S.B. No. 3 
 
 
 
 
 
AN ACT 
 
relating to the development, management, and preservation of the 
water resources of the state; providing penalties. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 
ARTICLE 1.  ENVIRONMENTAL FLOWS 
SECTION 1.01.  The heading to Section 5.506, Water Code, is 
amended to read as follows: 
Sec. 5.506.  EMERGENCY SUSPENSION OF PERMIT CONDITION 
RELATING TO_, AND EMERGENCY AUTHORITY TO MAKE AVAILABLE WATER SET _ 
_ASIDE FOR,_ BENEFICIAL INFLOWS TO AFFECTED BAYS AND ESTUARIES AND 
INSTREAM USES. 
SECTION 1.02.  Section 5.506, Water Code, is amended by 
adding Subsection (a-1) and amending Subsections (b) and (c) to 
read as follows: 
_(a-1)__ __ __State water that is set aside by the commission 
to _ 
_meet the needs for freshwater inflows to affected bays and _ 
_estuaries and instream uses under Section 11.1471(a)(2) may be made _ 
_available temporarily for other essential beneficial uses if the _ 
_commission finds that an emergency exists that cannot practically _ 
_be resolved in another way._ 
(b)  The commission must give written notice of the proposed 
_action_ [suspension] to the Parks and Wildlife Department before the 
commission suspends a permit condition under _Subsection (a) or _ 
_makes water available temporarily under Subsection (a-1)_ [this 
section]. The commission shall give the Parks and Wildlife 
Department an opportunity to submit comments on the proposed _action_ 
[suspension] for a period of 72 hours from receipt of the notice and 
must consider those comments before issuing an order _implementing _ 
_the proposed action_ [imposing the suspension]. 
(c)  The commission may suspend a permit condition under 
_Subsection (a) or make water available temporarily under Subsection _ 
_(a-1)_ [this section] without notice except as required by 
Subsection (b). 
SECTION 1.03.  Subsection (j), Section 5.701, Water Code, is 
amended to read as follows: 
(j)  The fee for other uses of water not specifically named 
in this section is $1 per acre-foot, except that no political 
subdivision may be required to pay fees to use water for recharge of 
underground freshwater-bearing sands and aquifers or for abatement 
of natural pollution. _A fee is not required for a water right that _ 
_is_ [This fee is waived for applications for instream-use water 
rights] deposited into the Texas Water Trust. 
SECTION 1.04.  Section 11.002, Water Code, is amended by 
adding Subdivisions (15), (16), (17), (18), and (19) to read as 
follows: 
_(15)__ __ __"Environmental flow analysis" means the _ 
_application of a scientifically derived process for predicting the _ 
_response of an ecosystem to changes in instream flows or freshwater _ 
_inflows._ 
_(16)__ __ __"Environmental flow regime" means a 
schedule of _ 
_flow quantities that reflects seasonal and yearly fluctuations that _ 
_typically would vary geographically, by specific location in a _ 
_watershed, and that are shown to be adequate to support a sound _ 
_ecological environment and to maintain the productivity, extent, _ 
_and persistence of key aquatic habitats in and along the affected _ 
_water bodies._ 
_(17)__ __ __"Environmental flow standards" means those _ 
_requirements adopted by the commission under Section 11.1471._ 
_(18)__ __ __"Advisory group" means the environmental 
flows _ 
_advisory group._ 
_(19)__ __ __"Science advisory committee" means the Texas _ 
_environmental flows science advisory committee._ 
SECTION 1.05.  Subsection (a), Section 11.023, Water Code, 
is amended to read as follows: 
(a)  _To the extent that state water has not been set aside by _ 
_the commission under Section 11.1471(a)(2) to meet downstream _ 
_instream flow needs or freshwater inflow needs, state_ [State] water 
may be appropriated, stored, or diverted for: 
(1)  domestic and municipal uses, including water for 
sustaining human life and the life of domestic animals; 
(2)  agricultural uses and industrial uses, meaning 
processes designed to convert materials of a lower order of value 
into forms having greater usability and commercial value, including 
the development of power by means other than hydroelectric; 
(3)  mining and recovery of minerals; 
(4)  hydroelectric power; 
(5)  navigation; 
(6)  recreation and pleasure; 
(7)  public parks; and 
(8)  game preserves. 
SECTION 1.06.  Section 11.0235, Water Code, is amended by 
amending Subsections (b), (c), and (e) and adding Subsections (d-1) 
through (d-6) and (f) to read as follows: 
(b)  Maintaining the biological soundness of the state's 
rivers, lakes, bays, and estuaries is of great importance to the 
public's economic health and general well-being.  _The legislature _ 
_encourages voluntary water and land stewardship to benefit the _ 
_water in the state, as defined by Section 26.001._ 
(c)  The legislature has expressly required the commission 
while balancing all other _public_ interests to consider and_, to the _ 
_extent practicable,_ provide for the freshwater inflows _and instream _ 
_flows_ necessary to maintain the viability of the state's _streams, _ 
_rivers, and_ bay and estuary systems in the commission's regular 
granting of permits for the use of state waters. _As an essential _ 
_part of the state's environmental flows policy, all permit _ 
_conditions relating to freshwater inflows to affected bays and _ 
_estuaries and instream flow needs must be subject to temporary _ 
_suspension if necessary for water to be applied to essential _ 
_beneficial uses during emergencies._ 
_(d-1)__ __ __The legislature has determined that existing 
water _ 
_rights that are amended to authorize use for environmental purposes _ 
_should be enforced in a manner consistent with the enforcement of _ 
_water rights for other purposes as provided by the laws of this _ 
_state governing the appropriation of state water._ 
_(d-2)__ __ __The legislature finds that to provide certainty 
in _ 
_water management and development and to provide adequate protection _ 
_of the state's streams, rivers, and bays and estuaries, the state _ 
_must have a process with specific timelines for prompt action to _ 
_address environmental flow issues in the state's major basin and _ 
_bay systems, especially those systems in which unappropriated water _ 
_is still available._ 
_(d-3)  The legislature finds that:_ 
_(1)__ __ __in those basins in which water is available 
for _ 
_appropriation, the commission should establish an environmental _ 
_set-aside below which water should not be available for _ 
_appropriation; and_ 
_(2)__ __ __in those basins in which the unappropriated 
water _ 
_that will be set aside for instream flow and freshwater inflow _ 
_protection is not sufficient to fully satisfy the environmental _ 
_flow standards established by the commission, a variety of market _ 
_approaches, both public and private, for filling the gap must be _ 
_explored and pursued._ 
_(d-4)__ __ __The legislature finds that while the state has _ 
_pioneered tools to address freshwater inflow needs for bays and _ 
_estuaries, there are limitations to those tools in light of both _ 
_scientific and public policy evolution. To fully address bay and _ 
_estuary environmental flow issues, the foundation of work _ 
_accomplished by the state should be improved. While the state's _ 
_instream flow studies program appears to encompass a comprehensive _ 
_and scientific approach for establishing a process to assess _ 
_instream flow needs for rivers and streams across the state, more _ 
_extensive review and examination of the details of the program, _ 
_which may not be fully developed until the program is under way, are _ 
_needed to ensure an effective tool for evaluating riverine _ 
_environmental flow conditions._ 
_(d-5)__ __ __The legislature finds that the management of 
water to _ 
_meet instream flow and freshwater inflow needs should be evaluated _ 
_on a regular basis and adapted to reflect both improvements in _ 
_science related to environmental flows and future changes in _ 
_projected human needs for water. In addition, the development of _ 
_management strategies for addressing environmental flow needs _ 
_should be an ongoing, adaptive process that considers and addresses _ 
_local issues._ 
_(d-6)__ __ __The legislature finds that recommendations for 
state _ 
_action to protect instream flows and freshwater inflows should be _ 
_developed through a consensus-based, regional approach involving _ 
_balanced representation of stakeholders and that such a process _ 
_should be encouraged throughout the state._ 
(e)  The fact that greater pressures and demands are being 
placed on the water resources of the state makes it of paramount 
importance to _ensure_ [reexamine the process for ensuring] that 
these important priorities are effectively addressed _by detailing _ 
_how environmental flow standards are to be developed using the _ 
_environmental studies that have been and are to be performed by the _ 
_state and others and specifying_ in clear delegations of authority 
_how those environmental flow standards will be integrated into the _ 
_regional water planning and water permitting process_ [to the 
commission]. 
_(f)__ __ __The legislature recognizes that effective _ 
_implementation of the approach provided by this chapter for _ 
_protecting instream flows and freshwater inflows will require more _ 
_effective water rights administration and enforcement systems than _ 
_are currently available in most areas of the state._ 
SECTION 1.07.  Subchapter B, Chapter 11, Water Code, is 
amended by adding Sections 11.0236, 11.02361, 11.02362, and 11.0237 
to read as follows: 
_Sec.__ __11.0236.__ __ __ENVIRONMENTAL FLOWS ADVISORY GROUP. 
__ __(a)__ __ __In _ 
_recognition of the importance that the ecological soundness of our _ 
_riverine, bay, and estuary systems and riparian lands has on the _ 
_economy, health, and well-being of the state there is created the _ 
_environmental flows advisory group._ 
_(b)__ __ __The advisory group is composed of nine members as _ 
_follows:_ 
_(1)  three members appointed by the governor;_ 
_(2)__ __ __three members of the senate appointed by the _ 
_lieutenant governor; and_ 
_(3)__ __ __three members of the house of representatives _ 
_appointed by the speaker of the house of representatives._ 
_(c)  Of the members appointed under Subsection (b)(1):_ 
_(1)  one member must be a member of the commission;_ 
_(2)  one member must be a member of the board; and_ 
_(3)__ __ __one member must be a member of the Parks and _ 
_Wildlife Commission._ 
_(d)__ __ __Each member of the advisory group serves at the 
will of _ 
_the person who appointed the member._ 
_(e)__ __ __The appointed senator with the most seniority and 
the _ 
_appointed house member with the most seniority serve together as _ 
_co-presiding officers of the advisory group._ 
_(f)__ __ __A member of the advisory group is not entitled to _ 
_receive compensation for service on the advisory group but is _ 
_entitled to reimbursement of the travel expenses incurred by the _ 
_member while conducting the business of the advisory group, as _ 
_provided by the General Appropriations Act._ 
_(g)__ __ __The advisory group may accept gifts and grants 
from any _ 
_source to be used to carry out a function of the advisory group._ 
_(h)__ __ __The commission shall provide staff support for the _ 
_advisory group._ 
_(i)__ __ __The advisory group shall conduct public hearings 
and _ 
_study public policy implications for balancing the demands on the _ 
_water resources of the state resulting from a growing population _ 
_with the requirements of the riverine, bay, and estuary systems _ 
_including granting permits for instream flows dedicated to _ 
_environmental needs or bay and estuary inflows, use of the Texas _ 
_Water Trust, and any other issues that the advisory group _ 
_determines have importance and relevance to the protection of _ 
_environmental flows. In evaluating the options for providing _ 
_adequate environmental flows, the advisory group shall take notice _ 
_of the strong public policy imperative that exists in this state _ 
_recognizing that environmental flows are important to the _ 
_biological health of our public and private lands, streams and _ 
_rivers, and bay and estuary systems and are high priorities in the _ 
_water management process. The advisory group shall specifically _ 
_address:_ 
_(1)__ __ __ways that the ecological soundness of those _ 
_systems will be ensured in the water rights administration and _ 
_enforcement and water__ __allocation processes; and_ 
_(2)__ __ __appropriate methods to encourage persons _ 
_voluntarily to convert reasonable amounts of existing water rights _ 
_to use for environmental flow protection temporarily or _ 
_permanently._ 
_(j)__ __ __The advisory group may adopt rules, procedures, and _ 
_policies as needed to administer this section, to implement its _ 
_responsibilities, and to exercise its authority under Sections _ 
_11.02361 and 11.02362._ 
_(k)__ __ __Chapter 2110, Government Code, does not apply to 
the _ 
_size, composition, or duration of the advisory group._ 
_(l)__ __ __Not later than December 1, 2008, and every two 
years _ 
_thereafter, the advisory group shall issue and promptly deliver to _ 
_the governor, lieutenant governor, and speaker of the house of _ 
_representatives copies of a report summarizing:_ 
_(1)  any hearings conducted by the advisory group;_ 
_(2)  any studies conducted by the advisory group;_ 
_(3)  any legislation proposed by the advisory group;_ 
_(4)__ __ __progress made in implementing Sections 
11.02361 _ 
_and 11.02362; and_ 
_(5)__ __ __any other findings and recommendations of the _ 
_advisory group._ 
_(m)__ __ __The advisory group is abolished on the date that 
the _ 
_commission has adopted environmental flow standards under Section _ 
_11.1471 for all of the river basin and bay systems in this state._ 
_Sec.__ __11.02361.__ __ __TEXAS ENVIRONMENTAL FLOWS SCIENCE 
ADVISORY _ 
_COMMITTEE. __ __(a)__ __ __The Texas environmental flows science 
advisory _ 
_committee consists of at least five but not more than nine members _ 
_appointed by the advisory group._ 
_(b)__ __ __The advisory group shall appoint to the science 
advisory _ 
_committee persons who will provide an objective perspective and _ 
_diverse technical expertise, including expertise in hydrology, _ 
_hydraulics, water resources, aquatic and terrestrial biology, _ 
_geomorphology, geology, water quality, computer modeling, and _ 
_other technical areas pertinent to the evaluation of environmental _ 
_flows._ 
_(c)__ __ __Members of the science advisory committee serve _ 
_five-year terms expiring March 1. A vacancy on the science advisory _ 
_committee is filled by appointment by the co-presiding officers of _ 
_the advisory group for the unexpired term._ 
_(d)__ __ __Chapter 2110, Government Code, does not apply to 
the _ 
_size, composition, or duration of the science advisory committee._ 
_(e)  The science advisory committee shall:_ 
_(1)__ __ __serve as an objective scientific body to 
advise _ 
_and make recommendations to the advisory group on issues relating _ 
_to the science of environmental flow protection; and_ 
_(2)__ __ __develop recommendations to help provide 
overall _ 
_direction, coordination, and consistency relating to:_ 
_(A)__ __ __environmental flow methodologies for 
bay and _ 
_estuary studies and instream flow studies;_ 
_(B)__ __ __environmental flow programs at the _ 
_commission, the Parks and Wildlife Department, and the board; and_ 
_(C)__ __ __the work of the basin and bay expert 
science _ 
_teams described in Section 11.02362._ 
_(f)__ __ __To assist the advisory group to assess the extent 
to _ 
_which the recommendations of the science advisory committee are _ 
_considered and implemented, the commission, the Parks and Wildlife _ 
_Department, and the board shall provide written reports to the _ 
_advisory group, at intervals determined by the advisory group, that _ 
_describe:_ 
_(1)__ __ __the actions taken by each agency in response 
to _ 
_each recommendation; and_ 
_(2)__ __ __for each recommendation not implemented, the _ 
_reason it was not implemented._ 
_(g)__ __ __The science advisory committee is abolished on the 
date _ 
_the advisory group is abolished under Section 11.0236(m)._ 
_Sec.__ __11.02362.__ __ __DEVELOPMENT OF ENVIRONMENTAL FLOW 
REGIME _ 
_RECOMMENDATIONS. __ __(a)__ __ __For the purposes of this section, 
the _ 
_advisory group, not later than November 1, 2007, shall define the _ 
_geographical extent of each river basin and bay system in this state _ 
_for the sole purpose of developing environmental flow regime _ 
_recommendations under this section and adoption of environmental _ 
_flow standards under Section 11.1471._ 
_(b)__ __ __The advisory group shall give priority in 
descending _ 
_order to the following river basin and bay systems of the state for _ 
_the purpose of developing environmental flow regime _ 
_recommendations and adopting environmental flow standards:_ 
_(1)__ __ __the river basin and bay system consisting of 
the _ 
_Trinity and San Jacinto Rivers and Galveston Bay and the river basin _ 
_and bay system consisting of the Sabine and Neches Rivers and Sabine _ 
_Lake Bay;_ 
_(2)__ __ __the river basin and bay system consisting of 
the _ 
_Colorado and Lavaca Rivers and Matagorda and Lavaca Bays and the _ 
_river basin and bay system consisting of the Guadalupe, San _ 
_Antonio, Mission, and Aransas Rivers and Mission, Copano, Aransas, _ 
_and San Antonio Bays; and_ 
_(3)__ __ __the river basin and bay system consisting of 
the _ 
_Nueces River and Corpus Christi and Baffin Bays, the river basin and _ 
_bay system consisting of the Rio Grande, the Rio Grande estuary, and _ 
_the Lower Laguna Madre, and the Brazos River and its associated bay _ 
_and estuary system._ 
_(c)__ __ __For the river basin and bay systems listed in 
Subsection _ 
_(b)(1):_ 
_(1)__ __ __the advisory group shall appoint the basin 
and bay _ 
_area stakeholders committee not later than November 1, 2007;_ 
_(2)__ __ __the basin and bay area stakeholders committee _ 
_shall establish a basin and bay expert science team not later than _ 
_March 1, 2008;_ 
_(3)__ __ __the basin and bay expert science team shall _ 
_finalize environmental flow regime recommendations and submit them _ 
_to the basin and bay area stakeholders committee, the advisory _ 
_group, and the commission not later than March 1, 2009, except that _ 
_at the request of the basin and bay area stakeholders committee for _ 
_good cause shown, the advisory group may extend the deadline _ 
_provided by this subdivision;_ 
_(4)__ __ __the basin and bay area stakeholders committee _ 
_shall submit to the commission its comments on and recommendations _ 
_regarding the basin and bay expert science team's recommended _ 
_environmental flow regime not later than September 1, 2009; and_ 
_(5)__ __ __the commission shall adopt the environmental 
flow _ 
_standards as provided by Section 11.1471 not later than September _ 
_1, 2010._ 
_(d)__ __ __The advisory group shall appoint the basin and bay 
area _ 
_stakeholders committees for the river basin and bay systems listed _ 
_in Subsection (b)(2) not later than September 1, 2008, and shall _ 
_appoint the basin and bay area stakeholders committees for the _ 
_river basin and bay systems listed in Subsection (b)(3) not later _ 
_than September 1, 2009. The advisory group shall establish a _ 
_schedule for the performance of the tasks listed in Subsections _ 
_(c)(2) through (5) with regard to the river basin and bay systems _ 
_listed in Subsections (b)(2) and (3) that will result in the _ 
_adoption of environmental flow standards for that river basin and _ 
_bay system by the commission as soon as is reasonably possible. _ 
_Each basin and bay area stakeholders committee and basin and bay _ 
_expert science team for a river basin and bay system listed in _ 
_Subsection (b)(2) or (3) shall make recommendations to the advisory _ 
_group with regard to the schedule applicable to that river basin and _ 
_bay system. The advisory group shall consider the recommendations _ 
_of the basin and bay area stakeholders committee and basin and bay _ 
_expert science team as well as coordinate with, and give _ 
_appropriate consideration to the recommendations of, the _ 
_commission, the Parks and Wildlife Department, and the board in _ 
_establishing the schedule._ 
_(e)__ __ __For a river basin and bay system or a river basin 
that _ 
_does not have an associated bay system in this state not listed in _ 
_Subsection (b), the advisory group shall establish a schedule for _ 
_the development of environmental flow regime recommendations and _ 
_the adoption of environmental flow standards. The advisory group _ 
_shall develop the schedule in consultation with the commission, the _ 
_Parks and Wildlife Department, the board, and the pertinent basin _ 
_and bay area stakeholders committee and basin and bay expert _ 
_science team. The advisory group may, on its own initiative or on _ 
_request, modify a schedule established under this subsection to be _ 
_more responsive to particular circumstances, local desires, _ 
_changing conditions, or time-sensitive conflicts. This subsection _ 
_does not prohibit, in a river basin and bay system for which the _ 
_advisory group has not yet established a schedule for the _ 
_development of environmental flow regime recommendations and the _ 
_adoption of environmental flow standards, an effort to develop _ 
_information on environmental flow needs and ways in which those _ 
_needs can be met by a voluntary consensus-building process._ 
_(f)__ __ __The advisory group shall appoint a basin and bay 
area _ 
_stakeholders committee for each river basin and bay system in this _ 
_state for which a schedule for the development of environmental _ 
_flow regime recommendations and the adoption of environmental flow _ 
_standards is specified by or established under Subsection (c), (d), _ 
_or (e). Chapter 2110, Government Code, does not apply to the size, _ 
_composition, or duration of a basin and bay area stakeholders _ 
_committee. __ __Each committee must consist of at least 17 members. 
The _ 
_membership of each committee must:_ 
_(1)__ __ __reflect a fair and equitable balance of 
interest _ 
_groups concerned with the particular river basin and bay system for _ 
_which the committee is established;__ __and_ 
_(2)__ __ __be representative of appropriate 
stakeholders, _ 
_including the following if they have a presence in the particular _ 
_river basin and bay system for which the committee is established:_ 
_(A)__ __ __agricultural water users, including _ 
_representatives of each of the following sectors:_ 
_(i)  agricultural irrigation;_ 
_(ii)  free-range livestock; and_ 
_(iii)__ __ __concentrated animal feeding _ 
_operation;_ 
_(B)__ __ __recreational water users, including 
coastal _ 
_recreational anglers and businesses supporting water recreation;_ 
_(C)  municipalities;_ 
_(D)  soil and water conservation districts;_ 
_(E)__ __ __industrial water users, including _ 
_representatives of each of the following sectors:_ 
_(i)  refining;_ 
_(ii)  chemical manufacturing;_ 
_(iii)  electricity generation; and_ 
_(iv)__ __ __production of paper products or _ 
_timber;_ 
_(F)  commercial fishermen;_ 
_(G)  public interest groups;_ 
_(H)  regional water planning groups;_ 
_(I)  groundwater conservation districts;_ 
_(J)__ __ __river authorities and other 
conservation and _ 
_reclamation districts with jurisdiction over surface water; and_ 
_(K)  environmental interests._ 
_(g)__ __ __Members of a basin and bay area stakeholders 
committee _ 
_serve five-year terms expiring March 1. If a vacancy occurs on a _ 
_committee, the remaining members of the committee by majority vote _ 
_shall appoint a member to serve the remainder of the unexpired term._ 
_(h)__ __ __Meetings of a basin and bay area stakeholders 
committee _ 
_must be open to the public._ 
_(i)__ __ __Each basin and bay area stakeholders committee 
shall _ 
_establish a basin and bay expert science team for the river basin _ 
_and bay system for which the committee is established. The basin _ 
_and bay expert science team must be established not later than six _ 
_months after the date the basin and bay area stakeholders committee _ 
_is established. Chapter 2110, Government Code, does not apply to _ 
_the size, composition, or duration of a basin and bay expert science _ 
_team. __ __Each basin and bay expert science team must be composed of _ 
_technical experts with special expertise regarding the river basin _ 
_and bay system or regarding the development of environmental flow _ 
_regimes. __ __A person may serve as a member of more than one basin 
and _ 
_bay expert science team at the same time._ 
_(j)__ __ __The members of a basin and bay expert science team 
serve _ 
_five-year terms expiring April 1. A vacancy on a basin and bay _ 
_expert science team is filled by appointment by the pertinent basin _ 
_and bay area stakeholders committee to serve the remainder of the _ 
_unexpired term._ 
_(k)__ __ __The science advisory committee shall appoint one 
of its _ 
_members to serve as a liaison to each basin and bay expert science _ 
_team to facilitate coordination and consistency in environmental _ 
_flow activities throughout the state. The commission, the Parks _ 
_and Wildlife Department, and the board shall provide technical _ 
_assistance to each basin and bay expert science team, including _ 
_information about the studies conducted under Sections 16.058 and _ 
_16.059, and may serve as nonvoting members of the basin and bay _ 
_expert science team to facilitate the development of environmental _ 
_flow regime recommendations._ 
_(l)__ __ __Where reasonably practicable, meetings of a basin 
and _ 
_bay expert science team must be open to the public._ 
_(m)__ __ __Each basin and bay expert science team shall 
develop _ 
_environmental flow analyses and a recommended environmental flow _ 
_regime for the river basin and bay system for which the team is _ 
_established through a collaborative process designed to achieve a _ 
_consensus. In developing the analyses and recommendations, the _ 
_science team must consider all reasonably available science, _ 
_without regard to the need for the water for other uses, and the _ 
_science team's recommendations must be based solely on the best _ 
_science available. __ __For the Rio Grande below Fort Quitman, any 
uses _ 
_attributable to Mexican water flows must be excluded from _ 
_environmental flow regime recommendations._ 
_(n)__ __ __Each basin and bay expert science team shall 
submit its _ 
_environmental flow analyses and environmental flow regime _ 
_recommendations to the pertinent basin and bay area stakeholders _ 
_committee, the advisory group, and the commission in accordance _ 
_with the applicable schedule specified by or established under _ 
_Subsection (c), (d), or (e). The basin and bay area stakeholders _ 
_committee and the advisory group may not change the environmental _ 
_flow analyses or environmental flow regime recommendations of the _ 
_basin and bay expert science team._ 
_(o)__ __ __Each basin and bay area stakeholders committee 
shall _ 
_review the environmental flow analyses and environmental flow _ 
_regime recommendations submitted by the committee's basin and bay _ 
_expert science team and shall consider them in conjunction with _ 
_other factors, including the present and future needs for water for _ 
_other uses related to water supply planning in the pertinent river _ 
_basin and bay system. For__ __the Rio Grande, the basin and bay area _ 
_stakeholders committee shall also consider the water accounting _ 
_requirements for any international water sharing treaty, minutes, _ 
_and agreement applicable to the Rio Grande and the effects on _ 
_allocation of water by the Rio Grande watermaster in the middle and _ 
_lower Rio Grande. __ __The Rio Grande basin and bay expert science 
team _ 
_may not recommend any environmental flow regime that would result _ 
_in a violation of a treaty or court decision. __ __The basin and bay 
area _ 
_stakeholders committee shall develop recommendations regarding _ 
_environmental flow standards and strategies to meet the _ 
_environmental flow standards and submit those recommendations to _ 
_the commission and to the advisory group in accordance with the _ 
_applicable schedule specified by or established under Subsection _ 
_(c), (d), or (e). In developing its recommendations, the basin and _ 
_bay area stakeholders committee shall operate on a consensus basis _ 
_to the maximum extent possible._ 
_(p)__ __ __In recognition of the importance of adaptive _ 
_management, after submitting its recommendations regarding _ 
_environmental flow standards and strategies to meet the _ 
_environmental flow standards to the commission, each basin and bay _ 
_area stakeholders committee, with the assistance of the pertinent _ 
_basin and bay expert science team, shall prepare and submit for _ 
_approval by the advisory group a work plan. __ __The work plan must:_ 
_(1)__ __ __establish a periodic review of the basin and 
bay _ 
_environmental flow analyses and environmental flow regime _ 
_recommendations, environmental flow standards, and strategies, to _ 
_occur at least once every 10 years;_ 
_(2)__ __ __prescribe specific monitoring, studies, and _ 
_activities; and_ 
_(3)__ __ __establish a schedule for continuing the 
validation _ 
_or refinement of the basin and bay environmental flow analyses and _ 
_environmental flow regime recommendations, the environmental flow _ 
_standards adopted by the commission, and the strategies to achieve _ 
_those standards._ 
_(q)__ __ __In accordance with the applicable schedule 
specified by _ 
_or established under Subsection (c), (d), or (e), the advisory _ 
_group, with input from the science advisory committee, shall review _ 
_the environmental flow analyses and environmental flow regime _ 
_recommendations submitted by each basin and bay expert science _ 
_team. If appropriate, the advisory group shall submit comments on _ 
_the analyses and recommendations to the commission for use by the _ 
_commission in adopting rules under Section 11.1471. Comments must _ 
_be submitted not later than six months after the date of receipt of _ 
_the analyses and recommendations._ 
_(r)__ __ __Notwithstanding the other provisions of this 
section, _ 
_in the event the commission, by permit or order, has established an _ 
_estuary advisory council with specific duties related to _ 
_implementation of permit conditions for environmental flows, that _ 
_council may continue in full force and effect and shall act as and _ 
_perform the duties of the basin and bay area stakeholders committee _ 
_under this section. The estuary advisory council shall add members _ 
_from stakeholder groups and from appropriate science and technical _ 
_groups, if necessary, to fully meet the criteria for membership _ 
_established in Subsection (f) and shall operate under the _ 
_provisions of this section._ 
_(s)__ __ __Each basin and bay area stakeholders committee and 
basin _ 
_and bay expert science team is abolished on the date the advisory _ 
_group is abolished under Section 11.0236(m)._ 
_Sec.__ __11.0237.__ __ __WATER RIGHTS FOR INSTREAM FLOWS 
DEDICATED TO _ 
_ENVIRONMENTAL NEEDS OR BAY AND ESTUARY INFLOWS. __ __(a)__ __ __The _ 
_commission may not issue a new permit for instream flows dedicated _ 
_to environmental needs or bay and estuary inflows. __ __The 
commission _ 
_may approve an application to amend an existing permit or _ 
_certificate of adjudication to change the use to or add a use for _ 
_instream flows dedicated to environmental needs or bay and estuary _ 
_inflows._ 
_(b)__ __ __This section does not alter the commission's _ 
_obligations under Section 11.042(b) or (c),__ __11.046(b), _ 
_11.085(k)(2)(F), 11.134(b)(3)(D), 11.147, 11.1471, 11.1491, _ 
_11.150, 11.152,__ __16.058, or 16.059._ 
SECTION 1.08.  Subsection (b), Section 11.082, Water Code, 
is amended to read as follows: 
(b)  The state may recover the penalties prescribed in 
Subsection (a) [of this section] by suit brought for that purpose in 
a court of competent jurisdiction. _The state may seek those _ 
_penalties regardless of whether a watermaster has been appointed _ 
_for the water division, river basin, or segment of a river basin _ 
_where the unlawful use is alleged to have occurred._ 
SECTION 1.09.  Section 11.0841, Water Code, is amended by 
adding Subsection (c) to read as follows: 
_(c)__ __ __For purposes of this section, the Parks and 
Wildlife _ 
_Department has:_ 
_(1)__ __ __the rights of a holder of a water right that 
is _ 
_held in the Texas Water Trust, including the right to file suit in a _ 
_civil court to prevent the unlawful use of such a right;_ 
_(2)__ __ __the right to act in the same manner that a 
holder _ 
_of a water right may act to protect the holder's rights in seeking _ 
_to prevent any person from appropriating water in violation of a _ 
_set-aside established by the commission under Section 11.1471 to _ 
_meet instream flow needs or freshwater inflow needs; and_ 
_(3)__ __ __the right to file suit in a civil court to 
prevent _ 
_the unlawful use of a set-aside established under Section 11.1471._ 
SECTION 1.10.  Subsection (a), Section 11.0842, Water Code, 
is amended to read as follows: 
(a)  If a person violates this chapter, a rule or order 
adopted under this chapter or Section 16.236 [of this code], or a 
permit, certified filing, or certificate of adjudication issued 
under this chapter, the commission may assess an administrative 
penalty against that person as provided by this section. _The _ 
_commission may assess an administrative penalty for a violation _ 
_relating to a water division or a river basin or segment of a river _ 
_basin regardless of whether a watermaster has been appointed for _ 
_the water division or river basin or segment of the river basin._ 
SECTION 1.11.  Subsection (a), Section 11.0843, Water Code, 
is amended to read as follows: 
(a)  Upon witnessing a violation of this chapter or a rule or 
order or a water right issued under this chapter, _the executive _ 
_director or a person designated by the executive director, _ 
_including_ a watermaster or the watermaster's deputy, [as defined by 
commission rule,] may issue the alleged violator a field citation 
alleging that a violation has occurred and providing the alleged 
violator the option of either: 
(1)  without admitting to or denying the alleged 
violation, paying an administrative penalty in accordance with the 
predetermined penalty amount established under Subsection (b) [of 
this section] and taking remedial action as provided in the 
citation; or 
(2)  requesting a hearing on the alleged violation in 
accordance with Section 11.0842 [of this code]. 
SECTION 1.12.  Subsection (b), Section 11.134, Water Code, 
is amended to read as follows: 
(b)  The commission shall grant the application only if: 
(1)  the application conforms to the requirements 
prescribed by this chapter and is accompanied by the prescribed 
fee; 
(2)  unappropriated water is available in the source of 
supply; 
(3)  the proposed appropriation: 
(A)  is intended for a beneficial use; 
(B)  does not impair existing water rights or 
vested riparian rights; 
(C)  is not detrimental to the public welfare; 
(D)  considers _any applicable environmental flow _ 
_standards established under Section 11.1471 and, if applicable,_ the 
assessments performed under Sections 11.147(d) and (e) and Sections 
11.150, 11.151, and 11.152; and 
(E)  addresses a water supply need in a manner 
that is consistent with the state water plan and the relevant 
approved regional water plan for any area in which the proposed 
appropriation is located, unless the commission determines that 
conditions warrant waiver of this requirement; and 
(4)  the applicant has provided evidence that 
reasonable diligence will be used to avoid waste and achieve water 
conservation as defined by [Subdivision (8)(B),] Section 
_11.002(8)(B)_ [11.002]. 
SECTION 1.13.  Section 11.147, Water Code, is amended by 
amending Subsections (b), (d), and (e) and adding Subsections 
(e-1), (e-2), and (e-3) to read as follows: 
(b)  In its consideration of an application for a permit to 
store, take, or divert water, the commission shall assess the 
effects, if any, of the issuance of the permit on the bays and 
estuaries of Texas. For permits issued within an area that is 200 
river miles of the coast, to commence from the mouth of the river 
thence inland, the commission shall include in the permit _any _ 
_conditions considered necessary to maintain beneficial inflows to _ 
_any affected bay and estuary system_, to the extent practicable when 
considering all public interests and the studies mandated by 
Section 16.058 as evaluated under Section 11.1491[, those 
conditions considered necessary to maintain beneficial inflows to 
any affected bay and estuary system]. 
(d)  In its consideration of an application to store, take, 
or divert water, the commission shall include in the permit, to the 
extent practicable when considering all public interests, those 
conditions considered by the commission necessary to maintain 
existing instream uses and water quality of the stream or river to 
which the application applies. _In determining what conditions to _ 
_include in the permit under this subsection, the commission shall _ 
_consider among other factors:_ 
_(1)  the studies mandated by Section 16.059; and_ 
_(2)__ __ __any water quality assessment performed under _ 
_Section 11.150._ 
(e)  The commission shall include in the permit, to the 
extent practicable when considering all public interests, those 
conditions considered by the commission necessary to maintain fish 
and wildlife habitats. _In determining what conditions to include _ 
_in the permit under this subsection, the commission shall consider _ 
_any assessment performed under Section 11.152._ 
_(e-1)__ __ __Any permit for a new appropriation of water or an _ 
_amendment to an existing water right that increases the amount of _ 
_water authorized to be stored, taken, or diverted must include a _ 
_provision allowing the commission to adjust the conditions included _ 
_in the permit or amended water right to provide for protection of _ 
_instream flows or freshwater inflows. With respect to an amended _ 
_water right, the provision may not allow the commission to adjust a _ 
_condition of the amendment other than a condition that applies only _ 
_to the increase in the amount of water to be stored, taken, or _ 
_diverted authorized by the amendment. __ __This subsection does not _ 
_affect an appropriation of or an authorization to store, take, or _ 
_divert water under a permit or amendment to a water right issued _ 
_before September 1, 2007. __ __The commission shall adjust the _ 
_conditions if the commission determines, through an expedited _ 
_public comment process, that such an adjustment is appropriate to _ 
_achieve compliance with applicable environmental flow standards _ 
_adopted under Section 11.1471. The adjustment:_ 
_(1)__ __ __in combination with any previous adjustments 
made _ 
_under this subsection may not increase the amount of the _ 
_pass-through or release requirement for the protection of instream _ 
_flows or freshwater inflows by more than 12.5 percent of the _ 
_annualized total of that requirement contained in the permit as _ 
_issued or of that requirement contained in the amended water right _ 
_and applicable only to the increase in the amount of water _ 
_authorized to be stored, taken, or diverted under the amended water _ 
_right;_ 
_(2)__ __ __must be based on appropriate consideration 
of the _ 
_priority dates and diversion locations of any other water rights _ 
_granted in the same river basin that are subject to adjustment under _ 
_this subsection; and_ 
_(3)__ __ __must be based on appropriate consideration 
of any _ 
_voluntary contributions to the Texas Water Trust, and of any _ 
_voluntary amendments to existing water rights to change the use of a _ 
_specified quantity of water to or add a use of a specified quantity _ 
_of water for instream flows dedicated to environmental needs or bay _ 
_and estuary inflows as authorized by Section 11.0237(a), that _ 
_actually contribute toward meeting the applicable environmental _ 
_flow standards._ 
_(e-2) Any water right holder who makes a contribution or _ 
_amends a water right as described by Subsection (e-1)(3) is _ 
_entitled to appropriate credit for the benefits of the contribution _ 
_or amendment against the adjustment of the holder's water right _ 
_under Subsection (e-1)._ 
_(e-3)__ __ __Notwithstanding Subsections (b)-(e), for the 
purpose _ 
_of determining the environmental flow conditions necessary to _ 
_maintain freshwater inflows to an affected bay and estuary system, _ 
_existing instream uses and water quality of a stream or river, or _ 
_fish and aquatic wildlife habitats, the commission shall apply any _ 
_applicable environmental flow standard, including any _ 
_environmental flow set-aside, adopted under Section 11.1471 _ 
_instead of considering the factors specified by those subsections._ 
SECTION 1.14.  Subchapter D, Chapter 11, Water Code, is 
amended by adding Section 11.1471 to read as follows: 
_Sec.__ __11.1471.__ __ __ENVIRONMENTAL FLOW STANDARDS AND 
SET-ASIDES. _ 
_(a)__ __ __The commission by rule shall:_ 
_(1)__ __ __adopt appropriate environmental flow 
standards _ 
_for each river basin and bay system in this state that are adequate _ 
_to support a sound ecological environment, to the maximum extent _ 
_reasonable considering other public interests and other relevant _ 
_factors;_ 
_(2)__ __ __establish an amount of unappropriated water, 
if _ 
_available, to be set aside to satisfy the environmental flow _ 
_standards to the maximum extent reasonable when considering human _ 
_water needs; and_ 
_(3)__ __ __establish procedures for implementing an _ 
_adjustment of the conditions included in a permit or an amended _ 
_water right as provided by Sections 11.147(e-1) and (e-2)._ 
_(b)__ __ __In adopting environmental flow standards for a 
river _ 
_basin and bay system under Subsection (a)(1), the commission shall _ 
_consider:_ 
_(1)__ __ __the definition of the geographical extent of 
the _ 
_river basin and bay system adopted by the advisory group under _ 
_Section 11.02362(a) and the definition and designation of the river _ 
_basin by the board under Section 16.051(c);_ 
_(2)__ __ __the schedule established by the advisory 
group _ 
_under Section 11.02362(d) or (e) for the adoption of environmental _ 
_flow standards for the river basin and bay system, if applicable;_ 
_(3)__ __ __the environmental flow analyses and the _ 
_recommended environmental flow regime developed by the applicable _ 
_basin and bay expert science team under Section 11.02362(m);_ 
_(4)__ __ __the recommendations developed by the 
applicable _ 
_basin and bay area stakeholders committee under Section 11.02362(o) _ 
_regarding environmental flow standards and strategies to meet the _ 
_flow standards;_ 
_(5)__ __ __any comments submitted by the advisory group 
to _ 
_the commission under Section 11.02362(q);_ 
_(6)__ __ __the specific characteristics of the river 
basin _ 
_and bay system;_ 
_(7)  economic factors;_ 
_(8)__ __ __the human and other competing water needs in 
the _ 
_river basin and bay system;_ 
_(9)__ __ __all reasonably available scientific 
information, _ 
_including any scientific information provided by the science _ 
_advisory committee; and_ 
_(10)  any other appropriate information._ 
_(c)__ __ __Environmental flow standards adopted under 
Subsection _ 
_(a)(1) must consist of a schedule of flow quantities, reflecting _ 
_seasonal and yearly fluctuations that may vary geographically by _ 
_specific location in a river basin and bay system._ 
_(d)__ __ __As provided by Section 11.023, the commission may 
not _ 
_issue a permit for a new appropriation or an amendment to an _ 
_existing water right that increases the amount of water authorized _ 
_to be stored, taken, or diverted if the issuance of the permit or _ 
_amendment would impair an environmental flow set-aside established _ 
_under Subsection (a)(2). A permit for a new appropriation or an _ 
_amendment to an existing water right that increases the amount of _ 
_water authorized to be stored, taken, or diverted that is issued _ 
_after the adoption of an applicable environmental flow set-aside _ 
_must contain appropriate conditions to ensure protection of the _ 
_environmental flow set-aside._ 
_(e)__ __ __An environmental flow set-aside established under _ 
_Subsection (a)(2) for a river basin and bay system other than the _ 
_middle and lower Rio Grande must be assigned a priority date _ 
_corresponding to the date the commission receives environmental _ 
_flow regime recommendations from the applicable basin and bay _ 
_expert science team and be included in the appropriate water _ 
_availability models in connection with an application for a permit _ 
_for a new appropriation or for an amendment to an existing water _ 
_right that increases the amount of water authorized to be stored, _ 
_taken, or diverted._ 
_(f)__ __ __An environmental flow standard or environmental 
flow _ 
_set-aside adopted under Subsection (a) may be altered by the _ 
_commission in a rulemaking process undertaken in accordance with a _ 
_schedule established by the commission. __ __In establishing a _ 
_schedule, the commission shall consider the applicable work plan _ 
_approved by the advisory group under Section 11.02362(p). __ __The _ 
_commission's schedule may not provide for the rulemaking process to _ 
_occur more frequently than once every 10 years unless the work plan _ 
_provides for a periodic review under Section 11.02362(p) to occur _ 
_more frequently than once every 10 years. __ __In that event, the _ 
_commission may provide for the rulemaking process to be undertaken _ 
_in conjunction with the periodic review if the commission _ 
_determines that schedule to be appropriate. __ __A rulemaking process _ 
_undertaken under this subsection must provide for the participation _ 
_of stakeholders having interests in the particular river basin and _ 
_bay system for which the process is undertaken._ 
SECTION 1.15.  The heading to Section 11.148, Water Code, is 
amended to read as follows: 
Sec. 11.148.  EMERGENCY SUSPENSION OF PERMIT CONDITIONS _AND _ 
_EMERGENCY AUTHORITY TO MAKE AVAILABLE WATER SET ASIDE FOR _ 
_ENVIRONMENTAL FLOWS_. 
SECTION 1.16.  Section 11.148, Water Code, is amended by 
adding Subsection (a-1) and amending Subsections (b) and (c) to 
read as follows: 
_(a-1)__ __ __State water that is set aside by the commission 
to _ 
_meet the needs for freshwater inflows to affected bays and _ 
_estuaries and instream uses under Section 11.1471(a)(2) may be made _ 
_available temporarily for other essential beneficial uses if the _ 
_commission finds that an emergency exists that cannot practically _ 
_be resolved in another way._ 
(b)  Before the commission suspends a permit _condition_ under 
Subsection (a) _or makes water available temporarily under _ 
_Subsection (a-1)_ [of this section], it must give written notice to 
the Parks and Wildlife Department of the proposed _action_ 
[suspension]. The commission shall give the Parks and Wildlife 
Department an opportunity to submit comments on the proposed _action_ 
[suspension] within 72 hours from such time and the commission 
shall consider those comments before issuing its order _implementing _ 
_the proposed action_ [imposing the suspension]. 
(c)  The commission may suspend the permit _condition under _ 
_Subsection (a) or make water available temporarily under Subsection _ 
_(a-1)_ without notice to any other interested party other than the 
Parks and Wildlife Department as provided by Subsection (b) [of 
this section]. However, all affected persons shall be notified 
immediately by publication, and a hearing to determine whether the 
suspension should be continued shall be held within 15 days of the 
date on which the order to suspend is issued. 
SECTION 1.17.  Subsection (a), Section 11.1491, Water Code, 
is amended to read as follows: 
(a)  The Parks and Wildlife Department and the commission 
shall have joint responsibility to review the studies prepared 
under Section 16.058 [of this code], to determine inflow conditions 
necessary for the bays and estuaries, and to provide information 
necessary for water resources management. Each agency shall 
designate an employee to share equally in the oversight of the 
program. Other responsibilities shall be divided between the Parks 
and Wildlife Department and the commission to maximize present 
in-house capabilities of personnel and to minimize costs to the 
state. Each agency shall have reasonable access to all information 
produced by the other agency. Publication of reports completed 
under this section shall be submitted for comment to [both] the 
commission_,_ [and] the Parks and Wildlife Department_, the advisory _ 
_group, the science advisory committee, and any applicable basin and _ 
_bay area stakeholders committee and basin and bay expert science _ 
_team_. 
SECTION 1.18.  Subsection (g), Section 11.329, Water Code, 
is amended to read as follows: 
(g)  The commission may not assess costs under this section 
against a holder of a non-priority hydroelectric right that owns or 
operates privately owned facilities that collectively have a 
capacity of less than two megawatts _or against a holder of a water _ 
_right placed in the Texas Water Trust for a term of at least 20 _ 
_years_. [This subsection is not intended to affect in any way the 
fees assessed on a water right holder by the commission under 
Section 1.29(d), Chapter 626, Acts of the 73rd Legislature, Regular 
Session, 1993. For purposes of Section 1.29(d), Chapter 626, Acts 
of the 73rd Legislature, Regular Session, 1993, a holder of a 
non-priority hydroelectric right that owns or operates privately 
owned facilities that collectively have a capacity of less than two 
megawatts shall be assessed fees at the same rate per acre-foot 
charged to a holder of a non-priority hydroelectric right that owns 
or operates privately owned facilities that collectively have a 
capacity of more than two megawatts.] 
SECTION 1.19.  Subsection (e), Section 11.404, Water Code, 
is amended to read as follows: 
(e)  The court may not assess costs and expenses under this 
section against_:_ 
_(1)_  a holder of a non-priority hydroelectric right 
that owns or operates privately owned facilities that collectively 
have a capacity of less than two megawatts_; or_ 
_(2)__ __ __a holder of a water right placed in the 
Texas Water _ 
_Trust for a term of at least 20 years_. 
SECTION 1.20.  Subchapter I, Chapter 11, Water Code, is 
amended by adding Section 11.4531 to read as follows: 
_Sec.__ __11.4531.__ __ __WATERMASTER ADVISORY COMMITTEE. 
(a)__ __ __For _ 
_each river basin or segment of a river basin for which the executive _ 
_director appoints a watermaster under this subchapter, the _ 
_executive director shall appoint a watermaster advisory committee _ 
_consisting of at least nine but not more than 15 members. A member _ 
_of the advisory committee must be a holder of a water right or a _ 
_representative of a holder of a water right in the river basin or _ 
_segment of the river basin for which the watermaster is appointed. _ 
_In appointing members to the advisory committee, the executive _ 
_director shall consider:_ 
_(1)  geographic representation;_ 
_(2)  amount of water rights held;_ 
_(3)__ __ __different types of holders of water rights 
and _ 
_users, including water districts, municipal suppliers, irrigators, _ 
_and industrial users; and_ 
_(4)__ __ __experience and knowledge of water management _ 
_practices._ 
_(b)__ __ __An advisory committee member is not entitled to _ 
_reimbursement of expenses or to compensation._ 
_(c)__ __ __An advisory committee member serves a two-year term _ 
_expiring August 31 of each odd-numbered year and holds office until _ 
_a successor is appointed._ 
_(d)__ __ __The advisory committee shall meet within 30 days 
after _ 
_the date the initial appointments have been made and shall select a _ 
_presiding officer to serve a one-year term. The committee shall _ 
_meet regularly as necessary._ 
_(e)  The advisory committee shall:_ 
_(1)__ __ __make recommendations to the executive 
director _ 
_regarding activities of benefit to the holders of water rights in _ 
_the administration and distribution of water to holders of water _ 
_rights in the river basin or segment of the river basin for which _ 
_the watermaster is appointed;_ 
_(2)__ __ __review and comment to the executive director 
on _ 
_the annual budget of the watermaster operation; and_ 
_(3)__ __ __perform other advisory duties as requested 
by the _ 
_executive director regarding the watermaster operation or as _ 
_requested by holders of water rights and considered by the _ 
_committee to benefit the administration of water rights in the _ 
_river basin or segment of the river basin for which the watermaster _ 
_is appointed._ 
SECTION 1.21.  Sections 11.454 and 11.455, Water Code, are 
amended to read as follows: 
Sec. 11.454.  DUTIES AND AUTHORITY OF THE WATERMASTER. 
_Section 11.327 applies to the duties and authority of a watermaster _ 
_appointed for a river basin or segment of a river basin under this _ 
_subchapter in the same manner as that section applies to the duties _ 
_and authority of a watermaster appointed for a water division under _ 
_Subchapter G_ [A watermaster as the agent of the commission and under 
the executive director's supervision shall: 
[(1)     divide the water of the streams or other sources 
of supply of his segment or basin in accordance with the authorized 
water rights; 
[(2)     regulate or cause to be regulated the controlling 
works of reservoirs and diversion works in time of water shortage, 
as is necessary because of the rights existing in the streams of his 
segment or basin, or as is necessary to prevent the waste of water 
or its diversion, taking, storage, or use in excess of the 
quantities to which the holders of water rights are lawfully 
entitled; and 
[(3)     perform any other duties and exercise any 
authority directed by the commission]. 
Sec. 11.455.  _COMPENSATION AND EXPENSES OF WATERMASTER_ 
[ASSESSMENTS]. _(a)__ __ __Section 11.329 applies to the payment of 
the _ 
_compensation and expenses of a watermaster appointed for a river _ 
_basin or segment of a river basin under this subchapter in the same _ 
_manner as that section applies to the payment of the compensation _ 
_and expenses of a watermaster appointed for a water division under _ 
_Subchapter G._ 
_(b)__ __ __The executive director shall deposit the 
assessments _ 
_collected under this section to the credit of the watermaster fund._ 
_(c)__ __ __Money deposited under this section to the credit 
of the _ 
_watermaster fund may be used only for the purposes specified by _ 
_Section 11.3291 with regard to the watermaster operation under this _ 
_subchapter with regard to which the assessments were collected_ [The 
commission may assess the costs of the watermaster against all 
persons who hold water rights in the river basin or segment of the 
river basin under the watermaster's jurisdiction in accordance with 
Section 11.329 of this code]. 
SECTION 1.22.  Subchapter F, Chapter 15, Water Code, is 
amended by adding Section 15.4063 to read as follows: 
_Sec.__ __15.4063.__ __ __ENVIRONMENTAL FLOWS FUNDING. The 
board may _ 
_authorize the use of money in the research and planning fund:_ 
_(1)__ __ __to compensate the members of the Texas _ 
_environmental flows science advisory committee established under _ 
_Section 11.02361 for attendance and participation at meetings of _ 
_the committee and for transportation, meals, lodging, or other _ 
_travel expenses associated with attendance at those meetings as _ 
_provided by the General Appropriations Act;_ 
_(2)__ __ __for contracts with cooperating state and 
federal _ 
_agencies and universities and with private entities as necessary to _ 
_provide technical assistance to enable the Texas environmental _ 
_flows science advisory committee and the basin and bay expert _ 
_science teams established under Section 11.02362 to perform their _ 
_statutory duties;_ 
_(3)__ __ __to compensate the members of the basin and 
bay _ 
_expert science teams established under Section 11.02362 for _ 
_attendance and participation at meetings of the basin and bay _ 
_expert science teams and for transportation, meals, lodging, or _ 
_other travel expenses associated with attendance at those meetings _ 
_as provided by the General Appropriations Act; and_ 
_(4)__ __ __for contracts with political subdivisions _ 
_designated as representatives of basin and bay area stakeholders _ 
_committees established under Section 11.02362 to fund all or part _ 
_of the administrative expenses incurred in conducting meetings of _ 
_the basin and bay area stakeholders committees or the pertinent _ 
_basin and bay expert science teams._ 
SECTION 1.23.  Subsection (d), Section 16.059, Water Code, 
is amended to read as follows: 
(d)  The priority studies shall be completed not later than 
December 31, _2016_ [2010]. The Parks and Wildlife Department, the 
commission, and the board shall establish a work plan that 
prioritizes the studies and that sets interim deadlines providing 
for publication of flow determinations for individual rivers and 
streams on a reasonably consistent basis throughout the prescribed 
study period. Before publication, completed studies shall be 
submitted for comment to the commission, the board, and the Parks 
and Wildlife Department. 
SECTION 1.24.  Subsection (h), Section 26.0135, Water Code, 
as amended by Chapters 234 and 965, Acts of the 77th Legislature, 
Regular Session, 2001, is reenacted and amended to read as follows: 
(h)  The commission shall apportion, assess, and recover the 
reasonable costs of administering the water quality management 
programs under this section from users of water and wastewater 
permit holders in the watershed according to the records of the 
commission generally in proportion to their right, through permit 
or contract, to use water from and discharge wastewater in the 
watershed. Irrigation water rights_,_ [and] non-priority 
hydroelectric rights of a water right holder that owns or operates 
privately owned facilities that collectively have a capacity of 
less than two megawatts_, and water rights held in the Texas Water _ 
_Trust for terms of at least 20 years_ will not be subject to this 
assessment. The cost to river authorities and others to conduct 
water quality monitoring and assessment shall be subject to prior 
review and approval by the commission as to methods of allocation 
and total amount to be recovered. The commission shall adopt rules 
to supervise and implement the water quality monitoring, 
assessment, and associated costs. The rules shall ensure that 
water users and wastewater dischargers do not pay excessive 
amounts, that program funds are equitably apportioned among basins, 
that a river authority may recover no more than the actual costs of 
administering the water quality management programs called for in 
this section, and that no municipality shall be assessed cost for 
any efforts that duplicate water quality management activities 
described in Section 26.177 [of this chapter]. The rules 
concerning the apportionment and assessment of reasonable costs 
shall provide for a recovery of not more than $5,000,000 annually. 
Costs recovered by the commission are to be deposited to the credit 
of the water resource management account and may be used only to 
accomplish the purposes of this section. The commission may apply 
not more than 10 percent of the costs recovered annually toward the 
commission's overhead costs for the administration of this section 
and the implementation of regional water quality assessments. The 
commission, with the assistance and input of each river authority, 
shall file a written report accounting for the costs recovered 
under this section with the governor, the lieutenant governor, and 
the speaker of the house of representatives on or before December 1 
of each even-numbered year. 
SECTION 1.25.  Subsection (b), Section 11.1491, Water Code, 
is repealed. 
SECTION 1.26.  (a)  The governor, lieutenant governor, and 
speaker of the house of representatives shall appoint the initial 
members of the environmental flows advisory group as provided by 
Section 11.0236, Water Code, as added by this article, as soon as 
practicable on or after the effective date of this Act. 
(b)  As soon as practicable after taking office, the initial 
members of the environmental flows advisory group shall appoint the 
initial members of the Texas environmental flows science advisory 
committee as provided by Section 11.02361, Water Code, as added by 
this article. The terms of the initial members of the committee 
expire March 1, 2012. 
(c)  The environmental flows advisory group shall appoint 
the members of each basin and bay area stakeholders committee as 
provided by Section 11.02362, Water Code, as added by this article. 
The terms of the initial members of each committee expire March 1 of 
the fifth year that begins after the year in which the initial 
appointments are made. 
(d)  Each basin and bay area stakeholders committee shall 
appoint the members of the basin and bay expert science team for the 
river basin and bay system for which the committee is established as 
provided by Section 11.02362, Water Code, as added by this article. 
The terms of the initial members of each team expire April 1 of the 
fifth year that begins after the year in which the initial 
appointments are made. 
(e)  The executive director of the Texas Commission on 
Environmental Quality shall appoint the members of the watermaster 
advisory committee under Section 11.4531, Water Code, as added by 
this article, for each river basin or segment of a river basin for 
which the executive director appoints a watermaster under 
Subchapter I, Chapter 11, Water Code. The terms of the initial 
members of each committee expire August 31 of the first 
odd-numbered year that begins after the year in which the initial 
appointments are made. 
SECTION 1.27.  The changes in law made by this article 
relating to a permit for a new appropriation of water or to an 
amendment to an existing water right that increases the amount of 
water authorized to be stored, taken, or diverted apply only to: 
(1)  water appropriated under a permit for a new 
appropriation of water the application for which is pending with 
the Texas Commission on Environmental Quality on the effective date 
of this Act or is filed with the commission on or after that date; or 
(2)  the increase in the amount of water authorized to 
be stored, taken, or diverted under an amendment to an existing 
water right that increases the amount of water authorized to be 
stored, taken, or diverted and the application for which is pending 
with the Texas Commission on Environmental Quality on the effective 
date of this Act or is filed with the commission on or after that 
date. 
ARTICLE 2.  WATER CONSERVATION AND PLANNING AND OTHER WATER-RELATED 
PROVISIONS 
SECTION 2.01.  Section 1.003, Water Code, is amended to read 
as follows: 
Sec. 1.003.  PUBLIC POLICY. It is the public policy of the 
state to provide for the conservation and development of the 
state's natural resources, including: 
(1)  the control, storage, preservation, and 
distribution of the state's storm and floodwaters and the waters of 
its rivers and streams for irrigation, power, and other useful 
purposes; 
(2)  the reclamation and irrigation of the state's 
arid, semiarid, and other land needing irrigation; 
(3)  the reclamation and drainage of the state's 
overflowed land and other land needing drainage; 
(4)  the conservation and development of its forest, 
water, and hydroelectric power; 
(5)  the navigation of the state's inland and coastal 
waters; [and] 
(6)  the maintenance of a proper ecological environment 
of the bays and estuaries of Texas and the health of related living 
marine resources_; and_ 
_(7)__ __ __the voluntary stewardship of public and 
private _ 
_lands to benefit waters of the state_. 
SECTION 2.02.  Subchapter A, Chapter 1, Water Code, is 
amended by adding Section 1.004 to read as follows: 
_Sec.__ __1.004.__ __ __FINDINGS AND POLICY REGARDING LAND 
STEWARDSHIP. _ 
_(a)__ __ __The legislature finds that voluntary land stewardship _ 
_enhances the efficiency and effectiveness of this state's _ 
_watersheds by helping to increase surface water and groundwater _ 
_supplies, resulting in a benefit to the natural resources of this _ 
_state and to the general public. It is therefore the policy of this _ 
_state to encourage voluntary land stewardship as a significant _ 
_water management tool._ 
_(b)__ __ __"Land stewardship," as used in this code, is the _ 
_voluntary practice of managing land to conserve or enhance suitable _ 
_landscapes and the ecosystem values of the land. Land stewardship _ 
_includes land and habitat management, wildlife conservation, and _ 
_watershed protection. Land stewardship practices include runoff _ 
_reduction, prescribed burning, managed grazing, brush management, _ 
_erosion management, reseeding with native plant species, riparian _ 
_management and restoration, and spring and creek-bank protection, _ 
_all of which benefit the water resources of this state._ 
SECTION 2.03.  Subtitle A, Title 2, Water Code, is amended by 
adding Chapter 10 to read as follows: 
_CHAPTER 10. __ __WATER CONSERVATION ADVISORY COUNCIL_ 
_Sec. 10.001.  DEFINITIONS. In this chapter:_ 
_(1)__ __ __"Best management practices" has the meaning _ 
_assigned by Section 11.002._ 
_(2)  "Board" means the Texas Water Development Board._ 
_(3)__ __ __"Commission" means the Texas Commission on _ 
_Environmental Quality._ 
_(4)__ __ __"Council" means the Water Conservation 
Advisory _ 
_Council._ 
_Sec.__ __10.002.__ __ __PURPOSE. __ __The council is created 
to provide the _ 
_governor, lieutenant governor, speaker of the house of _ 
_representatives, legislature, board, commission, political _ 
_subdivisions, and public with the resource of a select council with _ 
_expertise in water conservation._ 
_Sec.__ __10.003.__ __ __CREATION AND MEMBERSHIP. 
__ __(a)__ __ __The council is _ 
_composed of 23 members appointed by the board. The board shall _ 
_appoint one member to represent each of the following entities or _ 
_interest groups:_ 
_(1)  Texas Commission on Environmental Quality;_ 
_(2)  Department of Agriculture;_ 
_(3)  Parks and Wildlife Department;_ 
_(4)  State Soil and Water Conservation Board;_ 
_(5)  Texas Water Development Board;_ 
_(6)  regional water planning groups;_ 
_(7)  federal agencies;_ 
_(8)  municipalities;_ 
_(9)  groundwater conservation districts;_ 
_(10)  river authorities;_ 
_(11)  environmental groups;_ 
_(12)  irrigation districts;_ 
_(13)  institutional water users;_ 
_(14)__ __ __professional organizations focused on water _ 
_conservation;_ 
_(15)  higher education;_ 
_(16)  agricultural groups;_ 
_(17)  refining and chemical manufacturing;_ 
_(18)  electric generation;_ 
_(19)  mining and recovery of minerals;_ 
_(20)  landscape irrigation and horticulture;_ 
_(21)  water control and improvement districts;_ 
_(22)  rural water users; and_ 
_(23)  municipal utility districts._ 
_(b)__ __ __Each entity or interest group described by 
Subsection _ 
_(a) may recommend one or more persons to fill the position on the _ 
_council held by the member who represents that entity or interest _ 
_group. __ __If one or more persons are recommended for a position on 
the _ 
_council, the board shall appoint one of the persons recommended to _ 
_fill the position._ 
_Sec.__ __10.004.__ __ __TERMS. __ __(a)__ __ __Members of the 
council serve _ 
_staggered terms of six years, with seven or eight members' terms, as _ 
_applicable, expiring August 31 of each odd-numbered year._ 
_(b)__ __ __The board shall fill a vacancy on the council for 
the _ 
_unexpired term by appointing a person who has the same _ 
_qualifications as required under Section 10.003 for the person who _ 
_previously held the vacated position._ 
_Sec.__ __10.005.__ __ __PRESIDING OFFICER. __ __The council 
members shall _ 
_select one member as the presiding officer of the council to serve _ 
_in that capacity until the person's term as a council member _ 
_expires._ 
_Sec.__ __10.006.__ __ __COUNCIL STAFF. On request by the 
council, the _ 
_board shall provide any necessary staff to assist the council in the _ 
_performance of its duties._ 
_Sec.__ __10.007.__ __ __PUBLIC MEETINGS AND PUBLIC 
INFORMATION. _ 
_(a)__ __ __The council may hold public meetings as needed to fulfill 
its _ 
_duties under this chapter._ 
_(b)__ __ __The council is subject to Chapters 551 and 552, _ 
_Government Code._ 
_Sec.__ __10.008.__ __ __INAPPLICABILITY OF ADVISORY COMMITTEE 
LAW. __ _ 
_Chapter 2110, Government Code, does not apply to the size, _ 
_composition, or duration of the council._ 
_Sec.__ __10.009.__ __ __COMPENSATION OF MEMBERS. 
__ __(a)__ __ __Members of the _ 
_council serve without compensation but may be reimbursed by _ 
_legislative appropriation for actual and necessary expenses _ 
_related to the performance of council duties._ 
_(b)__ __ __Reimbursement under Subsection (a) is subject to 
the _ 
_approval of the presiding officer of the council._ 
_Sec.__ __10.010.__ __ __POWERS AND DUTIES OF COUNCIL. 
__ __The council _ 
_shall:_ 
_(1)__ __ __monitor trends in water conservation _ 
_implementation;_ 
_(2)__ __ __monitor new technologies for possible 
inclusion by _ 
_the board as best management practices in the best management _ 
_practices guide developed by the water conservation implementation _ 
_task force under Chapter 109, Acts of the 78th Legislature, Regular _ 
_Session, 2003;_ 
_(3)__ __ __monitor the effectiveness of the statewide 
water _ 
_conservation public awareness program developed under Section _ 
_16.401 and associated local involvement in implementation of the _ 
_program;_ 
_(4)__ __ __develop and implement a state water 
management _ 
_resource library;_ 
_(5)__ __ __develop and implement a public recognition 
program _ 
_for water conservation;_ 
_(6)__ __ __monitor the implementation of water 
conservation _ 
_strategies by water users included in regional water plans; and_ 
_(7)__ __ __monitor target and goal guidelines for water _ 
_conservation to be considered by the board and commission._ 
_Sec.__ __10.011.__ __ __REPORT. __ __Not later than December 
1 of each _ 
_even-numbered year, the council shall submit to the governor, _ 
_lieutenant governor, and speaker of the house of representatives a _ 
_report on progress made in water conservation in this state._ 
_Sec.__ __10.012.__ __ __DESIGNATION OF CERTIFIED WATER 
CONSERVATION _ 
_TRAINING FACILITIES STUDY. (a)__ __ __The council shall conduct a 
study _ 
_to evaluate the desirability of requiring the board to:_ 
_(1)__ __ __designate as certified water conservation _ 
_training facilities entities and programs that provide assistance _ 
_to retail public utilities in developing water conservation plans _ 
_under Section 13.146; and_ 
_(2)__ __ __give preference to certified water 
conservation _ 
_training facilities in making loans or grants for water _ 
_conservation training and education activities._ 
_(b)__ __ __Not later than December 1, 2008, the council shall _ 
_submit a written report containing the findings of the study and the _ 
_recommendations of the council to the governor, lieutenant _ 
_governor, and speaker of the house of representatives._ 
_(c)  This section expires June 1, 2009._ 
SECTION 2.04.  Section 11.002, Water Code, is amended by 
adding Subdivision (20) to read as follows: 
_(20)__ __ __"Best management practices" means those _ 
_voluntary efficiency measures developed by the commission and the _ 
_board that save a quantifiable amount of water, either directly or _ 
_indirectly, and that can be implemented within a specified time _ 
_frame._ 
SECTION 2.05.  Subdivisions (1-a), (5), and (8), Section 
13.002, Water Code, are amended to read as follows: 
(1-a)  "Landowner," "owner of a tract of land," and 
"owners of each tract of land" include multiple owners of a single 
deeded tract of land _as shown on the appraisal roll of the appraisal _ 
_district established for each county in which the property is _ 
_located_. 
(5)  "Commission" means the Texas [Natural Resource 
Conservation] Commission _on Environmental Quality_. 
(8)  "Executive director" means the executive director 
of the _commission_ [Texas Natural Resource Conservation 
Commission]. 
SECTION 2.06.  Subchapter E, Chapter 13, Water Code, is 
amended by adding Sections 13.146 and 13.147 to read as follows: 
_Sec.__ __13.146.__ __ __WATER CONSERVATION PLAN. __ __The 
commission shall _ 
_require a retail public utility that provides potable water service _ 
_to 3,300 or more connections to submit to the executive _ 
_administrator of the board a water conservation plan based on _ 
_specific targets and goals developed by the retail public utility _ 
_and using appropriate best management practices, as defined by _ 
_Section 11.002, or other water conservation strategies._ 
_Sec.__ __13.147.__ __ __CONSOLIDATED BILLING AND COLLECTION _ 
_CONTRACTS. (a)__ __ __A retail public utility providing water service _ 
_may contract with a retail public utility providing sewer service _ 
_to bill and collect the sewer service provider's fees and payments _ 
_as part of a consolidated process with the billing and collection of _ 
_the water service provider's fees and payments. __ __The water 
service _ 
_provider may provide that service only for customers who are served _ 
_by both providers in an area covered by both providers' _ 
_certificates of public convenience and necessity. __ __If the water _ 
_service provider refuses to enter into a contract under this _ 
_section or if the water service provider and sewer service provider _ 
_cannot agree on the terms of a contract, the sewer service provider _ 
_may petition the commission to issue an order requiring the water _ 
_service provider to provide that service._ 
_(b)__ __ __A contract or order under this section must provide _ 
_procedures and deadlines for submitting billing and customer _ 
_information to the water service provider and for the delivery of _ 
_collected fees and payments to the sewer service provider._ 
_(c)__ __ __A contract or order under this section may require 
or _ 
_permit a water service provider that provides consolidated billing _ 
_and collection of fees and payments to:_ 
_(1)__ __ __terminate the water services of a person 
whose _ 
_sewage services account is in arrears for nonpayment; and_ 
_(2)__ __ __charge a customer a reconnection fee if the _ 
_customer's water service is terminated for nonpayment of the _ 
_customer's sewage services account._ 
_(d)__ __ __A water service provider that provides consolidated _ 
_billing and collection of fees and payments may impose on each sewer _ 
_service provider customer a reasonable fee to recover costs _ 
_associated with providing consolidated billing and collection of _ 
_fees and payments for sewage services._ 
SECTION 2.07.  Subchapter F, Chapter 13, Water Code, is 
amended by adding Section 13.188 to read as follows: 
_Sec.__ __13.188.__ __ __ADJUSTMENT FOR CHANGE IN ENERGY 
COSTS. __ _ 
_(a)__ __ __Notwithstanding any other provision in this chapter, the _ 
_commission by rule shall adopt a procedure allowing a utility to _ 
_file with the commission an application to timely adjust the _ 
_utility's rates to reflect an increase or decrease in documented _ 
_energy costs in a pass through clause. __ __The commission, by rule, _ 
_shall require the pass through of documented decreases in energy _ 
_costs within a reasonable time. __ __The pass through, whether a _ 
_decrease or increase, shall be implemented on no later than an _ 
_annual basis, unless the commission determines a special _ 
_circumstance applies._ 
_(b)__ __ __Notwithstanding any other provision to the 
contrary, _ 
_this adjustment is an uncontested matter not subject to a contested _ 
_case hearing. __ __However, the executive director shall hold an _ 
_uncontested public meeting:_ 
_(1)__ __ __on the request of a member of the 
legislature who _ 
_represents the area served by the water and sewer utility; or_ 
_(2)__ __ __if the executive director determines that 
there is _ 
_substantial public interest in the matter._ 
_(c)__ __ __A proceeding under this section is not a rate case 
and _ 
_Section 13.187 does not apply._ 
SECTION 2.08.  Section 13.2451, Water Code, is amended to 
read as follows: 
Sec. 13.2451.  EXTENSION BEYOND EXTRATERRITORIAL 
JURISDICTION.  (a)  _If_ [Except as provided by Subsection (b), if] a 
municipality extends its extraterritorial jurisdiction to include 
an area certificated to a retail public utility, the retail public 
utility may continue and extend service in its area of public 
convenience and necessity under the rights granted by its 
certificate and this chapter. 
(b)  _A municipality that seeks to extend a certificate of _ 
_public convenience and necessity beyond the municipality's _ 
_extraterritorial jurisdiction must ensure that the municipality _ 
_complies with Section 13.241 in relation to the area covered by the _ 
_portion of the certificate that extends beyond the municipality's _ 
_extraterritorial jurisdiction._ 
_(c)__ __ __The commission, after notice to the municipality 
and an _ 
_opportunity for a hearing, may decertify an area outside a _ 
_municipality's extraterritorial jurisdiction if the municipality _ 
_does not provide service to the area on or before the fifth _ 
_anniversary of the date the certificate of public convenience and _ 
_necessity was granted for the area. __ __This subsection does not 
apply _ 
_to a certificate of public convenience and necessity for an area:_ 
_(1)__ __ __that was transferred to a municipality on 
approval _ 
_of the commission; and_ 
_(2)__ __ __in relation to which the municipality has 
spent _ 
_public funds._ 
_(d)__ __ __To the extent of a conflict between this section 
and _ 
_Section 13.245, Section 13.245 prevails_ [The commission may not 
extend a municipality's certificate of public convenience and 
necessity beyond its extraterritorial jurisdiction without the 
written consent of the landowner who owns the property in which the 
certificate is to be extended. The portion of any certificate of 
public convenience and necessity that extends beyond the 
extraterritorial jurisdiction of the municipality without the 
consent of the landowner is void]. 
SECTION 2.09.  Subsection (a-1), Section 13.246, Water Code, 
is amended to read as follows: 
(a-1)  Except as otherwise provided by this subsection, in 
addition to the notice required by Subsection (a), the commission 
shall require notice to be mailed to each owner of a tract of land 
that is at least _25_ [50] acres and is wholly or partially included 
in the area proposed to be certified. Notice required under this 
subsection must be mailed by first class mail to the owner of the 
tract according to the most current tax appraisal rolls of the 
applicable central appraisal district at the time the commission 
received the application for the certificate or amendment. Good 
faith efforts to comply with the requirements of this subsection 
shall be considered adequate notice to landowners. Notice under 
this subsection is not required for a matter filed with the 
commission under: 
(1)  Section 13.248 or 13.255; or 
(2)  Chapter 65. 
SECTION 2.10.  Subsection (b), Section 15.102, Water Code, 
is amended to read as follows: 
(b)  The loan fund may also be used by the board to provide: 
(1)  grants or loans for projects that include 
supplying water and wastewater services in economically distressed 
areas or nonborder colonias as provided by legislative 
appropriations, this chapter, and board rules, including projects 
involving retail distribution of those services; and 
(2)  grants for: 
(A)  projects for which federal grant funds are 
placed in the loan fund; 
(B)  projects, on specific legislative 
appropriation for those projects; or 
(C)  _water conservation,_ desalination, brush 
control, weather modification, regionalization, and projects 
providing regional water quality enhancement services as defined by 
board rule, including regional conveyance systems. 
SECTION 2.11.  Subchapter Q, Chapter 15, Water Code, is 
amended by adding Section 15.9751 to read as follows: 
_Sec.__ __15.9751.__ __ __PRIORITY FOR WATER CONSERVATION. 
__ __The board _ 
_shall give priority to applications for funds for the _ 
_implementation of water supply projects in the state water plan by _ 
_entities that:_ 
_(1)__ __ __have already demonstrated significant water _ 
_conservation savings; or_ 
_(2)__ __ __will achieve significant water conservation _ 
_savings by implementing the proposed project for which the _ 
_financial assistance is sought._ 
SECTION 2.12.  Section 16.017, Water Code, is amended to 
read as follows: 
Sec. 16.017.  TOPOGRAPHIC AND GEOLOGIC MAPPING.  _(a)_  The 
executive administrator shall carry out the program for topographic 
and geologic mapping of the state. 
_(b)__ __ __The executive administrator shall operate as part 
of the _ 
_Texas Natural Resources Information System a strategic mapping _ 
_program to acquire, store, and distribute digital, geospatial _ 
_information._ 
SECTION 2.13.  Subchapter B, Chapter 16, Water Code, is 
amended by adding Sections 16.023 and 16.024 to read as follows: 
_Sec.__ __16.023.__ __ __STRATEGIC MAPPING ACCOUNT. 
(a)__ __ __The strategic _ 
_mapping account is an account in the general revenue fund. __ __The _ 
_account consists of:_ 
_(1)  money directly appropriated to the board;_ 
_(2)__ __ __money transferred by the board from other 
funds _ 
_available to the board;_ 
_(3)__ __ __money from gifts or grants from the United 
States _ 
_government, state, regional, or local governments, educational _ 
_institutions, private sources, or other sources;_ 
_(4)__ __ __proceeds from the sale of maps, data, _ 
_publications, and other items; and_ 
_(5)__ __ __interest earned on the investment of money 
in the _ 
_account and depository interest allocable to the account._ 
_(b)  The account may be appropriated only to the board to:_ 
_(1)__ __ __develop, administer, and implement the 
strategic _ 
_mapping program;_ 
_(2)__ __ __provide grants to political subdivisions for _ 
_projects related to the development, use, and dissemination of _ 
_digital, geospatial information; and_ 
_(3)__ __ __administer, implement, and operate other 
programs _ 
_of the Texas Natural Resources Information System, including:_ 
_(A)__ __ __the operation of a Texas-Mexico border 
region _ 
_information center for the purpose of implementing Section 16.021 _ 
_(e)(5);_ 
_(B)__ __ __the acquisition, storage, and 
distribution _ 
_of historical maps, photographs, and paper map products;_ 
_(C)__ __ __the maintenance and enhancement of _ 
_information technology; and_ 
_(D)__ __ __the production, storage, and 
distribution of _ 
_other digital base maps, as determined by the executive _ 
_administrator or a state agency that is a member of the Texas _ 
_Geographic Information Council._ 
_(c)__ __ __The board may invest, reinvest, and direct the _ 
_investment of any available money in the fund as provided by law for _ 
_the investment of money under Section 404.024, Government Code._ 
_Sec.__ __16.024.__ __ __FINANCIAL ASSISTANCE FOR DIGITAL, 
GEOSPATIAL _ 
_INFORMATION PROJECTS. (a)__ __ __A political subdivision seeking a 
grant _ 
_under Section 16.023 must file an application with the board._ 
_(b)__ __ __An application must be filed in the manner and form _ 
_required by board rules._ 
_(c)__ __ __In reviewing an application by a political 
subdivision _ 
_for a grant, the board shall consider:_ 
_(1)__ __ __the degree to which the political 
subdivision has _ 
_used other available resources to finance the development, use, and _ 
_dissemination of digital, geospatial information;_ 
_(2)__ __ __the willingness and ability of the political _ 
_subdivision to develop, use, and disseminate digital, geospatial _ 
_information; and_ 
_(3)__ __ __the benefits that will be gained by making 
the _ 
_grant._ 
_(d)__ __ __The board may approve a grant to a political 
subdivision _ 
_only if the board finds that:_ 
_(1)__ __ __the grant will supplement rather than replace _ 
_money of the political subdivision;_ 
_(2)__ __ __the public interest is served by providing 
the _ 
_grant; and_ 
_(3)__ __ __the grant will further the state's ability to _ 
_gather, develop, use, and disseminate digital, geospatial _ 
_information._ 
SECTION 2.14.  Subsection (h), Section 16.053, Water Code, 
is amended by adding Subdivisions (10) and (11) to read as follows: 
_(10)__ __ __The regional water planning group may amend 
the _ 
_regional water plan after the plan has been approved by the board. _ 
_Subdivisions (1)-(9) apply to an amendment to the plan in the same _ 
_manner as those subdivisions apply to the plan._ 
_(11)__ __ __This subdivision applies only to an 
amendment to _ 
_a regional water plan approved by the board. __ __This subdivision 
does _ 
_not apply to the adoption of a subsequent regional water plan for _ 
_submission to the board as required by Subsection (i). _ 
_Notwithstanding Subdivision (10), the regional water planning _ 
_group may amend the plan in the manner provided by this subdivision _ 
_if the executive administrator makes a written determination that _ 
_the proposed amendment qualifies for adoption in the manner _ 
_provided by this subdivision before the regional water planning _ 
_group votes on adoption of the amendment. A proposed amendment _ 
_qualifies for adoption in the manner provided by this subdivision _ 
_only if the amendment is a minor amendment, as defined by board _ 
_rules, that will not result in the overallocation of any existing or _ 
_planned source of water, does not relate to a new reservoir, and _ 
_will not have a significant effect on instream flows or freshwater _ 
_inflows to bays and estuaries. If the executive administrator _ 
_determines that a proposed amendment qualifies for adoption in the _ 
_manner provided by this subdivision, the regional water planning _ 
_group may adopt the amendment at a public meeting held in accordance _ 
_with Chapter 551, Government Code. The proposed amendment must be _ 
_placed on the agenda for the meeting, and notice of the meeting must _ 
_be given in the manner provided by Chapter 551, Government Code, at _ 
_least two weeks before the date the meeting is held. The public _ 
_must be provided an opportunity to comment on the proposed _ 
_amendment at the meeting._ 
SECTION 2.15.  Subsection (r), Section 16.053, Water Code, 
as added by Chapter 1097, Acts of the 79th Legislature, Regular 
Session, 2005, is amended to read as follows: 
(r)  The board by rule shall provide for reasonable 
flexibility to allow for a timely amendment of a regional water 
plan, the board's approval of an amended regional water plan, and 
the amendment of the state water plan_. __ __If an amendment under 
this _ 
_subsection is_[,] to facilitate planning for water supplies 
reasonably required for a clean coal project, as defined by Section 
5.001_, the_[.  The] rules may allow for amending a regional water 
plan without providing notice and without a public meeting or 
hearing under Subsection (h) if the amendment does not: 
(1)  significantly change the regional water plan, as 
reasonably determined by the board; or 
(2)  adversely affect other water management 
strategies in the regional water plan. 
SECTION 2.16.  Subchapter E, Chapter 16, Water Code, is 
amended by adding Section 16.1311 to read as follows: 
_Sec.__ __16.1311.__ __ __PRIORITY FOR WATER CONSERVATION. 
__ __The board _ 
_shall give priority to applications for funds for implementation of _ 
_water supply projects in the state water plan by entities that:_ 
_(1)__ __ __have already demonstrated significant water _ 
_conservation savings; or_ 
_(2)__ __ __will achieve significant water conservation _ 
_savings by implementing the proposed project for which the _ 
_financial assistance is sought._ 
SECTION 2.17.  Sections 16.315 and 16.319, Water Code, are 
amended to read as follows: 
Sec. 16.315.  POLITICAL SUBDIVISIONS; COMPLIANCE WITH 
FEDERAL REQUIREMENTS. All political subdivisions are hereby 
authorized to take all necessary and reasonable actions _that are _ 
_not less stringent than_ [to comply with] the requirements and 
criteria of the National Flood Insurance Program, including but not 
limited to: 
(1)  making appropriate land use adjustments to 
constrict the development of land which is exposed to flood damage 
and minimize damage caused by flood losses; 
(2)  guiding the development of proposed future 
construction, where practicable, away from a location which is 
threatened by flood hazards; 
(3)  assisting in minimizing damage caused by floods; 
(4)  authorizing and engaging in continuing studies of 
flood hazards in order to facilitate a constant reappraisal of the 
flood insurance program and its effect on land use requirements; 
(5)  engaging in floodplain management_,_ [and] adopting 
and enforcing permanent land use and control measures _that are not _ 
_less stringent than those_ [consistent with the criteria] 
established under the National Flood Insurance Act_, and providing _ 
_for the imposition of penalties on landowners who violate this _ 
_subchapter or rules adopted or orders issued under this subchapter_; 
(6)  declaring property, when such is the case, to be in 
violation of local laws, regulations, or ordinances which are 
intended to discourage or otherwise restrict land development or 
occupancy in flood-prone areas and notifying the director, or 
whomever the director designates, of such property; 
(7)  consulting with, giving information to, and 
entering into agreements with the Federal Emergency Management 
Agency for the purpose of: 
(A)  identifying and publishing information with 
respect to all flood areas, including coastal areas; and 
(B)  establishing flood-risk zones in all such 
areas and making estimates with respect to the rates of probable 
flood-caused loss for the various flood-risk zones for each of 
these areas; 
(8)  cooperating with the director's studies and 
investigations with respect to the adequacy of local measures in 
flood-prone areas as to land management and use, flood control, 
flood zoning, and flood damage prevention; 
(9)  taking steps, using regional, watershed, and 
multi-objective approaches, to improve the long-range management 
and use of flood-prone areas; 
(10)  purchasing, leasing, and receiving property from 
the director when such property is owned by the federal government 
and lies within the boundaries of the political subdivision 
pursuant to agreements with the Federal Emergency Management Agency 
or other appropriate legal representative of the United States 
Government; 
(11)  requesting aid pursuant to the entire 
authorization from the commission; 
(12)  satisfying criteria adopted and promulgated by 
the commission pursuant to the National Flood Insurance Program; 
(13)  adopting permanent land use and control measures 
with enforcement provisions _that are not less stringent than_ [which 
are consistent with] the criteria for land management and use 
adopted by the director; 
(14)  adopting more comprehensive floodplain 
management rules that the political subdivision determines are 
necessary for planning and appropriate to protect public health and 
safety; 
(15)  participating in floodplain management and 
mitigation initiatives such as the National Flood Insurance 
Program's Community Rating System, Project Impact, or other 
initiatives developed by federal, state, or local government; and 
(16)  collecting reasonable fees to cover the cost of 
administering a local floodplain management program. 
Sec. 16.319.  QUALIFICATION. Political subdivisions 
wishing to qualify under the National Flood Insurance Program shall 
have the authority to do so by complying with the directions of the 
Federal Emergency Management Agency and by: 
(1)  evidencing to the director a positive interest in 
securing flood insurance coverage under the National Flood 
Insurance Program; and 
(2)  giving to the director satisfactory assurance that 
measures will have been adopted for the political subdivision _that_ 
[which measures] will be _not less stringent than_ [consistent with] 
the comprehensive criteria for land management and use developed by 
the Federal Emergency Management Agency. 
SECTION 2.18.  Chapter 16, Water Code, is amended by adding 
Subchapter K to read as follows: 
_SUBCHAPTER K. WATER CONSERVATION_ 
_Sec.__ __16.401.__ __ __STATEWIDE WATER CONSERVATION PUBLIC 
AWARENESS _ 
_PROGRAM. __ __(a)__ __ __The executive administrator shall develop 
and _ 
_implement a statewide water conservation public awareness program _ 
_to educate residents of this state about water conservation. The _ 
_program shall take into account the differences in water _ 
_conservation needs of various geographic regions of the state and _ 
_shall be designed to complement and support existing local and _ 
_regional water conservation programs._ 
_(b)__ __ __The executive administrator is required to develop 
and _ 
_implement the program required by Subsection (a) in a state fiscal _ 
_biennium only if the legislature appropriates sufficient money in _ 
_that biennium specifically for that purpose._ 
_Sec.__ __16.402.__ __ __WATER CONSERVATION PLAN REVIEW. 
(a)__ __ __Each _ 
_entity that is required to submit a water conservation plan to the _ 
_commission under this code shall submit a copy of the plan to the _ 
_executive administrator._ 
_(b)__ __ __Each entity that is required to submit a water _ 
_conservation plan to the executive administrator, board, or _ 
_commission under this code shall report annually to the executive _ 
_administrator on the entity's progress in implementing the plan._ 
_(c)__ __ __The executive administrator shall review each water _ 
_conservation plan and annual report to determine compliance with _ 
_the minimum requirements established by Section 11.1271 and the _ 
_submission deadlines developed under Subsection (e) of this _ 
_section._ 
_(d)__ __ __The board may notify the commission if the board _ 
_determines that an entity has violated this section or a rule _ 
_adopted under this section. __ __Notwithstanding Section 7.051(b), a _ 
_violation of this section or of a rule adopted under this section is _ 
_enforceable in the manner provided by Chapter 7 for a violation of a _ 
_provision of this code within the commission's jurisdiction or of a _ 
_rule adopted by the commission under a provision of this code within _ 
_the commission's jurisdiction._ 
_(e)  The board and commission jointly shall adopt rules:_ 
_(1)__ __ __identifying the minimum requirements and _ 
_submission deadlines for the annual reports required by Subsection _ 
_(b); and_ 
_(2)__ __ __providing for the enforcement of this 
section and _ 
_rules adopted under this section._ 
SECTION 2.19.  Section 17.125, Water Code, is amended by 
adding Subsection (b-2) to read as follows: 
_(b-2)__ __ __The board shall give priority to applications for _ 
_funds for implementation of water supply projects in the state _ 
_water plan by entities that:_ 
_(1)__ __ __have already demonstrated significant water _ 
_conservation savings; or_ 
_(2)__ __ __will achieve significant water conservation _ 
_savings by implementing the proposed project for which the _ 
_financial assistance is sought._ 
SECTION 2.20.  Chapter 35, Water Code, is amended by adding 
Section 35.020 to read as follows: 
_Sec.__ __35.020.__ __ __PUBLIC PARTICIPATION IN GROUNDWATER _ 
_MANAGEMENT PROCESS. __ __It is the policy of the state to encourage _ 
_public participation in the groundwater management process in areas _ 
_within a groundwater management area not represented by a _ 
_groundwater conservation district._ 
SECTION 2.21.  Subsection (d), Section 36.113, Water Code, 
is amended to read as follows: 
(d)  Before granting or denying a permit or permit amendment, 
the district shall consider whether: 
(1)  the application conforms to the requirements 
prescribed by this chapter and is accompanied by the prescribed 
fees; 
(2)  the proposed use of water unreasonably affects 
existing groundwater and surface water resources or existing permit 
holders; 
(3)  the proposed use of water is dedicated to any 
beneficial use; 
(4)  the proposed use of water is consistent with the 
district's certified water management plan; 
(5)  _if the well will be located in the Hill Country _ 
_Priority Groundwater Management Area, the proposed use of water _ 
_from the well is wholly or partly to provide water to a pond, lake, _ 
_or reservoir to enhance the appearance of the landscape;_ 
_(6)_  the applicant has agreed to avoid waste and 
achieve water conservation; and 
_(7)_ [(6)]  the applicant has agreed that reasonable 
diligence will be used to protect groundwater quality and that the 
applicant will follow well plugging guidelines at the time of well 
closure. 
SECTION 2.22.  Subsection (d), Section 36.117, Water Code, 
is amended to read as follows: 
(d)  Notwithstanding Subsection (b), a district may require 
a well to be permitted by the district and to comply with all 
district rules if: 
(1)  _the withdrawals from a well in the Hill Country _ 
_Priority Groundwater Management Area and exempted under Subsection _ 
_(b)(1) are no longer used solely for domestic use or to provide _ 
_water for livestock or poultry;_ 
_(2)_  the purpose of a well exempted under Subsection 
(b)(2) is no longer solely to supply water for a rig that is 
actively engaged in drilling or exploration operations for an oil 
or gas well permitted by the Railroad Commission of Texas; or 
_(3)_ [(2)]  the withdrawals from a well exempted under 
Subsection (b)(3) are no longer necessary for mining activities or 
are greater than the amount necessary for mining activities 
specified in the permit issued by the Railroad Commission of Texas 
under Chapter 134, Natural Resources Code. 
SECTION 2.23.  Subchapter H, Chapter 49, Water Code, is 
amended by adding Section 49.2205 to read as follows: 
_Sec.__ __49.2205.__ __ __USE OF RIGHT-OF-WAY EASEMENTS FOR 
CERTAIN _ 
_ENERGY-RELATED PURPOSES. (a)__ __ __To foster the generation and _ 
_transmission of electricity from clean coal projects, as defined by _ 
_Section 5.001, renewable energy technology projects, and the _ 
_capture and storage of carbon dioxide and other greenhouse gases, a _ 
_district or water supply corporation may allow others to construct, _ 
_maintain, and operate transmission lines and pipelines over, under, _ 
_across, on, or along rights-of-way and easements of the district or _ 
_water supply corporation for transmission of electricity generated _ 
_by those projects and the transportation of carbon dioxide and _ 
_other greenhouse gases, unless the use:_ 
_(1)__ __ __is incompatible with the public use for 
which the _ 
_easement was acquired or condemned; or_ 
_(2)  compromises public health or safety._ 
_(b)__ __ __The district or water supply corporation is not 
required _ 
_to obtain additional consideration for the construction, _ 
_maintenance, and operation of the transmission lines and pipelines _ 
_under this section if the person constructing, maintaining, and _ 
_operating the transmission lines and pipelines bears all costs of _ 
_the construction, maintenance, and operation of the transmission _ 
_lines and pipelines and restoring the property. The activities _ 
_authorized by this subsection may be exercised only with the _ 
_consent of and subject to the direction of the governing body of the _ 
_district or water supply corporation._ 
_(c)__ __ __A person that is subject to Subsection (a) that 
acquires _ 
_a right-of-way easement on real property for a public use may _ 
_include in the notice of the acquisition a statement that to foster _ 
_the generation and transmission of electricity from clean coal _ 
_projects as defined by Section 5.001, Water Code, renewable energy _ 
_technology projects, and the capture and storage of carbon dioxide _ 
_and other greenhouse gases, water districts and water supply _ 
_corporations may allow others to construct, maintain, and operate _ 
_transmission lines and pipelines over, under, across, on, or along _ 
_the rights-of-way and easements for the transmission of electricity _ 
_that is generated by those projects and transportation of carbon _ 
_dioxide and other greenhouse gases, unless the use:_ 
_(1)__ __ __is incompatible with the public use for 
which the _ 
_easement was acquired or condemned; or_ 
_(2)  compromises public health or safety._ 
_(d)__ __ __This section applies only to a right-of-way or 
easement _ 
_acquired by the district or water supply corporation on or after _ 
_September 1, 2007._ 
_(e)__ __ __This section does not apply to a right-of-way or _ 
_easement that is used for the transmission of electricity without _ 
_the consent of a person owning the transmission lines if that use _ 
_began before September 1, 2007._ 
SECTION 2.24.  Chapter 49, Water Code, is amended by adding 
Subchapter O to read as follows: 
_SUBCHAPTER O. __ __EFFECT OF SUBDIVISION OF NONAGRICULTURAL LAND ON _ 
_WATER RIGHTS_ 
_Sec.__ __49.501.__ __ __DEFINITION. __ __In this subchapter, 
"municipal _ 
_water supplier"__ __means a municipality or a water supply 
corporation._ 
_Sec.__ __49.502.__ __ __APPLICABILITY. __ __This subchapter 
applies only _ 
_to a district, other than a drainage district, located wholly or _ 
_partly in a county:_ 
_(1)__ __ __that borders the Gulf of Mexico and the 
United _ 
_Mexican States; or_ 
_(2)__ __ __that is adjacent to a county described by _ 
_Subdivision (1)._ 
_Sec.__ __49.503.__ __ __PETITION BY MUNICIPAL WATER SUPPLIER 
TO _ 
_CONVERT WATER USE AFTER SUBDIVISION. __ __(a)__ __ __This section 
applies _ 
_only to land:_ 
_(1)  that is:_ 
_(A)__ __ __subdivided into town lots or blocks or 
small _ 
_parcels of the same general nature as town lots or blocks;_ 
_(B)__ __ __designed, intended, or suitable for _ 
_residential or other nonagricultural purposes, including streets, _ 
_alleys, parkways, parks, detention or retention ponds, and railroad _ 
_property and rights-of-way; or_ 
_(C)__ __ __in a subdivision created to meet the _ 
_requirements of a governmental entity authorized to require a _ 
_recorded plat of subdivided lands;_ 
_(2)__ __ __that is in a subdivision for which a plat or 
map _ 
_has been filed and recorded in the office of the county clerk of _ 
_each county in which the subdivision is wholly or partly located; _ 
_and_ 
_(3)__ __ __that is or was assessed as flat rate 
irrigable _ 
_property in the municipal water supplier's certificated service _ 
_area or its corporate area._ 
_(b)__ __ __A municipal water supplier that serves land 
described by _ 
_Subsection (a) may petition the district in accordance with this _ 
_section to convert the proportionate irrigation water right to the _ 
_Rio Grande from irrigation use to municipal use with municipal _ 
_priority of allocation under commission rules, for the use and _ 
_benefit of the municipal water supplier._ 
_(c)__ __ __The municipal water supplier must file the 
petition with _ 
_the district not later than January 1 after the expiration of two _ 
_years after the date the plat or map was recorded under Subsection _ 
_(a). __ __The district shall consider the petition not later than _ 
_January 31 of the year following the year in which the petition was _ 
_filed._ 
_(d)__ __ __The petition must identify by subdivision name or 
other _ 
_sufficient description the land that the municipal water supplier _ 
_supplies or has the right to supply potable water._ 
_(e)__ __ __This section applies only to one subdivision of 
the land _ 
_recorded under Subsection (a). __ __This section does not apply to 
any _ 
_further subdivision of the same property._ 
_Sec.__ __49.504.__ __ __EFFECT OF MUNICIPAL WATER SUPPLIER'S 
FAILURE _ 
_TO FILE A PETITION. __ __(a)__ __ __If a municipal water supplier 
does not _ 
_file a petition under Section 49.503, the district may retain the _ 
_water rights for use by the district or may declare the water as _ 
_excess and contract for the sale or use of the water as determined _ 
_by the district._ 
_(b)__ __ __Before a district may contract for the sale or use 
of _ 
_water for more than one year with a purchaser located outside of a _ 
_county described by Section 49.502, the district must, for 90 days:_ 
_(1)__ __ __make the water available under the same 
terms to _ 
_all municipal water suppliers located in those counties; and_ 
_(2)__ __ __advertise the offer to sell or contract for 
the use _ 
_of the water by posting notice on:_ 
_(A)__ __ __any website of the Rio Grande 
Watermaster's _ 
_Office;_ 
_(B)__ __ __any website of the Rio Grande Regional 
Water _ 
_Authority; and_ 
_(C)__ __ __the official posting place for the 
district's _ 
_board meetings at the district's office._ 
_(c)__ __ __If, after the 90th day after the last date on 
which the _ 
_district posted notice, a municipal water supplier in a county _ 
_described by Section 49.502 has not contracted with the district _ 
_for the sale or use of the water, the district may contract with any _ 
_other person for the sale or use of the water under the terms of the _ 
_offer advertised under Subsection (b)._ 
_Sec.__ __49.505.__ __ __CALCULATION OF PROPORTIONATE WATER 
RIGHTS. __ __A _ 
_district that receives a petition under Section 49.503 shall _ 
_compute the proportionate amount of water rights to the Rio Grande. 
__ _ 
_The proportionate amount of water rights is equal to the amount of _ 
_irrigable acres of land in the subdivision multiplied by the lesser _ 
_of:_ 
_(1)  1.25 acre-feet per irrigable acre; or_ 
_(2)__ __ __the sum of all irrigation water rights owned 
by the _ 
_district on September 1, 2007, as if the water rights had been _ 
_converted to municipal use under applicable commission rules, _ 
_divided by the total amount of irrigable acres of land in the _ 
_district on September 1, 2007._ 
_Sec.__ __49.506.__ __ __PROVISION OR CONVERSION OF 
PROPORTIONATE WATER _ 
_RIGHTS BY DISTRICT. __ __(a)__ __ __Not later than the second 
anniversary of _ 
_the date the municipal water supplier files a petition under _ 
_Section 49.503:_ 
_(1)__ __ __a district shall provide the municipal water _ 
_supplier with the proportionate water rights described by Section _ 
_49.505 from the district's existing water rights; or_ 
_(2)__ __ __a district shall, if the district does not 
have _ 
_sufficient existing water rights:_ 
_(A)__ __ __apply for appropriate amendments to the _ 
_district's water rights under commission rules to convert the _ 
_proportionate water rights from irrigation use to municipal use _ 
_with municipal priority of allocation; and_ 
_(B)__ __ __provide to the municipal water 
supplier the _ 
_converted rights described by Section 49.505._ 
_(b)__ __ __The district may continue to use the irrigation use _ 
_water for district purposes until:_ 
_(1)__ __ __the commission approves the amendment to the _ 
_district's water rights; or_ 
_(2)__ __ __the water is otherwise provided to the 
municipal _ 
_water supplier._ 
_(c)__ __ __A district that applies for appropriate amendments _ 
_under Subsection (a)(2) shall provide the municipal water supplier _ 
_with an estimate of the district's reasonable costs for the _ 
_administrative proceedings. __ __The district is not required to 
begin _ 
_the proceedings until the municipal water supplier deposits the _ 
_amount of the estimate with the district. __ __The municipal water _ 
_supplier shall pay the district any reasonable costs that exceed _ 
_the estimate. __ __The district shall refund the balance of the 
deposit _ 
_if the actual cost is less than the estimate._ 
_Sec.__ __49.507.__ __ __CONTRACT TO PURCHASE PROPORTIONATE 
WATER _ 
_RIGHTS; WATER RIGHTS SALE CONTRACT. __ __(a)__ __ __A municipal water _ 
_supplier may contract to purchase the proportionate water rights _ 
_described by Section 49.505._ 
_(b)__ __ __The purchase price may not exceed 68 percent of the _ 
_current market value, as determined under Section 49.509, for the _ 
_year that the municipal water supplier petitions the district._ 
_(c)__ __ __The contract must be in writing in a document 
entitled _ 
_"Water Rights Sales Contract."_ 
_(d)__ __ __The contract must include the purchase price for 
the _ 
_water rights or, if the consideration for the sale is not monetary, _ 
_the terms of the sale._ 
_(e)__ __ __The municipal water supplier shall file the 
contract _ 
_with the Rio Grande watermaster not later than the 10th day after _ 
_the date the contract is executed._ 
_(f)__ __ __The municipal water supplier shall pay the purchase _ 
_price when the proportionate amount of water rights is made _ 
_available to the municipal water supplier._ 
_Sec.__ __49.508.__ __ __CONTRACT TO USE PROPORTIONATE WATER 
RIGHTS; _ 
_WATER SUPPLY CONTRACT. __ __(a)__ __ __A municipal water supplier may _ 
_contract to use water associated with the proportionate water _ 
_rights described by Section 49.505._ 
_(b)  The contract must be for at least 40 years._ 
_(c)__ __ __The price for the contractual right to use the 
municipal _ 
_use water is based on an amount for one acre-foot of municipal use _ 
_water with a municipal use priority of allocation and may not exceed _ 
_the sum of:_ 
_(1)__ __ __an amount equal to the district's annual 
flat rate _ 
_charge per assessed acre; and_ 
_(2)__ __ __the equivalent of the charge for four 
irrigations _ 
_per flat rate acre of irrigable property in the district._ 
_(d)__ __ __The parties to the contract shall agree on the 
terms of _ 
_payment of the contract price._ 
_(e)__ __ __The board periodically shall determine the flat 
rate _ 
_charge and irrigation per acre charge described by Subsection (c)._ 
_(f)__ __ __The contract must be in writing in a document 
entitled _ 
_"Water Supply Contract."__ __ __The contract may contain any terms to _ 
_which the parties agree._ 
_(g)__ __ __The municipal water supplier shall file the 
contract _ 
_with the Rio Grande watermaster not later than the 10th day after _ 
_the date the contract is executed._ 
_Sec.__ __49.509.__ __ __DUTY OF RIO GRANDE REGIONAL WATER 
AUTHORITY TO _ 
_CALCULATE CURRENT MARKET VALUE. __ __(a)__ __ __The Rio Grande 
Regional Water _ 
_Authority annually at its January meeting shall calculate the _ 
_current market value by using the average price per acre-foot of _ 
_municipal use water after conversion from irrigation use water to _ 
_municipal use water with a municipal priority of allocation under _ 
_commission rules of the last three purchases involving:_ 
_(1)  a municipal water supplier;_ 
_(2)  a party other than a municipal water supplier; and_ 
_(3)__ __ __at least 100 acre-feet of municipal use 
water, _ 
_with municipal priority of allocation._ 
_(b)__ __ __The Rio Grande Regional Water Authority shall use _ 
_information from the water rights sales contracts reported to the _ 
_Rio Grande Watermaster's Office to calculate the current market _ 
_value._ 
_(c)__ __ __The Rio Grande Regional Water Authority shall make 
the _ 
_calculation:_ 
_(1)  without charging any of the parties involved; and_ 
_(2)__ __ __using 100 percent of the value of monetary _ 
_exchanges, not in-kind exchanges._ 
_Sec.__ __49.510.__ __ __ACCOUNTING FOR SALE OF WATER RIGHTS. 
__ __A _ 
_district shall maintain an accounting of money received from the _ 
_sale of water rights under this subchapter._ 
_Sec.__ __49.511.__ __ __CAPITAL IMPROVEMENTS. __ __A district 
shall _ 
_designate at least 75 percent of the proceeds from the sale of water _ 
_rights for capital improvements in the district._ 
_Sec.__ __49.512.__ __ __MAP OF SERVICE AREA. 
__ __(a)__ __ __In this section, _ 
_"outer boundaries of a district"__ __means district boundaries 
without _ 
_considering any exclusion of land from inside the district._ 
_(b)__ __ __Each municipal water supplier that has a 
certificate of _ 
_convenience and necessity service area in the outer boundaries of a _ 
_district shall file a map of the service area with the district._ 
_(c)__ __ __The municipal water supplier shall update the map 
and _ 
_forward the map to the district when changes are made._ 
_(d)__ __ __A district periodically shall provide to a 
municipal _ 
_water supplier that serves territory in the district a copy of the _ 
_district's map showing the outer boundaries of the district._ 
_(e)__ __ __A district may request from a municipal water 
supplier a _ 
_map of the municipal water supplier's service area, and a municipal _ 
_water supplier may request from the district a map of the district's _ 
_outer boundaries. __ __On request, the district and a municipal water _ 
_supplier shall provide the map free of charge to each other at least _ 
_one time each year. __ __If the district or municipal water supplier _ 
_receives more than one request a year for a map, the district or _ 
_municipal water supplier may charge a reasonable fee for the map._ 
SECTION 2.25.  Subchapter Z, Chapter 51, Education Code, is 
amended by adding Section 51.969 to read as follows: 
_Sec.__ __51.969.__ __ __ON-SITE RECLAIMED SYSTEM TECHNOLOGIES _ 
_CURRICULUM. The Texas Higher Education Coordinating Board shall _ 
_encourage each institution of higher education to develop _ 
_curriculum and provide related instruction regarding on-site _ 
_reclaimed system technologies, including rainwater harvesting, _ 
_condensate collection, or cooling tower blow down._ 
SECTION 2.26.  Chapter 68, Education Code, is amended by 
adding Subchapter B to read as follows: 
_SUBCHAPTER B. __ __POWERS AND DUTIES OF BOARD_ 
_Sec.__ __68.21.__ __ __SUSTAINABLE WATER SUPPLY RESEARCH 
CENTER. __ _ 
_(a)__ __ __In this section, "center" means the Sustainable Water 
Supply _ 
_Research Center._ 
_(b)__ __ __The board may establish and operate the Sustainable _ 
_Water Supply Research Center as part of The University of Texas at _ 
_Arlington._ 
_(c)  If established, the center shall:_ 
_(1)__ __ __conduct, sponsor, or direct multidisciplinary _ 
_research directed toward:_ 
_(A)__ __ __promoting water conservation through _ 
_development of a sustainable water supply for this state; and_ 
_(B)__ __ __mitigating the effect of diminishing 
water _ 
_supplies on the economy and people of this state; and_ 
_(2)__ __ __conduct a comprehensive, interdisciplinary _ 
_instructional program in water conservation with emphasis on _ 
_development of a sustainable water supply at the graduate level and _ 
_offer undergraduate courses for students interested in water _ 
_conservation and sustainable water supply development._ 
_(d)__ __ __The organization, control, and management of the 
center _ 
_are vested in the board._ 
_(e)__ __ __The center may enter into an agreement or may 
cooperate _ 
_with a public or private entity to perform the research functions of _ 
_the center._ 
_(f)__ __ __The board may solicit, accept, and administer 
gifts and _ 
_grants from any public or private source for the use and benefit of _ 
_the center._ 
SECTION 2.27.  Section 447.004, Government Code, is amended 
by adding Subsection (c-1) to read as follows: 
_(c-1)__ __ __The procedural standards adopted under this 
section _ 
_must require that on-site reclaimed system technologies, including _ 
_rainwater harvesting, condensate collection, or cooling tower blow _ 
_down, or a combination of those system technologies, for nonpotable _ 
_indoor use and landscape watering be incorporated into the design _ 
_and construction of:_ 
_(1)__ __ __each new state building with a roof 
measuring at _ 
_least 10,000 square feet; and_ 
_(2)__ __ __any other new state building for which the _ 
_incorporation of such systems is feasible._ 
SECTION 2.28.  Section 341.042, Health and Safety Code, is 
amended to read as follows: 
Sec. 341.042.  STANDARDS FOR HARVESTED RAINWATER.  _(a)_  The 
commission shall establish recommended standards relating to the 
domestic use of harvested rainwater, including health and safety 
standards for treatment and collection methods for harvested 
rainwater intended for drinking, cooking, or bathing. 
_(b)__ __ __The commission by rule shall provide that if a 
structure _ 
_is connected to a public water supply system and has a rainwater _ 
_harvesting system for indoor use:_ 
_(1)__ __ __the structure must have appropriate _ 
_cross-connection safeguards; and_ 
_(2)__ __ __the rainwater harvesting system may be used 
only _ 
_for nonpotable indoor purposes._ 
_(c)__ __ __Standards and rules adopted by the commission 
under this _ 
_chapter governing public drinking water supply systems do not apply _ 
_to a person:_ 
_(1)  who harvests rainwater for domestic use; and_ 
_(2)__ __ __whose property is not connected to a public _ 
_drinking water supply system._ 
SECTION 2.29.  Subsection (b), Section 212.0101, Local 
Government Code, is amended to read as follows: 
(b)  The Texas [Natural Resource Conservation] Commission _on _ 
_Environmental Quality_ by rule shall establish the appropriate form 
and content of a certification to be attached to a plat application 
under this section. 
SECTION 2.30.  Subsection (b), Section 232.0032, Local 
Government Code, is amended to read as follows: 
(b)  The Texas [Natural Resource Conservation] Commission _on _ 
_Environmental Quality_ by rule shall establish the appropriate form 
and content of a certification to be attached to a plat application 
under this section. 
SECTION 2.31.  Chapter 401, Local Government Code, is 
amended by adding Section 401.006 to read as follows: 
_Sec.__ __401.006.__ __ __WATER CONSERVATION BY HOME-RULE _ 
_MUNICIPALITY. A home-rule municipality may adopt and enforce _ 
_ordinances requiring water conservation in the municipality and by _ 
_customers of the municipality's municipally owned water and sewer _ 
_utility in the extraterritorial jurisdiction of the municipality._ 
SECTION 2.32.  Subchapter Z, Chapter 402, Local Government 
Code, is amended by adding Section 402.911 to read as follows: 
_Sec.__ __402.911.__ __ __DUTIES OF WATER SERVICE PROVIDER TO 
AN AREA _ 
_SERVED BY SEWER SERVICE OF CERTAIN POLITICAL SUBDIVISIONS. __ _ 
_(a)__ __ __This section applies only to an area:_ 
_(1)__ __ __that is located in a county that has a 
population _ 
_of more than 1.3 million; and_ 
_(2)__ __ __in which a customer's sewer service is 
provided by _ 
_a municipality or conservation and reclamation district that also _ 
_provides water service to other customers and the same customer's _ 
_water service is provided by another entity._ 
_(b)__ __ __For each person the water service provider serves 
in an _ 
_area to which this section applies, the water service provider _ 
_shall provide the municipality or district with any relevant _ 
_customer information so that the municipality or district may bill _ 
_users of the sewer service directly and verify the water _ 
_consumption of users. __ __Relevant customer information provided 
under _ 
_this section includes the name, address, and telephone number of _ 
_the customer of the water service provider, the monthly meter _ 
_readings of the customer, monthly consumption information, _ 
_including any billing adjustments, and certain meter information, _ 
_such as brand, model, age, and location._ 
_(c)__ __ __The municipality or district shall reimburse the 
water _ 
_service provider for its reasonable and actual incremental costs _ 
_for providing services to the municipality or district under this _ 
_section. __ __Incremental costs are limited to only those costs that 
are _ 
_in addition to the water service provider's costs in providing its _ 
_services to its customers, and those costs must be consistent with _ 
_the costs incurred by other water utility providers. __ __Only if _ 
_requested by the wastewater provider, the water service provider _ 
_must provide the municipality or district with documentation _ 
_certified by a certified public accountant of the reasonable and _ 
_actual incremental costs for providing services to the municipality _ 
_or district under this section._ 
_(d)__ __ __A municipality or conservation and reclamation 
district _ 
_may provide written notice to a person to whom the municipality's or _ 
_district's sewer service system provides service if the person has _ 
_failed to pay for the service for more than 90 days. __ __The notice 
must _ 
_state the past due amount owed and the deadline by which the past _ 
_due amount must be paid or the person will lose water service. 
__ __The _ 
_notice may be sent by mail or hand-delivered to the location at _ 
_which the sewer service is provided._ 
_(e)__ __ __The municipality or district may notify the water _ 
_service provider of a person who fails to make timely payment after _ 
_the person receives notice under Subsection (d). __ __The notice must _ 
_indicate the number of days the person has failed to pay for sewer _ 
_service and the total amount past due. __ __On receipt of the notice, _ 
_the water service provider shall discontinue water service to the _ 
_person._ 
_(f)__ __ __This section does not apply to a nonprofit water 
supply _ 
_or sewer service corporation created under Chapter 67, Water Code, _ 
_or a district created under Chapter 65, Water Code._ 
SECTION 2.33.  Section 430.003, Local Government Code, is 
amended to read as follows: 
Sec. 430.003.  EXEMPTIONS OF _CERTAIN_ [STATE] PROPERTY FROM 
INFRASTRUCTURE FEES.  No county, municipality, or utility district 
may collect from a state agency or _a_ public _or private_ institution 
of higher education any fee charged for the development or 
maintenance of programs _or_ [of] facilities for the control of 
excess water or storm water. 
SECTION 2.34.  Section 1903.053, Occupations Code, is 
amended to read as follows: 
Sec. 1903.053.  STANDARDS.  (a)  The commission shall adopt 
_by rule and enforce_ standards governing_:_ 
_(1)_  the connection of irrigation systems to any water 
supply_;_ 
_(2)__ __ __the design, installation, and operation of _ 
_irrigation systems;_ 
_(3)  water conservation; and_ 
_(4)__ __ __the duties and responsibilities of licensed _ 
_irrigators_. 
(b)  [The commission may adopt standards for irrigation that 
include water conservation, irrigation system design and 
installation, and compliance with municipal codes. 
[(c)]  The commission may not require or prohibit the use of 
any irrigation system, component part, or equipment of any 
particular brand or manufacturer. 
_(c)__ __ __In adopting standards under this section, the _ 
_commission shall consult the council._ 
SECTION 2.35.  (a)  In this section, "board" means the Texas 
Water Development Board. 
(b)  The board, in coordination with the Far West Texas 
Regional Water Planning Group established pursuant to Section 
16.053, Water Code, shall conduct a study regarding the possible 
impact of climate change on surface water supplies from the Rio 
Grande. 
(c)  In conducting the study, the board shall convene a 
conference within the Far West Texas regional water planning area 
designated pursuant to Section 16.053, Water Code, to review: 
(1)  any analysis conducted by a state located to the 
west of this state regarding the impact of climate change on surface 
water supplies in that state; 
(2)  any other current analysis of potential impacts of 
climate change on surface water resources; and 
(3)  recommendations for incorporation of potential 
impacts of climate change into the Far West Texas Regional Water 
Plan, including potential impacts to the Rio Grande in Texas 
subject to the Rio Grande Compact and identification of feasible 
water management strategies to offset any potential impacts. 
(d)  The conference should include, but not be limited to, 
the participation of representatives of: 
(1)  the Far West Texas Regional Water Planning Group; 
(2)  water authorities; 
(3)  industrial customers; 
(4)  agricultural interests; 
(5)  municipalities; 
(6)  fishing or recreational interests; 
(7)  environmental advocacy organizations; and 
(8)  institutions of higher education. 
(e)  Not later than December 31, 2008, the board shall submit 
to the legislature a written report regarding the study findings 
under this section. 
SECTION 2.36.  (a)  Chapter 9, Water Code, is repealed. 
(b)  The Texas Water Advisory Council is abolished on the 
effective date of this article. 
SECTION 2.37.  Chapter 64, Water Code, is repealed. 
SECTION 2.38.  As soon as practicable on or after the 
effective date of this article, the Texas Water Development Board 
shall appoint the initial members of the Water Conservation 
Advisory Council, as required by Section 10.003, Water Code, as 
added by this article.  In making the initial appointments, the 
board shall designate seven members to serve terms expiring August 
31, 2009, eight members to serve terms expiring August 31, 2011, and 
eight members to serve terms expiring August 31, 2013. 
SECTION 2.39.  The changes made by this Act to Section 
13.2451, Water Code, apply only to: 
(1)  an application for a certificate of public 
convenience and necessity or for an amendment to a certificate of 
public convenience and necessity submitted to the Texas Commission 
on Environmental Quality on or after the effective date of this Act; 
(2)  a proceeding to amend or revoke a certificate of 
public convenience and necessity initiated on or after the 
effective date of this Act; 
(3)  a certificate of public convenience and necessity 
issued to a municipality, regardless of the date the certificate 
was issued; 
(4)  an application by a municipality or by a utility 
owned by a municipality for a certificate of public convenience and 
necessity or for an amendment to a certificate, regardless of the 
date the application was filed; and 
(5)  a proceeding to amend or revoke a certificate of 
public convenience and necessity held by a municipality or by a 
utility owned by a municipality, regardless of the date the 
proceeding was initiated. 
SECTION 2.40.  Sections 15.102 and 17.125, Water Code, as 
amended by this article, and Sections 15.9751 and 16.1311, Water 
Code, as added by this article, apply only to an application for 
financial assistance filed with the Texas Water Development Board 
on or after the effective date of this article.  An application for 
financial assistance filed before the effective date of this 
article is governed by the law in effect on the date the application 
was filed, and the former law is continued in effect for that 
purpose. 
SECTION 2.41.  The change in law made by Subchapter O, 
Chapter 49, Water Code, as added by this Act, applies only to a 
subdivision for which a plat or map has been recorded in the office 
of the county clerk of a county on or after the effective date of 
this Act.  A subdivision for which a plat or map was recorded before 
the effective date of this Act is covered by the law in effect on the 
date the plat or map was recorded, and the former law is continued 
in effect for that purpose. 
SECTION 2.42.  Not later than June 1, 2008, the Texas 
Commission on Environmental Quality shall adopt standards as 
required by Section 1903.053, Occupations Code, as amended by this 
article, to take effect January 1, 2009. 
SECTION 2.43.  Section 2.27 of this article, adding 
Subsection (c-1), Section 447.004, Government Code, takes effect 
September 1, 2009. 
ARTICLE 3.  CONSTRUCTION AND OPERATION OF RESERVOIRS 
SECTION 3.01.  Section 16.051, Water Code, is amended by 
adding Subsection (i) to read as follows: 
_(i)__ __ __For purposes of this section, the acquisition of 
fee _ 
_title or an easement by a political subdivision for the purpose of _ 
_providing retail public utility service to property in the _ 
_reservoir site or allowing an owner of property in the reservoir _ 
_site to improve or develop the property may not be considered a _ 
_significant impairment that prevents the construction of a _ 
_reservoir site under Subsection (g). A fee title or easement _ 
_acquired under this subsection may not be considered the basis for _ 
_preventing the future acquisition of land needed to construct a _ 
_reservoir on a designated site._ 
SECTION 3.02.  Subchapter E, Chapter 16, Water Code, is 
amended by adding Sections 16.143 and 16.144 to read as follows: 
_Sec.__ __16.143.__ __ __OPTION TO LEASE. (a)__ __ __A former 
owner of real _ 
_property used for agricultural purposes that was acquired, _ 
_voluntarily or through the exercise of the power of eminent domain, _ 
_for a reservoir whose site has been designated as unique for the _ 
_construction of a reservoir under Section 16.051(g) is entitled to _ 
_lease the property from the person who acquired the property under _ 
_terms that allow the former owner to continue to use the property _ 
_for agricultural purposes until the person who acquired the _ 
_property determines that such use must be terminated to allow for _ 
_the physical construction of the reservoir. Consistent with _ 
_Subsection (b), the lease is subject to the terms and conditions set _ 
_forth by the person who has acquired the property that are related _ 
_to the use of the property by the former owner, including the term _ 
_of the lease, the rent the former owner is required to pay under the _ 
_lease, and the uses that may be allowed on the property during the _ 
_term of the lease._ 
_(b)__ __ __A former owner of real property used for 
agricultural _ 
_purposes is entitled to lease the property for the property's _ 
_agricultural rental value until the person who acquired the _ 
_property determines that the lease must be terminated to allow for _ 
_the physical construction of the reservoir._ 
_Sec.__ __16.144.__ __ __ENVIRONMENTAL MITIGATION. 
(a)__ __ __If a person _ 
_proposing to construct a reservoir whose site has been designated _ 
_as unique for the construction of a reservoir under Section _ 
_16.051(g) is required to mitigate future adverse environmental _ 
_effects arising from the construction or operation of the reservoir _ 
_or its related facilities, the person shall, if authorized by the _ 
_applicable regulatory authority, attempt to mitigate those effects _ 
_by offering to contract with and pay an amount of money to an owner _ 
_of real property located outside of the reservoir site to maintain _ 
_the property through an easement instead of acquiring the fee _ 
_simple title to the property for that purpose._ 
_(b)__ __ __An owner of real property may reject an offer made 
under _ 
_Subsection (a). If agreement on the terms of an easement under _ 
_Subsection (a) cannot be reached by the parties after a good faith _ 
_attempt and offer is made, then the party constructing the _ 
_reservoir may obtain fee title to the property through voluntary or _ 
_involuntary means._ 
ARTICLE 4.  UNIQUE RESERVOIR SITES AND SITES OF UNIQUE ECOLOGICAL 
VALUE 
SECTION 4.01.  Section 16.051, Water Code, is amended by 
adding Subsection (g-1) to read as follows: 
_(g-1)__ __ __Notwithstanding any other provisions of law, a 
site is _ 
_considered to be a designated site of unique value for the _ 
_construction of a reservoir if the site is recommended for _ 
_designation in the 2007 state water plan adopted by the board and in _ 
_effect on May 1, 2007. The designation of a unique reservoir site _ 
_under this subsection terminates on September 1, 2015, unless there _ 
_is an affirmative vote by a proposed project sponsor to make _ 
_expenditures necessary in order to construct or file applications _ 
_for permits required in connection with the construction of the _ 
_reservoir under federal or state law._ 
SECTION 4.02.  DESIGNATION OF SITES OF UNIQUE ECOLOGICAL 
VALUE.  The legislature, as authorized by Subsection (f), Section 
16.051, Water Code, designates those river or stream segment sites 
recommended in the 2007 state water plan as being of unique 
ecological value. 
SECTION 4.03.  RESTRICTION ON ELIGIBILITY TO HOLD WATER 
RIGHTS; LIABILITY FOR CONSTRUCTION, OPERATION, AND MAINTENANCE 
COSTS. (a)  This section applies only to the proposed Marvin 
Nichols and Lake Fastrill reservoirs. 
(b)  The right to appropriate at least 20 percent of the 
quantity of water that is authorized to be appropriated from each 
proposed reservoir must be held by one or more entities located in 
the regional water planning area in which the reservoir is to be 
located. 
(c)  If one or more entities located outside the regional 
water planning area in which a proposed reservoir is to be located 
are to hold the right to appropriate a majority of the quantity of 
water that is authorized to be appropriated from the reservoir, 
that entity or those entities must pay all of the costs of 
constructing, operating, and maintaining the reservoir until such 
time as one or more entities located in the regional water planning 
area in which the reservoir is to be located begins diverting water. 
At such time, the entity or entities making a diversion shall pay a 
pro-rata share of the cost of operating and maintaining the 
reservoir. 
SECTION 4.04.  STUDY COMMISSION ON REGION C WATER SUPPLY. 
(a)  The Study Commission on Region C Water Supply is established. 
The study commission consists of six members as follows: 
(1)  three members appointed by the Region C Regional 
Water Planning Group; and 
(2)  three members appointed by the Region D Regional 
Water Planning Group. 
(b)  A member of the study commission may be, but is not 
required to be, a voting member of the regional water planning group 
that appointed the member. 
(c)  The members of the study commission shall select a 
presiding officer from among the members. 
(d)  Members of the study commission are not entitled to 
compensation for service on the study commission but may be 
reimbursed for travel expenses incurred while conducting the 
business of the study commission, as provided for in the General 
Appropriations Act. 
(e)  The study commission shall: 
(1)  review the water supply alternatives available to 
the Region C Regional Water Planning Area, including obtaining 
additional water supply from Wright Patman Lake, Toledo Bend 
Reservoir, Lake Texoma, Lake O' the Pines, other existing and 
proposed reservoirs, and groundwater; 
(2)  in connection with the review under Subdivision 
(1) of this subsection, analyze the socioeconomic effect on the 
area where the water supply is located that would result from the 
use of the water to meet the water needs of the Region C Regional 
Water Planning Area, including: 
(A)  the effects on landowners, agricultural and 
natural resources, businesses, industries, and taxing entities of 
different water management strategies; and 
(B)  in connection with the use by the Region C 
Regional Water Planning Area of water from Wright Patman Lake, the 
effect on water availability in that lake and the effect on 
industries relying on that water availability; 
(3)  determine whether water demand in the Region C 
Regional Water Planning Area may be reduced through additional 
conservation and reuse measures so as to postpone the need for 
additional water supplies; 
(4)  evaluate measures that would need to be taken to 
comply with the mitigation requirements of the United States Army 
Corps of Engineers in connection with any proposed new reservoirs, 
including identifying potential mitigation sites; 
(5)  consider whether the mitigation burden described 
by Subdivision (4) of this subsection may be shared by the Regions C 
and D Regional Water Planning Areas in proportion to the allocation 
to each region of water in any proposed reservoir; 
(6)  review innovative methods of compensation to 
affected property owners, including royalties for water stored on 
acquired properties and annual payments to landowners for 
properties acquired for the construction of a reservoir to satisfy 
future water management strategies; 
(7)  evaluate the minimum number of surface acres 
required for the construction of proposed reservoirs in order to 
develop adequate water supply; and 
(8)  identify the locations of proposed reservoir sites 
and proposed mitigation sites, as applicable, as selected in 
accordance with existing state and federal law, in the Regions C and 
D Regional Water Planning Areas using satellite imagery with 
sufficient resolution to permit land ownership to be determined. 
(f)  The study commission may not be assisted by any person 
that is a party to or is employed by a party to a contract to perform 
engineering work with respect to site selection, permitting, 
design, or construction of the proposed Marvin Nichols reservoir. 
(g)  The Texas Water Development Board, on request of the 
study commission, may provide staff support or other assistance 
necessary to enable the study commission to carry out its duties. 
The Texas Water Development Board shall provide funding for the 
study commission, including funding of any studies conducted by the 
study commission, from the regional planning budget of the board. 
(h)  Not later than December 1, 2010, the study commission 
shall deliver a report to the governor, lieutenant governor, and 
speaker of the house of representatives that includes: 
(1)  any studies completed by the study commission; 
(2)  any legislation proposed by the study commission; 
(3)  a recommendation as to whether Marvin Nichols 
should remain a designated reservoir site; and 
(4)  other findings and recommendations of the study 
commission. 
(i)  The study commission is abolished and this section 
expires December 31, 2011. 
SECTION 4.05.  EFFECTIVE DATE. This article takes effect 
immediately if this Act 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 article takes effect September 
1, 2007. 
ARTICLE 5.  LEGISLATIVE JOINT INTERIM COMMITTEE 
SECTION 5.01.  (a)  In this section, "committee" means the 
joint interim committee on state water funding. 
(b)  The committee is composed of eight members as follows: 
(1)  the chair of the Senate Committee on Natural 
Resources and the chair of the House Committee on Natural Resources 
who shall serve as joint chairs of the committee; 
(2)  three members of the senate appointed by the 
lieutenant governor; and 
(3)  three members of the house of representatives 
appointed by the speaker of the house of representatives. 
(c)  An appointed member of the committee serves at the 
pleasure of the appointing official. 
(d)  The committee shall meet at least annually with the 
executive director of the Texas Commission on Environmental Quality 
and the executive administrator of the Texas Water Development 
Board to: 
(1)  receive information on water infrastructure needs 
as identified in the state water plan; 
(2)  receive information on infrastructure cost and 
funding options to be used by local entities to meet the needs 
identified in the state water plan; 
(3)  receive analyses of the funding gap and 
recommendations on how to address those funding needs; 
(4)  receive information on whether all water fees 
assessed are sufficient to support the required regulatory 
water-related state program functions and activities; and 
(5)  identify viable, sustainable, dedicated revenues 
and fee sources, or increases to existing revenue and fees, to 
support state water programs and to provide for natural resources 
data collection and dissemination, financial assistance programs, 
and water resources planning, including funding to implement water 
management strategies in the state water plan. 
(e)  The committee may hold hearings and may request reports 
and other information from state agencies as necessary to carry out 
this section. 
(f)  The Senate Committee on Natural Resources and the House 
Committee on Natural Resources shall provide staff necessary for 
the committee to fulfill its duties. 
(g)  Not later than December 1, 2008, the committee shall 
report to the governor, the lieutenant governor, and the speaker of 
the house of representatives on the committee's activities under 
Subsection (d) of this section. The report shall include 
recommendations of any legislative action necessary to address 
funding needs to support the state's water programs and water 
infrastructure needs. 
ARTICLE 6.  WATER DEVELOPMENT BOARD 
SECTION 6.01.  Section 16.344, Water Code, is amended by 
adding Subsections (d) through (i) to read as follows: 
_(d)__ __ __Notwithstanding Section 16.343(g) or Section 
16.350(a), _ 
_a political subdivision may temporarily continue to receive funds _ 
_under Subchapter K, Chapter 17, if the political subdivision _ 
_submits a request for temporary continuation of funding and the _ 
_board determines that:_ 
_(1)__ __ __the political subdivision's initial funding _ 
_application and any amendments for a designated area were reviewed _ 
_and approved by the board before January 1, 2007;_ 
_(2)__ __ __withholding funds would result in an undue _ 
_hardship for occupants of the property to be served by unreasonably _ 
_delaying the provision of adequate water or wastewater services;_ 
_(3)__ __ __withholding funds would result in 
inefficient use _ 
_of local, state, or federal funds under the program;_ 
_(4)__ __ __the political subdivision has committed to 
take _ 
_the necessary and appropriate actions to correct any deficiencies _ 
_in adoption or enforcement of the model rules within the time _ 
_designated by the board, but not later than the 90th day after the _ 
_date the board makes the determinations under this subsection;_ 
_(5)__ __ __the political subdivision has sufficient _ 
_safeguards in place to prevent the proliferation of colonias; and_ 
_(6)__ __ __during the 30 days after the date the board _ 
_receives a request under this subsection, the board, after _ 
_consulting with the attorney general, secretary of state, and _ 
_commission, has not received an objection from any of those _ 
_entities to the request for temporary continuation of funding._ 
_(e)__ __ __In applying Subsection (d) to applications for _ 
_increased financial assistance, the board shall only consider areas _ 
_that were included in the initial application, except that the _ 
_board may reconsider the eligibility of areas that were the subject _ 
_of a facility plan in the initial application and that may be _ 
_determined to be eligible based on criteria in effect September 1, _ 
_2005._ 
_(f)__ __ __The political subdivision shall take necessary and _ 
_appropriate actions to correct any deficiencies in its adoption and _ 
_enforcement of the model rules within the time period required by _ 
_the board, not to exceed the 90-day period described by Subsection _ 
_(d)(4), and provide evidence of compliance to the board. The board _ 
_shall discontinue funding unless the board makes a determination _ 
_based on the evidence provided that the political subdivision has _ 
_demonstrated sufficient compliance to continue funding._ 
_(g)__ __ __Except as provided by Subsections (d)-(f), if the 
board _ 
_determines that a county or city that is required to adopt and _ 
_enforce the model rules is not enforcing the model rules, the board _ 
_shall discontinue funding for all projects within the county or _ 
_city that are funded under Subchapter K, Chapter 17._ 
_(h)__ __ __The board may not accept or grant applications for _ 
_temporary funding under Subsection (d) after June 1, 2009._ 
_(i)__ __ __Subsections (d), (e), (f), (g), and (h) and this _ 
_subsection expire September 1, 2009._ 
ARTICLE 7.  RATE CLASSES FOR BILLING 
SECTION 7.01.  Subchapter H, Chapter 49, Water Code, is 
amended by adding Section 49.2122 to read as follows: 
_Sec.__ __49.2122.__ __ __ESTABLISHMENT OF CUSTOMER CLASSES. _ 
_(a)__ __ __Notwithstanding any other law, a district may establish _ 
_different charges, fees, rentals, or deposits among classes of _ 
_customers that are based on any factor the district considers _ 
_appropriate, including:_ 
_(1)__ __ __the similarity of the type of customer to 
other _ 
_customers in the class, including:_ 
_(A)  residential;_ 
_(B)  commercial;_ 
_(C)  industrial;_ 
_(D)  apartment;_ 
_(E)  rental housing;_ 
_(F)  irrigation;_ 
_(G)  homeowner associations;_ 
_(H)  builder;_ 
_(I)  out-of-district;_ 
_(J)  nonprofit organization; and_ 
_(K)__ __ __any other type of customer as 
determined by _ 
_the district;_ 
_(2)__ __ __the type of services provided to the customer _ 
_class;_ 
_(3)__ __ __the cost of facilities, operations, and _ 
_administrative services to provide service to a particular class of _ 
_customer, including additional costs to the district for security, _ 
_recreational facilities, or fire protection paid from other _ 
_revenues; and_ 
_(4)__ __ __the total revenues, including ad valorem tax _ 
_revenues and connection fees, received by the district from a class _ 
_of customers relative to the cost of service to the class of _ 
_customers._ 
_(b)__ __ __A district is presumed to have weighed and 
considered _ 
_appropriate factors and to have properly established charges, fees, _ 
_rentals, and deposits absent a showing that the district acted _ 
_arbitrarily and capriciously._ 
ARTICLE 8. STUDY OF ROLE OF LAKE SOMERVILLE IN ECONOMIC DEVELOPMENT 
SECTION 8.01.  The legislature finds that: 
(1)  in 1954, the United States Congress authorized the 
construction of Lake Somerville to provide flood control, water 
conservation, and other beneficial uses for nearby areas; 
subsequently, the United States Army Corps of Engineers began 
reservoir construction in 1962 and began to impound water in 1967; 
(2)  straddling the borders of Burleson, Washington, 
and Lee Counties, on Yegua Creek 20 river miles upstream from that 
creek's confluence with the Brazos River, the lake has a storage 
capacity of 337,700 acre-feet; 
(3)  operation of the lake is supervised by the Fort 
Worth District of the United States Army Corps of Engineers; the 
lake is one of nine federal reservoirs that are integrated into the 
Brazos River Authority's basin-wide system and associated water 
resource development master plan; 
(4)  the Brazos River Authority owns the stored water, 
a source from which it furnishes supplies to the City of Brenham 
according to a contract that was last renewed for a 10-year period 
in 2003; 
(5)  also significantly involved in the region is the 
Lower Colorado River Authority, which, from its diverse mix of 
power plants, provides wholesale electricity to various 
communities as well as offering them its economic research and 
expertise; 
(6)  although Lake Somerville has long been a tourist 
destination for fishing and other water recreation, the facility 
has not fully effectuated the three-county economic impact that 
originally was expected at the time that it was built; and 
(7)  a study of Lake Somerville's role in economic 
development would assist in explaining why the lake has not yet had 
that impact, beyond the tourism industry, and would help to 
identify impediments that currently restrict its contribution as 
well as strategies that would better maximize its economic 
potential. 
SECTION 8.02.  The Brazos River Authority and the Lower 
Colorado River Authority shall: 
(1)  conduct, with appropriate input from the public 
and private sectors, a joint baseline study of the role of Lake 
Somerville in the economic development of the surrounding vicinity; 
and 
(2)  jointly submit a full report of their findings and 
recommendations to the 81st Legislature when that legislature 
convenes in January 2009. 
ARTICLE 9.  AGUA SPECIAL UTILITY DISTRICT 
SECTION 9.01.  The heading to Chapter 7201, Special District 
Local Laws Code, is amended to read as follows: 
CHAPTER 7201. _AGUA_ [LA JOYA] SPECIAL UTILITY DISTRICT 
SECTION 9.02.  Section 7201.001, Special District Local Laws 
Code, is amended by amending Subdivision (3) and adding Subdivision 
(4) to read as follows: 
(3)  _"Director" means a member of the board._ 
_(4)_  "District" means the _Agua_ [La Joya] Special 
Utility District. 
SECTION 9.03.  Subsection (c), Section 7201.002, Special 
District Local Laws Code, is amended to read as follows: 
(c)  _The_ [On the effective date of the Act enacting this 
chapter, the] corporation shall be dissolved and succeeded without 
interruption by the district _as provided by Subchapter A1_. 
SECTION 9.04.  Section 7201.005, Special District Local Laws 
Code, is amended by amending Subsections (a) and (b) and adding 
Subsection (d) to read as follows: 
(a)  The [boundaries of the corporation and initial 
boundaries of the] district _is composed of the territory described _ 
_by Section 9.12 of the Act enacted by the 80th Legislature, Regular _ 
_Session, 2007, amending this subsection_ [are coextensive with the 
service areas covered by Certificates of Convenience and Necessity 
Nos. 10559 and 20785, as recorded on the Texas Commission on 
Environmental Quality maps associated with those certificates. 
Those maps are incorporated in this section by reference]. 
(b)  _The boundaries and field notes contained in Section 9.12 _ 
_of the Act enacted by the 80th Legislature, Regular Session, 2007, _ 
_amending this subsection form a closure._ A mistake made in the 
_field notes or in copying the field notes in the legislative process_ 
[preparation, copying, or filing of the maps described by 
Subsection (a) and on file with the Texas Commission on 
Environmental Quality] does not affect: 
(1)  the organization, existence, or validity of the 
district; 
(2)  the right of the district to issue bonds; or 
(3)  the legality or operation of the district. 
_(d)__ __ __The territory of the district does not include and 
the _ 
_district does not have jurisdiction over land that has never been in _ 
_the service area of the corporation regardless of any erroneous _ 
_inclusion of that land in the boundaries and field notes in Section _ 
_9.12 of the Act enacted by the 80th Legislature, Regular Session, _ 
_2007, amending this section._ 
SECTION 9.05.  Section 7201.021, Special District Local Laws 
Code, is amended by amending Subsections (a), (b), and (d) and 
adding Subsection (f) to read as follows: 
(a)  _Except as provided by this subsection, after the _ 
_appointment of initial directors under Section 7201.051, the _ 
_receiver for the corporation_ [On the effective date of the Act 
enacting this chapter, the corporation] shall transfer the assets, 
debts, and contractual rights and obligations of the corporation_, _ 
_including all legal claims against the corporation in effect on the _ 
_date of the transfer,_ to the district and provide notices and make 
recordings of the transfer required by the Water Code and general 
law. _If the transfer of any debt requires the permission of the _ 
_lender, the receiver shall initiate proceedings to obtain that _ 
_permission._ 
(b)  _In accordance with the orders of the receivership court _ 
_and not_ [Not] later than the 30th day after the date of the transfer 
under Subsection (a), the _receiver for_ [board of directors of] the 
corporation shall commence dissolution proceedings of the 
corporation. 
(d)  The _receiver for_ [board of directors of] the corporation 
shall notify the Texas Commission on Environmental Quality of the 
dissolution of the corporation and _its succession in interest by_ 
[the creation of] the district _in order_ [to replace it] to effect 
the transfer of Certificates of Convenience and Necessity Nos. 
10559 and 20785 to the district. 
_(f)__ __ __After the Texas Commission on Environmental Quality _ 
_takes the action required by Subsection (e), the court shall _ 
_terminate the receivership._ 
SECTION 9.06.  Section 7201.022, Special District Local Laws 
Code, is amended to read as follows: 
Sec. 7201.022.  EXPIRATION OF SUBCHAPTER. This subchapter 
expires September 1, _2012_ [2008]. 
SECTION 9.07.  Section 7201.051, Special District Local Laws 
Code, is amended to read as follows: 
Sec. 7201.051.  _APPOINTMENT OF INITIAL_ [TEMPORARY] 
DIRECTORS.  (a)  _As soon as practicable after the effective date of _ 
_the Act enacted by the 80th Legislature, Regular Session, 2007, _ 
_amending this section, seven initial directors shall be appointed _ 
_as provided by this section_ [The directors of the corporation who 
hold office on the effective date of the Act enacting this chapter 
shall serve as the temporary directors of the district until 
successor directors are elected and qualify for office]. 
(b)  _To be eligible to be appointed as an initial director, _ 
_an individual must meet the same requirements as a candidate for an _ 
_elected position as director under Section 7201.052. The initial _ 
_directors shall be appointed as follows:_ 
_(1)__ __ __one director to represent the residents of 
the _ 
_district in the City of Mission appointed by the governing body of _ 
_that city;_ 
_(2)__ __ __one director to represent the residents of 
the _ 
_district in the City of Palmview appointed by the governing body of _ 
_that city;_ 
_(3)__ __ __one director to represent the residents of 
the _ 
_district in the City of Penitas appointed by the governing body of _ 
_that city;_ 
_(4)__ __ __one director to represent the residents of 
the _ 
_district in the City of Sullivan City appointed by the governing _ 
_body of that city; and_ 
_(5)__ __ __three directors to represent the residents 
of the _ 
_district outside the municipalities listed in Subdivisions (1)-(4) _ 
_appointed by the Hidalgo County Commissioners Court_ [The temporary 
directors of the district are assigned position numbers as follows: 
[(1)  Position 1, Jose Luis Trigo; 
[(2)  Position 2, Jose Guadalupe Reyna; 
[(3)  Position 3, George Barreiro; 
[(4)  Position 4, Frolian Ramirez; 
[(5)  Position 5, Russell Wicker; 
[(6)  Position 6, Benito Salinas; 
[(7)  Position 7, Manuel Ricardo Garcia; 
[(8)  Position 8, Valente Alaniz, Jr.; and 
[(9)  Position 9, Juan Lino Garza]. 
(c)  _An initial director serves a term that expires on June 1 _ 
_of the year in which the director's successor is elected under _ 
_Section 7201.052_ [If there is a vacancy on the temporary board of 
directors of the district, the temporary board shall appoint a 
person to fill the vacancy for the remainder of the term for the 
vacated position until the applicable election under Section 
7201.052]. 
SECTION 9.08.  Subchapter B, Chapter 7201, Special District 
Local Laws Code, is amended by adding Sections 7201.0512 and 
7201.0513 to read as follows: 
_Sec.__ __7201.0512.__ __ __INITIAL BOARD TRAINING. 
(a)__ __ __Not later _ 
_than the 60th day after the first date on which all of the initial _ 
_directors have been appointed, each initial director shall complete _ 
_at least 12 hours of training on district management and compliance _ 
_with laws applicable to the district as determined by the receiver _ 
_for the corporation._ 
_(b)__ __ __The district shall reimburse an initial director 
for the _ 
_reasonable expenses incurred by the director in attending the _ 
_training._ 
_Sec.__ __7201.0513.__ __ __EDUCATION PROGRAM. 
(a)__ __ __Before the first _ 
_election of directors under Section 7201.052, the initial board _ 
_shall establish a program of education for directors that includes _ 
_information on:_ 
_(1)  the history of the district;_ 
_(2)  the district's enabling legislation;_ 
_(3)__ __ __Chapters 49 and 65, Water Code, and other 
laws that _ 
_apply to the district, including the requirements of the:_ 
_(A)__ __ __open meetings law, Chapter 551, 
Government _ 
_Code; and_ 
_(B)__ __ __public information law, Chapter 552, _ 
_Government Code;_ 
_(4)__ __ __relevant legal developments related to water _ 
_district governance;_ 
_(5)  the duties and responsibilities of the board;_ 
_(6)__ __ __the requirements of conflict of interest 
laws and _ 
_other laws relating to public officials; and_ 
_(7)__ __ __any applicable ethics policies adopted by the _ 
_Texas Commission on Environmental Quality or the Texas Ethics _ 
_Commission._ 
_(b)__ __ __The district shall pay any costs associated with 
the _ 
_development of the education program from district revenue._ 
_(c)__ __ __The education program may include training 
provided by _ 
_an organization offering courses that have been approved by the _ 
_Texas Commission on Environmental Quality._ 
_(d)__ __ __The board may adopt bylaws modifying the education _ 
_program as necessary to meet district needs._ 
SECTION 9.09.  Section 7201.052, Special District Local Laws 
Code, is amended to read as follows: 
Sec. 7201.052.  BOARD OF DIRECTORS. (a)  _Except as provided _ 
_by Subsection (l), the_ [The] district shall be governed by a board 
of _seven_ [not fewer than nine and not more than 11] directors, 
elected _as follows:_ 
_(1)__ __ __one director elected by the voters of the 
part of _ 
_the City of Mission inside the district to represent that part of _ 
_the city;_ 
_(2)__ __ __one director elected by the voters of the 
City of _ 
_Palmview to represent that city;_ 
_(3)__ __ __one director elected by the voters of the 
City of _ 
_Penitas to represent that city;_ 
_(4)__ __ __one director elected by the voters of the 
City of _ 
_Sullivan City to represent that city; and_ 
_(5)__ __ __three directors elected at-large to numbered _ 
_positions on the board by the district voters who do not reside in _ 
_any of the municipalities listed in Subdivisions (1)-(4) to _ 
_represent the part of the district that is not included in those _ 
_municipalities, unless the number of at-large directors is _ 
_increased under Subsection (l)_ [in accordance with Section 49.103, 
Water Code, notwithstanding Subsection (f)(2) of that section]. 
(b)  _A_ [Except for a temporary director under Section 
7201.051, a] candidate for _one of the numbered_ [a position as] 
director _positions_: 
(1)  [is elected at large to represent the entire 
service area of the district; 
[(2)]  must reside in the _part of the_ service area of 
the district _that is not included in any of the municipalities _ 
_listed in Subsections (a)(1)-(4)_; and 
_(2)_ [(3)]  must be eligible to hold office under 
Section 141.001, Election Code. 
(c)  _A candidate for one of the director positions _ 
_representing a municipality listed in Subsection (a)(1), (2), (3), _ 
_or (4):_ 
_(1)__ __ __must reside in the municipality the candidate _ 
_seeks to represent; and_ 
_(2)__ __ __must be eligible to hold office under Section _ 
_141.001, Election Code._ 
_(d)_  It is the policy of the district that the directors 
shall represent and reside in as broad a cross-section of the 
geographic area of the district as possible. 
_(e)_ [(d)]  The district shall fill a vacancy on the board in 
accordance with Section 49.105, Water Code. 
_(f)_ [(e)]  Except for the _initial_ [temporary] directors 
_appointed_ [listed] under Section 7201.051 _or elected at the first _ 
_election under Subsection (g)_, directors serve staggered terms of 
_four_ [three] years. 
_(g)_ [(f)]  On the uniform election date in May _2008, or in _ 
_May 2010, if the election is postponed under Subsection (h), the _ 
_district shall hold an election to elect seven directors. On the_ 
[2006, and on that] uniform election date _in May of each _ 
_even-numbered_ [every third] year after that date, the district 
shall hold an election to elect _the appropriate number of_ [three] 
directors [to serve in positions 1, 4, and 7]. 
_(h)__ __ __The initial board by order may postpone until the _ 
_uniform election date in May 2010 the first election for directors _ 
_under Subsection (g) if the initial board determines that there is _ 
_not sufficient time to comply with the requirements of law and to _ 
_order the election of directors to be held on the first uniform _ 
_election date specified by that subsection._ 
_(i)__ __ __The directors elected at the first election under _ 
_Subsection (g) shall cast lots to determine which three directors _ 
_shall serve terms expiring June 1 of the first even-numbered year _ 
_after the year in which the directors are elected and which four _ 
_directors shall serve terms expiring June 1 of the second _ 
_even-numbered year after the year in which the directors are _ 
_elected._ 
_(j)  A director may not serve consecutive terms._ 
_(k)__ __ __A person who has served as a member of the board of _ 
_directors of the corporation is not eligible to serve as a district _ 
_director._ 
_(l)__ __ __If, before the expiration of the term of a director _ 
_elected to represent a municipality under Subsection (a)(1), (2), _ 
_(3), or (4), the district determines that all of the incorporated _ 
_territory of the municipality is outside the boundaries of the _ 
_district, the position immediately becomes an at-large numbered _ 
_position to be filled at the next general election of the district _ 
_in accordance with Subsections (a)(5) and (b)_ [(g)     On the uniform 
election date in May 2007, and on that uniform election date every 
third year after that date, the district shall hold an election to 
elect three directors to serve in positions 2, 3, and 5. 
[(h)     On the uniform election date in May 2008, and on that 
uniform election date every third year after that date, the 
district shall hold an election to elect three directors to serve in 
positions 6, 8, and 9]. 
SECTION 9.10.  Subchapter B, Chapter 7201, Special District 
Local Laws Code, is amended by adding Sections 7201.053 and 
7201.054 to read as follows: 
_Sec.__ __7201.053.__ __ __DISTRICT TREASURER. (a)__ __ __The 
board shall _ 
_elect from among its members one director to serve as district _ 
_treasurer._ 
_(b)__ __ __The district treasurer shall comply with the 
training _ 
_requirements provided by Section 49.1571, Water Code, for an _ 
_investment officer of a district._ 
_Sec.__ __7201.054.__ __ __EDUCATION FOR DIRECTORS. 
(a)__ __ __Except for an _ 
_initial director whose term expires in 2008, each director shall _ 
_complete the education program established under Section 7201.0513 _ 
_before the first anniversary of the date on which the director was _ 
_appointed or elected._ 
_(b)__ __ __The district shall reimburse a director for the _ 
_reasonable expenses incurred by the director in attending the _ 
_education program._ 
_(c)__ __ __A director who is elected to serve a subsequent 
term _ 
_shall fulfill the education requirements specified by district _ 
_bylaws._ 
SECTION 9.11.  Section 7201.206, Special District Local Laws 
Code, is amended to read as follows: 
Sec. 7201.206.  RATES _AND FEES_ FOR SERVICES. _(a)_  The 
district, in connection with water or sewer retail public utility 
services, shall establish lifeline, senior citizen, or minimum 
consumption level rates for services. The rate impact of such 
services shall be allocated on the basis of costs of services to 
achieve conservation principles, while securing necessary reserves 
for the payment of operating expenses, sinking funds, principal, 
interest, and debt coverage factors, and any other objective 
established by the district's annual budget. 
_(b)__ __ __Chapter 395, Local Government Code, does not apply 
to _ 
_any fee, charge, or assessment that, before the corporation's _ 
_dissolution and conversion to a district, is adopted by the _ 
_receiver for the purpose of generating revenue to fund or recoup the _ 
_costs of capital improvements or facility expansions necessitated _ 
_by and attributable to new developments._ 
_(c)__ __ __Notwithstanding Subsection (b), beginning on 
December _ 
_31, 2009, the district may not impose any fee, charge, or assessment _ 
_that, before the corporation's dissolution and conversion to a _ 
_district, is adopted by the receiver for the purpose of generating _ 
_revenue to fund or recoup the costs of capital improvements or _ 
_facility expansions necessitated by and attributable to new _ 
_developments unless the district readopts the fee, charge, or _ 
_assessment or adopts a new fee, charge, or assessment in accordance _ 
_with Chapter 395, Local Government Code. This subsection does not _ 
_apply to a retail water or sewer rate adopted by the receiver or the _ 
_district._ 
SECTION 9.12.  (a)  Except for the areas excluded under 
Subsection (b) of this section, the boundaries of the Agua Special 
Utility District are as follows: 
Beginning at a point in the centerline of FM 495 (Mile 1 Road) 
a distance of approximately .18 miles west of the intersection of FM 
495 and Inspiration Road. 
Thence due north approximately 1.0 miles to a point 
approximately 166 feet south of the centerline of Mile 2 Road and 
approximately .18 miles west of the intersection of Mile 2 Road and 
Inspiration Road 
Thence follow west along a straight westerly line 
approximately 180 feet south of Mile 2 Road approximately .51 miles 
to a point in the centerline of Schubach Road. 
Following westerly in a straight line approximately .78 miles 
to the centerline of Bentsen Palm Drive. 
From the point at the centerline of Bentsen Palm Road 
continue westerly approximately .78 miles to a point at 26 15 00 
latitude and -98 22 10 longitude. 
Turn right and due north and follow approximately 7.0 miles 
in a northerly direction .10 miles west and parallel to Bentsen Palm 
Drive to a point at 226 21 04 latitude and -98 21 06 longitude. 
Turn left and follow westerly along a straight line a 
distance of approximately 1.66 miles to the intersection of Abram 
Road and 9 Mile Road. 
Follow along the centerline of 9 Mile Road westerly 
approximately 1.65 miles to its intersection with Iowa Avenue. 
(Latitude: 26 21 31, Longitude: -98 24 16) 
Continue westerly along a straight line from latitude 26 21 
31, longitude -98 24 16 approximately 3.79 miles to the center line 
of FM 2221 ( Jara Chinas Road) 
Thence due south along FM 2221 ( Jara Chinas Road) 
approximate distance of 8.02 Miles to a point approximately .75 
miles north of the Intersection of Expressway 83 and FM 2221( Jara 
Chinas Road) 
Thence at a distance of approximately .75 miles north of the 
centerline of Expressway 83 due west to northwest approximately 4 
miles following along the same contour as Expressway 83 to the 
centerline of El Faro Road from a point .62 miles east of the 
intersection of El Faro Road and Expressway 83. 
Turn right and follow due north down the centerline of El Faro 
Road until its end and continue northerly for a total of 
approximately 2.79 miles to a point at latitude 26 19 13 and 
longitude -98 32 40. 
Turn left and follow northwesterly in a straight line along 
the east side of 16 Mile Road (Starr County) approximately 1.87 
miles to a point located at 26 19 30 latitude and -98 34 27 
longitude. 
Turn right and follow northeasterly in a straight line 
approximately 1.02 miles to a point located at 26 20 22 latitude and 
-98 34 17 longitude. 
Turn right and follow southeasterly in a straight line 
approximately 1.26 miles to a point located at 26 20 22 latitude and 
-98 33 05 longitude. 
Turn right and follow northeasterly in a straight line along 
the west side of County Line Road (Starr County) approximately .61 
miles to a point located at 26 20 43 latitude and -98 32 60 
longitude. 
Turn left and follow northwesterly in a straight line 
approximately 1.26 miles to a point located at 26 20 53 latitude and 
-98 34 12 longitude. 
Turn right and follow northeasterly in a straight line along 
the east side of 16 Mile Road (Starr County) approximately 1.32 
miles to a point located at 26 22 02 latitude and -98 33 59 
longitude. 
Turn left and follow northwesterly in a straight line 
approximately .55 miles to a point located at 26 22 07 latitude and 
-98 34 30 longitude. 
Turn left and follow southwesterly in a straight line 
approximately 6.17 miles to a point located at 26 16 48 latitude and 
-98 35 29 longitude. 
Turn left and follow southeasterly in a straight line 
approximately .91 miles to a point located at 26 16 30 latitude and 
-98 34 40 longitude, near the Hidalgo-Starr County line. 
Turn right and follow southwesterly along the Hidalgo-Starr 
County line approximately 1.28 miles to its intersection with the 
Rio Grande River (U.S. side). 
Thence due south approximately 7.77 miles to the northern 
winding banks (U.S. side) of the Rio Grande River 
Thence east along the northern winding banks ( US side ) of 
the Rio Grande River approximately 22 miles to a point 
approximately 1.16 miles south of Greene Road 
Thence from that center line on Bentsen Park Road 
approximately .82 miles east northeast to the centerline of 
Breyfogle/Shuerbach Road 
Turn left and follow westerly in a straight line 
approximately .56 miles to a point located 26 11 20 latitude and -98 
22 30 longitude. 
Turn left and follow southerly in a straight line 
approximately .50 miles to the centerline of Miltary Road. 
Turn right and follow northerly and then northwesterly along 
the north side of Military Road approximately .36 miles to its 
intersection with Farm-to-Market Road 2062. 
Turn left and follow southerly along Farm-to-Market Road 2062 
approximately .16 miles to a point located at 26 11 02 latitude and 
-98 22 46 longitude. 
Turn right and follow northerly, westerly, southerly, 
southwesterly, northerly, westerly and then southwesterly for 
approximately 1.27 miles to a point located at 26 11 11 latitude and 
-98 23 38 longitude running just north of Park Road 43. 
Turn right and follow northeasterly along a straight line for 
approximately .71 miles to the north side of Military Road. 
Turn left and follow along westerly approximately .44 miles 
along the north side of Military Road to its intersection with 
Goodwin Road. 
Turn right and follow northerly along the centerline of 
Goodwin Road approximately .33 miles to a point located at 26 12 07 
latitude and -98 23 53 longitude. 
Turn right and follow easterly, northerly, easterly and then 
southeasterly approximately .78 miles to the intersection with 
Green Road. 
Turn left and follow northerly along the centerline of Green 
Road approximately .32 miles. 
Turn right and follow easterly and then southwesterly 
approximately 1.16 miles to the north side of Military Road at 
points 26 11 42 latitude and -98 23 16 longitude. 
Turn left and follow southeasterly along the north side of 
Military Road approximately 0.07 miles to a point located at 26 11 
40 latitude and -98 23 13 longitude. 
Turn left and follow northeasterly, northerly, 
northeasterly, northerly, northeasterly, easterly, southerly and 
then easterly approximately 2.04 miles to the centerline of 
Shuebach Road/Airfield Road 
Turn left and follow northeasterly along the centerline of 
Airfield Road approximately 1.48 miles to its intersection with 
U.S. Highway 83 Business. 
Turn right and follow easterly along the centerline of U.S. 
Highway 83 Business approximately .27 miles to its intersection 
with Moorefield Road. 
Turn left and follow northerly along the centerline of 
Moorefield Road approximately .32 miles to a point located at 26 13 
23 latitude and -98 21 21 longitude. 
Make a slight right and follow northeasterly and then 
northerly along the west banks of the Edinburg Main Canal 
approximately .66 miles to that point on the centerline of FM 495 
the beginning (Mile 1 Road) a distance of approximately .18 miles 
west of the intersection of FM 495 and Inspiration Road to Close. 
(b)  The territory of the Agua Special Utility District does 
not include the area within the city limits of La Joya, Texas, as it 
existed on January 1, 1991; the area within the Certificate of 
Convenience and Necessity of Hidalgo County Municipal Utility 
District No. 1 as reflected on the records of the Texas Commission 
on Environmental Quality as of January 1, 2007; and the area within 
the following boundary lines, which lie wholly within the district: 
Beginning at a point located at 26 14 57 Latitude and -98 25 
55 Longitude follow in a northwesterly direction along an unnamed 
creek approximately .23 Miles to a point located at 26 15 03 
Latitude and -98 26 05 Longitude. 
From the point located at 26 15 03 Latitude and -98 26 05 
Longitude follow in a westerly direction along an unnamed creek 
approximately .24 Miles to a point located at 26 15 04 Latitude and 
-98 26 19 Longitude. 
From the point located at 26 15 04 Latitude and -98 26 19 
Longitude turn right and follow in a straight line northeasterly 
approximately .97 Miles to a point located at 26 15 54 Latitude and 
-98 26 09 Longitude. 
From the point located at 26 15 54 Latitude and -98 26 09 
Longitude turn right and follow in a straight line 
easterly-southeasterly approximately .43 Miles to a point located 
at 26 15 50 Latitude and -98 25 45 Longitude. 
From a point located at 26 15 50 Latitude and -98 25 45 
Longitude turn right and follow in a straight line southwesterly 
approximately 1.03 Miles to a point located at 26 14 57 Latitude and 
-98 25 55 Longitude and Place of Beginning. 
SECTION 9.13.  Initial directors of the board of the Agua 
Special Utility District shall be appointed in accordance with 
Section 7201.051, Special District Local Laws Code, as amended by 
this Act, as soon as practicable after the effective date of this 
Act. 
SECTION 9.14.  Except as otherwise provided by Chapter 7201, 
Special District Local Laws Code, as amended by this Act, the Agua 
Special Utility District is subject to: 
(1)  any judicial or administrative order imposing an 
injunction against the La Joya Water Supply Corporation that is in 
effect on the date of the transfer under Section 7201.021, Special 
District Local Laws Code, as amended by this Act; or 
(2)  any judicial or administrative order imposing 
liability for monetary damages or a civil or administrative penalty 
against the La Joya Water Supply Corporation that: 
(A)  results from a legal proceeding that is 
pending on the date of the transfer under Section 7201.021, Special 
District Local Laws Code, as amended by this Act; or 
(B)  is unsatisfied on the date of the transfer 
under Section 7201.021, Special District Local Laws Code, as 
amended by this Act. 
SECTION 9.15.  (a)  The legal notice of the intention to 
introduce the article of this Act that amends Chapter 7201, Special 
District Local Laws Code, setting forth the general substance of 
the article, has been published as provided by law, and the notice 
and a copy of the article have been furnished to all persons, 
agencies, officials, or entities to which they are required to be 
furnished under Section 59, Article XVI, Texas Constitution, and 
Chapter 313, Government Code. 
(b)  The governor has submitted the notice and article to the 
Texas Commission on Environmental Quality. 
(c)  The Texas Commission on Environmental Quality has filed 
its recommendations relating to this article with the governor, 
lieutenant governor, and speaker of the house of representatives 
within the required time. 
(d)  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 article are 
fulfilled and accomplished. 
SECTION 9.16.  This article takes effect immediately if this 
Act 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 article takes effect September 1, 2007. 
ARTICLE 10.  TRUE RANCH MUNICIPAL UTILITY DISTRICT NO. 1 
SECTION 10.01.  Subtitle F, Title 6, Special District Local 
Laws Code, is amended by adding Chapter 8269 to read as follows: 
_CHAPTER 8269. TRUE RANCH MUNICIPAL UTILITY DISTRICT NO. 1_ 
_SUBCHAPTER A. GENERAL PROVISIONS_ 
_Sec. 8269.001.  DEFINITIONS. In this chapter:_ 
_(1)__ __ __"Board" means the board of directors of the _ 
_district._ 
_(2)  "Director" means a board member._ 
_(3)__ __ __"District" means the True Ranch Municipal 
Utility _ 
_District No. 1._ 
_Sec.__ __8269.002.__ __ __NATURE OF DISTRICT. The district is 
a _ 
_municipal utility district in Hays County created under and _ 
_essential to accomplish the purposes of Section 59, Article XVI, _ 
_Texas Constitution._ 
_Sec.__ __8269.003.__ __ __CONFIRMATION ELECTION REQUIRED. If 
the _ 
_creation of the district is not confirmed at a confirmation _ 
_election held under Section 8269.023 before September 1, 2012:_ 
_(1)__ __ __the district is dissolved September 1, 2012, _ 
_except that:_ 
_(A)  any debts incurred shall be paid;_ 
_(B)__ __ __any assets that remain after the 
payment of _ 
_debts shall be transferred to Hays County; and_ 
_(C)__ __ __the organization of the district shall 
be _ 
_maintained until all debts are paid and remaining assets are _ 
_transferred; and_ 
_(2)  this chapter expires September 1, 2015._ 
_Sec.__ __8269.004.__ __ __FINDINGS OF BENEFIT AND PUBLIC 
PURPOSE. _ 
_(a)__ __ __All land and other property in the district will benefit 
from _ 
_the works and projects to be accomplished by the district under _ 
_powers conferred by Section 59, Article XVI, Texas Constitution._ 
_(b)__ __ __The district is created to serve a public use and _ 
_benefit._ 
_Sec.__ __8269.005.__ __ __INITIAL DISTRICT TERRITORY. 
(a)__ __ __The _ 
_district is initially composed of the territory described by _ 
_Section 10.02 of the Act creating this chapter._ 
_(b)__ __ __The boundaries and field notes contained in Section _ 
_10.02 of the Act creating this chapter form a closure. A mistake _ 
_made in the field notes or in copying the field notes in the _ 
_legislative process does not affect:_ 
_(1)__ __ __the organization, existence, or validity of 
the _ 
_district;_ 
_(2)  the right of the district to impose taxes;_ 
_(3)__ __ __the right of the district to issue bonds, 
notes, or _ 
_other indebtedness or to pay the principal of and interest on a _ 
_bond;_ 
_(4)__ __ __the validity of the district's bonds, notes, 
or _ 
_other indebtedness; or_ 
_(5)__ __ __the legality or operation of the district or 
the _ 
_board._ 
_[Sections 8269.006-8269.020 reserved for expansion]_ 
_SUBCHAPTER A-1. TEMPORARY PROVISIONS_ 
_Sec.__ __8269.021.__ __ __TEMPORARY DIRECTORS. (a)__ __ __On 
or after _ 
_September 1, 2007, a person who owns land in the district may submit _ 
_a petition to the Texas Commission on Environmental Quality _ 
_requesting that the commission appoint as temporary directors the _ 
_five persons named in the petition._ 
_(b)__ __ __The commission shall appoint as temporary 
directors the _ 
_five persons named in the first petition received by the commission _ 
_under Subsection (a)._ 
_(c)__ __ __If a temporary director fails to qualify for 
office or _ 
_if a vacancy occurs in the office of temporary director, the vacancy _ 
_shall be filled as provided by Section 49.105, Water Code._ 
_(d)  Temporary directors serve until the earlier of:_ 
_(1)__ __ __the date directors are elected under Section _ 
_8269.023; or_ 
_(2)__ __ __the date this chapter expires under Section _ 
_8269.003._ 
_Sec.__ __8269.022.__ __ __ORGANIZATIONAL MEETING OF TEMPORARY _ 
_DIRECTORS. As soon as practicable after all the temporary _ 
_directors have qualified under Section 49.055, Water Code, the _ 
_directors shall meet at a location in the district agreeable to a _ 
_majority of the directors. If a location cannot be agreed upon, the _ 
_meeting shall be at the Hays County Courthouse. At the meeting, the _ 
_temporary directors shall elect officers from among the temporary _ 
_directors and conduct any other district business._ 
_Sec.__ __8269.023.__ __ __CONFIRMATION AND INITIAL DIRECTORS' _ 
_ELECTION. (a)__ __ __The temporary directors shall hold an election 
to _ 
_confirm the creation of the district and to elect five directors as _ 
_provided by Section 49.102, Water Code._ 
_(b)__ __ __Section 41.001(a), Election Code, does not apply 
to a _ 
_confirmation and initial directors' election held under this _ 
_section._ 
_Sec.__ __8269.024.__ __ __INITIAL ELECTED DIRECTORS; TERMS. 
The _ 
_directors elected under Section 8269.023 shall draw lots to _ 
_determine which two serve until the first regularly scheduled _ 
_election of directors under Section 8269.052 and which three shall _ 
_serve until the second regularly scheduled election of directors._ 
_Sec.__ __8269.025.__ __ __DATE OF FIRST REGULARLY SCHEDULED 
ELECTION _ 
_OF DIRECTORS. The board by order may postpone the first election _ 
_under Section 8269.052 following the confirmation and initial _ 
_directors' election held under Section 8269.023 if:_ 
_(1)__ __ __the election would otherwise occur not later 
than _ 
_the 60th day after the date on which the confirmation election is _ 
_held; or_ 
_(2)__ __ __the board determines that there is not 
sufficient _ 
_time to comply with the requirements of law and to order the _ 
_election._ 
_Sec.__ __8269.026.__ __ __EXPIRATION OF SUBCHAPTER. This 
subchapter _ 
_expires September 1, 2015._ 
_[Sections 8269.027-8269.050 reserved for expansion]_ 
_SUBCHAPTER B. BOARD OF DIRECTORS_ 
_Sec.__ __8269.051.__ __ __DIRECTORS; TERMS. (a)__ __ __The 
district is _ 
_governed by a board of five directors._ 
_(b)  Directors serve staggered four-year terms._ 
_Sec.__ __8269.052.__ __ __ELECTION OF DIRECTORS. On the 
uniform _ 
_election date in May of each even-numbered year, the appropriate _ 
_number of directors shall be elected._ 
_[Sections 8269.053-8269.100 reserved for expansion]_ 
_SUBCHAPTER C. POWERS AND DUTIES_ 
_Sec.__ __8269.101.__ __ __GENERAL POWERS AND DUTIES. The 
district has _ 
_the powers and duties necessary to accomplish the purposes for _ 
_which the district is created._ 
_Sec.__ __8269.102.__ __ __MUNICIPAL UTILITY DISTRICT POWERS 
AND _ 
_DUTIES. The district has the powers and duties provided by the _ 
_general law of this state, including Chapters 49 and 54, Water Code, _ 
_applicable to municipal utility districts created under Section 59, _ 
_Article XVI, Texas Constitution._ 
_Sec.__ __8269.103.__ __ __ROAD PROJECTS. (a)__ __ __To the 
extent _ 
_authorized by Section 52, Article III, Texas Constitution, the _ 
_district may construct, acquire, improve, maintain, or operate _ 
_arterials or main feeder roads or improvements in aid of those _ 
_roads._ 
_(b)__ __ __A road project must meet all applicable 
construction _ 
_standards, zoning and subdivision requirements, and regulatory _ 
_ordinances of the municipality or county in whose jurisdiction the _ 
_district is located._ 
_Sec.__ __8269.104.__ __ __COMPLIANCE WITH MUNICIPAL CONSENT _ 
_ORDINANCES OR RESOLUTIONS. Subject to the limitations of Section _ 
_54.016, Water Code, the district shall comply with all valid and _ 
_applicable requirements of any ordinance or resolution adopted by a _ 
_municipality in the corporate limits or extraterritorial _ 
_jurisdiction of which the district is located, including an _ 
_ordinance or resolution adopted before September 1, 2007, that _ 
_consents to the creation of the district or to the inclusion of _ 
_lands within the district._ 
_[Sections 8269.105-8269.150 reserved for expansion]_ 
_SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS_ 
_Sec.__ __8269.151.__ __ __ELECTIONS REGARDING TAXES OR BONDS. _ 
_(a)__ __ __Except as provided by Section 8269.201(b), the district 
may _ 
_issue, without an election, bonds and other obligations secured by _ 
_revenue or contract payments from any source other than ad valorem _ 
_taxation._ 
_(b)__ __ __The district must hold an election in the manner _ 
_provided by Chapters 49 and 54, Water Code, to obtain voter approval _ 
_before the district may impose an operation and maintenance tax or _ 
_issue bonds payable from ad valorem taxes._ 
_Sec.__ __8269.152.__ __ __OPERATION AND MAINTENANCE TAX. 
(a)__ __ __If _ 
_authorized at an election held under Section 8269.151, the district _ 
_may impose an operation and maintenance tax on taxable property in _ 
_the district in accordance with Section 49.107, Water Code._ 
_(b)__ __ __The board shall determine the tax rate. The rate 
may not _ 
_exceed the rate approved at the election._ 
_[Sections 8269.153-8269.200 reserved for expansion]_ 
_SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS_ 
_Sec.__ __8269.201.__ __ __AUTHORITY TO ISSUE BONDS AND OTHER _ 
_OBLIGATIONS. (a)__ __ __The district may issue bonds or other _ 
_obligations payable wholly or partly from ad valorem taxes, impact _ 
_fees, revenue, grants, or other district money, or any combination _ 
_of those sources, to pay for any authorized district purpose._ 
_(b)__ __ __The district may not issue bonds to finance 
projects _ 
_authorized by Section 8269.103 unless the issuance is approved by a _ 
_vote of a two-thirds majority of the voters of the district voting _ 
_at an election called for that purpose._ 
_(c)__ __ __Bonds or other obligations issued or incurred to 
finance _ 
_projects authorized by Section 8269.103 may not exceed one-fourth _ 
_of the assessed value of the real property in the district._ 
_Sec.__ __8269.202.__ __ __TAXES FOR BONDS. At the time bonds 
payable _ 
_wholly or partly from ad valorem taxes are issued:_ 
_(1)__ __ __the board shall impose a continuing direct 
annual _ 
_ad valorem tax, without limit as to rate or amount, for each year _ 
_that all or part of the bonds are outstanding; and_ 
_(2)__ __ __the district annually shall impose an ad 
valorem _ 
_tax on all taxable property in the district in an amount sufficient _ 
_to:_ 
_(A)__ __ __pay the interest on the bonds as the 
interest _ 
_becomes due;_ 
_(B)__ __ __create a sinking fund for the payment 
of the _ 
_principal of the bonds when due or the redemption price at any _ 
_earlier required redemption date; and_ 
_(C)  pay the expenses of imposing the taxes._ 
SECTION 10.02.  The True Ranch Municipal Utility District 
No. 1 includes all the territory contained in the following area: 
BEING ALL THAT CERTAIN TRACT OR PARCEL OF LAND CONTAINING 465.71 
ACRES, MORE OR LESS, OF LAND AREA IN THE JOHN INGRAIM SURVEY, 
ABSTRACT NO. 256, HAYS COUNTY, TEXAS, BEING A PORTION OF THAT TRACT 
DESCRIBED AS 1279.69 ACRES IN A DEED FROM LESLIE TRUE VESPER ET AL 
TO LESLIE TRUE VESPER DATED AUGUST 10, 1992 AND RECORDED IN VOLUME 
948, PAGE 789 OF THE HAYS COUNTY OFFICIAL PUBLIC RECORDS, AND BEING 
MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: 
BEGINNING at a ?" iron rod found in the southwest line of R.M. 
Highway No. 2325 and that tract described as an 80' R.O.W. in a deed 
from Cecil H. Hale, et al to the State of Texas dated August 29, 1956 
and recorded in Volume 169, Page 304 of the Hays County Deed Records 
for the most northerly northwest corner of the panhandle portion of 
this description and the Vesper 1279.69 acre tract and east corner 
of that tract described as 592.30 acres in a deed from Leslie True 
Vesper et al to Ameritrust Texas, N.A., Trustee dated August 10, 
1992 and recorded in Volume 949, Page 572 of the Hays County 
Official Public Records, from which a TXDOT concrete monument found 
bears N 69?45'42" W 162.75 feet; 
THENCE leaving the Ameritrust Texas 592.30 acre tract and the 
PLACE OF BEGINNING as shown on that plat numbered 24587-06-3-d 
dated May 30, 2006 prepared for Leslie Vesper by Byrn & Associates, 
Inc., of San Marcos, Texas with the common northeast line of the 
Vesper 1279.69 acre tract and southwest line of R.M. Highway No. 
2325 and the State of Texas 80' R.O.W. tract S 69?48'34" E 599.94 
feet to a ?" iron rod set for the northwest corner of that tract 
described as "Tract 1-1.00 acres" in a deed from Thomas W. Slaughter 
et ux to Randy C. Brown et ux dated February 12, 1996 and recorded in 
Volume 1206, Page 780 of the Hays County Official Public Records, 
from which A TXDOT concrete monument found bears S 69?47'57" E 
120.11 feet; 
THENCE leaving R.M. Highway No. 2325 and the State of Texas 
80' R.O.W. tract with the common east line of the Vesper 1279.69 
acre tract and west and south lines of the Brown 1.00 acre Tract 1 
the following two courses: 
1.  S 20?06'33" W 226.56 feet to a 2.5" pipe fence corner post 
found for corner, and 
S 69?41'58" E 234.42 feet to a 2" pipe fence corner post found 
in the west line of that tract described as "Tract 2-5.347 acres" in 
the previously mentioned deed to Randy C. Brown et ux for the 
southeast comer of the Brown 1.00 acre Tract 1; 
THENCE leaving the Brown 1.00 acre Tract 1 and continuing 
with the common east line of the Vesper 1279.69 acre tract and west 
line of the Brown 5.347 acre Tract 2, as fenced and used, the 
following three courses: 
S 00?10'12" E 410.74 feet to a ?" iron rod set at the 
approximate centerline of an underground pipeline for angle point, 
S 00?04'22" E 196.11 feet to a 2.5" pipe fence post found for 
angle point, and 
S 00?24'09" E 15.83 feet to an iron rod found with an aluminum 
cap stamped "Pro-Tech Eng" at fence corner for the southwest corner 
of the Brown 5.347 acre Tract 2 and northwest corner of the 
remaining portion of that tract described as 187.78 acres in a deed 
from Henry Polvado & Lillie Polvado to Wesley Springs dated May 6, 
1983 and recorded in Volume 393, Page 570 of the Hays County Deed 
Records (the Brown 5.347 acre Tract 2 being a portion of the Springs 
187.78 acre tract); 
THENCE leaving the Brown 5.347 acre Tract 2 and continuing 
with the east line of the Vesper 1279.69 acre tract and west line of 
the Springs 187.78 acre tract, as fenced and used, the following 
three courses: 
S 00?00'57" E 1012.24 feet to a 2.5" pipe fence post found for 
angle point, 
S 00?06'57" W 908.05 feet to a 4" pipe fence corner post found 
for angle point, and 
S 00?03'12" E 354.80 feet to a 4" pipe fence corner post found 
for the southwest corner of the springs 187.78 acre tract and 
northwest corner of that tract described as 126.97 acres in a deed 
from Stanual W. Farris to the Stanual W. Farris Living Trust dated 
March 10, 2005 and recorded in Volume 2646, Page 385 of the Hays 
County Official Public Records; 
THENCE leaving the Springs 187.78 acre tract and continuing 
with the common east line of the Vesper 1279.69 acre tract and west 
line of Farris Living Trust 126.97 acre tract, as fenced and used, 
the following three courses: 
S 00?12'25" W 952.36 feet to a 4" pipe fence post found for 
angle point, 
S 00?09'57"W 1087.12 feet to a 4" cedar post found for angle 
point, and 
S 00?22'11" W 1072.11 feet to a ?" iron rod found at fence 
corner for the southwest corner of the Farris Living Trust 126.97 
acre tract and northwest corner of that tract described as 32.03 
acres in a deed from Phil Harris to Shannon Harris dated April 8, 
1998 and recorded in Volume 1463, Page 335 of the Hays County 
Official Public Records; 
THENCE leaving the Farris Living Trust 126.97 acre tract and 
continuing with the common east line of the Vesper 1279.69 acre 
tract and west line of the Shannon Harris 32.03 acre tract, as 
fenced and used, S 00?44'10"W 120.44 feet to a 4" cedar fence corner 
post found for the southwest corner of the Shannon Harris 32.03 acre 
tract and northwest corner of that tract described as 28.92 acres in 
a deed from A.J. Farris et ux to Philip D. Farris dated July 18, 1991 
and recorded in Volume 882, page 620 of the Hays County Official 
Public Records; 
THENCE leaving the Shannon Harris 32.03 acre tract and 
continuing with the common east line of the Vesper 1279.69 acre 
tract and west line of the Philip D. Farris 28.92 acre tract, as 
fenced and used, S 00?24'02" W 279.19 feet to a ?" iron rod found at 
fence corner for the southeast corner of this description and 
northeast corner of that tract described as 52.30 acres in a deed 
from Leslie True Vesper to Paul R. Eastup et ux dated June 5, 1996 
and recorded in Volume 1240, Page 309 of the Hays County Official 
Public Records (the Eastup 52.30 acre tract being a portion of the 
Vesper 1279.69 acre tract); 
THENCE leaving the Phillip D. Farris 28.92 acre tract and 
entering the Vesper 1279.69 acre tract with the north line of the 
Eastup 52.30 acre tract, N 87?10'57" W 1356.38 feet to a ?" iron rod 
found in fence for the northwest corner of the Eastup 52.03 acre 
tract and northeast corner of that tract described as 209.16 acres 
in a deed from Leslie True Vesper to James Nicholas Edwards and Lynn 
S. Edwards dated July 6, 2005 and recorded in Volume 2719, Page 740 
of the Hays County Official Public Record (the Edwards 209.16 acre 
tract being a portion of the Vesper 1279.69 acre tract); 
THENCE leaving the Eastup 52.30 acre tract with the north 
line of the Edwards 209.16 acre tract, as fenced and used, the 
following five courses: 
N 87?19'31" W 665.61 feet to a 4" pipe fence post found for 
angle point, 
N 86?58'45" W 535.67 feet to a 3" cedar fence post found for 
angle point, 
N 87?09'05" W 302.22 feet to a 3" cedar fence post found for 
angle point, 
N 87?26'23" W 724.92 feet to a 4" cedar fence post found for 
angle point, and 
N 86?46'01" W 426.90 feet to a ?" iron rod found with a plastic 
cap stamped "Byrn Survey" in the east line of that tract described 
as 504.13 acres in a deed from Leslie True Vesper to James L. Pierce 
and David L. Pierce dated February 8, 1999 and recorded in Volume 
1500, Page 452 of the Hays County Official Public Records (the 
Pierce 504.13 acre tract being a portion of the Vesper 1279.69 acre 
tract); 
THENCE leaving the Edwards 209.16 acre tract with the east 
line of the Pierce 504.13 acre tract the following two courses: 
N 08?19'22" E 124.79 feet to a ?" iron rod found with a plastic 
cap stamped "Byrn Survey" for corner, and 
N 87?41'56" W 751.30 feet to a ?" iron rod found with a plastic 
cap stamped "Byrn Survey" for the southwest corner of this 
description, an interior corner in the east line of the Pierce 
504.13 acre tract, and the south corner of that tract described as 
10.59 acres in a deed from Leslie True Vesper to James L. Pierce and 
David L. Pierce dated June 15, 2001 and recorded in Volume 1872, 
Page 802 of the Hays County Official Public Records (the Pierce 
10.59 acre tract being a portion of the Vesper 1279.69 acre tract); 
THENCE leaving the Pierce 504.13 acre tract with the east 
line of Pierce 10.59 acre tract the following two courses: 
N 05?37'42" E (being the bearing basis for description) 734.58 
feet to a ?" iron rod found with a plastic cap stamped "Byrn Survey" 
for angle point, and 
N 16?12'16" E 1026.26 feet to a 16" cedar tree stump found in 
fence in the east line of the previously mentioned Pierce 504.13 
acre tract for the north corner of the Pierce 10.59 acre tract; 
THENCE leaving the Pierce 10.59 acre tract and continuing 
with the east line of the Pierce 504.13 acre tract, as fenced and 
used, the following eight courses: 
N 20?34'38" E 42.67 feet to a 16" cedar tree stump found for 
angle point, 
N 15?43'09" E 241.85 feet to a 12" cedar tree stump found for 
angle point, 
N 08?41'46" E 86.90 feet to a 14" cedar tree stump found for 
angle point, 
N 07?33'58" E 244.38 feet to a 2.5" pipe fence post found for 
angle point, 
N 24?14'46" E 623.77 feet to a 6" cedar fence post found for 
angle point, 
N 24?15'46" E 420.45 feet to a 2.5" pipe fence post found for 
angle point, 
N 12?52'45" E 194.02 feet to a 2.5" pipe fence post found for 
angle point, and 
N 01?30'08" E 340.55 feet to a 4" pipe fence corner post found 
in the south line of the previously mentioned Ameritrust Texas 
592.30 acre tract and north line of the Vesper 1279.69 acre tract 
for the northeast corner of the Pierce 504.13 acre tract and 
exterior west corner of this description; 
THENCE leaving the Pierce 504.13 acre tract with the common 
north line of the Vesper 1279.69 acre tract, and south line of the 
Ameritrust Texas 592.30 acre tract, as fenced and used, the 
following six courses: 
N 73?32'00" E 130.18 feet to a 4" pipe fence post found for 
angle point, 
S 48?36'36" E 170.02 feet to a ?" iron rod found for angle 
point, 
S 76?17'07" E 88.03 feet to a 4" pipe fence post found for 
angle point, 
S 86?44'44" E 798.24 feet to a 4" pipe fence post found for 
angle point, 
S 86?55'19" E 913.16 feet to a 4" pipe fence post found for 
angle point, and 
S 86?56'50" E 421.51 feet to a ?" iron rod found for the 
southeast corner of the Ameritrust Texas 592.30 acre tract and 
southwest corner of the panhandle portion of this description and 
the Vesper 1279.69 acre tract; 
THENCE leaving the fence with the common west line of the 
panhandle portion of the Vesper 1279.69 acre tract and east line of 
the Ameritrust Texas 592.30 acre tract the following two courses: 
N 00?00'32" E 1999.62 feet to a ?" iron rod found for angle 
point, and 
N 32?23'54" E 1152.96 feet to the PLACE OF BEGINNING. 
THERE are contained within these metes and bounds 465.71 
acres, more or less, as prepared from public records and surveys 
made on the ground in 1999, 2001, 2005 and on May 30, 2006 by Byrn & 
Associates, Inc., of San Marcos, Texas. All ?" iron rods set are 
capped with a plastic cap stamped "Byrn Survey". 
SECTION 10.03.  (a)  The legal notice of the intention to 
introduce this article, setting forth the general substance of this 
article, has been published as provided by law, and the notice and a 
copy of this article have been furnished to all persons, agencies, 
officials, or entities to which they are required to be furnished 
under Section 59, Article XVI, Texas Constitution, and Chapter 313, 
Government Code. 
(b)  The governor, one of the required recipients, has 
submitted the notice and article to the Texas Commission on 
Environmental Quality. 
(c)  The Texas Commission on Environmental Quality has filed 
its recommendations relating to this article with the governor, the 
lieutenant governor, and the speaker of the house of 
representatives within the required time. 
(d)  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 article are 
fulfilled and accomplished. 
SECTION 10.04.  This article takes effect immediately if 
this Act 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 article takes effect September 1, 2007. 
ARTICLE 11. TABLEROCK GROUNDWATER CONSERVATION DISTRICT 
SECTION 11.01.  Subtitle H, Title 6, Special District Local 
Laws Code, is amended by adding Chapter 8823 to read as follows: 
_CHAPTER 8823. TABLEROCK GROUNDWATER CONSERVATION DISTRICT_ 
_SUBCHAPTER A. GENERAL PROVISIONS_ 
_Sec. 8823.001.  DEFINITIONS. In this chapter:_ 
_(1)  "Board" means the district's board of directors._ 
_(2)  "Director" means a board member._ 
_(3)__ __ __"District" means the Tablerock Groundwater _ 
_Conservation District._ 
_Sec.__ __8823.002.__ __ __NATURE OF DISTRICT. The district is 
a _ 
_groundwater conservation district in Coryell County created under _ 
_and essential to accomplish the purposes of Section 59, Article _ 
_XVI, Texas Constitution._ 
_Sec.__ __8823.003.__ __ __CONFIRMATION ELECTION REQUIRED. 
(a)__ __ __If the _ 
_creation of the district is not confirmed at a confirmation _ 
_election held before September 1, 2012:_ 
_(1)__ __ __the district is dissolved on September 1, 
2012, _ 
_except that the district shall:_ 
_(A)  pay any debts incurred;_ 
_(B)__ __ __transfer to Coryell County any assets 
that _ 
_remain after the payment of debts; and_ 
_(C)__ __ __maintain the organization of the 
district _ 
_until all debts are paid and remaining assets are transferred; and_ 
_(2)  this chapter expires September 1, 2012._ 
_(b)  This section expires September 1, 2012._ 
_Sec.__ __8823.004.__ __ __INITIAL DISTRICT TERRITORY. The 
initial _ 
_boundaries of the district are coextensive with the boundaries of _ 
_Coryell County, Texas._ 
_Sec.__ __8823.005.__ __ __CONSTRUCTION OF CHAPTER. This 
chapter shall _ 
_be liberally construed to achieve the legislative intent and _ 
_purposes of Chapter 36, Water Code. A power granted by Chapter 36, _ 
_Water Code, or this chapter shall be broadly interpreted to achieve _ 
_that intent and those purposes._ 
_Sec.__ __8823.006.__ __ __APPLICABILITY OF OTHER GROUNDWATER _ 
_CONSERVATION DISTRICT LAW. Except as otherwise provided by this _ 
_chapter, Chapter 36, Water Code, applies to the district._ 
_[Sections 8823.007-8823.020 reserved for expansion]_ 
_SUBCHAPTER A-1. TEMPORARY PROVISIONS_ 
_Sec.__ __8823.021.__ __ __APPOINTMENT OF TEMPORARY DIRECTORS. _ 
_(a)__ __ __Not later than the 45th day after the effective date of 
this _ 
_chapter, five temporary directors shall be appointed as follows:_ 
_(1)__ __ __the Coryell County Commissioners Court shall _ 
_appoint one temporary director from each of the four commissioners _ 
_precincts in the county to represent the precincts in which the _ 
_temporary directors reside; and_ 
_(2)__ __ __the county judge of Coryell County shall 
appoint _ 
_one temporary director who resides in the district to represent the _ 
_district at large._ 
_(b)__ __ __If there is a vacancy on the temporary board, the _ 
_authority who appointed the temporary director whose position is _ 
_vacant shall appoint a person to fill the vacancy._ 
_(c)  Temporary directors serve until the earlier of:_ 
_(1)__ __ __the time the temporary directors become 
initial _ 
_directors as provided by Section 8823.024; or_ 
_(2)__ __ __the date this chapter expires under Section _ 
_8823.003._ 
_Sec.__ __8823.022.__ __ __ORGANIZATIONAL MEETING OF TEMPORARY _ 
_DIRECTORS. As soon as practicable after all the temporary _ 
_directors have qualified under Section 36.055, Water Code, a _ 
_majority of the temporary directors shall convene the _ 
_organizational meeting of the district at a location within the _ 
_district agreeable to a majority of the directors. If an agreement _ 
_on location cannot be reached, the organizational meeting shall be _ 
_at the Coryell County Courthouse._ 
_Sec.__ __8823.023.__ __ __CONFIRMATION ELECTION. 
(a)__ __ __The temporary _ 
_directors shall hold an election to confirm the creation of the _ 
_district._ 
_(b)__ __ __Section 41.001(a), Election Code, does not apply 
to a _ 
_confirmation election held as provided by this section._ 
_(c)__ __ __Except as provided by this section, a confirmation _ 
_election must be conducted as provided by Sections 36.017(b), (c), _ 
_and (e)-(i), Water Code, and the Election Code. Section 36.017(d), _ 
_Water Code, does not apply to the confirmation election._ 
_(d)__ __ __The ballot for the election must be printed in _ 
_accordance with the Election Code and provide for voting for or _ 
_against the proposition: "The creation of the Tablerock _ 
_Groundwater Conservation District and the imposition of a _ 
_maintenance tax at a rate not to exceed two cents on each $100 of _ 
_assessed valuation of taxable property in the district."_ 
_(e)__ __ __If a majority of the votes cast at the election 
are not _ 
_in favor of the creation of the district, the temporary directors _ 
_may hold a subsequent confirmation election. The subsequent _ 
_election may not be held before the first anniversary of the date on _ 
_which the previous election was held._ 
_(f)__ __ __The district may not impose a maintenance tax 
unless a _ 
_majority of the votes cast at the election are in favor of the _ 
_imposition of the maintenance tax._ 
_Sec.__ __8823.024.__ __ __INITIAL DIRECTORS. (a)__ __ __If 
creation of the _ 
_district is confirmed at an election held under Section 8823.023, _ 
_the temporary directors become the initial directors and serve for _ 
_the terms provided by Subsection (b)._ 
_(b)__ __ __The initial directors representing commissioners _ 
_precincts 2 and 4 serve until the election of directors under _ 
_Section 8823.025, and the initial directors representing _ 
_commissioners precincts 1 and 3 and the at-large director serve _ 
_until the next regularly scheduled election of directors under _ 
_Section 8823.053._ 
_Sec.__ __8823.025.__ __ __INITIAL ELECTION OF DIRECTORS. On 
the _ 
_uniform election date in November of the first even-numbered year _ 
_after the year in which the creation of the district is confirmed at _ 
_an election held under Section 8823.023, the district shall hold an _ 
_election of two directors to replace the initial directors who, _ 
_under Section 8823.024(b), serve until that election._ 
_Sec.__ __8823.026.__ __ __EXPIRATION OF SUBCHAPTER. This 
subchapter _ 
_expires September 1, 2012._ 
_[Sections__ __8823.027-8823.050 reserved for expansion]_ 
_SUBCHAPTER B. __ __BOARD OF DIRECTORS_ 
_Sec.__ __8823.051.__ __ __DIRECTORS; TERMS. (a)__ __ __The 
district is _ 
_governed by a board of five directors._ 
_(b)  Directors serve staggered four-year terms._ 
_Sec.__ __8823.052.__ __ __METHOD OF ELECTING DIRECTORS. One 
director _ 
_is elected from each county commissioners precinct in Coryell _ 
_County and one director is elected at large._ 
_Sec.__ __8823.053.__ __ __ELECTION DATE. The district shall 
hold an _ 
_election in the district to elect directors on the uniform election _ 
_date in November of each even-numbered year._ 
_Sec.__ __8823.054.__ __ __QUALIFICATIONS FOR ELECTION. 
(a)__ __ __To be _ 
_qualified for election as a director, a person must reside in the _ 
_district._ 
_(b)__ __ __To be qualified for election as a director from a _ 
_precinct, a person must reside in that precinct._ 
_[Sections 8823.055-8823.100 reserved for expansion]_ 
_SUBCHAPTER C. POWERS AND DUTIES_ 
_Sec.__ __8823.101.__ __ __GROUNDWATER CONSERVATION DISTRICT 
POWERS _ 
_AND DUTIES. Except as provided by this chapter, the district has _ 
_the powers and duties provided by the general law of this state, _ 
_including Chapter 36, Water Code, and Section 59, Article XVI, _ 
_Texas Constitution, applicable to groundwater conservation _ 
_districts._ 
_Sec.__ __8823.102.__ __ __REGISTRATION AND REPORTING 
REQUIREMENTS FOR _ 
_CERTAIN EXEMPT WELLS. The district may adopt rules that require the _ 
_owner or operator of a well or class of wells exempt from permitting _ 
_under Section 36.117, Water Code, to register the well with the _ 
_district and, if the well is not exempt under Section 36.117(b)(1), _ 
_Water Code, to report groundwater withdrawals from the well using _ 
_reasonable and appropriate reporting methods and frequency._ 
_Sec.__ __8823.103.__ __ __WELL SPACING RULES; EXEMPTIONS. 
(a)__ __ __Except _ 
_as provided by Subsection (b), the district shall exempt from the _ 
_well spacing requirements adopted by the district any well that is _ 
_completed on or before the effective date of those requirements._ 
_(b)__ __ __The district may provide by rule that a well may 
lose its _ 
_exemption under this section if the well is modified in a manner _ 
_that substantially increases the capacity of the well after the _ 
_effective date of the well spacing requirements adopted by the _ 
_district._ 
_(c)__ __ __Except as provided by this section, the district 
may _ 
_require any well or class of wells exempt from permitting under _ 
_Chapter 36, Water Code, to comply with the well spacing _ 
_requirements adopted by the district. The district shall apply _ 
_well spacing requirements uniformly to any well or class of wells _ 
_based on the size or capacity of the well and without regard to the _ 
_type of use of the groundwater produced by the well._ 
_Sec.__ __8823.104.__ __ __ADOPTION OF RULES AND ISSUANCE OF 
PERMITS. _ 
_Before the district adopts a management plan, the district may _ 
_adopt rules and issue permits._ 
_Sec.__ __8823.105.__ __ __CONTRACTS WITH OTHER GOVERNMENTAL 
ENTITIES. _ 
_(a)__ __ __The district and another governmental entity, including a _ 
_river authority located in the district, may contract for the _ 
_performance by that entity of a district function._ 
_(b)__ __ __The district may accept a loan from Coryell County 
to _ 
_pay for any initial costs of the district, including costs related _ 
_to a confirmation election._ 
_Sec.__ __8823.106.__ __ __NO EMINENT DOMAIN POWER. The 
district may _ 
_not exercise the power of eminent domain._ 
_Sec.__ __8823.107.__ __ __DISTRICT TERRITORY REQUIREMENTS; _ 
_DISSOLUTION OF DISTRICT. (a)__ __ __On September 1, 2011, the 
district _ 
_boundaries must include at least one county adjacent to Coryell _ 
_County._ 
_(b)__ __ __As soon as practicable after September 1, 2011, the _ 
_Texas Commission on Environmental Quality shall determine whether _ 
_the district complies with Subsection (a)._ 
_(c)__ __ __If the Texas Commission on Environmental Quality _ 
_determines that the district does not comply with Subsection (a), _ 
_the commission shall dissolve the district in accordance with _ 
_Sections 36.304, 36.305, 36.307, 36.308, 36.309, and 36.310, Water _ 
_Code, regardless of whether the district meets the criteria for _ 
_dissolution under Section 36.304(a), Water Code._ 
_(d)  This section expires September 1, 2013._ 
_[Sections 8823.108-8823.150 reserved for expansion]_ 
_SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS_ 
_Sec.__ __8823.151.__ __ __REVENUE. To pay the maintenance and _ 
_operating costs of the district and to pay any bonds or notes issued _ 
_by the district, the district may:_ 
_(1)  impose an ad valorem tax at a rate that:_ 
_(A)__ __ __is approved by a majority of district 
voters _ 
_voting at an election held for that purpose; and_ 
_(B)__ __ __does not exceed two cents on each $100 
of _ 
_assessed valuation of taxable property in the district;_ 
_(2)__ __ __assess fees for services or for water 
withdrawn _ 
_from nonexempt wells; or_ 
_(3)__ __ __solicit and accept grants from any private or _ 
_public source._ 
_[Sections 8823.152-8823.200 reserved for expansion]_ 
_SUBCHAPTER E. DISSOLUTION_ 
_Sec.__ __8823.201.__ __ __ELECTION FOR DISSOLUTION. 
(a)__ __ __If the _ 
_district has no outstanding bond or other long-term indebtedness, _ 
_the district may be dissolved by a favorable vote of a majority of _ 
_the registered voters of the district at an election held for that _ 
_purpose._ 
_(b)__ __ __The board shall hold a dissolution election if the 
board _ 
_receives a petition for dissolution signed by at least 50 percent of _ 
_the registered voters in the district as computed by using the list _ 
_of registered voters for Coryell County._ 
_(c)__ __ __If the district is dissolved under this section, 
the _ 
_board shall:_ 
_(1)__ __ __notify the Texas Commission on Environmental _ 
_Quality and the secretary of state of the dissolution; and_ 
_(2)__ __ __transfer title to any assets of the district 
to _ 
_Coryell County._ 
SECTION 11.02.  (a)  The legal notice of the intention to 
introduce this article, setting forth the general substance of this 
article, has been published as provided by law, and the notice and a 
copy of this article have been furnished to all persons, agencies, 
officials, or entities to which they are required to be furnished 
under Section 59, Article XVI, Texas Constitution, and Chapter 313, 
Government Code. 
(b)  The governor has submitted the notice and article to the 
Texas Commission on Environmental Quality. 
(c)  The Texas Commission on Environmental Quality has filed 
its recommendations relating to this article with the governor, 
lieutenant governor, and speaker of the house of representatives 
within the required time. 
(d)  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 article are 
fulfilled and accomplished. 
ARTICLE 12.  EDWARDS AQUIFER AUTHORITY 
SECTION 12.01.  Section 1.11, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, is amended by amending 
Subsection (f) and adding Subsections (f-1) and (f-2) to read as 
follows: 
(f)  The authority may _own, finance, design,_ [contract with a 
person who uses water from the aquifer for the authority or that 
person to] construct, operate, _or_ [own, finance, and] maintain 
_recharge_ [water supply] facilities. [Management fees or special 
fees may not be used for purchasing or operating these facilities.] 
For the purpose of this subsection, "_recharge_ [water supply] 
facility" _means_ [includes] a dam, reservoir, [treatment facility, 
transmission facility,] or _other method of_ recharge project _and _ 
_associated facilities, structures, or works but does not include a _ 
_facility to recirculate water at Comal or San Marcos Springs_. 
_(f-1)__ __ __The authority shall provide written notice of the _ 
_intent to own, finance, design, construct, operate, or maintain _ 
_recharge facilities to:_ 
_(1)__ __ __each groundwater conservation district in 
the area _ 
_in which the recharge facility will be located;_ 
_(2)__ __ __the mayor of each municipality in the area 
in which _ 
_the recharge facility will be located;_ 
_(3)__ __ __the county judge of each county in the area 
in _ 
_which the recharge facility will be located; and_ 
_(4)__ __ __each member of the legislature who 
represents the _ 
_area in which the proposed recharge facility will be located._ 
_(f-2)__ __ __Any entity within the county in which a recharge _ 
_facility is to be constructed shall be provided opportunity for _ 
_input and allowed to provide proposals for partnering with the _ 
_authority to own, finance, design, construct, operate, or maintain _ 
_the recharge facility._ 
SECTION 12.02.  Subsections (a), (c), (e), (f), and (h), 
Section 1.14, Chapter 626, Acts of the 73rd Legislature, Regular 
Session, 1993, are amended to read as follows: 
(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)  _recognize the extent of the hydro-geologic _ 
_connection and interaction between surface water and groundwater;_ 
_(6)_  protect aquatic and wildlife habitat; 
_(7)_ [(6)]  protect species that are designated as 
threatened or endangered under applicable federal or state law; and 
_(8)_ [(7)]  provide for instream uses, bays, and 
estuaries. 
(c)  Except as provided by Subsections [(d),] (f)[,] and (h) 
of this section and Section 1.26 of this article, for the period 
beginning January 1, 2008, the amount of permitted withdrawals from 
the aquifer may not exceed _or be less than 572,000_ [400,000] 
acre-feet of water for each calendar year_, which is the sum of all _ 
_regular permits issued or for which an application was filed and _ 
_issuance was pending action by the authority as of January 1, 2005_. 
(e)  The authority may not allow withdrawals from the aquifer 
through wells drilled after June 1, 1993, except _for replacement, _ 
_test, or exempt wells or to the extent that the authority approves _ 
_an amendment to an initial regular permit to authorize a change in _ 
_the point of withdrawal under that permit_ [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 
_660_ [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 springflows are not 
affected during critical drought conditions.] 
(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 _and to achieve other purposes _ 
_provided by Subsection (a) of this section and Section 1.26 of this _ 
_article_. 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 _adjustments to_ [reductions in] the amount 
of water that may be used or withdrawn by existing users or 
categories of other users_, including adjustments in accordance with _ 
_the authority's critical period management plan established under _ 
_Section 1.26 of this article_; or 
(2)  implementation of alternative management 
practices, procedures, and methods. 
SECTION 12.03.  Subsection (g), Section 1.16, Chapter 626, 
Acts of the 73rd Legislature, Regular Session, 1993, is amended to 
read as follows: 
(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 _or_[,] cancelled[, or retired]. 
SECTION 12.04.  Subsection (b), Section 1.19, Chapter 626, 
Acts of the 73rd Legislature, Regular Session, 1993, is amended to 
read as follows: 
(b)  _Withdrawal of water under a term permit must be _ 
_consistent with the authority's critical period management plan _ 
_established under Section 1.26 of this article._ A holder of a term 
permit may not withdraw water from the San Antonio pool of the 
aquifer unless_:_ 
_(1)_  the level of the aquifer is higher than _675_ [665] 
feet above sea level, as measured at Well J-17_;_ 
_(2)__ __ __the flow at Comal Springs as determined by 
Section _ 
_1.26(c) of this article is greater than 350 cubic feet per second; _ 
_and_ 
_(3)__ __ __the flow at San Marcos Springs as determined 
by _ 
_Section 1.26(c) of this article is greater than 200 cubic feet per _ 
_second_. 
SECTION 12.05.  Subsection (a), Section 1.22, Chapter 626, 
Acts of the 73rd Legislature, Regular Session, 1993, is amended to 
read as follows: 
(a)  The authority may acquire permitted rights to use water 
from the aquifer for the purposes of: 
(1)  holding those rights in trust for sale 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; _or_ 
(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]. 
SECTION 12.06.  Article 1, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, is amended by amending Section 
1.26 and adding Section 1.26A to read as follows: 
Sec. 1.26.  CRITICAL PERIOD MANAGEMENT PLAN. _(a)__ __ __After _ 
_review of the recommendations received in the program document, as _ 
_prescribed by Section 1.26A of this article, the_ [The] authority _by _ 
_rule_ shall _adopt_ [prepare and coordinate implementation of] a [plan 
for] critical period management _plan consistent with Sections _ 
_1.14(a), (f), and (h) of this article_ [on or before September 1, 
1995]. _The critical period management plan shall be adopted by the _ 
_authority no later than six months after the authority's receipt of _ 
_the program document. On adoption of the critical period _ 
_management plan, the authority shall provide a written report to _ 
_the governor, lieutenant governor, and speaker of the house of _ 
_representatives describing the actions taken in response to each _ 
_recommendation and, for each recommendation not implemented, the _ 
_reason it was not implemented._ The _plan_ [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_; and_ 
_(5)__ __ __allow irrigation use to continue in order to _ 
_permit the user to complete the irrigation of a crop in progress_. 
_(b)__ __ __In this section, "MSL" means the elevation above 
mean _ 
_sea level, measured in feet, of the surface of the water in a well, _ 
_and "CFS" means cubic feet per second. Not later than January 1, _ 
_2008, the authority shall, by rule, adopt and enforce a critical _ 
_period management plan with withdrawal reduction percentages in the _ 
_amounts indicated in Tables 1 and 2 whether according to the index _ 
_well levels or the Comal or San Marcos Springs flow as applicable, _ 
_for a total in critical period Stage IV of 40 percent of the _ 
_permitted withdrawals under Table 1 and 35 percent under Table 2:_ 
_TABLE 1_ 
_CRITICAL PERIOD WITHDRAWAL REDUCTION STAGES_ 
_FOR THE SAN ANTONIO POOL_ 
 
_Comal _  _San Marcos Springs Flow cfs_  _Index Well J-17 Level MSL_ 
_Critical Period Stage _  _Withdrawal Reduction- San Antonio Pool_ 
 
 
_Springs Flow _  _San Marcos Springs Flow cfs_  _Index Well J-17 
Level 
MSL_  _Critical Period Stage _  _Withdrawal Reduction- San Antonio 
Pool_ 
 
 
_cfs_  _San Marcos Springs Flow cfs_  _Index Well J-17 Level MSL_ 
_Critical Period Stage _  _Withdrawal Reduction- San Antonio Pool_ 
 
 
_225_  _<96_  _<660_  _I_  _20%_ 
 
 
_200_  _<80_  _<650_  _II_  _30%_ 
 
 
_150_  _N/A_  _<640_  _III_  _35%_ 
 
 
_100_  _N/A_  _<630_  _IV_  _40%_ 
 
_TABLE 2_ 
_CRITICAL PERIOD WITHDRAWAL REDUCTION STAGES_ 
_FOR THE UVALDE POOL_ 
 
_Withdrawal Reduction-Uvalde Pool_  _Index Well J-27 Level MSL_ 
_Critical Period Stage_ 
 
 
_N/A_  _---_  _I_ 
 
 
_5%_  _<850_  _II_ 
 
 
_20%_  _<845_  _III_ 
 
 
_35%_  _<842_  _IV_ 
 
_(c)__ __ __A change to a critical period stage with higher _ 
_withdrawal reduction percentages is triggered if the 10-day average _ 
_of daily springflows at the Comal Springs or the San Marcos Springs _ 
_or the 10-day average of daily aquifer levels at the J-17 Index Well _ 
_drops below the lowest number of any of the trigger levels indicated _ 
_in Table 1. A change to a critical period stage with lower _ 
_withdrawal reduction percentages is triggered only when the 10-day _ 
_average of daily springflows at the Comal Springs and the San Marcos _ 
_Springs and the 10-day average of daily aquifer levels at the J-17 _ 
_Index Well are all above the same stage trigger level. The _ 
_authority may adjust the withdrawal percentages for Stage IV in _ 
_Tables 1 and 2 if necessary in order to comply with Subsection (d) _ 
_or (e) of this section._ 
_(d)__ __ __Beginning September 1, 2007, the authority may not _ 
_require the volume of permitted withdrawals to be less than an _ 
_annualized rate of 340,000 acre-feet, under critical period Stage _ 
_IV._ 
_(e)__ __ __After January 1, 2013, the authority may not 
require the _ 
_volume of permitted withdrawals to be less than an annualized rate _ 
_of 320,000 acre-feet, under critical period Stage IV unless, after _ 
_review and consideration of the recommendations provided under _ 
_Section 1.26A of this article, the authority determines that a _ 
_different volume of withdrawals is consistent with Sections _ 
_1.14(a), (f), and (h) of this article in maintaining protection for _ 
_federally listed threatened and endangered species associated with _ 
_the aquifer to the extent required by federal law._ 
_(f)__ __ __Notwithstanding Subsections (d) and (e) of this _ 
_section, the authority may require further withdrawal reductions _ 
_before reviewing and considering the recommendations provided _ 
_under Section 1.26A of this article if the discharge of Comal _ 
_Springs or San Marcos Springs declines an additional 15 percent _ 
_after Stage IV withdrawal reductions are imposed under Subsection _ 
_(b) of this section. This subsection expires on the date that _ 
_critical period management plan rules adopted by the authority _ 
_based on the recommendations provided under Section 1.26A of this _ 
_article take effect._ 
_(g)__ __ __Notwithstanding the existence of any stage of an 
interim _ 
_or final critical period adopted by the authority under this _ 
_section, a person authorized to withdraw groundwater from the _ 
_aquifer for irrigation purposes shall, without regard to the _ 
_withdrawal reductions prescribed for that stage, be allowed to _ 
_finish a crop already planted in the calendar year during which the _ 
_critical period is in effect._ 
_Sec.__ __1.26A.__ __ __DEVELOPMENT OF WITHDRAWAL REDUCTION 
LEVELS AND _ 
_STAGES FOR CRITICAL PERIOD MANAGEMENT THROUGH RECOVERY _ 
_IMPLEMENTATION PROGRAM. (a)__ __ __The authority, with the 
assistance of _ 
_Texas A&M University, shall cooperatively develop a recovery _ 
_implementation program through a facilitated, consensus-based _ 
_process that involves input from the United States Fish and _ 
_Wildlife Service, other appropriate federal agencies, and all _ 
_interested stakeholders, including those listed under Subsection _ 
_(e)(1) of this section. The recovery implementation program shall _ 
_be developed for the species that are:_ 
_(1)__ __ __listed as threatened or endangered species 
under _ 
_federal law; and_ 
_(2)  associated with the aquifer._ 
_(b)__ __ __The authority shall enter into a memorandum of 
agreement _ 
_with the United States Fish and Wildlife Service, other appropriate _ 
_federal agencies, the Texas Commission on Environmental Quality, _ 
_the Parks and Wildlife Department, the Department of Agriculture, _ 
_the Texas Water Development Board, and other stakeholders, not _ 
_later than December 31, 2007, in order to develop a program document _ 
_that may be in the form of a habitat conservation plan used in _ 
_issuance of an incidental take permit as outlined in Subsection (d) _ 
_of this section._ 
_(c)__ __ __The authority shall enter into an implementing _ 
_agreement with the United States Fish and Wildlife Service, other _ 
_appropriate federal agencies, the Texas Commission on _ 
_Environmental Quality, the Parks and Wildlife Department, the _ 
_Department of Agriculture, the Texas Water Development Board, and _ 
_other stakeholders to develop a program document that may be in the _ 
_form of a habitat conservation plan used in issuance of an _ 
_incidental take permit as outlined in Subsection (d) of this _ 
_section not later than December 31, 2009._ 
_(d)__ __ __The authority, the Texas Commission on 
Environmental _ 
_Quality, the Parks and Wildlife Department, the Department of _ 
_Agriculture, the Texas Water Development Board, and other _ 
_stakeholders shall jointly prepare a program document that may be _ 
_in the form of a habitat conservation plan used in issuance of an _ 
_incidental take permit with the United States secretary of the _ 
_interior, through the United States Fish and Wildlife Service and _ 
_other appropriate federal agencies, under Section 4 or Section 6, _ 
_Endangered Species Act of 1973 (16 U.S.C. Section 1533 or 1535), as _ 
_applicable, based on the program developed under Subsection (a) of _ 
_this section. The program document shall:_ 
_(1)__ __ __provide recommendations for withdrawal _ 
_adjustments based on a combination of spring discharge rates of the _ 
_San Marcos and Comal Springs and levels at the J-17 and J-27 wells _ 
_during critical periods to ensure that federally listed, _ 
_threatened, and endangered species associated with the Edwards _ 
_Aquifer will be protected at all times, including throughout a _ 
_repeat of the drought of record;_ 
_(2)__ __ __include provisions to pursue cooperative and 
grant _ 
_funding to the extent available from all state, federal, and other _ 
_sources for eligible programs included in the cooperative agreement _ 
_under Subsection (c) of this section, including funding for a _ 
_program director; and_ 
_(3)__ __ __be approved and executed by the authority, 
the _ 
_Texas Commission on Environmental Quality, the Parks and Wildlife _ 
_Department, the Department of Agriculture, the Texas Water _ 
_Development Board, and the United States Fish and Wildlife Service _ 
_not later than September 1, 2012, and the agreement shall take _ 
_effect December 31, 2012._ 
_(e)__ __ __Texas A&M University shall assist in the creation 
of a _ 
_steering committee to oversee and assist in the development of the _ 
_cooperative agreement under Subsection (c) of this section. The _ 
_steering committee must be created not later than September 30, _ 
_2007. The initial steering committee shall be composed of:_ 
_(1)__ __ __a representative of each of the following _ 
_entities, as appointed by the governing body of that entity:_ 
_(A)  the Edwards Aquifer Authority;_ 
_(B)__ __ __the Texas Commission on Environmental _ 
_Quality;_ 
_(C)  the Parks and Wildlife Department;_ 
_(D)  the Department of Agriculture;_ 
_(E)  the Texas Water Development Board;_ 
_(F)  the San Antonio Water System;_ 
_(G)  the Guadalupe-Blanco River Authority;_ 
_(H)  the San Antonio River Authority;_ 
_(I)__ __ __the South Central Texas Water Advisory _ 
_Committee;_ 
_(J)  Bexar County;_ 
_(K)  CPS Energy; and_ 
_(L)__ __ __Bexar Metropolitan Water District or 
its _ 
_successor; and_ 
_(2)  nine other persons who respectively must be:_ 
_(A)__ __ __a representative of a holder of an 
initial _ 
_regular permit issued to a retail public utility located west of _ 
_Bexar County, to be appointed by the authority;_ 
_(B)__ __ __a representative of a holder of an 
initial _ 
_regular permit issued by the authority for industrial purposes, to _ 
_be appointed by the authority;_ 
_(C)__ __ __a representative of a holder of an 
industrial _ 
_surface water right in the Guadalupe River Basin, to be appointed by _ 
_the Texas Commission on Environmental Quality;_ 
_(D)__ __ __a representative of a holder of a 
municipal _ 
_surface water right in the Guadalupe River Basin, to be appointed by _ 
_the Texas Commission on Environmental Quality;_ 
_(E)__ __ __a representative of a retail public 
utility _ 
_in whose service area the Comal Springs or San Marcos Springs is _ 
_located;_ 
_(F)__ __ __a representative of a holder of an 
initial _ 
_regular permit issued by the authority for irrigation, to be _ 
_appointed by the commissioner of agriculture;_ 
_(G)__ __ __a representative of an agricultural 
producer _ 
_from the Edwards Aquifer region, to be appointed by the _ 
_commissioner of agriculture;_ 
_(H)__ __ __a representative of environmental 
interests _ 
_from the Texas Living Waters Project, to be appointed by the _ 
_governing body of that project; and_ 
_(I)__ __ __a representative of recreational 
interests _ 
_in the Guadalupe River Basin, to be appointed by the Parks and _ 
_Wildlife Commission._ 
_(f)__ __ __The steering committee shall work with Texas A&M _ 
_University to:_ 
_(1)__ __ __establish a regular meeting schedule and 
publish _ 
_that schedule to encourage public participation; and_ 
_(2)__ __ __not later than October 31, 2007, hire a 
program _ 
_director to be housed at Texas A&M University._ 
_(g)__ __ __Texas A&M University may accept outside funding to 
pay _ 
_the salary and expenses of the program director hired under this _ 
_section and any expenses associated with the university's _ 
_participation in the creation of the steering committee or _ 
_subcommittees established by the steering committee._ 
_(h)__ __ __Where reasonably practicable or as required by 
law, any _ 
_meeting of the steering committee, the Edwards Aquifer area expert _ 
_science subcommittee, or another subcommittee established by the _ 
_steering committee must be open to the public._ 
_(i)__ __ __The steering committee appointed under this section _ 
_shall appoint an Edwards Aquifer area expert science subcommittee _ 
_not later than December 31, 2007. The expert science subcommittee _ 
_must be composed of an odd number of not fewer than seven or more _ 
_than 15 members who have technical expertise regarding the Edwards _ 
_Aquifer system, the threatened and endangered species that inhabit _ 
_that system, springflows, or the development of withdrawal _ 
_limitations. The Bureau of Economic Geology of The University of _ 
_Texas at Austin and the River Systems Institute at Texas State _ 
_University shall assist the expert science subcommittee. Chapter _ 
_2110, Government Code, does not apply to the size, composition, or _ 
_duration of the expert science subcommittee._ 
_(j)__ __ __The Edwards Aquifer area expert science 
subcommittee _ 
_shall, among other things, analyze species requirements in relation _ 
_to spring discharge rates and aquifer levels as a function of _ 
_recharge and withdrawal levels. Based on that analysis and the _ 
_elements required to be considered by the authority under Section _ 
_1.14 of this article, the expert science subcommittee shall, _ 
_through a collaborative process designed to achieve consensus, _ 
_develop recommendations for withdrawal reduction levels and stages _ 
_for critical period management including, if appropriate, _ 
_establishing separate and possibly different withdrawal reduction _ 
_levels and stages for critical period management for different _ 
_pools of the aquifer needed to maintain target spring discharge and _ 
_aquifer levels. The expert science subcommittee shall submit its _ 
_recommendations to the steering committee and all other _ 
_stakeholders involved in the recovery implementation program under _ 
_this section._ 
_(k)__ __ __The initial recommendations of the Edwards Aquifer 
area _ 
_expert science subcommittee must be completed and submitted to the _ 
_steering committee and other stakeholders not later than December _ 
_31, 2008, and should include an evaluation:_ 
_(1)__ __ __of the option of designating a separate San 
Marcos _ 
_pool, of how such a designation would affect existing pools, and of _ 
_the need for an additional well to measure the San Marcos pool, if _ 
_designated;_ 
_(2)__ __ __of the necessity to maintain minimum 
springflows, _ 
_including a specific review of the necessity to maintain a flow to _ 
_protect the federally threatened and endangered species; and_ 
_(3)__ __ __as to whether adjustments in the trigger 
levels _ 
_for the San Marcos Springs flow for the San Antonio pool should be _ 
_made._ 
_(l)__ __ __In developing its recommendations, the Edwards 
Aquifer _ 
_area expert science subcommittee shall:_ 
_(1)__ __ __consider all reasonably available science, _ 
_including any Edwards Aquifer-specific studies, and base its _ 
_recommendations solely on the best science available; and_ 
_(2)__ __ __operate on a consensus basis to the maximum 
extent _ 
_possible._ 
_(m)__ __ __After development of the cooperative agreement, the _ 
_steering committee, with the assistance of the Edwards Aquifer area _ 
_expert science subcommittee and with input from the other recovery _ 
_implementation program stakeholders, shall prepare and submit _ 
_recommendations to the authority. The recommendations must:_ 
_(1)__ __ __include a review of the critical period 
management _ 
_plan, to occur at least once every five years;_ 
_(2)__ __ __include specific monitoring, studies, and _ 
_activities that take into account changed conditions and _ 
_information that more accurately reflects the importance of _ 
_critical period management; and_ 
_(3)__ __ __establish a schedule for continuing the 
validation _ 
_or refinement of the critical period management plan adopted by the _ 
_authority and the strategies to achieve the program and cooperative _ 
_agreement described by this section._ 
_(n)__ __ __In this subsection, "recharge facility" means a 
dam, _ 
_reservoir, or other method of recharge project and associated _ 
_facilities, structures, or works but does not include facilities _ 
_designed to recirculate water at Comal or San Marcos Springs. The _ 
_steering committee shall establish a recharge facility feasibility _ 
_subcommittee to:_ 
_(1)__ __ __assess the need for the authority or any 
other _ 
_entity to own, finance, design, construct, operate, or maintain _ 
_recharge facilities;_ 
_(2)__ __ __formulate plans to allow the authority or any _ 
_other entity to own, finance, design, construct, operate, or _ 
_maintain recharge facilities;_ 
_(3)__ __ __make recommendations to the steering 
committee as _ 
_to how to calculate the amount of additional water that is made _ 
_available for use from a recharge project including during times of _ 
_critical period reductions;_ 
_(4)__ __ __maximize available federal funding for the _ 
_authority or any other entity to own, finance, design, construct, _ 
_operate, or maintain recharge facilities; and_ 
_(5)__ __ __evaluate the financing of recharge 
facilities, _ 
_including the use of management fees or special fees to be used for _ 
_purchasing or operating the facilities._ 
_(o)__ __ __The steering committee may establish other _ 
_subcommittees as necessary, including a hydrology subcommittee, a _ 
_community outreach and education subcommittee, and a water supply _ 
_subcommittee._ 
_(p)__ __ __On execution of the memorandum of agreement 
described by _ 
_Subsection (b) of this section, the steering committee described by _ 
_Subsection (e) of this section may, by majority vote of its members, _ 
_vote to add members to the steering committee, change the makeup of _ 
_the committee, or dissolve the committee. If the steering _ 
_committee is dissolved, the program director hired under Subsection _ 
_(f) of this section shall assume the duties of the steering _ 
_committee._ 
_(q)__ __ __The authority shall provide an annual report to the _ 
_governor, lieutenant governor, and speaker of the house of _ 
_representatives not later than January 1 of each year that details:_ 
_(1)__ __ __the status of the recovery implementation 
program _ 
_development process;_ 
_(2)__ __ __the likelihood of completion of the recovery _ 
_implementation program and the cooperative agreement described by _ 
_Subsection (c) of this section;_ 
_(3)__ __ __the extent to which the recommendations of 
the _ 
_Edwards Aquifer area expert science subcommittee are being _ 
_considered and implemented by the authority;_ 
_(4)__ __ __any other actions that need to be taken in 
response _ 
_to each recommendation;_ 
_(5)__ __ __reasons explaining why any recommendation _ 
_received has not been implemented; and_ 
_(6)__ __ __any other issues the authority considers of 
value _ 
_for the efficient and effective completion of the program and the _ 
_cooperative agreement under this section._ 
SECTION 12.07.  Subsections (b), (h), and (i), Section 1.29, 
Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, 
are amended to read as follows: 
(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 _36_ [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. 
(h)  _Fees assessed by the authority may not be used to fund _ 
_the cost of reducing withdrawals or retiring permits or of _ 
_judgments or claims related to withdrawals or permit retirements_ 
[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 _and other stakeholders, including state _ 
_agencies, listed under Section 1.26A of this article_ shall provide 
money as necessary[, but not to exceed five percent of the money 
collected under Subsection (d) of this section,] to finance _the _ 
_activities of the steering committee and any subcommittees _ 
_appointed by the steering committee and the program director of the _ 
_recovery implementation program under Section 1.26A of this _ 
_article. The authority shall provide, as necessary, up to $75,000 _ 
_annually, adjusted for changes in the consumer price index, to _ 
_finance_ the South Central Texas Water Advisory Committee's 
administrative expenses and programs authorized under this 
article. 
SECTION 12.08.  Subsection (a), Section 1.45, Chapter 626, 
Acts of the 73rd Legislature, Regular Session, 1993, is amended to 
read as follows: 
(a)  The authority may _own, finance, design, construct,_ 
[build or] operate_, and maintain_ recharge dams _and associated _ 
_facilities, structures, or works_ in the _contributing or_ 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_, and the recharge project is _ 
_not designed to recirculate water at Comal or San Marcos Springs_. 
SECTION 12.09.  Subsections (b) and (d), Section 1.14, 
Section 1.21, and Subsections (a), (c), and (d), Section 1.29, 
Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, 
are repealed. 
SECTION 12.10.  (a)  Before January 1, 2012, a suit may not 
be instituted in a state court contesting: 
(1)  the validity or implementation of this article; or 
(2)  the groundwater withdrawal amounts recognized in 
Section 1.14, Chapter 626, Acts of the 73rd Legislature, Regular 
Session, 1993, as amended by this Act. 
(b)  If applicable, a party that files a suit in any court 
shall be automatically removed from the steering committee 
established under Section 1.26A, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, as added by this Act. 
(c)  A suit against the Edwards Aquifer Authority may not be 
instituted or maintained by a person who owns, holds, or uses a 
surface water right and claims injury or potential injury to that 
right for any reason, including any actions taken by the Edwards 
Aquifer Authority to implement or enforce Article 1, Chapter 626, 
Acts of the 73rd Legislature, Regular Session, 1993, as amended. 
This section does not apply to suits brought pursuant to Section 
1.45, Chapter 626, Acts of the 73rd Legislature, Regular Session, 
1993. 
SECTION 12.11.  The change in law made by this article 
applies only to a cause of action filed on or after the effective 
date of this article. A cause of action that is filed before the 
effective date of this article is governed by the law in effect 
immediately before the effective date of this article, and that law 
is continued in effect for that purpose. 
SECTION 12.12.  This article takes effect immediately if 
this Act 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 article takes effect September 1, 2007. 
ARTICLE 13. TERRITORY OF CULBERSON COUNTY GROUNDWATER CONSERVATION 
DISTRICT 
SECTION 13.01.  Chapter 1075, Acts of the 75th Legislature, 
Regular Session, 1997, is amended by adding Section 3A to read as 
follows: 
_Sec.__ __3A.__ __ __In addition to the portions of Culberson 
County _ 
_included in the boundaries of the district on August 31, 2007, the _ 
_boundaries of the district include all of the remaining territory _ 
_in Culberson County._ 
SECTION 13.02.  (a)  The annexation under Section 3A, 
Chapter 1075, Acts of the 75th Legislature, Regular Session, 1997, 
as added by this article, of the additional territory in Culberson 
County that was not included in the boundaries of the Culberson 
County Groundwater Conservation District on August 31, 2007, is 
subject to ratification at an election held under Section 36.328, 
Water Code, and this section in which only the voters residing in 
the territory to be annexed are eligible to vote. 
(b)  The board of directors of the Culberson County 
Groundwater Conservation District shall hold the ratification 
election on the first uniform election date that occurs after the 
effective date of this article that allows for compliance with the 
time requirements of the Election Code. 
(c)  If a majority of the voters voting at the ratification 
election vote in favor of the annexation, the Culberson County 
Groundwater Conservation District boundaries include all of 
Culberson County. 
(d)  If a majority of the voters voting at the ratification 
election do not vote in favor of the annexation, the Culberson 
County Groundwater Conservation District boundaries are unchanged 
and this article expires. 
ARTICLE 14.  EFFECTIVE DATE 
SECTION 14.01.  Except as otherwise provided by this Act, 
this Act takes effect September 1, 2007. 
 
 
 
 
 
______________________________  ______________________________ 
President of the Senate  Speaker of the House 
 
I hereby certify that S.B. No. 3 passed the Senate on 
March 27, 2007, by the following vote:  Yeas 30, Nays 0; 
May 24, 2007, Senate refused to concur in House amendments and 
requested appointment of Conference Committee; May 26, 2007, House 
granted request of the Senate; May 27, 2007, Senate adopted 
Conference Committee Report by the following vote:  Yeas 29, 
Nays 1. 
 
 
______________________________ 
Secretary of the Senate 
 
I hereby certify that S.B. No. 3 passed the House, with 
amendments, on May 23, 2007, by the following vote:  Yeas 133, 
Nays 8, one present not voting; May 26, 2007, House granted request 
of the Senate for appointment of Conference Committee; 
May 28, 2007, House adopted Conference Committee Report by the 
following vote:  Yeas 113, Nays 28, two present not voting. 
 
 
______________________________ 
Chief Clerk of the House 
 
 
 
Approved: 
 
______________________________ 
Date 
 
 
______________________________ 
Governor