1-1  By:  Bosse (Senate Sponsor - Brown)                   H.B. No. 2209
    1-2        (In the Senate - Received from the House April 19, 1993;
    1-3  April 19, 1993, read first time and referred to Committee on
    1-4  Natural Resources; May 7, 1993, reported favorably by the following
    1-5  vote:  Yeas 7, Nays 0; May 7, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Sims               x                               
    1-9        Truan              x                               
   1-10        Armbrister         x                               
   1-11        Barrientos                                    x    
   1-12        Bivins                                        x    
   1-13        Brown              x                               
   1-14        Carriker           x                               
   1-15        Lucio              x                               
   1-16        Montford                                      x    
   1-17        Ratliff                                       x    
   1-18        Shelley            x                               
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to the Harris-Galveston Coastal Subsidence District.
   1-22        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-23        SECTION 1.  The Water Code is amended by adding Title 5 to
   1-24  read as follows:
   1-25                    TITLE 5.  SPECIAL LAW DISTRICTS
   1-26      CHAPTER 151.  HARRIS-GALVESTON COASTAL SUBSIDENCE DISTRICT
   1-27                   SUBCHAPTER A.  GENERAL PROVISIONS
   1-28        Sec. 151.001.  CREATION.  (a)  The Harris-Galveston Coastal
   1-29  Subsidence District is an underground water conservation district
   1-30  created under and essential to accomplish the purposes of  Article
   1-31  XVI, Section 59, of the Texas Constitution.
   1-32        (b)  The district is a governmental agency and body politic
   1-33  and corporate.
   1-34        Sec. 151.002.  DEFINITIONS.  In this chapter:
   1-35              (1)  "Board" means the board of directors of the
   1-36  district.
   1-37              (2)  "Commission" means the Texas Natural Resource
   1-38  Conservation Commission.
   1-39              (3)  "District" means the Harris-Galveston Coastal
   1-40  Subsidence District.
   1-41              (4)  "Drill" means drilling, equipping, or completing
   1-42  wells or substantially altering the size of wells or well pumps.
   1-43              (5)  "Groundwater" means water located beneath the
   1-44  earth's surface, but does not include water produced with oil in
   1-45  the production of oil and gas.
   1-46              (6)  "Groundwater-withdrawal year" means the period
   1-47  beginning January 1 of one year and ending December 31 of that same
   1-48  year.
   1-49              (7)  "Subsidence" means the lowering in elevation of
   1-50  the surface of land by the withdrawal of groundwater.
   1-51              (8)  "Water conservation" means any measure that seeks
   1-52  to make a water supply available for alternative or future uses,
   1-53  including best management practices, reduction in consumption,
   1-54  reduction in loss or waste, improved efficiency or accountability,
   1-55  recycling, reuse, or pollution prevention.
   1-56              (9)  "Well" means a facility, device, or method used to
   1-57  withdraw groundwater from the groundwater supply within the
   1-58  district.
   1-59              (10)  "Well owner" means a person who has an ownership
   1-60  interest in a well, owns land on which a well is located, owns the
   1-61  water withdrawn or to be withdrawn from a well, or operates a well.
   1-62              (11)  "Withdraw" means the act of extracting
   1-63  groundwater by pumping or some other method.
   1-64        Sec. 151.003.  BOUNDARIES.  (a)  The district includes all of
   1-65  the area located within the boundaries of Harris County and
   1-66  Galveston County.
   1-67        (b)  Except as provided in this subsection, an adjoining
   1-68  county may be added to the district on application of the
    2-1  commissioners court of the adjoining county and by complying with
    2-2  the procedures provided in Sections 55.730-55.744 of this code, to
    2-3  the extent that those provisions are applicable.  Any county added
    2-4  to the district under this subsection is subject to the
    2-5  jurisdiction of the board and this chapter, and two members shall
    2-6  be added to the board.  One shall be chosen by the commissioners
    2-7  court of the county added to the district and one shall be chosen
    2-8  by the mayor of the city that has the largest population in the
    2-9  county that is added.  The two new members shall draw lots to
   2-10  establish staggered terms of office.
   2-11        Sec. 151.004.  PURPOSE AND INTENT; FINDING OF BENEFIT.
   2-12  (a)  The purpose of this chapter is to provide for the regulation
   2-13  of the withdrawal of groundwater within the boundaries of the
   2-14  district for the purpose of ending subsidence, which contributes to
   2-15  or precipitates flooding, inundation, or overflow of the district,
   2-16  including without limitation rising waters resulting from storms or
   2-17  hurricanes.
   2-18        (b)  The legislature intends that the district shall
   2-19  administer and enforce this chapter and shall exercise the
   2-20  district's rights, powers, and duties in a manner that will
   2-21  effectively and expeditiously accomplish the purposes of this
   2-22  chapter.
   2-23        (c)  All of the land and other property included within the
   2-24  boundaries of the district will be benefited by the works and
   2-25  projects that are to be accomplished by the district under powers
   2-26  conferred by Article XVI, Section 59, of the Texas Constitution.
   2-27  The district is created to serve a public use and benefit.
   2-28        Sec. 151.005.  POWERS AND DUTIES IN GENERAL.  (a)  The
   2-29  district has all of the rights, powers, privileges, authority,
   2-30  functions, and duties provided by the general law of this state,
   2-31  including Chapters 50 and 52 of this code, applicable to
   2-32  underground water conservation districts created under Article XVI,
   2-33  Section 59, of the Texas Constitution.
   2-34        (b)  Withdrawals of groundwater covered by this chapter are
   2-35  subject to reasonable rules and orders adopted by the board, taking
   2-36  into account all factors including availability of surface water,
   2-37  economic impact on persons and the community, degree and effect of
   2-38  subsidence on the surface of land, and differing topographical and
   2-39  geophysical characteristics of land areas in the district.  The
   2-40  board has the powers and duties specifically described in this
   2-41  chapter and all other powers necessary or convenient to carry out
   2-42  its responsibilities and achieve the purpose of this chapter.
   2-43        (c)  Sections 52.1511, 52.156, 52.167, 52.168, 52.170, and
   2-44  52.173 of this code and Subchapters B, C, H, I, J, and K of Chapter
   2-45  52 of this code do not apply to the district.
   2-46        (d)  The district may not sell or distribute surface water or
   2-47  groundwater for any purpose.
   2-48        (e)  This chapter prevails over any other law in conflict or
   2-49  inconsistent with this chapter.
   2-50           (Sections 151.006-151.030 reserved for expansion
   2-51               SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
   2-52        Sec. 151.031.  BOARD OF DIRECTORS.  (a)  The district is
   2-53  governed by a board of directors composed of 17 members who serve
   2-54  for two-year, staggered terms.
   2-55        (b)  The board consists of:
   2-56              (1)  six members from the city in the district having
   2-57  the largest population of any city in the district, to be appointed
   2-58  by the mayor of that city, one of these members to be a
   2-59  representative of industry;
   2-60              (2)  one member from the city in the district having
   2-61  the next largest population of any city in the district, to be
   2-62  appointed by the mayor of that city;
   2-63              (3)  two members from all incorporated cities in
   2-64  Galveston County, appointed by the mayors of those cities;
   2-65              (4)  one member from the city of Baytown, appointed by
   2-66  the mayor of that city;
   2-67              (5)  two members appointed by the commissioners court
   2-68  of Harris County, one to be a representative of agriculture and one
   2-69  to be a representative of industry, provided that neither of these
   2-70  members is a resident of the city in the district having the
    3-1  largest population;
    3-2              (6)  two members appointed by the commissioners court
    3-3  of Galveston County;
    3-4              (7)  one member from Harris County chosen by the mayors
    3-5  of the cities of Deer Park, Galena Park, La Porte, Nassau Bay, and
    3-6  Seabrook and the president of the Clear Lake City Water Authority;
    3-7              (8)  one member from Harris County chosen by the mayors
    3-8  of the cities of West University Place, Southside Place, Bellaire,
    3-9  and Jacinto City; and
   3-10              (9)  one member from Harris County chosen by the mayors
   3-11  of the cities of Humble, Piney Point Village, Hedwig Village,
   3-12  Bunker Hill Village, Hunters Creek Village, Hilshire Village, and
   3-13  the village of Spring Valley.
   3-14        (c)  A member of the board must be a resident of and a
   3-15  qualified voter in the district.
   3-16        Sec. 151.032.  OFFICERS.  (a)  Each year at the first meeting
   3-17  after the new directors take office, the members shall select one
   3-18  of their number to serve as chairman, one to serve as
   3-19  vice-chairman, and one to serve as secretary.
   3-20        (b)  The chairman shall preside over meetings of the board,
   3-21  and in the chairman's absence the vice-chairman shall preside.
   3-22        Sec. 151.033.  VACANCIES.  If a vacancy occurs on the board,
   3-23  a person representing the same area from which the person who
   3-24  vacates the position is appointed shall be chosen by the person or
   3-25  persons designated in Section 151.031(b) to serve the unexpired
   3-26  term.
   3-27        Sec. 151.034.  MEETINGS.  The board shall meet for a regular
   3-28  meeting once each month at a time set by the board and may hold
   3-29  special meetings at the call of the chairman or on the written
   3-30  request of at least three members of the board.
   3-31        Sec. 151.035.  GENERAL MANAGER.  (a)  The board shall employ
   3-32  a general manager as the chief administrative officer of the
   3-33  district.  The board may delegate to the general manager full
   3-34  authority to manage and operate the affairs of the district subject
   3-35  only to orders of the board.
   3-36        (b)  The duties of the general manager include:
   3-37              (1)  administering the orders of the board;
   3-38              (2)  coordination with state, federal, and local
   3-39  agencies;
   3-40              (3)  overseeing development of district plans and
   3-41  programs; and
   3-42              (4)  other duties assigned by the board.
   3-43        (c)  The board shall determine the terms of office and
   3-44  employment and the compensation to be paid the general manager, and
   3-45  the general manager may be discharged by a majority vote of the
   3-46  board.
   3-47        Sec. 151.036.  EMPLOYEES; BOND.  (a)  The general manager
   3-48  shall employ all persons necessary for the proper handling of the
   3-49  business and operation of the district and may employ attorneys,
   3-50  bookkeepers, engineers, and other expert and specialized personnel
   3-51  considered necessary.  The general manager shall determine
   3-52  compensation to be paid by the district.
   3-53        (b)  The general manager may discharge employees of the
   3-54  district.
   3-55        (c)  The board shall require an employee who collects, pays,
   3-56  or handles funds of the district to furnish good and sufficient
   3-57  bond, payable to the district, for a sufficient amount to safeguard
   3-58  the district.  The bond shall be conditioned on the faithful
   3-59  performance of the employee's duties and on accounting for all
   3-60  funds and property of the district in the employee's hands.  The
   3-61  district shall pay for the bond.
   3-62        Sec. 151.037.  SUITS.  (a)  The district may sue and be sued
   3-63  in the courts of this state in the name of the district by and
   3-64  through the board.
   3-65        (b)  The attorney general shall defend the district in suits
   3-66  brought against the district in all district and appellate courts
   3-67  of this state and in the courts of the United States.
   3-68        (c)  All courts shall take judicial notice of the creation of
   3-69  the district and of its boundaries.
   3-70        Sec. 151.038.  ACCESS TO PROPERTY.  (a)  To carry out
    4-1  technical and other investigations necessary to the implementation
    4-2  of this chapter, the board and its agents and employees are
    4-3  entitled to access to all property within the district.
    4-4        (b)  Before entering property for the purposes of this
    4-5  section, the person seeking access shall give notice to the owner
    4-6  of the property as provided by district rules and shall present
    4-7  proper credentials.
    4-8        (c)  The board and its agents and employees who enter private
    4-9  property shall observe the establishment's rules concerning safety,
   4-10  internal security, and fire protection.
   4-11           (Sections 151.039-151.070 reserved for expansion
   4-12                   SUBCHAPTER C.  POWERS AND DUTIES
   4-13        Sec. 151.071.  RULES.  (a)  After notice and hearing, the
   4-14  board shall adopt and enforce rules designed to expeditiously and
   4-15  effectively implement this chapter and accomplish its purposes,
   4-16  including rules governing procedure before the board.
   4-17        (b)  The board shall compile its rules in a book and make
   4-18  them available for use and inspection at the district's principal
   4-19  office.
   4-20        Sec. 151.072.  HEARINGS.  (a)  Board hearings shall be
   4-21  conducted as provided by this section.  Hearings are governed by
   4-22  the open meetings law, Chapter 271, Acts of the 60th Legislature,
   4-23  Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil
   4-24  Statutes).  Except as provided by this section, notice of hearings
   4-25  shall be provided according to that law.
   4-26        (b)  At a regular meeting of the board, the board shall set
   4-27  the dates, times, and locations for any hearings to be held under
   4-28  this chapter and shall direct the general manager of the district
   4-29  to give notice.
   4-30        (c)  Written notice of a hearing shall be given to each
   4-31  county and municipal government in the district and to each person
   4-32  that the board believes has an interest in the subject matter to be
   4-33  dealt with at the hearing.
   4-34        (d)  Notice of a hearing shall be published at least once in
   4-35  a newspaper of general circulation in each county in the district.
   4-36        (e)  A copy of the notice shall be posted at the county
   4-37  courthouse of each county in the district in the place where
   4-38  notices are usually posted.
   4-39        (f)  A person who desires to appear at a hearing and present
   4-40  testimony, evidence, exhibits, or other information may do so in
   4-41  person, by counsel, or both.
   4-42        (g)  The board may hold hearings at any location in the
   4-43  district.
   4-44        (h)  The board may recess a hearing from day to day.
   4-45        (i)  The board may use hearing examiners to hear any subject
   4-46  set for the hearing so long as the decision on that subject is the
   4-47  decision of the board.  Procedures for use of hearing examiners
   4-48  shall be provided by rule.
   4-49        Sec. 151.073.  COMPELLING TESTIMONY, SWEARING WITNESSES, AND
   4-50  SUBPOENAS.  (a)  The board may compel the testimony of any person
   4-51  necessary to carry out its powers, duties, and functions under this
   4-52  chapter and may administer oaths to persons compelled to testify
   4-53  before the board or any person designated by the board.
   4-54        (b)  The board may issue subpoenas to compel the testimony of
   4-55  any person and the production of any document necessary to carry
   4-56  out the powers, duties, and functions under this chapter.
   4-57        Sec. 151.074.  DISTRICT PLAN.  (a)  The board shall formulate
   4-58  a plan to control and prevent subsidence in the district.  The plan
   4-59  shall accomplish that purpose by reducing groundwater withdrawals
   4-60  to amounts that will restore and maintain sufficient artesian
   4-61  pressure to control and prevent subsidence.
   4-62        (b)  The plan shall specify in as much detail as practicable
   4-63  the acts, procedures, performance, and avoidance that are necessary
   4-64  to carry out the purposes of this chapter.
   4-65        Sec. 151.075.  PLANNING PROCEDURES.  (a)  Included in the
   4-66  information to be gathered for formulation of the plan shall be:
   4-67              (1)  a list of all wells in the district that are
   4-68  subject to regulation under this chapter;
   4-69              (2)  an accurate estimate of groundwater production
   4-70  from all wells or proposed wells in the district;
    5-1              (3)  an accurate estimate of the amount of groundwater
    5-2  that may be produced from each area in the district without causing
    5-3  reduction of artesian pressure that will lead to subsidence in the
    5-4  district;
    5-5              (4)  an accurate estimate of the current and future
    5-6  water needs in the district;
    5-7              (5)  a list of all available sources of water, other
    5-8  than groundwater, in the area of the district;
    5-9              (6)  the purposes for which the water is currently used
   5-10  and for which it is proposed to be used in the future;
   5-11              (7)  information relating to formulation of a permit
   5-12  system; and
   5-13              (8)  other necessary information and material to carry
   5-14  out the management of groundwater in the district and to
   5-15  effectively and expeditiously accomplish the purposes of this
   5-16  chapter.
   5-17        (b)  Before the plan is adopted, the board shall hold a
   5-18  hearing to consider the proposed plan.
   5-19        (c)  After the hearing, the board shall make any changes it
   5-20  considers necessary according to evidence and material presented at
   5-21  the hearing and shall adopt the plan.
   5-22        (d)  The plan adopted under this section may be amended or
   5-23  repealed and a new plan adopted as provided in this section for the
   5-24  adoption of the original plan.  A plan, once adopted, remains in
   5-25  effect until the adoption of a new plan.
   5-26        Sec. 151.076.  BOARD INVESTIGATIONS.  At least once each year
   5-27  and at any other time that the board considers necessary, the board
   5-28  shall have its staff and the staff of the Texas Water Development
   5-29  Board, if necessary, make a complete study of the groundwater
   5-30  situation in the district and determine the water level, rates of
   5-31  withdrawal, amounts of withdrawal, and other information relating
   5-32  to the withdrawal of groundwater that may effect the subsidence of
   5-33  land in the district.
   5-34        Sec. 151.077.  ANNUAL GROUNDWATER-WITHDRAWAL DETERMINATION.
   5-35  (a)  On or before March 31 of each year, the board shall hold a
   5-36  hearing to determine the effects of groundwater withdrawal during
   5-37  the preceding groundwater-withdrawal year on the subsidence of land
   5-38  within the district.
   5-39        (b)  At the hearing, the board shall consider information
   5-40  developed under Sections 151.127 and 151.076 of this code in
   5-41  addition to information represented by persons appearing before the
   5-42  board.
   5-43        (c)  After the hearing, the board shall consider all
   5-44  information presented to it, shall make determinations of
   5-45  groundwater withdrawal in the district during the immediately
   5-46  preceding groundwater-withdrawal year, and shall make findings of
   5-47  the effects of groundwater withdrawal during that
   5-48  groundwater-withdrawal year on the subsidence of land in the
   5-49  district.  Those findings and determinations shall be included in a
   5-50  report adopted by the board and shall be made available for
   5-51  examination by any interested persons.
   5-52        Sec. 151.078.  REGULATION OF SPACING AND PRODUCTION.  (a)  To
   5-53  minimize as far as practicable the drawdown of the water table and
   5-54  the reduction of artesian pressure and to control and prevent
   5-55  subsidence, the board may provide for the spacing of wells and may
   5-56  regulate the production of groundwater from the wells, taking into
   5-57  consideration, among other relevant factors, the economic impact on
   5-58  well owners and the resulting effect on subsidence.
   5-59        (b)  Before issuing an order or rule under this section, the
   5-60  board shall set a hearing on the proposed order or rule and shall
   5-61  issue notice of the hearing.
   5-62        Sec. 151.079.  WATER CONSERVATION MEASURES.  The board may
   5-63  adopt rules requiring the use of water conservation measures as a
   5-64  means to reduce groundwater withdrawals.  The district may also
   5-65  cooperate with the commission and any local government to establish
   5-66  water conservation goals, guidelines, and plans to be used within
   5-67  the district.  The district may contract with any local government
   5-68  in the district to provide services necessary to meet water
   5-69  conservation requirements established by the commission.
   5-70        Sec. 151.080.  REQUIRING WATER-METERING DEVICES.  The board
    6-1  may require water-metering devices to be placed on wells.
    6-2        Sec. 151.081.  MONITORING AND SUPERVISION BY DISTRICT.  The
    6-3  district may use subsidence compaction monitors, water-level
    6-4  observation wells, and other materials and equipment to determine
    6-5  the amount of groundwater that may be produced while at the same
    6-6  time allowing the rebound and stabilization of groundwater to a
    6-7  level that will halt subsidence.
    6-8        Sec. 151.082.  RESEARCH AND STUDIES.  The district may
    6-9  conduct any studies and research that the board considers necessary
   6-10  to implement this chapter.  The district may use the services of
   6-11  geologists, hydrologists, registered professional engineers, or
   6-12  other expert personnel to accomplish the purposes of this section.
   6-13        Sec. 151.083.  COOPERATION WITH AND ASSISTANCE OF OTHER
   6-14  GOVERNMENTAL ENTITIES; GRANTS.  (a)  The board may cooperate with
   6-15  and request the assistance of local governments and any agency of
   6-16  the state or of the United States in implementing this chapter.
   6-17        (b)  The district may make or accept grants, gratuities,
   6-18  advances, or loans in any form to or from any public source
   6-19  approved by the board, including any governmental entity, and may
   6-20  enter into contracts, agreements, and covenants that the board
   6-21  considers appropriate in connection with grants, gratuities,
   6-22  advances, or loans.
   6-23        Sec. 151.084.  EXCLUSIONS.  (a)  The regulatory provisions of
   6-24  this chapter do not apply to:
   6-25              (1)  wells regulated under Chapter 27 of this code;
   6-26              (2)  other wells as provided in the rules of the
   6-27  district; and
   6-28              (3)  wells with a casing diameter of less than five
   6-29  inches that serve a single-family dwelling.
   6-30        (b)  The board by rule may require the registration of any
   6-31  well in the district.
   6-32           (Sections 151.085-151.120 reserved for expansion
   6-33                        SUBCHAPTER D.  PERMITS
   6-34        Sec. 151.121.  PERMIT REQUIREMENT.  Before a well may be
   6-35  drilled or operated within the boundaries of the district the owner
   6-36  or operator of the well must obtain a permit from the board.
   6-37        Sec. 151.122.  TERM OF PERMIT.  (a)  A permit issued under
   6-38  this chapter may be for a term of up to five years as set by the
   6-39  board.
   6-40        (b)  A permit does not become a vested right in the holder.
   6-41  A permit may be revoked or suspended or its terms may be modified
   6-42  or amended after notice and hearing whenever reasonably necessary
   6-43  to accomplish the purposes of this chapter.
   6-44        Sec. 151.123.  RENEWAL OF PERMIT.  A permit for a well may be
   6-45  renewed by the board in the manner provided for obtaining the
   6-46  original permit.
   6-47        Sec. 151.124.  APPLICATION FOR PERMIT.  (a)  A person who
   6-48  desires to obtain a permit under this chapter shall submit to the
   6-49  board an application.
   6-50        (b)  The application must state:
   6-51              (1)  the name of the person requesting the permit;
   6-52              (2)  the address of the person requesting the permit;
   6-53              (3)  the location and wellhead elevation of the well or
   6-54  proposed well;
   6-55              (4)  the amount of water being produced or proposed to
   6-56  be produced; and
   6-57              (5)  any other information necessary for the board to
   6-58  control and prevent subsidence in the district.
   6-59        (c)  The application shall be accompanied by a reasonable
   6-60  application fee to be used for processing the application, the
   6-61  amount of which shall be set by the board.
   6-62        Sec. 151.125.  NOTICE AND HEARING ON PERMIT.  (a)  On
   6-63  receiving an application for a permit, the board shall issue notice
   6-64  and set a time for a hearing on the application.
   6-65        (b)  Notice of the date, time, and location of the hearing
   6-66  shall be given by the board to the applicant by certified mail,
   6-67  return receipt requested, and in accordance with the open meetings
   6-68  law, Chapter 271, Acts of the 60th Legislature, Regular Session,
   6-69  1967 (Article 6252-17, Vernon's Texas Civil Statutes).
   6-70        (c)  The board may consider as many applications for permits
    7-1  as it thinks necessary at any one hearing.
    7-2        Sec. 151.126.  DECISION AND ISSUANCE OF A PERMIT.
    7-3  (a)  Within a reasonable period after the hearing, but not later
    7-4  than the 60th day after the date of the hearing, the board shall
    7-5  decide whether or not to issue a permit and, if the decision is to
    7-6  issue the permit, shall formulate the terms of the permit.
    7-7        (b)  In deciding whether or not to issue a permit and in
    7-8  setting the terms of the permit, the board shall consider, along
    7-9  with the purpose of this chapter and all other relevant factors:
   7-10              (1)  the district plan;
   7-11              (2)  the quality, quantity, and availability of surface
   7-12  water at prices competitive with those charged by suppliers of
   7-13  surface water in the district;
   7-14              (3)  the economic impact on the applicant from grant or
   7-15  denial of the permit, or the terms prescribed by a permit, in
   7-16  relation to the effect on subsidence that would result; and
   7-17              (4)  the applicant's use of water conservation
   7-18  measures.
   7-19        (c)  The board shall grant a permit to an applicant if the
   7-20  board finds, on presentation of adequate proof, that there is no
   7-21  other adequate and available substitute or supplemental source of
   7-22  surface waters at prices competitive with those charged by
   7-23  suppliers of surface water in the district and that compliance with
   7-24  any provision of this chapter or any district rule will result in
   7-25  an arbitrary taking of property or in the practical closing and
   7-26  elimination of any lawful business, occupation, or activity without
   7-27  sufficient corresponding benefit or advantage to the people.
   7-28        (d)  If the board decides to issue the permit, the permit
   7-29  shall be issued to the applicant stating the terms prescribed by
   7-30  the board.
   7-31        (e)  The permit shall include:
   7-32              (1)  the name and address of the person to whom the
   7-33  permit is issued;
   7-34              (2)  the location of the well;
   7-35              (3)  the date the permit is to expire;
   7-36              (4)  conditions and restrictions placed on the
   7-37  withdrawal of groundwater; and
   7-38              (5)  other terms and conditions necessary to control
   7-39  and prevent subsidence.
   7-40        (f)  The board may not require a city with a population of
   7-41  less than 100,000 to reduce its groundwater withdrawal by more than
   7-42  50 percent in any three-year period if the city or its residents
   7-43  would face a hardship by that reduction.  The board shall determine
   7-44  in public hearing whether or not the reduction would constitute a
   7-45  hardship to the city or its residents.  In this subsection,
   7-46  "hardship" means any reduction in groundwater withdrawal that
   7-47  would:
   7-48              (1)  cause the city to have an inadequate supply of
   7-49  water for its residents; or
   7-50              (2)  cause an increase of 50 percent or more in water
   7-51  rates for the city or its residents.
   7-52        Sec. 151.127.  ANNUAL REPORTS.  Before January 31 of each
   7-53  year, each owner of a well who holds a permit under this chapter
   7-54  shall submit to the board a report stating:
   7-55              (1)  the name of the owner of the well;
   7-56              (2)  the total amount of groundwater produced by the
   7-57  well during the immediately preceding 12-month period;
   7-58              (3)  the total amount of groundwater produced by the
   7-59  well during each separate month of the immediately preceding
   7-60  12-month period;
   7-61              (4)  the purpose for which the groundwater was used;
   7-62  and
   7-63              (5)  any other information considered necessary by the
   7-64  board.
   7-65        Sec. 151.128.  PERMIT FEE.  (a)  At the time of issuance or
   7-66  renewal of a permit, the board shall collect from the applicant a
   7-67  permit fee, established by a schedule based on the term of the
   7-68  permit and the maximum annual amount of groundwater authorized by
   7-69  the board to be withdrawn from the well.
   7-70        (b)  The rate of the fee to be collected by the board under
    8-1  this section shall be determined by the board after a hearing.  The
    8-2  rate of the fee may not exceed 110 percent of the highest rate
    8-3  charged by the city of Houston for surface water supplied to its
    8-4  customers in the district.
    8-5        (c)  The rate of the permit fee applicable to any well used
    8-6  for the irrigation of agricultural crops shall be the lowest of:
    8-7              (1)  70 percent of the lowest rate established under
    8-8  Subsection (b) of this section;
    8-9              (2)  70 percent of one cent for each thousand gallons
   8-10  authorized to be withdrawn, provided that the board may adjust the
   8-11  one cent for each thousand gallons each year after 1992 to account
   8-12  for increases, if any, in the most recently published Consumer
   8-13  Price Index for All Urban Consumers (Houston, Texas, Average), as
   8-14  determined by the United States Department of Labor, Bureau of
   8-15  Labor Statistics, for All Items; or
   8-16              (3)  the rate established in accordance with Subsection
   8-17  (d) of this section.
   8-18        (d)  Using information prepared by the United States
   8-19  Geological Survey, which shall be presumed correct, the board, at a
   8-20  hearing held in accordance with Section 151.072 of this code, shall
   8-21  calculate and determine the difference between water wells pumped
   8-22  for irrigation of agricultural crops and water wells pumped for
   8-23  other purposes in terms of their relative contribution to
   8-24  subsidence, expressed as a percentage.  The rate of the fee for
   8-25  wells used for irrigation of agricultural crops shall be sufficient
   8-26  for the total of those fees to contribute to the fee revenue of the
   8-27  district the same percentage as the agricultural use contributes to
   8-28  subsidence.
   8-29        (e)  The funds obtained from the permit fees collected under
   8-30  this section shall be used to cover the costs of the board in
   8-31  issuing permits and performing other regulatory functions of the
   8-32  district.
   8-33        Sec. 151.129.  LIMITATIONS ON CONVERSION TO SURFACE WATER.
   8-34  (a)  The board may not issue an order requiring a person to
   8-35  completely or partially discontinue the use of groundwater unless
   8-36  the person is able to acquire a water supply that is composed of
   8-37  surface water needed to replace the water supply covered by the
   8-38  order.  This section does not limit the board's authority to issue
   8-39  orders and rules requiring a person to reduce groundwater use by
   8-40  eliminating waste or implementing water conservation.
   8-41        (b)  If the person covered by an order under this section
   8-42  acquires an alternative water supply to fulfill the needs created
   8-43  by the board's order under this section and files with the
   8-44  commission a written request for monitoring of the alternative
   8-45  supply, the commission shall monitor annually from the date of
   8-46  request to the expiration of the annual permit the water delivered
   8-47  to the person covered by the order to determine the percentage of
   8-48  that water that is surface water and the percentage of that water
   8-49  that is groundwater.
   8-50        (c)  The water deliveries must be monitored at random times
   8-51  at all points of connection between the purchaser's and seller's
   8-52  water systems.  Samples taken through monitoring must be analyzed
   8-53  by water chemists employed by or contracting with the commission.
   8-54  The water chemist making each analysis shall issue a certified
   8-55  written analysis of the percentages of surface water and
   8-56  groundwater included in the sample.
   8-57        (d)  Not later than the 15th day after the last day of each
   8-58  permit year, the commission shall issue an annual certified written
   8-59  analysis based on all of the samples collected that will state the
   8-60  annual average percentage of surface water and the annual average
   8-61  percentage of groundwater provided to the purchaser by the seller
   8-62  for that permit year.  In addition to the percentage of groundwater
   8-63  authorized to be used by the board's order, the person may use in
   8-64  the current permit year an additional percentage of groundwater
   8-65  that is equal to a percentage derived by multiplying the annual
   8-66  average percentage of groundwater delivered to that person during
   8-67  the preceding permit year by the total percentage of alternative
   8-68  water supply mandated by the board's order for the current year.
   8-69        (e)  The commission shall assess reasonable fees to cover the
   8-70  costs of the water sampling and analysis, one-half to the water
    9-1  purchaser and one-half to the water seller.  On request, the
    9-2  commission shall make results of the analysis available to the
    9-3  purchaser, the seller, or the board.
    9-4        (f)  In this section, "alternative water supply" means a
    9-5  water supply that it is necessary for the person to acquire from
    9-6  sources other than the person's own groundwater supply to comply
    9-7  with the board's order.
    9-8           (Sections 151.130-151.160 reserved for expansion
    9-9                   SUBCHAPTER E.  APPEALS; PENALTIES
   9-10        Sec. 151.161.  APPEAL OF SURFACE WATER RATES.  If a person
   9-11  required to convert to surface water purchases that water supply
   9-12  wholesale from a political subdivision as defined by Section
   9-13  12.013(b) of this code, the rates charged by the political
   9-14  subdivision to that person may be appealed to the commission under
   9-15  Chapter 12 of this code, and the rules adopted under that chapter
   9-16  apply to appeals under this section.  The commission shall convene
   9-17  the hearing on the appeal not later than the 180th day after the
   9-18  date on which the appeal is filed with the commission and shall
   9-19  render a final decision on the appeal not later than the 60th day
   9-20  following the date on which the hearing ends.
   9-21        Sec. 151.162.  APPEAL OF DISTRICT ACTIONS.  (a)  A rule,
   9-22  order, or other official action of the district under this chapter
   9-23  may be appealed to a district court in any county in the district
   9-24  by a person who is adversely affected.  An appeal under this
   9-25  section must be filed within 45 days after the rule, order, or
   9-26  other official action appealed from is adopted or taken.
   9-27        (b)  On written request of a person residing in or owning
   9-28  real property in the district, the board shall make written
   9-29  findings and conclusions with respect to a rule, order, or other
   9-30  official action of the district and provide certified copies of
   9-31  those findings and conclusions to the requesting person not later
   9-32  than the 35th day after the date on which the board received the
   9-33  written request.
   9-34        (c)  The review on appeal under this section is governed by
   9-35  the substantial evidence rule as defined by Section 19(e),
   9-36  Administrative Procedure and Texas Register Act (Article 6252-13a,
   9-37  Vernon's Texas Civil Statutes).
   9-38        (d)  For purposes of this section, "a person who is adversely
   9-39  affected" includes a person residing in or owning real property in
   9-40  the district whose residence or real property is subsiding.
   9-41        Sec. 151.163.  APPEAL OF CERTAIN DISTRICT ACTIONS TO THE
   9-42  COMMISSION.  (a)  As an alternative to the appeal provided in
   9-43  Section 151.162 of this code, a person who is granted a permit
   9-44  authorizing withdrawal of groundwater in an amount less than
   9-45  requested by that person may appeal the board's final decision to
   9-46  the commission.  The appeal shall be filed not later than the 60th
   9-47  day after the date on which the board issues its final order.  A
   9-48  person shall be informed in the notice of public hearing when an
   9-49  order to convert to surface water is to be considered.
   9-50        (b)  On written request of the person proposing to appeal an
   9-51  order under this section, the board shall make written findings and
   9-52  conclusions with respect to the order and shall provide certified
   9-53  copies of the findings and conclusions to the requesting person not
   9-54  later than the 35th day after the date on which the board received
   9-55  the written request.
   9-56        (c)  The effect of a board order is stayed until the decision
   9-57  of the commission in an appeal under this section is final.
   9-58        (d)  The review on appeal by the commission under this
   9-59  section is governed by the substantial evidence rule as defined by
   9-60  Section 19(e), Administrative Procedure and Texas Register Act
   9-61  (Article 6252-13a, Vernon's Texas Civil Statutes).
   9-62        (e)  The commission may adopt necessary rules to carry out
   9-63  this section.
   9-64        (f)  An appeal from a final decision of the commission is to
   9-65  a district court in Travis County.  Any party to the proceedings
   9-66  before the commission may appeal a decision of the district court
   9-67  in the manner provided for other civil actions, but a party
   9-68  appealing a decision of a district court is not required to provide
   9-69  an appeal bond.
   9-70        (g)  The review of a commission order on appeal shall be
   10-1  under the substantial evidence rule.
   10-2        (h)  Under this section, the commission may adopt and assess
   10-3  reasonable and necessary fees adequate to recover the costs of the
   10-4  commission in administering this section.
   10-5        Sec. 151.164.  PENALTIES.  (a)  If it appears that a person
   10-6  has violated or is violating or threatening to violate this
   10-7  chapter, or any rule, permit, or other order of the district issued
   10-8  or adopted under this chapter, the district may file a civil suit
   10-9  in a district court in the district for:
  10-10              (1)  injunctive relief to restrain the person from
  10-11  continuing the violation or threat of violation;
  10-12              (2)  the assessment and recovery of a civil penalty of
  10-13  not less than $50 nor more than $5,000 for each violation and for
  10-14  each day of violation; or
  10-15              (3)  both injunctive relief and civil penalties.
  10-16        (b)  On application for injunctive relief and a finding that
  10-17  a person is violating or threatening to violate a provision of this
  10-18  chapter or a rule, permit, or other order of the district under
  10-19  this chapter, the district court shall grant any injunctive relief
  10-20  the facts may warrant.
  10-21        (c)  At the request of the board, or the general manager if
  10-22  authorized by the board, the attorney general shall institute and
  10-23  conduct a suit in the name of the district for injunctive relief or
  10-24  to recover a civil penalty or for both injunctive relief and
  10-25  penalty as authorized by this section.
  10-26        (d)  The district is not required to post bond or other
  10-27  security with the court.
  10-28        SECTION 2.  The following acts are repealed:
  10-29              (1)  Chapter 284, Acts of the 64th Legislature, Regular
  10-30  Session, 1975;
  10-31              (2)  Chapter 557, Acts of the 65th Legislature, Regular
  10-32  Session, 1977; and
  10-33              (3)  Chapter 1107, Acts of the 70th Legislature,
  10-34  Regular Session, 1987.
  10-35        SECTION 3.  (a)  If an Act amending and consolidating the
  10-36  laws relating to conservation and reclamation districts is passed
  10-37  by the 73rd Legislature, Regular Session, 1993, and finally becomes
  10-38  law:
  10-39              (1)  a reference in Section 151.003(b), Water Code, as
  10-40  added by this Act, to Sections 55.730-55.744, Water Code, is a
  10-41  reference to Subchapter I, Chapter 49, Water Code; and
  10-42              (2)  a reference in Section 151.005(a), Water Code, as
  10-43  added by this Act, to Chapter 50, Water Code, is a reference to
  10-44  Chapter 49, Water Code.
  10-45        (b)  If an Act described by Subsection (a) of this section
  10-46  does not become law, this section has no effect.
  10-47        SECTION 4.  The powers, duties, rights, and obligations of
  10-48  the Texas Natural Resource Conservation Commission under this Act
  10-49  are the powers, duties, rights, and obligations of the Texas Water
  10-50  Commission or its successor if:
  10-51              (1)  the change in name of the Texas Water Commission
  10-52  to the Texas Natural Resource Conservation Commission does not take
  10-53  effect as provided by Section 1.085, Chapter 3, Acts of the 72nd
  10-54  Legislature, 1st Called Session, 1991;
  10-55              (2)  the transfer of the powers, duties, rights, and
  10-56  obligations of the Texas Water Commission to the Texas Natural
  10-57  Resource Conservation Commission does not take effect as provided
  10-58  by Chapter 3, Acts of the 72nd Legislature, 1st Called Session,
  10-59  1991; or
  10-60              (3)  the 73rd Legislature does not pass an Act that
  10-61  becomes law and provides for the transfer of certain powers,
  10-62  duties, rights, and obligations of the Texas Water Commission to
  10-63  the Texas Natural Resource Conservation Commission on or before
  10-64  September 1, 1993.
  10-65        SECTION 5.  This Act takes effect September 1, 1993.
  10-66        SECTION 6.  The importance of this legislation and the
  10-67  crowded condition of the calendars in both houses create an
  10-68  emergency and an imperative public necessity that the
  10-69  constitutional rule requiring bills to be read on three several
  10-70  days in each house be suspended, and this rule is hereby suspended.
   11-1                               * * * * *
   11-2                                                         Austin,
   11-3  Texas
   11-4                                                         May 7, 1993
   11-5  Hon. Bob Bullock
   11-6  President of the Senate
   11-7  Sir:
   11-8  We, your Committee on Natural Resources to which was referred H.B.
   11-9  No. 2209, have had the same under consideration, and I am
  11-10  instructed to report it back to the Senate with the recommendation
  11-11  that it do pass and be printed.
  11-12                                                         Sims,
  11-13  Chairman
  11-14                               * * * * *
  11-15                               WITNESSES
  11-16                                                  FOR   AGAINST  ON
  11-17                                                  FOR   AGAINST  ON
  11-18  ___________________________________________________________________
  11-19  ___________________________________________________________________
  11-20  Name:  Greg Ellis                                x
  11-21  Representing:  Harris-Galveston Coastal Subsi
  11-22  City:  Friendswood
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