Texas 2011 82nd Regular

Texas House Bill HB2760 Introduced / Bill

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                    82R10169 MXM-F
 By: Garza H.B. No. 2760


 A BILL TO BE ENTITLED
 AN ACT
 relating to species-protection programs for the Edwards Aquifer,
 the Guadalupe River Basin, the San Antonio River Basin, and the San
 Antonio Bay and estuary system; imposing a tax.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  FINDINGS AND DECLARATION OF POLICY. (a) The
 legislature makes the findings described by this section.
 (b)  The Edwards Aquifer is a unique and complex hydrological
 system and has a hydrologic interrelationship with the Guadalupe
 River and San Antonio River Basins. The aquifer is the primary
 source of water for the residents of the region and is vital to the
 general economy and welfare of this state. In keeping with these
 findings, it is necessary, appropriate, and a benefit to the
 welfare of this state to provide for the continued proper and
 effective management of the aquifer to sustain the diverse economic
 and social interests associated with the aquifer and the interests
 of those species associated with the aquifer that have been listed
 under federal law as threatened or endangered.
 (c)  The legislature passed the Act creating the Edwards
 Aquifer Authority in 1993 to provide for the necessary regulation
 and management of the aquifer. The management of the aquifer under
 the Act creating the Edwards Aquifer Authority has provided a sound
 and effective framework for the aquifer's management. To foster and
 further advance the protection of the threatened or endangered
 species associated with the aquifer, the legislature amended the
 Act creating the Edwards Aquifer Authority in 2007 to institute a
 consensus-based process that involves input from the United States
 Fish and Wildlife Service, other appropriate federal agencies, the
 Edwards Aquifer Authority, the Texas Commission on Environmental
 Quality, the Parks and Wildlife Department, the Texas Department of
 Agriculture, the Texas Water Development Board, the
 Guadalupe-Blanco River Authority, the San Antonio River Authority,
 the San Antonio Water System, and other interested stakeholders to
 develop an Edwards Aquifer recovery implementation program for the
 species in compliance with the federal Endangered Species Act of
 1973 (16 U.S.C. Section 1531 et seq.).
 (d)  The legislature created a steering committee for the
 program that, after more than three years of consensus-based study,
 investigation, and decision making, will, by the end of 2011,
 present to the Edwards Aquifer Authority certain program documents
 containing recommended courses of action for the implementation of
 certain species-protection measures for the threatened or
 endangered species associated with the aquifer and the riverine and
 riparian lands at and proximately located downstream of the Comal
 Springs and San Marcos Springs.
 (e)  In amending the Act creating the Edwards Aquifer
 Authority to institute the Edwards Aquifer recovery implementation
 program, a funding mechanism was not provided for the
 implementation of the program, and for this reason, a broad-based
 regional funding mechanism dedicated to the implementation of the
 program is required and vital to the general economy and welfare of
 this state, and particularly to the Edwards Aquifer region in South
 Central Texas and the Guadalupe River and San Antonio River Basins.
 The imposition of a sales and use tax in the area of the state that
 is the beneficiary of the activities undertaken under the Edwards
 Aquifer recovery implementation program is the most appropriate
 mechanism to generate revenue for and allocate the costs for this
 program and is in the public interest.
 (f)  The Guadalupe River and San Antonio River Basins are
 primary sources of water for the residents of South Central Texas
 and for inflows into the San Antonio Bay and estuary system and are
 vital to the general economy and welfare of this state. The
 legislature also recognizes that the ecological soundness of these
 river basins and bay system is important to the economy, health, and
 well-being of the state. For these reasons, it is necessary,
 appropriate, and a benefit to the welfare of this state to provide
 for the continued proper and effective management of the Guadalupe
 River and San Antonio River Basins and the San Antonio Bay and
 estuary system to sustain the diverse economic and social interests
 associated with these river basins and bay system and the interests
 of those species that have been listed under federal law as
 threatened or endangered or are otherwise considered to be species
 of concern and are associated with these river basins and bay
 system.
 (g)  To improve the foundation of work accomplished by the
 state relating to freshwater inflow needs for bays and estuaries in
 the state and to fully address bay and estuary environmental flow
 issues, in S.B. No. 3, Acts of the 80th Legislature, Regular
 Session, 2007, the legislature instituted a more intensive
 environmental flows process across the state to evaluate riverine
 environmental flow conditions and develop management strategies
 for addressing environmental flow needs through an ongoing,
 regional consensus-based, and adaptive approach involving balanced
 representation of stakeholders.
 (h)  To facilitate the environmental flows process, the
 legislature created the environmental flows advisory group to study
 the public policy implications for balancing the demands on the
 water resources of the state resulting from a growing population
 and the environmental flow requirements of the riverine, bay, and
 estuary systems of the state, including those in the Guadalupe
 River and San Antonio River Basins and the San Antonio Bay and
 estuary system. In the course of its work, the advisory group is
 considering issues that it determines have importance and relevance
 to the protection of environmental flows in the state's riverine,
 bay, and estuary systems, including those of the Guadalupe River
 and San Antonio River Basins and the San Antonio Bay and estuary
 system.
 (i)  To assist in the evaluation and recommendation process
 for the environmental flows process for the Guadalupe River and San
 Antonio River Basins and the San Antonio Bay and estuary system, a
 basin and bay area stakeholder committee and an expert science team
 were established to make recommendations to the environmental flows
 advisory group and the Texas Commission on Environmental Quality
 regarding environmental flow standards and strategies to meet those
 standards. After reviewing the work of the expert science team, the
 stakeholder committee is scheduled to make these recommendations in
 September 2011. After it submits its recommendations to the
 advisory group and the Texas Commission on Environmental Quality,
 the stakeholder committee will prepare a work plan as required by
 the environmental flows process that establishes, among other
 things, prioritized strategies and projects as approved by the
 advisory group, a periodic review of the environmental flow
 standards, recommendations, and strategies at least once every 10
 years, specific monitoring, studies, and activities, and a schedule
 for continuing the validation or refinement of the environmental
 flow standards, analyses, recommendations, and strategies. The
 work plan is scheduled to be completed in 2012-2013 and will be
 submitted to the advisory group for approval as required by the
 environmental flows process.
 (j)  In creating the environmental flows process, a funding
 mechanism was not provided for the development of the work plan or
 the implementation of strategies to meet the environmental flow
 standards recommended by the stakeholder committee for the
 Guadalupe River and San Antonio River Basins and the San Antonio Bay
 and estuary system, and for this reason, a broad-based regional
 funding mechanism dedicated to the development and implementation
 of the environmental flows work plan for the Guadalupe River and San
 Antonio River Basins and the San Antonio Bay and estuary system is
 required and vital to the general economy and welfare of this state,
 and particularly to the region encompassed by these river basins
 and estuary system. The imposition of a sales and use tax in the
 area of the state that is the beneficiary of the activities
 undertaken under the environmental flows process for these river
 basins and estuary system is the most appropriate mechanism to
 generate revenue for and allocate the costs for this process and is
 in the public interest. Because the Edwards Aquifer and the
 Guadalupe River and San Antonio River Basins have a hydrologic
 interrelationship, it is appropriate to consider them together in
 the creation of a regional funding mechanism for the implementation
 of the species-protection programs associated with these
 hydrologic systems.
 SECTION 2.  SALES AND USE TAX. Subtitle C, Title 3, Tax
 Code, is amended by adding Chapter 328 to read as follows:
 CHAPTER 328. EDWARDS AQUIFER, GUADALUPE RIVER BASIN, SAN ANTONIO
 RIVER BASIN, AND SAN ANTONIO BAY AND ESTUARY SYSTEM
 SPECIES-PROTECTION SALES AND USE TAXES
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 328.001.  DEFINITION. In this chapter, "authorities"
 means the Edwards Aquifer Authority, the Guadalupe-Blanco River
 Authority, and the San Antonio River Authority.
 Sec. 328.002.  MEANING OF WORDS AND PHRASES. The words and
 phrases used in this chapter and defined by Chapters 151 and 321
 have the meanings assigned by Chapters 151 and 321.
 Sec. 328.003.  APPLICABILITY OF CERTAIN TAX CODE PROVISIONS.
 (a) Subtitles A and B, Title 2, and Chapter 151 apply to taxes
 imposed under this chapter and to the administration and
 enforcement of those taxes in the same manner that those laws apply
 to state taxes.
 (b)  Chapter 321 applies to the application, collection, and
 administration of a sales and use tax imposed under this chapter by
 the authorities.
 (c)  The following provisions of this code do not apply to a
 tax imposed under this chapter:
 (1)  Section 321.101; and
 (2)  Subchapter F, Chapter 321.
 Sec. 328.004.  APPLICABILITY TO AREA IN CERTAIN WATER
 AUTHORITIES. This chapter applies to the species-protection
 program area in the Edwards Aquifer Authority, the Guadalupe-Blanco
 River Authority, and the San Antonio River Authority.
 Sec. 328.005.  SPECIES-PROTECTION PROGRAM AREA DEFINED. (a)
 In this section:
 (1)  "Guadalupe River Basin" has the meaning assigned
 by Section 17.1001, Water Code.
 (2)  "San Antonio River Basin" has the meaning assigned
 by Section 17.1001, Water Code.
 (b)  "Species-protection program area" means the area of a
 county:
 (1)  bordering or transected by the Guadalupe River and
 located in the geographical extent of the Guadalupe River Basin;
 (2)  bordering or transected by the San Antonio River
 and located in the geographical extent of the San Antonio River
 Basin; and
 (3)  in the Edwards Aquifer Authority.
 [Sections 328.006-328.050 reserved for expansion]
 SUBCHAPTER B. IMPOSITION OF SALES AND USE TAX FOR
 SPECIES-PROTECTION PROGRAMS
 Sec. 328.051.  AUTHORIZATION. The authorities may adopt a
 sales and use tax under this chapter in the species-protection
 program area if imposition of the tax is authorized at an election
 under Subchapter C.
 Sec. 328.052.  MAXIMUM SALES AND USE TAX RATE. (a)  The
 maximum tax rate for the tax imposed under this chapter is
 one-fourth of one percent.
 (b)  The tax authorized under this chapter must be imposed at
 the rate of one-eighth of one percent unless the Edwards Aquifer
 Authority determines under Section 17.1013, Water Code, that
 additional species-protection measures are required or the
 environmental flows advisory group approves a work plan under
 Section 11.02362(t), Water Code.
 (c)  On notification to the comptroller under Section
 17.1013(a) or Section 11.02362(t), Water Code, the tax shall be
 imposed at the rate of one-fourth of one percent beginning on the
 date provided by Section 321.102.
 Sec. 328.053.  EFFECT ON COMBINED LOCAL TAX RATE. The rate
 of the tax imposed under this chapter may not be considered in
 determining the combined or overlapping rate of local sales and use
 taxes in any area under this subtitle or another law, including:
 (1)  the Health and Safety Code;
 (2)  the Local Government Code;
 (3)  the Special District Local Laws Code; or
 (4)  the Transportation Code.
 Sec. 328.054.  DURATION OF TAX. (a) In this section,
 "Edwards Aquifer recovery implementation program" and
 "implementing agreement" have the meanings assigned by Section
 17.1001, Water Code.
 (b)  The tax imposed under this chapter may not be abolished
 or decreased during the term of the implementing agreement for the
 Edwards Aquifer recovery implementation program.
 Sec. 328.055.  USE OF TAX REVENUE. The revenue from a tax
 imposed under this chapter shall be deposited to the credit of the
 species-protection program fund established under Section 17.1002,
 Water Code. The money in the fund may be appropriated only to the
 Texas Water Development Board to provide financial assistance under
 Subchapter N, Chapter 17, Water Code.
 [Sections 328.056-328.100 reserved for expansion]
 SUBCHAPTER C. ELECTION
 Sec. 328.101.  ELECTION ON TAX. (a)  The governing bodies of
 the authorities by joint order may call an election in the
 species-protection program area in each authority to authorize the
 adoption of the tax under this chapter. For an area of
 jurisdictional overlap between the Edwards Aquifer Authority and
 one of the other two authorities, the Edwards Aquifer Authority
 will adopt the order and conduct the election for that part of the
 program area in the Edwards Aquifer Authority's jurisdiction.
 (b)  The election may be held on a uniform election date and
 in conjunction with any other election.
 (c)  The ballot shall be printed to provide for voting for or
 against the proposition: "Authorization of a sales and use tax at a
 rate of not more than one-fourth of one percent in the
 species-protection program area to provide money to the Texas Water
 Development Board for species-protection programs under Subchapter
 N, Chapter 17, Water Code, for the Edwards Aquifer recovery
 implementation program and the Guadalupe River Basin, San Antonio
 River Basin, and San Antonio Bay and estuary system environmental
 flows program."
 (d)  The tax is adopted if a majority of the votes cast in the
 election favor the proposition.
 (e)  Notwithstanding any other law, the board of the
 authorities may meet in a joint meeting to canvass the votes of the
 election, declare the results, and, if necessary, send notice to
 the comptroller of those results.
 Sec. 328.102.  NOTICE OF ELECTION. In addition to the notice
 required by Section 4.003(c), Election Code, the authorities shall
 give notice of the election to adopt the sales and use tax under
 this chapter by publishing a substantial copy of the joint order
 under Section 328.101 in a newspaper with general circulation in
 each county of the species-protection program area once a week for
 two consecutive weeks. The first publication must appear not
 earlier than the 30th day before the date set for the election.
 Sec. 328.103.  ELECTION COSTS. The authorities shall pay
 for the cost of an election held under this subchapter for their
 respective parts of the species-protection program area. For an
 area of jurisdictional overlap between the Edwards Aquifer
 Authority and one of the other two authorities, the Edwards Aquifer
 Authority shall pay the cost of conducting the election for that
 part of the program area in the Edwards Aquifer Authority's
 jurisdiction.
 SECTION 3.  FINANCIAL ASSISTANCE FOR SPECIES-PROTECTION
 PROGRAMS. Chapter 17, Water Code, is amended by adding Subchapter N
 to read as follows:
 SUBCHAPTER N. FINANCIAL ASSISTANCE TO THE SPECIES-PROTECTION
 PROGRAMS FOR THE EDWARDS AQUIFER RECOVERY IMPLEMENTATION PROGRAM
 AND THE GUADALUPE RIVER BASIN, SAN ANTONIO RIVER BASIN, AND SAN
 ANTONIO BAY AND ESTUARY SYSTEM ENVIRONMENTAL FLOWS PROGRAM
 Sec. 17.1001.  DEFINITIONS. In this subchapter:
 (1)  "Adaptive decision-making process" means the
 procedures incorporated into and made a part of the implementing
 agreement that provide for an integrated, structured, and
 interactive decision-making process to review and evaluate the
 results of the monitoring and research programs that allows for
 adjusting previous decisions made for the Edwards Aquifer recovery
 implementation program regarding the appropriate
 species-protection measures in light of the results of the
 monitoring program and other sources of new data and information.
 (2) "Adaptive management plan" means the plan
 incorporated into and made a part of the implementing agreement for
 examining alternative strategies for meeting measurable biological
 goals and objectives and then, if necessary, adjusting future
 species-protection measures according to what is learned.
 (3)  "Advisory group" has the meaning assigned by
 Section 11.002.
 (4)  "Edwards Aquifer" has the meaning assigned by
 Section 1.03, Chapter 626, Acts of the 73rd Legislature, Regular
 Session, 1993.
 (5)  "Edwards Aquifer recovery implementation program"
 means the program developed under Section 1.26A, Chapter 626, Acts
 of the 73rd Legislature, Regular Session, 1993, for the Edwards
 Aquifer for the protection of the plan species.
 (6)  "Financial assistance" means the money provided
 from the fund by the board for the purposes described by Section
 17.1002.
 (7)  "Fund" means the species-protection program fund
 created by Section 17.1002.
 (8)  "Guadalupe River Basin" means the geographical
 extent of the river basin as delineated by maps maintained by the
 board and in the Guadalupe-Blanco River Authority.
 (9)  "Guadalupe River Basin, San Antonio River Basin,
 and San Antonio Bay and estuary system environmental flows program"
 means the environmental flows program developed under Article 1,
 Chapter 1430 (S.B. 3), Acts of the 80th Legislature, Regular
 Session, 2007, for the Guadalupe River Basin, San Antonio River
 Basin, and San Antonio Bay and estuary system for, among other
 things, the protection of the species of concern.
 (10)  "Implementing agreement" means the agreement
 that binds one or more permittees to the requirements and
 responsibilities of the habitat conservation plan and incidental
 take permit approved and issued under Section 10 of the federal
 Endangered Species Act of 1973 (16 U.S.C. Section 1531 et seq.), for
 the Edwards Aquifer recovery implementation program, and any
 changes to, or renewals of, the agreement.
 (11)  "Plan species" means the species identified in
 the implementing agreement.
 (12)  "San Antonio River Basin" means the geographical
 extent of the river basin as delineated by maps maintained by the
 board and in the San Antonio River Authority.
 (13)  "San Antonio Bay and estuary system" means the
 geographical extent of the bay and estuary system having a
 hydrologic interrelationship with the Guadalupe River and San
 Antonio River Basins, separated from the Gulf of Mexico by
 Matagorda Island, and composed of those interconnected bodies of
 water known as Hynes Bay, Mission Lake, and Guadalupe Bay in the
 northwest, Ayres and Mesquite Bays to the southwest, and Espiritu
 Santo Bay to the east.
 (14)  "Species of concern" means species located in the
 Guadalupe River Basin, the San Antonio River Basin, and the San
 Antonio Bay and estuary system that are:
 (A)  listed as threatened or endangered under
 Section 4 of the federal Endangered Species Act of 1973 (16 U.S.C.
 Section 1531 et seq.);
 (B)  listed by the Parks and Wildlife Department
 as threatened or endangered; or
 (C)  determined by the advisory group, or the
 Guadalupe-Blanco River Authority and the San Antonio River
 Authority, to be at risk because of declines in populations or
 habitat, or are otherwise in need of concentrated conservation
 actions.
 (15)  "Species-protection measure" means the
 activities incorporated into and made a part of the implementing
 agreement to:
 (A)  manage water in and withdrawn from the
 Edwards Aquifer, and water discharging from Comal Springs and San
 Marcos Springs, for the protection of the species identified in the
 implementing agreement;
 (B)  restore the habitat of the species identified
 in the implementing agreement;
 (C)  minimize and mitigate the impact of the
 adverse effects of the activities covered by the incidental take
 permit issued for the Edwards Aquifer recovery implementation
 program;
 (D)  implement the adaptive management plan; and
 (E)  implement the adaptive decision-making
 process.
 (16)  "Work plan" means the document required to be
 prepared for the Guadalupe River Basin, San Antonio River Basin,
 and San Antonio Bay and estuary system environmental flows program
 by the stakeholder committees established under Section
 11.02362(d) and submitted to the advisory group for approval under
 Section 11.02362(p) that:
 (A)  makes recommendations regarding
 environmental flow standards and strategies and projects to meet
 those standards;
 (B)  prioritizes the strategies and projects;
 (C)  provides for a periodic review to occur at
 least once every 10 years of the environmental flow analyses and
 environmental flow regime recommendations, environmental flow
 standards, and strategies;
 (D)  prescribes specific monitoring, studies, and
 activities; and
 (E)  establishes a schedule for continuing the
 validation or refinement of the environmental flow analysis and
 environmental flow regime recommendation, the environmental flow
 standards adopted by the Texas Commission on Environmental Quality,
 and the strategies to achieve those standards.
 Sec. 17.1002.  FUND CREATED. (a) There is created in the
 state treasury outside the general revenue fund a special fund
 known as the species-protection program fund, and the board shall
 administer the fund in accordance with this subchapter.
 (b)  The fund consists of:
 (1)  revenue from the tax imposed under Chapter 328,
 Tax Code;
 (2)  earnings on the investment of money credited to
 the fund; and
 (3)  interest earned on the fund.
 (c)  The fund may be appropriated only to the board and only
 to provide financial assistance for:
 (1)  implementing species-protection measures for the
 Edwards Aquifer recovery implementation program;
 (2)  implementing the adaptive management plan for the
 Edwards Aquifer recovery implementation program;
 (3)  paying research and planning costs associated with
 the implementation of species-protection measures or the adaptive
 management plan, including planning, engineering, architectural,
 legal, title, fiscal, economic, and any other study, survey,
 design, or research and investigation costs;
 (4)  providing money for the state's participation in
 any federal program that may provide money for the Edwards Aquifer
 recovery implementation program;
 (5)  paying research, planning, development, and
 preparation costs of the work plan for the Guadalupe River Basin,
 San Antonio River Basin, and San Antonio Bay and estuary system
 environmental flows program; or
 (6)  providing water projects in the Guadalupe River
 Basin, the San Antonio River Basin, or the San Antonio Bay and
 estuary system related to species of concern as recommended in the
 approved work plan, or as approved by the Guadalupe-Blanco River
 Authority and the San Antonio River Authority.
 (d)  From money appropriated to the board from the fund, the
 board shall allocate not less than $1.5 million per state fiscal
 year for purposes described by Subsections (c)(5) and (6). After
 that first $1.5 million has been allocated, the board shall give
 priority to providing financial assistance for purposes described
 by Subsections (c)(1)-(4).
 Sec. 17.1003.  EXEMPTION FROM LAW ON USE OF DEDICATED
 REVENUE. Section 403.095, Government Code, does not apply to the
 fund.
 Sec. 17.1004.  DEPOSITS TO FUND. The board shall deposit in
 the fund all amounts received from the tax imposed under Chapter
 328, Tax Code.
 Sec. 17.1005.  INVESTMENT OF MONEY IN FUND; INTEREST.  (a)
 The board shall invest, reinvest, and direct the investment of
 money accumulated in the fund.
 (b)  Section 404.071, Government Code, does not apply to the
 fund.
 Sec. 17.1006.  USE OF FUND. The board shall provide
 financial assistance to an applicant from money in the fund only in
 accordance with this subchapter.  The board may not make financial
 assistance available under this subchapter from any other fund.
 Sec. 17.1007.  FEES; RULE.  (a)  The board by rule may set a
 fee at an amount necessary to recover the costs incurred by the
 board in administering the fund.
 (b)  The board may not set a fee for the filing of an
 application for financial assistance.
 (c)  Board fees may not exceed the cost to the board of
 performing the administrative functions necessary to administer
 the fund.  The fee may be deducted from the fund on an annual basis
 as determined by the board.
 Sec. 17.1008.  ELIGIBLE APPLICANT.  (a)  The following
 persons may apply to the board for financial assistance for a
 purpose described by Section 17.1002(c)(1), (2), (3), or (4):
 (1)  the Edwards Aquifer Authority; or
 (2)  a party to the implementing agreement authorized
 under Section 17.1009(b)(2) to apply for financial assistance.
 (b)  The following persons may apply to the board for
 financial assistance for a purpose described by Section
 17.1002(c)(5) or (6):
 (1)  the Guadalupe-Blanco River Authority; or
 (2)  the San Antonio River Authority.
 Sec. 17.1009.  APPLICATION FOR FINANCIAL ASSISTANCE. (a)  A
 person who applies to the board for financial assistance shall
 apply in affidavit form.
 (b)  The application must include:
 (1)  the name and contact information of the applicant
 and its principal officers;
 (2)  a resolution of the applicant representing that
 the filing of the application has been authorized by the governing
 body or other appropriate official of the applicant;
 (3)  a description of the purposes for which financial
 assistance is applied for under Section 17.1002(c);
 (4)  for applications for financial assistance under
 Section 17.1002(c)(1), (2), (3), or (4), a statement that the
 implementing agreement, habitat conservation plan, incidental take
 permit, or other appropriate regulatory document authorizes the
 proposed activity to be performed;
 (5)  for applications for financial assistance under
 Section 17.1002(c)(5) or (6):
 (A)  a statement that the financial assistance is
 for researching, planning, developing, and preparing the work plan
 for the Guadalupe River Basin, San Antonio River Basin, and San
 Antonio Bay and estuary system environmental flows program; or
 (B)  a description of a water project
 demonstrating that:
 (i)  the project is in the Guadalupe River
 Basin, the San Antonio River Basin, or the San Antonio Bay and
 estuary system;
 (ii)  the project relates to species of
 concern; and
 (iii)  the approved work plan, or the action
 of the Guadalupe-Blanco River Authority and the San Antonio River
 Authority, authorizes the proposed water project to be performed;
 (6)  citations to all appropriate documents requested
 by the board demonstrating that the proposed activity is
 authorized;
 (7)  a brief action plan for the proposed activity for
 the period for which financial assistance is sought;
 (8)  a budget showing the estimated total cost of the
 proposed activity and the amount anticipated to be expended for the
 period for which financial assistance is sought; and
 (9)  the amount of financial assistance requested.
 (c)  The application must be filed with the board not later
 than September 30th of the year preceding the year for which
 financial assistance is sought.
 Sec. 17.1010.  ACTION ON THE APPLICATION. (a)  The board
 shall approve an application under Section 17.1009 for an applicant
 that demonstrates:
 (1)  the applicant is eligible to apply under Section
 17.1008;
 (2)  authorization as described by Section
 17.1009(b)(2);
 (3)  the proposed activity is authorized for financial
 assistance in Section 17.1002(c);
 (4)  the proposed activity is authorized to be
 performed by the implementing agreement or work plan, or other
 authorization, as applicable;
 (5)  the action plan describes the proposed activity
 for the period for which financial assistance is sought;
 (6)  the budget states the estimated total costs of the
 proposed activities and the amount anticipated to be spent for the
 period for which financial assistance is sought;
 (7)  the fund balance is sufficient to provide
 financial assistance in the applied for amount; and
 (8)  the prioritization required by Section 17.1002(d)
 has been met, if applicable.
 (b)  The board may withhold action on an application if it
 identifies a consideration in Subsection (a) that is deficient and
 it allows reasonable time to file additional information before the
 application is reconsidered for final action.  If the reason for
 withholding action is the insufficiency of money in the fund, the
 board shall advise the applicant and withhold action on the
 application until sufficient money is available.
 (c)  The board shall notify the applicant in writing of its
 decision on the application.
 (d)  The board shall provide a written statement to an
 applicant whose application has been denied because it did not
 qualify under Subsection (a).  The statement must provide the
 reasons and justification for the denial.
 (e)  If the board approves an application under this section,
 it shall enter into a grant agreement with the applicant not later
 than the 30th day after the date it takes final action on the
 application and promptly remit the amount of the approved financial
 assistance to the applicant.
 Sec. 17.1011.  APPLICATION AMENDMENT. (a)  An applicant may
 amend an application for financial assistance by filing a written
 request to the board to take action on the application as amended.
 (b)  The board shall take action under Section 17.1010 on the
 amended application in the same manner as provided for in the
 original application.
 Sec. 17.1012.  DELEGATION TO EXECUTIVE ADMINISTRATOR. The
 board may delegate to the executive administrator its authority to
 take action on an application under this subchapter.
 Sec. 17.1013.  NOTICE OF ADDITIONAL MEASURES. (a)  If at any
 time during the term of the implementing agreement the Edwards
 Aquifer Authority determines that additional species-protection
 measures are required to achieve the biological goals of the
 Edwards Aquifer recovery implementation program and that
 additional financial assistance is required to pay for the
 additional measures, the Edwards Aquifer Authority shall give
 notice to the board and the comptroller that additional measures
 are required and that the sales and use tax rate will be increased
 as provided by Section 328.052(b), Tax Code, if the tax is being
 imposed at a rate of one-eighth of one percent.  The Edwards Aquifer
 Authority shall send the notice to the board and the comptroller by
 United States certified or registered mail.
 (b)  The notice must include:
 (1)  a summary of the findings of the adaptive
 management plan;
 (2)  a description of the alternative measures that are
 recommended to be implemented in addition to, or instead of, the
 species-protection measures that are being implemented under the
 implementing agreement;
 (3)  a summary of the results of the adaptive
 decision-making process; and
 (4)  a certified copy of the final decision by the
 United States Fish and Wildlife Service that the additional
 species-protection measures are required and that they are approved
 for implementation by the Edwards Aquifer recovery implementation
 program.
 Sec. 17.1014.  REPORT. Not later than April 1 of each year,
 the Edwards Aquifer Authority shall prepare and file with the board
 a report of:
 (1)  the preceding year's activities to implement the
 Edwards Aquifer recovery implementation program;
 (2)  the activities that are scheduled for the next
 year; and
 (3)  the amount of financial assistance that will
 likely be applied for in the next two years.
 Sec. 17.1015.  EXEMPTION FROM UNIFORM GRANT AND CONTRACT
 MANAGEMENT LAW. Chapter 783, Government Code, does not apply to
 financial assistance.
 SECTION 4.  ENVIRONMENTAL FLOW RECOMMENDATION. Section
 11.02362, Water Code, is amended by adding Subsection (t) to read as
 follows:
 (t)  On approval by the advisory group of the work plan for
 the river basin and bay system consisting of the Guadalupe River
 Basin, the San Antonio River Basin, and the San Antonio Bay and
 estuary system, the advisory group shall send to the comptroller by
 United States certified or registered mail a certified copy of the
 advisory group's approval action and a map of those river basins and
 bay system and give notice that the sales and use tax rate will be
 increased as provided by Section 328.052(b), Tax Code, if the tax is
 being imposed at a rate of one-eighth of one percent.
 SECTION 5.  TRANSITION. (a)  The Texas Water Development
 Board may not approve an application for financial assistance under
 Section 17.1010, Water Code, as added by this Act, before January 1,
 2012.
 (b) The Texas Water Development Board may not remit money
 under Subchapter N, Chapter 17, Water Code, as added by this Act,
 for applications for financial assistance approved in 2012 under
 Section 17.1010, Water Code, as added by this Act, before January 1,
 2013.
 SECTION 6.  EFFECTIVE DATE.  This Act takes effect
 immediately if it receives a vote of two-thirds of all the members
 elected to each house, as provided by Section 39, Article III, Texas
 Constitution.  If this Act does not receive the vote necessary for
 immediate effect, this Act takes effect September 1, 2011.