73R7258 MI-F
          By Bosse                                              H.B. No. 2209
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the Harris-Galveston Coastal Subsidence District.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  The Water Code is amended by adding Title 5 to
    1-5  read as follows:
    1-6                    TITLE 5.  SPECIAL LAW DISTRICTS
    1-7      CHAPTER 151.  HARRIS-GALVESTON COASTAL SUBSIDENCE DISTRICT
    1-8                   SUBCHAPTER A.  GENERAL PROVISIONS
    1-9        Sec. 151.001.  CREATION.  (a)  The Harris-Galveston Coastal
   1-10  Subsidence District is an underground water conservation district
   1-11  created under and essential to accomplish the purposes of  Article
   1-12  XVI, Section 59, of the Texas Constitution.
   1-13        (b)  The district is a governmental agency and body politic
   1-14  and corporate.
   1-15        Sec. 151.002.  DEFINITIONS.  In this chapter:
   1-16              (1)  "Board" means the board of directors of the
   1-17  district.
   1-18              (2)  "Commission" means the Texas Natural Resource
   1-19  Conservation Commission.
   1-20              (3)  "District" means the Harris-Galveston Coastal
   1-21  Subsidence District.
   1-22              (4)  "Drill" means drilling, equipping, or completing
   1-23  wells or substantially altering the size of wells or well pumps.
   1-24              (5)  "Groundwater" means water located beneath the
    2-1  earth's surface, but does not include water produced with oil in
    2-2  the production of oil and gas.
    2-3              (6)  "Groundwater-withdrawal year" means the period
    2-4  beginning January 1 of one year and ending December 31 of that same
    2-5  year.
    2-6              (7)  "Subsidence" means the lowering in elevation of
    2-7  the surface of land by the withdrawal of groundwater.
    2-8              (8)  "Water conservation" means any measure that seeks
    2-9  to make a water supply available for alternative or future uses,
   2-10  including best management practices, reduction in consumption,
   2-11  reduction in loss or waste, improved efficiency or accountability,
   2-12  recycling, reuse, or pollution prevention.
   2-13              (9)  "Well" means a facility, device, or method used to
   2-14  withdraw groundwater from the groundwater supply within the
   2-15  district.
   2-16              (10)  "Well owner" means a person who has an ownership
   2-17  interest in a well, owns land on which a well is located, owns the
   2-18  water withdrawn or to be withdrawn from a well, or operates a well.
   2-19              (11)  "Withdraw" means the act of extracting
   2-20  groundwater by pumping or some other method.
   2-21        Sec. 151.003.  BOUNDARIES.  (a)  The district includes all of
   2-22  the area located within the boundaries of Harris County and
   2-23  Galveston County.
   2-24        (b)  Except as provided in this subsection, an adjoining
   2-25  county may be added to the district on application of the
   2-26  commissioners court of the adjoining county and by complying with
   2-27  the procedures provided in Sections 55.730-55.744 of this code, to
    3-1  the extent that those provisions are applicable.  Any county added
    3-2  to the district under this subsection is subject to the
    3-3  jurisdiction of the board and this chapter, and two members shall
    3-4  be added to the board.  One shall be chosen by the commissioners
    3-5  court of the county added to the district and one shall be chosen
    3-6  by the mayor of the city that has the largest population in the
    3-7  county that is added.  The two new members shall draw lots to
    3-8  establish staggered terms of office.
    3-9        Sec. 151.004.  PURPOSE AND INTENT; FINDING OF BENEFIT.  (a)
   3-10  The purpose of this chapter is to provide for the regulation of the
   3-11  withdrawal of groundwater within the boundaries of the district for
   3-12  the purpose of ending subsidence, which contributes to or
   3-13  precipitates flooding, inundation, or overflow of the district,
   3-14  including without limitation rising waters resulting from storms or
   3-15  hurricanes.
   3-16        (b)  The legislature intends that the district shall
   3-17  administer and enforce this chapter and shall exercise the
   3-18  district's rights, powers, and duties in a manner that will
   3-19  effectively and expeditiously accomplish the purposes of this
   3-20  chapter.
   3-21        (c)  All of the land and other property included within the
   3-22  boundaries of the district will be benefited by the works and
   3-23  projects that are to be accomplished by the district under powers
   3-24  conferred by Article XVI, Section 59, of the Texas Constitution.
   3-25  The district is created to serve a public use and benefit.
   3-26        Sec. 151.005.  POWERS AND DUTIES IN GENERAL.  (a)  The
   3-27  district has all of the rights, powers, privileges, authority,
    4-1  functions, and duties provided by the general law of this state,
    4-2  including Chapters 50 and 52 of this code, applicable to
    4-3  underground water conservation districts created under Article XVI,
    4-4  Section 59, of the Texas Constitution.
    4-5        (b)  Withdrawals of groundwater covered by this chapter are
    4-6  subject to reasonable rules and orders adopted by the board, taking
    4-7  into account all factors including availability of surface water,
    4-8  economic impact on persons and the community, degree and effect of
    4-9  subsidence on the surface of land, and differing topographical and
   4-10  geophysical characteristics of land areas in the district.  The
   4-11  board has the powers and duties specifically described in this
   4-12  chapter and all other powers necessary or convenient to carry out
   4-13  its responsibilities and achieve the purpose of this chapter.
   4-14        (c)  Sections 52.1511, 52.156, 52.167, 52.168, 52.170, and
   4-15  52.173 of this code and Subchapters B, C, H, I, J, and K of Chapter
   4-16  52 of this code do not apply to the district.
   4-17        (d)  The district may not sell or distribute surface water or
   4-18  groundwater for any purpose.
   4-19        (e)  This chapter prevails over any other law in conflict or
   4-20  inconsistent with this chapter.
   4-21           (Sections 151.006-151.030 reserved for expansion
   4-22               SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
   4-23        Sec. 151.031.  BOARD OF DIRECTORS.  (a)  The district is
   4-24  governed by a board of directors composed of 17 members who serve
   4-25  for two-year, staggered terms.
   4-26        (b)  The board consists of:
   4-27              (1)  six members from the city in the district having
    5-1  the largest population of any city in the district, to be appointed
    5-2  by the mayor of that city, one of these members to be a
    5-3  representative of industry;
    5-4              (2)  one member from the city in the district having
    5-5  the next largest population of any city in the district, to be
    5-6  appointed by the mayor of that city;
    5-7              (3)  two members from all incorporated cities in
    5-8  Galveston County, appointed by the mayors of those cities;
    5-9              (4)  one member from the city of Baytown, appointed by
   5-10  the mayor of that city;
   5-11              (5)  two members appointed by the commissioners court
   5-12  of Harris County, one to be a representative of agriculture and one
   5-13  to be a representative of industry, provided that neither of these
   5-14  members is a resident of the city in the district having the
   5-15  largest population;
   5-16              (6)  two members appointed by the commissioners court
   5-17  of Galveston County;
   5-18              (7)  one member from Harris County chosen by the mayors
   5-19  of the cities of Deer Park, Galena Park, La Porte, Nassau Bay, and
   5-20  Seabrook and the president of the Clear Lake City Water Authority;
   5-21              (8)  one member from Harris County chosen by the mayors
   5-22  of the cities of West University Place, Southside Place, Bellaire,
   5-23  and Jacinto City; and
   5-24              (9)  one member from Harris County chosen by the mayors
   5-25  of the cities of Humble, Piney Point Village, Hedwig Village,
   5-26  Bunker Hill Village, Hunters Creek Village, Hilshire Village, and
   5-27  the village of Spring Valley.
    6-1        (c)  A member of the board must be a resident of and a
    6-2  qualified voter in the district.
    6-3        Sec. 151.032.  OFFICERS.  (a)  Each year at the first meeting
    6-4  after the new directors take office, the members shall select one
    6-5  of their number to serve as chairman, one to serve as
    6-6  vice-chairman, and one to serve as secretary.
    6-7        (b)  The chairman shall preside over meetings of the board,
    6-8  and in the chairman's absence the vice-chairman shall preside.
    6-9        Sec. 151.033.  VACANCIES.  If a vacancy occurs on the board,
   6-10  a person representing the same area from which the person who
   6-11  vacates the position is appointed shall be chosen by the person or
   6-12  persons designated in Section 151.031(b) to serve the unexpired
   6-13  term.
   6-14        Sec. 151.034.  MEETINGS.  The board shall meet for a regular
   6-15  meeting once each month at a time set by the board and may hold
   6-16  special meetings at the call of the chairman or on the written
   6-17  request of at least three members of the board.
   6-18        Sec. 151.035.  GENERAL MANAGER.  (a)  The board shall employ
   6-19  a general manager as the chief administrative officer of the
   6-20  district.  The board may delegate to the general manager full
   6-21  authority to manage and operate the affairs of the district subject
   6-22  only to orders of the board.
   6-23        (b)  The duties of the general manager include:
   6-24              (1)  administering the orders of the board;
   6-25              (2)  coordination with state, federal, and local
   6-26  agencies;
   6-27              (3)  overseeing development of district plans and
    7-1  programs; and
    7-2              (4)  other duties assigned by the board.
    7-3        (c)  The board shall determine the terms of office and
    7-4  employment and the compensation to be paid the general manager, and
    7-5  the general manager may be discharged by a majority vote of the
    7-6  board.
    7-7        Sec. 151.036.  EMPLOYEES; BOND.  (a)  The general manager
    7-8  shall employ all persons necessary for the proper handling of the
    7-9  business and operation of the district and may employ attorneys,
   7-10  bookkeepers, engineers, and other expert and specialized personnel
   7-11  considered necessary.  The general manager shall determine
   7-12  compensation to be paid by the district.
   7-13        (b)  The general manager may discharge employees of the
   7-14  district.
   7-15        (c)  The board shall require an employee who collects, pays,
   7-16  or handles funds of the district to furnish good and sufficient
   7-17  bond, payable to the district, for a sufficient amount to safeguard
   7-18  the district.  The bond shall be conditioned on the faithful
   7-19  performance of the employee's duties and on accounting for all
   7-20  funds and property of the district in the employee's hands.  The
   7-21  district shall pay for the bond.
   7-22        Sec. 151.037.  SUITS.  (a)  The district may sue and be sued
   7-23  in the courts of this state in the name of the district by and
   7-24  through the board.
   7-25        (b)  The attorney general shall defend the district in suits
   7-26  brought against the district in all district and appellate courts
   7-27  of this state and in the courts of the United States.
    8-1        (c)  All courts shall take judicial notice of the creation of
    8-2  the district and of its boundaries.
    8-3        Sec. 151.038.  ACCESS TO PROPERTY.  (a)  To carry out
    8-4  technical and other investigations necessary to the implementation
    8-5  of this chapter, the board and its agents and employees are
    8-6  entitled to access to all property within the district.
    8-7        (b)  Before entering property for the purposes of this
    8-8  section, the person seeking access shall give notice to the owner
    8-9  of the property as provided by district rules and shall present
   8-10  proper credentials.
   8-11        (c)  The board and its agents and employees who enter private
   8-12  property shall observe the establishment's rules concerning safety,
   8-13  internal security, and fire protection.
   8-14           (Sections 151.039-151.070 reserved for expansion
   8-15                   SUBCHAPTER C.  POWERS AND DUTIES
   8-16        Sec. 151.071.  RULES.  (a)  After notice and hearing, the
   8-17  board shall adopt and enforce rules designed to expeditiously and
   8-18  effectively implement this chapter and accomplish its purposes,
   8-19  including rules governing procedure before the board.
   8-20        (b)  The board shall compile its rules in a book and make
   8-21  them available for use and inspection at the district's principal
   8-22  office.
   8-23        Sec. 151.072.  HEARINGS.  (a)  Board hearings shall be
   8-24  conducted as provided by this section.  Hearings are governed by
   8-25  the open meetings law, Chapter 271, Acts of the 60th Legislature,
   8-26  Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil
   8-27  Statutes).  Except as provided by this section, notice of hearings
    9-1  shall be provided according to that law.
    9-2        (b)  At a regular meeting of the board, the board shall set
    9-3  the dates, times, and locations for any hearings to be held under
    9-4  this chapter and shall direct the general manager of the district
    9-5  to give notice.
    9-6        (c)  Written notice of a hearing shall be given to each
    9-7  county and municipal government in the district and to each person
    9-8  that the board believes has an interest in the subject matter to be
    9-9  dealt with at the hearing.
   9-10        (d)  Notice of a hearing shall be published at least once in
   9-11  a newspaper of general circulation in each county in the district.
   9-12        (e)  A copy of the notice shall be posted at the county
   9-13  courthouse of each county in the district in the place where
   9-14  notices are usually posted.
   9-15        (f)  A person who desires to appear at a hearing and present
   9-16  testimony, evidence, exhibits, or other information may do so in
   9-17  person, by counsel, or both.
   9-18        (g)  The board may hold hearings at any location in the
   9-19  district.
   9-20        (h)  The board may recess a hearing from day to day.
   9-21        (i)  The board may use hearing examiners to hear any subject
   9-22  set for the hearing so long as the decision on that subject is the
   9-23  decision of the board.  Procedures for use of hearing examiners
   9-24  shall be provided by rule.
   9-25        Sec. 151.073.  COMPELLING TESTIMONY, SWEARING WITNESSES, AND
   9-26  SUBPOENAS.  (a)  The board may compel the testimony of any person
   9-27  necessary to carry out its powers, duties, and functions under this
   10-1  chapter and may administer oaths to persons compelled to testify
   10-2  before the board or any person designated by the board.
   10-3        (b)  The board may issue subpoenas to compel the testimony of
   10-4  any person and the production of any document necessary to carry
   10-5  out the powers, duties, and functions under this chapter.
   10-6        Sec. 151.074.  DISTRICT PLAN.  (a)  The board shall formulate
   10-7  a plan to control and prevent subsidence in the district.  The plan
   10-8  shall accomplish that purpose by reducing groundwater withdrawals
   10-9  to amounts that will restore and maintain sufficient artesian
  10-10  pressure to control and prevent subsidence.
  10-11        (b)  The plan shall specify in as much detail as practicable
  10-12  the acts, procedures, performance, and avoidance that are necessary
  10-13  to carry out the purposes of this chapter.
  10-14        Sec. 151.075.  PLANNING PROCEDURES.  (a)  Included in the
  10-15  information to be gathered for formulation of the plan shall be:
  10-16              (1)  a list of all wells in the district that are
  10-17  subject to regulation under this chapter;
  10-18              (2)  an accurate estimate of groundwater production
  10-19  from all wells or proposed wells in the district;
  10-20              (3)  an accurate estimate of the amount of groundwater
  10-21  that may be produced from each area in the district without causing
  10-22  reduction of artesian pressure that will lead to subsidence in the
  10-23  district;
  10-24              (4)  an accurate estimate of the current and future
  10-25  water needs in the district;
  10-26              (5)  a list of all available sources of water, other
  10-27  than groundwater, in the area of the district;
   11-1              (6)  the purposes for which the water is currently used
   11-2  and for which it is proposed to be used in the future;
   11-3              (7)  information relating to formulation of a permit
   11-4  system; and
   11-5              (8)  other necessary information and material to carry
   11-6  out the management of groundwater in the district and to
   11-7  effectively and expeditiously accomplish the purposes of this
   11-8  chapter.
   11-9        (b)  Before the plan is adopted, the board shall hold a
  11-10  hearing to consider the proposed plan.
  11-11        (c)  After the hearing, the board shall make any changes it
  11-12  considers necessary according to evidence and material presented at
  11-13  the hearing and shall adopt the plan.
  11-14        (d)  The plan adopted under this section may be amended or
  11-15  repealed and a new plan adopted as provided in this section for the
  11-16  adoption of the original plan.  A plan, once adopted, remains in
  11-17  effect until the adoption of a new plan.
  11-18        Sec. 151.076.  BOARD INVESTIGATIONS.  At least once each year
  11-19  and at any other time that the board considers necessary, the board
  11-20  shall have its staff and the staff of the Texas Water Development
  11-21  Board, if necessary, make a complete study of the groundwater
  11-22  situation in the district and determine the water level, rates of
  11-23  withdrawal, amounts of withdrawal, and other information relating
  11-24  to the withdrawal of groundwater that may effect the subsidence of
  11-25  land in the district.
  11-26        Sec. 151.077.  ANNUAL GROUNDWATER-WITHDRAWAL DETERMINATION.
  11-27  (a)  On or before March 31 of each year, the board shall hold a
   12-1  hearing to determine the effects of groundwater withdrawal during
   12-2  the preceding groundwater-withdrawal year on the subsidence of land
   12-3  within the district.
   12-4        (b)  At the hearing, the board shall consider information
   12-5  developed under Sections 151.127 and 151.076 of this code in
   12-6  addition to information represented by persons appearing before the
   12-7  board.
   12-8        (c)  After the hearing, the board shall consider all
   12-9  information presented to it, shall make determinations of
  12-10  groundwater withdrawal in the district during the immediately
  12-11  preceding groundwater-withdrawal year, and shall make findings of
  12-12  the effects of groundwater withdrawal during that
  12-13  groundwater-withdrawal year on the subsidence of land in the
  12-14  district.  Those findings and determinations shall be included in a
  12-15  report adopted by the board and shall be made available for
  12-16  examination by any interested persons.
  12-17        Sec. 151.078.  REGULATION OF SPACING AND PRODUCTION.  (a)  To
  12-18  minimize as far as practicable the drawdown of the water table and
  12-19  the reduction of artesian pressure and to control and prevent
  12-20  subsidence, the board may provide for the spacing of wells and may
  12-21  regulate the production of groundwater from the wells, taking into
  12-22  consideration, among other relevant factors, the economic impact on
  12-23  well owners and the resulting effect on subsidence.
  12-24        (b)  Before issuing an order or rule under this section, the
  12-25  board shall set a hearing on the proposed order or rule and shall
  12-26  issue notice of the hearing.
  12-27        Sec. 151.079.  WATER CONSERVATION MEASURES.  The board may
   13-1  adopt rules requiring the use of water conservation measures as a
   13-2  means to reduce groundwater withdrawals.  The district may also
   13-3  cooperate with the commission and any local government to establish
   13-4  water conservation goals, guidelines, and plans to be used within
   13-5  the district.  The district may contract with any local government
   13-6  in the district to provide services necessary to meet water
   13-7  conservation requirements established by the commission.
   13-8        Sec. 151.080.  REQUIRING WATER-METERING DEVICES.  The board
   13-9  may require water-metering devices to be placed on wells.
  13-10        Sec. 151.081.  MONITORING AND SUPERVISION BY DISTRICT.  The
  13-11  district may use subsidence compaction monitors, water-level
  13-12  observation wells, and other materials and equipment to determine
  13-13  the amount of groundwater that may be produced while at the same
  13-14  time allowing the rebound and stabilization of groundwater to a
  13-15  level that will halt subsidence.
  13-16        Sec. 151.082.  RESEARCH AND STUDIES.  The district may
  13-17  conduct any studies and research that the board considers necessary
  13-18  to implement this chapter.  The district may use the services of
  13-19  geologists, hydrologists, registered professional engineers, or
  13-20  other expert personnel to accomplish the purposes of this section.
  13-21        Sec. 151.083.  COOPERATION WITH AND ASSISTANCE OF OTHER
  13-22  GOVERNMENTAL ENTITIES; GRANTS.  (a)  The board may cooperate with
  13-23  and request the assistance of local governments and any agency of
  13-24  the state or of the United States in implementing this chapter.
  13-25        (b)  The district may make or accept grants, gratuities,
  13-26  advances, or loans in any form to or from any public source
  13-27  approved by the board, including any governmental entity, and may
   14-1  enter into contracts, agreements, and covenants that the board
   14-2  considers appropriate in connection with grants, gratuities,
   14-3  advances, or loans.
   14-4        Sec. 151.084.  EXCLUSIONS.  (a)  The regulatory provisions of
   14-5  this chapter do not apply to:
   14-6              (1)  wells regulated under Chapter 27 of this code;
   14-7              (2)  other wells as provided in the rules of the
   14-8  district; and
   14-9              (3)  wells with a casing diameter of less than five
  14-10  inches that serve a single-family dwelling.
  14-11        (b)  The board by rule may require the registration of any
  14-12  well in the district.
  14-13           (Sections 151.085-151.120 reserved for expansion
  14-14                        SUBCHAPTER D.  PERMITS
  14-15        Sec. 151.121.  PERMIT REQUIREMENT.  Before a well may be
  14-16  drilled or operated within the boundaries of the district the owner
  14-17  or operator of the well must obtain a permit from the board.
  14-18        Sec. 151.122.  TERM OF PERMIT.  (a)  A permit issued under
  14-19  this chapter may be for a term of up to five years as set by the
  14-20  board.
  14-21        (b)  A permit does not become a vested right in the holder.
  14-22  A permit may be revoked or suspended or its terms may be modified
  14-23  or amended after notice and hearing whenever reasonably necessary
  14-24  to accomplish the purposes of this chapter.
  14-25        Sec. 151.123.  RENEWAL OF PERMIT.  A permit for a well may be
  14-26  renewed by the board in the manner provided for obtaining the
  14-27  original permit.
   15-1        Sec. 151.124.  APPLICATION FOR PERMIT.  (a)  A person who
   15-2  desires to obtain a permit under this chapter shall submit to the
   15-3  board an application.
   15-4        (b)  The application must state:
   15-5              (1)  the name of the person requesting the permit;
   15-6              (2)  the address of the person requesting the permit;
   15-7              (3)  the location and wellhead elevation of the well or
   15-8  proposed well;
   15-9              (4)  the amount of water being produced or proposed to
  15-10  be produced; and
  15-11              (5)  any other information necessary for the board to
  15-12  control and prevent subsidence in the district.
  15-13        (c)  The application shall be accompanied by a reasonable
  15-14  application fee to be used for processing the application, the
  15-15  amount of which shall be set by the board.
  15-16        Sec. 151.125.  NOTICE AND HEARING ON PERMIT.  (a)  On
  15-17  receiving an application for a permit, the board shall issue notice
  15-18  and set a time for a hearing on the application.
  15-19        (b)  Notice of the date, time, and location of the hearing
  15-20  shall be given by the board to the applicant by certified mail,
  15-21  return receipt requested, and in accordance with the open meetings
  15-22  law, Chapter 271, Acts of the 60th Legislature, Regular Session,
  15-23  1967 (Article 6252-17, Vernon's Texas Civil Statutes).
  15-24        (c)  The board may consider as many applications for permits
  15-25  as it thinks necessary at any one hearing.
  15-26        Sec. 151.126.  DECISION AND ISSUANCE OF A PERMIT.  (a)
  15-27  Within a reasonable period after the hearing, but not later than
   16-1  the 60th day after the date of the hearing, the board shall decide
   16-2  whether or not to issue a permit and, if the decision is to issue
   16-3  the permit, shall formulate the terms of the permit.
   16-4        (b)  In deciding whether or not to issue a permit and in
   16-5  setting the terms of the permit, the board shall consider, along
   16-6  with the purpose of this chapter and all other relevant factors:
   16-7              (1)  the district plan;
   16-8              (2)  the quality, quantity, and availability of surface
   16-9  water at prices competitive with those charged by suppliers of
  16-10  surface water in the district;
  16-11              (3)  the economic impact on the applicant from grant or
  16-12  denial of the permit, or the terms prescribed by a permit, in
  16-13  relation to the effect on subsidence that would result; and
  16-14              (4)  the applicant's use of water conservation
  16-15  measures.
  16-16        (c)  The board shall grant a permit to an applicant if the
  16-17  board finds, on presentation of adequate proof, that there is no
  16-18  other adequate and available substitute or supplemental source of
  16-19  surface waters at prices competitive with those charged by
  16-20  suppliers of surface water in the district and that compliance with
  16-21  any provision of this chapter or any district rule will result in
  16-22  an arbitrary taking of property or in the practical closing and
  16-23  elimination of any lawful business, occupation, or activity without
  16-24  sufficient corresponding benefit or advantage to the people.
  16-25        (d)  If the board decides to issue the permit, the permit
  16-26  shall be issued to the applicant stating the terms prescribed by
  16-27  the board.
   17-1        (e)  The permit shall include:
   17-2              (1)  the name and address of the person to whom the
   17-3  permit is issued;
   17-4              (2)  the location of the well;
   17-5              (3)  the date the permit is to expire;
   17-6              (4)  conditions and restrictions placed on the
   17-7  withdrawal of groundwater; and
   17-8              (5)  other terms and conditions necessary to control
   17-9  and prevent subsidence.
  17-10        (f)  The board may not require a city with a population of
  17-11  less than 100,000 to reduce its groundwater withdrawal by more than
  17-12  50 percent in any three-year period if the city or its residents
  17-13  would face a hardship by that reduction.  The board shall determine
  17-14  in public hearing whether or not the reduction would constitute a
  17-15  hardship to the city or its residents.  In this subsection,
  17-16  "hardship" means any reduction in groundwater withdrawal that
  17-17  would:
  17-18              (1)  cause the city to have an inadequate supply of
  17-19  water for its residents; or
  17-20              (2)  cause an increase of 50 percent or more in water
  17-21  rates for the city or its residents.
  17-22        Sec. 151.127.  ANNUAL REPORTS.  Before January 31 of each
  17-23  year, each owner of a well who holds a permit under this chapter
  17-24  shall submit to the board a report stating:
  17-25              (1)  the name of the owner of the well;
  17-26              (2)  the total amount of groundwater produced by the
  17-27  well during the immediately preceding 12-month period;
   18-1              (3)  the total amount of groundwater produced by the
   18-2  well during each separate month of the immediately preceding
   18-3  12-month period;
   18-4              (4)  the purpose for which the groundwater was used;
   18-5  and
   18-6              (5)  any other information considered necessary by the
   18-7  board.
   18-8        Sec. 151.128.  PERMIT FEE.  (a)  At the time of issuance or
   18-9  renewal of a permit, the board shall collect from the applicant a
  18-10  permit fee, established by a schedule based on the term of the
  18-11  permit and the maximum annual amount of groundwater authorized by
  18-12  the board to be withdrawn from the well.
  18-13        (b)  The rate of the fee to be collected by the board under
  18-14  this section shall be determined by the board after a hearing.  The
  18-15  rate of the fee may not exceed 110 percent of the highest rate
  18-16  charged by the city of Houston for surface water supplied to its
  18-17  customers in the district.
  18-18        (c)  The rate of the permit fee applicable to any well used
  18-19  for the irrigation of agricultural crops shall be the lowest of:
  18-20              (1)  70 percent of the lowest rate established under
  18-21  Subsection (b) of this section;
  18-22              (2)  70 percent of one cent for each thousand gallons
  18-23  authorized to be withdrawn, provided that the board may adjust the
  18-24  one cent for each thousand gallons each year after 1992 to account
  18-25  for increases, if any, in the most recently published Consumer
  18-26  Price Index for All Urban Consumers (Houston, Texas, Average), as
  18-27  determined by the United States Department of Labor, Bureau of
   19-1  Labor Statistics, for All Items; or
   19-2              (3)  the rate established in accordance with Subsection
   19-3  (d) of this section.
   19-4        (d)  Using information prepared by the United States
   19-5  Geological Survey, which shall be presumed correct, the board, at a
   19-6  hearing held in accordance with Section 151.072 of this code, shall
   19-7  calculate and determine the difference between water wells pumped
   19-8  for irrigation of agricultural crops and water wells pumped for
   19-9  other purposes in terms of their relative contribution to
  19-10  subsidence, expressed as a percentage.  The rate of the fee for
  19-11  wells used for irrigation of agricultural crops shall be sufficient
  19-12  for the total of those fees to contribute to the fee revenue of the
  19-13  district the same percentage as the agricultural use contributes to
  19-14  subsidence.
  19-15        (e)  The funds obtained from the permit fees collected under
  19-16  this section shall be used to cover the costs of the board in
  19-17  issuing permits and performing other regulatory functions of the
  19-18  district.
  19-19        Sec. 151.129.  LIMITATIONS ON CONVERSION TO SURFACE WATER.
  19-20  (a)  The board may not issue an order requiring a person to
  19-21  completely or partially discontinue the use of groundwater unless
  19-22  the person is able to acquire a water supply that is composed of
  19-23  surface water needed to replace the water supply covered by the
  19-24  order.  This section does not limit the board's authority to issue
  19-25  orders and rules requiring a person to reduce groundwater use by
  19-26  eliminating waste or implementing water conservation.
  19-27        (b)  If the person covered by an order under this section
   20-1  acquires an alternative water supply to fulfill the needs created
   20-2  by the board's order under this section and files with the
   20-3  commission a written request for monitoring of the alternative
   20-4  supply, the commission shall monitor annually from the date of
   20-5  request to the expiration of the annual permit the water delivered
   20-6  to the person covered by the order to determine the percentage of
   20-7  that water that is surface water and the percentage of that water
   20-8  that is groundwater.
   20-9        (c)  The water deliveries must be monitored at random times
  20-10  at all points of connection between the purchaser's and seller's
  20-11  water systems.  Samples taken through monitoring must be analyzed
  20-12  by water chemists employed by or contracting with the commission.
  20-13  The water chemist making each analysis shall issue a certified
  20-14  written analysis of the percentages of surface water and
  20-15  groundwater included in the sample.
  20-16        (d)  Not later than the 15th day after the last day of each
  20-17  permit year, the commission shall issue an annual certified written
  20-18  analysis based on all of the samples collected that will state the
  20-19  annual average percentage of surface water and the annual average
  20-20  percentage of groundwater provided to the purchaser by the seller
  20-21  for that permit year.  In addition to the percentage of groundwater
  20-22  authorized to be used by the board's order, the person may use in
  20-23  the current permit year an additional percentage of groundwater
  20-24  that is equal to a percentage derived by multiplying the annual
  20-25  average percentage of groundwater delivered to that person during
  20-26  the preceding permit year by the total percentage of alternative
  20-27  water supply mandated by the board's order for the current year.
   21-1        (e)  The commission shall assess reasonable fees to cover the
   21-2  costs of the water sampling and analysis, one-half to the water
   21-3  purchaser and one-half to the water seller.  On request, the
   21-4  commission shall make results of the analysis available to the
   21-5  purchaser, the seller, or the board.
   21-6        (f)  In this section, "alternative water supply" means a
   21-7  water supply that it is necessary for the person to acquire from
   21-8  sources other than the person's own groundwater supply to comply
   21-9  with the board's order.
  21-10           (Sections 151.130-151.160 reserved for expansion
  21-11                   SUBCHAPTER E.  APPEALS; PENALTIES
  21-12        Sec. 151.161.  APPEAL OF SURFACE WATER RATES.  If a person
  21-13  required to convert to surface water purchases that water supply
  21-14  wholesale from a political subdivision as defined by Section
  21-15  12.013(b) of this code, the rates charged by the political
  21-16  subdivision to that person may be appealed to the commission under
  21-17  Chapter 12 of this code, and the rules adopted under that chapter
  21-18  apply to appeals under this section.  The commission shall convene
  21-19  the hearing on the appeal not later than the 180th day after the
  21-20  date on which the appeal is filed with the commission and shall
  21-21  render a final decision on the appeal not later than the 60th day
  21-22  following the date on which the hearing ends.
  21-23        Sec. 151.162.  APPEAL OF DISTRICT ACTIONS.  (a)  A rule,
  21-24  order, or other official action of the district under this chapter
  21-25  may be appealed to a district court in any county in the district
  21-26  by a person who is adversely affected.  An appeal under this
  21-27  section must be filed within 45 days after the rule, order, or
   22-1  other official action appealed from is adopted or taken.
   22-2        (b)  On written request of a person residing in or owning
   22-3  real property in the district, the board shall make written
   22-4  findings and conclusions with respect to a rule, order, or other
   22-5  official action of the district and provide certified copies of
   22-6  those findings and conclusions to the requesting person not later
   22-7  than the 35th day after the date on which the board received the
   22-8  written request.
   22-9        (c)  The review on appeal under this section is governed by
  22-10  the substantial evidence rule as defined by Section 19(e),
  22-11  Administrative Procedure and Texas Register Act (Article 6252-13a,
  22-12  Vernon's Texas Civil Statutes).
  22-13        (d)  For purposes of this section, "a person who is adversely
  22-14  affected" includes a person residing in or owning real property in
  22-15  the district whose residence or real property is subsiding.
  22-16        Sec. 151.163.  APPEAL OF CERTAIN DISTRICT ACTIONS TO THE
  22-17  COMMISSION.  (a)  As an alternative to the appeal provided in
  22-18  Section 151.162 of this code, a person who is granted a permit
  22-19  authorizing withdrawal of groundwater in an amount less than
  22-20  requested by that person may appeal the board's final decision to
  22-21  the commission.  The appeal shall be filed not later than the 60th
  22-22  day after the date on which the board issues its final order.  A
  22-23  person shall be informed in the notice of public hearing when an
  22-24  order to convert to surface water is to be considered.
  22-25        (b)  On written request of the person proposing to appeal an
  22-26  order under this section, the board shall make written findings and
  22-27  conclusions with respect to the order and shall provide certified
   23-1  copies of the findings and conclusions to the requesting person not
   23-2  later than the 35th day after the date on which the board received
   23-3  the written request.
   23-4        (c)  The effect of a board order is stayed until the decision
   23-5  of the commission in an appeal under this section is final.
   23-6        (d)  The review on appeal by the commission under this
   23-7  section is governed by the substantial evidence rule as defined by
   23-8  Section 19(e), Administrative Procedure and Texas Register Act
   23-9  (Article 6252-13a, Vernon's Texas Civil Statutes).
  23-10        (e)  The commission may adopt necessary rules to carry out
  23-11  this section.
  23-12        (f)  An appeal from a final decision of the commission is to
  23-13  a district court in Travis County.  Any party to the proceedings
  23-14  before the commission may appeal a decision of the district court
  23-15  in the manner provided for other civil actions, but a party
  23-16  appealing a decision of a district court is not required to provide
  23-17  an appeal bond.
  23-18        (g)  The review of a commission order on appeal shall be
  23-19  under the substantial evidence rule.
  23-20        (h)  Under this section, the commission may adopt and assess
  23-21  reasonable and necessary fees adequate to recover the costs of the
  23-22  commission in administering this section.
  23-23        Sec. 151.164.  PENALTIES.  (a)  If it appears that a person
  23-24  has violated or is violating or threatening to violate this
  23-25  chapter, or any rule, permit, or other order of the district issued
  23-26  or adopted under this chapter, the district may file a civil suit
  23-27  in a district court in the district for:
   24-1              (1)  injunctive relief to restrain the person from
   24-2  continuing the violation or threat of violation;
   24-3              (2)  the assessment and recovery of a civil penalty of
   24-4  not less than $50 nor more than $5,000 for each violation and for
   24-5  each day of violation; or
   24-6              (3)  both injunctive relief and civil penalties.
   24-7        (b)  On application for injunctive relief and a finding that
   24-8  a person is violating or threatening to violate a provision of this
   24-9  chapter or a rule, permit, or other order of the district under
  24-10  this chapter, the district court shall grant any injunctive relief
  24-11  the facts may warrant.
  24-12        (c)  At the request of the board, or the general manager if
  24-13  authorized by the board, the attorney general shall institute and
  24-14  conduct a suit in the name of the district for injunctive relief or
  24-15  to recover a civil penalty or for both injunctive relief and
  24-16  penalty as authorized by this section.
  24-17        (d)  The district is not required to post bond or other
  24-18  security with the court.
  24-19        SECTION 2.  The following acts are repealed:
  24-20              (1)  Chapter 284, Acts of the 64th Legislature, Regular
  24-21  Session, 1975;
  24-22              (2)  Chapter 557, Acts of the 65th Legislature, Regular
  24-23  Session, 1977; and
  24-24              (3)  Chapter 1107, Acts of the 70th Legislature,
  24-25  Regular Session, 1987.
  24-26        SECTION 3.  (a)  If an Act amending and consolidating the
  24-27  laws relating to conservation and reclamation districts is passed
   25-1  by the 73rd Legislature, Regular Session, 1993, and finally becomes
   25-2  law:
   25-3              (1)  a reference in Section 151.003(b), Water Code, as
   25-4  added by this Act, to Sections 55.730-55.744, Water Code, is a
   25-5  reference to Subchapter I, Chapter 49, Water Code; and
   25-6              (2)  a reference in Section 151.005(a), Water Code, as
   25-7  added by this Act, to Chapter 50, Water Code, is a reference to
   25-8  Chapter 49, Water Code.
   25-9        (b)  If an Act described by Subsection (a) of this section
  25-10  does not become law, this section has no effect.
  25-11        SECTION 4.  The powers, duties, rights, and obligations of
  25-12  the Texas Natural Resource Conservation Commission under this Act
  25-13  are the powers, duties, rights, and obligations of the Texas Water
  25-14  Commission or its successor if:
  25-15              (1)  the change in name of the Texas Water Commission
  25-16  to the Texas Natural Resource Conservation Commission does not take
  25-17  effect as provided by Section 1.085, Chapter 3, Acts of the 72nd
  25-18  Legislature, 1st Called Session, 1991;
  25-19              (2)  the transfer of the powers, duties, rights, and
  25-20  obligations of the Texas Water Commission to the Texas Natural
  25-21  Resource Conservation Commission does not take effect as provided
  25-22  by Chapter 3, Acts of the 72nd Legislature, 1st Called Session,
  25-23  1991; or
  25-24              (3)  the 73rd Legislature does not pass an Act that
  25-25  becomes law and provides for the transfer of certain powers,
  25-26  duties, rights, and obligations of the Texas Water Commission to
  25-27  the Texas Natural Resource Conservation Commission on or before
   26-1  September 1, 1993.
   26-2        SECTION 5.  This Act takes effect September 1, 1993.
   26-3        SECTION 6.  The importance of this legislation and the
   26-4  crowded condition of the calendars in both houses create an
   26-5  emergency and an imperative public necessity that the
   26-6  constitutional rule requiring bills to be read on three several
   26-7  days in each house be suspended, and this rule is hereby suspended.