By:  Armbrister, et al.                               S.B. No. 1477
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the creation, administration, powers, duties,
    1-2  operation, and financing of the Edwards Aquifer Authority and the
    1-3  management of the Edwards Aquifer; granting the power of eminent
    1-4  domain; authorizing the issuance of bonds; providing civil and
    1-5  criminal penalties; and validating the creation of the Uvalde
    1-6  County Underground Water Conservation District.
    1-7        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-8                               ARTICLE 1
    1-9        SECTION 1.01.  FINDINGS AND DECLARATION OF POLICY.  The
   1-10  legislature finds that the Edwards Aquifer is a unique and complex
   1-11  hydrological system, with diverse economic and social interests
   1-12  dependent on the aquifer for water supply.  In keeping with that
   1-13  finding, the Edwards Aquifer is declared to be a distinctive
   1-14  natural resource in this state, a unique aquifer, and not an
   1-15  underground stream.  To sustain these diverse interests and that
   1-16  natural resource, a special regional management district is
   1-17  required for the effective control of the resource to protect
   1-18  terrestrial and aquatic life, domestic and municipal water
   1-19  supplies, the operation of existing industries, and the economic
   1-20  development of the state.  Use of water in the district for
   1-21  beneficial purposes requires that all reasonable measures be taken
   1-22  to be conservative in water use.
   1-23        SECTION 1.02.  Creation.  (a)  A conservation and reclamation
   1-24  district, to be known as the Edwards Aquifer Authority, is created
    2-1  in all or part of Atascosa, Bexar, Caldwell, Comal, Guadalupe,
    2-2  Hays, Medina, and Uvalde counties.  A confirmation  election is not
    2-3  necessary.  The authority is a governmental agency and a body
    2-4  politic and corporate.
    2-5        (b)  The authority is created under and is essential to
    2-6  accomplish the purposes of Article XVI, Section 59, of the Texas
    2-7  Constitution.
    2-8        SECTION 1.03.  DEFINITIONS.  In this article:
    2-9              (1)  "Aquifer" means the Edwards Aquifer, which is that
   2-10  portion of an arcuate belt of porous, water-bearing, predominately
   2-11  carbonate rocks known as the Edwards and Associated Limestones in
   2-12  the Balcones Fault Zone extending from west to east to northeast
   2-13  from the hydrologic division near Brackettville in Kinney County
   2-14  that separates underground flow toward the Comal Springs and San
   2-15  Marcos Springs from underground flow to the Rio Grande Basin,
   2-16  through Uvalde, Medina, Atascosa, Bexar, Guadalupe, and Comal
   2-17  counties, and in Hays County south of the hydrologic division near
   2-18  Kyle that separates flow toward the San Marcos River from flow to
   2-19  the Colorado River Basin.
   2-20              (2)  "Authority" means the Edwards Aquifer Authority.
   2-21              (3)  "Beneficial use" means the use of the amount of
   2-22  water that is reasonable and necessary for a lawful purpose, if
   2-23  reasonable intelligence and reasonable diligence are used in
   2-24  applying the water to that purpose.
   2-25              (4)  "Board" means the board of directors of the
   2-26  authority.
   2-27              (5)  "Commission" means the Texas Natural Resource
    3-1  Conservation Commission.
    3-2              (6)  "Conservation" means any measure that would
    3-3  sustain or enhance water supply.
    3-4              (7)  "Domestic use" means use of water by a person
    3-5  owning the well from which the water is withdrawn and that person's
    3-6  household for:
    3-7                    (A)  drinking, washing, or culinary purposes;
    3-8                    (B)  irrigation of lawns;
    3-9                    (C)  irrigation of a family garden or orchard the
   3-10  produce of which is for household consumption only; and
   3-11                    (D)  watering of domestic animals not raised,
   3-12  maintained, or sold for commercial purposes.
   3-13              (8)  "Existing user" means a person who has withdrawn
   3-14  and beneficially used underground water from the aquifer on or
   3-15  before June 1, 1993.
   3-16              (9)  "Industrial use" means the use of water for or in
   3-17  connection with commercial or industrial activities, including
   3-18  manufacturing, commercial feedlot operations, commercial fish
   3-19  production, bottling, brewing, food processing, scientific research
   3-20  and technology, recycling, production of concrete, asphalt, and
   3-21  cement, cooling-tower heat exchange, commercial uses of water for
   3-22  tourism, entertainment, and hotel or motel lodging, generation of
   3-23  power other than hydroelectric, and other business activities.
   3-24              (10)  "Irrigation use" means the use of water for the
   3-25  irrigation of pastures and commercial crops, including orchards.
   3-26              (11)  "Livestock" means animals, beasts, or poultry
   3-27  collected or raised for pleasure, recreational use, or commercial
    4-1  use.
    4-2              (12)  "Municipal use" means the use of water within or
    4-3  outside of a municipality and its environs whether supplied by a
    4-4  person, privately owned utility, political subdivision, or other
    4-5  entity, including the use of treated effluent for certain purposes
    4-6  specified as follows.  The term includes:
    4-7                    (A)  the use of water for domestic use, the
    4-8  watering of lawns and family gardens, fighting fires, sprinkling
    4-9  streets, flushing sewers and drains, water parks and parkways, and
   4-10  recreation, including public and private swimming pools;
   4-11                    (B)  the use of water in industrial and
   4-12  commercial enterprises supplied by a municipal distribution system
   4-13  without special construction to meet its demands; and
   4-14                    (C)  the application of treated effluent on land
   4-15  under a permit issued under Chapter 26, Water Code, if:
   4-16                          (i)  the primary purpose of the application
   4-17  is the treatment or necessary disposal of the effluent;
   4-18                          (ii)  the application site is a park,
   4-19  parkway, golf course, or other landscaped area within the
   4-20  authority's boundaries; or
   4-21                          (iii)  the effluent applied to the site is
   4-22  generated within an area for which the commission has adopted a
   4-23  rule that prohibits the discharge of the effluent.
   4-24              (13)  "Person" means an individual, corporation,
   4-25  organization, government or governmental subdivision or agency,
   4-26  business trust, estate, trust, partnership, association, and any
   4-27  other legal entity.
    5-1              (14)  "Pollution" means the alteration of the physical,
    5-2  thermal, chemical, or biological quality of any water in the state,
    5-3  or the contamination of any water in the state, that renders the
    5-4  water harmful, detrimental, or injurious to humans, animal life,
    5-5  vegetation, property, or public health, safety, or welfare or that
    5-6  impairs the usefulness of the public enjoyment of the water for any
    5-7  lawful or reasonable purpose.
    5-8              (15)  "Reuse" means authorized use for one or more
    5-9  beneficial purposes of use of water that remains unconsumed after
   5-10  the water is used for the original purpose of use and before the
   5-11  water is discharged or otherwise allowed to flow into a
   5-12  watercourse, lake, or other body of state-owned water.
   5-13              (16)  "Underground water" has the meaning assigned by
   5-14  Section 52.001, Water Code.
   5-15              (17)  "Waste" means:
   5-16                    (A)  withdrawal of underground water from the
   5-17  aquifer at a rate and in an amount that causes or threatens to
   5-18  cause intrusion into the  reservoir of water unsuitable for
   5-19  agricultural, gardening, domestic, or stock raising purposes;
   5-20                    (B)  the flowing or producing of wells from the
   5-21  aquifer if the water produced is not used for a beneficial purpose;
   5-22                    (C)  escape of underground water from the aquifer
   5-23  to any other reservoir that does not contain underground water;
   5-24                    (D)  pollution or harmful alteration of
   5-25  underground water in the aquifer by salt water or other deleterious
   5-26  matter admitted from another stratum or from the surface of the
   5-27  ground;
    6-1                    (E)  wilfully or negligently causing, suffering,
    6-2  or permitting underground water from the aquifer to escape into any
    6-3  river, creek, natural watercourse, depression, lake, reservoir,
    6-4  drain, sewer, street, highway, road, or road ditch, or onto any
    6-5  land other than that of the owner of the well; or
    6-6                    (F)  underground water pumped from the aquifer
    6-7  for irrigation that escapes as irrigation tailwater onto land other
    6-8  than that of the owner of the well unless permission has been
    6-9  granted by the occupant of the land receiving the discharge.
   6-10              (18)  "Well" means a bored, drilled, or driven shaft or
   6-11  an artificial opening in the ground made by digging, jetting, or
   6-12  some other method where the depth of the shaft or opening is
   6-13  greater than its largest surface dimension, but does not include a
   6-14  surface pit, surface excavation, or natural depression.
   6-15              (19)  "Well J-17" means state well number AY-68-37-203
   6-16  located in Bexar County.
   6-17              (20)  "Well J-27" means state well number YP-69-50-302
   6-18  located in Uvalde County.
   6-19              (21)  "Withdrawal" means an act or a failure to act
   6-20  that results in taking water from the aquifer by or through
   6-21  man-made facilities, including pumping, withdrawing, or diverting
   6-22  underground water.
   6-23        SECTION 1.04.  BOUNDARIES.  The authority includes the
   6-24  territory contained within the following area:
   6-25              (1)  all of the areas of Bexar, Medina, and Uvalde
   6-26  counties;
   6-27              (2)  all of the area of Comal County, except that
    7-1  portion of the county that lies North of the North line through the
    7-2  county of Subdivision No. 1 of the Underground Water Reservoir in
    7-3  the Edwards Limestone, Balcones escarpment area, as defined by the
    7-4  order of the Board of Water Engineers dated January 10, 1957;
    7-5              (3)  the part of Caldwell County beginning with the
    7-6  intersection of Hays County Road 266 and the San Marcos River;
    7-7        THENCE southeast along the San Marcos River to the point of
    7-8  intersection of Caldwell, Guadalupe, and Gonzales counties;
    7-9        THENCE southeast along the Caldwell-Gonzales County line to
   7-10  its intersection with U.S. Highway 183;
   7-11        THENCE north along U.S. Highway 183 to its intersection with
   7-12  State Highway 21;
   7-13        THENCE southwest along State Highway 21 to its intersection
   7-14  with Hays County Road 266;
   7-15        THENCE southwest along Hays County Road 266 to the place of
   7-16  beginning;
   7-17              (4)  the part of Hays County beginning on the northwest
   7-18  line of the R. B. Moore Survey, Abstract 412, in Comal County where
   7-19  it crosses the Comal County-Hays County line northeast along the
   7-20  northwest line of said Survey to the northeast corner of said
   7-21  Survey in Hays County, Texas;
   7-22        THENCE southeast in Hays County, Texas across the Jas.
   7-23  Deloach Survey, Abstract 878, to the most westerly northwest corner
   7-24  of the Presidio Irrigation Co. Survey, Abstract 583;
   7-25        THENCE northeast along the northwest line of said Survey to
   7-26  its most northerly northwest corner;
   7-27        THENCE continuing in the same line across the R.S. Clayton
    8-1  Survey 2, Block 742, to the west line of the H. & G. N. RR. Co.
    8-2  Survey 1, Abstract 668;
    8-3        THENCE north along the west line of said Survey to its
    8-4  northwest corner;
    8-5        THENCE east along the north line of said Survey to its
    8-6  northeast corner;
    8-7        THENCE northeast across the David Wilson Survey 83, Abstract
    8-8  476, to the southeast corner of the F. W. Robertson Survey 71,
    8-9  Abstract 385;
   8-10        THENCE north along the east line of said Survey to the
   8-11  southwest corner of the Benjamin Weed Survey 72, Abstract 483;
   8-12        THENCE east along the south line of said Survey to its
   8-13  southeast corner;
   8-14        THENCE northeast across the William Gray Survey 73, Abstract
   8-15  92, and the Murray Bailey Survey 75, Abstract 42, to the southwest
   8-16  corner of the D.Holderman Survey 33, Abstract 225;
   8-17        THENCE north along the west line of said Survey to its
   8-18  northwest corner;
   8-19        THENCE continuing in the same line to the north line of the
   8-20  Day Land & Cattle Co. Survey 672;
   8-21        THENCE west along said north line of said Survey to its
   8-22  northwest corner, which is in the east line of the Jesse Williams
   8-23  Survey 4 to the northeast corner of said Survey;
   8-24        THENCE west along the north line of said Survey to the
   8-25  Southwest corner of the Amos Singleton Survey 106, Abstract 410;
   8-26        THENCE north along the west lines of said Amos Singleton
   8-27  Survey 106 and the Watkins Nobles Survey 107, Abstract 346, to the
    9-1  northwest corner of said Watkins Nobles Survey 107;
    9-2        THENCE east along the north line of said Survey to the
    9-3  southwest corner of the Jesusa Perez Survey 14, Abstract 363;
    9-4        THENCE north along the west line of said Jesusa Perez Survey
    9-5  14 to its northwest corner;
    9-6        THENCE east along the north line of said Survey to its
    9-7  northeast corner;
    9-8        THENCE, south along the east line of said Survey for a
    9-9  distance of approximately 10,000 feet to its intersection with
   9-10  Ranch Road 150;
   9-11        THENCE, east by southeast along Ranch Road 150 approximately
   9-12  24,500 feet to its intersection with the southern boundary line of
   9-13  the Andrew Dunn Survey 9, Abstract 4;
   9-14        THENCE, east along the south line of said survey as it
   9-15  extends and becomes the southern boundary line of the Morton M.
   9-16  McCarver Survey 4, Abstract 10, for a distance of approximately
   9-17  7,000 feet to its intersection with Ranch Road 2770;
   9-18        THENCE, south on Ranch Road 2770 for a distance of
   9-19  approximately 400 feet to its intersection with Farm-to-Market Road
   9-20  171;
   9-21        THENCE, east along Farm-to-Market Road 171 for a distance of
   9-22  approximately 10,500 feet to its intersection with Farm-to-Market
   9-23  Road 25;
   9-24        THENCE, north by northeast along Farm-to-Market Road 25 for a
   9-25  distance of approximately 3,100 feet to its intersection with
   9-26  Farm-to-Market Road 131;
   9-27        THENCE, east by southeast along Farm-to-Market Road 131 for a
   10-1  distance of approximately 3,000 feet to its intersection with the
   10-2  east line of the Thomas G. Allen Survey, Abstract 26;
   10-3        THENCE south along the east line of said Thomas G. Allen
   10-4  Survey to the most northerly northwest corner of the Elisha Pruett
   10-5  Survey 23, Abstract 376;
   10-6        THENCE southwest along a west line of said Elisha Pruett
   10-7  Survey 23 to the west corner of said Survey;
   10-8        THENCE southeast along the southwest line of said Survey to
   10-9  the north corner of the John Stewart Survey, Abstract 14;
  10-10        THENCE southwest along the northwest line of said John
  10-11  Stewart Survey to its west corner;
  10-12        THENCE continuing in the same line to the most northerly
  10-13  southwest line of the John Jones Survey, Abstract 263;
  10-14        THENCE southeast along said southwest line to an interior
  10-15  corner of said John Jones Survey;
  10-16        THENCE southwest along the most southerly northwest line of
  10-17  said Survey to the southwest corner of said Survey;
  10-18        THENCE southeast along the south line of said Survey to the
  10-19  north corner of the James W. Williams Survey 11, Abstract 473;
  10-20        THENCE southwest along the northwest line of said James W.
  10-21  Williams Survey 11 to its west corner;
  10-22        THENCE southeast along the southwest line of said Survey to
  10-23  the north right-of-way line of the I. & G. N. RR.;
  10-24        THENCE southwest along said right-of-way of said I. & G. N.
  10-25  RR. to the Hays County-Comal County line;
  10-26        THENCE south along said county line to the northwest line of
  10-27  the R. B. Moore Survey, Abstract 412, in Hays County where it
   11-1  crosses the Hays County-Comal County line;
   11-2              (5)  all of the territory of Hays County contained
   11-3  within the following described area:
   11-4        Beginning on the most southern point of Hays County at the
   11-5  intersection of Hays, Comal, and Guadalupe Counties; then
   11-6  continuing in a northeasterly direction along the Hays-Guadalupe
   11-7  county line to its intersection with the Hays-Caldwell county line;
   11-8  then continuing along the Hays-Caldwell county line to an
   11-9  intersection with Farm-to-Market Road 150; then continuing in a
  11-10  northwesterly direction along Farm-to-Market Road 150 to the
  11-11  intersection with the existing southern boundary of the part of
  11-12  Hays County described in Subdivision (3) of this section; then
  11-13  continuing in a southwesterly direction along the existing southern
  11-14  boundary of the part of Hays County described in Subdivision (3) of
  11-15  this section to the intersection with the Hays-Comal county line;
  11-16  then continuing in a southerly direction along the Hays-Comal
  11-17  county line to the point of beginning;
  11-18              (6)  the part of Guadalupe County beginning at the
  11-19  Guadalupe County-Caldwell County-Hays County line at the San Marcos
  11-20  River in the northeast corner of Guadalupe County, Texas.
  11-21        THENCE southwest along the Guadalupe County-Hays County line
  11-22  to the intersect of the Guadalupe County-Hays County-Comal County
  11-23  line.
  11-24        THENCE southwest along the Guadalupe County-Comal County line
  11-25  to the intersect of the Guadalupe County-Comal County-Bexar County
  11-26  intersect at the Cibolo creek.
  11-27        THENCE south along the Guadalupe County-Bexar County line
   12-1  along the Cibolo creek to the intersect of the Guadalupe
   12-2  County-Bexar County-Wilson County line.
   12-3        THENCE south along the Guadalupe County-Wilson County line
   12-4  along the Cibolo creek to the intersect and crossing of Guadalupe
   12-5  County Road 417.
   12-6        THENCE east along Guadalupe County Road 417 to the intersect
   12-7  of Guadalupe County Road 417 and Guadalupe County Road 412.
   12-8        THENCE northeast along Guadalupe County Road 412 to the
   12-9  intersect of Guadalupe County Road 412 and Guadalupe County Road
  12-10  411 A.
  12-11        THENCE east along Guadalupe County Road 411 A to the
  12-12  intersect of Guadalupe County Road 411 A and Farm-to-Market road
  12-13  number 725.
  12-14        THENCE north along Farm to Market Road 725 to the intersect
  12-15  of Farm to Market  Road 725 and Interstate Highway 10.
  12-16        THENCE east along Interstate Highway 10 to the intersect of
  12-17  Interstate Highway 10 and State Highway 90.
  12-18        THENCE east along State Highway 90 to the Guadalupe
  12-19  County-Caldwell County line at the San Marcos river.
  12-20        THENCE northwest along the Guadalupe County-Caldwell County
  12-21  line along the San Marcos river to the place of beginning; and
  12-22              (7)  the part of Atascosa County beginning on the north
  12-23  line of the Robt. C. Rogers Survey, at the Bexar County-Atascosa
  12-24  County line, to its northwest corner, which is the northeast corner
  12-25  of the F. Brockinzen Survey, Abstract 86;
  12-26        THENCE south along the east line of said Survey passing
  12-27  through its southeast corner and continuing south along the east
   13-1  line of the F. Brockinzen Survey, Abstract 90, to its southeast
   13-2  corner;
   13-3        THENCE west along the south line of said survey to its
   13-4  southwest corner;
   13-5        THENCE north along the west line of said F. Brockinzen Survey
   13-6  to the southeast corner of the B. Bonngartner Survey, Abstract 87;
   13-7        THENCE west along the south line of said B. Bonngartner
   13-8  Survey passing through its southwest corner and continuing along
   13-9  the south line of the J. B. Goettlemann Survey, Abstract 309, to
  13-10  the Atascosa County-Medina County line;
  13-11        THENCE north along the Atascosa County-Medina County line to
  13-12  the Bexar County line;
  13-13        THENCE east along the Atascosa County-Bexar County Line to
  13-14  the place of beginning.
  13-15        SECTION 1.05.  FINDINGS RELATING TO BOUNDARIES.  The
  13-16  legislature finds that the boundaries and field notes of the
  13-17  authority form a closure.  A mistake in the field notes or in
  13-18  copying the field notes in the legislative process does not affect
  13-19  the organization, existence, or validity of the district or the
  13-20  legality or operation of the district or its governing body.
  13-21        SECTION 1.06.  FINDING OF BENEFIT.  (a)  The legislature
  13-22  finds that the water in the unique underground system of
  13-23  water-bearing formations known as the Edwards-Balcones Fault Zone
  13-24  Aquifer has a hydrologic interrelationship to the Guadalupe, San
  13-25  Antonio, San Marcos, Comal, Frio, and Nueces river basins, is the
  13-26  primary source of water for the residents of the region, and is
  13-27  vital to the general economy and welfare of this state.  The
   14-1  continuous and sustained withdrawal of underground water from the
   14-2  aquifer at the rates between 1982 and 1993 or greater rates may
   14-3  result in damage to the aquifer, the Comal and San Marcos springs,
   14-4  and the general economy and welfare of this state.  Before the
   14-5  effective date of this Act there was  no effective, consistent, or
   14-6  comprehensive regulation of the withdrawal and use of underground
   14-7  water from the aquifer and the withdrawal and use of that
   14-8  underground water will continue to increase unless effective
   14-9  management is implemented.  The legislature finds that it is
  14-10  necessary and appropriate and a benefit to the welfare of this
  14-11  state to provide for the recognition and management of rights to
  14-12  withdraw underground water from the aquifer through the application
  14-13  of management mechanisms appropriate to that unique system.
  14-14        (b)  The legislature further finds that all of the land and
  14-15  other property included within the boundaries of the authority will
  14-16  be benefitted by exercise of the powers of the authority and by the
  14-17  works and projects that are to be accomplished by the authority
  14-18  under powers conferred by Article XVI, Section 59, of the Texas
  14-19  Constitution.  The authority is created to serve a public use and
  14-20  benefit.
  14-21        SECTION 1.07.  COMPENSATION FOR PROPERTY.  The legislature
  14-22  intends that just compensation be paid in the event that
  14-23  implementation of this article causes a taking of private property
  14-24  or results in the impairment of a contract in contravention of the
  14-25  Texas or federal constitution.
  14-26        SECTION 1.08.  GENERAL POWERS.  (a)  The authority has all of
  14-27  the powers, rights, and privileges necessary to manage, conserve,
   15-1  preserve, and protect the aquifer and to increase the recharge of,
   15-2  and prevent the waste or pollution of water in, the aquifer.  The
   15-3  authority has all of the rights, powers, privileges, authority,
   15-4  functions, and duties provided by the general law of this state,
   15-5  including Chapters 50 and 52, Water Code, applicable to an
   15-6  authority created under Article XVI, Section 59, of the Texas
   15-7  Constitution.  This article prevails over any provision of general
   15-8  law that is in conflict or inconsistent with this article regarding
   15-9  the area of the authority's jurisdiction.
  15-10        (b)  The authority's powers regarding underground water apply
  15-11  only to underground water within or withdrawn from the aquifer.
  15-12        (c)  The rights, powers, privileges, authority, functions,
  15-13  and duties of the authority are subject to the continuing right of
  15-14  supervision of the state to be exercised by and through the
  15-15  commission.
  15-16        SECTION 1.09.  BOARD OF DIRECTORS.  (a)  The authority is
  15-17  governed by a board of nine directors.
  15-18        (b)  A board member must be a resident of or qualified voter
  15-19  in a county all or part of which is included within the boundaries
  15-20  of the authority.
  15-21        (c)  The board consists of:
  15-22              (1)  three residents of Bexar County, with two
  15-23  residents appointed by the governing body of the City of San
  15-24  Antonio and one resident appointed by the Commissioners Court of
  15-25  Bexar County to represent cities and communities in the county
  15-26  other than the City of San Antonio;
  15-27              (2)  one resident of Comal County or the City of New
   16-1  Braunfels appointed by the Commissioners Court of Comal County;
   16-2              (3)  one resident of Hays County appointed by the
   16-3  governing body of the City of San Marcos;
   16-4              (4)  one resident of Medina County appointed by the
   16-5  governing body of the Medina Underground Water Conservation
   16-6  District;
   16-7              (5)  one resident of Uvalde County appointed by the
   16-8  governing body of the Uvalde Underground Water Conservation
   16-9  District;
  16-10              (6)  one person appointed by the Commissioners Court of
  16-11  Bexar County who is an active operator engaged in irrigated
  16-12  agriculture to alternate terms with a resident of Atascosa County
  16-13  appointed by the governing body of the Evergreen Underground Water
  16-14  Conservation District, with the person appointed by the Evergreen
  16-15  Underground Water Conservation District serving the first term; and
  16-16              (7)  one person appointed in rotation by the
  16-17  Commissioners Court of Guadalupe, Hays, or Comal County, with a
  16-18  person appointed by the Commissioners Court of Guadalupe County to
  16-19  serve the first term, followed by a person appointed by the
  16-20  Commissioners Court of Hays County to serve the second term,
  16-21  followed by a person appointed by the Commissioners Court of Comal
  16-22  County to serve the third term, and rotating in that order of
  16-23  appointment for subsequent terms.
  16-24        (d)  The Commissioners Court of Bexar County and the
  16-25  governing body of the City of San Antonio must make appointments
  16-26  under Subsection (c) of this section that accurately reflect the
  16-27  ethnic composition of the population of Bexar County.
   17-1        (e)  The initial directors of the board shall draw lots to
   17-2  determine their terms.  Four initial directors serve terms that
   17-3  expire June 1, 1995.  Five initial directors serve terms that
   17-4  expire June 1, 1997.  Subsequent directors shall be appointed to
   17-5  serve staggered four-year terms, the appropriate number of which
   17-6  expire June 1 of each odd-numbered year.
   17-7        (f)  At the initial meeting of the board, the members shall
   17-8  select one member to serve as presiding officer.  The presiding
   17-9  officer serves a term set by rule of the board not to exceed four
  17-10  years.
  17-11        (g)  An act of the board is not valid unless adopted by the
  17-12  affirmative vote of a majority of the members of the board.
  17-13        (h)  Board members receive no compensation for service on the
  17-14  board but are entitled to reimbursement for actual and necessary
  17-15  expenses incurred in the performance of their duties.
  17-16        (i)  Board members shall hold office until a successor has
  17-17  been selected and approved and has qualified by taking the oath of
  17-18  office.
  17-19        (j)  If a vacancy on the board occurs, the governing body
  17-20  that appointed the vacating member shall appoint another person
  17-21  having the same qualifications required of the vacating member to
  17-22  serve the unexpired portion of the vacating member's term.
  17-23        SECTION 1.10.  AREA REPRESENTATIVES.  (a)  The commissioners
  17-24  court of each of the following counties shall appoint an area
  17-25  representative:
  17-26              (1)  Atascosa;
  17-27              (2)  Comal;
   18-1              (3)  Guadalupe;
   18-2              (4)  Hays;
   18-3              (5)  Medina; and
   18-4              (6)  Uvalde.
   18-5        (b)  The governing body of the City of San Antonio shall
   18-6  appoint an area representative for Bexar County.
   18-7        (c)  If an underground water conservation district has been
   18-8  created in a county:
   18-9              (1)  the general manager of the district serves as the
  18-10  area representative for the county; and
  18-11              (2)  the commissioners court of the county, or the
  18-12  governing body of the City of San Antonio in the case of Bexar
  18-13  County, may not appoint a representative for the county.
  18-14        (d)  An area representative appointed by a commissioners
  18-15  court or other governing body under Subsection (a) or (b) of this
  18-16  section serves at the pleasure of the court or body that appointed
  18-17  the representative.
  18-18        (e)  An area representative's duties include:
  18-19              (1)  assisting the authority in developing the
  18-20  authority's demand management plan for the county that the
  18-21  representative represents;
  18-22              (2)  assisting the authority to implement the demand
  18-23  management plan; and
  18-24              (3)  performing other duties requested by the board
  18-25  that the representative may practicably perform.
  18-26        SECTION 1.11.  ADVISORY COMMITTEE ON DOWNSTREAM WATER RIGHTS
  18-27  AND ISSUES.  (a)  The Edwards Aquifer Area Advisory Committee shall
   19-1  advise the board on downstream water rights and issues.  The
   19-2  advisory committee consists of members appointed in accordance with
   19-3  Subsection (b) of this section and one member appointed by the
   19-4  commissioners court of each of the following counties, except that
   19-5  Atascosa and Guadalupe counties may not have a representative on
   19-6  the advisory committee when the county has a representative member
   19-7  on the board:
   19-8              (1)  Atascosa;
   19-9              (2)  Caldwell;
  19-10              (3)  Calhoun;
  19-11              (4)  DeWitt;
  19-12              (5)  Goliad;
  19-13              (6)  Gonzales;
  19-14              (7)  Guadalupe;
  19-15              (8)  Karnes;
  19-16              (9)  Nueces;
  19-17              (10)  Refugio;
  19-18              (11)  San Patricio;
  19-19              (12)  Victoria; and
  19-20              (13)  Wilson.
  19-21        (b)  The governing body of each municipality that is in a
  19-22  county listed in Subsection (a) of this section and has a
  19-23  population of more than 50,000 may also appoint a member to the
  19-24  advisory committee.
  19-25        (c)  A member must be a resident or qualified voter of or
  19-26  engaged in business in a county all or part of which is included in
  19-27  the member's area of representation.
   20-1        (d)  The reimbursement of an advisory committee member for
   20-2  expenses is on the same terms as the reimbursement of board
   20-3  members.  An advisory committee member is not entitled to
   20-4  compensation.
   20-5        (e)  An advisory committee member holds office until a
   20-6  successor is appointed.
   20-7        (f)  The authority shall send to each advisory committee
   20-8  member all the communications of the authority that are extended to
   20-9  board members and may participate in board meetings to represent
  20-10  downstream water supply concerns and assist in solutions to those
  20-11  concerns.  Advisory committee members may not vote on a board
  20-12  decision.
  20-13        (g)  The advisory committee by resolution may request the
  20-14  board to reconsider  any board action that is considered
  20-15  prejudicial to downstream water interests.  If the board review
  20-16  does not result in a resolution satisfactory to the advisory
  20-17  committee, the advisory committee by resolution may request the
  20-18  commission to review the action.  The commission shall review the
  20-19  action and may make a recommendation to the board.
  20-20        (h)  The advisory committee shall meet to organize and elect
  20-21  a presiding officer.
  20-22        (i)  The presiding officer of the advisory committee shall
  20-23  submit a report assessing the effectiveness of the authority to the
  20-24  commission and the authority by March 31 of each even-numbered
  20-25  year.  The report must assess the effect on downstream water rights
  20-26  of the management of the aquifer.  The authority shall consider the
  20-27  report in managing the authority's affairs.
   21-1        SECTION 1.12.  GENERAL POWERS AND DUTIES OF THE BOARD AND
   21-2  AUTHORITY.  (a)  The board shall adopt rules necessary to carry out
   21-3  the authority's powers and duties under this article, including
   21-4  rules governing procedures of the board and authority.
   21-5        (b)  The authority shall ensure compliance with permitting,
   21-6  metering, and reporting requirements and shall regulate permits.
   21-7        (c)  The authority may issue orders to enforce this article
   21-8  or its rules.
   21-9        (d)  The authority may:
  21-10              (1)  issue or administer grants, loans, or other
  21-11  financial assistance to water users for water conservation and
  21-12  water reuse;
  21-13              (2)  enter into contracts;
  21-14              (3)  sue and be sued in its own name;
  21-15              (4)  receive gifts, grants, awards, and loans for use
  21-16  in carrying out its powers and duties;
  21-17              (5)  hire an executive director to be the chief
  21-18  administrator of the authority and other employees as necessary to
  21-19  carry out its powers and duties;
  21-20              (6)  delegate the power to hire employees to the
  21-21  executive director of the authority;
  21-22              (7)  own real and personal property;
  21-23              (8)  close abandoned, wasteful, or dangerous wells;
  21-24              (9)  hold permits under state law or under federal law
  21-25  pertaining to the Endangered Species Act of 1973 (16 U.S.C. Section
  21-26  1531 et seq.) and its amendments;
  21-27              (10)  enforce Chapter 32, Water Code, and commission
   22-1  rules adopted under that Act within the authority's boundaries; and
   22-2              (11)  require to be furnished to the authority water
   22-3  well drillers' logs that are required by Chapter 32, Water Code, to
   22-4  be kept and furnished to the commission.
   22-5        (e)  The authority may contract with a person who uses water
   22-6  from the aquifer for the authority or that person to construct,
   22-7  operate, own, finance, and maintain water supply facilities.
   22-8  Management fees or special fees may not be used for purchasing or
   22-9  operating these facilities.  For the purpose of this subsection,
  22-10  "water supply facility" includes a dam, reservoir, treatment
  22-11  facility, transmission facility, or recharge project.
  22-12        (f)  The authority has the power of eminent domain.  The
  22-13  authority may not acquire rights to underground water by the power
  22-14  of eminent domain.
  22-15        (g)  The authority is subject to the open meetings law,
  22-16  Chapter 271, Acts of the 60th Legislature, Regular Session, 1967
  22-17  (Article 6252-17, Vernon's Texas Civil Statutes), the open records
  22-18  law, Chapter 424, Acts of the 63rd Legislature, Regular Session,
  22-19  1973 (Article 6252-17a, Vernon's Texas Civil Statutes), and the
  22-20  Administrative Procedure and Texas Register Act (Article 6252-13a,
  22-21  Vernon's Texas Civil Statutes), and their subsequent amendments.
  22-22        SECTION 1.13.  SUNSET COMMISSION REVIEW.  (a)  The board is
  22-23  subject to review under the Texas Sunset Act (Chapter 325,
  22-24  Government Code) and its subsequent amendments but may not be
  22-25  abolished under that Act.  The review shall be conducted as if the
  22-26  board were scheduled to be abolished September 1, 2005.
  22-27        (b)  Unless members of the board are continued in office
   23-1  after the review, their membership expires September 1, 2005.
   23-2        (c)  When the membership of the board of directors expires
   23-3  under Subsection (b) of this section, a new board of directors
   23-4  shall be appointed as provided by this article, with each new
   23-5  member serving for the unexpired term of the member's predecessor.
   23-6  A member whose membership has expired under Subsection (b) is not
   23-7  eligible for reappointment under this subsection.
   23-8        SECTION 1.14.  WATER QUALITY.  The authority has the powers
   23-9  provided a local government under Subchapters D and E, Chapter 26,
  23-10  Water Code, to prevent pollution and enforce water quality
  23-11  standards within the authority's boundaries and in a buffer zone
  23-12  that includes all of the area less than 10 miles outside of the
  23-13  authority's boundaries.
  23-14        SECTION 1.15.  WITHDRAWALS.  (a)  Authorizations to withdraw
  23-15  water from the aquifer and all authorizations and rights to make a
  23-16  withdrawal under this Act shall be limited in accordance with this
  23-17  section to:
  23-18              (1)  protect the water quality of the aquifer;
  23-19              (2)  protect the water quality of the surface streams
  23-20  to which the aquifer provides springflow;
  23-21              (3)  achieve water conservation;
  23-22              (4)  maximize the beneficial use of water available for
  23-23  withdrawal from the aquifer;
  23-24              (5)  protect aquatic and wildlife habitat;
  23-25              (6)  protect species that are designated as threatened
  23-26  or endangered under applicable federal or state law; and
  23-27              (7)  provide for instream uses, bays, and estuaries.
   24-1        (b)  Except as provided by Subsections (d), (e), and (g) of
   24-2  this section and Section 1.27 of this article, for the period
   24-3  ending December 31, 2007, the amount of permitted withdrawals from
   24-4  the aquifer may not exceed 450,000 acre-feet of water for each
   24-5  calendar year.
   24-6        (c)  Except as provided by Subsections (d), (e), and (g) of
   24-7  this section and Section 1.27 of this article, for the period
   24-8  beginning January 1, 2008, the amount of permitted withdrawals from
   24-9  the aquifer may not exceed 400,000 acre-feet of water for each
  24-10  calendar year.
  24-11        (d)  If, through studies and, if necessary, implementation of
  24-12  water management strategies, including springflow augmentation,
  24-13  diversions downstream of the springs, supplemental recharge, and
  24-14  conjunctive management of surface and subsurface water, the
  24-15  authority determines that additional supplies are available from
  24-16  the aquifer or that the available supply is reduced, the authority,
  24-17  in consultation with appropriate state and federal agencies, may
  24-18  review and may increase or decrease the maximum amount of permitted
  24-19  withdrawals provided by this section and set a different maximum
  24-20  amount of permitted withdrawals.
  24-21        (e)  If the level of the aquifer is equal to or greater than
  24-22  665 feet above mean sea level as measured at Well J-17, the
  24-23  authority may authorize withdrawal from the San Antonio pool, on an
  24-24  interruptible basis, of additional amounts above the withdrawal
  24-25  limitations imposed in accordance with  this section.    If the
  24-26  level of the aquifer is equal to or greater than 865 feet at Well
  24-27  J-27, the authority may authorize withdrawal from the Uvalde pool,
   25-1  on an interruptible basis, of additional amounts above the
   25-2  withdrawal limits imposed in accordance with this section.  The
   25-3  authority shall limit the additional withdrawals to ensure that
   25-4  springflows are not affected during critical drought conditions.
   25-5        (f)  The authority by rule may define other pools within the
   25-6  aquifer, in accordance with hydrogeologic research, and may
   25-7  establish index wells for any pool to monitor the level of the
   25-8  aquifer to aid the regulation of withdrawals from the pools.
   25-9        (g)  To accomplish the purposes of this article, by June 1,
  25-10  1994, the authority, through a program, shall implement and enforce
  25-11  water management practices, procedures, and methods to ensure that,
  25-12  not later than December 31, 2012, the continuous minimum spring
  25-13  flows of the Comal Springs and the San Marcos Springs are
  25-14  maintained to protect endangered and threatened species to the
  25-15  extent required by federal law.  The authority from time to time as
  25-16  appropriate may revise the practices, procedures, and methods.  To
  25-17  meet this requirement, the authority shall require:
  25-18              (1)  phased reductions in the amount of water that may
  25-19  be used or withdrawn by existing users or categories of other
  25-20  users; or
  25-21              (2)  implementation of alternative management
  25-22  practices, procedures, and methods.
  25-23        SECTION 1.16.  PERMIT REQUIRED.  (a)  The authority shall
  25-24  manage withdrawals from the aquifer and shall manage all withdrawal
  25-25  points from the aquifer as provided by this Act.
  25-26        (b)  Except as provided by Sections 1.18 and 1.34 of this
  25-27  article, a person may not withdraw water from the aquifer or begin
   26-1  construction of a well or other works designed for the withdrawal
   26-2  of water from the aquifer without obtaining a permit from the
   26-3  authority.
   26-4        (c)  The authority may issue regular permits, term permits,
   26-5  and emergency permits.
   26-6        (d)  Each permit must specify the maximum rate and total
   26-7  volume of water that the water user may withdraw in a calendar
   26-8  year.
   26-9        SECTION 1.17.  DECLARATIONS OF HISTORICAL USE; INITIAL
  26-10  REGULAR PERMITS.  (a)  An existing user may apply for an initial
  26-11  regular permit by filing a declaration of historical use of
  26-12  underground water withdrawn from the aquifer during the historical
  26-13  period from June 1, 1982, through May 31, 1993.
  26-14        (b)  An existing user's declaration of historical use must be
  26-15  filed on or before March 1, 1994, on a form prescribed by the
  26-16  board.  An applicant for a permit must timely pay all application
  26-17  fees required by the board.  An owner of a well used for irrigation
  26-18  must include additional documentation of the number of acres
  26-19  irrigated during the historical period provided by Subsection (a)
  26-20  of this section.
  26-21        (c)  An owner of a well from which the water will be used
  26-22  exclusively for domestic use or watering livestock and that is
  26-23  exempt under Section 1.34 of this article is not required to file a
  26-24  declaration of historical use.
  26-25        (d)  The board shall grant an initial regular permit to an
  26-26  existing user who:
  26-27              (1)  files a declaration and pays fees as required by
   27-1  this section; and
   27-2              (2)  establishes by convincing evidence beneficial use
   27-3  of underground water from the aquifer.
   27-4        (e)  To the extent water is available for permitting, the
   27-5  board shall issue the existing user a permit for withdrawal of an
   27-6  amount of water equal to the user's maximum beneficial use of water
   27-7  without waste during any one calendar year of the historical
   27-8  period.  If the total amount of water determined to have been
   27-9  beneficially used without waste under this subsection exceeds the
  27-10  amount of water available for permitting, the authority shall
  27-11  adjust the amount of water authorized for withdrawal under the
  27-12  permits proportionately to meet the amount available for
  27-13  permitting.  To the extent water is available for permitting:
  27-14              (1)  an existing irrigation user shall receive a permit
  27-15  for not less than two acre-feet a year for each  acre of land the
  27-16  user irrigated in any one year during the historical period; and
  27-17              (2)  an existing user who has operated a well for three
  27-18  or more years during the historical period shall receive a permit
  27-19  for at least the average amount of water withdrawn annually during
  27-20  the historical period.
  27-21        (f)  The board by rule shall consider the equitable treatment
  27-22  of a person whose historic use has been affected by a requirement
  27-23  of or participation in a federal program.
  27-24        (g)  The authority shall issue an initial regular permit
  27-25  without a term, and an initial regular permit remains in effect
  27-26  until the permit is abandoned, cancelled, or retired.
  27-27        (h)  The board shall notify each permit holder that the
   28-1  permit is subject to limitations as provided by this article.
   28-2        SECTION 1.18.  INTERIM AUTHORIZATION.  (a)  A person who, on
   28-3  the effective date of this article, owns a producing well that
   28-4  withdraws water from the aquifer may continue to withdraw and
   28-5  beneficially use water without waste until final action on permits
   28-6  by the authority, if:
   28-7              (1)  the well is in compliance with all statutes and
   28-8  rules relating to well construction, approval, location, spacing,
   28-9  and operation; and
  28-10              (2)  by March 1, 1994, the person files a declaration
  28-11  of historical use on a form as required by the authority.
  28-12        (b)  Use under interim authorization may not exceed on an
  28-13  annual basis the historical, maximum, beneficial use of water
  28-14  without waste during any one calendar year as evidenced by the
  28-15  person's declaration of historical use, unless that amount is
  28-16  otherwise determined by the authority.
  28-17        (c)  Use under this section is subject to the authority's
  28-18  comprehensive management plan and  rules adopted by the authority.
  28-19        (d)  Interim authorization for a well under this section ends
  28-20  on:
  28-21              (1)  entry of a final and appealable order by the
  28-22  authority acting on the application for the well; or
  28-23              (2)  March 1, 1994, if the well owner has not filed a
  28-24  declaration of historical use.
  28-25        SECTION 1.19.  ADDITIONAL REGULAR PERMITS.  (a)  To the
  28-26  extent water is available for permitting after the issuance of
  28-27  permits to existing users, the authority may issue additional
   29-1  regular permits, subject to limits on the total amount of permitted
   29-2  withdrawals determined under Section 1.15 of this article.
   29-3        (b)  The authority may not consider or take action on an
   29-4  application relating to a proposed or existing well of which there
   29-5  is no evidence of actual beneficial use before June 1, 1993, until
   29-6  a final determination has been made on all initial regular permit
   29-7  applications submitted on or before the initial application date of
   29-8  March 1, 1994.
   29-9        SECTION 1.20.  TERM PERMITS.  (a)  The authority may issue
  29-10  term permits for withdrawal for any period the authority considers
  29-11  feasible, but may not issue a term permit for a period of more than
  29-12  10 years.
  29-13        (b)  A holder of a term permit may not withdraw water from
  29-14  the San Antonio pool of the aquifer unless the level of the aquifer
  29-15  is higher than 665 feet above sea level, as measured at Well J-17.
  29-16        (c)  A holder of a term permit may not withdraw water from
  29-17  the Uvalde pool  of the aquifer unless the level of the aquifer is
  29-18  higher than 865 feet above sea level, as measured at Well J-27.
  29-19        SECTION 1.21.  EMERGENCY PERMITS.  (a)  Emergency permits may
  29-20  be issued only to prevent the loss of life or to prevent severe,
  29-21  imminent threats to the public health or safety.
  29-22        (b)  The term of an emergency permit may not exceed 30 days,
  29-23  unless renewed.
  29-24        (c)  The board may renew an emergency permit.
  29-25        (d)  The holder of an emergency permit may withdraw water
  29-26  from the aquifer without regard to its effect on other permit
  29-27  holders.
   30-1        SECTION 1.22.  PERMIT RETIREMENT.  (a)  The authority shall
   30-2  prepare and implement a plan for reducing, by January 1, 2008, the
   30-3  maximum annual volume of water authorized to be withdrawn from the
   30-4  aquifer under regular permits to 400,000 acre-feet a year or the
   30-5  adjusted amount determined under Subsection (d) of Section 1.15 of
   30-6  this article.
   30-7        (b)  The plan must be enforceable and must include water
   30-8  conservation and reuse measures, measures to retire water rights,
   30-9  and other water management measures designed to achieve the
  30-10  reduction levels or appropriate management of the resource.
  30-11        (c)  If, on or after January 1, 2008, the overall volume of
  30-12  water authorized to be withdrawn from the aquifer under regular
  30-13  permits is greater than 400,000 acre-feet a year or greater than
  30-14  the adjusted amount determined under Subsection (d) of Section 1.15
  30-15  of this article, the maximum authorized withdrawal of each regular
  30-16  permit shall be immediately reduced by an equal percentage as is
  30-17  necessary to reduce overall maximum demand to 400,000 acre-feet a
  30-18  year or the adjusted amount, as appropriate.  The amount reduced
  30-19  may be restored, in whole or in part, as other appropriate measures
  30-20  are implemented that maintain overall demand at or below the
  30-21  appropriate amount.
  30-22        SECTION 1.23.  ACQUISITION OF RIGHTS.  (a)  The authority may
  30-23  acquire permitted rights to use water from the aquifer for the
  30-24  purposes of:
  30-25              (1)  holding those rights in trust for sale or transfer
  30-26  of the water or the rights to persons within the authority's
  30-27  jurisdiction who may use water from the aquifer;
   31-1              (2)  holding those rights in trust as a means of
   31-2  managing overall demand on the aquifer;
   31-3              (3)  holding those rights for resale or retirement as a
   31-4  means of complying with pumping reduction requirements under this
   31-5  article; or
   31-6              (4)  retiring those rights, including those rights
   31-7  already permitted.
   31-8        (b)  The authority may acquire and hold permits or rights to
   31-9  appropriate surface water or groundwater from sources inside or
  31-10  outside of the authority's boundaries.
  31-11        (c)  Notwithstanding any other provisions of law, the
  31-12  authority's acquisition of permitted rights to use water from the
  31-13  aquifer is eligible for financial assistance from:
  31-14              (1)  the water supply account of the Texas Water
  31-15  Development Fund under Subchapter D, Chapter 17, Water Code;
  31-16              (2)  the water loan assistance fund under Subchapter C,
  31-17  Chapter 15, Water Code; and
  31-18              (3)  the revenue bond program under Subchapter I,
  31-19  Chapter 17, Water Code.
  31-20        SECTION 1.24.  CONSERVATION AND REUSE PLANS.  (a)  The
  31-21  authority shall require holders of regular permits and holders of
  31-22  term permits to submit water conservation plans and, if
  31-23  appropriate, reuse plans for review and approval by the authority.
  31-24  The board by rule shall  require a plan to be implemented after a
  31-25  reasonable time after a plan's approval.
  31-26        (b)  The board shall assist users in developing conservation
  31-27  or reuse plans.
   32-1        (c)  The authority biennially shall prepare and update
   32-2  enforceable and effective conservation and reuse plans as required
   32-3  by this article.  Not later than January 1 of each odd-numbered
   32-4  year the authority shall submit the plan to the legislature.
   32-5        SECTION 1.25.  LOANS AND GRANTS.  (a)  Notwithstanding any
   32-6  other provision of law, the authority is eligible as a lender
   32-7  district to receive loans from the Texas Water Development Board
   32-8  under the agricultural water conservation bond program under
   32-9  Subchapter J, Chapter 17, Water Code.
  32-10        (b)  The authority may apply for, request, solicit, contract
  32-11  for, receive, and accept gifts, grants, and other assistance from
  32-12  any source for the purposes of this article.
  32-13        (c)  The authority may issue grants or make loans to finance
  32-14  the purchase or installation of equipment or facilities.  If the
  32-15  authority issues a grant for a water conservation, reuse, or water
  32-16  management project, the authority may require the beneficiary to
  32-17  transfer to the authority permitted rights to aquifer water equal
  32-18  to a portion of the water conserved or made available by the
  32-19  project.
  32-20        SECTION 1.26.  COMPREHENSIVE MANAGEMENT PLAN.
  32-21  (a)  Consistent with Section 1.15 of this article, the authority
  32-22  shall develop, by September 1, 1995,  and implement a comprehensive
  32-23  water management plan that includes conservation, future supply,
  32-24  and demand management plans.  The authority may not delegate the
  32-25  development of the plan under Section 1.43 of this article.
  32-26        (b)  The authority, in conjunction with the Texas Water
  32-27  Development Board and underground water conservation districts
   33-1  within the authority's boundaries, shall develop a 20-year plan for
   33-2  providing alternative supplies of water to the region, with
   33-3  five-year goals and objectives, to be implemented by the authority
   33-4  and reviewed annually by the appropriate federal agencies.  The
   33-5  authority, Texas Water Development Board, and districts, in
   33-6  developing the plan, shall:
   33-7              (1)  make a thorough investigation of all alternative
   33-8  technologies;
   33-9              (2)  provide for financial assistance for alternative
  33-10  supplies through the Texas Water Development Board; and
  33-11              (3)  perform a cost-benefit analysis and an
  33-12  environmental analysis.
  33-13        SECTION 1.27.  DEMAND MANAGEMENT PLAN.  The authority shall
  33-14  prepare and, after commission review, implement plans that provide
  33-15  for demand management.  The demand mechanisms must:
  33-16              (1)  distinguish between discretionary use and
  33-17  nondiscretionary use for each permittee;
  33-18              (2)  require reductions, to the maximum extent
  33-19  feasible, of all discretionary use; and
  33-20              (3)  require reduction of nondiscretionary use, to the
  33-21  extent further reductions are necessary, in the reverse order of
  33-22  the following water use preferences:
  33-23                    (A)  domestic and municipal;
  33-24                    (B)  industrial and irrigation;
  33-25                    (C)  recreational and pleasure; and
  33-26                    (D)  other uses that are authorized by law.
  33-27        SECTION 1.28.  RESEARCH.  (a)  The authority shall complete
   34-1  research on the technological feasibility of springflow enhancement
   34-2  and yield enhancement that, immediately before September 1, 1993,
   34-3  is being conducted by the Edwards Underground Water District.
   34-4        (b)  The authority may conduct research to help:
   34-5              (1)  manage water resources, including water
   34-6  conservation, water use and reuse, and drought management measures;
   34-7              (2)  enhance the recharge of and augment the flow into
   34-8  and out of the aquifer;
   34-9              (3)  develop alternative supplies of water for users;
  34-10  and
  34-11              (4)  monitor and protect water quality.
  34-12        (c)  The authority may contract with other persons to conduct
  34-13  research.
  34-14        SECTION 1.29.  TAX; BONDS.  (a)  The authority may not levy a
  34-15  property tax.
  34-16        (b)  The authority may issue revenue bonds to finance the
  34-17  purchase of land or the purchase, construction, or installation of
  34-18  facilities or equipment for:
  34-19              (1)  water conservation, water reuse, or other water
  34-20  management measures by water users; or
  34-21              (2)  development, storage, pumping, treatment,
  34-22  transportation, or wholesale distribution of groundwater or surface
  34-23  water for use within the authority from sources within or outside
  34-24  the boundaries of the authority, except that the authority may not
  34-25  construct, acquire, or own facilities for transporting groundwater
  34-26  out of Uvalde County or Medina County.
  34-27        (c)  Revenue bond proceeds may be used:
   35-1              (1)  for springflow augmentation or alternative water
   35-2  supplies;
   35-3              (2)  to finance the retirement of water rights; and
   35-4              (3)  for financial assistance for research or
   35-5  conservation under this article.
   35-6        (d)  Revenue bond proceeds may not be used for maintenance or
   35-7  operating expenses.
   35-8        (e)  Bonds issued by the authority are subject to review and
   35-9  approval of the attorney general and the commission.  If the
  35-10  attorney general finds that the bonds have been authorized in
  35-11  accordance with the law, the attorney general shall approve them,
  35-12  and the comptroller of public accounts shall register the bonds.
  35-13  Following approval and registration, the bonds are incontestable
  35-14  and are binding obligations according to their terms.
  35-15        (f)  The board may organize proceeds of the bonds into funds
  35-16  and accounts and may invest the proceeds as the board determines is
  35-17  appropriate.
  35-18        SECTION 1.30.  FEES.  (a)  The cost of reducing withdrawals
  35-19  or permit retirements must be borne:
  35-20              (1)  solely by users of the aquifer for reducing
  35-21  withdrawals from the level on the effective date of this article to
  35-22  450,000 acre-feet a year, or the adjusted amount determined under
  35-23  Subsection (d) of Section 1.15 of this article for the period
  35-24  ending December 31, 2007; and
  35-25              (2)  equally by aquifer users and downstream water
  35-26  rights holders for permit retirements from 450,000 acre-feet a
  35-27  year, or the adjusted amount determined under Subsection (d) of
   36-1  Section 1.15 of this article for the period ending December 31,
   36-2  2007, to 400,000 acre-feet a year, or the adjusted amount
   36-3  determined under Subsection (d) of Section 1.15 of this article,
   36-4  for the period beginning January 1, 2008.
   36-5        (b)  The authority shall assess equitable aquifer management
   36-6  fees based on permitted aquifer rights to finance its
   36-7  administrative expenses and programs authorized under this article.
   36-8        (c)  The authority shall also assess an equitable special fee
   36-9  based on permitted aquifer water rights to be used only to finance
  36-10  the retirement of rights necessary to meet the goals provided by
  36-11  Section 1.22 of this article.  The authority shall set the
  36-12  equitable special fees on permitted aquifer users at a level
  36-13  sufficient to match the funds raised from the assessment of
  36-14  equitable special fees on downstream water rights holders.
  36-15        (d)  The commission shall assess equitable special fees on
  36-16  all downstream water rights holders in the Guadalupe River Basin to
  36-17  be used solely to finance the retirement of aquifer rights
  36-18  necessary to meet the goals provided by Section 1.22 of this
  36-19  article.  Fees assessed under this subsection may not exceed
  36-20  one-half of the cost of permit retirements from 450,000 acre-feet a
  36-21  year,  or the adjusted amount determined under Subsection (d) of
  36-22  Section 1.15 of this article, for the period ending December 31,
  36-23  2007, to 400,000 acre-feet a year, or the adjusted amount
  36-24  determined under Subsection (d) of Section 1.15 of this article,
  36-25  for the period beginning January 1, 2008.  The authority shall
  36-26  report to the commission the estimated costs of the retirements.
  36-27  The amount of fees assessed under this subsection shall be
   37-1  determined in accordance with rules adopted by the commission for
   37-2  fees under the South Texas watermaster program.  A downstream water
   37-3  rights holder shall pay fees assessed under this subsection to the
   37-4  authority.  A fee may not be assessed by the commission under this
   37-5  subsection on contractual deliveries of water stored in Canyon Lake
   37-6  that may be diverted downstream of the San Marcos Springs or Canyon
   37-7  Dam.  A person or entity making a contractual sale of water stored
   37-8  upstream of Canyon Dam may not establish a systemwide rate that
   37-9  requires purchasers of upstream-stored water to pay the special fee
  37-10  assessed under this subsection.  The commission may not assess a
  37-11  fee under this subsection on hydroelectric use of water by the
  37-12  following dams:
  37-13              (1)  City of Gonzales Dam;
  37-14              (2)  City of Seguin Dam;
  37-15              (3)  New Braunfels Utilities Dam;
  37-16              (4)  Dam No. TP-1;
  37-17              (5)  Dam No. TP-3;
  37-18              (6)  Dam No. TP-4;
  37-19              (7)  Dam No. TP-5;
  37-20              (8)  Dam No. H-4; or
  37-21              (9)  Dam No. H-5.
  37-22        (e)  In developing an equitable fee structure under this
  37-23  section, the authority may establish different fee rates on a per
  37-24  acre-foot basis for different types of use.  The fees must be
  37-25  equitable between types of uses.  The fee rate for agricultural use
  37-26  may not be more than 20 percent of the fee rate for municipal use.
  37-27  The authority shall assess the fees on the amount of water a permit
   38-1  holder is authorized to withdraw under the permit.
   38-2        (f)  The authority shall impose a permit application fee not
   38-3  to exceed $25.
   38-4        (g)  The authority may assess a surcharge fee to be imposed
   38-5  on a permittee's withdrawal of water in excess of permitted
   38-6  amounts.
   38-7        (h)  The authority may impose a registration application fee
   38-8  not to exceed $10.
   38-9        (i)  Special fees collected under Subsection (c) or (d) of
  38-10  this section may not be used to finance a surface water supply
  38-11  reservoir project.
  38-12        SECTION 1.31.  RIVER DIVERSIONS.  (a)  The commission may
  38-13  issue to an applicant a special permit to divert water from the
  38-14  Guadalupe River from a diversion point on the river downstream of
  38-15  the point where the river emerges as a spring.
  38-16        (b)  A permit issued to a person under this section must
  38-17  condition the diversion of water from the Guadalupe River on a
  38-18  limitation of withdrawals under the person's permit to withdraw
  38-19  water from the aquifer.
  38-20        (c)  A permit issued under this section must provide that the
  38-21  permit holder may divert water from the Guadalupe River only if:
  38-22              (1)  the diversion is made instead of a withdrawal from
  38-23  the aquifer to enhance the yield of the aquifer; and
  38-24              (2)  the diversion does not impair senior water rights
  38-25  or vested riparian rights.
  38-26        (d)  A permit issued in accordance with this section is
  38-27  subordinate to permitted water rights for which applications were
   39-1  submitted before May 31, 1993, and vested riparian rights.
   39-2        (e)  Sections 11.028 and 11.033, Water Code, do not apply to
   39-3  a permit issued under this section.
   39-4        SECTION 1.32.  MEASURING DEVICES.  (a)  The owner of a
   39-5  nonexempt well that withdraws water from the aquifer shall install
   39-6  and maintain a measuring device approved by the authority designed
   39-7  to indicate the flow rate and cumulative amount of water withdrawn
   39-8  by that well.  This requirement may be waived by the authority on
   39-9  written request by a well owner to use an alternative method of
  39-10  determining the amount of water withdrawn.
  39-11        (b)  The authority is responsible for the costs of installing
  39-12  and maintaining measuring devices, if required, for an irrigation
  39-13  well in existence on the effective date of this article.
  39-14        SECTION 1.33.  REPORTS.  Not later than March 1 of each year,
  39-15  and on a form prescribed by the authority, each holder of a permit
  39-16  shall file with the authority a written report of water use for the
  39-17  preceding calendar year.
  39-18        SECTION 1.34.  WELL PERMIT EXEMPTION.  (a)  A well that
  39-19  produces 25,000 gallons of water a day or less for domestic use or
  39-20  for the open-range watering of livestock connected with farming,
  39-21  ranching, or dairy enterprises is exempt from permitting
  39-22  requirements.
  39-23        (b)  Exempt wells must register with the authority or with an
  39-24  underground water conservation district in which the well is
  39-25  located.
  39-26        (c)  A well within or serving a subdivision requiring
  39-27  platting does not qualify for an exempt use.
   40-1        (d)  Except as provided by Subsection (b) of this section,
   40-2  land sold within the authority's boundaries retains the
   40-3  authorization to withdraw water in accordance with permits obtained
   40-4  under this article.
   40-5        SECTION 1.35.  TRANSFER OF RIGHTS.  (a)  Water withdrawn from
   40-6  the aquifer must be used within the boundaries of the authority.
   40-7        (b)  A permit holder may sell permitted water rights only to
   40-8  the authority, but a holder of a permit for irrigation use may not
   40-9  sell more than 50 percent of the irrigation rights initially
  40-10  permitted.  The user's remaining irrigation water rights must be
  40-11  used in accordance with the original permit and must pass with
  40-12  transfer of the irrigated land, except as provided by rules of the
  40-13  board.
  40-14        (c)  The authority may purchase permitted water rights and:
  40-15              (1)  sell those rights to other permit holders;
  40-16              (2)  sell water withdrawn under those rights to other
  40-17  permit holders;
  40-18              (3)  hold the water in trust for future beneficial use
  40-19  within the authority's boundaries; or
  40-20              (4)  retire those rights.
  40-21        SECTION 1.36.  PROHIBITIONS.  (a)  A person may not withdraw
  40-22  water from the aquifer except as authorized by a permit issued by
  40-23  the authority or by this article.
  40-24        (b)  A person holding a permit issued by the authority may
  40-25  not violate the terms or conditions of the permit.
  40-26        (c)  A person may not waste water withdrawn from the aquifer.
  40-27        (d)  A person may not pollute or contribute to the pollution
   41-1  of the aquifer.
   41-2        (e)  A person may not violate this article or a rule of the
   41-3  authority adopted under this article.
   41-4        SECTION 1.37.  ENFORCEMENT.  (a)  The authority may enter
   41-5  orders to enforce the terms and conditions of permits, orders, or
   41-6  rules issued or adopted under this article.
   41-7        (b)  The authority by rule shall provide for the suspension
   41-8  of a permit of any class for a failure to pay a required fee or a
   41-9  violation of a permit condition or order of the authority or a rule
  41-10  adopted by the authority.
  41-11        SECTION 1.38.  ADMINISTRATIVE PENALTY.  (a)  The authority
  41-12  may assess an administrative penalty against a person who violates
  41-13  this article or a rule adopted or permit or order issued under this
  41-14  article in an amount of not less than $100 or more than $1,000 for
  41-15  each violation and for each day of a continuing violation.
  41-16        (b)  In determining the amount of the penalty, the authority
  41-17  shall consider:
  41-18              (1)  the history of previous violations;
  41-19              (2)  the amount necessary to deter future violations;
  41-20              (3)  efforts to correct the violation;
  41-21              (4)  enforcement costs relating to the violation; and
  41-22              (5)  any other matters that justice may require.
  41-23        (c)  If after an examination of the facts the authority
  41-24  concludes that the person did commit a violation, the authority may
  41-25  issue a preliminary report stating the facts on which it based its
  41-26  conclusion, recommending that an administrative penalty under this
  41-27  section be imposed, and recommending the amount of the proposed
   42-1  penalty.
   42-2        (d)  The authority shall give written notice of the report to
   42-3  the person charged with committing the violation.  The notice must
   42-4  include a brief summary of the facts, a statement of the amount of
   42-5  the recommended penalty, and a statement of the person's right to
   42-6  an informal review of the occurrence of the violation, the amount
   42-7  of the penalty, or both.
   42-8        (e)  Not later than the 10th day after the date on which the
   42-9  person charged with committing the violation receives the notice,
  42-10  the person may either give the authority written consent to the
  42-11  report, including the recommended penalty, or make a written
  42-12  request for an informal review by the authority.
  42-13        (f)  If the person charged with committing the violation
  42-14  consents to the penalty recommended by the authority or fails to
  42-15  timely request an informal review, the authority shall assess the
  42-16  penalty.  The authority shall give the person written notice of its
  42-17  action.  The person shall pay the penalty not later than the 30th
  42-18  day after the date on which the person receives the notice.
  42-19        (g)  If the person charged with committing a violation
  42-20  requests an informal review as provided by Subsection (e) of this
  42-21  section, the authority shall conduct the review.  The authority
  42-22  shall give the person written notice of the results of the review.
  42-23        (h)  Not later than the 10th day after the date on which the
  42-24  person charged with committing the violation receives the notice
  42-25  prescribed by Subsection (g) of this section, the person may make
  42-26  to the authority a written request for a hearing.
  42-27        (i)  If, after informal review, a person who has been ordered
   43-1  to pay a penalty fails to request a formal hearing in a timely
   43-2  manner, the authority shall assess the penalty.  The authority
   43-3  shall give the person written notice of its action.  The person
   43-4  shall pay the penalty not later than the 30th day after the date on
   43-5  which the person receives the notice.
   43-6        (j)  Except as provided by Subsection (k) of this section,
   43-7  not later than the 30th day after the date on which the authority
   43-8  issues a final decision after a hearing under Subsection (h) of
   43-9  this section, a person who has been ordered to pay a penalty under
  43-10  this section shall pay the penalty in full.
  43-11        (k)  If the person seeks judicial review of either the fact
  43-12  of the occurrence of the violation or the amount of the penalty, or
  43-13  of both, the person shall send the amount of the penalty to the
  43-14  authority for placement in an escrow account or post with the
  43-15  authority a supersedeas bond in a form approved by the authority
  43-16  for the amount of the penalty.  The bond must be effective until
  43-17  all judicial review of the order or decision is final.
  43-18        (l)  Failure to forward the money to or to post the bond with
  43-19  the authority within the period provided by Subsection (j) or (k)
  43-20  of this section results in a waiver of all legal rights to judicial
  43-21  review.  If the person charged fails to forward the money or post
  43-22  the bond within the period provided by Subsection (f), (i), (j), or
  43-23  (k) of this section, the authority may forward the matter to the
  43-24  attorney general for enforcement of the penalty and interest as
  43-25  provided by law for legal judgments.  An action to enforce a
  43-26  penalty order under this section must be initiated in a court of
  43-27  competent jurisdiction in Travis County or in the county in which
   44-1  the violation occurred.  The authority or the attorney general may
   44-2  recover attorney fees in a suit filed under this subsection.
   44-3        (m)  Judicial review of an authority order or review under
   44-4  this section assessing a penalty is under the substantial evidence
   44-5  rule.  A suit may be initiated by filing a petition with a district
   44-6  court in Travis County.
   44-7        (n)  If a penalty is reduced or not assessed, the authority
   44-8  shall remit to the person the appropriate amount plus accrued
   44-9  interest if the penalty has been paid or shall execute a release of
  44-10  the bond if a supersedeas bond has been posted.  The accrued
  44-11  interest on amounts remitted by the authority under this subsection
  44-12  shall be paid at a rate equal to the rate provided by law for legal
  44-13  judgments and shall be paid for the period beginning on the date
  44-14  the penalty is paid to the authority under this section and ending
  44-15  on the date the penalty is remitted.
  44-16        (o)  A penalty collected under this section shall be paid to
  44-17  the authority.
  44-18        SECTION 1.39.  INJUNCTION BY AUTHORITY.  The authority may
  44-19  file a civil suit in a state district court for an injunction to
  44-20  enforce this article or a rule adopted or permit or order issued
  44-21  under this article.  If the court determines that a person has
  44-22  violated or threatens to violate this article or a rule adopted or
  44-23  permit or order issued under this article, the court may enter an
  44-24  injunction to enforce this article or the permit, order, or rule.
  44-25  The authority may recover reasonable attorney fees in a suit under
  44-26  this section.
  44-27        SECTION 1.40.  SUIT FOR MANDAMUS.  The commission may file a
   45-1  civil suit for an order of mandamus against the authority to compel
   45-2  the authority to perform its duties under this article or to compel
   45-3  the authority to enforce this article against a violator.  The
   45-4  commission may recover attorney fees from the authority in a suit
   45-5  under this section.
   45-6        SECTION 1.41.  CIVIL PENALTY.  (a)  The commission or
   45-7  authority may file a civil action in state district court for a
   45-8  civil penalty for a violation of this article or a rule adopted or
   45-9  permit or order issued under this article.
  45-10        (b)  The commission or authority may recover a civil penalty
  45-11  of not less than $100 or more than $10,000 for each violation and
  45-12  for each day of violation and attorney fees.
  45-13        (c)  A civil penalty or attorney fees collected by the
  45-14  authority under this section shall be paid to the authority.
  45-15        (d)  A civil penalty or attorney fees collected by the
  45-16  commission under this section shall be deposited to the credit of
  45-17  the general revenue fund.
  45-18        SECTION 1.42.  REPEALER; TRANSFERS; RULES.  (a)  Chapter 99,
  45-19  Acts of the 56th Legislature, Regular Session, 1959 (Article
  45-20  8280-219, Vernon's Texas Civil Statutes), is repealed, and the
  45-21  Edwards Underground Water District is abolished.
  45-22        (b)  All files and records of the Edwards Underground Water
  45-23  District pertaining to control, management, and operation of the
  45-24  district are transferred from the Edwards Underground Water
  45-25  District to the authority on the effective date of this article.
  45-26        (c)  All real and personal property, leases, rights,
  45-27  contracts, staff, and obligations of the Edwards Underground Water
   46-1  District are transferred to the authority on the effective date of
   46-2  this article.
   46-3        (d)  On September 1, 1993, all unobligated and unexpended
   46-4  funds of the Edwards Underground Water District shall be
   46-5  transferred to the authority.
   46-6        (e)  A rule adopted by the Edwards Underground Water District
   46-7  before the effective date of this article that relates to
   46-8  management or control of the aquifer is, on the effective date of
   46-9  this article, a rule of the  authority and remains in effect until
  46-10  amended or repealed by the authority.
  46-11        (f)  The authority shall be automatically substituted for the
  46-12  Edwards Underground Water District in any judicial or
  46-13  administrative proceeding to which, on the effective date of this
  46-14  article, the Edwards Underground Water District is a party.
  46-15        SECTION 1.43.  EFFECT ON OTHER DISTRICTS.  (a)  An
  46-16  underground water conservation district other than the authority
  46-17  may manage and control water that is a part of the aquifer after
  46-18  the effective date of this article only as provided in this
  46-19  section.  This article does not affect a water reclamation or
  46-20  conservation district that manages and controls only water from a
  46-21  resource other than the aquifer.
  46-22        (b)  An underground water conservation district other than
  46-23  the authority may manage and control water that is a part of the
  46-24  aquifer to the extent that those management activities do not
  46-25  conflict with and are not duplicative of this article or the rules
  46-26  and orders of the authority.
  46-27        (c)  Except as otherwise provided by this article, the board
   47-1  may delegate the powers and duties granted to it under this
   47-2  article.  The board shall delegate all or part of its powers or
   47-3  duties to an underground water conservation district on the
   47-4  district's request if the district demonstrates to the satisfaction
   47-5  of the board that:
   47-6              (1)  the district has statutory powers necessary for
   47-7  full enforcement of the rules and orders to be delegated;
   47-8              (2)  the district has implemented all rules and
   47-9  policies necessary to fully implement the programs to be delegated;
  47-10  and
  47-11              (3)  the district has implemented a system designed to
  47-12  provide the authority with adequate information with which to
  47-13  monitor the adequacy of the district's performance in enforcing
  47-14  board rules and orders.
  47-15        (d)  In making the determination under Subsection (c) of this
  47-16  section, the board may consider the district's past performance and
  47-17  experience in enforcing powers and duties delegated to it by the
  47-18  board.  The board may deny a request for delegation of powers or
  47-19  duties by a district if the district has previously had a
  47-20  delegation terminated under Subsection (e) of this section.
  47-21        (e)  If the authority determines that a district has failed
  47-22  adequately to enforce or implement any rules or orders delegated
  47-23  under this section, the authority immediately shall provide to the
  47-24  district notice that sets forth the reasons for its determination
  47-25  and the actions that the district must take to retain the delegated
  47-26  authority.  Not later than the 10th day after the date the notice
  47-27  is given, the district must demonstrate its commitment and ability
   48-1  to take the actions set forth in the notice.  If, at the end of the
   48-2  10-day period, the authority does not find that the district will
   48-3  adequately enforce its rules and orders, the authority immediately
   48-4  shall resume full responsibility for implementation and enforcement
   48-5  of those rules and orders.  The authority shall provide to the
   48-6  district notice that the delegation of authority to it has been
   48-7  terminated.  After the termination notice is given, the authority
   48-8  of the district to manage or control water in the aquifer is
   48-9  limited to the authority granted by Subsection (b) of this section.
  48-10        SECTION 1.44.  CREATION OF UNDERGROUND WATER CONSERVATION
  48-11  DISTRICT.  An underground water conservation district may be
  48-12  created in any county affected by this article as provided by
  48-13  Subchapter B, Chapter 52, Water Code.
  48-14                               ARTICLE 2
  48-15        SECTION 2.01.  DEFINITION.  In this article, "district" means
  48-16  the Uvalde County Underground Water Conservation District.
  48-17        SECTION 2.02.  VALIDATION.  The creation of the district and
  48-18  all resolutions, orders, and other acts or attempted acts of the
  48-19  board of directors of the district are validated in all respects.
  48-20  The creation of the district and all resolutions, orders, and other
  48-21  acts or attempted acts of the board of directors of the district
  48-22  are valid as though they originally had been legally authorized or
  48-23  accomplished.
  48-24        SECTION 2.03.  BOUNDARIES.  Pursuant to the petition to the
  48-25  Commissioners Court of Uvalde County, Texas, requesting the
  48-26  creation of the district, the district includes the territory
  48-27  contained within the boundaries of Uvalde County.
   49-1        SECTION 2.04.  FINDING OF BENEFIT.  All the land and other
   49-2  property included within the boundaries of the district will be
   49-3  benefitted by the validation of the district.
   49-4        SECTION 2.05.  POWERS.  (a)  The district has all of the
   49-5  rights, powers, privileges, authority, functions, and duties
   49-6  provided by the general law of the state, including Chapters 50 and
   49-7  52, Water Code, applicable to underground water conservation
   49-8  districts created under Article XVI, Section 59, of the Texas
   49-9  Constitution.  This article prevails over any provision of general
  49-10  law that is in conflict or inconsistent with this article.
  49-11        (b)  The district may develop and implement a drought
  49-12  response plan, with reasonable rules, using water levels as
  49-13  observed in the Uvalde Index Well YP-69-50-302.
  49-14        (c)  The rights, powers, privileges, authority, functions,
  49-15  and duties of the district are subject to the continuing right of
  49-16  supervision of the state to be exercised by and through the Texas
  49-17  Water Commission.
  49-18        SECTION 2.06.  LEVY OF TAXES.  The levy and collection of
  49-19  taxes by the district is governed by Subchapter H, Chapter 52,
  49-20  Water Code, except that the district may not levy a maintenance and
  49-21  operating tax at a rate that exceeds two cents per $100 assessed
  49-22  valuation unless an election held in the district authorizes a
  49-23  higher rate.
  49-24        SECTION 2.07.  PENDING LITIGATION.  This article does not
  49-25  apply to or affect litigation pending on the effective date of this
  49-26  article in any court of competent jurisdiction in this state to
  49-27  which the district is a party.
   50-1                               ARTICLE 3
   50-2        SECTION 3.01.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
   50-3  (a)  The proper and legal notice of the intention to introduce this
   50-4  Act, setting forth the general substance of this Act, has been
   50-5  published as provided by law, and the notice and a copy of this Act
   50-6  have been furnished to all persons, agencies, officials, or
   50-7  entities to which they are required to be furnished by the
   50-8  constitution and other laws of this state, including the governor,
   50-9  who has submitted the notice and Act to the Texas Water Commission.
  50-10        (b)  The Texas Water Commission has filed its recommendations
  50-11  relating to this Act with the governor, lieutenant governor, and
  50-12  speaker of the house of representatives within the required time.
  50-13        (c)  All requirements of the constitution and laws of this
  50-14  state and the rules and procedures of the legislature with respect
  50-15  to the notice, introduction, and passage of this Act are fulfilled
  50-16  and accomplished.
  50-17        SECTION 3.02.  EFFECTIVE DATES.  This Act takes effect
  50-18  September 1, 1993; except Section 1.36 of Article 1 takes effect
  50-19  March 1, 1994.
  50-20        SECTION 3.03.  EMERGENCY.  The importance of this legislation
  50-21  and the crowded condition of the calendars in both houses create an
  50-22  emergency and an imperative public necessity that the
  50-23  constitutional rule requiring bills to be read on three several
  50-24  days in each house be suspended, and this rule is hereby suspended.