may not withdraw water from the aquifer or begin

construction of a well or other works designed for the withdrawal

of water from the aquifer without obtaining a permit from the

authority.

	(c) The authority may issue regular permits, term permits,

and emergency permits.

	(d) Each permit must specify the maximum rate and total

volume of water that the water user may withdraw in a calendar

year.

SECTION 1.16. DECLARATIONS OF HISTORICAL USE; INITIAL

REGULAR PERMITS.

	(a) An existing user may apply for an initial

regular permit by filing a declaration of historical use of

underground water withdrawn from the aquifer during the historical

period from June 1, 1972, through May 31, 1993.

	(b) An existing user's declaration of historical use must be

filed on or before March 1, 1994, on a form prescribed by the

board.  An applicant for a permit must timely pay all application

fees required by the board.  An owner of a well used for irrigation

must include additional documentation of the number of acres

irrigated during the historical period provided by Subsection (a)

of this section.

	(c) An owner of a well from which the water will be used

exclusively for domestic use or watering livestock and that is

exempt under Section 1.33 of this article is not required to file a

declaration of historical use.

	(d) The board shall grant an initial regular permit to an

existing user who:

		(1) files a declaration and pays fees as required by

this section; and

		(2) establishes by convincing evidence beneficial use

of underground water from the aquifer.

	(e) To the extent water is available for permitting, the

board shall issue the existing user a permit for withdrawal of an

amount of water equal to the user's maximum beneficial use of water

without waste during any one calendar year of the historical

period.  If a water user does not have historical use for a full

year, then the authority shall issue a permit for withdrawal based

on an amount of water that would normally be beneficially used

without waste for the intended purpose for a calendar year.  If the

total amount of waste determined to have been beneficially used

without waste under this subsection exceeds the amount of water

available for permitting, the authority shall adjust the amount of

water authorized for withdrawal under the permit proportionately

to meet the amount available for permitting.  An existing

irrigation user shall receive a permit for not less than two

acre-feet a year for each acre of land the user actually irrigated

in any one calendar year during the historical period.  An existing

user who has operated a well for three or more years during the

historical period shall receive a permit for at least the average

amount of water withdrawn annually during the historical period.

	(f) The board by rule shall consider the equitable treatment

of a person whose historic use has been affected by a requirement

of or participation in a federal program.

	(g) The authority shall issue an initial regular permit

without a term, and an initial regular permit remains in effect

until the permit is abandoned, canceled, or retired.

	(h) The board shall notify each permit holder that the

permit is subject to limitations as provided by this article.

SECTION 1.17. INTERIM AUTHORIZATION.

	(a) A person who, on the effective date of this article,

owns a producing well that withdraws water from the aquifer may

continue to withdraw and beneficially use water without waste

until final action on permits by the authority, if:

		(1) the well is in compliance with all statutes and

rules relating to well construction, approval, location, spacings

and operation; and

		(2) by March 1, 1994, the person files a declaration

of historical use on a form as required by the authority.

	(b) Use under interim authorization may not exceed on an

annual basis the historical, maximum, beneficial use of water

without waste during any one calendar year as evidenced by the

person's declaration of historical use calculated in accordance

with Section 1.16(e) of this article, unless that amount is

otherwise determined by the authority.

	(c) Use under this section is subject to the authority's

comprehensive management plan and rules adopted by the authority.

(d) Interim authorization for a well under this section ends

on:

		(1) entry of a final and appealable order by the

authority acting on the application for the well; or

		(2) March 1, 1994, if the well owner has not filed a

declaration of historical use.

SECTION-1.18.  ADDITIONAL REGULAR PERMITS.

	(a) To the extent water Is available for permitting after

the issuance of permits to existing users, the authority may issue

additional regular permits, subject to limits on the total amount

of permitted withdrawals determined under Section 1.14 of this article.

	b) The authority may not consider or take action on an

application relating to a proposed or existing well of which there

is no evidence of actual beneficial use before June 1, 1993, until

a final determination has been made on all initial regular permit

applications submitted on or before the initial application date of

March 1, 1994.

SECTION 1.19. TERM PERMITS.

	(a) The authority may issue interruptible term permits for

withdrawal for any period the authority considers feasible,

but may not issue a term permit for a period of more than 10 years.

	(b) A holder of a term permit may not withdraw water from

the San Antonio pool of the aquifer unless the level of the aquifer

is higher than 665 feet above sea level, as measured at Well J-17.

	(c) A holder of a term permit may not withdraw water from

the Uvalde pool of the aquifer unless the level of the aquifer is

higher than 865 feet above sea level, as measured at Well J-27.

SECTION 1.20. EMERGENCY PERMITS.

	(a) Emergency permits may be issued only to prevent the

loss of life or to prevent severe, imminent threats to the public

health or safety.

	(b) The term of an emergency permit may not exceed 30 days

unless renewed.

	(c) The board may renew an emergency permit.

	(d) The holder of an emergency permit may withdraw water

from the aquifer without regard to its effect on other permit

holders.

SECTION 1.21. PERMIT RETIREMENT.

	(a) The authority shall prepare and implement a plan for

reducing, by January 1, 2008, the maximum annual volume of water

authorized to be withdrawn from the aquifer under regular permits

to 400,000 acre-feet a year or the adjusted amount determined under

Subsection (d) of Section 1.14 of this article.

	(b) The plan must be enforceable and must include water

conservation and reuse measures, measures to retire water rights,

and other water management measures designed to achieve the

reduction levels or appropriate management of the resource.

	(c) If, on or after January 1, 2008, the overall volume of

water authorized to be withdrawn from the aquifer under regular

permits is greater than 400,000 acre-feet a year or greater than

the adjusted amount determined under Subsection (d) of Section 1.14

of this article, the maximum authorized withdrawal of each regular

permit shall be immediately reduced by an equal percentage as is

necessary to reduce overall maximum demand to 400,000 acre-feet a

year or the adjusted amount, as appropriate.  The amount reduced

may be restored, in whole or in part as other appropriate measures

are implemented that maintain overall demand at or below the

appropriate amount.

SECTION 1.22 ACQUISITION OF RIGHTS.

(a) The authority may acquire permitted rights to use water from the

aquifer for the purposes of:

		(1) holding those rights in trust for safe or transfer

of the water or the rights to persons within the authority's

jurisdiction who may use water from the aquifer,

		(2) holding those rights in trust as a means of

managing overall demand on the aquifer,

		(3) holding those rights for resale or retirement as a

means of complying with pumping reduction requirements under this

article; or

		(4) retiring those rights, including those rights

already permitted.

	(b) The authority may acquire and hold permits or rights to

appropriate surface water or groundwater from sources inside or

outside of the authority's boundaries.

	(c) Notwithstanding any other provisions of law, the

authority's acquisition of permitted rights to use water from the

aquifer is eligible for financial assistance from:

		(1) the water supply account of the Texas Water

Development Fund under Subchapter D. Chapter 17, Water Code;

		(2) the water loan assistance fund under Subchapter C,

Chapter 15, Water Code; and

		(3) the revenue bond program under Subchapter 1,

Chapter 17, Water Code.

SECTION 1.23. CONSERVATION AND REUSE PLANS.

	(a) The authority may require holders of regular permits and

holders of term permits to submit water conservation plans and, if

appropriate, reuse plans for review and approval by the authority.

The board by rule shall require a plan to be implemented after a

reasonable time after a plan's approval.

	(b) The board shall assist users in developing conservation

or reuse plans.

	(c) The authority biennially shall prepare and update

enforceable and effective conservation and reuse plans as required

by this article.  Not later than January 1 of each odd-numbered

year the authority shall submit the plan to the legislature.

SECTION 1.24. LOANS AND GRANTS.

	(a) Notwithstanding any other provision of law, the authority is

eligible as a lender district to receive loans from the Texas

Water Development Board under the agricultural water conservation

bond program under Subchapter J, Chapter 17, Water Code.

	(b) The authority may apply for, request, solicit, contract

for, receive, and accept gifts, grants, and other assistance from

any source for the purposes of this article.

	(c) The authority may issue grants or make loans to finance

the purchase or installation of equipment or facilities.  If the

authority issues a grant for a water conservation, reuse, or water

management project, the authority may require the beneficiary to

transfer to the authority permitted rights to aquifer water equal

to a portion of the water conserved or made available by the

project.

SECTION 1.25. COMPREHENSIVE MANAGEMENT PLAN.

	(a) Consistent with Section 1.14 of this article, the authority

shall develop, by September 1, 1995, and implement a comprehensive

water management plan that includes conservation, future supply,

and demand management plans.  The authority may not delegate the

development of the plan under Section 1.42 of this article.

	(b) The authority, in conjunction with the South Central

Texas Water Advisory Committee, the Texas Water Development Board,

and underground water conservation districts within the authority's

boundaries, shall develop a 20-year plan for providing alternative

supplies of water to the region, with five-year goals and

objectives, to be implemented by the authority and reviewed

annually by the appropriate state agencies and the Edwards Aquifer

Legislative Oversight Committee.  The authority, advisory

committee, Texas Water Development Board, and districts, in

developing the plan, shall:

		(1) thoroughly investigate all alternative

technologies;

		(2) investigate mechanisms for providing financial

assistance for alternative supplies through the Texas Water

Development Board; and

		(3) perform a cost-benefit analysis and an

environmental analysis.

SECTION 1.26. CRITICAL PERIOD MANAGEMENT PLAN.

The authority shall prepare and coordinate implementation of a plan for

critical period management on or before September 1, 1995.  The

mechanisms must:

	(1) distinguish between discretionary use and

nondiscretionary use;

	(2) require reductions of all discretionary use to the

maximum extent feasible;

	(3) require utility pricing, to the maximum extent

feasible, to limit discretionary use by the customers of water

utilities; and

	(4) require reduction of nondiscretionary use by

permitted or contractual users, to the extent further reductions

are necessary, in the reverse order of the following water use

preferences:

		(A) municipal, domestic, and livestock;

		(B) industrial and crop irrigation;

		(C) residential landscape irrigation;

		(D) recreational and pleasure; and

		(E) other uses that are authorized by law.

SECTION 1.27. RESEARCH.

	(a) The authority shall complete

research an the technological feasibility of springflow enhancement

and yield enhancement that, immediately before September 1, 1993,

is being conducted by the Edwarwds Underground Water District.

	(b) The authority may conduct research to:

		(1) augment the springflow, enhance the recharge, and

enhance the yield of the aquifer,

		(2) monitor and protect water quality,

		(3) manage water resources, including water

conservation, water use and reuse, and drought management measures;

and

		(4) develop alternative supplies of water for users.

	(c) The authority may schedule demonstration projects for

purposes of Subsection (b)(1) of this section.

	(d) The authority may contract with other persons to conduct

research.

SECTION 1.28 TAX; BONDS.

	(a) The authority may not levy a property tax.

	(b) The authority may issue revenue bonds to finance the

purchase of land or the purchase, construction, or installation of

facilities or equipment.  The authority may not allow for any

person to construct, acquire, or own facilities for transporting

groundwater out of Uvalde County or Medina County.

	(c) Bonds issued by the authority are subject to review and

approval of the attorney general and the commission.  If the

attorney general finds that the bonds have been authorized in

accordance with the law, the attorney general shall approve them,

and the comptroller of public accounts shall register the bonds.

Following approval and registration, the bonds are incontestable

and are binding obligations according to their terms.

	(d) The authority board may organize proceeds of the bonds

into funds and accounts and may invest the proceeds as the

authority board determines is appropriate.

SECTION 1.29. FEES.

	(a) The cost of reducing withdrawals or permit retirements

must be borne:

	(1) solely by users of the aquifer for reducing

withdrawals from the level on the effective date of this article to

450,000 acre-foot a year, or the adjusted amount determined under

Subsection (d) of Section 1.14 of this article for the period

ending December 31, 2007; and

	(2) equally by aquifer users and downstream water

rights holders for permit retirements from 450,000 acre-feet a

year, or the adjusted amount determined under Subsection (d) of

Section 1.14 of this article for the period ending December 31,

2007, to 400,000 acre-feet a year, or the adjusted amount

determined under Subsection (d) of Section 1.14 of this article,

for the period beginning January 1, 2008.

	(b) The authority shall assess equitable aquifer management

fees based on aquifer use under the water management plan to

finance its administrative expenses and programs authorized under

this article.  Each water district governed by Chapter 52, Water

Code, that is within the authority's boundaries may contract with

the authority to pay expenses of the authority through taxes in

lieu of user fees to be paid by water users in the district.  The

contract must provide that the district will pay an amount equal to

the amount that the water users in the district would have paid

through user fees.  The authority may not collect a total amount of

fees and taxes that is more than is reasonably necessary for the

administration of the authority.

	(c) The authority shall also assess an equitable special fee

based an permitted aquifer water rights to be used only to finance

the retirement of rights necessary to meet the goals provided by

Section 1.21 of this article.  The authority shall set the

equitable special fees on permitted aquifer users at a level

sufficient to match the funds raised from the assessment of

equitable special fees on downstream water rights holders.

	(d) The commission shall assess equitable special fees on

all downstream water rights holders in the Guadalupe River Basin to

be used solely to finance the retirement of aquifer rights

necessary to meet the goals provided by Section 1.21 of this

article.  Fees assessed under this Subsection may not

one-half of the cost of permit retirements from 450,000 acre-feet a

year, or the adjusted amount determined under Subsection (d) of

Section 1.14 of this article, for the period ending December 31,

2007, to 400,000 acre-feet a year for the period beginning January

1, 2008.  The authority shall report to the commission the

estimated costs of the retirements.  The amount of fees assessed

under this subsection shall be determined in accordance with rules

adopted by the commission for fees under the South Texas

watermaster program with adjustments as necessary to ensure that

fees are equitable between users, including priority and

nonpriority hydroelectric users.  A downstream water rights holder

shall pay fees assessed under this Subsection to the authority.  A

fee may not be assessed by the commission under this subsection on

contractual deliveries of water stored in Canyon Lake that may be

diverted downstream of the San Marcos Springs or Canyon Dam.  A

person or entity making a contractual sale of water stored upstream

of Canyon Dam may not establish a systemwide rate that requires

purchased of upstream-stored water to pay the special fee assessed

under this subsection.

	(e) In developing an equitable fee structure under this

section, the authority may establish different fee rates on a per

acre-foot basis for different types of use.  The fees must be

equitable between types of uses.  The fee rate for agricultural use

shall be based an the volume of water withdrawn and may not be more

than 20 percent of the fee rate for municipal use.  The authority

shall assess the fees on the amount of water a permit holder is

authorized to withdraw under the permit.

	(f) The authority shall impose a permit application fee not

to exceed $25.

	(g) The authority may impose a registration application fee

not to exceed $10.

	(h) Special fees collected under Subsection (c) or (d) of

this section may not be used to finance a surface water supply

reservoir project.

	(i) The authority shall provide money as necessary, but not

to exceed five percent of the money collected under Subsection (d)

of this section, to finance the South Central Texas Water Council's

administrative expenses and programs authorized under this article.

SECTION 1.30. RIVER DIVERSIONS.

	(a) The commission may issue to an applicant a special permit

to divert water from the Guadalupe River from a diversion point on

the river downstream of the point where the river emerges as a spring.

	(b) A permit issued to a person under this section must

condition the diversion of water from the Guadalupe River on a

limitation of withdrawals under the person's permit to withdraw

water from the aquifer.

	(c) A permit issued under this section must provide that the

permit holder may divert water from the Guadalupe River only if:

		(1) the diversion is made instead of a withdrawal from

the aquifer to enhance the yield of the aquifer; and

		(2) the diversion does not impair senior water rights

or vested riparian rights.

	(d) A permit issued in accordance with this section is

subordinate to permitted water rights for which applications were

submitted before May 31, 1993, and vested riparian rights.

	(e) Sections 11.028 and 11.033, Water Code, do not apply to

a permit issued under this section.

SECTION 1.31. MEASURING DEVICES.

	(a) The owner of a nonexempt well that withdraws water from the

aquifer shall install and maintain a measuring device approved

y the authority designed to indicate the flow rate and cumulative

amount of water withdrawn by that well.  This requirement may be

waived by the authority on written request by a well owner to

use an alternative method of determining the amount of water withdrawn.

	(b) The authority is responsible for the costs of

purchasing, installing, and maintaining measuring devices, if

required, for an irrigation well in existence an September 1, 1993.

SECTION 1.32. REPORTS.

Not later than March 1 of each year,

and on a form prescribed by the authority, each holder of a permit

shall file with the authority a written report of water use for the

preceding calendar year.

SECTION 1.33. WELL METERING EXEMPTION.

	(a) A well that produces 25,000 gallons of water a day or

less for domestic or livestock use is exempt from metering requirements.

	(b) Exempt wells must register with the authority or with an

underground water conservation district in which the well is

located.

	(c) A well within or serving a subdivision requiring

platting does not qualify for an exempt use.

SECTION 1.34. TRANSFER OF RIGHTS.

	(a) Water withdrawn from the aquifer must be used within the

boundaries of the authority.

	(b) The authority by rule may establish a procedure by which

a person who installs water conservation equipment may sell the

water conserved.

	(c) A permit holder may lease permitted water rights, but a

holder of a permit for irrigation use may not lease more than 50

percent of the irrigation rights initially permitted.  The user's

remaining irrigation water rights must be used in accordance with

the original permit and must pass with transfer of the irrigated

land.

SECTION 1.35. PROHIBITIONS.

	(a) A person may not withdraw water from the aquifer except

as authorized by a permit issued by the authority or by this article.

	(b) A person holding a permit issued by the authority may

not violate the terms or conditions of the permit.

	(c) A person may not waste water withdrawn from the aquifer.

	(d) A person may not pollute or contribute to the pollution

of the aquifer.

	(e) A person may not violate this article or a rule of the

authority adopted under this article.

SECTION 1.36. ENFORCEMENT.

	(a) The authority may enter orders to enforce the terms

and conditions of permits, orders, or rules issued or adopted

under this article.

	(b) The authority by rule shall provide for the suspension

of a permit of any class for a failure to pay a required fee or a

violation of a permit condition or order of the authority or a rule

adopted by the authority.

SECTION 1.37. ADMINISTRATIVE PENALTY.

	(a) The authority may assess an administrative penalty against

a person who violates this article or a rule adopted or order

issued under this article in an amount of not less than $100

or more than $1,000 for each violation and for each day of a

continuing violation.

	(b) In determining the amount of the penalty, the authority

shall consider.

		(1) the history of previous violations;

		(2) the amount necessary to deter future violations;

		(3) efforts to correct the violation;

		(4) enforcement costs relating to the violation; and

		(5) any other matters that justice may require.

	(c) If after an examination of the facts the authority

concludes that the person did commit a violation, the authority may

issue a preliminary report stating the facts on which it based its

conclusion, recommending that an administrative penalty under this

section be imposed, and recommending the amount of the proposed

penalty.

	(d) The authority shall give written notice of the report to

the person charged with committing the violation.  The notice must

include a brief summary of the facts, a statement of the amount of

the recommended penalty, and a statement of the person's right to

an informal review of the occurrence of the violation, the amount

of the penalty, or both.

	(e) Not later than the 10th day after the date on which the

person charged with committing the violation receives the notice,

the person may either give the authority written consent to the

report, including the recommended penalty, or make a written

request for an informal review by the authority.

	(f) If the person charged with committing the violation

consents to the penalty recommended by the authority or fails

timely to request an informal review, the authority shall assess

the penalty.  The authority shall give the person written notice of

its action. The person shall pay the penalty not later than the

30th day after the date on which the person receives the notice.

	(g) If the person charged with committing a violation

requests an informal review as provided by Subsection (e) of this

section, the authority shall conduct the review.  The authority

shall give the person written notice of the results of the review.

	(h) Not later than the 10th day after the date on which the

person charged with committing the violation receives the notice

prescribed by Subsection (g) of this section, the person may make

to the authority a written request for a hearing.

	(i) If, after informal review, a person who has been ordered

to pay a penalty fails to request a formal hearing in a timely

manner, the authority shall assess the penalty.  The authority

shall give the person written notice of its action.  The person

shall pay the penalty not later than the 30th day after the date on

which the person receives the notice.

	(j) Within 30 days after the date the authority's order is

final as provided by Section 16(c), Administrative Procedure and

Texas Register Act (Article 6252-13a, Vernon's Texas Civil

Statutes), the person shall:

		(1) pay the amount of the penalty;

		(2) pay the amount of the penalty and file a petition

for judicial review contesting the occurrence of the violation, the

amount of the penalty, or both the occurrence of the violation and

the amount of the penalty; or

		(3) without paying the amount of the penalty, file a

petition for judicial review contesting the occurrence of the

violation, the amount of the penalty, or both the occurrence of the

violation and the amount of the penalty.

	(k) Within the 30-day period, a person who acts under

Subsection (j)(3) of this section may:

	(1) stay enforcement of the penalty by;

		(A) paying the amount of the penalty to the

court for placement in an escrow account; or

		(B) giving to the court a supersedeas bond

approved by the court for the amount of the penalty and that is

effective until all judicial review of the authority's order is

final; or

	(2) request the court to stay enforcement of the

penalty by:

		(A) filing with the court a sworn affidavit of

the person stating that the person is financially unable to pay the

amount of the penalty and is financially unable to give the

supersedeas bond; and

		(B) giving a copy of the affidavit to the

authority by certified mail.

	(l) If the authority receives a copy of an affidavit under

Subsection (k)(2) of this section, it may file, with the court

within five days after the date the copy is received, a contest to

the affidavit.  The court shall hold a hearing on the facts alleged

in the affidavit as soon as practicable and shall stay the

enforcement of the penalty on finding that the alleged facts are

true.  The person who files an affidavit has the burden of proving

that the person is financially unable to pay the amount of the

penalty and to give a supersedeas bond.

	(m) If the person does not pay the amount of the penalty and

the enforcement of the penalty is not stayed, the authority may

refer the matter to the attorney general for collection of the

amount of the penalty.

	(n) Judicial review of the order of the authority:

		(1) Is instituted by filing a petition as provided by

 Section 19, Administrative Procedure and Texas Register Act

(Article 6252-13a, Vernon's Texas Civil Statutes); and

		(2) Is under the substantial evidence rule.

	(o) If the court sustains the occurrence of the violation,

the court may uphold or reduce the amount of the penalty and order

the person to pay the fine or reduced amount of the penalty.  If

the court does not sustain the occurrence of the violation, the

court shall order that no penalty is owed.

	(p) When the judgment of the court becomes final, the court

shall proceed under this subsection.  If the person paid the amount

of the penalty and if that amount Ii reduced or is not uphold by

the court, the court shall order that the appropriate amount plus

accrued interest be remitted to the person.  The rate of the

interest is the rate charged on loans to depository institutions by

the New York Federal Reserve Bank, and the interest shall be paid

for the period beginning on the date the penalty was paid and

ending on the date the penalty is remitted.  If the person gave a

supersedeas bond and if the amount of the penalty is not upheld by

the court, the court shall order the release of the bond.  If the

person gave a supersedeas bond and if the amount of the penalty is

reduced, the court shall order the release of the bond after the

person pays the amount.

	(q) A penalty collected under this section shall be remitted

to the authority.

	(r) All proceedings under this section are subject to the

Administrative Procedure and Texas Register Act (Article 6252-13a,

Vernon's Texas Civil Statutes).

SECTION 1.38. INJUNCTION BY AUTHORITY.  The authority may

file a civil suit in a state district court for an injunction to

enforce this article.  The authority may recover reasonable

attorney's fees in a suit under this section.

SECTION 1.39. SUIT FOR MANDAMUS.  The commission may file a

civil suit for an order of mandamus against the authority to compel

the authority to perform its duties under this article or to compel

the authority to enforce this article against a violator.  The

commission may recover attorney fees from the authority in a suit

under this section.

SECTION 1.40. CIVIL PENALTY.

	(a) The commission or authority may file a civil action

in state district court for a civil penalty for a violation of

this article or a rule adopted or permit or order issued under

this article.

	(b) The commission or authority may recover a civil penalty

of not less than $100 or more than $10,000 for each violation and

for each day of violation and attorney fees.

	(c) A civil penalty or attorney fees collected by the

authority under this section shall be paid to the authority.

	(d) A civil penalty or attorney fees collected by the

commission under this section shall be deposited to the credit of

the general revenue fund.

SECTION 1.41. REPEALER; TRANSFERS; RULES.

	(a) Chapter 99, Acts of the 56th Legislature, Regular Session,

1959 (Article 8280-219, Vernon's Texas Civil Statutes),

is repealed, and the Edwards Underground Water District is abolished.

	(b) All files and records of the Edwards Underground Water

District pertaining to control, management, and operation of the

district are transferred from the Edwards Underground Water

District to the authority on the effective date of this article.

	(c) All real and personal property, leases, rights,

contracts, staff, and obligations of the Edwards Underground Water

District are transferred to the authority on the effective date of

this article.

	(d) On September 1, 1993, all unobligated and unexpended

funds of the Edwards Underground Water District shall be

transferred to the authority.

	(e) A rule adopted by the Edwards Underground Water District

before the effective date of this article that relates to

management or control of the aquifer is, on the effective date of

this article, a rule of the authority and remains in effect until

amended or repealed by the authority.

	(f) The authority shall be automatically substituted for the

Edwards Underground Water District in any judicial or

administrative proceeding to which, on the effective date of this

article, the Edwards Underground Water District is a party.

SECTION 1.42. EFFECT ON OTHER DISTRICTS.

	(a) An underground water conservation district other than

the authority may manage and control water that Is a part of the

aquifer after the effective date of this article only as provided

in this section.  This article does not affect a water reclamation or

conservation district that manages and controls only water from a

resource other than the aquifer.

	(b) An underground water conservation district other than

the authority may manage and control water that is a part of the

aquifer to the extent that those management activities do not

conflict with and are not duplicative of this article or the rules

and orders of the authority.

	(c) Except as otherwise provided by this article, the board

may delegate the powers and duties granted to it under this

article.  The board shall delegate all or part of its powers or

duties to an underground water conservation district on the

district's request if the district demonstrates to the satisfaction

of the board that:

		(1) the district has statutory powers necessary for

full enforcement of the rules and orders to be delegated;

		(2) the district has implemented all rules and

policies necessary to fully implement the programs to be delegated;

and;

		(3) the district has implemented a system designed to

provide the authority with adequate information with which to

monitor the adequacy of the district's performance in enforcing

board rules and orders.

	(d) In making the determination under Subsection (c) of this

section, the board may consider the districts past performance and

experience in enforcing powers and duties delegated to it by the

board.  The board may deny a request for delegation of powers or

duties by a district if the district has previously had a

delegation terminated under Subsection (e) of this section.

	(e) If the authority determines that a district has failed

adequately to enforce or implement any rules or orders delegated

under this section, the authority immediately shall provide to the

district notice that sets forth the reasons for its determination

and the actions that the district must take to retain the delegated

authority.  Not later than the 10th day after the date the notice

is given, the district must demonstrate its commitment and ability

to take the actions set forth in the notice.  If, at the end of the

10-day period the authority does not find that the district will

adequately enforce its rules and orders, the authority immediately

shall resume full responsibility for implementation and enforcement

of those rules and orders.  The authority shall provide to the

district notice that the delegation of authority to it has been

terminated.  After the termination notice is given, the authority

of the district to manage or control water in the aquifer is

limited to the authority granted by Subsection (b) of this section.

SECTION 1.43. CREATION OF UNDERGROUND WATER CONSERVATION DISTRICT.

An underground water conservation district may be

created in any county affected by this article as provided by

Subchapter B, Chapter 52, Water Code.

SECTION 1.44. COOPERATIVE CONTRACTS FOR ARTIFICIAL RECHARGE.

	(a) The authority may contract with any political subdivision

of the state under Chapter 791, Government Code, to provide for

artificial recharge of the aquifer, through injection wells or with

surface water subject to the control of the political subdivision,

for the subsequent retrieval of the water by the political

subdivision or its authorized assignees for beneficial use within

the authority.

	(b) The authority may not unreasonably deny a request to

enter into a cooperative contract under this section if the

political subdivision agrees to:

		(1) file with the authority records of the injection

or artificial recharge of the aquifer; and

		(2) provide for protection of the quality of the

aquifer or water and of the rights of aquifer users in designating the

location of injection wells or recharge dams, the methods of

injection or recharge, and the location and type of retrieval

wells.

	(c) The political subdivision causing artificial recharge of

the aquifer is entitled to withdraw during any 12-month period the

measured amount of water actually injected or artificially

recharged during the preceding 12-month period, as demonstrated and

established by expert testimony, less an amount determined by the

authority to:

		(1) account for that part of the artificially

recharged water discharged through springs; and

		(2) compensate the authority in lieu of users' fees.

	(d) The amounts of water withdrawn under this section are

not subject to the maximum total permitted withdrawals provided by

Section 1.14 of this article.

SECTION 1.45. RECHARGE DAMS.

	(a) The authority may build or operate recharge dams in

the recharge area of the aquifer if the recharge is made to increase

the yield of the aquifer and the recharge project does not impair

senior water rights or vested riparian rights.

	(b) The commission shall determine the historic yield of the

floodwater to the Nueces River basin.  The historic yield is equal

to the lesser of:

		(1) the average annual yield for the period from 1950

to 1987; or

		(2) the annual yield for 1987.

	(c) Only the amount of floodwater in excess of the historic

yield as determined by the commission may be impounded by a

recharge dam built or operated under this section.

SECTION 2.01. DEFINITION.

In this article, "district" means

the Uvalde County Underground Water Conservation District.

SECTION 2.02. VALIDATION.

The creation of the district and all resolutions, orders,

and other acts or attempted acts of the board of directors

of the district are validated in all respects.

The creation of the district and all resolutions, orders, and other

acts or attempted acts of the board of directors of the district

are valid as though they originally had been legally authorized or

accomplished.

SECTION 2.03. BOUNDARIES.

Pursuant to the petition to the Commissioners Court of Uvalde County,

Texas, requesting the creation of the district, the district

includes the territory contained within the boundaries of Uvalde County.

SECTION 2.04. FINDING OF BENEFIT.

All the land and other property included within the boundaries of the

district will be benefited by the validation of the district.

SECTION 2.05. POWERS.

	(a) The district has all of the

rights, powers, privileges, authority, functions, and duties

provided by the general law of the state, including Chapters 50 and

52, Water Code, applicable to underground water conservation

districts created under Article XVI, Section 59, of the Texas

Constitution.  This article prevails over any provision of general

law that is in conflict or inconsistent with this article.

	(b) The district may develop and implement a drought

response plan, with reasonable rules, using water levels as

observed in the Uvalde Index Well YP-69-50-302.

	(c) The rights, powers, privileges, authority, functions,

and duties of the district are subject to the continuing right of

supervision of the state to be exercised by and through the Texas

Water Commission.

SECTION 2.06. LEVY OF TAXES.

The levy and collection of taxes by the district is governed by

Subchapter H, Chapter 52, Water Code, except that the district

may not levy a maintenance and operating tax at a rate that

exceeds two cents per $100 assessed valuation unless an election

held in the district authorizes a higher rate.

SECTION 2.07. PENDING LITIGATION.

This article does not apply to or affect litigation pending an

the effective date of this article in any court of competent

jurisdiction in this state to which the district is a party.

SECTION 3.01. LEGISLATIVE OVERSIGHT.

	(a) The Edwards Aquifer Legislative Oversight Committee

is composed of:

		(1) three members of the senate appointed by the

lieutenant governor, and

		(2) three members of the house of representatives

appointed by the speaker of the house of representatives.

	(b) The committee shall examine and report to the

legislature on the effectiveness of the state and local

governmental entities in meeting the purposes of the Edwards

Aquifer Authority.

	(c) The board shall continually oversee and review:

		(1) the activities of the Edwards Aquifer Authority

and the implementation of that authority's enabling legislation;

		(2) the activities of the South Central Texas Water

Advisory Committee;

		(3) compliance with federal law relating to threatened

or endangered species related to management of underground or

surface water in the Edwards Aquifer region;

		(4) water pollution control activities in the Edwards

Aquifer region; and

		(5) the activities of soil and water conservation

districts and river authorities in the Edwards Aquifer district

that affect the management of the aquifer.

SECTION 3.02. NOTICE OF AVAILABLE WATER.

The Texas Natural Resource Conservation Commission shall notify

the Edwards Aquifer Authority of any water available for

appropriation in the Guadalupe-Blanco River Basin as the

commission discovers the available water.

SECTION 3.03. SUNSET COMMISSION REVIEW OF GUADALUPE-BLANCO

RIVER AUTHORITY.

	(a) The board of directors of the

Guadalupe-Blanco River Authority is subject to review under Chapter

325, Government Code (Texas Sunset Act), but may not be abolished

under that Act.  The review shall be conducted as if the board of

directors were scheduled to be abolished September 1, 1995.

	(b) Unless after the review the legislature continues the

members of the board of directors in office, the terms of the board

members expire September 1, 1995.

	(c) If the terms of the board of directors expire under

Subsection (b) of this section, a new board of directors shall be

appointed and confirmed as provided by Chapter 75, Acts of the 43rd

Legislature, 1st Called Session, 1933, with three members appointed

to terms expiring February 1, 1997, three to terms expiring

February 1, 1999, and three to terms expiring February 1, 2001.  A

member whose term expires under Subsection (b) is not eligible for

reappointment under this subsection.

SECTION 4.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.

	(a) The proper and legal notice of the intention to introduce

this Act, setting forth the general substance of this Act, has been

published as provided by law, and the notice and a copy of this Act

have been furnished to all persons, agencies, officials, or

entities to which they are required to be furnished by the

constitution and other laws of this state, including the governor,

who has submitted the notice and Act to the Texas Water Commission.

	(b) The Texas Water Commission has filed its recommendations

relating to this Act with the governor, lieutenant governor, and

speaker of the house of representatives within the required time.

	(c) All requirements of the constitution and laws of this

state and the rules and procedures of the legislature with respect

to the notice, introduction, and passage of this Act are fulfilled

and accomplished.

SECTION 4.02. EFFECTIVE DATES.

This Act takes effect September 1, 1993, except Section 1.35 of

Article 1 takes effect March 1, 1994.

SECTION 4.03. EMERGENCY.

The importance of this legislation and the crowded condition of

the calendars in both houses create an emergency and an imperative public

necessity that the constitutional rule requiring bills to be read on

three several days in each house be suspended, and this rule is

hereby suspended.