By Counts                                             H.B. No. 2646
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the powers, duties and jurisdiction of the Texas Water
    1-3  Development Board and the Texas Water Commission or its successor
    1-4  agency and transferring certain responsibilities to the Texas Water
    1-5  Development Board.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7        SECTION 1.  Section 5.119, Water Code, is amended to read as
    1-8  follows:
    1-9        Sec. 5.119.  Commission to be Knowledgeable.  The commission
   1-10  shall be knowledgeable of the watercourses and natural resources of
   1-11  the state and of the needs of the state concerning <the use,
   1-12  storage and conservation of water and> the use and conservation of
   1-13  other natural resources and of the need to maintain the quality of
   1-14  the environment in the state.
   1-15        SECTION 2.  Section 5.235, Water Code, is amended to read as
   1-16  follows:
   1-17        Sec. 5.235.  Fees.  (a)  The executive director shall charge
   1-18  and collect the fees prescribed by this section.  The executive
   1-19  director shall make a record of fees prescribed when due and shall
   1-20  render an account to the person charged with the fees.  Each fee is
   1-21  a separate charge and is in addition to other fees unless provided
   1-22  otherwise.
   1-23        (b)  Except as specifically provided by this section, the fee
    2-1  for filing an application or petition is $100 plus the cost of any
    2-2  required notice.  The fee for a by-pass permit shall be set by the
    2-3  commission at a reasonable amount to recover costs, but not less
    2-4  than $100.
    2-5        <(c)  The fee for filing a water permit application is $100
    2-6  plus the cost of required notice.>
    2-7        <(d)  The fee for filing an application for fixing or
    2-8  adjusting rates is $100 plus the cost of required notice.>
    2-9        <(e)  A person who files with the commission a petition for
   2-10  the creation of a water district or addition of sewage and drainage
   2-11  powers or a resolution for a water district conversion must pay a
   2-12  one-time nonrefundable application fee.  The commission by rule may
   2-13  set the application fee in an amount not to exceed $700, plus the
   2-14  cost of required notice.  This fee is the only fee that the
   2-15  commission may charge with regard to the processing of an
   2-16  application for creation of a water district, addition of sewage or
   2-17  drainage powers, or conversion under this code.>
   2-18        <(f)  A person who files a bond issue application with the
   2-19  commission must pay an application fee set by the commission.  The
   2-20  commission by rule may set the application fee in an amount not to
   2-21  exceed $500, plus the cost of required notice.  If the bonds are
   2-22  approved by the commission, the seller shall pay to the commission
   2-23  a percentage of the bond proceeds not later than the seventh
   2-24  business day after receipt of the bond proceeds.  The commission by
   2-25  rule may set the percentage of the proceeds in an amount not to
    3-1  exceed 0.25 percent of the principal amount of the bonds actually
    3-2  issued.  Revenue from these fees shall be deposited in the state
    3-3  treasury and credited to the water quality fund.  Proceeds of the
    3-4  fees shall be used to supplement any other funds available for
    3-5  paying expenses of the commission in supervising the various bond
    3-6  and construction activities of the districts filing the
    3-7  applications.>
    3-8        <(g)>(c)  The fee for recording an instrument in the office
    3-9  of the commission is $1.25 per page.
   3-10        <(h)  The fee for the use of water for irrigation is 50 cents
   3-11  per acre to be irrigated.>
   3-12        <(i)  The fee for impounding water, except under Section
   3-13  11.142 of this code, is 50 cents per acre-foot of storage, based on
   3-14  the total holding capacity of the reservoir at normal operating
   3-15  level.>
   3-16        <(j)  The fee for other uses of water not specifically named
   3-17  in this section is $1 per acre-foot, except that no political
   3-18  subdivision may be required to pay fees to use water for recharge
   3-19  of underground freshwater-bearing sands and aquifers or for
   3-20  abatement of natural pollution.>
   3-21        <(k)  A fee charged under this section for one use of water
   3-22  under a permit from the commission may not exceed $25,000.  The fee
   3-23  for each additional use of water under a permit for which the
   3-24  maximum fee is paid may not exceed $5,000.>
   3-25        <(l)  The fees prescribed by Subsections (h) through (j) of
    4-1  this section are one-time fees, payable when the application for an
    4-2  appropriation is made.  However, if the total fee for a permit
    4-3  exceeds $1,000, the applicant shall pay one-tenth of the fee when
    4-4  the application is filed, one-tenth within 30 days after notice is
    4-5  mailed to him that the permit is granted, and the balance before he
    4-6  begins to use water under the permit.  If the applicant does not
    4-7  pay all of the amount owed before beginning to use water under the
    4-8  permit, the permit is annulled.>
    4-9        <(m)  If a permit is annulled, the matter reverts to the
   4-10  status of a pending, filed application and, on the payment of use
   4-11  fees as provided by this subsection together with sufficient
   4-12  postage fees for mailing notice of hearing, the commission shall
   4-13  set the application for hearing and proceed as provided by this
   4-14  code.>
   4-15        <(n)      (1)  Each provider of potable water or sewer utility
   4-16  service shall collect a regulatory assessment from each retail
   4-17  customer as follows:>
   4-18                    <(A)  A public utility as defined in Section
   4-19  13.002 of this code shall collect from each retail customer a
   4-20  regulatory assessment equal to one percent of the charge for retail
   4-21  water or sewer service.>
   4-22                    <(B)  A water supply or sewer service corporation
   4-23  as defined in Section 13.002 of this code shall collect from each
   4-24  retail customer a regulatory assessment equal to one-half of one
   4-25  percent of the charge for retail water or sewer service.>
    5-1                    <(C)  A district as defined in Section 50.001 of
    5-2  this code that provides potable water or sewer utility service to
    5-3  retail customers shall collect from each retail customer a
    5-4  regulatory assessment equal to one-half of one percent of the
    5-5  charge for retail water or sewer service.>
    5-6              <(2)  The regulatory assessment may be listed on the
    5-7  customer's bill as a separate item and shall be collected in
    5-8  addition to other charges for utility services.>
    5-9              <(3)  The commission shall use the assessments collected
   5-10  from districts solely to pay costs and expenses incurred by the
   5-11  board in the regulation of districts.>
   5-12              <(4)  The commission shall use the assessments collected
   5-13  from water supply or sewer service corporations solely to pay costs
   5-14  and expenses incurred by the commission in the regulation of water
   5-15  supply or sewer service corporations.>
   5-16              <(5)  The commission shall use the assessments collected
   5-17  from public utilities solely to pay costs and expenses incurred by
   5-18  the board in the regulation of public utilities.>
   5-19              <(6)  The commission shall annually use a portion of the
   5-20  assessments to provide on-site-technical assistance and training to
   5-21  public utilities, water supply or sewer service corporations, and
   5-22  districts.  The commission shall contract with others to provide
   5-23  the services.>
   5-24              <(7)  Except as provided by Paragraph (A) of this
   5-25  subdivision, assessments collected from retail customers for the
    6-1  prior 12 months are due on January 15 of each year.  The executive
    6-2  director shall collect all assessments from the utility service
    6-3  providers, and those funds shall be paid into the state treasury
    6-4  and credited to the water utility fund.>
    6-5                    <(A)  A utility service provider may make
    6-6  quarterly payments due on January 15, April 15, July 15, and
    6-7  October 15 of each year.  If payments are made quarterly and
    6-8  received by the commission not later than the 30th day after the
    6-9  due date, the utility service provider may retain an administrative
   6-10  fee equal to 10 percent of the amount due for costs incurred in
   6-11  collecting and remitting the assessment.>
   6-12                    <(B)  The commission shall assess on a utility
   6-13  service provider a penalty equal to 10 percent of the amount due
   6-14  for any payment received after January 31.  Funds delinquent for
   6-15  more than 30 days shall draw interest at the rate of 10 percent a
   6-16  year on the assessment and penalty due.>
   6-17                    <(C)  The commission shall assess a penalty
   6-18  against a municipality with a population of more than 1.5 million
   6-19  that does not provide municipal water and sewer services in an
   6-20  annexed area on or before 4-1/2 years after the annexation takes
   6-21  effect in accordance with Section 43.056, Local Government Code.  A
   6-22  penalty assessed under this paragraph shall be not more than $1,000
   6-23  for each day the services are not provided after 4-1/2 years after
   6-24  the annexation.  A penalty collected under this paragraph shall be
   6-25  deposited into a special fund in the state treasury to be used to
    7-1  provide water and sewer service to residents of the city.>
    7-2              <(8)  The regulatory assessment does not apply to water
    7-3  that has not been treated for the purpose of human consumption.>
    7-4        SECTION 3.  Amend Section 6.012 of the Water Code to read as
    7-5  follows:
    7-6        Sec. 6.012.  General Duties and Responsibilities.  (a)  The
    7-7  board has general jurisdiction over:
    7-8              (1)  use of state water;
    7-9              (2) <(1)>  the development of a statewide water plan;
   7-10              (3) <(2)>  the administration of the state's various
   7-11  water assistance and financing programs including those created by
   7-12  the constitution; and
   7-13              (4) <(3)>  other areas specifically assigned to the
   7-14  board by this code or other law.
   7-15        SECTION 4.  Chapter 6, Water Code, is amended by adding
   7-16  Section 6.196.
   7-17        Sec. 6.196.  FEES.  (a)  The executive administrator shall
   7-18  charge and collect the fees prescribed by this section.  The
   7-19  executive administrator shall make a record of fees prescribed when
   7-20  due and shall render an account to the person charged with the
   7-21  fees.  Each fee is a separate charge and is in addition to other
   7-22  fees unless provided otherwise.
   7-23        (b)  The fee for filing a water permit application is $100
   7-24  plus the cost of required notice.
   7-25        (c)  The fee for filing an application for fixing or
    8-1  adjusting rates is $100 plus the cost of required notice.
    8-2        (d)  A person who files with the board a petition for the
    8-3  creation of a water district or addition of sewage and drainage
    8-4  powers or a resolution for a water district conversion must pay a
    8-5  one-time nonrefundable application fee.  The board by rule may set
    8-6  the application fee in an amount not to exceed $700, plus the cost
    8-7  of required notice.  This fee is the only fee that the board may
    8-8  charge with regard to the processing of an application for creation
    8-9  of a water district, addition of sewage or drainage powers, or
   8-10  conversion under this code.
   8-11        (e)  A person who files a bond issue application with the
   8-12  board must pay an application fee set by the board.  The board by
   8-13  rule may set the application fee in an amount not to exceed $500,
   8-14  plus the cost of required notice.  If the bonds are approved by the
   8-15  board, the seller shall pay to the board a percentage of the bond
   8-16  proceeds not later than the seventh business day after receipt of
   8-17  the bond proceeds.  The board by rule may set the percentage of the
   8-18  proceeds in an amount not to exceed 0.25 percent of the principal
   8-19  amount of the bonds actually issued.  Revenue from these fees shall
   8-20  be deposited in the state treasury and credited to the water
   8-21  quality fund.  Proceeds of the fees shall be used to supplement any
   8-22  other funds available for paying expenses of the board in
   8-23  supervising the various bond and construction activities of the
   8-24  districts filing the applications.
   8-25        (f)  The fee for recording an instrument in the office of the
    9-1  board is $1.25 per page.
    9-2        (g)  The fee for the use of water for irrigation is 50 cents
    9-3  per acre to be irrigated.
    9-4        (h)  The fee for impounding water, except under Section
    9-5  11.142 of this code, is 50 cents per acre-foot of storage, based on
    9-6  the total holding capacity of the reservoir at normal operating
    9-7  level.
    9-8        (i)  The fee for other uses of water not specifically named
    9-9  in this section is $1 per acre-foot, except that no political
   9-10  subdivision may be required to pay fees to use water for recharge
   9-11  of underground freshwater-bearing sands and aquifers or for
   9-12  abatement of natural pollution.
   9-13        (j)  A fee charged under this section for one use of water
   9-14  under a permit from the board may not exceed $25,000.  The fee for
   9-15  each additional use of water under a permit for which the maximum
   9-16  fee is paid may not exceed $5,000.
   9-17        (k)  The fees prescribed by Subsections (g) through (i) of
   9-18  this section are one-time fees, payable when the application for an
   9-19  appropriation is made.  However, if the total fee for a permit
   9-20  exceeds $1,000, the applicant shall pay one-tenth of the fee when
   9-21  the application is filed, one-tenth within 30 days after notice is
   9-22  mailed to him that the permit is granted, and the balance before he
   9-23  begins to use water under the permit.  If the applicant does not
   9-24  pay all of the amount owed before beginning to use water under the
   9-25  permit, the permit is annulled.
   10-1        (l)  If a permit is annulled, the matter reverts to the
   10-2  status of a pending, filed application and, on the payment of use
   10-3  fees as provided by this subsection together with sufficient
   10-4  postage fees for mailing notice of hearing, the board shall set the
   10-5  application for hearing and proceed as provided by this code.
   10-6        (m)    (1)  Each provider of potable water or sewer utility
   10-7  service shall collect a regulatory assessment from each retail
   10-8  customer as follows:
   10-9                    (A)  A public utility as defined in Section
  10-10  13.002 of this code shall collect from each retail customer a
  10-11  regulatory assessment equal to one percent of the charge for retail
  10-12  water or sewer service.
  10-13                    (B)  A water supply or sewer service corporation
  10-14  as defined in Section 13.002 of this code shall collect from each
  10-15  retail customer a regulatory assessment equal to one-half of one
  10-16  percent of the charge for retail water or sewer service.
  10-17                    (C)  A district as defined in Section 50.001 of
  10-18  this code that provides potable water or sewer utility service to
  10-19  retail customers shall collect from each retail customer a
  10-20  regulatory assessment equal to one-half of one percent of the
  10-21  charge for retail water or sewer service.
  10-22              (2)  The regulary assessment may be listed on the
  10-23  customer's bill as a separate item and shall be collected in
  10-24  addition to other charges for utility services.
  10-25              (3)  The board shall use the assessments collected from
   11-1  districts solely to pay costs and expenses incurred by the board in
   11-2  the regulation of districts.
   11-3              (4)  The board shall use the assessments collected from
   11-4  water supply or sewer service corporations solely to pay costs and
   11-5  expenses incurred by the commission in the regulation of water
   11-6  supply or sewer service corporations.
   11-7              (5)  The board shall use the assessments collected from
   11-8  public utilities solely to pay costs and expenses incurred by the
   11-9  board in the regulation of public utilities.
  11-10              (6)  The board shall annually use a portion of the
  11-11  assessments to provide on-site technical assistance and training to
  11-12  public utilities, water supply or sewer service corporations, and
  11-13  districts.  The board shall contract with others to provide the
  11-14  services.
  11-15              (7)  Except as provided by Paragraph (A) of this
  11-16  subdivision, assessments collected from retail customers for the
  11-17  prior 12 months are due on January 15 of each year.  The executive
  11-18  administrator shall collect all assessments from the utility
  11-19  service providers, and those funds shall be paid into the state
  11-20  treasury and credited to the water utility fund.
  11-21                    (A)  A utility service provider may make
  11-22  quarterly payments due on January 15, April 15, July 15, and
  11-23  October 15 of each year.  If payments are made quarterly and
  11-24  received by the board not later than the 30th day after the due
  11-25  date, the utility service provider may retain an administrative fee
   12-1  equal to 10 percent of the amount due for costs incurred in
   12-2  collecting and remitting the assessment.
   12-3                    (B)  The board shall assess on a utility service
   12-4  provider a penalty equal to 10 percent of the amount due for any
   12-5  payment received after January 31.  Funds delinquent for more than
   12-6  30 days shall draw interest at the rate of 10 percent a year on the
   12-7  assessment and penalty due.
   12-8                    (C)  The board shall assess a penalty against a
   12-9  municipality with a population of more than 1.5 million that does
  12-10  not provide municipal water and sewer services in an annexed area
  12-11  on or before 4-1/2 years after the annexation takes effect in
  12-12  accordance with Section 43.056, Local Government Code.  A penalty
  12-13  assessed under this paragraph shall be not more than $1,000 for
  12-14  each day the services are not provided after 4-1/2 years after the
  12-15  annexation.  A penalty collected under this paragraph shall be
  12-16  deposited into a special fund in the state treasury to be used to
  12-17  provide water and sewer service to residents of the city.
  12-18              (8)  The regulatory assessment does not apply to water
  12-19  that has not been treated for the purpose of human consumption.
  12-20        SECTION 5.  Section 11.002, Water Code, is amended as
  12-21  follows:
  12-22        Sec. 11.002.  Definitions.  In this chapter and in Chapter 12
  12-23  of this code:
  12-24              <(1)  "Commission" means the Texas Natural Resource
  12-25  Conservation Commission.>
   13-1              (1) <(2)>  "Board" means the Texas Water Development
   13-2  Board.
   13-3              (2) <(3)>  "Executive administrator <director>" means
   13-4  the executive administrator <director> of the Texas Water
   13-5  Development Board <Texas Natural Resource Conservation Commission>.
   13-6              (3) <(4)>  "Beneficial use" means use of the amount of
   13-7  water which is economically necessary for a purpose authorized by
   13-8  this chapter, when reasonable intelligence and reasonable diligence
   13-9  are used in applying the water to that purpose.
  13-10              (4) <(5)>  "Water right" means a right acquired under
  13-11  the laws of this state to impound, divert, or use state water.
  13-12              (5) <(6)>  "Appropriator" means a person who has made
  13-13  beneficial use of any water in a lawful manner under the provisions
  13-14  of any act of the legislature before the enactment of Chapter 171,
  13-15  General Laws, Acts of the 33rd Legislature, 1913, as amended, and
  13-16  who has filed with the State Board of Water Engineers a record of
  13-17  his appropriation as required by the 1913 Act, as amended, or a
  13-18  person who makes or has made beneficial use of any water within the
  13-19  limitations of a permit lawfully issued by the commission or one of
  13-20  its predecessors.
  13-21              (6) <(7)>  Renumbered as subd. (6) by Acts 1985, 69th
  13-22  Leg., ch.  795, Sec. 1.003, eff. Sept. 1, 1985.
  13-23              (7) <(8)>  "Conservation" means:
  13-24                    (A)  the development of water resources; and
  13-25                    (B)  those practices, techniques, and
   14-1  technologies that will reduce the consumption of water, reduce the
   14-2  loss or waste of water, improve the efficiency in the use of water,
   14-3  or increase the recycling and reuse of water so that a water supply
   14-4  is made available for future or alternative uses.
   14-5        SECTION 6.  Section 11.004, Water Code, is amended to read as
   14-6  follows:
   14-7        Sec. 11.004.  Board <Commission> to Receive Certified Copies
   14-8  of Judgments, Etc.
   14-9        When any court of record renders a judgment, decree, or order
  14-10  affecting the title to any water right, claim, appropriation, or
  14-11  irrigation facility or affecting any matter over which the board
  14-12  <commission> is given supervision by law, the clerk of the court
  14-13  shall immediately transmit to the board <commission> a certified
  14-14  copy of the judgment, decree, or order.
  14-15        SECTION 7.  Section 11.026, Water Code, is amended to read as
  14-16  follows:
  14-17        Sec. 11.026.  Perfection of an Appropriation.
  14-18        No right to appropriate water is perfected unless the water
  14-19  has been beneficially used for a purpose stated in the original
  14-20  declaration of intention to appropriate water or stated in a permit
  14-21  issued by the board <commission> or one of its predecessors.
  14-22        SECTION 8.  Section 11.031, Water Code, is amended to read as
  14-23  follows:
  14-24        Sec. 11.031.  Annual Report.  (a) Not later than March 1 of
  14-25  each year, each person who has a water right issued by the board
   15-1  <commission> or who impounded, diverted, or otherwise used state
   15-2  water during the preceding calendar year shall submit a written
   15-3  report to the board <commission> on a form prescribed by the board
   15-4  <commission>.  The report shall contain all information required by
   15-5  the board <commission> to aid in administering the water law and in
   15-6  making inventory of the state's water resources.  However, with the
   15-7  exception of those persons who hold water rights, no report is
   15-8  required of persons who take water solely for domestic or livestock
   15-9  purposes.
  15-10        (b)  A person who fails to file an annual report with the
  15-11  board <commission> as required by this section is liable to a
  15-12  penalty of $25, plus $1 per day for each day he fails to file the
  15-13  statement after March 1.  However, the maximum penalty under this
  15-14  section is $150.  The state may sue to recover the penalty.
  15-15        (c)  The board <commission> may waive the requirements of
  15-16  Subsection (a) of this section for a person who has a water right
  15-17  or uses state water in an area of the state where watermaster
  15-18  operations are established.
  15-19        SECTION 9.  Section 11.034, Water Code, is amended to read as
  15-20  follows:
  15-21        Sec. 11.034.  Reservoir Site:  Land and Rights-of-Way.
  15-22        An appropriator who is authorized to construct a dam or
  15-23  reservoir is granted the right-of-way, not to exceed 100 feet wide,
  15-24  and the necessary area for the site, over any public school land,
  15-25  university land, or asylum land of this state and the use of the
   16-1  rock, gravel, and timber on the site and right-of-way for
   16-2  construction purposes, after paying compensation as determined by
   16-3  the board <commission>.  An appropriator may acquire the reservoir
   16-4  site and rights-of-way over private land by contract.
   16-5        SECTION 10.  Section 11.035, Water Code, is amended to read
   16-6  as follows:
   16-7        Sec. 11.035.  Condemnation of Private Property.  (a)  An
   16-8  appropriator may obtain rights-of-way over private land and may
   16-9  obtain the land necessary for pumping plants, intakes, headgates,
  16-10  and storage reservoirs by condemnation.
  16-11        (b)  The party obtaining private property by condemnation
  16-12  shall cause damages to be assessed and paid for as provided by the
  16-13  statutes of this state relating to eminent domain.
  16-14        (c)  If the party exercising the power granted by this
  16-15  section is not a corporation, district, city, or town, he shall
  16-16  apply to the board <commission> for the condemnation.
  16-17        (d)  The executive administrator <director> shall have the
  16-18  proposed condemnation investigated.  After the investigation, the
  16-19  board <commission> may give notice to the party owning the land
  16-20  proposed to be condemned and hold a hearing on the proposed
  16-21  condemnation.
  16-22        (e)  If after a hearing the board <commission> determines
  16-23  that the condemnation is necessary, the executive administrator
  16-24  <director> may institute condemnation proceedings in the name of
  16-25  the State of Texas for the use and benefit of the party who applied
   17-1  for the condemnation and all others similarly situated.
   17-2        (f)  The parties at whose instance a condemnation suit is
   17-3  instituted shall pay the costs of the suit and condemnation in
   17-4  proportion to the benefits received by each party as fixed by the
   17-5  board <commission>.  Before using any of the condemned rights or
   17-6  property, a party receiving the rights or property shall pay the
   17-7  amount of costs fixed by the board <commission>.
   17-8        (g)  If, after the costs of the condemnation proceedings have
   17-9  been paid, a party seeks to take the benefits of the condemnation
  17-10  proceedings, he shall apply to the board <commission> for the
  17-11  benefits.  The board <commission> may grant the application and fix
  17-12  the fees and charges to be paid by the applicant.
  17-13        SECTION 11.  Section 11.036, Water Code, is amended as
  17-14  follows:
  17-15        Sec. 11.036.  Conserved or Stored Water:  Supply Contract.
  17-16        (a)  A person, association of persons, corporation, or water
  17-17  improvement or irrigation district having in possession and control
  17-18  any storm water, floodwater, or rainwater that is conserved or
  17-19  stored as authorized by this chapter may contract to supply the
  17-20  water to any person, association of persons, corporation, or water
  17-21  improvement or irrigation district having the right to acquire use
  17-22  of the water.
  17-23        (b)  The price and terms of the contract shall be just and
  17-24  reasonable and without discrimination, and the contract is subject
  17-25  to the same revision and control as provided in this code for other
   18-1  water rates and charges.  If any person uses the stored or
   18-2  conserved water without first entering into a contract with the
   18-3  party that conserved or stored it, the user shall pay for the use
   18-4  at a rate determined by the board <commission> to be just and
   18-5  reasonable, subject to court review as in other cases.
   18-6        SECTION 12.  Section 11.041, Water Code, is amended as
   18-7  follows:
   18-8        Sec. 11.041.  Denial of Water:  Complaint.  (a)  Any person
   18-9  entitled to receive or use water from any canal, ditch, flume,
  18-10  lateral, dam, reservoir, or lake or from any conserved or stored
  18-11  supply may present to the board <commission> a written petition
  18-12  showing:
  18-13              (1)  that he is entitled to receive or use the water;
  18-14              (2)  that he is willing and able to pay a just and
  18-15  reasonable price for the water;
  18-16              (3)  that the party owning or controlling the water
  18-17  supply has water not contracted to others and available for the
  18-18  petitioner's use; and
  18-19              (4)  that the party owning or controlling the water
  18-20  supply fails or refuses to supply the available water to the
  18-21  petitioner, or that the price or rental demanded for the available
  18-22  water is not reasonable and just or is discriminatory.
  18-23        (b)  If the petition is accompanied by a deposit of $25, the
  18-24  executive administrator <director> shall have a preliminary
  18-25  investigation of the complaint made and determine whether or not
   19-1  there are probable grounds for the complaint.
   19-2        (c)  If, after preliminary investigation, the executive
   19-3  administrator <director> determines that probable grounds exist for
   19-4  the complaint, the board <commission> shall enter an order setting
   19-5  a time and place for a hearing on the petition.
   19-6        (d)  The board <commission> may require the complainant to
   19-7  make an additional deposit or execute a bond satisfactory to the
   19-8  board <commission> in an amount fixed by the board <commission>
   19-9  conditioned on the payment of all costs of the proceeding.
  19-10        (e)  At least 20 days before the date set for the hearing,
  19-11  the board <commission> shall transmit by registered mail a
  19-12  certified copy of the petition and a certified copy of the hearing
  19-13  order to the person against whom the complaint is made.
  19-14        (f)  The board <commission> shall hold a hearing on the
  19-15  complaint at the time and place stated in the order.  It may hear
  19-16  evidence orally or by affidavit in support of or against the
  19-17  complaint, and it may hear arguments.  On completion of the
  19-18  hearing, the board <commission> shall render a written decision.
  19-19        (g)  If, after the preliminary investigation, the executive
  19-20  administrator <director> determines that no probable grounds exist
  19-21  for the complaint, the executive administrator <director> shall
  19-22  dismiss the complaint.  The board <commission> may either return
  19-23  the deposit or pay it into the State Treasury.
  19-24        SECTION 13.  Section 11.042, Water Code, is amended as
  19-25  follows:
   20-1        Sec. 11.042.  Delivering Water Down Banks and Beds.  Under
   20-2  rules prescribed by the board <commission>, a person, association
   20-3  of persons, corporation, or water improvement or irrigation
   20-4  district supplying stored or conserved water under contract as
   20-5  provided in this chapter may use the bank and bed of any flowing
   20-6  natural stream in the state to convey the water from the place of
   20-7  storage to the place of use or to the diversion plant of the
   20-8  appropriator.  The board <commission> shall prescribe rules for
   20-9  this purpose.
  20-10        SECTION 14.  Section 11.084, Water Code, is amended as
  20-11  follows:
  20-12        Sec. 11.084.  Sale of Permanent Water Right Without a Permit.
  20-13        (a)  No person may sell or offer to sell a permanent water
  20-14  right unless he has perfected a right to appropriate state water by
  20-15  a certified filing, or unless he has obtained a permit from the
  20-16  board <commission>, authorizing the use of the water for the
  20-17  purposes for which the permanent water right is conveyed.
  20-18        (b)  A person who violates Subsection (a) of this section is
  20-19  guilty of a misdemeanor and upon conviction is punishable by a fine
  20-20  of not less than $100 nor more than $1,000 or by confinement in the
  20-21  county jail for not more than one year or by both.
  20-22        SECTION 15.  Section 11.085, Water Code, is amended as
  20-23  follows:
  20-24        Sec. 11.085.  Interwatershed Transfers.  (a)  No person may
  20-25  take or divert any of the water of the ordinary flow, underflow, or
   21-1  storm flow of any stream, watercourse, or watershed in this state
   21-2  into any other natural stream, watercourse, or watershed to the
   21-3  prejudice of any person or property situated within the watershed
   21-4  from which the water is proposed to be taken or diverted.
   21-5        (b)  No person may transfer water from one watershed to
   21-6  another without first applying for and receiving a permit from the
   21-7  board <commission> to do so.  Before issuing such a permit, the
   21-8  board <commission> shall hold a hearing to determine the rights
   21-9  that might be affected by the transfer.  The board <commission>
  21-10  shall give notice and hold the hearing in the manner prescribed by
  21-11  its procedural rules.
  21-12        (c)  A person who takes or diverts water in violation of this
  21-13  section is guilty of a misdemeanor and upon conviction is
  21-14  punishable by a fine of not less than $100 nor more than $500 or by
  21-15  confinement in the county jail for not more than six months.
  21-16        (d)  A person commits a separate offense each day he
  21-17  continues to take or divert water in violation of this section.
  21-18        SECTION 16.  Section 11.087, Water Code, is amended as
  21-19  follows:
  21-20        Sec. 11.087.  Diversion of Water on International Stream.
  21-21  (a)  When storm water or floodwater is released from a dam or
  21-22  reservoir on an international stream and the water is designated
  21-23  for use or storage downstream by a specified user who is legally
  21-24  entitled to receive it, no other person may store, divert,
  21-25  appropriate, or use the water or interfere with its passage
   22-1  downstream.
   22-2        (b)  The board <commission> may make and enforce rules and
   22-3  orders to implement the provisions of this section, including rules
   22-4  and orders designed to:
   22-5              (1)  establish an orderly system for water releases and
   22-6  diversions in order to protect vested rights and to avoid the loss
   22-7  of released water;
   22-8              (2)  prescribe the time that releases of water may
   22-9  begin and end;
  22-10              (3)  determine the proportionate quantities of the
  22-11  released water in transit and the water that would have been
  22-12  flowing in the stream without the addition of the released water;
  22-13              (4)  require each owner or operator of a dam or
  22-14  reservoir on the stream between the point of release and the point
  22-15  of destination to allow free passage of the released water in
  22-16  transit; and
  22-17              (5)  establish other requirements the board
  22-18  <commission> considers necessary to effectuate the purposes of this
  22-19  section.
  22-20        (c)  Orders made by the board <commission> to effectuate its
  22-21  rules under this section need not be published, but the board
  22-22  <commission> shall transmit a copy of every such order by certified
  22-23  mail to each diverter of water and to each reservoir owner on the
  22-24  stream between the point of release and the point of destination of
  22-25  the released water as shown by the records of the board
   23-1  <commission>.
   23-2        (d)  A person who violates any provision of this section is
   23-3  guilty of a misdemeanor and upon conviction is punishable by a fine
   23-4  of not more than $100 or by confinement in the county jail for not
   23-5  more than six months or by both.  A person commits a separate
   23-6  offense each day he continues to violate this section.
   23-7        SECTION 17.  Section 11.0871, Water Code, is amended as
   23-8  follows:
   23-9        Sec. 11.0871.  Temporary Diversion of Water on International
  23-10  Stream.  (a)  The board <commission> may authorize, under
  23-11  conditions stated in an order, a watermaster to provide for the
  23-12  temporary diversion and use by holders of water rights of storm
  23-13  water or floodwater that spills from dams and reservoirs on an
  23-14  international stream and otherwise would flow into the Gulf of
  23-15  Mexico without opportunity for beneficial use.
  23-16        (b)  In an order made by the board <commission> under this
  23-17  section, the board <commission> may not discriminate between
  23-18  holders of water rights from an international stream except to the
  23-19  extent necessary to protect the holders of water rights from the
  23-20  same source of supply.
  23-21        (c)  The board <commission> shall give notice by mail to
  23-22  holders of water rights from an international stream and shall hold
  23-23  an evidentiary hearing before entry of an order under this section.
  23-24        SECTION 18.  Section 11.093, Water Code, is amended as
  23-25  follows:
   24-1        Sec. 11.093.  Abatement of Waste as Public Nuisance.  (a)  A
   24-2  person who permits an unreasonable loss of water through faulty
   24-3  design or negligent operation of any waterworks using water for a
   24-4  purpose named in this chapter commits waste, and the board
   24-5  <commission> may declare the works causing the waste to be a public
   24-6  nuisance.  The board <commission> may take the necessary action to
   24-7  abate the nuisance.  Also, any person who may be injured by the
   24-8  waste may sue in the district court having jurisdiction over the
   24-9  works causing the waste to have the operation of the works abated
  24-10  as a public nuisance.
  24-11        (b)  In case of a wasteful use of water defined by Section
  24-12  11.092 of this code, the board <commission> shall declare the use
  24-13  to be a public nuisance and shall act to abate the nuisance by
  24-14  directing the person supplying the water to close the water gates
  24-15  of the person wasting the water and to keep them closed until the
  24-16  board <commission> determines that the unlawful use of water is
  24-17  corrected.
  24-18        SECTION 19.  Section 11.097, Water Code, is amended as
  24-19  follows:
  24-20        Sec. 11.097.  Removal of Obstructions from Navigable Streams.
  24-21  (a)  On its own motion or on written request from a commissioners
  24-22  court, the board <commission> shall investigate a reported natural
  24-23  obstruction in a navigable stream caused by the accumulation of
  24-24  limbs, logs, leaves, other tree parts, or other debris.  If making
  24-25  the investigation on request of a commissioners court, the board
   25-1  <commission> must make its investigation not later than the 30th
   25-2  day after the date on which it receives the written request from
   25-3  the commissioners court.
   25-4        (b)  On completion of the investigation, if the board
   25-5  <commission> determines that the obstruction is creating a hazard
   25-6  or is having other detrimental effect on the navigable stream, the
   25-7  board <commission> shall initiate action to remove the obstruction.
   25-8        (c)  In removing an obstruction, the board <commission> may
   25-9  solicit the assistance of federal and state agencies including the
  25-10  Corps of Engineers, Texas National Guard, the Parks and Wildlife
  25-11  Department, and districts and authorities created under Article
  25-12  III, Sections 52(b)(1) and (2), or Article XVI, Section 59, of the
  25-13  Texas Constitution.  Also, the board <commission> may enter into
  25-14  contracts for services required to remove an obstruction.  However,
  25-15  no river authority may require the removal, relocation, or
  25-16  reconfiguration of a floating structure which was in place before
  25-17  the effective date of this Act and the effective date of any
  25-18  ordinance, rule, resolution, or other act of the river authority
  25-19  mandating such action unless the board <commission> determines the
  25-20  structure is an obstruction to navigation.
  25-21        SECTION 20.  Section 11.121, Water Code, is amended as
  25-22  follows:
  25-23        Sec. 11.121.  Permit Required
  25-24        Except as provided in Sections 11.142 and 11.1421 of this
  25-25  code, no person may appropriate any state water or begin
   26-1  construction of any work designed for the storage, taking, or
   26-2  diversion of water without first obtaining a permit from the board
   26-3  <commission> to make the appropriation.
   26-4        SECTION 21.  Section 11.122, Water Code, is amended as
   26-5  follows:
   26-6        Sec. 11.122.  Amendments to Water Rights Required.  (a)  All
   26-7  holders of permits, certified filings, and certificates of
   26-8  adjudication issued under Section 11.323 of this code shall obtain
   26-9  from the board <commission> authority to change the place of use,
  26-10  purpose of use, point of diversion, rate of diversion, acreage to
  26-11  be irrigated, or otherwise alter a water right.
  26-12        (b)  The board <commission> shall adopt rules to effectuate
  26-13  the provisions of this section.
  26-14        SECTION 22.  Section 11.123, Water Code, is amended as
  26-15  follows:
  26-16        Sec. 11.123.  Permit Preferences.  The board <commission>
  26-17  shall give preference to applications in the order declared in
  26-18  Section 11.024 of this code and to applications which will
  26-19  effectuate the maximum utilization of water and are calculated to
  26-20  prevent the escape of water without contribution to a beneficial
  26-21  public service.
  26-22        SECTION 23.  Section 11.126, Water Code, is amended as
  26-23  follows:
  26-24        Sec. 11.126.  Commission Requirements.  (a)  If the proposed
  26-25  taking or diversion of water for irrigation exceeds nine cubic feet
   27-1  per second, the executive administrator <director> may require
   27-2  additional information as prescribed by this section.
   27-3        (b)  The executive administrator <director> may require a
   27-4  continuous longitudinal profile, cross sections of the proposed
   27-5  channel, and the detail plans of any proposed structure, on any
   27-6  scales and with any definition the executive administrator
   27-7  <director> considers necessary or expedient.
   27-8        (c)  If the application proposes construction of a dam
   27-9  greater than six feet in height either for diversion or storage,
  27-10  the executive administrator <director> may also require filing a
  27-11  copy of all plans and specifications and a copy of the engineer's
  27-12  field notes of any survey of the lake or reservoir.  No work on the
  27-13  project shall proceed until approval of the plans is obtained from
  27-14  the executive administrator <director>.
  27-15        (d)  If the applicant is a corporation, the board
  27-16  <commission> may require filing a certified copy of its articles of
  27-17  incorporation, a statement of the names and addresses of its
  27-18  directors and officers, and a statement of the amount of its
  27-19  authorized capital stock and its paid-up capital stock.
  27-20        (e)  If the applicant is not a corporation, the board
  27-21  <commission> may require filing a sworn statement showing the name
  27-22  and address of each person interested in the appropriation, the
  27-23  extent of his interest, and his financial condition.
  27-24        SECTION 24.  Section 11.127, Water Code, is amended as
  27-25  follows:
   28-1        Sec. 11.127.  Additional Requirements:  Drainage Plans.
   28-2        If the board <commission> believes that the efficient
   28-3  operation of any existing or proposed irrigation system may be
   28-4  adversely affected by lack of adequate drainage facilities incident
   28-5  to the work proposed to be done by an applicant, the board
   28-6  <commission> may require the applicant to submit to the executive
   28-7  administrator <director> for approval plans for drainage adequate
   28-8  to guard against any injury which the proposed work may entail.
   28-9        SECTION 25.  Section 11.1271, Water Code, is amended as
  28-10  follows:
  28-11        Sec. 11.1271.  Additional Requirements:  Water Conservation
  28-12  Plans.  The board <commission> may require the formulation and
  28-13  submission of a water conservation plan and the adoption of
  28-14  reasonable water conservation measures, as defined by Subdivision
  28-15  (8)(B), Section 11.002, of this code.
  28-16        SECTION 26.  Section 11.128, Water Code, is amended as
  28-17  follows:
  28-18        Sec. 11.128.  Payment of Fee.
  28-19        If the applicant is not exempted from payment of the filing
  28-20  fee under Section 12.112 of this code, he shall pay the filing fee
  28-21  prescribed by Section 12.111(b) of this code at the time he files
  28-22  the application.  The board <commission> shall not record, file, or
  28-23  consider the application until the executive administrator
  28-24  <director> certifies to the board <commission> that the fee is
  28-25  paid.
   29-1        SECTION 27.  Section 11.130, Water Code, is amended as
   29-2  follows:
   29-3        Sec. 11.130.  Recording Applications.  (a)  The executive
   29-4  administrator <director> shall have all applications for
   29-5  appropriations recorded in a well-bound book kept for that purpose
   29-6  in the board <commission> office.
   29-7        (b)  The executive administrator <director> shall have the
   29-8  applications indexed alphabetically in the name of:
   29-9              (1)  the applicant;
  29-10              (2)  the stream or source from which the appropriation
  29-11  is sought to be made; and
  29-12              (3)  the county in which the appropriation is sought to
  29-13  be made.
  29-14        SECTION 28.  Section 11.131, Water Code, is amended as
  29-15  follows:
  29-16        Sec. 11.131.  Examination and Denial of Application Without
  29-17  Hearing.  (a)  The board <commission> shall make a preliminary
  29-18  examination of the application, and if it appears that there is no
  29-19  unappropriated water in the source of supply or that the proposed
  29-20  appropriation should not be allowed for other reasons, the board
  29-21  <commission> may deny the application.
  29-22        (b)  If the board <commission> denies the application under
  29-23  this section and the applicant elects not to proceed further, the
  29-24  board <commission> may order any part of the fee submitted with the
  29-25  application returned to the applicant.
   30-1        SECTION 29.  Section 11.132, Water Code, is amended as
   30-2  follows:
   30-3        Sec. 11.132.  Notice.  (a)  Notice shall be given to the
   30-4  persons who in the judgment of the board <commission> may be
   30-5  affected by an application, including those persons listed in
   30-6  Subdivision (2), Subsection (d), of this section.  The board
   30-7  <commission>, on the motion of a board member <commissioner> or on
   30-8  the request of the executive administrator <director> or any
   30-9  affected person, shall hold a public hearing on the application.
  30-10        (b)  If the proposed use is for irrigation, the board
  30-11  <commission> shall include in the notice a general description of
  30-12  the location and area of the land to be irrigated.
  30-13        (c)  In the notice, the board <commission> shall:
  30-14              (1)  state the name and address of the applicant;
  30-15              (2)  state the date the application was filed;
  30-16              (3)  state the purpose and extent of the proposed
  30-17  appropriation of water;
  30-18              (4)  identify the source of supply and the place where
  30-19  the water is to be stored or taken or diverted from the source of
  30-20  supply;
  30-21              (5)  specify the time and location where the board
  30-22  <commission> will consider the application; and
  30-23              (6)  give any additional information the board
  30-24  <commission> considers necessary.
  30-25        (d)  The board <commission> may act on the application
   31-1  without holding a public hearing if:
   31-2              (1)  not less than 30 days before the date of action on
   31-3  the application by the board <commission>, the applicant has
   31-4  published the board's <commission's> notice of the application at
   31-5  least once in a newspaper regularly published or circulated within
   31-6  the section of the state where the source of water is located;
   31-7              (2)  not less than 30 days before the date of action on
   31-8  the application by the board <commission>, the board <commission>
   31-9  mails a copy of the notice by first-class mail, postage prepaid,
  31-10  to:
  31-11                    (A)  each claimant or appropriator of water from
  31-12  the source of water supply, the record of whose claim or
  31-13  appropriation has been filed with the board <commission>; and
  31-14                    (B)  all navigation districts within the river
  31-15  basin concerned; and
  31-16              (3)  within 30 days after the date of the newspaper
  31-17  publication of the board's <commission's> notice, a public hearing
  31-18  has not been requested in writing by a board member <commissioner>,
  31-19  the executive administrator <director>, or an affected person who
  31-20  objects to the application.
  31-21        (e)  The inadvertent failure of the board <commission> to
  31-22  mail a notice under Subdivision (2), Subsection (d), of this
  31-23  section to a navigation district that is not a claimant or
  31-24  appropriator of water does not prevent the board's <commission's>
  31-25  consideration of the application.
   32-1        (f)  If, on the date specified in the notice prescribed by
   32-2  Subsection (c) of this section, the board <commission> determines
   32-3  that a public hearing must be held, the matter shall be remanded
   32-4  for hearing without the necessity of issuing further notice other
   32-5  than advising all parties of the time and place where the hearing
   32-6  is to convene.
   32-7        SECTION 30.  Section 11.134, Water Code, is amended as
   32-8  follows:
   32-9        Sec. 11.134.  Action on Application.  (a)  After the hearing,
  32-10  the board <commission> shall make a written decision granting or
  32-11  denying the application.  The application may be granted or denied
  32-12  in whole or in part.
  32-13        (b)  The board <commission> shall grant the application only
  32-14  if:
  32-15              (1)  the application conforms to the requirements
  32-16  prescribed by this chapter and is accompanied by the prescribed
  32-17  fee;
  32-18              (2)  unappropriated water is available in the source of
  32-19  supply;
  32-20              (3)  the proposed appropriation:
  32-21                    (A)  contemplates the application of water to any
  32-22  beneficial use;
  32-23                    (B)  does not impair existing water rights or
  32-24  vested riparian rights; and
  32-25                    (C)  is not detrimental to the public welfare;
   33-1  and
   33-2              (4)  the applicant has provided evidence that
   33-3  reasonable diligence will be used to avoid waste and achieve water
   33-4  conservation as defined by Subdivision (8)(B), Section 11.002, of
   33-5  this code.
   33-6        SECTION 31.  Section 11.135, Water Code, is amended as
   33-7  follows:
   33-8        Sec. 11.135.  Issuance of Permit.  (a)  On approval of an
   33-9  application, the board <commission> shall issue a permit to the
  33-10  applicant.  The applicant's right to take and use water is limited
  33-11  to the extent and purposes stated in the permit.
  33-12        (b)  The permit shall be in writing and attested by the seal
  33-13  of the board <commission>, and it shall contain substantially the
  33-14  following information:
  33-15              (1)  the name of the person to whom the permit is
  33-16  issued;
  33-17              (2)  the date the permit is issued;
  33-18              (3)  the date the original application was filed;
  33-19              (4)  the use or purpose for which the appropriation is
  33-20  to be made;
  33-21              (5)  the amount or volume of water authorized to be
  33-22  appropriated for each purpose;
  33-23              (6)  a general description of the source of supply from
  33-24  which the appropriation is proposed to be made;
  33-25              (7)  the time within which construction or work must
   34-1  begin and the time within which it must be completed; and
   34-2              (8)  any other information the board <commission>
   34-3  prescribes.
   34-4        (c)  If the appropriation is for irrigation, the board
   34-5  <commission> shall also place in the permit a description and
   34-6  statement of the approximate area of the land to be irrigated.
   34-7        SECTION 32.  Section 11.1351, Water Code, is amended as
   34-8  follows:
   34-9        Sec. 11.1351.  Permit Restrictions.  In granting an
  34-10  application, the board <commission> may direct that stream flow
  34-11  restrictions and other conditions and restrictions be placed in the
  34-12  permit being issued to protect the priority of senior water rights.
  34-13        SECTION 33.  Section 11.136, Water Code, is amended as
  34-14  follows:
  34-15        Sec. 11.136.  Recording of Permit.  (a)  The board
  34-16  <commission> shall transmit the permit by registered mail to the
  34-17  county clerk of the county in which the appropriation is to be
  34-18  made.
  34-19        (b)  When the county clerk receives the permit and is paid
  34-20  the recording fee (as prescribed by Subchapter B, Chapter 118,
  34-21  Local Government Code, he shall file and record the permit in a
  34-22  well-bound book kept for that purpose.  He shall index the permit
  34-23  alphabetically in the name of the applicant and of the stream or
  34-24  source of water supply.  After he has recorded the permit, the
  34-25  county clerk shall deliver the permit, on demand, to the applicant.
   35-1        (c)  When the permit is filed in the office of the county
   35-2  clerk, it is constructive notice of:
   35-3              (1)  the filing of the application;
   35-4              (2)  the issuance of the permit; and
   35-5              (3)  all the rights arising under the filing of the
   35-6  application and the issuance of the permit.
   35-7        SECTION 34.  Section 11.137, Water Code, is amended as
   35-8  follows:
   35-9        Sec. 11.137.  Seasonal Permits.  (a)  The board <commission>
  35-10  may issue seasonal permits in the same manner that it issues
  35-11  regular permits.  The provisions of this chapter governing issuance
  35-12  of regular permits apply to issuance of seasonal permits.
  35-13        (b)  The right to take, use, or divert water under seasonal
  35-14  permit is limited to the portion or portions of the calendar year
  35-15  stated in the permit.
  35-16        (c)  In a seasonal permit, the board <commission> shall
  35-17  specify the conditions necessary to fully protect prior
  35-18  appropriations or vested rights on the stream.
  35-19        SECTION 35.  Section 11.138, Water Code, is amended as
  35-20  follows:
  35-21        Sec. 11.138.  Temporary Permits.  (a)  The board <commission>
  35-22  may issue temporary permits for beneficial purposes to the extent
  35-23  that they do not interfere with or adversely affect prior
  35-24  appropriations or vested rights on the stream from which water is
  35-25  to be diverted under such temporary permit.  The board <commission>
   36-1  may, by appropriate order, authorize any member of the board
   36-2  <commission> to approve and issue temporary permits without notice
   36-3  and hearing if it appears to such issuing party that sufficient
   36-4  water is available at the proposed point of diversion to satisfy
   36-5  the requirements of the temporary permit as well as all existing
   36-6  rights.  No temporary permit issued without notice and hearing
   36-7  shall authorize more than 10 acre-feet of water, nor may it be for
   36-8  a term in excess of one year.
   36-9        (b)  The board <commission> may prescribe rules governing
  36-10  notice and procedure for the issuance of temporary permits.
  36-11        (c)  As between temporary permits, the one applied for first
  36-12  has priority.
  36-13        (d)  The board <commission> may not issue a temporary permit
  36-14  for a period exceeding three calendar years.
  36-15        (e)  A temporary permit does not vest in its holder a
  36-16  permanent right to the use of water.
  36-17        (f)  A temporary permit expires and shall be cancelled by the
  36-18  board <commission> in accordance with the terms of the permit.
  36-19        (g)  The board <commission> may prescribe by rule the fees to
  36-20  be paid for issuance of temporary permits, but no fee for issuance
  36-21  or extension of a temporary permit shall exceed $500.
  36-22        SECTION 36.  Section 11.1381, Water Code, is amended as
  36-23  follows:
  36-24        Sec. 11.1381.  Term Permits (a)  Until a water right is
  36-25  perfected to the full extent provided by Section 11.026 of this
   37-1  code, the board <commission> may issue permits for a term of years
   37-2  for use of state water to which a senior water right has not been
   37-3  perfected.
   37-4        (b)  The board <commission> shall refuse to grant an
   37-5  application for a permit under this section if the board
   37-6  <commission> finds that there is a substantial likelihood that the
   37-7  issuance of the permit will jeopardize financial commitments made
   37-8  for water projects that have been built or that are being built to
   37-9  optimally develop the water resources of the area.
  37-10        (c)  The board <commission> shall refuse to grant an
  37-11  application for a term permit if the holder of the senior
  37-12  appropriative water right can demonstrate that the issuance of the
  37-13  term permit would prohibit the senior appropriative water right
  37-14  holder from beneficially using the senior rights during the term of
  37-15  the term permit.  Such demonstration will be made using reasonable
  37-16  projections based on accepted methods.
  37-17        (d)  A permit issued under this section is subordinate to any
  37-18  senior appropriative water rights.
  37-19        SECTION 37.  Section 11.139, Water Code, is amended as
  37-20  follows:
  37-21        Sec. 11.139.  Emergency Permits.  (a)  The board <commission>
  37-22  may grant an emergency permit for the diversion and use of water
  37-23  for a period of not more than 30 days if it finds that emergency
  37-24  conditions exist which threaten the public health, safety, and
  37-25  welfare and which override the necessity to comply with established
   38-1  statutory procedures.
   38-2        (b)  An emergency permit may be granted for a period of not
   38-3  more than 30 days, and no extension or additional emergency permit
   38-4  may be granted at the expiration of the original permit.
   38-5        (c)  An emergency permit may be granted under this section
   38-6  without the necessity to comply with statutory and other procedures
   38-7  required for granting other permits issued by the board
   38-8  <commission>.
   38-9        (d)  The board <commission> may prescribe rules and adopt
  38-10  fees which are necessary to carry out the provisions of this
  38-11  section.
  38-12        (e)  An emergency permit does not vest in the permittee any
  38-13  right to the diversion and use of water and shall expire and be
  38-14  cancelled in accordance with its terms.
  38-15        SECTION 38.  Section 11.140, Water Code, is amended as
  38-16  follows:
  38-17        Sec. 11.140.  Permits for Storage for Project Development.
  38-18        The board <commission> may issue permits for storage solely
  38-19  for the purpose of optimum development of projects.  The board
  38-20  <commission> may convert these permits to permits for beneficial
  38-21  use if application to have them converted is made to the board
  38-22  <commission>.
  38-23        SECTION 39.  Section 11.141, Water Code, is amended as
  38-24  follows:
  38-25        Sec. 11.141.  Date of Priority.
   39-1        When the board <commission> issues a permit, the priority of
   39-2  the appropriation of water and the claimant's right to use the
   39-3  water date from the date of filing of the application.
   39-4        SECTION 40.  Section 11.1421, Water Code, is amended as
   39-5  follows:
   39-6        Sec. 11.1421.  Permit Exemption for Mariculture Activities.
   39-7  (a)  In this section, "mariculture" means the propagation and
   39-8  rearing of aquatic species, including shrimp, other crustaceans,
   39-9  finfish, mollusks, and other similar creatures in a controlled
  39-10  environment using brackish or marine water.
  39-11        (b)  Without obtaining a permit and subject to the
  39-12  requirements and limitations provided by Subsections (c) through
  39-13  (e) of this section, a person who is engaged in mariculture
  39-14  operations on land may take for that purpose state water from the
  39-15  Gulf of Mexico and adjacent bays and arms of the Gulf of Mexico in
  39-16  an amount appropriate to those mariculture activities.
  39-17        (c)  Before a person first takes water under Subsection (b)
  39-18  of this section, the person must give notice to the board
  39-19  <commission> of the proposed appropriation.
  39-20        (d)  Each appropriation of water made under Subsection (b) of
  39-21  this section shall be reported to the board <commission> in the
  39-22  manner provided by the board's <commission's> rules.
  39-23        (e)  After notice and hearing, if the board <commission>
  39-24  determines that as a result of low freshwater inflows appropriation
  39-25  of water under Subsection (b) of this section would interfere with
   40-1  natural productivity of bays and estuaries, the board <commission>
   40-2  shall issue an order requiring interruption or reduction of the
   40-3  appropriation.
   40-4        SECTION 41.  Section 11.143, Water Code, is amended as
   40-5  follows:
   40-6        Sec. 11.143.  Domestic and Livestock Reservoir--Use for Other
   40-7  Purposes.  (a)  The owner of a dam or reservoir exempted under
   40-8  Section 11.142 of this code who desires to use water from the dam
   40-9  or reservoir for purposes other than domestic or livestock use
  40-10  shall obtain a permit to do so.  He may obtain a regular permit, a
  40-11  seasonal permit, or a permit for a term of years.  He may elect to
  40-12  obtain the permit by proceeding under this section or under the
  40-13  other provisions of this chapter governing issuance of permits.
  40-14        (b)  If the applicant elects to proceed under this section,
  40-15  he shall submit to the board <commission> a sworn application, on a
  40-16  form furnished by the board <commission>, containing the following
  40-17  information:
  40-18              (1)  the name and post-office address of the applicant;
  40-19              (2)  the nature and purpose of the use and the amount
  40-20  of water to be used annually for each purpose;
  40-21              (3)  the major watershed and the tributary (named or
  40-22  unnamed) on which the dam or reservoir is located;
  40-23              (4)  the county in which the dam or reservoir is
  40-24  located;
  40-25              (5)  the approximate distance and direction from the
   41-1  county seat of the county to the location of the dam or reservoir;
   41-2              (6)  the survey or the portion of the survey on which
   41-3  the dam or reservoir is located and, to the best of the applicant's
   41-4  knowledge and belief, the distance and direction of the midpoint of
   41-5  the dam or reservoir from a corner of the survey, which information
   41-6  the executive administrator <director> may require to be marked on
   41-7  an aerial photograph or map furnished by the board <commission>;
   41-8              (7)  the approximate surface area, to the nearest acre,
   41-9  of the reservoir when it is full and the average depth in feet when
  41-10  it is full; and
  41-11              (8)  the approximate number of square miles in the
  41-12  drainage area above the dam or reservoir.
  41-13        (c)  If the permit is sought for irrigation, the application
  41-14  must also specify:
  41-15              (1)  the total number of irrigable acres in the area;
  41-16              (2)  the number of acres to be irrigated within the
  41-17  area in any one year; and
  41-18              (3)  the approximate distance and direction of the land
  41-19  to be irrigated from the midpoint of the dam or reservoir.
  41-20        (d)  Except as otherwise specifically provided by this
  41-21  subsection, before the board <commission> may approve the
  41-22  application and issue the permit, it shall give notice and hold a
  41-23  hearing as prescribed by this section.  The board <commission> may
  41-24  act on the application without holding a public hearing if:
  41-25              (1)  not less than 30 days before the date of action on
   42-1  the application by the board <commission>, the applicant has
   42-2  published the board's <commission's> notice of the application at
   42-3  least once in a newspaper regularly published or circulated within
   42-4  the section of the state where the source of water is located;
   42-5              (2)  not less than 30 days before the date of action on
   42-6  the application by the board <commission>, the board <commission>
   42-7  mails a copy of the notice by first-class mail, postage prepaid, to
   42-8  each person whose claim or appropriation has been filed with the
   42-9  board <commission> and whose diversion point is downstream from
  42-10  that described in the application; and
  42-11              (3)  within 30 days after the date of the newspaper
  42-12  publication of the board's <commission's> notice, a public hearing
  42-13  is not requested in writing by a board member <commissioner>, the
  42-14  executive administrator <director>, or an affected person who
  42-15  objects to the application.
  42-16        (e)  In the notice, the board <commission> shall:
  42-17              (1)  state the name and post-office address of the
  42-18  applicant;
  42-19              (2)  state the date the application was filed;
  42-20              (3)  state the purpose and extent of the proposed
  42-21  appropriation of water;
  42-22              (4)  identify the source of supply and the place where
  42-23  the water is stored; and
  42-24              (5)  specify the time and place of the hearing.
  42-25        (f)  The notice shall be published only once, at least 20
   43-1  days before the date stated in the notice for the hearing on the
   43-2  application, in a newspaper having general circulation in the
   43-3  county where the dam or reservoir is located.   At least 15 days
   43-4  before the date set for the hearing, the board <commission> shall
   43-5  transmit a copy of the notice by first-class mail to each person
   43-6  whose claim or appropriation has been filed with the board
   43-7  <commission> and whose diversion point is downstream from that
   43-8  described in the application.
   43-9        (g)  If on the date specified in the notice prescribed by
  43-10  Subsection (d) of this section, the board <commission> determines
  43-11  that a public hearing must be held, the matter shall be remanded
  43-12  for hearing without the necessity of issuing further notice other
  43-13  than advising all parties of the time and place where the hearing
  43-14  is to convene.
  43-15        (h)  The applicant shall pay the filing fee prescribed by
  43-16  Section 12.111(b) of this code at the time he files the
  43-17  application.
  43-18        (i)  The board <commission> shall approve the application and
  43-19  issue the permit as applied for in whole or part if it determines
  43-20  that:
  43-21              (1)  there is unappropriated water in the source of
  43-22  supply;
  43-23              (2)  the applicant has met the requirements of this
  43-24  section;
  43-25              (3)  the water is to be used for a beneficial purpose;
   44-1              (4)  the proposed use is not detrimental to the public
   44-2  welfare or to the welfare of the locality; and
   44-3              (5)  the proposed use will not impair existing water
   44-4  rights.
   44-5        SECTION 42.  Section 11.144, Water Code, is amended as
   44-6  follows:
   44-7        Sec. 11.144.  Approval for Alterations.
   44-8        All holders of permits and certified filings shall obtain the
   44-9  approval of the board <commission> before making any alterations,
  44-10  enlargements, extensions, or other changes to any reservoir, dam,
  44-11  main canal, or diversion work on which a permit has been granted or
  44-12  a certified filing recorded.  A detailed statement and plans for
  44-13  alterations or changes shall be filed with the board <commission>
  44-14  and approved by the executive administrator <director> before the
  44-15  alterations or changes are made.  This section does not apply to
  44-16  the ordinary maintenance or emergency repair of the facility.
  44-17        SECTION 43.  Section 11.145, Water Code, is amended as
  44-18  follows:
  44-19        Sec. 11.145.  When Construction Must Begin.  (a)  If a permit
  44-20  is for appropriation by direct diversion, construction of the
  44-21  proposed facilities shall begin within the time fixed by the board
  44-22  <commission>, which shall not exceed two years after the date the
  44-23  permit is issued.  The appropriator shall work diligently and
  44-24  continuously to the completion of the construction.  The board
  44-25  <commission> may, by entering an order of record, extend the time
   45-1  for beginning construction.  The board <commission> may establish
   45-2  fees, not to exceed $1,000, for extending the time to begin
   45-3  construction of the proposed facilities.
   45-4        (b)  If the permit contemplates construction of a storage
   45-5  reservoir, construction shall begin within the time fixed by the
   45-6  board <commission>, not to exceed two years after the date the
   45-7  permit is issued.  The board <commission>, by entering an order of
   45-8  record, may extend the time for beginning construction.  The board
   45-9  <commission> may fix fees, not to exceed $1,000, for extending the
  45-10  time to begin construction of reservoirs.
  45-11        SECTION 44.  Section 11.146, Water Code, is amended as
  45-12  follows:
  45-13        Sec. 11.146.  Forfeitures and Cancellation of Permit for
  45-14  Inaction.  (a)  If a permittee fails to begin construction within
  45-15  the time specified in Section 11.145 of this code, he forfeits all
  45-16  rights to the permit, subject to notice and hearing as prescribed
  45-17  by this section.
  45-18        (b)  After beginning construction if the appropriator fails
  45-19  to work diligently and continuously to the completion of the work,
  45-20  the appropriation is subject to cancellation in whole or part,
  45-21  subject to notice and hearing as prescribed by this section.
  45-22        (c)  If the board <commission> believes that an appropriation
  45-23  or permit should be declared forfeited under this section or any
  45-24  other sections of this code, it should give the appropriator or
  45-25  permittee 30 days notice and provide him with an opportunity to be
   46-1  heard.
   46-2        (d)  After the hearing, the board <commission> by entering an
   46-3  order of record may cancel the appropriation in whole or part.  The
   46-4  board <commission> shall immediately transmit a certified copy of
   46-5  the cancellation order by certified mail to the county clerk of the
   46-6  county in which the permit is recorded.  The county clerk shall
   46-7  record the cancellation order.
   46-8        (e)  Except as provided by Section 11.1381 of this code, if a
   46-9  permit has been issued for the use of water, the water is not
  46-10  subject to a new appropriation until the permit has been cancelled
  46-11  in whole or part as provided by this section.
  46-12        (f)  Except as provided by Subchapter E of this chapter, none
  46-13  of the provisions of this code may be construed as intended to
  46-14  impair, cause, or authorize or may impair, cause, or authorize the
  46-15  forfeiture of any rights acquired by any declaration of
  46-16  appropriation or by any permit if the appropriator has begun or
  46-17  begins the work and development contemplated by his declaration of
  46-18  appropriation or permit within the time provided by the law under
  46-19  which the declaration of appropriation was made or the permit was
  46-20  granted and has prosecuted or continues to prosecute it with all
  46-21  reasonable diligence toward completion.
  46-22        SECTION 42.  Section 11.147, Water Code, is amended as
  46-23  follows:
  46-24        Sec. 11.147.  Effects of Permit on Bays and Estuaries and
  46-25  Instream Uses.  (a)  In this section, "beneficial inflows" means a
   47-1  salinity, nutrient, and sediment loading regime adequate to
   47-2  maintain an ecologically sound environment in the receiving bay and
   47-3  estuary system that is necessary for the maintenance of
   47-4  productivity of economically important and ecologically
   47-5  characteristic sport or commercial fish and shellfish species and
   47-6  estuarine life upon which such fish and shellfish are dependent.
   47-7        (b)  In its consideration of an application for a permit to
   47-8  store, take, or divert water, the board <commission> shall assess
   47-9  the effects, if any, of the issuance of the permit on the bays and
  47-10  estuaries of Texas.  For permits issued within an area that is 200
  47-11  river miles of the coast, to commence from the mouth of the river
  47-12  thence inland, the board <commission> shall include in the permit,
  47-13  to the extent practicable when considering all public interests,
  47-14  those conditions considered necessary to maintain beneficial
  47-15  inflows to any affected bay and estuary system.
  47-16        (c)  For the purposes of making a determination under
  47-17  Subsection (b) of this section, the board <commission> shall
  47-18  consider among other factors:
  47-19              (1)  the need for periodic freshwater inflows to supply
  47-20  nutrients and modify salinity to preserve the sound environment of
  47-21  the bay or estuary, using any available information, including
  47-22  studies and plans specified in Section 11.1491 of this code and
  47-23  other studies considered by the board <commission> to be reliable;
  47-24  together with existing circumstances, natural or otherwise, that
  47-25  might prevent the conditions imposed from producing benefits;
   48-1              (2)  the ecology and productivity of the affected bay
   48-2  and estuary system;
   48-3              (3)  the expected effects on the public welfare of not
   48-4  including in the permit some or all of the conditions considered
   48-5  necessary to maintain the beneficial inflows to the affected bay or
   48-6  estuary system;
   48-7              (4)  the quantity of water requested and the proposed
   48-8  use of water by the applicant, as well as the needs of those who
   48-9  would be served by the applicant;
  48-10              (5)  the expected effects on the public welfare of the
  48-11  failure to issue all or part of the permit being considered; and
  48-12              (6)  for purposes of this section, the declarations as
  48-13  to preferences for competing uses of water as found in Sections
  48-14  11.024 and 11.033, Water Code, as well as the public policy
  48-15  statement in Section 1.003, Water Code.
  48-16        (d)  In its consideration of an application to store, take,
  48-17  or divert water, the board <commission> shall consider the effect,
  48-18  if any, of the issuance of the permit on existing instream uses and
  48-19  water quality of the stream or river to which the application
  48-20  applies.
  48-21        (e)  The board <commission> shall also consider the effect,
  48-22  if any, of the issuance of the permit on fish and wildlife
  48-23  habitats.
  48-24        (f)  On receipt of an application for a permit to store,
  48-25  take, or divert water, the board <commission> shall send a copy of
   49-1  the permit application and any subsequent amendments to the Parks
   49-2  and Wildlife Department.  At its option, the Parks and Wildlife
   49-3  Department may be a party in hearings on applications for permits
   49-4  to store, take, or divert water.  In making a final decision on any
   49-5  application for a permit, the board <commission>, in addition to
   49-6  other information, evidence, and testimony presented, shall
   49-7  consider all information, evidence, and testimony presented by the
   49-8  Parks and Wildlife Department.
   49-9        (g)  The failure of the Parks and Wildlife Department to
  49-10  appear as a party does not relieve the board <commission> of the
  49-11  requirements of this section.
  49-12        SECTION 43.  Section 11.148, Water Code, is amended as
  49-13  follows:
  49-14        Sec. 11.148.  Emergency Suspension of Permit Conditions
  49-15  (a)  Permit conditions relating to the beneficial inflows to
  49-16  affected bays and estuaries and instream uses may be suspended by
  49-17  the board <commission> if the board <commission> finds that an
  49-18  emergency exists and cannot practically be resolved in other ways.
  49-19        (b)  Before the board <commission> suspends a permit under
  49-20  Subsection (a) of this section, it must give written notice to the
  49-21  Parks and Wildlife Department of the proposed suspension.  The
  49-22  board <commission> shall give the Parks and Wildlife Department an
  49-23  opportunity to submit comments on the proposed suspension within 72
  49-24  hours from such time and the board <commission> shall consider
  49-25  those comments before issuing its order imposing the suspension.
   50-1        (c)  The board <commission> may suspend the permit without
   50-2  notice to any other interested party other than the Parks and
   50-3  Wildlife Department as provided by Subsection (b) of this section.
   50-4  However, all affected persons shall be notified immediately by
   50-5  publication, and a hearing to determine whether the suspension
   50-6  should be continued shall be held within 15 days of the date on
   50-7  which the order to suspend is issued.
   50-8        SECTION 44.  Section 11.1491, Water Code, is amended as
   50-9  follows:
  50-10        Sec. 11.1491.  Evaluation of Bays and Estuaries Data (a)  The
  50-11  Parks and Wildlife Department and the board <commission> shall have
  50-12  joint responsibility to review the studies prepared under Section
  50-13  16.058 of this code, to determine inflow conditions necessary for
  50-14  the bays and estuaries, and to provide information necessary for
  50-15  water resources management.  Each agency shall designate an
  50-16  employee to share equally in the oversight of the program.  Other
  50-17  responsibilities shall be divided between the Parks and Wildlife
  50-18  Department and the board <commission> to maximize present in-house
  50-19  capabilities of personnel and to minimize costs to the state.  Each
  50-20  agency shall have reasonable access to all information produced by
  50-21  the other agency.  Publication of reports completed under this
  50-22  section shall be submitted for comment to both the board
  50-23  <commission> and the Parks and Wildlife Department.
  50-24        (b)  For purposes of guiding data collection and studies
  50-25  specified under Subsection (a) of this section, an advisory council
   51-1  may be established by the executive director<s> of the
   51-2  <commission,> Parks and Wildlife Department and the executive
   51-3  administrator of the board <Water Development Board> for each
   51-4  principal bay and estuary.  Each advisory council shall be composed
   51-5  of representatives of the board <commission>, Parks and Wildlife
   51-6  Department, <the Water Development Board,> Texas Department of
   51-7  Health, General Land Office, one representative of commercial
   51-8  fishing groups, one representative of recreational fishing and
   51-9  hunting groups, one representative of conservation groups, and
  51-10  representatives of conservation and reclamation districts or river
  51-11  authorities having responsibilities and operations in river basins
  51-12  or watersheds contributing to the bay or estuary.  The advisory
  51-13  councils may develop recommendations to the executive director<s>
  51-14  and executive administrator and to entities and organizations
  51-15  having operational responsibilities or holding major water rights
  51-16  in the contributing watersheds regarding alternative water
  51-17  management methods that may be used in maintaining the sound
  51-18  environment of the bays and estuaries.
  51-19        (c)  The board may authorize the use of money from the
  51-20  research and planning fund established by Chapter 15 of this code
  51-21  to accomplish the purposes of this section.  These funds shall be
  51-22  used by the board <commission> in cooperation with the Parks and
  51-23  Wildlife Department for interagency contracts with cooperating
  51-24  agencies and universities, and contracts with private sector
  51-25  establishments, as necessary, to accomplish the purposes of this
   52-1  section.
   52-2        SECTION 45.  Section 11.150, Water Code, is amended as
   52-3  follows:
   52-4        Sec. 11.150.  Effects of Permits on Water Quality.
   52-5        In consideration of an application for a permit under this
   52-6  subchapter, the board <commission> and the Texas Water Commission
   52-7  or its successor agency shall have joint responsibility to assess
   52-8  the effects, if any, of the issuance of the permit on water quality
   52-9  in this state.
  52-10        SECTION 46.  Section 11.152, Water Code, is amended as
  52-11  follows:
  52-12        Sec. 11.152.  Effects of Permits on Fish and Wildlife
  52-13  Habitats.
  52-14        In its consideration of an application for a permit to store,
  52-15  take, or divert water in excess of 5,000 acre feet per year, the
  52-16  board <commission> and the Texas Water Commission or its successor
  52-17  agency shall have joint responsibility to assess the effects, if
  52-18  any, on the issuance of the permit on fish and wildlife habitats
  52-19  and may require the applicant to take reasonable actions to
  52-20  mitigate adverse impacts on such habitat.  In determining whether
  52-21  to require an applicant to mitigate adverse impacts on a habitat,
  52-22  the board <commission> and the Texas Water Commission or its
  52-23  successor agency may consider any net benefit to the habitat
  52-24  produced by the project.  The board <commission> and the Texas
  52-25  Water Commission or its successor agency shall offset against any
   53-1  mitigation required by the U.S. Fish and Wildlife Service pursuant
   53-2  to 33 C.F.R. Sections 320-330 any mitigation authorized by this
   53-3  section.
   53-4        SECTION 47.  Section 11.171, Water Code, is amended as
   53-5  follows:
   53-6        Sec. 11.171.  Definitions
   53-7        As used in this subchapter:
   53-8              (1)  "Other interested person" means any person other
   53-9  than a record holder who is interested in the permit or certified
  53-10  filing or any person whose direct interest would be served by the
  53-11  cancellation of the permit or certified filing in whole or part.
  53-12              (2)  "Certified filing" means a declaration of
  53-13  appropriation or affidavit that was filed with the State Board of
  53-14  Water Engineers under the provisions of Section 14, Chapter 171,
  53-15  General Laws, Acts of the 33rd Legislature, 1913, as amended.
  53-16              (3)  "Certificate of adjudication" means a certificate
  53-17  issued by the board <commission> under Section 11.323 of this code.
  53-18              (4)  "Permit" means an authorization by the board
  53-19  <commission> granting a person the right to use water.
  53-20        SECTION 48.  Section 11.173, Water Code, is amended as
  53-21  follows:
  53-22        Sec. 11.173.  Cancellation in Whole or in Part.  (a)  Except
  53-23  as provided by Subsection (b) of this section, if all or part of
  53-24  the water authorized to be appropriated under a permit, certified
  53-25  filing, or certificate of adjudication has not been put to
   54-1  beneficial use at any time during the 10-year period immediately
   54-2  preceding the cancellation proceedings authorized by this
   54-3  subchapter, then the permit, certified filing, or certificate of
   54-4  adjudication is subject to cancellation in whole or in part, as
   54-5  provided by this subchapter, to the extent of the 10 years nonuse.
   54-6        (b)  A permit, certified filing, or certificate of
   54-7  adjudication or a portion of a permit, certified filing, or
   54-8  certificate of adjudication is exempt from cancellation under
   54-9  Subsection (a) of this section:
  54-10              (1)  to the extent of the owner's participation in the
  54-11  Conservation Reserve Program authorized by the Food Security Act,
  54-12  Pub. L. No. 99-198, Secs.  1231-1236, 99 Stat. 1354, 1509-1514
  54-13  (1985)  or a similar governmental program; or
  54-14              (2)  if any portion of the water authorized to be used
  54-15  pursuant to a permit, certified filing, or certificate of
  54-16  adjudication has been used in accordance with a water management
  54-17  plan approved by the board <commission>.
  54-18        SECTION 49.  Section 11.174, Water Code, is amended as
  54-19  follows:
  54-20        Sec. 11.174.  Board <Commission> May Initiate Proceedings
  54-21        When the board <commission> finds that its records do not
  54-22  show that some portion of the water has been used during the past
  54-23  10 years, the executive administrator <director> may initiate
  54-24  proceedings, terminated by public hearing, to cancel the permit,
  54-25  certified filing, or certificate of adjudication in whole or in
   55-1  part.
   55-2        SECTION 50.  Section 11.175, Water Code, is amended as
   55-3  follows:
   55-4        Sec. 11.175.  Notice (a)  At least 45 days before the date of
   55-5  the hearing, the board <commission> shall send notice of the
   55-6  hearing to the holder of the permit, certified filing, or
   55-7  certificate of adjudication being considered for cancellation in
   55-8  whole or in part.  Notice shall be sent by certified mail, return
   55-9  receipt requested, to the last address shown by the records of the
  55-10  board <commission>.  The board <commission> shall also send notice
  55-11  by regular mail to all other holders of permits, certified filings,
  55-12  certificates of adjudication, and claims of unadjudicated water
  55-13  rights filed pursuant to Section 11.303 of this code in the same
  55-14  watershed.
  55-15        (b)  The board <commission> shall also have the notice of the
  55-16  hearing published once a week for two consecutive weeks, at least
  55-17  30 days before the date of the hearing, in a newspaper published in
  55-18  each county in which diversion of water from the source of supply
  55-19  was authorized or proposed to be made and in each county in which
  55-20  the water was authorized or proposed to be used, as shown by the
  55-21  records of the board <commission>.  If in any such county no
  55-22  newspaper is published, then the notice may be published in a
  55-23  newspaper having general circulation in the county.
  55-24        SECTION 51.  Section 11.176, Water Code, is amended as
  55-25  follows:
   56-1        Sec. 11.176.  Hearing
   56-2        The board <commission> shall hold a hearing and shall give
   56-3  the holder of the permit, certified filing, or certificate of
   56-4  adjudication and other interested persons an opportunity to be
   56-5  heard and to present evidence on any matter pertinent to the
   56-6  questions at issue.
   56-7        SECTION 52.  Section 11.177, Water Code, is amended as
   56-8  follows:
   56-9        Sec. 11.177.  Board <Commission> Finding; Action (a)  At the
  56-10  conclusion of the hearing, the board <commission> shall cancel the
  56-11  permit, certified filing, or certificate of adjudication in whole
  56-12  or in part to the extent that it finds that:
  56-13              (1)  the water or any portion of the water appropriated
  56-14  under the permit, certified filing, or certificate of adjudication
  56-15  has not been put to an authorized beneficial use during the 10-year
  56-16  period;
  56-17              (2)  the holder has not used reasonable diligence in
  56-18  applying the water or the unused portion of the water to an
  56-19  authorized beneficial use; and
  56-20              (3)  the holder has not been justified in the nonuse or
  56-21  does not then have a bona fide intention of putting the water or
  56-22  the unused portion of the water to an authorized beneficial use
  56-23  within a reasonable time after the hearing.
  56-24        (b)  In determining what constitutes a justified nonuse and a
  56-25  reasonable time as used in Subsection (a)(3) of this section, the
   57-1  board <commission> shall give consideration to:
   57-2              (1)  the expenditures made or obligations incurred by
   57-3  the holder in connection with the permit, certified filing, or
   57-4  certificate of adjudication;
   57-5              (2)  the purpose to which the water is to be applied;
   57-6              (3)  the priority of the purpose;
   57-7              (4)  the amount of time usually necessary to put water
   57-8  to a beneficial use for the same purpose when diligently developed;
   57-9  and
  57-10              (5)  whether at all times during the 10-year period
  57-11  there was rainfall adequate to enable the use of all or part of the
  57-12  water authorized to be appropriated under the permit, certified
  57-13  filing, or certificate of adjudication.
  57-14        SECTION 53.  Section 11.183, Water Code, is amended as
  57-15  follows:
  57-16        Sec. 11.183.  Reservoir
  57-17        If the holder of a permit, certified filing, or certificate
  57-18  of adjudication has facilities for the storage of water in a
  57-19  reservoir, the board <commission> may allow him to retain the
  57-20  impoundment to the extent of the conservation storage capacity of
  57-21  the reservoir for domestic, livestock, or recreation purposes.
  57-22        SECTION 54.  Section 11.202, Water Code, is amended as
  57-23  follows:
  57-24        Sec. 11.202.  Right to Drill Artesian Well (a)  Except as
  57-25  provided by this section, a person is entitled to drill an artesian
   58-1  well for domestic purposes or for stock raising without complying
   58-2  with the general provisions of this code regulating the use of
   58-3  water.
   58-4        (b)  The artesian well must be on that person's own land and
   58-5  must be properly and securely cased.
   58-6        (c)  When water is reached containing mineral or other
   58-7  substances injurious to vegetation or agriculture, the artesian
   58-8  well must be securely capped or its flow controlled so as not to
   58-9  injure another person's land or properly plugged so as to prevent
  58-10  the water from rising above the first impervious stratum below the
  58-11  surface of the ground.
  58-12        (d)  Except as provided by Subsection (e) of this section,
  58-13  after September 1, 1991, and before January 1, 1994, a person may
  58-14  not drill and operate a free-flowing artesian well in a sole or
  58-15  principal source aquifer as designated by 40 C.F.R., Part 149,
  58-16  pursuant to Section 1424(e), Safe Drinking Water Act (42 U.S.C.
  58-17  300h-3(e)) that will result in a flow of more than 5,000 gallons
  58-18  per minute or that is within 1,000 feet of another well if the
  58-19  combined flows would exceed 5,000 gallons per minute.
  58-20        (e)  The board <commission> may grant for a well an exemption
  58-21  from the prohibition provided by Subsection (d) of this section for
  58-22  any beneficial use that does not waste water.  The board
  58-23  <commission> by rule may delegate the authority to grant exemptions
  58-24  under this subsection to a local water district.
  58-25        SECTION 55.  Section 11.203, Water Code, is amended as
   59-1  follows:
   59-2        Sec. 11.203.  Artesian Well:  Drilling Record (a)  A person
   59-3  who drills an artesian well or has one drilled shall keep a
   59-4  complete and accurate record of the depth, thickness, and character
   59-5  of the different strata penetrated and when the well is completed
   59-6  shall transmit a copy of the record to the board <commission> by
   59-7  registered mail.
   59-8        (b)  A person who violates any provision of this section is
   59-9  guilty of a misdemeanor and on conviction is punishable by a fine
  59-10  of not less than $10 nor more than $100.
  59-11        SECTION 56.  Section 11.204, Water Code, is amended as
  59-12  follows:
  59-13        Sec. 11.204.  Report of New Artesian Well
  59-14        Within one year after an artesian well is drilled, the owner
  59-15  or operator shall transmit to the board <commission> a sworn report
  59-16  stating the result of the drilling operation, the use to which the
  59-17  water will be applied, and the contemplated extent of the use.
  59-18        SECTION 57.  Section 11.207, Water Code, is amended as
  59-19  follows:
  59-20        Sec. 11.207.  Annual Report (a)  Not later than March 1 of
  59-21  each year, a person who during any part of the preceding calendar
  59-22  year owned or operated an artesian well for any purpose other than
  59-23  domestic use shall file a report to the board <commission> on a
  59-24  form supplied by the board <commission>.
  59-25        (b)  The report shall state:
   60-1              (1)  the quantity of water which was obtained from the
   60-2  well;
   60-3              (2)  the nature of the uses to which the water was
   60-4  applied;
   60-5              (3)  the change in the level of the well's water table;
   60-6  and
   60-7              (4)  other information required by the board
   60-8  <commission>.
   60-9        (c)  If water from the well was used for irrigation, the
  60-10  report shall also state the acreage and yield of each crop
  60-11  irrigated.
  60-12        SECTION 58.  Section 11.302, Water Code, is amended as
  60-13  follows:
  60-14        Sec. 11.302.  Declaration of Policy.
  60-15        The conservation and best utilization of the water resources
  60-16  of this state are a public necessity, and it is in the interest of
  60-17  the people of the state to require recordation with the board
  60-18  <commission> of claims water rights which are presently unrecorded,
  60-19  to limit the exercise of these claims to actual use, and to provide
  60-20  for the adjudication and administration of water rights to the end
  60-21  that the surface-water resources of the state may be put to their
  60-22  greatest beneficial use.  Therefore, this subchapter is in
  60-23  furtherance of the public rights, duties, and functions mentioned
  60-24  in this section and in response to the mandate expressed in Article
  60-25  XVI, Section 59 of the Texas Constitution and is in the exercise of
   61-1  the police powers of the state in the interest of the public
   61-2  welfare.
   61-3        SECTION 59.  Section 11.303, Water Code, is amended as
   61-4  follows:
   61-5        Sec. 11.303.  Recordation and Limitation of Certain Water
   61-6  Rights Claims (a)  This section applies to:
   61-7              (1)  claims of riparian water rights;
   61-8              (2)  claims under Section 11.143 of this code to
   61-9  impound, divert, or use state water for other than domestic or
  61-10  livestock purposes, for which no permit has been issued;
  61-11              (3)  claims of water rights under the Irrigation Acts
  61-12  of 1889 and 1895  which were not filed with the State Board of
  61-13  Water Engineers in accordance with the Irrigation Act of 1913, as
  61-14  amended; and
  61-15              (4)  other claims of water rights except claims under
  61-16  permits or certified filings.
  61-17        (b)  Any claim to which this section applies shall be
  61-18  recognized only if valid under existing law and only to the extent
  61-19  of the maximum actual application of water to beneficial use
  61-20  without waste during any calendar year from 1963 to 1967,
  61-21  inclusive.  However, in any case where a claimant of a riparian
  61-22  right has prior to August 28, 1967, commenced or completed the
  61-23  construction of works designed to apply a greater quantity of water
  61-24  to beneficial use, the right shall be recognized to the extent of
  61-25  the maximum amount of water actually applied to beneficial use
   62-1  without waste during any calendar year from 1963 to 1970,
   62-2  inclusive.
   62-3        (c)  On or before September 1, 1969, every person claiming a
   62-4  water right to which this section applies shall file with the board
   62-5  <commission> a statement setting forth:
   62-6              (1)  the name and address of the claimant;
   62-7              (2)  the location and nature of the right claimed;
   62-8              (3)  the stream or watercourse and the river basin in
   62-9  which the right is claimed;
  62-10              (4)  the date of commencement of works;
  62-11              (5)  the dates and volumes of use of water; and
  62-12              (6)  other information the board <commission> may
  62-13  require to show the nature and extent of the claim.
  62-14        (d)  A person who files a statement as provided in this
  62-15  section shall certify under oath that the statements made in
  62-16  support of his claim are true and correct to the best of his
  62-17  knowledge and belief.
  62-18        (e)  A claimant who desires recognition of a right based on
  62-19  use from 1968 to 1970, inclusive, as provided in Subsection (b) of
  62-20  this section shall file an additional sworn statement on or before
  62-21  July 1, 1971.
  62-22        (f)  The board <commission> shall prescribe forms for the
  62-23  sworn statements required by this section, but use of the board
  62-24  <commission> forms is not mandatory.
  62-25        (g)  On or before January 1, 1968, and June 1, 1969, the
   63-1  board <commission> shall cause notice of the requirements of this
   63-2  section to be published once each week for two consecutive weeks in
   63-3  newspapers having general circulation in each county of the state
   63-4  and by first-class mail to each user of surface water who has filed
   63-5  a report of water use with the board <commission>.
   63-6        (h)  On sworn petition, notice, and hearing as prescribed for
   63-7  applications for permits and upon finding of extenuating
   63-8  circumstances and good cause shown for failure to timely file, the
   63-9  board <commission> may authorize the filing of the sworn statement
  63-10  or statements required by this section until entry of a preliminary
  63-11  determination of claims of water rights in accordance with Section
  63-12  11.309 of this code which includes the area described in the
  63-13  petition or, if a preliminary determination has not been entered,
  63-14  until September 1, 1974.
  63-15        (i)  Since the filing of all claims to use public water is
  63-16  necessary for the conservation and best utilization of water
  63-17  resources of the state, failure to file a sworn statement in
  63-18  substantial compliance with this section extinguishes and bars any
  63-19  claim of water rights to which this section applies.
  63-20        (j)  A sworn statement submitted under this section is
  63-21  binding on the person submitting it and his successors in interest,
  63-22  but is not binding on the board <commission> or any other person in
  63-23  interest.
  63-24        (k)  Nothing in this section shall be construed to recognize
  63-25  any water right which did not exist before August 28, 1967.
   64-1        (l)  This section does not apply to use of water for domestic
   64-2  or livestock purposes.
   64-3        SECTION 60.  Section 11.304, Water Code, is amended as
   64-4  follows:
   64-5        Sec. 11.304.  Adjudication of Water Rights
   64-6        The water rights in any stream or segment of a stream may be
   64-7  adjudicated as provided in this subchapter:
   64-8              (1)  on the board's <commission's> own motion;
   64-9              (2)  on petition to the board <commission> signed by 10
  64-10  or more claimants of water rights from the source of supply; or
  64-11              (3)  on petition of the executive administrator
  64-12  <director>.
  64-13        SECTION 61.  Section 11.305, Water Code, is amended as
  64-14  follows:
  64-15        Sec. 11.305.  Investigation (a)  Promptly after a petition is
  64-16  filed under Section 11.304 of this Code, the board <commission>
  64-17  shall consider whether the adjudication would be in the public
  64-18  interest.  If the board <commission> finds that an adjudication
  64-19  would be in the public interest, it shall enter an order to that
  64-20  effect, designating the stream or segment to be adjudicated.  The
  64-21  executive administrator <director> shall have an investigation made
  64-22  of the area involved in order to gather relevant data and
  64-23  information essential to the proper understanding of the claims of
  64-24  water rights involved.  The results of the investigation shall be
  64-25  reduced to writing and made a matter of record in the board
   65-1  <commission> office.
   65-2        (b)  In connection with the investigation, the executive
   65-3  administrator <director> shall have a map or plat made showing with
   65-4  substantial accuracy the course of the stream or segment and the
   65-5  location of reservoirs, diversion works, and places of use,
   65-6  including lands which are being irrigated or have facilities for
   65-7  irrigation.
   65-8        SECTION 62.  Section 11.306, Water Code, is amended as
   65-9  follows:
  65-10        Sec. 11.306.  Notice of Adjudication (a)  The board
  65-11  <commission> shall prepare a notice of adjudication which describes
  65-12  the stream or segment to be adjudicated and the date by which all
  65-13  claims of water rights in the stream or segment shall be filed with
  65-14  the board <commission>.  The date shall not be less than 90 days
  65-15  after the date the notice is issued.
  65-16        (b)  The notice shall be published once a week for two
  65-17  consecutive weeks in one or more newspapers having general
  65-18  circulation in the counties in which the stream or segment is
  65-19  located.
  65-20        (c)  The notice shall also be sent by first-class mail to
  65-21  each claimant of water rights whose diversion is within the stream
  65-22  or segment to be adjudicated, to the extent that the claimants can
  65-23  reasonably be ascertained from the records of the board
  65-24  <commission>.
  65-25        SECTION 63.  Section 11.307, Water Code, is amended as
   66-1  follows:
   66-2        Sec. 11.307.  Filing of Sworn Claims.  (a)  Every person
   66-3  claiming a water right of any nature, except for domestic or
   66-4  livestock purposes, from the stream or segment under adjudication
   66-5  shall file a sworn claim with the board <commission> within the
   66-6  time prescribed in the notice of adjudication including any
   66-7  extensions of the prescribed time, setting forth:
   66-8              (1)  the name and post-office address of the claimant;
   66-9              (2)  the location and nature of the right claimed,
  66-10  including a description of any permit or certified filing under
  66-11  which the claim is made;
  66-12              (3)  the purpose of the use;
  66-13              (4)  a description of works and irrigated land; and
  66-14              (5)  all other information necessary to show the nature
  66-15  and extent of the claim.
  66-16        (b)  The board <commission> shall prescribe forms for claims,
  66-17  but use of the board <commission> forms is not mandatory.
  66-18        SECTION 64.  Section 11.308, Water Code, is amended as
  66-19  follows:
  66-20        Sec. 11.308.  Hearings on Claims; Notice
  66-21        The board <commission> shall set a time and a place for
  66-22  hearing all claims.  Not less than 30 days before commencement of
  66-23  the hearings, the board <commission> shall give notice of the
  66-24  hearings by certified mail to all persons who have filed claims in
  66-25  accordance with Section 11.307 of this code, or this notice may be
   67-1  included in the notice of adjudication provided in Section 11.306
   67-2  of this code.   The hearings shall be conducted as provided in
   67-3  Section 11.337 of this code.
   67-4        SECTION 65.  Section 11.309, Water Code, is amended as
   67-5  follows:
   67-6        Sec. 11.309.  Preliminary Determination of Claims.  (a)  On
   67-7  completion of the hearings, the board <commission> shall make a
   67-8  preliminary determination of the claims to water rights under
   67-9  adjudication.
  67-10        (b)  One copy of the preliminary determination shall be
  67-11  furnished without charge to each person who filed a claim in
  67-12  accordance with Section 11.307 of this code.  Additional copies of
  67-13  the preliminary determination shall be made available for public
  67-14  inspection at convenient locations throughout the river basin, as
  67-15  designated by the board <commission>.  Copies shall also be made
  67-16  available to other interested persons at a reasonable price, based
  67-17  on the cost of reproduction.
  67-18        SECTION 66.  Section 11.310, Water Code, is amended as
  67-19  follows:
  67-20        Sec. 11.310.  Evidence Open to Inspection.
  67-21        All evidence presented to or considered by the board
  67-22  <commission> shall be open to public inspection for a period of not
  67-23  less than 60 days, as fixed by the board <commission>, after the
  67-24  notice prescribed in Section 11.312 of this code is issued.
  67-25        SECTION 67.  Section 11.311, Water Code, is amended as
   68-1  follows:
   68-2        Sec. 11.311.  Date for Filing Contests
   68-3        The board <commission> shall set a date for filing contests
   68-4  on the preliminary determination, which date shall not be less than
   68-5  30 days after the period for public inspection of the evidence has
   68-6  closed.
   68-7        SECTION 68.  Section 11.312, Water Code, is amended as
   68-8  follows:
   68-9        Sec. 11.312.  Notice of Preliminary Determination; Copies (a)
  68-10  Promptly after the preliminary determination is made as provided in
  68-11  Section 11.309 of this code, the board <commission> shall publish
  68-12  notice of the determination once a week for two consecutive weeks
  68-13  in one or more newspapers having general circulation in the river
  68-14  basin in which the stream or segment that is the subject of the
  68-15  adjudication is located.
  68-16        (b)  The board <commission> shall also send notice by
  68-17  first-class mail to each claimant of water rights within the river
  68-18  basin in which the stream or segment is located, to the extent that
  68-19  the claimants can be reasonably ascertained from the records of the
  68-20  board <commission>.
  68-21        (c)  Each notice shall state:
  68-22              (1)  the place and the period of time that the
  68-23  preliminary determination and evidence presented to or considered
  68-24  by the board <commission> will be open for public inspection;
  68-25              (2)  the locations throughout the river basin where
   69-1  copies of the preliminary determination will be available for
   69-2  public inspection;
   69-3              (3)  the method of ordering copies of the preliminary
   69-4  determination and the charge for copies;
   69-5              (4)  the date by which contests on the preliminary
   69-6  determination must be filed.
   69-7        SECTION 69.  Section 11.313, Water Code, is amended as
   69-8  follows:
   69-9        Sec. 11.313.  Filing Contests (a)  Any water right claimant
  69-10  affected by the preliminary determination, including any claimant
  69-11  to water rights within the river basin but outside the stream or
  69-12  segment under adjudication, who disputes the preliminary
  69-13  determination may within the time for filing contests prescribed by
  69-14  the board <commission> in the notice, including any extension of
  69-15  the time, file a written contest with the board <commission>,
  69-16  stating with reasonable certainty the grounds of his contest.
  69-17        (b)  The statement filed to contest a preliminary
  69-18  determination must be verified by an affidavit of the contestant,
  69-19  his agent, or his attorney.
  69-20        (c)  If the contest is directed against the preliminary
  69-21  determination of the water rights of other claimants, a copy shall
  69-22  be served on each of these claimants or his attorney by certified
  69-23  mail, and proof of service shall be filed with the board
  69-24  <commission>.
  69-25        SECTION 70.  Section 11.314, Water Code, is amended as
   70-1  follows:
   70-2        Sec. 11.314.  Hearing on Contest; Notice
   70-3        After the time for filing contests has expired, the board
   70-4  <commission> shall prepare a notice setting forth the part of the
   70-5  preliminary determination to which each contest is directed and the
   70-6  time and place of a hearing on the contest.  The notice shall be
   70-7  sent to each claimant of water rights within the river basin in
   70-8  which the stream or segment is located, to the extent that the
   70-9  claimants can be reasonably ascertained from the records of the
  70-10  board <commission>.  The hearing shall be conducted as provided in
  70-11  Section 11.337 of this code.
  70-12        SECTION 71.  Section 11.315, Water Code, is amended as
  70-13  follows:
  70-14        Sec. 11.315.  Final Determination
  70-15        On completion of the hearings on all contests, the board
  70-16  <commission> shall make a final determination of the claims to
  70-17  water rights under adjudication.  The board <commission> shall send
  70-18  a copy of the final determination and any modification of the final
  70-19  determination to each claimant whose rights are adjudicated and to
  70-20  each contesting party.
  70-21        SECTION 72.  Section 11.316, Water Code, is amended as
  70-22  follows:
  70-23        Sec. 11.316.  Application for Rehearing
  70-24        Within 30 days from the date of the final determination, any
  70-25  affected party may apply to the board <commission> for a rehearing.
   71-1  Applications for rehearing which in the opinion of the board
   71-2  <commission> are without merit may be denied without notice to
   71-3  other parties, but no application for rehearing shall be granted
   71-4  without notice to each claimant whose rights are adjudicated and to
   71-5  each contesting party.
   71-6        SECTION 73.  Section 11.307, Water Code, is amended as
   71-7  follows:
   71-8        Sec. 11.317.  Filing Final Determination With District Court
   71-9        (a)  As soon as practicable after the disposition of all
  71-10  applications for rehearing, the board <commission> shall file a
  71-11  certified copy of the final determination, together with all
  71-12  evidence presented to or considered by the board <commission>, in a
  71-13  district court of any county in which the stream or segment under
  71-14  adjudication is located.  However, if the stream or segment under
  71-15  adjudication includes all or parts of three or more counties and if
  71-16  10 or more affected persons who appeared in the proceedings
  71-17  petition the board <commission> to do so, the board <commission>
  71-18  shall file the action in a convenient district court of a judicial
  71-19  district which is not within the river basin of the stream or
  71-20  segment under adjudication.
  71-21        (b)  The board <commission> shall obtain an order from the
  71-22  court fixing a time not less than 30 days from the date of the
  71-23  order for the filing of exceptions to the final determination and
  71-24  also fixing a time not less than 60 days from the date of the order
  71-25  for the commencement of hearings on exceptions.
   72-1        (c)  The board <commission> shall immediately give written
   72-2  notice of the court order by certified mail to all parties who
   72-3  appeared in the proceedings before the board <commission>.  The
   72-4  board <commission> shall file proof of the service with the court.
   72-5        SECTION 74.  Section 11.318, Water Code, is amended as
   72-6  follows:
   72-7        Sec. 11.318.  Exceptions to Final Determination.  (a)  Any
   72-8  affected person who appeared in the proceeding before the board
   72-9  <commission> may file exceptions to the final determination.  An
  72-10  exception must state with a reasonable degree of certainty the
  72-11  grounds for the exception and must specify the particular
  72-12  paragraphs and pages of the determination to which the exception is
  72-13  taken.
  72-14        (b)  Three copies of the exceptions shall be filed in court,
  72-15  and a copy shall be served on the board <commission>.  The board
  72-16  <commission> shall make copies of all exceptions available at a
  72-17  reasonable price, based on the cost of reproduction.
  72-18        SECTION 75.  Section 11.319, Water Code, is amended as
  72-19  follows:
  72-20        Sec. 11.319.  Hearings on Exceptions (a)  The court shall
  72-21  hear any exceptions that have been filed.  The board <commission>
  72-22  and all affected persons who appeared in the proceedings before the
  72-23  board <commission> are entitled to appear and be heard on the
  72-24  exceptions.  The court may permit other parties in interest to
  72-25  appear and be heard for good cause shown.
   73-1        (b)  The court may conduct nonjury hearings and proceedings
   73-2  at any convenient location within the state.  Actual expenses
   73-3  incurred by the court outside its judicial district shall be taxed
   73-4  as costs.
   73-5        SECTION 76.  Section 11.320, Water Code, is amended as
   73-6  follows:
   73-7        Sec. 11.320.  Scope of Judicial Review.  (a)  In passing on
   73-8  exceptions, the court shall determine all issues of law and fact
   73-9  independently of the board's <commission's> determination.  The
  73-10  substantial evidence rule shall not be used.  The court shall not
  73-11  consider any exception which was not brought to the board's
  73-12  <commission's> attention by application for rehearing.  The court
  73-13  shall not consider any issue of fact raised by an exception unless
  73-14  the record of evidence before the board <commission> reveals that
  73-15  the question was genuinely in issue before the board <commission>.
  73-16        (b)  A party in interest may demand a jury trial of any issue
  73-17  of fact, but the court may in its discretion have a separate trial
  73-18  with a separate jury of any such issue.
  73-19        (c)  The legislature declares that the provisions of this
  73-20  section are not severable from the remainder of this subchapter and
  73-21  that this subchapter would not have been passed without the
  73-22  inclusion of this section.  If this section is for any reason held
  73-23  invalid, unconstitutional, or inoperative in any way, the holding
  73-24  applies to the entire subchapter so that the entire subchapter is
  73-25  null and void.
   74-1        SECTION 77.  Section 11.321, Water Code, is amended as
   74-2  follows:
   74-3        Sec. 11.321.  Evidence
   74-4        Any exception heard by the court without a jury may be
   74-5  resolved on the record of evidence before the board <commission>,
   74-6  or the court may take additional evidence or direct that additional
   74-7  evidence be heard by the board <commission>.
   74-8        SECTION 78.  Section 11.322, Water Code, is amended as
   74-9  follows:
  74-10        Sec. 11.322.  Final Decree (a)  After the final hearing, the
  74-11  court shall enter a decree affirming or modifying the order of the
  74-12  board <commission>.
  74-13        (b)  The court may assess the costs as it deems just.
  74-14        (c)  An appeal may be taken from the decree of the court in
  74-15  the same manner and with the same effect as in other civil cases.
  74-16        (d)  The final decree in every water right adjudication is
  74-17  final and conclusive as to all existing and prior rights and claims
  74-18  to the water rights in the adjudicated stream or segment of a
  74-19  stream.  The decree is binding on all claimants to water rights
  74-20  outside the adjudicated stream or segment of a stream.
  74-21        (e)  Except for domestic and livestock purposes or rights
  74-22  subsequently acquired by permit, a water right is not recognized in
  74-23  the adjudicated stream or segment of a stream unless the right is
  74-24  included in the final decree of the court.
  74-25        SECTION 79.  Section 11.323, Water Code, is amended as
   75-1  follows:
   75-2        Sec. 11.323.  Certificate of Adjudication (a)  When a final
   75-3  determination of the rights to the waters of a stream has been made
   75-4  in accordance with the procedure provided in this subchapter and
   75-5  the time for a rehearing has expired, the board <commission> shall
   75-6  issue to each person adjudicated a water right a certificate of
   75-7  adjudication, signed by the chairman of the board and bearing the
   75-8  seal of the board <commission>.
   75-9        (b)  In the certificate, the board <commission> shall
  75-10  include:
  75-11              (1)  a reference to the final decree;
  75-12              (2)  the name and post-office address of the holder of
  75-13  the adjudicated right;
  75-14              (3)  the priority, extent, and purpose of the
  75-15  adjudicated right and, if the right is for irrigation, a
  75-16  description of the irrigated land; and
  75-17              (4)  all other information in the decree relating to
  75-18  the adjudicated right.
  75-19        SECTION 80.  Section 11.324, Water Code, is amended as
  75-20  follows:
  75-21        Sec. 11.324.  Recordation of Certificate (a)  The board
  75-22  <commission> shall transmit the certificate of adjudication or a
  75-23  true copy to the county clerk of each county in which the
  75-24  appropriation is made.
  75-25        (b)  On receipt of the recording fee from the holder of the
   76-1  certificate, the county clerk shall file and record the certificate
   76-2  in a well-bound book provided and kept for that purpose only.  The
   76-3  clerk shall index the certificate alphabetically under the name of
   76-4  the holder of the certificate of adjudication and under the name of
   76-5  the stream or source of water supply.
   76-6        (c)  When a certificate of adjudication is filed and recorded
   76-7  as provided in this section, the county clerk shall deliver the
   76-8  certificate on demand to the holder.
   76-9        SECTION 81.  Section 11.325, Water Code, is amended as
  76-10  follows:
  76-11        Sec. 11.325.  Water Divisions
  76-12        The board <commission> shall divide the state into water
  76-13  divisions for the purpose of administering adjudicated water
  76-14  rights.  Water divisions may be created from time to time as the
  76-15  necessity arises.  The divisions shall be constituted to secure the
  76-16  best protection to the holders of water rights and the most
  76-17  economical supervision on the part of the state.
  76-18        SECTION 82.  Section 11.326, Water Code, is amended as
  76-19  follows:
  76-20        Sec. 11.326.  Appointment of Watermaster (a)  The executive
  76-21  administrator <director> may appoint one watermaster for each water
  76-22  division.
  76-23        (b)  A watermaster holds office until a successor is
  76-24  appointed.  The executive administrator <director> may remove a
  76-25  watermaster at any time.
   77-1        (c)  The executive administrator <director> may employ
   77-2  assistant watermasters and other employees necessary to aid a
   77-3  watermaster in the discharge of his duties.
   77-4        (d)  In a water division in which the office of watermaster
   77-5  is vacant, the executive administrator <director> has the powers of
   77-6  a watermaster.
   77-7        (e)  The executive administrator <director> shall supervise
   77-8  and generally direct the watermaster in the performance of his
   77-9  duties.  A watermaster is responsible to the executive
  77-10  administrator <director> for the proper performance of his duties.
  77-11        (f)  A person dissatisfied with any action of a watermaster
  77-12  may apply to the executive administrator <director> for relief.
  77-13        SECTION 83.  Section 11.329, Water Code, is amended as
  77-14  follows:
  77-15        Sec. 11.329.  Compensation and Expenses of Watermaster
  77-16        (a)  The board <commission> shall pay the compensation and
  77-17  necessary expenses of a watermaster, assistant watermasters, and
  77-18  other necessary employees, but the holders of water rights that
  77-19  have been determined or adjudicated and are to be administered by
  77-20  the watermaster shall reimburse the board <commission> for the
  77-21  compensation and expenses.  Necessary expenses may include costs
  77-22  associated with streamflow measurement and monitoring, water
  77-23  accounting, assessment billing and collection, and any other duties
  77-24  a watermaster may be required to perform under this subchapter.
  77-25        (b)  After the adjudication decree becomes final, the
   78-1  executive administrator <director> shall notify each holder of
   78-2  water rights under the decree of the amount of compensation and
   78-3  expenses that will be required annually for the administration of
   78-4  the water rights so determined.
   78-5        (c)  The board <commission> shall hold a public hearing to
   78-6  determine the apportionment of the costs of administration of
   78-7  adjudicated water rights among the holders of the rights.  After a
   78-8  public hearing, the board <commission> shall issue an order
   78-9  assessing the annual cost against the holders of water rights to
  78-10  whom the water will be distributed under the final decree.  The
  78-11  board <commission> shall equitably apportion the costs.  The
  78-12  executive administrator <director> may provide for payments in
  78-13  installments and shall specify the dates by which payments shall be
  78-14  made to the board <commission>.
  78-15        (d)  The executive administrator <director> shall transmit
  78-16  all collections under this section to the State Treasurer.
  78-17        (e)  No water shall be diverted, taken, or stored by, or
  78-18  delivered to, any person while he is delinquent in the payment of
  78-19  his assessed costs.
  78-20        (f)  An order of the board <commission> assessing costs
  78-21  remains in effect until the board <commission> issues a further
  78-22  order.  The board <commission> may modify, revoke, or supersede an
  78-23  order assessing costs with a subsequent order.  The board
  78-24  <commission> may issue supplementary orders from time to time to
  78-25  apply to new diversions.
   79-1        SECTION 84.  Section 11.330, Water Code, is amended as
   79-2  follows:
   79-3        Sec. 11.330.  Outlet for Free Passage of Water.
   79-4        The owner of any works for the diversion or storage of water
   79-5  shall maintain a substantial headgate at the point of diversion, or
   79-6  a gate on each discharge pipe of pumping plant, constructed so that
   79-7  it can be locked at the proper place by the watermaster, or a
   79-8  suitable outlet in a dam to allow the free passage of water that
   79-9  the owner of the dam is not entitled to divert or impound.  The
  79-10  board <commission> shall adopt rules, and the executive
  79-11  administrator <director> shall enforce the rules, governing the
  79-12  type and location of the headgates or gates and the outlets to
  79-13  allow the free passage of water.
  79-14        SECTION 85.  Section 11.331, Water Code, is amended as
  79-15  follows:
  79-16        Sec. 11.331.  Measuring Devices
  79-17        The board <commission>, by rule, may require the owner of any
  79-18  works for the diversion, taking, storage, or distribution of water
  79-19  to construct and maintain suitable measuring devices at points that
  79-20  will enable the watermaster to determine the quantities of water to
  79-21  be diverted, taken, stored, released, or distributed in order to
  79-22  satisfy the rights of the respective users.
  79-23        SECTION 86.  Section 11.332, Water Code, is amended as
  79-24  follows:
  79-25        Sec. 11.332.  Installation of Flumes
   80-1        The board <commission>, by rule, may require flumes to be
   80-2  installed along the line of any ditch if necessary for the
   80-3  protection of water rights or other property.
   80-4        SECTION 87.  Section 11.333, Water Code, is amended as
   80-5  follows:
   80-6        Sec. 11.333.  FAILURE TO COMPLY WITH BOARD <COMMISSION> RULES
   80-7        If the owner of waterworks using state water refuses or
   80-8  neglects to comply with the rules adopted pursuant to Section
   80-9  11.330, 11.331, or 11.332 of this code, the executive administrator
  80-10  <director>, after 10 days notice or after a period of additional
  80-11  time that is reasonable under the circumstances, may direct the
  80-12  watermaster to make adjustments of the control works to prevent the
  80-13  owner of the works from diverting, taking, storing, or distributing
  80-14  any water until he has fully complied with the rules.
  80-15        SECTION 88.  Section 11.334, Water Code, is amended as
  80-16  follows:
  80-17        Sec. 11.334.  SUIT AGAINST BOARD <COMMISSION> FOR INJURY
  80-18        Any person who is injured by an act of the board <commission>
  80-19  under this subchapter may bring suit against the board <commission>
  80-20  to review the action or to obtain an injunction.  If the water
  80-21  right involved has been adjudicated as provided in this subchapter,
  80-22  the court shall issue an injunction only if it is shown that the
  80-23  board <commission> has failed to carry into effect the decree
  80-24  adjudicating the water right.
  80-25        SECTION 89.  Section 11.335, Water Code, is amended as
   81-1  follows:
   81-2        Sec. 11.335.  Administration of Water Rights No Adjudicated
   81-3        (a)  If any area in which water rights of record in the
   81-4  office of the board <commission> have not been adjudicated, the
   81-5  claimants of the rights and the board <commission> may enter into a
   81-6  written agreement for their administration.
   81-7        (b)  An agreement made under authority of this section shall
   81-8  provide:
   81-9              (1)  the basis and manner of distribution of the water
  81-10  to which the agreement relates;
  81-11              (2)  the services of a special watermaster, and
  81-12  assistants if necessary, to carry out the agreement; and
  81-13              (3)  the allocation, collection, and payment of the
  81-14  annual costs of administration.
  81-15        (c)  An agreement to administer unadjudicated water rights
  81-16  shall be recorded in the offices of the board <commission> and of
  81-17  the county clerk of each county in which any of the works or lands
  81-18  affected by the agreement are located.
  81-19        (d)  The administration of water rights by agreement is
  81-20  governed by the provisions of this subchapter except as regards
  81-21  allocation and payment of the expenses of the administration.
  81-22        (e)  No agreement authorized by this section impairs any
  81-23  vested right to the use of water or creates any additional rights
  81-24  to the use of water.
  81-25        SECTION 90.  Section 11.336, Water Code, is amended as
   82-1  follows:
   82-2        Sec. 11.336.  Administration of Permits Issued After
   82-3  Adjudication
   82-4        Permits, other than temporary permits, that are issued by the
   82-5  board <commission> to appropriate water from an adjudicated stream
   82-6  or segment are subject to administration in the same manner as is
   82-7  provided in this subchapter for adjudicated water rights.
   82-8        SECTION 91.  Section 11.337, Water Code, is amended as
   82-9  follows:
  82-10        Sec. 11.337.  Hearings:  Notice and Procedure (a)  The board
  82-11  <commission> shall give notice of a hearing or other proceeding it
  82-12  orders under this subchapter in the manner prescribed in the
  82-13  procedural rules of the board <commission>, unless this subchapter
  82-14  specifically provides otherwise.
  82-15        (b)  In any proceeding in any part of the state, the board
  82-16  <commission> may:
  82-17              (1)  take evidence, including the testimony of
  82-18  witnesses;
  82-19              (2)  administer oaths;
  82-20              (3)  issue subpoenas and compel the attendance of
  82-21  witnesses in the same manner as subpoenas are issued out of the
  82-22  courts of the state;
  82-23              (4)  compel witnesses to testify and give evidence; and
  82-24              (5)  order the taking of depositions and issue board
  82-25  <commission>s for the taking of depositions in the same manner as
   83-1  depositions are obtained in civil actions.
   83-2        (c)  Evidence may be taken by a duly appointed reporter
   83-3  before the board <commission> or before an authorized
   83-4  representative who has the power to administer oaths.
   83-5        (d)  If a person neglects or refuses to comply with an order
   83-6  or subpoena issued by the board <commission> or refuses to testify
   83-7  on any matter about which he may be lawfully interrogated, the
   83-8  board <commission> may apply to a district court of the county in
   83-9  which the proceeding is held to punish him in the manner provided
  83-10  by law for such disobedience in civil actions.
  83-11        (e)  The board <commission> may adjourn its proceedings from
  83-12  time to time and from place to place.
  83-13        (f)  When a proceeding before the board <commission> is
  83-14  concluded, the board <commission> shall render a decision as to the
  83-15  matters concerning which the proceeding was held.
  83-16        SECTION 92.  Section 11.338, Water Code, is amended as
  83-17  follows:
  83-18        Sec. 11.338.  Cancellation of Water Rights
  83-19        Nothing in this subchapter recognizes any abandoned or
  83-20  cancelled water right or impairs in any way the power of the board
  83-21  <commission> under general law to forfeit, cancel, or find
  83-22  abandoned any water right, including adjudicated water rights.
  83-23        SECTION 93.  Section 11.340, Water Code, is amended as
  83-24  follows:
  83-25        Sec. 11.340.  Abatement of Certain Civil Suits (a)  Nothing
   84-1  in this subchapter prevents or precludes a person who claims the
   84-2  right to divert water from a stream from filing and prosecuting to
   84-3  a conclusion a suit against other claimants of the right to divert
   84-4  or use water from the same stream.  However, if the board
   84-5  <commission> has ordered a determination of water rights as
   84-6  provided in this subchapter or if the board <commission> orders
   84-7  such a determination within 90 days after notice of the filing of a
   84-8  suit, the suit shall be abated on the motion of the board
   84-9  <commission> or any party in interest as to any issues involved in
  84-10  the water rights determination.
  84-11        SECTION 94.  The title of Subchapter I, Water Code, is
  84-12  amended as follows:
  84-13        SUBCHAPTER I.  BOARD <COMMISSION>-APPOINTED WATERMASTER
  84-14        SECTION 95.  Section 11.451, Water Code, is amended as
  84-15  follows:
  84-16        Sec. 11.451.  BOARD <COMMISSION> AUTHORITY
  84-17        On petition of 25 or more holders of water rights in a river
  84-18  basin or segment of a river basin or on its own motion the board
  84-19  <commission> may authorize the executive administrator <director>
  84-20  to appoint a watermaster for a river basin or segment of a river
  84-21  basin if the board <commission> finds that the rights of senior
  84-22  water rights holders in the basin or segment of the basin are
  84-23  threatened.
  84-24        SECTION 96.  Section 11.452, Water Code, is amended as
  84-25  follows:
   85-1        Sec. 11.452.  Procedure for Determination (a)  On receiving a
   85-2  petition for appointment of a watermaster or on its own motion, the
   85-3  board <commission> shall call and hold a hearing to determine if a
   85-4  need exists for appointment of a watermaster for the river basin or
   85-5  segment of the river basin.
   85-6        (b)  At the hearing persons who hold water rights in the
   85-7  river basin or segment of the river basin may appear before the
   85-8  board <commission> and submit testimony and evidence relating to
   85-9  the need for appointment of a watermaster.
  85-10        (c)  After the hearing, the board <commission> shall make a
  85-11  written determination as to whether a threat exists to the rights
  85-12  of senior water rights holders in the river basin or segment of the
  85-13  river basin and shall issue an order either finding that a threat
  85-14  exists and directing appointment of a watermaster or denying
  85-15  appointment of a watermaster.
  85-16        SECTION 97.  Section 11.453, Water Code, is amended as
  85-17  follows:
  85-18        Sec. 11.453.  Appointment of Watermaster (a)  On issuance of
  85-19  an order under Section 11.452 of this chapter directing appointment
  85-20  of a watermaster, the executive administrator <director> shall
  85-21  appoint a watermaster for the river basin or segment of the river
  85-22  basin covered by the board <commission> order.
  85-23        (b)  A person appointed as a watermaster under this section
  85-24  may not be:
  85-25              (1)  the holder of a water right in the river basin or
   86-1  segment of the river basin to be under his jurisdiction as
   86-2  watermaster;
   86-3              (2)  a purchaser of water from the holder of a water
   86-4  right in the river basin or segment of the river basin under his
   86-5  jurisdiction as watermaster; or
   86-6              (3)  a landowner of any land adjacent to the river or
   86-7  segment of the river under his jurisdiction as watermaster.
   86-8        (c)  A watermaster holds office until a successor is
   86-9  appointed.  The executive administrator <director> may remove a
  86-10  watermaster at any time.
  86-11        (d)  The executive administrator <director> may employ
  86-12  assistant watermasters and other employees necessary to aid a
  86-13  watermaster in the discharge of his duties.
  86-14        (e)  In a segment or basin in which the office of watermaster
  86-15  is vacant, the executive administrator <director> has the powers of
  86-16  a watermaster.
  86-17        (f)  The executive administrator <director> shall supervise
  86-18  and generally direct the watermaster in the performance of his
  86-19  duties.  A watermaster is responsible to the executive
  86-20  administrator <director> for the proper performance of his duties.
  86-21        (g)  A person dissatisfied with any action of a watermaster
  86-22  may apply to the executive administrator <director> for relief.
  86-23        SECTION 98.  Section 11.454, Water Code, is amended as
  86-24  follows:
  86-25        Sec. 11.454.  Duties and Authority of the Watermaster
   87-1        A watermaster as the agent of the board <commission> and
   87-2  under the executive administrator's <director's> supervision shall:
   87-3              (1)  divide the water of the streams or other sources
   87-4  of supply of his segment or basin in accordance with the authorized
   87-5  water rights;
   87-6              (2)  regulate or cause to be regulated the controlling
   87-7  works of reservoirs and diversion works in time of water shortage,
   87-8  as is necessary because of the rights existing in the streams of
   87-9  his segment or basin, or as is necessary to prevent the waste of
  87-10  water or its diversion, taking, storage, or use in excess of the
  87-11  quantities to which the holders of water rights are lawfully
  87-12  entitled; and
  87-13              (3)  perform any other duties and exercise any
  87-14  authority directed by the board <commission>.
  87-15        SECTION 99.  Section 11.455, Water Code, is amended as
  87-16  follows:
  87-17        Sec. 11.455.  Assessments The board <commission> may assess
  87-18  the costs of the watermaster against all persons who hold water
  87-19  rights in the river basin or segment of the river basin under the
  87-20  watermaster's jurisdiction in accordance with Section 11.329 of
  87-21  this code.
  87-22        SECTION 100.  Section 11.456, Water Code, is amended as
  87-23  follows:
  87-24        Sec. 11.456.  Maintaining Current Status (a)  To protect
  87-25  water rights holders in a river basin or segment of a river basin
   88-1  during the proceedings under Section 11.452 of this code, the board
   88-2  <commission> may issue an order or orders at the beginning of the
   88-3  proceedings under Section 11.452 of this code or may request the
   88-4  attorney general to seek injunctive relief to protect the water
   88-5  rights holders during the proceedings.
   88-6        (b)  On request of the board <commission>, the attorney
   88-7  general shall seek injunctive relief to carry out the purpose of
   88-8  Subsection (a) of this section.
   88-9        (c)  The board <commission> is not required to comply with
  88-10  the requirements of the Administrative Procedure and Texas Register
  88-11  Act (Article 6252-13a, Vernon's Texas Civil Statutes) in issuing
  88-12  orders under Subsection (a) of this section and there is no right
  88-13  of appeal from those orders.
  88-14        SECTION 101.  Section 11.457, Water Code, is amended as
  88-15  follows:
  88-16        Sec. 11.457.  Assistance to Watermaster
  88-17        The executive administrator <director> shall provide the
  88-18  watermaster with such staff and facilities as are necessary to
  88-19  carry out this subchapter.
  88-20        SECTION 102.  Section 12.011, Water Code, is amended as
  88-21  follows:
  88-22        Sec. 12.011.  Permit Applications
  88-23        The board <commission> shall receive, administer, and act on
  88-24  all applications for permits and permit amendments:
  88-25              (1)  to appropriate public water for beneficial use or
   89-1  storage; or
   89-2              (2)  to construct works for the impoundment, storage,
   89-3  diversion, or transportation of public water.
   89-4        SECTION 103.  Section 12.012, Water Code, is amended as
   89-5  follows:
   89-6        Sec. 12.012.  Evaluation of Outstanding Permits
   89-7        The board <commission> shall actively and continually
   89-8  evaluate outstanding permits and certified filings and shall carry
   89-9  out measures to cancel wholly or partially the certified filings
  89-10  and permits that are subject to cancellation.
  89-11        SECTION 104.  Section 12.013, Water Code, is amended as
  89-12  follows:
  89-13        Sec. 12.013.  Rate-Fixing Power (a)  The board <commission>
  89-14  shall fix reasonable rates for the furnishing of raw or treated
  89-15  water for any purpose mentioned in Chapter 11 or 12 of this code.
  89-16        (b)  The term "political subdivision" when used in this
  89-17  section means incorporated cities, towns or villages, counties,
  89-18  river authorities, water districts, and other special purpose
  89-19  districts.
  89-20        (c)  The board <commission> in reviewing and fixing
  89-21  reasonable rates for furnishing water under this section may use
  89-22  any reasonable basis for fixing rates as may be determined by the
  89-23  board <commission> to be appropriate under the circumstances of the
  89-24  case being reviewed; provided, however, the board <commission> may
  89-25  not fix a rate which a political subdivision may charge for
   90-1  furnishing water which is less than the amount required to meet the
   90-2  debt service and bond coverage requirements of that political
   90-3  subdivision's outstanding debt.
   90-4        (d)  The board's <commission's> jurisdiction under this
   90-5  section relating to incorporated cities, towns, or villages shall
   90-6  be limited to water furnished by such city, town, or village to
   90-7  another political subdivision on a wholesale basis.
   90-8        (e)  The board <commission> may establish interim rates and
   90-9  compel continuing service during the pendency of any rate
  90-10  proceeding.
  90-11        (f)  The board <commission> may order a refund or assess
  90-12  additional charges from the date a petition for rate review is
  90-13  received by the board <commission> of the difference between the
  90-14  rate actually charged and the rate fixed by the board <commission>,
  90-15  plus interest at the statutory rate.
  90-16        (g)  No action or proceeding commenced prior to January 1,
  90-17  1977, before the Texas Water Rights Commission shall be affected by
  90-18  the enactment of this section.
  90-19        (h)  Nothing herein contained shall affect the jurisdiction
  90-20  of the Public Utility Commission.
  90-21        SECTION 105.  Section 12.014, Water Code, is amended as
  90-22  follows:
  90-23        Sec. 12.014.  USE OF BOARD <COMMISSION> SURVEYS; POLICY
  90-24        The board <commission> shall make use of surveys, studies,
  90-25  and investigations conducted by the staff of the board <commission>
   91-1  in order to ascertain the character of the principal requirements
   91-2  of the district regional division of the watershed areas of the
   91-3  state for beneficial uses of water, to the end that distribution of
   91-4  the right to take and use state water may be more equitably
   91-5  administered in the public interest, that privileges granted for
   91-6  recognized uses may be economically coordinated so as to achieve
   91-7  the maximum of public value from the state's water resources, and
   91-8  that the distinct regional necessities for water control and
   91-9  conservation and for control of harmful floods may be recognized.
  91-10        SECTION 106.  (a)  The powers, duties and administrative
  91-11  responsibilities delegated to the Texas Water Commission under
  91-12  Subchapter I of Title 2 of the Texas Water Code are transferred to
  91-13  the Texas Water Development Board.
  91-14        (b)  All references to the Texas Water Commission in
  91-15  Subchapter I of Title 2 of the Texas Water Code are deemed to be
  91-16  references to the Texas Water Development Board.
  91-17        SECTION 107.  (a)  The powers, duties and administrative
  91-18  responsibilities delegated to the Texas Water Commission under
  91-19  Chapters 50 through 56 of the Texas Water Code are transferred to
  91-20  the Texas Water Development Board.
  91-21        (b)  All references to the Texas Water Commission in Chapters
  91-22  50 through 56 of the Texas Water Code are deemed to be references
  91-23  to the Texas Water Development Board.
  91-24        SECTION 108.  The importance of this legislation and the
  91-25  crowded condition of the calendars in both houses create an
   92-1  emergency and an imperative public necessity that the
   92-2  constitutional rule requiring bills to be read on three several
   92-3  days in each house be suspended, and this rule is hereby suspended.