By Henderson                                          S.B. No. 1576
       74R7999 KKA-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the powers, duties, and operation of the
    1-3  Harris-Galveston Coastal Subsidence District.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 151.002, Water Code, is amended to read
    1-6  as follows:
    1-7        Sec. 151.002.  Definitions.  In this chapter:
    1-8              (1)  "Board" means the board of directors of the
    1-9  district.
   1-10              (2)  "Commission" means the Texas Natural Resource
   1-11  Conservation Commission.
   1-12              (3)  "District" means the Harris-Galveston Coastal
   1-13  Subsidence District.
   1-14              (4)  "Drill" means drilling, equipping, or completing
   1-15  wells or substantially altering the size of wells or well pumps.
   1-16              (5)  "Groundwater" means water located beneath the
   1-17  earth's surface, but does not include water produced with oil in
   1-18  the production of oil and gas.
   1-19              (6)  "Groundwater-withdrawal year" means the period
   1-20  beginning January 1 of one year and ending December 31 of that same
   1-21  year.
   1-22              (7)  "Harmful subsidence" means subsidence that:
   1-23                    (A)  contributes to flooding, inundation, or
   1-24  overflow of the district; and
    2-1                    (B)  poses an economic threat to property in the
    2-2  district.
    2-3              (8) <(7)>  "Subsidence" means the lowering in elevation
    2-4  of the surface of land by the withdrawal of groundwater.
    2-5              (9) <(8)>  "Water conservation" means any measure that
    2-6  seeks to make a water supply available for alternative or future
    2-7  uses, including best management practices, reduction in
    2-8  consumption, reduction in loss or waste, improved efficiency or
    2-9  accountability, recycling, reuse, or pollution prevention.
   2-10              (10) <(9)>  "Well" means a facility, device, or method
   2-11  used to withdraw groundwater from the groundwater supply within the
   2-12  district.
   2-13              (11) <(10)>  "Well owner" means a person who has an
   2-14  ownership interest in a well, owns land on which a well is located,
   2-15  owns the water withdrawn or to be withdrawn from a well, or
   2-16  operates a well.
   2-17              (12) <(11)>  "Withdraw" means the act of extracting
   2-18  groundwater by pumping or some other method.
   2-19        SECTION 2.  Section 151.004(a), Water Code, is amended to
   2-20  read as follows:
   2-21        (a)  The purpose of this chapter is to provide for the
   2-22  regulation of the withdrawal of groundwater within the boundaries
   2-23  of the district for the purpose of ending harmful subsidence, which
   2-24  is found to contribute <contributes> to or precipitate
   2-25  <precipitates> flooding, inundation, or overflow of the district,
   2-26  including without limitation rising waters resulting from storms or
   2-27  hurricanes.
    3-1        SECTION 3.  Section 151.031, Water Code, is amended by
    3-2  amending Subsections (a) and (b) and adding Subsections (d) and (e)
    3-3  to read as follows:
    3-4        (a)  The district is governed by a board of directors
    3-5  composed of 21 <17> members who serve for two-year, staggered
    3-6  terms.
    3-7        (b)  The board consists of:
    3-8              (1)  six members from the city in the district having
    3-9  the largest population of any city in the district, to be appointed
   3-10  by the mayor of that city, one of these members to be a
   3-11  representative of industry;
   3-12              (2)  one member from the city in the district having
   3-13  the next largest population of any city in the district, to be
   3-14  appointed by the mayor of that city;
   3-15              (3)  two members from all incorporated cities in
   3-16  Galveston County, appointed by the mayors of those cities;
   3-17              (4)  one member from the city of Baytown, appointed by
   3-18  the mayor of that city;
   3-19              (5)  two members appointed by the commissioners court
   3-20  of Harris County, one to be a representative of agriculture and one
   3-21  to be a representative of industry, provided that neither of these
   3-22  members is a resident of the city in the district having the
   3-23  largest population;
   3-24              (6)  two members appointed by the commissioners court
   3-25  of Galveston County;
   3-26              (7)  one member from Harris County chosen by the mayors
   3-27  of the cities of Deer Park, Galena Park, La Porte, Nassau Bay, and
    4-1  Seabrook and the president of the Clear Lake City Water Authority;
    4-2              (8)  one member from Harris County chosen by the mayors
    4-3  of the cities of West University Place, Southside Place, Bellaire,
    4-4  and Jacinto City; <and>
    4-5              (9)  one member from Harris County chosen by the mayors
    4-6  of the cities of Humble, Piney Point Village, Hedwig Village,
    4-7  Bunker Hill Village, Hunters Creek Village, Hilshire Village, and
    4-8  the village of Spring Valley;
    4-9              (10)  one member from Harris County serving on the
   4-10  board of directors of a water district located in Regulatory Area 4
   4-11  of the district, chosen by the governing boards of the water
   4-12  districts located in Regulatory Area 4;
   4-13              (11)  one member from Harris County serving on the
   4-14  board of directors of a water district located in Regulatory Area 5
   4-15  of the district, chosen by the governing boards of the water
   4-16  districts located in Regulatory Area 5;
   4-17              (12)  one member from Harris County serving on the
   4-18  board of directors of a water district located in Regulatory Area 6
   4-19  of the district, chosen by the governing boards of the water
   4-20  districts located in Regulatory Area 6; and
   4-21              (13)  one member from Harris County serving on the
   4-22  board of directors of a water district located in Regulatory Area 7
   4-23  of the district, chosen by the governing boards of the water
   4-24  districts located in Regulatory Area 7.
   4-25        (d)  Members of the board who represent water districts shall
   4-26  be elected in the following manner:
   4-27              (1)  each governing board of a water district entitled
    5-1  to vote under Subsections (b)(10)-(12) may nominate a candidate for
    5-2  election to the board;
    5-3              (2)  the president of each water district that
    5-4  nominates a candidate shall submit the candidate's name to the
    5-5  district's executive director not later than September 15 of each
    5-6  odd-numbered year;
    5-7              (3)  the district's executive director shall:
    5-8                    (A)  not later than October 1 of each
    5-9  odd-numbered year, prepare a ballot listing each nominated
   5-10  candidate alphabetically and arranged according to regulatory areas
   5-11  from which the candidates are nominated; and
   5-12                    (B)  not later than October 15 of each
   5-13  odd-numbered year, deliver a copy of the ballot to each governing
   5-14  board of a water district entitled to vote;
   5-15              (4)  each governing board of a water district entitled
   5-16  to vote shall, not later than November 30 of each odd-numbered
   5-17  year, determine its vote by resolution and submit its vote to the
   5-18  district's executive director; and
   5-19              (5)  the board of directors of the district shall, not
   5-20  later than December 15 of each odd-numbered year, canvass the
   5-21  results and announce the candidates elected to the board.
   5-22        (e)  The term of office for each board member who represents
   5-23  water districts under Subsections (b)(10)-(13) runs from January 1
   5-24  of the even-numbered year beginning after the member's election
   5-25  through December 31 of the following year.
   5-26        SECTION 4.  Section 151.071, Water Code, is amended by adding
   5-27  Subsections (c) and (d) to read as follows:
    6-1        (c)  In adopting rules, the board shall comply with Chapter
    6-2  2001, Government Code.
    6-3        (d)  A person may bring suit for a declaratory judgment that
    6-4  a district rule or the threatened application of a district rule
    6-5  interferes with, impairs, or threatens to interfere with or impair
    6-6  a legal right or privilege of the person.   The suit must be filed
    6-7  in a district court in Harris County or Galveston County.  The
    6-8  court may render a declaratory judgment under this subsection
    6-9  regardless of whether the person has exhausted administrative
   6-10  remedies.
   6-11        SECTION 5.  Section 151.072(a), Water Code, is amended to
   6-12  read as follows:
   6-13        (a)  Board hearings shall be conducted as provided by this
   6-14  section.  Hearings are governed by Chapter 2001, Government Code
   6-15  <the open meetings law, Chapter 271, Acts of the 60th Legislature,
   6-16  Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil
   6-17  Statutes)>.  Except as provided by this section, notice of hearings
   6-18  shall be provided according to that law.
   6-19        SECTION 6.  Section 151.074(a), Water Code, is amended to
   6-20  read as follows:
   6-21        (a)  The board shall formulate a plan to control and prevent
   6-22  harmful subsidence in the district.  The plan may <shall>
   6-23  accomplish that purpose by reducing groundwater withdrawals to
   6-24  amounts that will restore and maintain sufficient artesian pressure
   6-25  to control and prevent harmful subsidence.
   6-26        SECTION 7.  Sections 151.075(a), (c), and (d), Water Code,
   6-27  are amended to read as follows:
    7-1        (a)  Included in the information to be gathered for
    7-2  formulation of the plan shall be:
    7-3              (1)  a list of all wells in the district that are
    7-4  subject to regulation under this chapter;
    7-5              (2)  an accurate estimate of groundwater production
    7-6  from all wells or proposed wells in the district;
    7-7              (3)  an accurate estimate of the amount of groundwater
    7-8  that may be produced from each area in the district without causing
    7-9  reduction of artesian pressure that will lead to harmful subsidence
   7-10  in the district;
   7-11              (4)  an accurate estimate of the current and future
   7-12  water needs in the district;
   7-13              (5)  a list of all available sources of water, other
   7-14  than groundwater, in the area of the district;
   7-15              (6)  the purposes for which the water is currently used
   7-16  and for which it is proposed to be used in the future;
   7-17              (7)  information relating to formulation of a permit
   7-18  system; and
   7-19              (8)  other necessary information and material to carry
   7-20  out the management of groundwater in the district and to
   7-21  effectively and expeditiously accomplish the purposes of this
   7-22  chapter.
   7-23        (c)  After the hearing, the board shall make any changes to
   7-24  the plan the board <it> considers necessary according to evidence
   7-25  and material presented at the hearing.  The board <and> shall adopt
   7-26  the plan if the board finds that:
   7-27              (1)  harmful subsidence is occurring in the district;
    8-1              (2)  the plan is necessary to prevent harmful
    8-2  subsidence in the district;
    8-3              (3)  the plan will benefit all of the property in the
    8-4  district; and
    8-5              (4)  the plan will not impose an economic hardship on a
    8-6  person who owns property in the district or who holds a permit to
    8-7  drill or operate a well in the district.
    8-8        (d)  The plan adopted under this section may be amended or
    8-9  repealed and a new plan adopted as provided in this section for the
   8-10  adoption of the original plan.  A plan, once adopted, remains in
   8-11  effect for five years or until the adoption of a new plan,
   8-12  whichever occurs first.
   8-13        SECTION 8.  Sections 151.078 and 151.081, Water Code, are
   8-14  amended to read as follows:
   8-15        Sec. 151.078.  Regulation of Spacing and Production.  (a)  To
   8-16  minimize as far as practicable the drawdown of the water table and
   8-17  the reduction of artesian pressure and to control and prevent
   8-18  harmful subsidence, the board may provide for the spacing of wells
   8-19  and may regulate the production of groundwater from the wells,
   8-20  taking into consideration, among other relevant factors, the
   8-21  economic impact on well owners and the resulting effect on harmful
   8-22  subsidence.
   8-23        (b)  Before issuing an order or rule under this section, the
   8-24  board shall set a hearing on the proposed order or rule and shall
   8-25  issue notice of the hearing to:
   8-26              (1)  each person holding a permit to drill or operate a
   8-27  well in the district; and
    9-1              (2)  each other person that the board reasonably
    9-2  believes to have an interest in the hearing.
    9-3        Sec. 151.081.  Monitoring and Supervision by District.  The
    9-4  district may use subsidence compaction monitors, water-level
    9-5  observation wells, and other materials and equipment to determine
    9-6  the amount of groundwater that may be produced while at the same
    9-7  time allowing the rebound and stabilization of groundwater to a
    9-8  level that will halt harmful subsidence.
    9-9        SECTION 9.  Section 151.124(b), Water Code, is amended to
   9-10  read as follows:
   9-11        (b)  The application must state:
   9-12              (1)  the name of the person requesting the permit;
   9-13              (2)  the address of the person requesting the permit;
   9-14              (3)  the location and wellhead elevation of the well or
   9-15  proposed well;
   9-16              (4)  the amount of water being produced or proposed to
   9-17  be produced; and
   9-18              (5)  any other information necessary for the board to
   9-19  control and prevent harmful subsidence in the district.
   9-20        SECTION 10.  Section 151.125(b), Water Code, is amended to
   9-21  read as follows:
   9-22        (b)  Notice of the date, time, and location of the hearing
   9-23  shall be given by the board to the applicant by certified mail,
   9-24  return receipt requested, and in accordance with Chapter 2001,
   9-25  Government Code <the open meetings law, Chapter 271, Acts of the
   9-26  60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's
   9-27  Texas Civil Statutes)>.
   10-1        SECTION 11.  Sections 151.126(b) and (e), Water Code, are
   10-2  amended to read as follows:
   10-3        (b)  In deciding whether or not to issue a permit and in
   10-4  setting the terms of the permit, the board shall consider, along
   10-5  with the purpose of this chapter and all other relevant factors:
   10-6              (1)  the district plan;
   10-7              (2)  the quality, quantity, and availability of surface
   10-8  water at prices competitive with those charged by suppliers of
   10-9  surface water in the district;
  10-10              (3)  the economic impact on the applicant from grant or
  10-11  denial of the permit, or the terms prescribed by a permit, in
  10-12  relation to the effect on harmful subsidence that would result; and
  10-13              (4)  the applicant's use of water conservation
  10-14  measures.
  10-15        (e)  The permit shall include:
  10-16              (1)  the name and address of the person to whom the
  10-17  permit is issued;
  10-18              (2)  the location of the well;
  10-19              (3)  the date the permit is to expire;
  10-20              (4)  conditions and restrictions placed on the
  10-21  withdrawal of groundwater; and
  10-22              (5)  other terms and conditions necessary to control
  10-23  and prevent harmful subsidence.
  10-24        SECTION 12.  Sections 151.128(b), (d), and (e), Water Code,
  10-25  are amended to read as follows:
  10-26        (b)  The rate of the fee to be collected by the board under
  10-27  this section shall be determined by the board after a hearing.  The
   11-1  rate of the fee may not exceed 110 percent of the fee charged by
   11-2  the district during the previous year <highest rate charged by the
   11-3  city of Houston for surface water supplied to its customers in the
   11-4  district>.
   11-5        (d)  Using information prepared by the United States
   11-6  Geological Survey, which shall be presumed correct, the board, at a
   11-7  hearing held in accordance with Section 151.072 of this code, shall
   11-8  calculate and determine the difference between water wells pumped
   11-9  for irrigation of agricultural crops and water wells pumped for
  11-10  other purposes in terms of their relative contribution to harmful
  11-11  subsidence, expressed as a percentage.  The rate of the fee for
  11-12  wells used for irrigation of agricultural crops shall be sufficient
  11-13  for the total of those fees to contribute to the fee revenue of the
  11-14  district the same percentage as the agricultural use contributes to
  11-15  harmful subsidence.
  11-16        (e)  The <funds obtained from the> permit fees collected
  11-17  under this section may not exceed the amount necessary <shall be
  11-18  used> to cover the reasonable operating costs of the board in
  11-19  issuing permits and performing other regulatory functions of the
  11-20  district.
  11-21        SECTION 13.  Section 151.129, Water Code, is amended to read
  11-22  as follows:
  11-23        Sec. 151.129.  Limitations on Conversion to Surface Water.
  11-24  (a)  The board may not issue an order requiring a person to
  11-25  completely or partially discontinue the use of groundwater unless
  11-26  the board finds, after notice and hearing, that:
  11-27              (1)  the order is necessary to reduce harmful
   12-1  subsidence;
   12-2              (2)  the person is economically able to acquire a water
   12-3  supply that is composed of surface water needed to replace the
   12-4  water supply covered by the order; and
   12-5              (3)  a cost-benefit analysis shows that the benefits of
   12-6  the order exceed the costs of complying with the order.
   12-7        (b)  This section does not limit the board's authority to
   12-8  issue orders and rules requiring a person to reduce groundwater use
   12-9  by eliminating waste or implementing water conservation.
  12-10        (c) <(b)>  If the person covered by an order under this
  12-11  section acquires an alternative water supply to fulfill the needs
  12-12  created by the board's order under this section and files with the
  12-13  commission a written request for monitoring of the alternative
  12-14  supply, the commission shall monitor annually from the date of
  12-15  request to the expiration of the annual permit the water delivered
  12-16  to the person covered by the order to determine the percentage of
  12-17  that water that is surface water and the percentage of that water
  12-18  that is groundwater.
  12-19        (d) <(c)>  The water deliveries must be monitored at random
  12-20  times at all points of connection between the purchaser's and
  12-21  seller's water systems.  Samples taken through monitoring must be
  12-22  analyzed by water chemists employed by or contracting with the
  12-23  commission.  The water chemist making each analysis shall issue a
  12-24  certified written analysis of the percentages of surface water and
  12-25  groundwater included in the sample.
  12-26        (e) <(d)>  Not later than the 15th day after the last day of
  12-27  each permit year, the commission shall issue an annual certified
   13-1  written analysis based on all of the samples collected that will
   13-2  state the annual average percentage of surface water and the annual
   13-3  average percentage of groundwater provided to the purchaser by the
   13-4  seller for that permit year.  In addition to the percentage of
   13-5  groundwater authorized to be used by the board's order, the person
   13-6  may use in the current permit year an additional percentage of
   13-7  groundwater that is equal to a percentage derived by multiplying
   13-8  the annual average percentage of groundwater delivered to that
   13-9  person during the preceding permit year by the total percentage of
  13-10  alternative water supply mandated by the board's order for the
  13-11  current year.
  13-12        (f) <(e)>  The commission shall assess reasonable fees to
  13-13  cover the costs of the water sampling and analysis, one-half to the
  13-14  water purchaser and one-half to the water seller.  On request, the
  13-15  commission shall make results of the analysis available to the
  13-16  purchaser, the seller, or the board.
  13-17        (g) <(f)>  In this section, "alternative water supply" means
  13-18  a water supply that it is necessary for the person to acquire from
  13-19  sources other than the person's own groundwater supply to comply
  13-20  with the board's order.
  13-21        SECTION 14.  Sections 151.162(a) and (c), Water Code, are
  13-22  amended to read as follows:
  13-23        (a)  A rule, order, or other official action of the district
  13-24  under this chapter may be appealed to a district court in any
  13-25  county in the district by a person who is adversely affected.  An
  13-26  appeal under this section must be filed within 45 days after the
  13-27  rule, order, or other official action appealed from is final
   14-1  <adopted or taken>.
   14-2        (c)  The review on appeal under this section is by trial de
   14-3  novo <is governed by the substantial evidence rule as defined by
   14-4  Section 19(e), Administrative Procedure and Texas Register Act
   14-5  (Article 6252-13a, Vernon's Texas Civil Statutes)>.
   14-6        SECTION 15.  The Harris-Galveston Coastal Subsidence District
   14-7  is governed by a board of directors composed of 17 members until
   14-8  the four additional members required by Section 151.031, Water
   14-9  Code, as amended by this Act, are elected and have qualified for
  14-10  office.
  14-11        SECTION 16.  The importance of this legislation and the
  14-12  crowded condition of the calendars in both houses create an
  14-13  emergency and an imperative public necessity that the
  14-14  constitutional rule requiring bills to be read on three several
  14-15  days in each house be suspended, and this rule is hereby suspended,
  14-16  and that this Act take effect and be in force from and after its
  14-17  passage, and it is so enacted.