By: Brown, et al. S.B. No. 1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the development and management of the water resources
1-2 of the state; providing penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 ARTICLE 1. WATER PLANNING: DROUGHT, CONSERVATION,
1-5 DEVELOPMENT, AND MANAGEMENT
1-6 SECTION 1.01. Section 16.051, Water Code, is amended to read
1-7 as follows:
1-8 Sec. 16.051. STATE WATER PLAN: DROUGHT, CONSERVATION,
1-9 DEVELOPMENT, AND MANAGEMENT; EFFECT OF PLAN. (a) No later than
1-10 September 1, 2001, and every five years thereafter, the board [The
1-11 executive administrator] shall adopt [prepare, develop, and
1-12 formulate] a comprehensive state water plan that incorporates the
1-13 regional water plans approved under Section 16.053 of this code.
1-14 The state water plan shall provide for the orderly development,
1-15 management, and conservation of water resources and preparation for
1-16 and response to drought conditions, in order that sufficient water
1-17 will be available at a reasonable cost to ensure public health,
1-18 safety, and welfare; further economic development; and protect the
1-19 agricultural and natural resources of the entire state.
1-20 (b) The state water plan, as formally adopted by the board,
1-21 shall be a guide to state water policy. The commission shall take
1-22 the plan into consideration in matters coming before it. Nothing
1-23 in the state water plan or any amendment or modification of the
2-1 plan affects any vested right existing before August 30, 1965.
2-2 (c) The board by rule [plan] shall define and designate
2-3 river basins and watersheds.
2-4 (d) The board, in coordination with the commission and the
2-5 Parks and Wildlife Department, shall adopt by rule guidance
2-6 principles for the state water plan which reflect the public
2-7 interest of the entire state. When adopting guidance principles,
2-8 due consideration shall be given to the construction and
2-9 improvement of surface water resources and the application of
2-10 principles that result in voluntary redistribution of water
2-11 resources.
2-12 (e) On adoption the board shall deliver the state water plan
2-13 to the governor, the lieutenant governor, and the speaker of the
2-14 house of representatives and present the plan for review to the
2-15 appropriate legislative committees. The plan shall include
2-16 legislative recommendations that the board believes are needed and
2-17 desirable to facilitate more voluntary water transfers. [(c) The
2-18 executive administrator shall be governed in his preparation of the
2-19 plan by a regard for the public interest of the entire state. The
2-20 executive administrator shall direct his efforts toward the orderly
2-21 development and management of water resources in order that
2-22 sufficient water will be available at a reasonable cost to further
2-23 the economic development of the entire state.]
2-24 [(d) The executive administrator shall also give
2-25 consideration in the plan to the effect of upstream development on
3-1 the bays, estuaries, and arms of the Gulf of Mexico and to the
3-2 effect of the plan on navigation.]
3-3 SECTION 1.02. Sections 16.053 through 16.057, Water Code,
3-4 are amended to read as follows:
3-5 Sec. 16.053. REGIONAL WATER PLANS. (a) The regional water
3-6 planning group in each regional water planning area shall prepare a
3-7 regional water plan, using an existing state water plan identified
3-8 in Section 16.051 of this code as a guide, if one is present, that
3-9 provides for the orderly development, management, and conservation
3-10 of water resources and preparation for and response to drought
3-11 conditions in order that sufficient water will be available at a
3-12 reasonable cost to ensure public health, safety, and welfare;
3-13 further economic development; and protect the agricultural and
3-14 natural resources of that particular region.
3-15 (b) No later than September 1, 1998, the board shall
3-16 designate the areas for which regional water plans shall be
3-17 developed, taking into consideration such factors as river basin
3-18 and aquifer delineations, water utility development patterns,
3-19 socioeconomic characteristics, existing regional water planning
3-20 areas, political subdivision boundaries, public comment, and other
3-21 factors the board deems relevant. The board shall review and
3-22 update the designations as necessary but at least every five years.
3-23 (c) No later than 60 days after the designation of the
3-24 regions under Subsection (b) of this section, the board shall
3-25 designate representatives within each regional water planning area
4-1 to serve as the initial coordinating body for planning. The
4-2 initial coordinating body shall then designate additional
4-3 representatives to serve on the regional water planning group,
4-4 ensuring adequate representation from the interests comprising that
4-5 region, including but not limited to the public, counties,
4-6 municipalities, industries, agricultural interests, environmental
4-7 interests, small businesses, electric generating utilities, river
4-8 authorities, water districts, and water utilities.
4-9 (d) The board shall provide guidelines for the consideration
4-10 of existing regional planning efforts by regional water planning
4-11 groups. The board shall provide guidelines for the format in which
4-12 information shall be presented in the regional water plans.
4-13 Nothing in the initial planning effort shall prevent development of
4-14 a management plan or project where local or regional needs require
4-15 action prior to completion of the initial regional water plan under
4-16 this section.
4-17 (e) Each regional water planning group shall submit to the
4-18 board a regional water plan that:
4-19 (1) is consistent with the guidance principles for the
4-20 state water plan adopted by the board under Section 16.051(d) of
4-21 this code;
4-22 (2) provides information based on data provided or
4-23 approved by the board in a format consistent with the guidelines
4-24 provided by the board under Subsection (d) of this section;
4-25 (3) has specific provisions for water management
5-1 strategies to be used: during a drought of record; when flows are
5-2 at 75 percent of normal; and when flows are at 50 percent of
5-3 normal; and
5-4 (4) includes but is not limited to consideration of
5-5 the following:
5-6 (A) any existing water or drought planning
5-7 efforts addressing all or a portion of the region;
5-8 (B) certified groundwater conservation district
5-9 management plans;
5-10 (C) all potentially feasible water management
5-11 strategies, including but not limited to improved conservation and
5-12 management of existing water supplies, acquisition of available
5-13 existing water supplies, and development of new water supplies;
5-14 (D) protection of existing water rights in the
5-15 region;
5-16 (E) opportunities for and the benefits of
5-17 developing regional water supply facilities or providing regional
5-18 management of water supply facilities;
5-19 (F) appropriate provision for environmental
5-20 water needs and for the effect of upstream development on the bays,
5-21 estuaries, and arms of the Gulf of Mexico and the effect of plans
5-22 on navigation;
5-23 (G) provisions in Section 11.085(h)(1) of this
5-24 code if interbasin transfers are contemplated; and
5-25 (H) voluntary transfer of water within the
6-1 region using, but not limited to, regional water banks, sales,
6-2 leases, options, subordination agreements, and financing
6-3 agreements.
6-4 (f) No later than September 1, 1998, the board shall adopt
6-5 rules:
6-6 (1) to provide for the procedures for adoption of
6-7 regional water plans by regional water planning groups and for
6-8 approval of regional water plans by the board; and
6-9 (2) to govern procedures to be followed in carrying
6-10 out the responsibilities of this section.
6-11 (g) The board shall provide technical and financial
6-12 assistance to the regional water planning groups in the development
6-13 of their plans. The board shall simplify, as much as possible,
6-14 planning requirements in regions with abundant water resources.
6-15 The board, if requested, may facilitate resolution of conflicts
6-16 within regions.
6-17 (h)(1) Prior to the preparation of the regional water plan,
6-18 the regional water planning group shall, after notice, hold at
6-19 least one public meeting at some central location within the
6-20 regional planning area to gather suggestions and recommendations
6-21 from the public as to issues that should be addressed in the plan
6-22 or provisions that should be considered for inclusion in the plan.
6-23 (2) The regional water planning group shall provide an
6-24 ongoing opportunity for public input during the preparation of the
6-25 regional water plan.
7-1 (3) After the regional water plan is initially
7-2 prepared, the regional water planning group shall, after notice,
7-3 hold at least one public hearing at some central location within
7-4 the regional water planning area.
7-5 (4) After the regional water plan is initially
7-6 prepared, the regional water planning group shall submit a copy of
7-7 the plan to the board. The board shall submit comments on the
7-8 regional water plan as to whether the plan meets the requirements
7-9 of Subsection (e) of this section.
7-10 (5) If no interregional conflicts exist, the regional
7-11 water planning group shall consider all public and board comments;
7-12 prepare, revise, and adopt the final plan; and submit the adopted
7-13 plan to the board for approval and inclusion in the state water
7-14 plan.
7-15 (6) If an interregional conflict exists, the board
7-16 shall facilitate coordination between the involved regions to
7-17 resolve the conflict. If conflict remains, the board shall resolve
7-18 the conflict. On resolution of the conflict, the involved regional
7-19 water planning groups shall prepare revisions to their respective
7-20 plans and hold, after notice, at least one public hearing at some
7-21 central location within their respective regional water planning
7-22 areas. The regional water planning groups shall consider all
7-23 public and board comments; prepare, revise, and adopt their
7-24 respective plans; and submit their plans to the board for approval
7-25 and inclusion in the state water plan.
8-1 (7) The board may approve a regional water plan only
8-2 after it has determined that all interregional conflicts involving
8-3 that regional water planning area have been resolved.
8-4 (i) The regional water planning groups shall submit their
8-5 adopted regional water plans to the board by September 1, 2000, for
8-6 approval and inclusion in the state water plan. In conjunction
8-7 with the submission of regional water plans, each planning group
8-8 should make legislative recommendations, if any, to facilitate more
8-9 voluntary water transfers in the region. Subsequent regional water
8-10 plans shall be submitted every five years thereafter. Public
8-11 participation for revised regional plans shall follow the
8-12 procedures under Subsection (h) of this section.
8-13 (j) The board may provide financial assistance to political
8-14 subdivisions under Subchapters E and F of this chapter and
8-15 Subchapters C, D, E, F, and J, Chapter 15, and Subchapters D, I, K,
8-16 and L, Chapter 17 of this code for water projects only if the board
8-17 determines that the needs to be addressed by the project will be
8-18 addressed in a manner consistent with an approved regional water
8-19 plan for the area in which the facility is to be located, unless
8-20 the board determines that conditions warrant waiver of this
8-21 requirement. [HEARING ON PRELIMINARY PLAN. (a) After the
8-22 executive administrator completes his preliminary planning of the
8-23 water resources development within a river basin, he shall hold a
8-24 public hearing, after notice, at some central location within the
8-25 river basin. If the proposed plan involves the transfer of water
9-1 from one basin to another, the hearing shall be held at some
9-2 location convenient to the areas affected.]
9-3 [(b) The executive administrator shall present the proposed
9-4 plan of development and hear evidence for and against the plan.]
9-5 [(c) After the hearing, the executive administrator shall
9-6 consider the effect the plan will have on the present and future
9-7 development, economy, general welfare, and water requirements of
9-8 the river basin or the areas affected.]
9-9 Sec. 16.054. OTHER WATER PLANNING. (a) It is the policy of
9-10 the state that water resource management, water conservation, and
9-11 drought planning should occur on an ongoing basis. The board,
9-12 commission, and Parks and Wildlife Department shall make available
9-13 where appropriate technical and financial assistance for such
9-14 planning.
9-15 (b) When preparing individual water plans that address
9-16 drought or the development, management, or conservation of water
9-17 resources from the holders of existing permits, certified filings,
9-18 or certificates of adjudication, the water suppliers, groundwater
9-19 districts, special districts, irrigation districts, and other water
9-20 users should ensure that the plan is consistent with the applicable
9-21 approved regional water plan for their region. [HEARING ON
9-22 COMPLETED STATE WATER PLAN. When the executive administrator has
9-23 prepared and examined the completed preliminary plan, the board
9-24 shall hold a public hearing on the plan to determine whether or not
9-25 it gives adequate consideration to the protection of existing water
10-1 rights in this state and whether or not it takes into account modes
10-2 and procedures for the equitable adjustment of water rights
10-3 affected by the plan. After the hearing, the board may formally
10-4 adopt the state water plan. A majority vote is necessary for
10-5 adoption.]
10-6 Sec. 16.055. DROUGHT RESPONSE PLAN. (a) The division of
10-7 emergency management of the office of the governor shall be
10-8 responsible for coordinating the drought response component of the
10-9 state water plan.
10-10 (b) The drought response and monitoring committee is created
10-11 and shall meet as necessary to carry out the provisions of this
10-12 section. The committee is composed of one representative from each
10-13 of the following entities, appointed by the administrative head of
10-14 that entity:
10-15 (1) the division of emergency management in the office
10-16 of the governor;
10-17 (2) the board;
10-18 (3) the commission;
10-19 (4) the Parks and Wildlife Department;
10-20 (5) the Department of Agriculture; and
10-21 (6) the Texas Agricultural Extension Service.
10-22 (c) The governor may designate any other person or a
10-23 representative of any other entity to serve on the committee.
10-24 (d) The representative of the division of emergency
10-25 management shall serve as chair of the committee.
11-1 (e) The committee shall be responsible for:
11-2 (1) the assessment and public reporting of drought
11-3 monitoring and water supply conditions;
11-4 (2) advising the governor on significant drought
11-5 conditions;
11-6 (3) recommending specific provisions for a defined
11-7 state response to drought-related disasters for inclusion in the
11-8 state emergency management plan and the state water plan;
11-9 (4) advising the regional planning groups on
11-10 drought-related issues in the regional water plans; and
11-11 (5) ensuring effective coordination among state,
11-12 local, and federal agencies in drought-response planning.
11-13 (f) In performing its duties under this section, the drought
11-14 response and monitoring committee shall consider the following
11-15 factors when determining whether a drought exists for the purposes
11-16 of this section:
11-17 (1) meteorological conditions and forecasts;
11-18 (2) hydrological conditions and forecasts;
11-19 (3) water use and demand forecasts;
11-20 (4) water supply conditions and forecasts;
11-21 (5) the potential impacts of the water shortage
11-22 on: the public health, safety, and welfare; economic development;
11-23 and agricultural and natural resources; and
11-24 (6) other factors deemed appropriate by the committee.
11-25 [EFFECT OF PLAN. (a) The state water plan, as formally adopted by
12-1 the board, shall be a flexible guide to state policy for the
12-2 development of water resources in this state.]
12-3 [(b) The commission shall take the plan into consideration
12-4 in matters coming before it but is not bound by the plan.]
12-5 [(c) Nothing in the state water plan or any amendment or
12-6 modification of the plan affects any vested right existing before
12-7 August 30, 1965.]
12-8 Sec. 16.056. [AMENDMENT OF PLAN. (a) The board shall
12-9 review the plan biennially to consider any amendment or
12-10 modification that may be needed because of changed conditions.]
12-11 [(b) The board shall amend or modify the plan as experience
12-12 and changed conditions require after holding a public hearing on
12-13 any amendment or modification in the manner and for the purposes
12-14 provided by Section 16.054 of this code.]
12-15 [(c) Any amendment or modification adopted by the board
12-16 becomes a part of the plan.]
12-17 [Sec. 16.057.] FEDERAL ASSISTANCE IN FINANCING REGIONAL
12-18 WATER PLANS [PLAN]. The executive administrator may take all
12-19 necessary action to qualify for federal assistance in financing the
12-20 development and improvement of the regional water plans [plan].
12-21 SECTION 1.03. Subchapter D, Chapter 11, Water Code, is
12-22 amended by amending Section 11.1271 and adding Section 11.1272 to
12-23 read as follows:
12-24 Sec. 11.1271. ADDITIONAL REQUIREMENTS: WATER CONSERVATION
12-25 PLANS. (a) The commission shall [may] require the formulation and
13-1 submission of a water conservation plan and the adoption of
13-2 reasonable water conservation measures, as defined by Subdivision
13-3 (8)(B), Section 11.002, of this code.
13-4 (b) The commission shall require the holder of an existing
13-5 permit, certified filing, or certificate of adjudication for the
13-6 appropriation of surface water in the amount of 1,000 acre-feet a
13-7 year or more to develop, submit, and implement a water conservation
13-8 plan, consistent with the appropriate regional water plan, that
13-9 adopts reasonable water conservation measures as defined by
13-10 Subdivision (8)(B), Section 11.002, of this code. The requirement
13-11 for a water conservation plan under this section shall not result
13-12 in the need for an amendment to an existing permit, certified
13-13 filing, or certificate of adjudication.
13-14 (c) The commission shall adopt rules establishing criteria
13-15 and deadlines for submission of water conservation plans.
13-16 Sec. 11.1272. ADDITIONAL REQUIREMENT: DROUGHT CONTINGENCY
13-17 PLANS FOR CERTAIN APPLICANTS AND WATER RIGHT HOLDERS. The
13-18 commission shall by rule require wholesale and retail public water
13-19 suppliers and irrigation districts to develop drought contingency
13-20 plans consistent with the appropriate approved regional water plan
13-21 to be implemented during periods of water shortages and drought.
13-22 SECTION 1.04. Section 15.401, Water Code, is amended to read
13-23 as follows:
13-24 Sec. 15.401. PROGRAM CREATION. The research and planning
13-25 program is created to provide money for research into and planning
14-1 of the proper conservation, management, and development of the
14-2 state's water resources, for regional planning by political
14-3 subdivisions, for facility engineering in economically distressed
14-4 areas, and for flood control planning by political subdivisions.
14-5 The program may also provide money for research and planning by
14-6 Texas political subdivisions related to the proper conservation,
14-7 management, and development of water resources of areas outside
14-8 Texas if such research or planning will result in water being
14-9 available for use in or for the benefit of Texas or will maintain
14-10 and enhance the quality of water in Texas.
14-11 SECTION 1.05. Subsection (a), Section 15.404, Water Code, is
14-12 amended to read as follows:
14-13 (a) The board may enter into a contract with any person for
14-14 research into any matter relating to the conservation and
14-15 development of the state's water resources or for research by Texas
14-16 political subdivisions related to the proper conservation and
14-17 development of water resources of areas outside Texas if such
14-18 research will result in water being available for use in or for the
14-19 benefit of Texas or will help maintain and enhance the quality of
14-20 water in Texas.
14-21 SECTION 1.06. Subsection (f), Section 15.406, Water Code, is
14-22 amended to read as follows:
14-23 (f) The board shall adopt rules establishing criteria of
14-24 eligibility for regional facility planning money that considers:
14-25 (1) the relative need of the political subdivision for
15-1 the money;
15-2 (2) the legal authority of the political subdivision
15-3 to plan, develop, and operate regional facilities; [and]
15-4 (3) the effect of regional facility planning by the
15-5 political subdivision on overall regional facility planning,
15-6 development, and operation in the state and within the area in
15-7 which the political subdivision is located; and
15-8 (4) the degree to which the regional facility planning
15-9 by the political subdivision is consistent with an approved
15-10 regional water plan for the area in which the political subdivision
15-11 is located.
15-12 SECTION 1.07. Subchapter F, Chapter 15, Water Code, is
15-13 amended by adding Section 15.4061 to read as follows:
15-14 Sec. 15.4061. FUNDING FOR REGIONAL WATER PLANS. (a) The
15-15 board may enter into contracts with political subdivisions
15-16 designated as representatives of a regional water planning group
15-17 under Section 16.053(c) of this code to pay from the research and
15-18 planning fund all or part of the cost of developing or revising
15-19 regional water plans as defined in Section 16.053 of this code.
15-20 (b) A political subdivision may submit, either individually
15-21 or jointly with other political subdivisions, a written application
15-22 to the board for the purpose of funding regional water planning
15-23 from the research and planning fund.
15-24 (c) The application shall be in the manner and form required
15-25 by board rules and include:
16-1 (1) the name of the political subdivision or political
16-2 subdivisions;
16-3 (2) a citation to the laws under which the political
16-4 subdivision was created and is operating, including specific
16-5 citation of all laws providing authority to develop and implement a
16-6 regional water plan;
16-7 (3) the amount requested from the board for regional
16-8 water planning; and
16-9 (4) any other relevant information required by the
16-10 board in its rules or specifically requested by the board.
16-11 (d) After notice and hearing, the board may award the
16-12 applicant all or part of the requested funds that the board
16-13 considers necessary for the political subdivision to carry out
16-14 regional water planning.
16-15 (e) If the board grants an application under this section
16-16 and awards funds for regional water planning, the board shall enter
16-17 into a contract with the political subdivision or political
16-18 subdivisions that includes:
16-19 (1) a detailed statement of the purpose for which the
16-20 money is to be used;
16-21 (2) the total amount of money to be paid by the board
16-22 from the research and planning fund under the contract; and
16-23 (3) any other terms and conditions required by the
16-24 board's rules or agreed to by the contracting parties.
16-25 (f) The board shall adopt rules establishing criteria for
17-1 eligibility for regional water planning money that include:
17-2 (1) the relative need of the political subdivision for
17-3 the money;
17-4 (2) the legal authority of the political subdivision
17-5 to develop and implement a regional water plan; and
17-6 (3) the degree to which regional water planning by the
17-7 political subdivision or political subdivisions will address the
17-8 water supply needs in the regional water planning area.
17-9 (g) The board shall require that regional water plans
17-10 developed or revised under contracts entered into under this
17-11 section be made available to the commission and the Parks and
17-12 Wildlife Department.
17-13 SECTION 1.08. The state water plan in effect on the
17-14 effective date of this Act shall remain in effect until a new state
17-15 water plan is adopted pursuant to Subsection (a), Section 16.051,
17-16 Water Code, as amended by Section 1.01 of this Act.
17-17 ARTICLE 2. WATER MANAGEMENT, MARKETING, AND TRANSFERS
17-18 SECTION 2.01. Section 791.026, Government Code, is amended
17-19 to read as follows:
17-20 Sec. 791.026. CONTRACTS FOR WATER SUPPLY AND WASTEWATER
17-21 TREATMENT FACILITIES. (a) A municipality, district, or river
17-22 authority of this state may contract with another municipality,
17-23 district, or river authority of this state to obtain or provide
17-24 part or all of:
17-25 (1) water supply or wastewater treatment facilities;
18-1 or
18-2 (2) a lease or operation of water supply facilities or
18-3 wastewater treatment facilities.
18-4 (b) The contract may provide that the municipality,
18-5 district, or river authority obtaining one of the services may not
18-6 obtain those services from a source other than a contracting party,
18-7 except as provided by the contract.
18-8 (c) If a contract includes a term described by Subsection
18-9 (b), payments made under the contract are the paying party's
18-10 operating expenses for its water supply system, wastewater
18-11 treatment facilities, or both.
18-12 (d) The contract may:
18-13 (1) contain terms and extend for any period on which
18-14 the parties agree; [and]
18-15 (2) require the purchaser to develop alternative or
18-16 replacement supplies prior to the expiration date of the contract
18-17 and may provide for enforcement of such terms by court order; and
18-18 (3) provide that it will continue in effect until
18-19 bonds specified by the contract and any refunding bonds issued to
18-20 pay those bonds are paid.
18-21 (e) Where a contract sets forth explicit expiration
18-22 provisions, no continuation of the service obligation will be
18-23 implied.
18-24 (f) Tax revenue may not be pledged to the payment of amounts
18-25 agreed to be paid under the contract.
19-1 (g) [(f)] The powers granted by this section prevail over a
19-2 limitation contained in another law.
19-3 SECTION 2.02. Section 11.002, Water Code, is amended by
19-4 amending Subdivision (4) and adding Subdivisions (9) and (10) to
19-5 read as follows:
19-6 (4) "Beneficial use" means use of the amount of water
19-7 which is economically necessary for a purpose authorized by this
19-8 chapter, when reasonable intelligence and reasonable diligence are
19-9 used in applying the water to that purpose and shall include
19-10 conserved water.
19-11 (9) "Conserved water" means that amount of water saved
19-12 by a holder of an existing permit, certified filing, or certificate
19-13 of adjudication through practices, techniques, and technologies
19-14 that would otherwise be irretrievably lost to all consumptive
19-15 beneficial uses arising from storage, transportation, distribution,
19-16 or application.
19-17 (10) "Surplus water" means water in excess of the
19-18 initial or continued beneficial use of the appropriator.
19-19 SECTION 2.03. Subsection (e), Section 11.023, Water Code, is
19-20 amended to read as follows:
19-21 (e) The amount of water appropriated for each purpose
19-22 mentioned in this section shall be specifically appropriated for
19-23 that purpose, subject to the preferences prescribed in Section
19-24 11.024 of this code. The commission may authorize appropriation of
19-25 a single amount or volume of water for more than one purpose of
20-1 use. In the event that a single amount or volume of water is
20-2 appropriated for more than one purpose of use, the total amount of
20-3 water actually diverted for all of the authorized purposes may not
20-4 exceed the total amount of water appropriated.
20-5 SECTION 2.04. Section 11.036, Water Code, is amended to read
20-6 as follows:
20-7 Sec. 11.036. CONSERVED OR STORED WATER: SUPPLY CONTRACT.
20-8 (a) A person, association of persons, corporation, or water
20-9 improvement or irrigation district having in possession and control
20-10 any storm water, floodwater, or rainwater that is conserved or
20-11 stored as authorized by this chapter may contract to supply the
20-12 water to any person, association of persons, corporation, or water
20-13 improvement or irrigation district having the right to acquire use
20-14 of the water.
20-15 (b) The price and terms of the contract shall be just and
20-16 reasonable and without discrimination, and the contract is subject
20-17 to the same revision and control as provided in this code for other
20-18 water rates and charges. If the contract sets forth explicit
20-19 expiration provisions, no continuation of the service obligation
20-20 will be implied.
20-21 (c) The terms of a contract may expressly provide that the
20-22 person using the stored or conserved water is required to develop
20-23 alternative or replacement supplies prior to the expiration of the
20-24 contract and may further provide for enforcement of such terms by
20-25 court order.
21-1 (d) If any person uses the stored or conserved water without
21-2 first entering into a contract with the party that conserved or
21-3 stored it, the user shall pay for the use at a rate determined by
21-4 the commission to be just and reasonable, subject to court review
21-5 as in other cases.
21-6 SECTION 2.05. Section 11.042, Water Code, is amended to read
21-7 as follows:
21-8 Sec. 11.042. DELIVERING WATER DOWN BANKS AND BEDS.
21-9 (a) Under rules prescribed by the commission, a person,
21-10 association of persons, corporation, or water control and
21-11 improvement or irrigation district supplying stored or conserved
21-12 water under contract as provided in this chapter may use the bank
21-13 and bed of any flowing natural stream in the state to convey the
21-14 water from the place of storage to the place of use or to the
21-15 diversion point [plant] of the appropriator. [The commission shall
21-16 prescribe rules for this purpose.]
21-17 (b) Except as provided by Subsection (a) of this section, a
21-18 person who wishes to convey and subsequently divert water in a
21-19 watercourse or stream must obtain the prior approval of the
21-20 commission through a bed and banks authorization. The
21-21 authorization shall allow to be diverted only the amount of water
21-22 put into a watercourse or stream, less carriage losses and subject
21-23 to any special conditions that may address the impact of the
21-24 discharge, conveyance, and diversion on existing permits, certified
21-25 filings, or certificates of adjudication, instream uses, and
22-1 freshwater inflows to bays and estuaries. Water discharged into a
22-2 watercourse or stream under this chapter shall not cause a
22-3 degradation of water quality to the extent that the stream
22-4 segment's classification would be lowered. Authorizations under
22-5 this section and water quality authorizations may be approved in a
22-6 consolidated permit proceeding.
22-7 (c) Nothing in this section shall be construed to affect an
22-8 existing project for which water rights and reuse authorizations
22-9 have been granted by the commission before September 1, 1997.
22-10 SECTION 2.06. Section 11.046, Water Code, is amended to read
22-11 as follows:
22-12 Sec. 11.046. RETURN SURPLUS [UNUSED] WATER. (a) A person
22-13 who takes or diverts water from a watercourse or [running] stream
22-14 for the purposes authorized by this code shall conduct surplus
22-15 water back to the watercourse or stream from which it was taken if
22-16 the water can be returned by gravity flow and it is reasonably
22-17 practicable to do so.
22-18 (b) In granting an application for a water right, the
22-19 commission may include conditions in the water right providing for
22-20 the return of surplus water, in a specific amount or percentage of
22-21 water diverted, and the return point on a watercourse or stream as
22-22 necessary to protect senior downstream permits, certified filings,
22-23 or certificates of adjudication or to provide flows for instream
22-24 uses or bays and estuaries.
22-25 (c) Except as specifically provided otherwise in the water
23-1 right, water appropriated under a permit, certified filing, or
23-2 certificate of adjudication may, prior to its release into a
23-3 watercourse or stream, be beneficially used and reused by the
23-4 holder of a permit, certified filing, or certificate of
23-5 adjudication for the purposes and locations of use provided in the
23-6 permit, certified filing, or certificate of adjudication. Once
23-7 water has been diverted under a permit, certified filing, or
23-8 certificate of adjudication and then returned to a watercourse or
23-9 stream, however, it is considered surplus water and therefore
23-10 subject to reservation for instream uses or beneficial inflows or
23-11 to appropriation by others unless expressly provided otherwise in
23-12 the permit, certified filing, or certificate of adjudication.
23-13 (d) Water appropriated under a permit, certified filing, or
23-14 certificate of adjudication which is recirculated within a
23-15 reservoir for cooling purposes shall not be considered to be
23-16 surplus for purposes of this chapter.
23-17 SECTION 2.07. Section 11.085, Water Code, is amended to read
23-18 as follows:
23-19 Sec. 11.085. INTERBASIN [INTERWATERSHED] TRANSFERS. (a) No
23-20 person may take or divert any state [of the] water from a river
23-21 basin [of the ordinary flow, underflow, or storm flow of any
23-22 stream, watercourse, or watershed] in this state and transfer such
23-23 water to [into] any other river basin [natural stream, watercourse,
23-24 or watershed to the prejudice of any person or property situated
23-25 within the watershed from which the water is proposed to be taken
24-1 or diverted.]
24-2 [(b) No person may transfer water from one watershed to
24-3 another] without first applying for and receiving a water right or
24-4 an amendment to a permit, certified filing, or certificate of
24-5 adjudication [permit] from the commission authorizing the transfer
24-6 [to do so. Before issuing such a permit, the commission shall hold
24-7 a hearing to determine the rights that might be affected by the
24-8 transfer. The commission shall give notice and hold the hearing in
24-9 the manner prescribed by its procedural rules].
24-10 (b) Prior to taking action on an application for an
24-11 interbasin transfer, the commission shall conduct at least one
24-12 public meeting to receive comments in both the basin of origin of
24-13 the water proposed for transfer and the basin receiving water from
24-14 the proposed transfer. Notice shall be provided pursuant to
24-15 Subsection (e) of this section. Any person may present relevant
24-16 information and data at the meeting on the criteria which the
24-17 commission is to consider related to the interbasin transfer.
24-18 (c) In addition to the public meetings required by
24-19 Subsection (b) of this section, if the application is contested in
24-20 a manner requiring an evidentiary hearing under the rules of the
24-21 commission, the commission shall give notice and hold an
24-22 evidentiary hearing, in accordance with commission rules and
24-23 applicable state law.
24-24 (d) Notice of an application for an interbasin transfer
24-25 shall be mailed to the following:
25-1 (1) all holders of permits, certified filings, or
25-2 certificates of adjudication located in whole or in part in the
25-3 basin of origin;
25-4 (2) each county judge of a county located in whole or
25-5 in part in the basin of origin;
25-6 (3) each mayor of a city with a population of 1,000 or
25-7 more located in whole or in part in the basin of origin; and
25-8 (4) all groundwater conservation districts located in
25-9 whole or in part in the basin of origin.
25-10 (e) The applicant shall cause the notice of application for
25-11 an interbasin transfer to be published once a week for two
25-12 consecutive weeks in one or more newspapers having general
25-13 circulation in each county located in whole or in part in the basin
25-14 of origin. The published notice may not be smaller than 96.8
25-15 square centimeters or 15 square inches with the shortest dimension
25-16 at least 7.6 centimeters or three inches. The notice of
25-17 application and public meetings shall be combined in the mailed and
25-18 published notices.
25-19 (f) The applicant shall pay the cost of notice required to
25-20 be provided under this section. The commission by rule may
25-21 establish procedures for payment of those costs.
25-22 (g) In addition to other requirements of this code relating
25-23 to the review of and action on an application for a new water right
25-24 or amended permit, certified filing, or certificate of
25-25 adjudication, the commission shall:
26-1 (1) request review and comment on an application for
26-2 an interbasin transfer from each county judge of a county located
26-3 in whole or in part in the basin of origin. A county judge should
26-4 make comment only after seeking advice from the county
26-5 commissioners court; and
26-6 (2) give consideration to the comments of each county
26-7 judge of a county located in whole or in part in the basin of
26-8 origin prior to taking action on an application for an interbasin
26-9 transfer.
26-10 (h) In addition to other requirements of this code relating
26-11 to the review of and action on an application for a new water right
26-12 or amended permit, certified filing, or certificate of
26-13 adjudication, the commission shall weigh the effects of the
26-14 proposed transfer by considering:
26-15 (1) the need for the water in the basin of origin and
26-16 in the proposed receiving basin based on the period for which the
26-17 water supply is requested, but not to exceed 50 years;
26-18 (2) factors identified in the applicable approved
26-19 regional water plans which address the following:
26-20 (A) the availability of feasible and practicable
26-21 alternative supplies in the receiving basin to the water proposed
26-22 for transfer;
26-23 (B) the amount and purposes of use in the
26-24 receiving basin for which water is needed;
26-25 (C) proposed methods and efforts by the
27-1 receiving basin to avoid waste and implement water conservation and
27-2 drought contingency measures;
27-3 (D) proposed methods and efforts by the
27-4 receiving basin to put the water proposed for transfer to
27-5 beneficial use;
27-6 (E) the projected economic impact that is
27-7 reasonably expected to occur in each basin as a result of the
27-8 transfer; and
27-9 (F) the projected impacts of the proposed
27-10 transfer that are reasonably expected to occur on existing instream
27-11 uses, water quality, aquatic and riparian habitat, and bays and
27-12 estuaries that must be assessed under Sections 11.147, 11.150, and
27-13 11.152 of this code in each basin. If the water sought to be
27-14 transferred is currently authorized to be used under an existing
27-15 permit, certified filing, or certificate of adjudication, such
27-16 impacts shall only be considered in relation to that portion of the
27-17 permit, certified filing, or certificate of adjudication proposed
27-18 for transfer and shall be based on historical uses of the permit,
27-19 certified filing, or certificate of adjudication for which
27-20 amendment is sought;
27-21 (3) proposed mitigation or compensation, if any, to
27-22 the basin of origin by the applicant; and
27-23 (4) the continued need to use the water for the
27-24 purposes authorized under the existing permit, certified filing, or
27-25 certificate of adjudication, if an amendment to an existing water
28-1 right is sought.
28-2 (i) The commission may grant, in whole or in part, an
28-3 application for an interbasin transfer only to the extent that the
28-4 detriments to the basin of origin during the proposed transfer
28-5 period are less than the benefits to the receiving basin during the
28-6 proposed transfer period.
28-7 (j) This section does not apply to:
28-8 (1) a proposed transfer of less than 3,000 acre-feet
28-9 of water per annum from the same permit, certified filing, or
28-10 certificate of adjudication; or
28-11 (2) a request for an emergency transfer of water; or
28-12 (3) a proposed transfer from a basin to its adjoining
28-13 coastal basin.
28-14 (k) If the transfer of water is based on a contractual sale
28-15 of water, the new water right or amended permit, certified filing,
28-16 or certificate of adjudication authorizing the transfer shall
28-17 contain a condition for a term or period not greater than the
28-18 contract term.
28-19 (l) The parties to a contract for an interbasin transfer may
28-20 include provisions for compensation and mitigation. If the party
28-21 from the basin of origin is a government entity, each county judge
28-22 of a county located in whole or in part in the basin of origin may
28-23 provide input on the appropriate compensation and mitigation for
28-24 the interbasin transfer.
28-25 (m) For the purposes of this section, a basin is designated
29-1 as provided in accordance with Section 16.051 of this code. A
29-2 basin may not be redesignated in order to allow a transfer or
29-3 diversion of water otherwise in violation of this section.
29-4 (n) [(c)] A person who takes or diverts water in violation
29-5 of this section is guilty of a misdemeanor and upon conviction is
29-6 punishable by a fine of not [less than $100 nor] more than $10,000
29-7 [$500] or by confinement in the county jail for not more than six
29-8 months.
29-9 (o) [(d)] A person commits a separate offense each day he
29-10 continues to take or divert water in violation of this section.
29-11 SECTION 2.08. Subsection (a), Section 11.124, Water Code, is
29-12 amended to read as follows:
29-13 (a) An application to appropriate unappropriated state water
29-14 must:
29-15 (1) be in writing and sworn to;
29-16 (2) contain the name and post-office address of the
29-17 applicant;
29-18 (3) identify the source of water supply;
29-19 (4) state the nature and purposes of the proposed use
29-20 or uses and the amount of water to be used for each purpose;
29-21 (5) state the location and describe the proposed
29-22 facilities;
29-23 (6) state the time within which the proposed
29-24 construction is to begin; and
29-25 (7) state the time required for the application of
30-1 water to the proposed use or uses.
30-2 SECTION 2.09. Subsection (b), Section 11.135, Water Code, is
30-3 amended to read as follows:
30-4 (b) The permit shall be in writing and attested by the seal
30-5 of the commission, and it shall contain substantially the following
30-6 information:
30-7 (1) the name of the person to whom the permit is
30-8 issued;
30-9 (2) the date the permit is issued;
30-10 (3) the date the original application was filed;
30-11 (4) the use or purpose for which the appropriation is
30-12 to be made;
30-13 (5) the amount or volume of water authorized to be
30-14 appropriated for each purpose; if use of the appropriated water is
30-15 authorized for multiple purposes, the permit shall contain a
30-16 special condition limiting the total amount of water that may
30-17 actually be diverted for all of the purposes to the amount of water
30-18 appropriated;
30-19 (6) a general description of the source of supply from
30-20 which the appropriation is proposed to be made;
30-21 (7) the time within which construction or work must
30-22 begin and the time within which it must be completed; and
30-23 (8) any other information the commission prescribes.
30-24 SECTION 2.10. Subsection (a), Section 11.142, Water Code, is
30-25 amended to read as follows:
31-1 (a) Without obtaining a permit, a person may construct on
31-2 his own property a dam or reservoir with a normal conservation
31-3 storage capacity of [to impound or contain] not more than 200
31-4 acre-feet of water for domestic and livestock purposes.
31-5 SECTION 2.11. Sections 11.176 and 11.177, Water Code, are
31-6 amended to read as follows:
31-7 Sec. 11.176. HEARING. (a) Except as provided by Subsection
31-8 (b) of this section, the [The] commission shall hold a hearing and
31-9 shall give the holder of the permit, certified filing, or
31-10 certificate of adjudication and other interested persons an
31-11 opportunity to be heard and to present evidence on any matter
31-12 pertinent to the questions at issue.
31-13 (b) A hearing on the cancellation of a permit, certified
31-14 filing, or certificate of adjudication as provided by this chapter
31-15 is unnecessary if the right to such hearing is expressly waived by
31-16 the affected holder of a permit, certified filing, or certificate
31-17 of adjudication.
31-18 (c) A permit, certified filing, or certificate of
31-19 adjudication for a term does not vest in the holder of a permit,
31-20 certified filing, or certificate of adjudication any right to the
31-21 diversion, impoundment, or use of water for longer than the term of
31-22 the permit, certified filing, or certificate of adjudication and
31-23 shall expire and be cancelled in accordance with its terms without
31-24 further need for notice or hearing.
31-25 Sec. 11.177. COMMISSION FINDING; ACTION. (a) At the
32-1 conclusion of the hearing, the commission shall cancel the permit,
32-2 certified filing, or certificate of adjudication in whole or in
32-3 part to the extent that it finds that:
32-4 (1) the water or any portion of the water appropriated
32-5 under the permit, certified filing, or certificate of adjudication
32-6 has not been put to an authorized beneficial use during the 10-year
32-7 period; and
32-8 (2) the holder has not used reasonable diligence in
32-9 applying the water or the unused portion of the water to an
32-10 authorized beneficial use or is otherwise unjustified in the
32-11 nonuse[; and]
32-12 [(3) the holder has not been justified in the nonuse
32-13 or does not then have a bona fide intention of putting the water or
32-14 the unused portion of the water to an authorized beneficial use
32-15 within a reasonable time after the hearing].
32-16 (b) In determining what constitutes reasonable diligence or
32-17 a justified nonuse [and a reasonable time] as used in Subsection
32-18 (a)(2) [(a)(3)] of this section, the commission shall give
32-19 consideration to:
32-20 (1) whether sufficient water is available in the
32-21 source of supply to meet all or part of the appropriation during
32-22 the 10-year period of nonuse;
32-23 (2) whether the nonuse is justified by the holder's
32-24 participation in the federal Conservation Reserve Program or a
32-25 similar governmental program as provided by Section 11.173(b)(1) of
33-1 this code;
33-2 (3) whether the permit, certified filing, or
33-3 certificate of adjudication was obtained to meet demonstrated
33-4 long-term public water supply or electric generation needs as
33-5 evidenced by a water management plan developed by the holder and
33-6 consistent with projections of future water needs contained in the
33-7 state water plan;
33-8 (4) whether the permit, certified filing, or
33-9 certificate of adjudication was obtained as the result of the
33-10 construction of a reservoir funded, in whole or in part, by the
33-11 holder of the permit, certified filing, or certificate of
33-12 adjudication as part of the holder's long-term water planning;
33-13 (5) whether the existing or proposed authorized
33-14 purpose and place of use are consistent with an approved regional
33-15 water plan as provided by Section 16.053 of this code;
33-16 (6) whether the permit, certified filing, or
33-17 certificate of adjudication has been deposited into the Texas Water
33-18 Bank as provided by Sections 15.7031 and 15.704 of this code or
33-19 whether it can be shown that the water right or water available
33-20 under the right is currently being made available for purchase
33-21 through private marketing efforts; or
33-22 (7) whether the permit, certified filing, or
33-23 certificate of adjudication has been reserved to provide for
33-24 instream flows or bay and estuary inflows [the expenditures made or
33-25 obligations incurred by the holder in connection with the permit,
34-1 certified filing, or certificate of adjudication;]
34-2 [(2) the purpose to which the water is to be applied;]
34-3 [(3) the priority of the purpose;]
34-4 [(4) the amount of time usually necessary to put water
34-5 to a beneficial use for the same purpose when diligently developed;
34-6 and]
34-7 [(5) whether at all times during the 10-year period
34-8 there was rainfall adequate to enable the use of all or part of the
34-9 water authorized to be appropriated under the permit, certified
34-10 filing, or certificate of adjudication].
34-11 SECTION 2.12. Section 15.701, Water Code, is amended to read
34-12 as follows:
34-13 Sec. 15.701. Definitions. In this subchapter:
34-14 (1) "Deposit" means the placement of a water right or
34-15 the right to use water in the water bank for transfer.
34-16 (2) "Depositor" means a person who deposits or has on
34-17 deposit a water right in the water bank.
34-18 (3) "Person" includes but is not limited to any
34-19 individual, corporation, organization, government, or governmental
34-20 subdivision or agency, including the board, business trust, estate,
34-21 trust, partnership, association, and any other legal entity.
34-22 (4) "Transfer" means the conveyance of a water right
34-23 or the right to use water under a water right in any of the
34-24 following manners:
34-25 (A) the conveyance of legal title to a water
35-1 right; or
35-2 (B) a contract or option contract to allow use
35-3 of a water right.
35-4 (5) "Trust" means the Texas Water Trust.
35-5 (6) "Water bank" or "bank" means the Texas Water Bank.
35-6 (7) [(6)] "Water right" means a right acquired or
35-7 authorized under the laws of this state to impound, divert, or use
35-8 state water, underground water, or water from any source to the
35-9 extent authorized by law.
35-10 SECTION 2.13. Section 15.702, Water Code, is amended to read
35-11 as follows:
35-12 Sec. 15.702. Creation of Bank. The Texas Water Development
35-13 Board shall establish the Texas Water Bank. The board shall
35-14 administer the water bank to facilitate water transactions [the
35-15 transfer of water from all sources as necessary] to provide sources
35-16 of adequate water supplies for use within the State of Texas.
35-17 SECTION 2.14. Subsection (a), Section 15.703, Water Code, is
35-18 amended to read as follows:
35-19 (a) The board may take all actions necessary to operate the
35-20 water bank and to facilitate the transfer of water rights from the
35-21 water bank for future beneficial use including but not limited to:
35-22 (1) negotiating a sale price and terms acceptable to
35-23 the depositor and purchaser;
35-24 (2) maintaining a registry of water bank deposits and
35-25 those water users in need of additional supplies;
36-1 (3) informing water users in need of additional supply
36-2 of water rights available in the bank;
36-3 (4) encouraging water right holders to implement water
36-4 conservation practices and deposit the right to use the conserved
36-5 water into the bank;
36-6 (5) establishing requirements for deposit of a water
36-7 right into the water bank including minimum terms for deposit;
36-8 (6) purchasing, holding, and selling water rights in
36-9 its own name;
36-10 (7) establishing regional water banks; [and]
36-11 (8) acting as a clearinghouse for water marketing
36-12 information including water availability, pricing of water
36-13 transactions, environmental considerations, and potential buyers
36-14 and sellers of water rights;
36-15 (9) preparing and publishing a manual on structuring
36-16 water transactions;
36-17 (10) accepting and holding donations of water rights
36-18 to meet instream, water quality, fish and wildlife habitat, or bay
36-19 and estuary inflow needs; and
36-20 (11) other actions to facilitate water transactions
36-21 [transfers].
36-22 SECTION 2.15. Subchapter K, Chapter 15, Water Code, is
36-23 amended by adding Section 15.7031 to read as follows:
36-24 Sec. 15.7031. TEXAS WATER TRUST. (a) The Texas Water Trust
36-25 is established within the water bank to hold water rights dedicated
37-1 to environmental needs, including instream flows, water quality,
37-2 fish and wildlife habitat, or bay and estuary inflows.
37-3 (b) The board, in consultation with the Parks and Wildlife
37-4 Department and the commission, shall adopt rules governing the
37-5 process for holding and transferring water rights.
37-6 (c) The dedication of any water rights placed in trust must
37-7 be reviewed and approved by the commission, in consultation with
37-8 the board and the Parks and Wildlife Department.
37-9 (d) Water rights may be held in the trust for a term
37-10 specified by contractual agreement or in perpetuity.
37-11 SECTION 2.16. Section 15.704, Water Code, is amended by
37-12 amending Subsection (a) and adding Subsection (c) to read as
37-13 follows:
37-14 (a) A [Up to 50 percent of a] water right may be deposited
37-15 in the water bank for an initial term of up to 10 years, unless
37-16 otherwise held in the Texas Water Trust as established under
37-17 Section 15.7031 of this code, during which time the water right is
37-18 exempt from cancellation by the commission under the terms of
37-19 Subchapter E of Chapter 11 of this code. A water right is exempt
37-20 from cancellation under this subsection only once even if it has
37-21 been transferred or redeposited.
37-22 (c) A contract or option contract to allow use of a water
37-23 right under this subchapter:
37-24 (1) may include a requirement that the purchaser show
37-25 diligence in pursuing feasible and practicable alternative water
38-1 supplies; and
38-2 (2) does not vest any right in the purchaser beyond
38-3 the stated terms and conditions of the contract or option contract.
38-4 SECTION 2.17. (a) All permits approved by the Texas Natural
38-5 Resource Conservation Commission before the effective date of this
38-6 Act that allow the multiple use of the appropriation of a specific
38-7 amount of water and which are no longer subject to appeal are
38-8 validated in all respects as if they originally had been legally
38-9 authorized or accomplished.
38-10 (b) This article does not apply to an application for an
38-11 interbasin transfer filed and pending before March 2, 1997. Any
38-12 subsequent renewals of such applications shall be subject to the
38-13 provisions of this Act.
38-14 (c) Nothing in this Act shall affect the validity of any
38-15 interbasin transfer permitted or authorized before the effective
38-16 date of this Act.
38-17 ARTICLE 3. EMERGENCY AUTHORIZATIONS; ENFORCEMENT
38-18 SECTION 3.01. Subsection (a), Section 11.082, Water Code, is
38-19 amended to read as follows:
38-20 (a) A person who wilfully takes, diverts, or appropriates
38-21 state water without complying with the applicable requirements of
38-22 this chapter is also liable to a civil penalty of not more than
38-23 $10,000 [$1,000] for each day he continues the taking, diversion,
38-24 or appropriation.
38-25 SECTION 3.02. Subchapter C, Chapter 11, Water Code, is
39-1 amended by adding Sections 11.0841, 11.0842, and 11.0843 to read as
39-2 follows:
39-3 Sec. 11.0841. CIVIL REMEDY. (a) Nothing in this chapter
39-4 affects the right of any private corporation, individual, or
39-5 political subdivision that has a justiciable interest in pursuing
39-6 any available common-law remedy to enforce a right or to prevent or
39-7 seek redress or compensation for the violation of a right or
39-8 otherwise redress an injury.
39-9 (b) A district court may award the costs of litigation,
39-10 including reasonable attorney fees and expert costs, to any
39-11 political subdivision of the state, private corporation, or
39-12 individual that is a water right holder and that prevails in a suit
39-13 for injunctive relief to redress an unauthorized diversion,
39-14 impoundment, or use of surface water in violation of this chapter
39-15 or a rule adopted pursuant to this chapter.
39-16 Sec. 11.0842. ADMINISTRATIVE PENALTY. (a) If a person
39-17 violates this chapter, a rule or order adopted under this chapter
39-18 or Section 16.236 of this code, or a permit, certified filing, or
39-19 certificate of adjudication issued under this chapter, the
39-20 commission may assess an administrative penalty against that person
39-21 as provided by this section. This section and Section 12.052 of
39-22 this code are not applicable to any violation resulting from the
39-23 failure to obtain a permit for the construction of a dam or
39-24 reservoir for domestic and livestock purposes initiated prior to
39-25 March 2, 1997, if a registration for authorization is submitted to
40-1 the commission within two years of the effective date of this
40-2 section, unless modifications other than repairs are made to the
40-3 dam or reservoir after March 2, 1997. On registration, the
40-4 commission shall issue a permit for the dam or reservoir relating
40-5 back to the date of completion of construction. The date of
40-6 completion of construction may be established by the submission of
40-7 competent evidence.
40-8 (b) The penalty may be in an amount not to exceed $10,000
40-9 for each day the person is in violation of this chapter, the rule
40-10 or order adopted under this chapter or Section 16.236 of this code,
40-11 or the permit, certified filing, or certificate of adjudication
40-12 issued under this chapter. Each day a violation continues may be
40-13 considered a separate violation for purposes of penalty assessment.
40-14 (c) In determining the amount of the penalty, the commission
40-15 shall consider:
40-16 (1) the nature, circumstances, extent, duration, and
40-17 gravity of the prohibited acts, with special emphasis on the
40-18 impairment of an existing permit, certified filing, or certificate
40-19 of adjudication or the hazard or potential hazard created to the
40-20 health, safety, or welfare of the public;
40-21 (2) the impact of the violation on the instream uses,
40-22 water quality, fish and wildlife habitat, or beneficial freshwater
40-23 inflows to bays and estuaries;
40-24 (3) with respect to the alleged violator:
40-25 (A) the history and extent of previous
41-1 violations;
41-2 (B) the degree of culpability, including whether
41-3 the violation was attributable to mechanical or electrical failures
41-4 and whether the violation could have been reasonably anticipated
41-5 and avoided;
41-6 (C) demonstrated good faith, including actions
41-7 taken by the alleged violator to rectify the cause of the violation
41-8 and to compensate affected persons;
41-9 (D) any economic benefit gained through the
41-10 violation; and
41-11 (E) the amount necessary to deter future
41-12 violations; and
41-13 (4) any other matters that justice may require.
41-14 (d) If, after examination of a possible violation and the
41-15 facts surrounding that possible violation, the executive director
41-16 concludes that a violation has occurred, the executive director
41-17 shall issue a preliminary report stating the facts on which that
41-18 conclusion was based, recommending that an administrative penalty
41-19 under this section be imposed on the person charged, and
41-20 recommending the amount of the penalty. The executive director
41-21 shall base the recommended amount of the proposed penalty on the
41-22 factors provided by Subsection (c) of this section and shall
41-23 analyze each factor for the benefit of the commission.
41-24 (e) No later than the 10th day after the date on which the
41-25 report is issued, the executive director shall give written notice
42-1 of the report to the person charged with the violation. The notice
42-2 shall include a brief summary of the charges, a statement of the
42-3 amount of the penalty recommended, and a statement of the right of
42-4 the person charged to a hearing on the occurrence of the violation,
42-5 the amount of the penalty, or both the occurrence of the violation
42-6 and the amount of the penalty.
42-7 (f) No later than the 20th day after the date on which
42-8 notice is received, the person charged may either give to the
42-9 commission written consent to the executive director's report,
42-10 including the recommended penalty, or make a written request for a
42-11 hearing.
42-12 (g) If the person charged with the violation consents to the
42-13 penalty recommended by the executive director or fails to timely
42-14 respond to the notice, the commission by order shall either assess
42-15 the penalty or order a hearing to be held on the findings and
42-16 recommendations in the executive director's report. If the
42-17 commission assesses the penalty recommended by the report, the
42-18 commission shall give written notice of its decision to the person
42-19 charged.
42-20 (h) If the person charged requests or the commission orders
42-21 a hearing, the commission shall call a hearing and give notice of
42-22 the hearing. As a result of the hearing, the commission by order
42-23 either may find that a violation has occurred and may assess a
42-24 penalty, may find that a violation has occurred but that no penalty
42-25 should be assessed, or may find that no violation has occurred.
43-1 All proceedings under this subsection are subject to Chapter 2001,
43-2 Government Code. In making any penalty decision, the commission
43-3 shall analyze each of the factors provided by Subsection (c) of
43-4 this section.
43-5 (i) The commission shall give notice of its decision to the
43-6 person charged, and if the commission finds that a violation has
43-7 occurred and assesses an administrative penalty, the commission
43-8 shall give written notice to the person charged of its findings, of
43-9 the amount of the penalty, and of the person's right to judicial
43-10 review of the commission's order. If the commission is required to
43-11 give notice of a penalty under this subsection or Subsection (g) of
43-12 this section, the commission shall file notice of its decision in
43-13 the Texas Register not later than the 10th day after the date on
43-14 which the decision is adopted.
43-15 (j) Within the 30-day period immediately following the day
43-16 on which the commission's order is final, as provided by Subchapter
43-17 F, Chapter 2001, Government Code, the person charged with the
43-18 penalty shall:
43-19 (1) pay the penalty in full; or
43-20 (2) pay the amount of the penalty and file a petition
43-21 for judicial review contesting the occurrence of the violation, the
43-22 amount of the penalty, or both the occurrence of the violation and
43-23 the amount of the penalty; or
43-24 (3) without paying the amount of the penalty, file a
43-25 petition for judicial review contesting the occurrence of the
44-1 violation, the amount of the penalty, or both the occurrence of the
44-2 violation and the amount of the penalty.
44-3 (k) Within the 30-day period, a person who acts under
44-4 Subsection (j)(3) of this section may:
44-5 (1) stay enforcement of the penalty by:
44-6 (A) paying the amount of the penalty to the
44-7 court for placement in an escrow account; or
44-8 (B) giving to the court a supersedeas bond that
44-9 is approved by the court for the amount of the penalty and that is
44-10 effective until all judicial review of the commission's order is
44-11 final; or
44-12 (2) request the court to stay enforcement of the
44-13 penalty by:
44-14 (A) filing with the court a sworn affidavit of
44-15 the person stating that the person is financially unable to pay the
44-16 amount of the penalty and is financially unable to give the
44-17 supersedeas bond; and
44-18 (B) giving a copy of the affidavit to the
44-19 commission by certified mail.
44-20 (l) If the commission receives a copy of an affidavit under
44-21 Subsection (k)(2) of this section, it may file with the court
44-22 within five days after the date the copy is received a contest to
44-23 the affidavit. The court shall hold a hearing on the facts alleged
44-24 in the affidavit as soon as practicable and shall stay the
44-25 enforcement of the penalty on finding that the alleged facts are
45-1 true. The person who files an affidavit has the burden of proving
45-2 that the person is financially unable to pay the amount of the
45-3 penalty and to give a supersedeas bond.
45-4 (m) If the person does not pay the amount of the penalty and
45-5 the enforcement of the penalty is not stayed, the commission may
45-6 refer the matter to the attorney general for collection of the
45-7 amount of the penalty.
45-8 (n) Judicial review of the order or decision of the
45-9 commission assessing the penalty shall be under the substantial
45-10 evidence rule and shall be instituted by filing a petition with a
45-11 district court in Travis County, as provided by Subchapter G,
45-12 Chapter 2001, Government Code.
45-13 (o) A penalty collected under this section shall be
45-14 deposited in the state treasury to the credit of the general
45-15 revenue fund.
45-16 (p) Notwithstanding any other provision to the contrary, the
45-17 commission may compromise, modify, or remit, with or without
45-18 condition, any penalty imposed under this section.
45-19 (q) Payment of an administrative penalty under this section
45-20 shall be full and complete satisfaction of the violation for which
45-21 the administrative penalty is assessed and shall preclude any other
45-22 civil or criminal penalty for the same violation.
45-23 Sec. 11.0843. FIELD CITATION. (a) Upon witnessing a
45-24 violation of this chapter or a water right issued under this
45-25 chapter, a watermaster or the watermaster's deputy, as defined by
46-1 commission rule, may issue the alleged violator a field citation
46-2 alleging that a violation has occurred and providing the alleged
46-3 violator the option of either:
46-4 (1) without admitting to or denying the alleged
46-5 violation, paying an administrative penalty in accordance with the
46-6 predetermined penalty amount established under Subsection (b) of
46-7 this section and taking remedial action as provided in the
46-8 citation; or
46-9 (2) requesting a hearing on the alleged violation in
46-10 accordance with Section 11.0842 of this code.
46-11 (b) By rule the commission shall establish penalty amounts
46-12 corresponding to types of violations of this chapter or rules or
46-13 orders adopted or water rights issued under this chapter.
46-14 (c) A penalty collected under this section shall be
46-15 deposited in the state treasury to the credit of the general
46-16 revenue fund.
46-17 SECTION 3.03. Section 11.139, Water Code, is amended to read
46-18 as follows:
46-19 Sec. 11.139. EMERGENCY AUTHORIZATIONS [PERMITS].
46-20 (a) Except as provided by Section 11.148 of this code, the [The]
46-21 commission may grant an emergency permit, order, or amendment to an
46-22 existing permit, certified filing, or certificate of adjudication
46-23 after notice to the governor [for the diversion and use of water]
46-24 for an initial [a] period of not more than 120 [30] days if the
46-25 commission [it] finds that emergency conditions exist which present
47-1 an imminent threat to [threaten] the public health and[,] safety[,
47-2 and welfare] and which override the necessity to comply with
47-3 established statutory procedures and there are no feasible
47-4 practicable alternatives to the emergency authorization. Such
47-5 emergency action may be renewed once for not longer than 60 days.
47-6 (b) A person desiring to obtain an emergency authorization
47-7 under this section shall submit to the commission a sworn
47-8 application containing the following information:
47-9 (1) a description of the condition of emergency
47-10 justifying the granting of the emergency authorization;
47-11 (2) a statement setting forth facts which support the
47-12 findings required under this section;
47-13 (3) an estimate of the dates on which the proposed
47-14 authorization should begin and end;
47-15 (4) a description of the action sought and the
47-16 activity proposed to be allowed, mandated, or prohibited; and
47-17 (5) any other statements or information required by
47-18 the commission.
47-19 (c) If the commission finds the applicant's statement made
47-20 under Subsection (b) of this section to be correct, the commission
47-21 may grant emergency authorizations under this section without
47-22 notice and hearing or with such notice and hearing as the
47-23 commission considers practicable under the circumstances.
47-24 (d) If the commission grants an emergency authorization
47-25 under this section without a hearing, the authorization shall fix a
48-1 time and place for a hearing to be held before the commission. The
48-2 hearing shall be held as soon after the emergency authorization is
48-3 granted as is practicable but not later than 20 days after the
48-4 emergency authorization is granted.
48-5 (e) At the hearing, the commission shall affirm, modify, or
48-6 set aside the emergency authorization. Any hearing on an emergency
48-7 authorization shall be conducted in accordance with Chapter 2001,
48-8 Government Code, and rules of the commission.
48-9 (f) If an imminent threat to the public health and safety
48-10 exists which requires emergency action before the commission can
48-11 take action as provided by Subsections (a) through (c) of this
48-12 section and there are no feasible alternatives, the executive
48-13 director may grant an emergency authorization. If the executive
48-14 director issues an emergency authorization under this subsection,
48-15 the commission shall hold a hearing as provided for in Subsections
48-16 (d) and (e) of this section. The requirements of Subsection (b) of
48-17 this section shall be satisfied by the applicant before action is
48-18 taken by the executive director on the request for emergency
48-19 authorization.
48-20 (g) The requirements of Section 11.132 of this code relating
48-21 to the time for notice, newspaper notice, and method of giving a
48-22 person notice do not apply to a hearing held on an application for
48-23 an emergency authorization under this section, but such general
48-24 notice of the hearing shall be given as the commission, under
48-25 Subsections (c) and (e) of this section, considers practicable
49-1 under the circumstances.
49-2 (h) The commission may grant an emergency authorization
49-3 under this section for the temporary transfer and use of all or
49-4 part of a permit, certified filing, or certificate of adjudication
49-5 for other than domestic or municipal use to a retail or wholesale
49-6 water supplier for public health and safety purposes. In addition
49-7 to the requirements contained in Subsection (b) of this section,
49-8 the commission may direct that the applicant will timely pay the
49-9 amounts for which the applicant may be potentially liable under
49-10 Subsection (i) of this section and to the extent authorized by law
49-11 will fully indemnify and hold harmless the state, the executive
49-12 director, and the commission from any and all liability for the
49-13 authorization sought. The commission may order bond or other
49-14 surety in a form acceptable to the commission as a condition for
49-15 such emergency authorization. The commission may not grant an
49-16 emergency authorization under this section which would cause a
49-17 violation of a federal regulation.
49-18 (i) The person granted an emergency authorization under
49-19 Subsection (h) of this section is liable to the owner and the
49-20 owner's agent or lessee from whom the use is transferred for the
49-21 fair market value of the water transferred as well as for any
49-22 damages caused by the transfer of use. If, within 60 days of the
49-23 termination of the authorization, the parties do not agree on the
49-24 amount due, or if full payment is not made, either party may file a
49-25 complaint with the commission to determine the amount due. The
50-1 commission may use dispute resolution procedures for a complaint
50-2 filed under this subsection. After exhausting all administrative
50-3 remedies under this subsection, an owner from whom the use is
50-4 transferred may file suit to recover or determine the amount due in
50-5 a district court in the county where the owner resides or has its
50-6 headquarters. The prevailing party in a suit filed under this
50-7 subsection is entitled to recover court costs and reasonable
50-8 attorney's fees.
50-9 (j) [An emergency permit may be granted for a period of not
50-10 more than 30 days, and no extension or additional emergency permit
50-11 may be granted at the expiration of the original permit.]
50-12 [(c) An emergency permit may be granted under this section
50-13 without the necessity to comply with statutory and other procedures
50-14 required for granting other permits issued by the commission.]
50-15 [(d)] The commission may prescribe rules and adopt fees
50-16 which are necessary to carry out the provisions of this section.
50-17 (k) [(e)] An emergency authorization [permit] does not vest
50-18 in the grantee [permittee] any right to the diversion, impoundment,
50-19 or [and] use of water and shall expire and be cancelled in
50-20 accordance with its terms.
50-21 SECTION 3.04. Subsection (c), Section 12.052, Water Code, is
50-22 amended to read as follows:
50-23 (c) If the owner of a dam that is required to be
50-24 constructed, reconstructed, repaired, or removed in order to comply
50-25 with the rules and orders promulgated under Subsection (a) of this
51-1 section wilfully fails or refuses to comply within the 30-day
51-2 period following the date of the commission's final, nonappealable
51-3 order to do so or if a person wilfully fails to comply with any
51-4 rule or other order issued by the commission under this section
51-5 within the 30-day period following the effective date of the order,
51-6 he is liable to a penalty of not more than $10,000 [$1,000] a day
51-7 for each day he continues to violate this section. The state may
51-8 recover the penalty by suit brought for that purpose in the
51-9 district court of Travis County.
51-10 SECTION 3.05. Section 16.236, Water Code, is amended to read
51-11 as follows:
51-12 Sec. 16.236. CONSTRUCTION OF LEVEE WITHOUT APPROVAL OF
51-13 PLANS; LEVEE SAFETY. (a) No person may construct, attempt to
51-14 construct, cause to be constructed, maintain, or cause to be
51-15 maintained any levee or other such improvement on, along, or near
51-16 any stream of this state that is subject to floods, freshets, or
51-17 overflows so as to control, regulate, or otherwise change the
51-18 floodwater of the stream without first obtaining approval of the
51-19 plans by the commission.
51-20 (b) The commission shall make and enforce rules and orders
51-21 and shall perform all other acts necessary to provide for the safe
51-22 construction, maintenance, repair, and removal of levees located in
51-23 this state.
51-24 (c) If the owner of a levee that is required to be
51-25 constructed, reconstructed, repaired, or removed to comply with the
52-1 rules and orders promulgated under this section wilfully fails or
52-2 refuses to comply within the 30-day period following the date of an
52-3 order of the commission requiring such action or compliance or if a
52-4 person wilfully fails to comply with any rule or order issued by
52-5 the commission under this section within the 30-day period
52-6 following the effective date of the order, the person is liable for
52-7 a penalty of not more than $10,000 a day for each day the person
52-8 continues to violate this section. The state may recover the
52-9 penalty by suit brought for that purpose in a district court of
52-10 Travis County.
52-11 (d) If the commission determines that the existing condition
52-12 of a levee is creating or will cause extensive or severe property
52-13 damage or economic loss to others or is posing an immediate and
52-14 serious threat to human life or health and that other procedures
52-15 available to the commission to remedy or prevent such property
52-16 damage or economic loss will result in unreasonable delay, the
52-17 commission may issue an emergency order, either mandatory or
52-18 prohibitory in nature, directing the owner of the levee to repair,
52-19 modify, maintain, dewater, or remove the levee which the commission
52-20 determines is unsafe. The emergency order may be issued without
52-21 notice to the levee owner or with notice the commission considers
52-22 practicable under the circumstances.
52-23 (e) If the commission issues an emergency order under
52-24 authority of this section without notice to the levee owner, the
52-25 commission shall fix a time and place for a hearing, to be held as
53-1 soon as practicable but not later than 20 days after the emergency
53-2 order is authorized, to affirm, modify, or set aside the emergency
53-3 order. If the nature of the commission's action requires further
53-4 proceedings, those proceedings shall be conducted, as appropriate,
53-5 under Chapter 2001, Government Code.
53-6 (f) Nothing in this section or in rules or orders adopted by
53-7 the commission shall be construed to relieve an owner or operator
53-8 of a levee of the legal duties, obligations, or liabilities
53-9 incident to ownership or operation.
53-10 (g) Any person who violates any provision of Subsection (a)
53-11 of this section is guilty of a Class C misdemeanor and upon
53-12 conviction is punishable by a fine of not more than $4,000 [$100].
53-13 A separate offense is committed each day a structure constructed in
53-14 violation of this section is maintained.
53-15 (h) Subsection (a) of this [(c) At the request of the
53-16 executive director, the attorney general shall file suit in a
53-17 district court of Travis County to enjoin any violation or
53-18 threatened violation of this section. In the suit, the attorney
53-19 general may seek to have the illegal levee or other improvement
53-20 removed and the preexisting conditions restored and may also
53-21 collect civil penalties of up to $100 a day for each day a
53-22 violation occurs.]
53-23 [(d) This] section does not apply to:
53-24 (1) any dam, reservoir, or canal system associated
53-25 with a water right issued or recognized by the commission [dams
54-1 permitted by the commission or recognized as valid by final decree
54-2 in any proceeding begun under Subchapter G, Chapter 11, of this
54-3 code];
54-4 (2) dams authorized by Section 11.142 of this code;
54-5 (3) a levee or other improvement within the corporate
54-6 limits of a city or town provided: (a) plans for the construction
54-7 or maintenance or both must be approved by the city or town as a
54-8 condition precedent to starting the project and (b) the city or
54-9 town requires that such plans be in substantial compliance with
54-10 rules and standards adopted by the commission; or
54-11 (4) a levee or other improvement within the boundaries
54-12 of any political subdivision which has qualified for the National
54-13 Flood Insurance Program as authorized by the National Flood
54-14 Insurance Act of 1968 (Title 42, U.S.C., Sections 4001-4127)
54-15 provided: (a) plans for the construction or maintenance or both
54-16 must be approved by the political subdivision which is
54-17 participating in the national flood insurance program as a
54-18 condition precedent to starting the project and (b) the political
54-19 subdivision requires that such plans be in substantial compliance
54-20 with rules and standards adopted by the commission;
54-21 (5) projects implementing soil and water conservation
54-22 practices set forth in a conservation plan with a landowner or
54-23 operator and approved by the governing board of a soil and water
54-24 conservation district organized under the State Soil Conservation
54-25 Law, as amended (Article 165a-4, Vernon's Texas Civil Statutes),
55-1 provided that the governing board finds the practices do not
55-2 significantly affect stream flooding conditions on, along, or near
55-3 a state stream; or
55-4 (6) any levee or other improvement constructed outside
55-5 of the 100-year floodway. For the purposes of this section,
55-6 "100-year floodway" is defined as the channel of a stream and the
55-7 adjacent land areas that must be reserved in order to discharge the
55-8 100-year flood without cumulatively increasing the water surface
55-9 elevation more than one foot above the 100-year flood elevation
55-10 prior to encroachment.
55-11 (i) [(e)] On projects located within the corporate limits of
55-12 a city or town or within the boundaries of any political
55-13 subdivision which are exempt from the provisions of Subsection (a)
55-14 of this section by Subdivision (3) or (4) of Subsection (h) of this
55-15 section [(d) above], any person whose property is located outside
55-16 of the corporate limits of such city or town or of the boundaries
55-17 of such a political subdivision and whose property is affected or
55-18 potentially affected by the effect of the project on the
55-19 floodwaters of the stream may appeal the decision of such political
55-20 subdivision. The appeal shall be in writing and shall specify the
55-21 grounds therefor and a copy shall be sent by certified mail to the
55-22 project applicant and to the city or town or such political
55-23 subdivision. The timely filing of such an appeal with the
55-24 executive director suspends the decision of the city or town or
55-25 political subdivision until a final decision is rendered by the
56-1 commission. The executive director shall review the complaint and
56-2 investigate the facts surrounding the nature of the complaint. If
56-3 the executive director finds that the complaint is frivolous or
56-4 nonmeritorious or made solely for purposes of harassment or delay,
56-5 then he shall dismiss the appeal. Otherwise, the executive
56-6 director shall refer the appeal to the commission which shall after
56-7 due notice hold a hearing to determine whether the project should
56-8 be approved using the standards established by the commission and
56-9 shall hear such appeal de novo under the procedural rules
56-10 established by the commission for other reclamation projects.
56-11 SECTION 3.06. Subchapter G, Chapter 16, Water Code, is
56-12 amended by adding Section 16.237 to read as follows:
56-13 Sec. 16.237. ADMINISTRATIVE PENALTY; CIVIL REMEDY. (a) If
56-14 a person violates a commission rule or order adopted under Section
56-15 16.236 of this code, the commission may assess an administrative
56-16 penalty against that person as provided by Section 11.0842 of this
56-17 code.
56-18 (b) Nothing in this chapter affects the right of any private
56-19 corporation, individual, or political subdivision that has a
56-20 justiciable interest in pursuing any available common-law remedy to
56-21 enforce a right or to prevent or seek redress or compensation for
56-22 the violation of a right or otherwise redress an injury.
56-23 ARTICLE 4. SURFACE WATER AND GROUNDWATER SUPPLIES
56-24 SECTION 4.01. Subsection (b), Section 11.134, Water Code, is
56-25 amended to read as follows:
57-1 (b) The commission shall grant the application only if:
57-2 (1) the application conforms to the requirements
57-3 prescribed by this chapter and is accompanied by the prescribed
57-4 fee;
57-5 (2) unappropriated water is available in the source of
57-6 supply;
57-7 (3) the proposed appropriation:
57-8 (A) is intended for a [contemplates the
57-9 application of water to any] beneficial use;
57-10 (B) does not impair existing water rights or
57-11 vested riparian rights; [and]
57-12 (C) is not detrimental to the public welfare;
57-13 [and]
57-14 (D) considers the effects of any hydrological
57-15 connection between surface water and groundwater; and
57-16 (E) addresses a water supply need in a manner
57-17 that is consistent with the state water plan and an approved
57-18 regional water plan for any area in which the proposed
57-19 appropriation is located, unless the commission determines that
57-20 conditions warrant waiver of this requirement; and
57-21 (4) the applicant has provided evidence that
57-22 reasonable diligence will be used to avoid waste and achieve water
57-23 conservation as defined by Subdivision (8)(B), Section 11.002, of
57-24 this code.
57-25 SECTION 4.02. Subchapter D, Chapter 11, Water Code, is
58-1 amended by adding Sections 11.1501 and 11.151 to read as follows:
58-2 Sec. 11.1501. CONSIDERATION AND REVISION OF PLANS. In
58-3 considering an application for a permit to store, take, or divert
58-4 surface water, or for an amendment to a permit, certified filing,
58-5 or certificate of adjudication, the commission shall consider the
58-6 state water plan and any approved regional water plan for the area
58-7 or areas in which the water is proposed to be stored, diverted, or
58-8 used.
58-9 Sec. 11.151. EFFECTS OF PERMITS ON GROUNDWATER. In
58-10 considering an application for a permit to store, take, or divert
58-11 surface water, the commission shall consider the effects, if any,
58-12 on groundwater or groundwater recharge.
58-13 SECTION 4.03. Section 11.153, Water Code, is amended by
58-14 amending the section heading and Subsections (a) and (d) to read as
58-15 follows:
58-16 Sec. 11.153. [PILOT] PROJECTS FOR STORAGE OF APPROPRIATED
58-17 WATER IN AQUIFERS.
58-18 (a) The commission shall investigate the feasibility of
58-19 storing appropriated water in various types of aquifers around the
58-20 state by encouraging the issuance of temporary or term permits for
58-21 [pilot] demonstration projects for the storage of appropriated
58-22 water for subsequent retrieval and beneficial use [in the following
58-23 aquifers in the specified counties:]
58-24 [(1) the Anacacho, Austin Chalk, and Glen Rose
58-25 Limestone aquifers in Bexar County and Medina County;]
59-1 [(2) the Carrizo-Wilcox aquifer in Bexar, Webb, Smith,
59-2 Wood, Rains, and Van Zandt counties;]
59-3 [(3) the Hickory and Ellenberger aquifers in Gillespie
59-4 County; and]
59-5 [(4) the Gulf Coast aquifer in Cameron and Hidalgo
59-6 counties].
59-7 (d) The commission shall only issue a [A] final order
59-8 granting a permit or amendment to a permit authorizing the storage
59-9 of appropriated water in aquifers for subsequent beneficial use
59-10 where completed pilot projects or historically demonstrated
59-11 projects have been shown to be feasible under the criteria provided
59-12 in Sections 11.154(c) and (d)[, other than for the pilot projects
59-13 authorized by this section, may not be issued before June 1, 1999].
59-14 SECTION 4.04. Subsections (a), (b), (c), and (e), Section
59-15 11.154, Water Code, are amended to read as follows:
59-16 (a) An application filed with the commission to undertake a
59-17 [pilot] project under Section 11.153 must include:
59-18 (1) the information required for an application for a
59-19 permit or permit amendment to appropriate state water;
59-20 (2) all information required for an application for a
59-21 permit for a Class V injection well without requiring a separate
59-22 hearing or notice; and
59-23 (3) a map or plat showing the injection facility and
59-24 the aquifer in which the water will be stored.
59-25 (b) If the application is for a permit or permit amendment
60-1 to store appropriated water in a groundwater [an underground water]
60-2 reservoir or a subdivision of a groundwater [an underground water]
60-3 reservoir, as defined by Chapter 36 [52], that is under the
60-4 jurisdiction of a groundwater [an underground water] conservation
60-5 district:
60-6 (1) the applicant shall:
60-7 (A) provide a copy of the application to each
60-8 groundwater [underground water] conservation district that has
60-9 jurisdiction over the reservoir or subdivision;
60-10 (B) cooperate with each district [the districts]
60-11 that has [have] jurisdiction over the reservoir or subdivision to
60-12 ensure compliance with the rules of each district;
60-13 (C) cooperate with each district that has
60-14 jurisdiction over the reservoir or subdivision to develop rules
60-15 regarding the injection, storage, and withdrawal of appropriated
60-16 water stored in the aquifer; and
60-17 (D) comply with the rules governing the
60-18 injection, storage, and [or] withdrawal of appropriated water
60-19 stored in the reservoir or subdivision that are adopted by each [a]
60-20 district that has jurisdiction over the reservoir or subdivision;
60-21 and
60-22 (2) the commission shall require that any agreement
60-23 the applicant reaches with a district that has jurisdiction over
60-24 the reservoir or subdivision regarding the terms for the injection,
60-25 storage, and withdrawal of appropriated water be included as a
61-1 condition of the permit or permit amendment.
61-2 (c) On [completion of a pilot project and] receipt of an
61-3 [appropriate] application for a permit or an amendment to an
61-4 existing permit from an applicant with a completed pilot or
61-5 historically demonstrated project, the commission shall evaluate
61-6 the success of the [pilot] project for purposes of issuing a final
61-7 order granting a permit or permit amendment authorizing the storage
61-8 of appropriated water incident to a beneficial use. The commission
61-9 shall consider whether:
61-10 (1) the introduction of water into the aquifer will
61-11 alter the physical, chemical, or biological quality of native
61-12 groundwater to a degree that the introduction would:
61-13 (A) render groundwater produced from the aquifer
61-14 harmful or detrimental to people, animals, vegetation, or property;
61-15 or
61-16 (B) require treatment of the groundwater to a
61-17 greater extent than the native groundwater requires before being
61-18 applied to that beneficial use;
61-19 (2) the water stored in the receiving aquifer can be
61-20 successfully harvested from the aquifer for beneficial use; and
61-21 (3) [the permit holder has provided evidence that]
61-22 reasonable diligence will be used to protect the water stored in
61-23 the receiving aquifer from unauthorized withdrawals to the extent
61-24 necessary to maximize the permit holder's ability to retrieve and
61-25 beneficially use the stored water without experiencing unreasonable
62-1 loss of appropriated water.
62-2 (e) A permit to store appropriated water in a groundwater
62-3 [an underground water] reservoir or subdivision, as defined by
62-4 Chapter 36 [52], shall provide as a condition to the permit that
62-5 the permit holder shall:
62-6 (1) register the permit holder's injection and
62-7 recovery wells with a groundwater [an underground water]
62-8 conservation district that has jurisdiction over the reservoir or
62-9 subdivision, if any; and
62-10 (2) each calendar month, provide the district, if any,
62-11 with a written report showing for the previous calendar month:
62-12 (A) the amount of water injected for storage;
62-13 and
62-14 (B) the amount of water recaptured for use.
62-15 SECTION 4.05. Subsection (b), Section 11.155, Water Code, is
62-16 amended to read as follows:
62-17 (b) The board shall make other studies, investigations, and
62-18 surveys of the aquifers in the state as it considers necessary to
62-19 determine the occurrence, quantity, quality, and availability of
62-20 other aquifers in which water may be stored and subsequently
62-21 retrieved for beneficial use. The board shall undertake the
62-22 studies, investigations, and surveys in the following order of
62-23 priority:
62-24 (1) the aquifers described [identified] in Section
62-25 11.153(a);
63-1 (2) areas designated by the commission as "priority
63-2 groundwater management [critical] areas" under Section 35.008
63-3 [52.053]; and
63-4 (3) other areas of the state in a priority to be
63-5 determined by the board's ranking of where the greatest need
63-6 exists.
63-7 SECTION 4.06. Subsection (b), Section 11.173, Water Code, is
63-8 amended to read as follows:
63-9 (b) A permit, certified filing, or certificate of
63-10 adjudication or a portion of a permit, certified filing, or
63-11 certificate of adjudication is exempt from cancellation under
63-12 Subsection (a) of this section:
63-13 (1) to the extent of the owner's participation in the
63-14 Conservation Reserve Program authorized by the Food Security Act,
63-15 Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985)
63-16 or a similar governmental program; or
63-17 (2) if any portion of the water authorized to be used
63-18 pursuant to a permit, certified filing, or certificate of
63-19 adjudication has been used in accordance with a regional water
63-20 [management] plan approved pursuant to Section 16.053 of this code
63-21 [by the commission].
63-22 SECTION 4.07. Subdivision (6), Section 15.001, Water Code,
63-23 is amended to read as follows:
63-24 (6) "Project" means:
63-25 (A) any undertaking or work to conserve, convey,
64-1 and develop [surface or subsurface] water resources in the state,
64-2 to provide for the maintenance and enhancement of the quality of
64-3 the water of the state, to provide nonstructural and structural
64-4 flood control, drainage, subsidence control, recharge, chloride
64-5 control, brush control, precipitation enhancement, and
64-6 desalinization, and to carry out other purposes defined by board
64-7 rules; [or]
64-8 (B) any undertaking or work outside the state to
64-9 provide for the maintenance and enhancement of the quality of water
64-10 by eliminating saline inflow through well pumping and deep well
64-11 injection of brine; or
64-12 (C) any undertaking or work by Texas political
64-13 subdivisions or institutions of higher education to conserve,
64-14 convey, and develop water resources in areas outside Texas or to
64-15 provide for the maintenance and enhancement of the quality of the
64-16 water in areas adjoining Texas, if such undertaking or work will
64-17 result in water being available for use in or for the benefit of
64-18 Texas or will maintain and enhance the quality of water in Texas.
64-19 SECTION 4.08. Subsection (b), Section 15.002, Water Code, is
64-20 amended to read as follows:
64-21 (b) The legislature finds that the conventional means of
64-22 financing projects are inadequate to meet current and anticipated
64-23 needs of the state. Therefore, it is the further intent of the
64-24 legislature to provide a means of coordinating the development of
64-25 projects [throughout the state] through the board and to provide
65-1 political subdivisions the maximum opportunity to finance projects
65-2 through programs provided by this chapter. Projects may be in the
65-3 state or outside the state, provided that out-of-state projects
65-4 must be funded through a Texas political subdivision or an
65-5 institution of higher education and must result in water being
65-6 available for use in or for the benefit of Texas or maintain and
65-7 enhance the quality of water in Texas.
65-8 SECTION 4.09. Section 17.895, Water Code, is amended by
65-9 amending Subsection (a) and adding Subsection (c) to read as
65-10 follows:
65-11 (a) The board or lender districts may make conservation
65-12 loans for capital equipment or materials, labor, preparation costs,
65-13 and installation costs:
65-14 (1) to improve water use efficiency of water delivery
65-15 and application on existing irrigation systems;
65-16 (2) for preparing irrigated land to be converted to
65-17 dryland conditions; [or]
65-18 (3) for preparing dryland for more efficient use of
65-19 natural precipitation;
65-20 (4) for preparing and maintaining land to be used for
65-21 brush control activities, including but not limited to activities
65-22 conducted pursuant to Chapter 203, Agriculture Code; or
65-23 (5) for implementing precipitation enhancement
65-24 activities in areas of the state where such activities would be, in
65-25 the board's judgment, most effective.
66-1 (c) The board may make conservation loans to borrower
66-2 districts for the cost of purchasing and installing devices, on
66-3 public or private property, designed to indicate the amount of
66-4 water withdrawn for irrigation purposes.
66-5 SECTION 4.10. Subdivision (12), Section 35.002, Water Code,
66-6 is amended to read as follows:
66-7 (12) "Priority groundwater management [Critical] area"
66-8 means an area designated and delineated by the commission as an
66-9 area that is experiencing or is expected to experience critical
66-10 groundwater problems.
66-11 SECTION 4.11. Section 35.007, Water Code, is amended to read
66-12 as follows:
66-13 Sec. 35.007. IDENTIFYING, DESIGNATING, AND DELINEATING
66-14 PRIORITY GROUNDWATER MANAGEMENT [CRITICAL] AREAS. (a) The
66-15 executive director and the executive administrator shall meet at
66-16 least once a year to identify, based on information gathered by the
66-17 commission and the Texas Water Development Board, those areas of
66-18 the state that are experiencing or that are expected to experience,
66-19 [based on information available to the commission and the Texas
66-20 Water Development Board,] within the immediately following 25-year
66-21 [20-year] period, critical groundwater problems, including
66-22 shortages of surface water or groundwater, land subsidence
66-23 resulting from groundwater withdrawal, and contamination of
66-24 groundwater supplies.
66-25 (b) If the executive director concludes that an area of the
67-1 state should be considered for designation as a priority
67-2 groundwater management [critical] area, the executive director
67-3 shall prepare a report to the commission.
67-4 (c) The executive director shall begin preparation of a
67-5 priority groundwater management [critical] area report by
67-6 requesting a study from the executive administrator. The study
67-7 must:
67-8 (1) include an appraisal of the hydrogeology of the
67-9 area and matters within the Texas Water Development Board's
67-10 planning expertise relevant to the area;
67-11 (2) assess the area's immediate, short-term, and
67-12 long-term water supply and needs; and
67-13 (3) [. The study must] be completed and delivered to
67-14 the executive director on or before the 180th [90th] day following
67-15 the date of the request. If the study is not delivered within this
67-16 180-day [90-day] period, the executive director may proceed with
67-17 the preparation of the report.
67-18 (d) The executive director shall request a study from the
67-19 executive director of the Parks and Wildlife Department for the
67-20 purpose of preparing the report required by this section. The
67-21 study must:
67-22 (1) evaluate the potential effects of the designation
67-23 of a priority groundwater management area on an area's natural
67-24 resources; and
67-25 (2) be completed and delivered to the executive
68-1 director on or before the 180th day following the date of the
68-2 request. If the study is not delivered within this 180-day period,
68-3 the executive director may proceed with the preparation of the
68-4 report.
68-5 (e) The report shall include:
68-6 (1) the recommended delineation of the boundaries of
68-7 any proposed priority groundwater management [critical] area in the
68-8 form of an order [a rule] to be considered for adoption by the
68-9 commission;
68-10 (2) the reasons and supporting information for or
68-11 against designating the area as a priority groundwater management
68-12 [critical] area;
68-13 (3) a recommendation regarding whether a district
68-14 should be created in the priority groundwater management [critical]
68-15 area or whether the priority groundwater management [critical] area
68-16 should be added to an existing district;
68-17 (4) a recommendation as to actions that should be
68-18 considered to conserve natural resources; and
68-19 (5) any other information that the executive director
68-20 considers helpful to the commission.
68-21 (f) [(e)] The executive director must complete the report
68-22 and file it with the commission on or before the 240th [210th] day
68-23 following the date on which the executive administrator was
68-24 requested to produce a study. The executive director shall make
68-25 the report available for public inspection by providing a copy of
69-1 the report to at least one public library and the county clerk's
69-2 office in each county in which the proposed priority groundwater
69-3 management [critical] area is located and to all districts adjacent
69-4 to the area of the proposed priority groundwater management area.
69-5 (g) [(f)] To carry out this section, the executive director
69-6 may make necessary studies, hold hearings, solicit and collect
69-7 information, and use information already prepared by the executive
69-8 director or the executive administrator for other purposes.
69-9 SECTION 4.12. Section 35.008, Water Code, is amended to read
69-10 as follows:
69-11 Sec. 35.008. PROCEDURES FOR DESIGNATION OF PRIORITY
69-12 GROUNDWATER MANAGEMENT AREA; CONSIDERATION OF CREATION OF DISTRICT
69-13 OR ADDITION OF LAND IN PRIORITY GROUNDWATER MANAGEMENT AREA TO
69-14 EXISTING DISTRICT [CRITICAL AREAS]. (a) The commission shall
69-15 designate priority groundwater management [critical] areas using
69-16 the procedures provided by this chapter in lieu of those provided
69-17 by [applicable to rulemaking under the Administrative Procedure
69-18 Act,] Subchapter B, Chapter 2001, Government Code[, but if
69-19 procedures required by this chapter are in conflict with that Act,
69-20 this chapter controls].
69-21 (b) The commission shall call an evidentiary hearing to
69-22 consider:
69-23 (1) the designation of a priority groundwater
69-24 management area;
69-25 (2) whether a district should be created over all or
70-1 part of a priority groundwater management area; or
70-2 (3) whether all or part of the land in the priority
70-3 groundwater management area should be added to an existing
70-4 district.
70-5 (c) Evidentiary hearings shall be held at a location in one
70-6 of the counties in which the priority groundwater management area
70-7 is located, or proposed to be located, or in the nearest convenient
70-8 location if adequate facilities are not available in those
70-9 counties.
70-10 (d) At the hearing, the commission shall hear testimony and
70-11 receive evidence from affected persons. The commission shall
70-12 consider the executive director's report and supporting information
70-13 and the testimony and evidence received at the hearing. If the
70-14 commission considers further information necessary, the commission
70-15 may request such information from any source.
70-16 (e) The designation of a priority groundwater management
70-17 [critical] area may not be appealed nor may it be challenged under
70-18 the Administrative Procedure Act, Section 2001.038, Government
70-19 Code.
70-20 SECTION 4.13. Section 35.009, Water Code, is amended to read
70-21 as follows:
70-22 Sec. 35.009. NOTICE AND HEARING. (a) The [In addition to
70-23 the notice required for rulemaking under the Administrative
70-24 Procedure Act, Section 2001.023, Government Code, the] commission
70-25 shall have notice of the hearing published in at least one
71-1 newspaper with general circulation in the county or counties in
71-2 which the area being designated a proposed priority groundwater
71-3 management [critical] area or the area within a priority
71-4 groundwater management area being considered for district creation
71-5 or for addition to an existing district is [to be] located. Notice
71-6 must be published not later than the 30th day before the date set
71-7 for the commission to consider the designation of the priority
71-8 groundwater management [critical] area, the creation of a district
71-9 in a priority groundwater management area, or the addition of land
71-10 in a priority groundwater management area to an existing district.
71-11 (b) The notice must include:
71-12 (1) if applicable, a statement of the general purpose
71-13 and effect of designating the proposed priority groundwater
71-14 management area [critical areas];
71-15 (2) if applicable, a statement of the general purpose
71-16 and effect of creating a district in the priority groundwater
71-17 management area;
71-18 (3) if applicable, a statement of the general purpose
71-19 and effect of adding all or part of the land in the priority
71-20 groundwater management area to an existing district;
71-21 (4) a map generally outlining the boundaries of the
71-22 area being considered for priority groundwater management [proposed
71-23 critical] area designation or the priority groundwater management
71-24 area being considered for district creation or for addition to an
71-25 existing district, or notice of the location at which a copy of the
72-1 map may be examined or obtained;
72-2 (5) a statement that the executive director's report
72-3 concerning the priority groundwater management area or proposed
72-4 area is available at the commission's main office in Austin, Texas,
72-5 and at regional offices of the commission for regions which include
72-6 territory within the priority groundwater management area or
72-7 proposed priority groundwater management area and that the report
72-8 is available for inspection during regular business hours;
72-9 (6) [(3)] a description or the name of the locations
72-10 in the affected area at which the commission has provided copies of
72-11 the executive director's report to be made available for public
72-12 inspection;
72-13 (7) the name and address of each public library, each
72-14 county clerk's office, and each district to which the commission
72-15 has provided copies of the executive director's report; and
72-16 (8) [(4)] the date, time, and place of the hearing [at
72-17 which the commission will consider the designation of the critical
72-18 areas].
72-19 (c) The commission shall also give written notice of the
72-20 date, time, place, and purpose of the hearing to the governing body
72-21 of each county, regional water planning group, adjacent groundwater
72-22 district, municipality, river authority, water district, or other
72-23 entity which supplies public drinking water, and of each irrigation
72-24 district, located either in whole or in part in the priority
72-25 groundwater management area or proposed priority groundwater
73-1 management area. The notice must be given before the 30th day
73-2 preceding the date set for the hearing.
73-3 SECTION 4.14. Subsections (b), (c), (d), and (e), Section
73-4 35.012, Water Code, are amended to read as follows:
73-5 (b) If the commission finds that the land and other property
73-6 in the priority groundwater management [critical] area would
73-7 benefit from the creation of one or more districts, that there is a
73-8 public need for one or more districts, and that the creation of one
73-9 or more districts would further the public welfare, the commission
73-10 shall issue an order stating that the creation of one or more
73-11 districts is needed.
73-12 (c) Following [During the period between] the [date of]
73-13 issuance of a commission order under Subsection (b) [and one year
73-14 after the close of the next regular session of the legislature
73-15 following the issuance of the order], the landowners in the
73-16 priority groundwater management [critical] area may:
73-17 (1) create one or more districts under Subchapter B,
73-18 Chapter 36;
73-19 (2) have the area annexed to a district that adjoins
73-20 the area; or
73-21 (3) create one or more districts through the
73-22 legislative process.
73-23 (d) The commission shall identify the areas subject to the
73-24 order of the commission issued under Subsection (b) that have not[,
73-25 in the period provided by Subsection (c),] been incorporated into a
74-1 district[,] and shall delineate proposed boundaries of a district
74-2 to include those areas. If the commission proposes the creation of
74-3 one or more districts, the Texas Agricultural Extension Service
74-4 [commission] shall begin an educational program within such areas
74-5 with the assistance of the Texas Water Development Board, the
74-6 commission, other state agencies, and existing districts to inform
74-7 the residents of the status of the area's water resources and
74-8 management options including possible formation of a district,
74-9 before beginning the procedures for creation of a district provided
74-10 in Subchapter B, Chapter 36.
74-11 (e) If the commission fails to find that the district would
74-12 be a benefit to the land and other property within the priority
74-13 groundwater management [critical] area, that there is a public need
74-14 for the district, or that creation of the district will further the
74-15 public welfare, the commission shall issue an order stating that a
74-16 district should not be created within the boundaries of the
74-17 priority groundwater management [critical] area.
74-18 SECTION 4.15. Section 35.013, Water Code, is amended to read
74-19 as follows:
74-20 Sec. 35.013. ADDING PRIORITY GROUNDWATER MANAGEMENT
74-21 [CRITICAL] AREA TO EXISTING DISTRICT. (a) If land in a priority
74-22 groundwater management [critical] area is located adjacent to one
74-23 or more existing districts, the commission, instead of issuing an
74-24 order under Section 35.012, may issue an order recommending that
74-25 the priority groundwater management [critical] area be added to the
75-1 existing district designated by the commission. In its order, the
75-2 commission must find that the land and other property in the
75-3 priority groundwater management [critical] area and the land in the
75-4 existing district will benefit from the addition of the area, that
75-5 there is a public need to add the priority groundwater management
75-6 [critical] area to the existing district, and that the addition of
75-7 the land to the existing district would further the public welfare.
75-8 (b) If the executive director recommends that the priority
75-9 groundwater management [critical] area be added to an existing
75-10 district or if the commission considers it possible to add the
75-11 priority groundwater management [critical] area to an adjacent
75-12 existing district, the commission shall give notice to the board of
75-13 the existing district recommended by the executive director or
75-14 considered by the commission to possibly serve the area and to any
75-15 other existing districts adjacent to the priority groundwater
75-16 management [critical] area.
75-17 (c) The commission shall submit a copy of the order to the
75-18 board of the district to which it is recommending the priority
75-19 groundwater management [critical] area be added. The board shall
75-20 vote on the addition of the priority groundwater management
75-21 [critical] area to the district and shall advise the commission of
75-22 the outcome.
75-23 (d) If the board votes to accept the addition of the
75-24 priority groundwater management [critical] area to the district,
75-25 the board:
76-1 (1) may request the Texas Agricultural Extension
76-2 Service, the commission, the Texas Water Development Board, and
76-3 other state agencies to administer an educational program to inform
76-4 the residents of the status of the area's water resources and
76-5 management options including possible annexation into a district;
76-6 and
76-7 (2) shall call an election within the priority
76-8 groundwater management [critical] area as delineated by the
76-9 commission to determine if the priority groundwater management
76-10 [critical] area will be added to the district; and
76-11 (3) [In the order calling the election, the board]
76-12 shall designate election precincts and polling places for the
76-13 elections in the order calling an election under this subsection.
76-14 (e) The board shall give notice of the election and the
76-15 proposition to be voted on. The board shall publish notice of the
76-16 election at least one time in one or more newspapers with general
76-17 circulation within the boundaries of the priority groundwater
76-18 management [critical] area. The notice must be published before
76-19 the 30th day preceding the date set for the election.
76-20 (f) The ballots for the election shall be printed to provide
76-21 for voting for or against the proposition: "The inclusion of
76-22 __________ (briefly describe priority groundwater management
76-23 [critical] area) in the __________ District." If the district has
76-24 outstanding debts or taxes [issued bonds], the proposition shall
76-25 include the following language: "and assumption by the described
77-1 area of a proportional share of the debts or taxes [outstanding
77-2 indebtedness] of the district."
77-3 (g) Immediately after the election, the presiding judge of
77-4 each polling place shall deliver the returns of the election to the
77-5 board, and the board shall canvass the returns for the election
77-6 within the priority groundwater management [critical] area and
77-7 declare the results. If a majority of the voters in the priority
77-8 groundwater management [critical] area voting on the proposition
77-9 vote in favor of the proposition, the board shall declare that the
77-10 priority groundwater management [critical] area is added to the
77-11 district. If a majority of the voters in the priority groundwater
77-12 management [critical] area voting on the proposition vote against
77-13 adding the priority groundwater management [critical] area to the
77-14 district, the board shall declare that the priority groundwater
77-15 management [critical] area is not added to the district. The board
77-16 shall file a copy of the election results with the commission.
77-17 (h) If the voters approve adding the priority groundwater
77-18 management [critical] area to the district, the board of the
77-19 district to which the priority groundwater management [critical]
77-20 area is added shall provide reasonable representation on that board
77-21 compatible with the district's existing scheme of representation.
77-22 (i) If the proposition is defeated, another election to add
77-23 the priority groundwater management [critical] area to an existing
77-24 district may not be called before the first anniversary of the date
77-25 on which the election on the proposition was held.
78-1 SECTION 4.16. Subsections (b) and (c), Section 35.014, Water
78-2 Code, are amended to read as follows:
78-3 (b) The costs of an election to add a priority groundwater
78-4 management [critical] area to an existing district at which the
78-5 voters approve adding the priority groundwater management
78-6 [critical] area to the district shall be paid by the existing
78-7 district.
78-8 (c) The costs of an election to create a district or add a
78-9 priority groundwater management [critical] area to an existing
78-10 district at which the proposition fails shall be paid by the
78-11 commission.
78-12 SECTION 4.17. Section 35.015, Water Code, is amended to read
78-13 as follows:
78-14 Sec. 35.015. STATE ASSISTANCE. [(a) A political
78-15 subdivision located in or that has within its boundaries an area or
78-16 part of an area delineated as a critical area, and in which the
78-17 qualified voters fail to approve the creation of a district or to
78-18 join an existing district, shall not be eligible to receive any
78-19 financial assistance from the state under Chapter 15, 16, or 17 for
78-20 use within that portion of the critical area not covered by a
78-21 district.]
78-22 [(b)] A political subdivision located in an area delineated
78-23 as a priority groundwater management [critical] area, and in which
78-24 qualified voters approve the creation of a district or annexation
78-25 into an existing district, shall be given consideration to receive
79-1 financial assistance from the state under Chapter 17 for funds to
79-2 be used in addressing issues identified in the priority groundwater
79-3 management [critical] area report in the manner provided by
79-4 Sections 17.124 and 17.125[, except that the board is not required
79-5 to make the finding set out in Section 17.125(a)(2)].
79-6 SECTION 4.18. Section 35.017, Water Code, is amended to read
79-7 as follows:
79-8 Sec. 35.017. STATE-OWNED LAND. If state-owned land or a
79-9 portion of state-owned land is located in a priority groundwater
79-10 management [critical] area, the state agency that has management
79-11 and control over that land under the constitution or by statute may
79-12 elect by written agreement with the commission and the district to
79-13 include the state-owned land in the district. The agreement shall
79-14 be entered into as provided by the Texas Intergovernmental
79-15 Cooperation Act, Chapter 741, Government Code, and may include
79-16 provisions for the payment by the state agency of reasonable fees
79-17 to the district. If the state does not elect to enter into the
79-18 agreement to include the state-owned land in the district, the
79-19 state agency must establish a groundwater management plan that will
79-20 conserve, protect, and prevent the waste of groundwater on that
79-21 state-owned land.
79-22 SECTION 4.19. Chapter 35, Water Code, is amended by adding
79-23 Section 35.018 to read as follows:
79-24 Sec. 35.018. REPORTS. (a) No later than January 31 of each
79-25 odd-numbered year, the commission in conjunction with the Texas
80-1 Water Development Board shall prepare and deliver to the governor,
80-2 the lieutenant governor, and the speaker of the house of
80-3 representatives a comprehensive report concerning activities during
80-4 the preceding two years relating to the designation of priority
80-5 groundwater management areas by the commission and the creation and
80-6 operation of districts.
80-7 (b) The report must include:
80-8 (1) the names and locations of all priority
80-9 groundwater management areas and districts created or attempted to
80-10 be created on or after November 5, 1985, the effective date of
80-11 Chapter 133 (H.B. No. 2), Acts of the 69th Legislature, Regular
80-12 Session, 1985;
80-13 (2) the authority under which each priority
80-14 groundwater management area and district was proposed for creation;
80-15 (3) a detailed analysis of each election held to
80-16 confirm the creation of a district, including analysis of election
80-17 results, possible reasons for the success or failure to confirm the
80-18 creation of a district, and the possibility for future voter
80-19 approval of districts in areas in which attempts to create
80-20 districts failed;
80-21 (4) a detailed analysis of the activities of each
80-22 district created, including those districts which are implementing
80-23 management plans certified under Section 36.1072;
80-24 (5) a report on audits performed on districts under
80-25 Section 36.302 and remedial actions taken under Section 36.303;
81-1 (6) recommendations for changes in this chapter and
81-2 Chapter 36 that will facilitate the creation of priority
81-3 groundwater management areas and the creation and operation of
81-4 districts;
81-5 (7) a report on educational efforts in newly
81-6 designated priority groundwater management areas; and
81-7 (8) any other information and recommendations that the
81-8 commission considers relevant.
81-9 (c)(1) If voters fail to create a groundwater district in a
81-10 priority groundwater management area or if voters fail to add the
81-11 priority groundwater management area to an existing groundwater
81-12 district, the report shall include recommendations for the future
81-13 management of the priority groundwater management area. The
81-14 recommendations may include but are not limited to the following:
81-15 (A) creation of a groundwater district by the
81-16 legislature;
81-17 (B) annexation of a priority groundwater
81-18 management area into an existing district by the legislature; or
81-19 (C) management of the priority groundwater
81-20 management area by the nearest regional office of the commission.
81-21 The commission may be authorized to:
81-22 (i) adopt spacing and annual per acre
81-23 pumping restrictions;
81-24 (ii) issue well permits in accordance with
81-25 Section 36.113 and 36.1131;
82-1 (iii) prevent waste and protect the
82-2 quality of groundwater in accordance with Section 36.001(8)(A)-(G);
82-3 (iv) levy administrative penalties for
82-4 violations; and
82-5 (v) collect fees in accordance with
82-6 Sections 36.206(a) and (b).
82-7 (2) If the commission is required by the legislature
82-8 to manage the priority groundwater management area, a new election
82-9 may not be called for three years from the date of the last
82-10 election.
82-11 SECTION 4.20. Section 36.001, Water Code, is amended by
82-12 amending Subdivision (14) and adding Subdivisions (16) and (17) to
82-13 read as follows:
82-14 (14) "Priority groundwater management [Critical] area"
82-15 means an area designated and delineated by the commission under
82-16 Chapter 35 as an area experiencing or expected to experience
82-17 critical groundwater problems.
82-18 (16) "Loan fund" means the groundwater district loan
82-19 assistance fund created under Section 36.371.
82-20 (17) "Applicant" means a newly confirmed district
82-21 applying for a loan from the loan fund.
82-22 SECTION 4.21. Subsection (c), Section 36.012, Water Code, is
82-23 amended to read as follows:
82-24 (c) The boundaries of a district must be coterminous with or
82-25 inside the boundaries of a management area or a priority
83-1 groundwater management [critical] area.
83-2 SECTION 4.22. Subsection (d), Section 36.013, Water Code, is
83-3 amended to read as follows:
83-4 (d) If a part of the proposed district is not included
83-5 within either a management area or a priority groundwater
83-6 management [critical] area, the petition to create a district may
83-7 also contain a request to create a management area. A request to
83-8 create a management area must comply with the requirements for a
83-9 petition in Section 35.005, and may be acted on by the commission
83-10 separately from the petition to create the district.
83-11 SECTION 4.23. Subchapter B, Chapter 36, Water Code, is
83-12 amended by adding Section 36.0151 to read as follows:
83-13 Sec. 36.0151. CREATION OF DISTRICT FOR PRIORITY GROUNDWATER
83-14 MANAGEMENT AREA. (a) If the commission proposes that a district
83-15 be created under Section 35.012(d), it shall in its order creating
83-16 the district provide that temporary directors be appointed under
83-17 Section 36.016 and that an election be called by the temporary
83-18 directors to confirm the creation of the district and to elect
83-19 permanent directors.
83-20 (b) The commission shall notify the county commissioners
83-21 court of each county with territory in the district of the
83-22 district's creation as soon as practicable after issuing the order
83-23 creating the district.
83-24 SECTION 4.24. Section 36.016, Water Code, is amended to read
83-25 as follows:
84-1 Sec. 36.016. APPOINTMENT OF TEMPORARY DIRECTORS. (a) If
84-2 the commission grants a petition to create a district under Section
84-3 36.015 or after the commission dissolves a district's board under
84-4 Section 36.303, it shall appoint five temporary directors.
84-5 (b) If the commission creates a district under Section
84-6 36.0151, the county commissioners court or courts of the county or
84-7 counties that contain the area of the district shall, within 90
84-8 days after receiving notification by the commission under Section
84-9 36.0151(b), appoint five temporary directors, or more if the
84-10 district contains the territory of more than five counties, for the
84-11 district's board using the method provided by Section 36.0161. A
84-12 county commissioners court shall not make any appointments after
84-13 the expiration of the 90-day period. If fewer than five temporary
84-14 directors have been appointed at the expiration of the period, the
84-15 commission shall appoint additional directors so that the board has
84-16 at least five members.
84-17 (c) Temporary directors appointed under this section [who]
84-18 shall serve until the initial directors are elected and have
84-19 qualified for office or until the voters fail to approve the
84-20 creation of the district.
84-21 (d) [(b)] If an appointee of the commission or of a county
84-22 commissioners court fails to qualify or if a vacancy occurs in the
84-23 office of temporary director, the commission or the county
84-24 commissioners court, as appropriate, shall appoint an individual to
84-25 fill the vacancy.
85-1 (e) [(c)] As soon as all temporary directors have qualified,
85-2 the directors shall meet, take the oath of office, and elect a
85-3 chairman and vice chairman from among their membership. The
85-4 chairman shall preside at all meetings of the board and, in the
85-5 chairman's absence, the vice chairman shall preside.
85-6 SECTION 4.25. Subchapter B, Chapter 36, Water Code, is
85-7 amended by adding Section 36.0161 to read as follows:
85-8 Sec. 36.0161. METHOD FOR APPOINTING TEMPORARY DIRECTORS FOR
85-9 DISTRICT IN PRIORITY GROUNDWATER MANAGEMENT AREA. (a) If a
85-10 district in a priority groundwater management area is:
85-11 (1) contained within one county, the county
85-12 commissioners court of that county shall appoint five temporary
85-13 directors for the district;
85-14 (2) contained within two counties, the county
85-15 commissioners court of each county shall appoint at least one
85-16 temporary director, with the appointments of the three remaining
85-17 directors to be apportioned as provided by Subsection (b);
85-18 (3) contained within three counties, the county
85-19 commissioners court of each county shall appoint at least one
85-20 temporary director, with the appointments of the two remaining
85-21 directors to be apportioned as provided by Subsection (b);
85-22 (4) contained within four counties, the county
85-23 commissioners court of each county shall appoint at least one
85-24 temporary director, with the appointment of the remaining director
85-25 to be apportioned as provided by Subsection (b); or
86-1 (5) contained within five or more counties, the county
86-2 commissioners court of each county shall appoint one temporary
86-3 director.
86-4 (b)(1) In this subsection, "estimated groundwater use" means
86-5 the estimate of groundwater use in acre-feet developed by the
86-6 commission under Subsection (c) for the area of a county that is
86-7 within the district.
86-8 (2) The apportionment of appointments under Subsection
86-9 (a) shall be made by the commission so as to reflect, as closely as
86-10 possible, the proportion each county's estimated groundwater use
86-11 bears to the sum of the estimated groundwater use for the district
86-12 as determined under Subsection (c). The commission shall by rule
86-13 determine the method it will use to implement this subdivision.
86-14 (c) If a district for which temporary directors are to be
86-15 appointed is contained within two, three, or four counties, the
86-16 commission shall develop an estimate of annual groundwater use in
86-17 acre-feet for each county area within the district.
86-18 SECTION 4.26. Section 36.052, Water Code, is amended to read
86-19 as follows:
86-20 Sec. 36.052. OTHER LAWS NOT APPLICABLE. (a) Other laws
86-21 governing the administration or operations of districts created
86-22 under Section 52, Article III, or Section 59, Article XVI, Texas
86-23 Constitution, shall not apply to any district governed by this
86-24 chapter. This chapter prevails over any other law in conflict or
86-25 inconsistent with this chapter, except any special law governing a
87-1 specific district shall prevail over this chapter.
87-2 (b) Notwithstanding Subsection (a), the following provisions
87-3 prevail over a conflicting or inconsistent provision of a special
87-4 law that governs a specific district:
87-5 (1) Sections 36.107-36.108;
87-6 (2) Sections 36.159-36.161; and
87-7 (3) Subchapter I.
87-8 SECTION 4.27. Subchapter D, Chapter 36, Water Code, is
87-9 amended by amending Section 36.107 and adding Sections 36.1071,
87-10 36.1072, and 36.1073 to read as follows:
87-11 Sec. 36.107. RESEARCH [AND PLANNING]. [(a)] A district may
87-12 carry out any research projects deemed necessary by the board.
87-13 Sec. 36.1071. MANAGEMENT PLAN. (a)[(b)] Following notice
87-14 and hearing, the district shall, in coordination with surface water
87-15 management entities on a regional basis, develop a comprehensive
87-16 management plan which addresses the following management goals, as
87-17 applicable:
87-18 (1) providing the most efficient use of groundwater;
87-19 (2) controlling and preventing waste of groundwater;
87-20 (3) controlling and preventing subsidence;
87-21 (4) addressing conjunctive surface water management
87-22 issues; and
87-23 (5) addressing natural resource issues.
87-24 (b) A district management plan, or any amendments to a
87-25 district management plan, adopted after the Texas Water Development
88-1 Board approval of a regional water plan for the region in which the
88-2 district is located shall be consistent with the regional water
88-3 plan.
88-4 (c) The commission and the Texas Water Development Board
88-5 shall provide technical assistance to a district in the development
88-6 of the management plan required under Subsection (a) which may
88-7 include, if requested by the district, a preliminary review and
88-8 comment on the plan prior to final approval by the board. If such
88-9 review and comment by the commission is requested, the commission
88-10 shall provide comment not later than 30 days from the date the
88-11 request is received.
88-12 (d) The commission shall provide technical assistance to a
88-13 district during its initial operational phase.
88-14 (e) In the management plan described under Subsection (a),
88-15 the district shall:
88-16 (1) identify the performance standards and management
88-17 objectives under which the district will operate to achieve the
88-18 management goals identified under Subsection (a);
88-19 (2) specify, in as much detail as possible, the
88-20 actions, procedures, performance, and avoidance that are or may be
88-21 necessary to effect the plan, including specifications and proposed
88-22 rules;
88-23 (3) include estimates of the following:
88-24 (A) the existing total usable amount of
88-25 groundwater in the district;
89-1 (B) the amount of groundwater being used within
89-2 the district on an annual basis;
89-3 (C) the annual amount of recharge, if any, to
89-4 the groundwater resources within the district and how natural or
89-5 artificial recharge may be increased; and
89-6 (D) the projected water supply and demand for
89-7 water within the district; and
89-8 (4) address water supply needs in a manner that is not
89-9 in conflict with the appropriate approved regional water plan if a
89-10 regional water plan has been approved under Section 16.053 [for the
89-11 most efficient use of the groundwater, for controlling and
89-12 preventing waste of groundwater, and for controlling and preventing
89-13 subsidence. The plan may be reviewed annually but must be reviewed
89-14 by the board at least once every five years].
89-15 (f) [(c) The district shall specify in the management plan,
89-16 in as much detail as possible, the acts, procedures, performance,
89-17 and avoidance that are or may be necessary to effect the plan,
89-18 including specifications and proposed rules.] The district shall
89-19 adopt rules necessary to implement the management plan.
89-20 (g) The board shall adopt amendments to the management plan
89-21 as necessary. Amendments to the management plan shall be adopted
89-22 after notice and hearing and shall otherwise comply with the
89-23 requirements of this section.
89-24 Sec. 36.1072. TEXAS WATER DEVELOPMENT BOARD REVIEW AND
89-25 CERTIFICATION OF MANAGEMENT PLAN. (a) A [The] district shall, not
90-1 later than two years after the creation of the district or, if the
90-2 district required confirmation, after the election confirming the
90-3 district's creation, submit [file a copy of] the management plan
90-4 required under Section 36.1071 to [and the rules with] the Texas
90-5 Water Development Board for review and certification [commission].
90-6 (b) Within 60 days of receipt of a management plan adopted
90-7 under Section 36.1071, the Texas Water Development Board shall
90-8 certify a management plan if the plan is administratively complete.
90-9 A management plan is administratively complete when it contains the
90-10 information required to be submitted under Section 36.1071. The
90-11 Texas Water Development Board may determine that conditions justify
90-12 waiver of the requirements under Section 36.1071(e)(4).
90-13 (c) Once a determination that a management plan is
90-14 administratively complete has been made:
90-15 (1) the Texas Water Development Board may not revoke
90-16 the determination that a management plan is administratively
90-17 complete;
90-18 (2) the Texas Water Development Board may request
90-19 additional information from the district if the information is
90-20 necessary to clarify, modify, or supplement previously submitted
90-21 material; and
90-22 (3) a request for additional information does not
90-23 render the management plan incomplete.
90-24 (d) A management plan takes effect on certification by the
90-25 Texas Water Development Board.
91-1 (e) The board may review the plan annually and must review
91-2 and readopt the plan with or without revisions at least once every
91-3 five years.
91-4 (f) If the Texas Water Development Board does not certify
91-5 the management plan, the Texas Water Development Board shall
91-6 provide to the district, in writing, the reasons for its action.
91-7 Not later than the 180th day after the date a district receives
91-8 notice that its management plan has not been certified, the
91-9 district may submit a revised management plan for review and
91-10 certification. The commission shall not take enforcement action
91-11 against a district under Subchapter I until the later of the
91-12 expiration of the 180-day period or the date the Texas Water
91-13 Development Board has taken final action withholding certification
91-14 of a revised management plan.
91-15 Sec. 36.1073. AMENDMENT TO MANAGEMENT PLAN. Any amendment
91-16 to the management plan shall be submitted to the Texas Water
91-17 Development Board within 60 days following adoption of the
91-18 amendment by the district's board. The Texas Water Development
91-19 Board shall review and certify any amendment which substantially
91-20 affects the management plan in accordance with the procedures
91-21 established under Section 36.1072.
91-22 SECTION 4.28. Subsection (a), Section 36.108, Water Code, is
91-23 amended to read as follows:
91-24 (a) If two or more districts are located within the
91-25 boundaries of the same management area, each district shall prepare
92-1 a comprehensive management plan as required by Section 36.1071
92-2 [36.107] covering that district's respective territory. On
92-3 completion of the plan, each district shall forward a copy of the
92-4 new revised management plan to the other districts in the
92-5 management area.
92-6 SECTION 4.29. Section 36.113, Water Code, is amended to read
92-7 as follows:
92-8 Sec. 36.113. PERMITS FOR WELLS. (a) A district shall
92-9 require permits for the drilling, equipping, or completing of
92-10 wells[,] or for substantially altering the size of wells or well
92-11 pumps.
92-12 (b) A district shall require that an application for a
92-13 permit be in writing and sworn to.
92-14 (c) A district may require that the following be included in
92-15 the permit application:
92-16 (1) the name and mailing address of the applicant and
92-17 the owner of the land on which the well will be located;
92-18 (2) if the applicant is other than the owner of the
92-19 property, documentation establishing the applicable authority to
92-20 construct and operate a well for the proposed use;
92-21 (3) a statement of the nature and purpose of the
92-22 proposed use and the amount of water to be used for each purpose;
92-23 (4) a water conservation plan or a declaration that
92-24 the applicant will comply with the district's management plan;
92-25 (5) the location of each well and the estimated rate
93-1 at which water will be withdrawn;
93-2 (6) a water well closure plan or a declaration that
93-3 the applicant will comply with well plugging guidelines and report
93-4 closure to the commission; and
93-5 (7) a drought contingency plan.
93-6 (d) Before granting or denying a permit, the district shall
93-7 consider whether:
93-8 (1) the application conforms to the requirements
93-9 prescribed by this chapter and is accompanied by the prescribed
93-10 fees;
93-11 (2) the proposed use of water unreasonably affects
93-12 existing groundwater and surface water resources;
93-13 (3) the proposed use of water is dedicated to any
93-14 beneficial use;
93-15 (4) the proposed use of water is consistent with the
93-16 district's certified water management plan;
93-17 (5) the applicant has agreed to avoid waste and
93-18 achieve water conservation; and
93-19 (6) the applicant has agreed that reasonable diligence
93-20 will be used to protect groundwater quality and that the applicant
93-21 will follow well plugging guidelines at the time of well closure.
93-22 (e) Permits may be issued subject to the rules promulgated
93-23 by the district and subject to terms and provisions with reference
93-24 to the drilling, equipping, completion, or alteration of wells or
93-25 pumps that may be necessary to [conserve the groundwater,] prevent
94-1 waste and achieve water conservation, minimize as far as
94-2 practicable the drawdown of the water table or the reduction of
94-3 artesian pressure, lessen interference between wells, or control
94-4 and prevent subsidence.
94-5 (f) A district may require that changes in the withdrawal
94-6 and use of groundwater under a permit not be made without the prior
94-7 approval of a permit amendment issued by the district.
94-8 SECTION 4.30. Subchapter D, Chapter 36, Water Code, is
94-9 amended by adding Section 36.1131 to read as follows:
94-10 Sec. 36.1131. ELEMENTS OF PERMIT. (a) A permit issued by
94-11 the district to the applicant under Section 36.113 shall state the
94-12 terms and provisions prescribed by the district.
94-13 (b) The permit may include:
94-14 (1) the name and address of the person to whom the
94-15 permit is issued;
94-16 (2) the location of the well;
94-17 (3) the date the permit is to expire if no well is
94-18 drilled;
94-19 (4) a statement of the purpose for which the well is
94-20 to be used;
94-21 (5) a requirement that the water withdrawn under the
94-22 permit be put to beneficial use at all times;
94-23 (6) the location of the use of the water from the
94-24 well;
94-25 (7) a water well closure plan or a declaration that
95-1 the applicant will comply with well plugging guidelines and report
95-2 closure to the commission;
95-3 (8) the conditions and restrictions, if any, placed on
95-4 the rate and amount of withdrawal;
95-5 (9) any conservation-oriented methods of drilling and
95-6 operating prescribed by the district;
95-7 (10) a drought contingency plan prescribed by the
95-8 district; and
95-9 (11) other terms and conditions as provided by Section
95-10 36.113.
95-11 SECTION 4.31. Subchapter E, Chapter 36, Water Code, is
95-12 amended by adding Sections 36.159, 36.160, and 36.161 to read as
95-13 follows:
95-14 Sec. 36.159. GROUNDWATER DISTRICT MANAGEMENT PLAN FUNDS.
95-15 The Texas Water Development Board may allocate funds from the
95-16 research and planning fund created under Subchapter F, Chapter 15,
95-17 to a district to conduct initial data collections under this
95-18 chapter, to develop and implement a long-term management plan under
95-19 Section 36.1071, and to participate in regional water plans.
95-20 Sec. 36.160. FUNDS. The Texas Water Development Board, the
95-21 commission, the Parks and Wildlife Department, the Texas
95-22 Agricultural Extension Service, and institutions of higher
95-23 education may allocate funds to carry out the objectives of this
95-24 chapter and Chapter 35, which include but are not limited to:
95-25 (1) conducting initial and subsequent studies and
96-1 surveys under Sections 36.106, 36.107, and 36.109;
96-2 (2) providing appropriate education in affected areas
96-3 identified in Section 35.007 relating to the problems and issues
96-4 concerning water management that may arise;
96-5 (3) processing priority groundwater management area
96-6 evaluations under this chapter and Chapter 35;
96-7 (4) providing technical and administrative assistance
96-8 to newly created districts under this chapter and Chapter 35;
96-9 (5) covering the costs of newspaper notices required
96-10 under Sections 35.009 and 36.014 and failed elections in accordance
96-11 with Sections 35.014(c), 36.017(h), and 36.019; and
96-12 (6) providing for assistance from the Parks and
96-13 Wildlife Department to the Texas Water Development Board or a
96-14 district for the purpose of assessing fish and wildlife resource
96-15 habitat needs as they may apply to overall management plan goals
96-16 and objectives of the district.
96-17 Sec. 36.161. ELIGIBILITY FOR FUNDING. (a) The Texas Water
96-18 Development Board may provide funds under Sections 36.159 and
96-19 36.160, Chapters 15, 16, and 17, and Subchapter L of this chapter
96-20 to a district if the Texas Water Development Board determines that
96-21 such funding will allow the district to comply or continue to
96-22 comply with provisions of this chapter.
96-23 (b) The Texas Water Development Board may, after notice and
96-24 hearing, discontinue funding described in Subsection (a) if the
96-25 Texas Water Development Board finds that the district is not using
97-1 the funds to comply with the provisions of this chapter.
97-2 (c) The Texas Water Development Board, when considering a
97-3 discontinuance under Subsection (b), shall give written notice of
97-4 the hearing to the district at least 20 days before the date set
97-5 for the hearing. The hearing shall be conducted in accordance with
97-6 Chapter 2001, Government Code, or the rules of the respective
97-7 agency. General notice of the hearing shall be given in accordance
97-8 with the rules of the agency.
97-9 (d) The Texas Water Development Board may delegate to the
97-10 State Office of Administrative Hearings the responsibility to
97-11 conduct a hearing under this section.
97-12 SECTION 4.32. Subchapter G, Chapter 36, Water Code, is
97-13 amended by adding Section 36.206 to read as follows:
97-14 Sec. 36.206. DISTRICT FEES. (a) A temporary board may set
97-15 user fees to pay for the creation and initial operation of a
97-16 district, until such time as the district creation has been
97-17 confirmed and a permanent board has been elected by a majority vote
97-18 of the qualified voters voting in the district in an election
97-19 called for those purposes.
97-20 (b) The rate of fees set for agricultural uses shall be no
97-21 more than 20 percent of the rate applied to municipal uses.
97-22 SECTION 4.33. Subchapter I, Chapter 36, Water Code, is
97-23 amended to read as follows:
97-24 SUBCHAPTER I. PERFORMANCE REVIEW AND DISSOLUTION [OF DISTRICT]
97-25 Sec. 36.301. FAILURE TO SUBMIT A MANAGEMENT PLAN. If a
98-1 board fails to submit a management plan or to receive certification
98-2 of its management plan under Section 36.1072 or fails to submit or
98-3 receive certification of an amendment to the management plan under
98-4 Section 36.1073, the commission shall take appropriate action under
98-5 Section 36.303.
98-6 Sec. 36.302. LEGISLATIVE AUDIT REVIEW; DETERMINATION OF
98-7 WHETHER DISTRICT IS OPERATIONAL. (a) A district is subject to
98-8 review by the state auditor under the direction of the legislative
98-9 audit committee pursuant to Chapter 321, Government Code.
98-10 (b) The commission, the Texas Water Development Board, and
98-11 the Parks and Wildlife Department shall provide technical
98-12 assistance to the state auditor's office for the review.
98-13 (c) The state auditor shall make a determination of whether
98-14 a district is actively engaged in achieving the objectives of the
98-15 district's management plan based on an audit of the district's
98-16 performance under the plan.
98-17 (d) The state auditor shall conduct such audits following
98-18 the first anniversary of the initial certification of the plan by
98-19 the Texas Water Development Board under Section 36.1072 and
98-20 following the end of every five-year period thereafter.
98-21 (e) The state auditor shall report findings of the review to
98-22 the legislative audit committee and to the commission.
98-23 (f) If it is determined under Subsection (c) that the
98-24 district is not operational, the commission shall take appropriate
98-25 action under Section 36.303.
99-1 Sec. 36.303. ACTION BY COMMISSION. (a) After notice and
99-2 hearing in accordance with Chapter 2001, Government Code, the
99-3 commission may take actions the commission deems appropriate to
99-4 enforce compliance with rules or orders of the commission or
99-5 provisions of this chapter, including:
99-6 (1) issuing an order requiring the district to take
99-7 certain actions or to refrain from taking certain actions;
99-8 (2) dissolving the board in accordance with Sections
99-9 36.305 and 36.307;
99-10 (3) removing the district's taxing authority; or
99-11 (4) dissolving the district in accordance with
99-12 Sections 36.304, 36.305, and 36.308.
99-13 (b) In addition to actions identified under Subsection (a),
99-14 the commission may recommend to the legislature, based upon the
99-15 report required by Section 35.018, actions the commission deems
99-16 necessary to accomplish comprehensive management in the district.
99-17 Sec. 36.304 [36.301]. DISSOLUTION OF DISTRICT. (a) The
99-18 [After notice and hearing, the] commission may dissolve a district
99-19 that:
99-20 (1) is not operational, as determined under Section
99-21 36.302 [has been inactive for a period of three consecutive years];
99-22 and
99-23 (2) has no outstanding bonded indebtedness.
99-24 (b) A district composed of territory entirely within one
99-25 county may be dissolved even if the district [it] has outstanding
100-1 indebtedness that matures after the year in which the district is
100-2 dissolved, whereupon the commissioners court shall levy and collect
100-3 taxes on all taxable property in the district in an amount
100-4 sufficient to pay the principal of and interest on the indebtedness
100-5 when due. The taxes shall be levied and collected in the same
100-6 manner as county taxes.
100-7 [(c) A district is considered active if:]
100-8 [(1) the district has a board as required by
100-9 Subchapter D;]
100-10 [(2) the board holds regularly scheduled meetings and
100-11 has on file minutes of its meetings;]
100-12 [(3) the district has developed and filed with the
100-13 commission a management plan for the district;]
100-14 [(4) the district has copies of drillers' logs on
100-15 file;]
100-16 [(5) the district has on file well permits issued by
100-17 the district; and]
100-18 [(6) the district has on file annual district audits.]
100-19 Sec. 36.305 [36.302]. NOTICE OF HEARING FOR DISSOLUTION OF
100-20 BOARD OR DISTRICT. (a) The commission shall give notice of the
100-21 [dissolution] hearing for dissolution of a district or of a board
100-22 which briefly describes the reasons for the proceeding.
100-23 (b) The notice shall be published once each week for two
100-24 consecutive weeks before the day of hearing in a [some] newspaper
100-25 having general circulation in the county or counties in which the
101-1 district is located. The first publication shall be 30 days before
101-2 the day of the hearing.
101-3 (c) The commission shall give notice of the hearing by first
101-4 class mail addressed to the directors of the district according to
101-5 the last record on file with the executive director.
101-6 Sec. 36.306 [36.303]. INVESTIGATION. The executive director
101-7 shall investigate the facts and circumstances of any violations of
101-8 any rule or order of the commission or any provisions of this
101-9 chapter and shall prepare and file a written report with the
101-10 commission and district and include any actions the executive
101-11 director believes the commission should take under Section 36.303.
101-12 Sec. 36.307. ORDER OF DISSOLUTION OF BOARD. If the
101-13 commission enters an order to dissolve the board, the commission
101-14 shall notify the county commissioners court of each county which
101-15 contains territory in the district and the commission shall provide
101-16 that temporary directors be appointed under Section 36.016 to serve
101-17 until an election for a new board can be held under Section 36.017,
101-18 provided, however, that district confirmation shall not be required
101-19 for continued existence of the district and shall not be an issue
101-20 in the election [the district to be dissolved and the result of
101-21 the investigation shall be included in a written report].
101-22 [Sec. 36.304. ORDER OF DISSOLUTION. The commission may
101-23 enter an order dissolving the district at the conclusion of the
101-24 hearing if it finds that the district has performed none of the
101-25 functions for which it was created for a period of three
102-1 consecutive years before the day of the proceeding and that the
102-2 district has no outstanding bonded indebtedness.]
102-3 Sec. 36.308 [36.305]. CERTIFIED COPY OF ORDER. The
102-4 commission shall file a certified copy of the order of dissolution
102-5 of the district in the deed records of the county or counties in
102-6 which the district is located. If the district was created by a
102-7 special Act of the legislature, the commission shall file a
102-8 certified copy of the order of dissolution with the secretary of
102-9 state.
102-10 Sec. 36.309 [36.306]. APPEALS. [(a)] Appeals from any [a]
102-11 commission order [dissolving a district] shall be filed and heard
102-12 in the district court of any of the counties in which the land is
102-13 located.
102-14 [(b) The trial on appeal shall be de novo and the
102-15 substantial evidence rule shall not apply.]
102-16 Sec. 36.310 [36.307]. ASSETS ESCHEAT [TO STATE]. Upon the
102-17 dissolution of a district by the commission, all assets of the
102-18 district shall be sold at public auction and the proceeds given to
102-19 the county if it is a single-county district. If it is a
102-20 multicounty district, the proceeds shall be divided with the
102-21 counties in proportion to the surface land area in each county
102-22 served by the district [escheat to the State of Texas. The assets
102-23 shall be administered by the state treasurer and shall be disposed
102-24 of in the manner provided by Chapter 72, Property Code].
102-25 SECTION 4.34. Subsection (b), Section 36.325, Water Code, is
103-1 amended to read as follows:
103-2 (b) The petition must be signed by:
103-3 (1) a majority of the landowners in the territory;
103-4 (2) at least 50 landowners if the number of landowners
103-5 is more than 50; or
103-6 (3) the commissioners court of the county in which the
103-7 area is located if the area is identified as a priority groundwater
103-8 management [critical] area or includes the entire county. The
103-9 petition must describe the land by legal description or by metes
103-10 and bounds or by lot and block number if there is a recorded plat
103-11 of the area to be included in the district.
103-12 SECTION 4.35. Section 36.331, Water Code, is amended to read
103-13 as follows:
103-14 Sec. 36.331. ANNEXATION OF NONCONTIGUOUS TERRITORY. Land
103-15 not contiguous to the existing boundaries of a district may not be
103-16 added to or annexed to a district unless the land is located either
103-17 within the same management area, priority groundwater management
103-18 [critical] area, or a groundwater subdivision designated by the
103-19 commission or its predecessors.
103-20 SECTION 4.36. Chapter 36, Water Code, is amended by adding
103-21 Subchapter L to read as follows:
103-22 SUBCHAPTER L. GROUNDWATER DISTRICT LOAN ASSISTANCE FUND
103-23 Sec. 36.371. GROUNDWATER DISTRICT LOAN ASSISTANCE FUND.
103-24 (a) The groundwater district loan assistance fund is created, to
103-25 be funded by direct appropriation and by the Texas Water
104-1 Development Board from the water assistance fund.
104-2 (b) Repayments of loans shall be deposited in the water
104-3 assistance fund.
104-4 Sec. 36.372. FINANCIAL ASSISTANCE. (a) The loan fund may
104-5 be used by the Texas Water Development Board to provide loans to
104-6 newly confirmed districts and legislatively created districts that
104-7 do not require a confirmation election to pay for their creation
104-8 and initial operations.
104-9 (b) The Texas Water Development Board shall establish rules
104-10 for the use and administration of the loan fund.
104-11 Sec. 36.373. APPLICATION FOR ASSISTANCE. (a) In an
104-12 application to the Texas Water Development Board for financial
104-13 assistance from the loan fund, the applicant shall include:
104-14 (1) the name of the district and its board members;
104-15 (2) a citation of the law under which the district
104-16 operates and was created;
104-17 (3) a description of the initial operations;
104-18 (4) the total start-up cost of the initial operations;
104-19 (5) the amount of state financial assistance
104-20 requested;
104-21 (6) the plan for repaying the total cost of the loan;
104-22 and
104-23 (7) any other information the Texas Water Development
104-24 Board may require to perform its duties and protect the public
104-25 interest.
105-1 (b) The Texas Water Development Board may not accept an
105-2 application for a loan from the loan fund unless it is submitted in
105-3 affidavit form by the applicant's board. The Texas Water
105-4 Development Board shall prescribe the affidavit form in its rules.
105-5 (c) The rules implementing this section shall not restrict
105-6 or prohibit the Texas Water Development Board from requiring
105-7 additional factual material from an applicant.
105-8 Sec. 36.374. APPROVAL OF APPLICATION. The Texas Water
105-9 Development Board, by resolution, may approve an application if it
105-10 finds that:
105-11 (1) granting financial assistance to the applicant
105-12 will serve the public interest; and
105-13 (2) the revenue pledged by the applicant from district
105-14 taxes and fees and other sources will be sufficient to meet all the
105-15 obligations assumed by the applicant.
105-16 SECTION 4.37. Subsection (g), Section 151.318, Tax Code, is
105-17 amended to read as follows:
105-18 (g) Each person engaged in manufacturing, processing,
105-19 fabricating, or repairing tangible personal property for ultimate
105-20 sale is entitled to a refund or a reduction in the amount of tax
105-21 imposed by this chapter as provided by Subsection (h) for the
105-22 purchase of machinery, equipment, and replacement parts or
105-23 accessories with a useful life in excess of six months if the
105-24 equipment is:
105-25 (1) used or consumed in or during the actual
106-1 manufacturing, processing, fabrication, or repair of tangible
106-2 personal property for ultimate sale, and the use or consumption of
106-3 the property is necessary or essential to the manufacturing,
106-4 processing, fabrication, or repair operation, or to a pollution
106-5 control process; or
106-6 (2) specifically installed to:
106-7 (A) reduce water use and wastewater flow volumes
106-8 from the manufacturing, processing, fabrication, or repair
106-9 operation;
106-10 (B) reuse and recycle wastewater streams
106-11 generated within the manufacturing, processing, fabrication, or
106-12 repair operation; or
106-13 (C) treat wastewater from another industrial or
106-14 municipal source for the purpose of replacing existing freshwater
106-15 sources in the manufacturing, processing, fabrication, or repair
106-16 operation.
106-17 SECTION 4.38. (a) Sections 35.010, 35.011, and 35.016,
106-18 Water Code, are repealed.
106-19 (b) Section 5.02, Chapter 133, Acts of the 69th Legislature,
106-20 Regular Session, 1985, is repealed.
106-21 SECTION 4.39. (a) In this section, "district" means a
106-22 groundwater conservation district created under Section 52, Article
106-23 III, or Section 59, Article XVI, Texas Constitution, that has the
106-24 authority to regulate the spacing of water wells, the production
106-25 from water wells, or both.
107-1 (b) Notwithstanding the time limitation under Subsection
107-2 (a), Section 36.1072, Water Code, as added by this Act, and
107-3 notwithstanding any provision to the contrary in prior law, a
107-4 district which was created or, if the district required a
107-5 confirmation election, a district whose creation was confirmed
107-6 before the effective date of this Act shall submit a management
107-7 plan for certification under Section 36.1072, Water Code, as added
107-8 by this Act, to the Texas Water Development Board not later than
107-9 September 1, 1998.
107-10 SECTION 4.40. An area designated as a critical area under
107-11 Chapter 35, Water Code, as it existed before the effective date of
107-12 this Act, or under other prior law, shall be known and referred to
107-13 as a priority groundwater management area on or after the effective
107-14 date of this Act.
107-15 SECTION 4.41. Not later than September 1, 1998, the Texas
107-16 Natural Resource Conservation Commission must, under Chapter 35,
107-17 Water Code, as amended by this Act, make all designations of
107-18 priority groundwater management areas for which critical area
107-19 reports were required to have been completed before the effective
107-20 date of this Act under Section 35.007, Water Code, as that section
107-21 existed immediately before the effective date of this Act.
107-22 ARTICLE 5. FINANCIAL ASSISTANCE FOR WATER NEEDS AND
107-23 CONSERVATION
107-24 SECTION 5.01. Section 15.431, Water Code, is amended by
107-25 amending Subsection (d) and adding Subsection (g) to read as
108-1 follows:
108-2 (d) Money appropriated by the legislature to be maintained
108-3 as principal in the fund, $10 million of the money transferred to
108-4 that fund by H.B. No. 2, Acts of the 69th Legislature, Regular
108-5 Session, 1985, and half of the money earned as interest on the
108-6 money held as principal in the agricultural trust fund shall be
108-7 maintained as principal. Money maintained as principal in the
108-8 agricultural trust fund may [not] be used by the board to make
108-9 conservation loans to borrower districts and loans to lender
108-10 districts for the purposes listed in Section 17.895 of this code.
108-11 Loans and conservation loans made under this subchapter are subject
108-12 to the provisions of Sections 17.896 through 17.903 of this code.
108-13 Repayments of principal and interest on loans and conservation
108-14 loans made under this subchapter shall be deposited in the
108-15 agricultural trust fund [spent for any purpose].
108-16 (g) In this section, "borrower district," "conservation
108-17 loan," "individual borrower," "lender district," and "loan" have
108-18 the meanings assigned those terms by Section 17.871 of this code.
108-19 SECTION 5.02. Section 16.189, Water Code, is amended to read
108-20 as follows:
108-21 Sec. 16.189. LEASE PAYMENTS. In leasing a state facility
108-22 for a term of years, the board shall require [annual] payments that
108-23 will recover over the lease period not less than the total of:
108-24 (1) all [the annual] principal and interest
108-25 requirements applicable to the debt incurred by the state in
109-1 acquiring the facility; and
109-2 (2) the state's [annual] cost for operation,
109-3 maintenance, and rehabilitation of the facility.
109-4 SECTION 5.03. Chapter 17, Water Code, is amended by adding
109-5 Subchapter L to read as follows:
109-6 SUBCHAPTER L. WATER FINANCIAL ASSISTANCE BOND PROGRAM
109-7 Sec. 17.951. DEFINITIONS. In this subchapter:
109-8 (1) "Fund" means the Texas Water Development Fund II.
109-9 (2) "Resolution" means any resolution or order
109-10 approved by the board authorizing the issuance of water financial
109-11 assistance bonds.
109-12 Sec. 17.952. ISSUANCE OF WATER FINANCIAL ASSISTANCE BONDS.
109-13 The board by resolution may provide for the issuance of water
109-14 financial assistance bonds, which shall be general obligation bonds
109-15 of the state, in an aggregate principal amount not to exceed the
109-16 principal amount authorized to be issued by Section 49-d-8, Article
109-17 III, Texas Constitution.
109-18 Sec. 17.953. CONDITIONS FOR ISSUANCE OF WATER FINANCIAL
109-19 ASSISTANCE BONDS. (a) Water financial assistance bonds may be
109-20 issued as various series and issues.
109-21 (b) Water financial assistance bonds may mature, serially or
109-22 otherwise, not later than 50 years after the date on which they are
109-23 issued.
109-24 (c) Water financial assistance bonds may be issued as bonds,
109-25 notes, or other obligations as permitted by law and may be in the
110-1 form and denominations and be issued in the manner and under the
110-2 terms, conditions, and details as provided by resolution.
110-3 (d) Water financial assistance bonds may be sold at public
110-4 or private sale at a price or prices and on terms determined by the
110-5 board.
110-6 (e) Water financial assistance bonds shall be signed and
110-7 executed as provided by resolution.
110-8 (f) Water financial assistance bonds may bear no interest or
110-9 bear interest at a rate or rates determined in accordance with law.
110-10 (g) Rates of interest on water financial assistance bonds
110-11 may be fixed, variable, floating, adjustable, or otherwise, as
110-12 determined by the board or determined pursuant to any contractual
110-13 arrangements approved by the board. The resolution may provide for
110-14 the payment of interest at any time or the periodic determination
110-15 of interest rates or interest rate periods.
110-16 Sec. 17.954. BOND ENHANCEMENT AGREEMENTS; PAYMENT OF
110-17 EXPENSES. (a) The board at any time and from time to time may
110-18 enter into one or more bond enhancement agreements that the board
110-19 determines to be necessary or appropriate to place the obligation
110-20 of the board, as represented by the water financial assistance
110-21 bonds, in whole or in part, on the interest rate, currency, cash
110-22 flow, or other basis desired by the board. A bond enhancement
110-23 agreement is an agreement for professional services and shall
110-24 contain the terms and conditions and be for the period that the
110-25 board approves.
111-1 (b) The fees and expenses of the board in connection with
111-2 the issuance of water financial assistance bonds and the providing
111-3 of financial assistance to political subdivisions may be paid from
111-4 money in the fund, provided that any payments due from the board
111-5 under a bond enhancement agreement, other than fees and expenses,
111-6 that relate to the payment of debt service on water financial
111-7 assistance bonds constitute payments of principal of and interest
111-8 on the water financial assistance bonds.
111-9 (c) Bond enhancement agreements may include, on terms and
111-10 conditions approved by the board, interest rate swap agreements;
111-11 currency swap agreements; forward payment conversion agreements;
111-12 agreements providing for payments based on levels of or changes in
111-13 interest rates or currency exchange rates; agreements to exchange
111-14 cash flows or a series of payments; agreements, including options,
111-15 puts, or calls, to hedge payment, currency, rate, spread, or other
111-16 exposure; or other agreements that further enhance the
111-17 marketability, security, or creditworthiness of water financial
111-18 assistance bonds.
111-19 Sec. 17.955. PERSONS DESIGNATED TO ACT AS AGENTS OF BOARD.
111-20 (a) In the resolution the board may delegate authority to one or
111-21 more officers, employees, or agents designated by the board to act
111-22 on behalf of the board during the time any series of water
111-23 financial assistance bonds are outstanding to:
111-24 (1) fix dates, prices, interest rates, amortization
111-25 schedules, redemption features, and interest payment periods;
112-1 (2) perform duties and obligations of the board under
112-2 a bond enhancement agreement; and
112-3 (3) perform other procedures specified in the
112-4 resolution.
112-5 (b) The person designated by the board may adjust the
112-6 interest on water financial assistance bonds and perform all duties
112-7 described in a bond enhancement agreement as necessary to permit
112-8 the water financial assistance bonds to be sold or resold at par in
112-9 conjunction with secondary market transactions.
112-10 Sec. 17.956. TEXAS WATER DEVELOPMENT FUND II. The fund is a
112-11 special fund in the state treasury, and all water financial
112-12 assistance bond proceeds shall be deposited in the state treasury
112-13 to the credit of the fund. The fund shall contain a "state
112-14 participation account," an "economically distressed areas program
112-15 account," and a "financial assistance account," and proceeds from
112-16 the sale of water financial assistance bonds issued for the purpose
112-17 of providing financial assistance to political subdivisions shall
112-18 be credited to such accounts as provided by resolution by the
112-19 board. By resolution, the board may create additional accounts
112-20 within the fund as the board determines are necessary or convenient
112-21 for the administration of the fund.
112-22 Sec. 17.957. STATE PARTICIPATION ACCOUNT. (a) The Texas
112-23 Water Development Fund II state participation account, referred to
112-24 as the "state participation account," is an account established
112-25 within the fund in the state treasury. Transfers shall be made
113-1 from this account as provided by this subchapter.
113-2 (b) The state participation account is composed of:
113-3 (1) money and assets attributable to water financial
113-4 assistance bonds designated by the board as issued for projects
113-5 described in Section 16.131;
113-6 (2) money from the sale, transfer, or lease of a
113-7 project described in Subdivision (1) that was acquired,
113-8 constructed, reconstructed, developed, or enlarged with money from
113-9 the state participation account;
113-10 (3) payments received under a bond enhancement
113-11 agreement with respect to water financial assistance bonds
113-12 designated by the board as issued for projects described in Section
113-13 16.131;
113-14 (4) investment income earned on money on deposit in
113-15 the state participation account; and
113-16 (5) any other funds, regardless of their source, that
113-17 the board directs be deposited to the credit of the state
113-18 participation account.
113-19 (c) Money on deposit in the state participation account may
113-20 be used by the board for projects described in Section 16.131 in
113-21 the manner that the board determines necessary for the
113-22 administration of the fund.
113-23 Sec. 17.958. ECONOMICALLY DISTRESSED AREAS PROGRAM ACCOUNT.
113-24 (a) The Texas Water Development Fund II economically distressed
113-25 areas program account, referred to as the "economically distressed
114-1 areas program account," is an account established within the fund
114-2 in the state treasury. Transfers shall be made from this account
114-3 as provided by this subchapter.
114-4 (b) The economically distressed areas program account is
114-5 composed of:
114-6 (1) money and assets attributable to water financial
114-7 assistance bonds designated by the board as issued for projects
114-8 described in Subchapter K;
114-9 (2) money provided by the federal government, the
114-10 state, political subdivisions, and private entities for the purpose
114-11 of paying debt service on water financial assistance bonds issued
114-12 for purposes provided by Subchapter K;
114-13 (3) payments received under a bond enhancement
114-14 agreement with respect to water financial assistance bonds
114-15 designated by the board as issued for purposes provided by
114-16 Subchapter K;
114-17 (4) investment income earned on money on deposit in
114-18 the economically distressed areas program account; and
114-19 (5) any other funds, regardless of their source, that
114-20 the board directs be deposited to the credit of the economically
114-21 distressed areas program account.
114-22 (c) Money on deposit in the economically distressed areas
114-23 program account may be used by the board for purposes provided by
114-24 Subchapter K in the manner that the board determines necessary for
114-25 the administration of the fund.
115-1 Sec. 17.959. FINANCIAL ASSISTANCE ACCOUNT. (a) The Texas
115-2 Water Development Fund II water financial assistance account,
115-3 referred to as the "financial assistance account," is an account
115-4 established within the fund in the state treasury. Transfers shall
115-5 be made from this account as provided by this subchapter.
115-6 (b) The financial assistance account is composed of:
115-7 (1) money and assets attributable to water financial
115-8 assistance bonds designated by the board as issued for purposes
115-9 described in Section 49-d-8, Article III, Texas Constitution, other
115-10 than for purposes described in Sections 17.957 and 17.958;
115-11 (2) payments received under a bond enhancement
115-12 agreement with respect to water financial assistance bonds
115-13 designated by the board as issued for purposes described in Section
115-14 49-d-8, Article III, Texas Constitution, other than for purposes
115-15 described in Sections 17.957 and 17.958;
115-16 (3) investment income earned on money on deposit in
115-17 the financial assistance account; and
115-18 (4) any other funds, regardless of their source, that
115-19 the board directs be deposited to the credit of the financial
115-20 assistance account.
115-21 (c) Money on deposit in the financial assistance account may
115-22 be used by the board for any one or more of the purposes described
115-23 in Section 49-d-8, Article III, Texas Constitution, other than for
115-24 purposes described in Sections 17.957 and 17.958, in the manner
115-25 that the board determines necessary for the administration of the
116-1 fund.
116-2 Sec. 17.960. BOND RESOLUTIONS. (a) In the resolution, the
116-3 board may make additional covenants with respect to water financial
116-4 assistance bonds and may provide for:
116-5 (1) the flow of funds;
116-6 (2) the establishment of accounts and subaccounts
116-7 within the fund that the board determines are necessary for the
116-8 administration of the fund;
116-9 (3) at the discretion of the board, the payment of
116-10 fees and expenses of the board in connection with providing
116-11 financial assistance to political subdivisions as the board
116-12 determines are necessary for the administration of the fund;
116-13 (4) the maintenance, investment, and management of
116-14 money within the fund and any accounts established by resolution by
116-15 the board; and
116-16 (5) any other provisions and covenants that the board
116-17 determines are necessary for the administration of the fund.
116-18 (b) The board may invest and reinvest money in the fund and
116-19 any account therein in any obligations or securities as provided by
116-20 the resolution or by rule adopted by the board.
116-21 (c) The board may adopt and have executed other proceedings,
116-22 agreements, or trust agreements or instruments necessary in the
116-23 issuance of water financial assistance bonds, including, without
116-24 limitation, bond enhancement agreements.
116-25 Sec. 17.961. TRANSFERS TO REVOLVING FUNDS. (a) In order to
117-1 implement and administer a revolving loan program established under
117-2 Title VI of the Federal Water Pollution Control Act (33 U.S.C.
117-3 Section 1381 et seq.), the board may direct the comptroller to
117-4 transfer amounts from the financial assistance account to the state
117-5 water pollution control revolving fund created by Section 15.601 to
117-6 provide financial assistance pursuant to this subchapter.
117-7 (b) In order to implement and administer a revolving loan
117-8 program established by any other federal legislation, including,
117-9 without limitation, Title XIV of the federal Public Health Service
117-10 Act, or any federal agency program under which an additional state
117-11 revolving fund, as defined in Section 15.602, has been established,
117-12 the board may direct the comptroller to transfer amounts from the
117-13 financial assistance account to such additional state revolving
117-14 fund to provide financial assistance pursuant to this subchapter.
117-15 (c) The board shall use the state water pollution control
117-16 revolving fund in accordance with Section 15.604(a)(4) and Section
117-17 603(d)(4), Federal Water Pollution Control Act (33 U.S.C. Section
117-18 1383), as a source of revenue to be deposited in accordance with
117-19 this subchapter for the payment of principal and interest on water
117-20 financial assistance bonds issued by the board, the proceeds of
117-21 which are deposited into the state water pollution control
117-22 revolving fund, and to make payments under a bond enhancement
117-23 agreement with respect to principal or interest on the water
117-24 financial assistance bonds.
117-25 (d) In the event amounts are transferred to any additional
118-1 state revolving fund, as defined in Section 15.602, pursuant to
118-2 Subsection (b), the board shall, to the extent permitted by the
118-3 federal legislation or federal agency program under which such
118-4 additional state revolving fund was established, use the additional
118-5 state revolving fund as a source of revenue to be deposited in
118-6 accordance with this subchapter for the payment of principal and
118-7 interest on water financial assistance bonds issued by the board,
118-8 the proceeds of which are deposited into the additional state
118-9 revolving fund, and to make payments under a bond enhancement
118-10 agreement with respect to principal or interest on the water
118-11 financial assistance bonds.
118-12 Sec. 17.962. STATE APPROVALS. (a) Water financial
118-13 assistance bonds may not be issued under this subchapter unless
118-14 such issuance has been reviewed and approved by the bond review
118-15 board.
118-16 (b) The proceedings relating to the water financial
118-17 assistance bonds issued under this subchapter are subject to review
118-18 and approval by the attorney general in the same manner and with
118-19 the same effect as provided by Chapter 656, Acts of the 68th
118-20 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
118-21 Civil Statutes).
118-22 (c) After approval by the attorney general of the
118-23 proceedings relating to water financial assistance bonds issued
118-24 under this subchapter, registration of the proceedings by the
118-25 comptroller, and delivery of the water financial assistance bonds
119-1 to the purchasers, the water financial assistance bonds are
119-2 incontestable and constitute general obligations of the state.
119-3 Sec. 17.963. PAYMENT OF BOARD OBLIGATIONS. (a) The board
119-4 shall cooperate with the comptroller to develop procedures for the
119-5 payment of principal and interest on water financial assistance
119-6 bonds and any obligation under a bond enhancement agreement, as the
119-7 same become due and owing.
119-8 (b) If there is not enough money in any account of the fund
119-9 available to pay the principal and interest on water financial
119-10 assistance bonds issued for such account, including money to make
119-11 payments by the board under a bond enhancement agreement with
119-12 respect to principal or interest on such water financial assistance
119-13 bonds, the board shall notify the comptroller of such occurrence,
119-14 and the comptroller shall transfer out of the first money coming
119-15 into the state treasury not otherwise appropriated by the
119-16 constitution the amount required to pay the obligations of the
119-17 board that are due and owing. The comptroller shall make the
119-18 transfers required by Section 49-d-8, Article III, Texas
119-19 Constitution, and this subchapter in the manner specified in the
119-20 resolution.
119-21 Sec. 17.964. ELIGIBLE SECURITY. Water financial assistance
119-22 bonds are eligible to secure deposits of public funds of the state
119-23 and political subdivisions of the state. Water financial
119-24 assistance bonds are lawful and sufficient security for deposits to
119-25 the extent of their face value.
120-1 Sec. 17.965. LEGAL INVESTMENTS. Water financial assistance
120-2 bonds are legal and authorized investments for:
120-3 (1) banks;
120-4 (2) savings banks;
120-5 (3) trust companies;
120-6 (4) savings and loan associations;
120-7 (5) insurance companies;
120-8 (6) fiduciaries;
120-9 (7) trustees;
120-10 (8) guardians; and
120-11 (9) sinking funds and other public funds of the state
120-12 and its agencies and of political subdivisions of the state.
120-13 Sec. 17.966. MUTILATED, LOST, OR DESTROYED BONDS. The board
120-14 may provide for the replacement of mutilated, lost, or destroyed
120-15 water financial assistance bonds.
120-16 Sec. 17.967. REFUNDING BONDS. (a) The board by resolution
120-17 may provide for the issuance of water financial assistance bonds to
120-18 refund outstanding bonds and water financial assistance bonds
120-19 issued under this chapter and federal contractual obligations
120-20 incurred under Section 49-d, Article III, Texas Constitution.
120-21 (b) The board may sell the refunding water financial
120-22 assistance bonds and use the proceeds to retire any of the
120-23 outstanding obligations described in Subsection (a), exchange the
120-24 refunding water financial assistance bonds for the outstanding
120-25 bonds or water financial assistance bonds, or refund any of the
121-1 outstanding obligations described in Subsection (a) in the manner
121-2 provided by any other applicable statute, including Chapter 503,
121-3 Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas
121-4 Civil Statutes), and Chapter 784, Acts of the 61st Legislature,
121-5 Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
121-6 Statutes).
121-7 Sec. 17.968. SALE OF POLITICAL SUBDIVISION BONDS BY THE
121-8 BOARD; USE OF PROCEEDS. (a) The board may sell or dispose of
121-9 political subdivision bonds purchased with money in the fund to any
121-10 person, including the Texas Water Resources Finance Authority, and
121-11 the board, in such manner as it shall determine, may apply the
121-12 proceeds of the sale of political subdivision bonds held by the
121-13 board to:
121-14 (1) pay debt service on water financial assistance
121-15 bonds issued under this subchapter; or
121-16 (2) provide financial assistance to political
121-17 subdivisions for any one or more of the purposes authorized by
121-18 Section 49-d-8, Article III, Texas Constitution.
121-19 (b) The board shall sell the political subdivision bonds at
121-20 the price and under the terms that it determines to be reasonable.
121-21 Sec. 17.969. TAX EXEMPT BONDS. Since the board is
121-22 performing an essential governmental function in the exercise of
121-23 the powers conferred on it by this chapter, water financial
121-24 assistance bonds issued under this subchapter and the interest and
121-25 income from the water financial assistance bonds, including any
122-1 profit made on the sale of water financial assistance bonds, and
122-2 all fees, charges, gifts, grants, revenues, receipts, and other
122-3 money received or pledged to pay or secure the payment of water
122-4 financial assistance bonds are free from taxation and assessments
122-5 of every kind by this state and any city, county, district,
122-6 authority, or other political subdivision of this state.
122-7 Sec. 17.970. ENFORCEMENT BY MANDAMUS. Payment of water
122-8 financial assistance bonds and obligations incurred under bond
122-9 enhancement agreements and performance of official duties
122-10 prescribed by Section 49-d-8, Article III, Texas Constitution, and
122-11 this subchapter may be enforced in a court of competent
122-12 jurisdiction by mandamus or other appropriate proceedings.
122-13 Sec. 17.971. SUBCHAPTER CUMULATIVE OF OTHER LAWS. (a) This
122-14 subchapter is cumulative of other laws on the subject, and the
122-15 board may use provisions of other applicable laws in the issuance
122-16 of water financial assistance bonds and the execution of bond
122-17 enhancement agreements, but this subchapter is wholly sufficient
122-18 authority for the issuance of water financial assistance bonds, the
122-19 execution of bond enhancement agreements, and the performance of
122-20 all other acts and procedures authorized by this subchapter.
122-21 (b) In addition to other authority granted by this
122-22 subchapter, the board may exercise the authority granted to the
122-23 governing body of an issuer with regard to the issuance of
122-24 obligations under Chapter 656, Acts of the 68th Legislature,
122-25 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
123-1 Statutes).
123-2 (c) In exercising the powers granted to the board under this
123-3 subchapter, the board may exercise any powers granted to it under
123-4 this chapter and Chapter 16 including the powers described in
123-5 Subchapters D, E, F, G, and K, notwithstanding any provision in
123-6 this chapter or Chapter 16 that may be inconsistent with or in
123-7 conflict with the provisions of this subchapter as a result of the
123-8 establishment of the fund as a fund separate and distinct from the
123-9 existing Texas Water Development Fund, it being the intent of the
123-10 legislature that the financial assistance made available to
123-11 political subdivisions under this subchapter, in pursuance of the
123-12 authority granted by Section 49-d-8, Article III, Texas
123-13 Constitution, be provided by the board in the manner the board
123-14 deems necessary to achieve the purposes of Section 49-d-8, Article
123-15 III, Texas Constitution, and notwithstanding any other existing
123-16 provisions in this chapter or Chapter 16, the provisions of this
123-17 chapter and Chapter 16 shall be inclusive of the provisions of this
123-18 subchapter and Section 49-d-8, Article III, Texas Constitution.
123-19 SECTION 5.04. Subdivision (7), Section 17.001, Water Code,
123-20 is amended to read as follows:
123-21 (7) "Water supply project" means:
123-22 (A) any engineering undertaking or work to
123-23 conserve and develop [surface or subsurface] water resources of the
123-24 state, including the control, storage, and preservation of its
123-25 storm water and floodwater and the water of its rivers and streams
124-1 for all useful and lawful purposes by the acquisition, improvement,
124-2 extension, or construction of dams, reservoirs, brush control,
124-3 precipitation enhancement, desalinization, and other water storage
124-4 and conservation projects, which may include flood storage,
124-5 including underground storage projects, filtration and water
124-6 treatment plants, including any system necessary to transport water
124-7 from storage to points of distribution or from storage to
124-8 filtration and treatment plants, including facilities for
124-9 transporting water therefrom to wholesale purchasers or to retail
124-10 purchasers as authorized by Section 17.072(c) of this code, by the
124-11 acquisition, by purchase of rights in [underground] water, by the
124-12 drilling of wells, or for any one or more of these purposes or
124-13 methods; [or]
124-14 (B) any engineering undertaking or work outside
124-15 the state to provide for the maintenance and enhancement of the
124-16 quality of water by eliminating saline inflow through well pumping
124-17 and deep well injection of brine if such undertaking or work
124-18 results in water being available for use in or for the benefit of
124-19 Texas; or
124-20 (C) any undertaking or work by Texas political
124-21 subdivisions to conserve, convey, or develop water resources in
124-22 areas outside Texas if such undertaking or work results in water
124-23 being available for use in or for the benefit of Texas.
124-24 SECTION 5.05. Section 17.001, Water Code, is amended by
124-25 amending Subdivision (17) and adding Subdivision (25) to read as
125-1 follows:
125-2 (17) "Financial assistance" means any loan of funds
125-3 from the water supply account, the water quality enhancement
125-4 account, or the flood control account to a political subdivision
125-5 for construction of a water supply project, including projects
125-6 referenced in the state water plan, treatment works, or flood
125-7 control measures through the purchase of bonds or other obligations
125-8 of the political subdivision, and any loan of funds the source of
125-9 which is the proceeds from water financial assistance bonds.
125-10 (25) "Water financial assistance bonds" means the
125-11 Texas Water Development Bonds authorized to be issued by Section
125-12 49-d-8, Article III, Texas Constitution, and dedicated to use for
125-13 the purposes described in that section.
125-14 SECTION 5.06. Section 17.011, Water Code, is amended by
125-15 adding Subsection (c) to read as follows:
125-16 (c) Notwithstanding any other provision of this section, the
125-17 board by resolution may issue water financial assistance bonds for
125-18 any one or more of the purposes described in Section 49-d-8,
125-19 Article III, Texas Constitution, in an aggregate principal amount
125-20 not to exceed the amount of bonds authorized by Section 49-d-8,
125-21 Article III, Texas Constitution, in accordance with the provisions
125-22 of Subchapter L.
125-23 SECTION 5.07. Section 17.0111, Water Code, is amended to
125-24 read as follows:
125-25 Sec. 17.0111. DEDICATION OF CERTAIN BONDS. No more than
126-1 $250,000,000 in principal [Fifty percent of the] amount of bonds
126-2 authorized by Article III, Section 49-d-7, of the Texas
126-3 Constitution, and issued under either that section or Article III,
126-4 Section 49-d-8, of the Texas Constitution, may be [is] dedicated to
126-5 the purposes provided by Subchapter K [of this chapter].
126-6 SECTION 5.08. Section 17.182, Water Code, is amended to read
126-7 as follows:
126-8 Sec. 17.182. PROCEEDS FROM SALE. Unless used to pay debt
126-9 service on bonds issued under this chapter, the proceeds from the
126-10 sale of political subdivision bonds held by the board either shall
126-11 be credited to the account from which financial assistance was made
126-12 to the political subdivision, except that accrued interest shall be
126-13 credited to the interest and sinking fund, or shall be deposited to
126-14 the credit of the Texas Water Development Fund II, established
126-15 within the state treasury pursuant to Section 49-d-8, Article III,
126-16 Texas Constitution. However, no such proceeds shall be deposited
126-17 to the credit of the Texas Water Development Fund II unless the
126-18 executive administrator certifies to the board that the transfer of
126-19 such proceeds into the Texas Water Development Fund II will not
126-20 cause the board, in the fiscal year the transfer is made, to direct
126-21 the comptroller to transfer out of the first money coming into the
126-22 state treasury during that fiscal year funds sufficient for the
126-23 payment of principal of or interest on water development bonds,
126-24 other than water development bonds issued for the purposes
126-25 described in Subsection (e), Section 49-d-7, Article III, Texas
127-1 Constitution, coming due in that fiscal year.
127-2 SECTION 5.09. Section 17.278, Water Code, is amended to read
127-3 as follows:
127-4 Sec. 17.278. FINDINGS REGARDING PERMITS. If an application
127-5 includes a proposal for a wastewater treatment plant, the board may
127-6 not deliver funds for the wastewater treatment plant until the
127-7 applicant has obtained a permit for the construction and operation
127-8 of the plant and approval of the plans and specifications for the
127-9 plant from the commission. If an application includes a proposal
127-10 for a wastewater treatment plant that is located outside the
127-11 jurisdiction of this state and that is not subject to the
127-12 permitting authority of the commission, the board may not deliver
127-13 funds for the wastewater treatment plant until after the board
127-14 reviews the plans and specifications in coordination with the
127-15 commission and finds that the wastewater treatment plant is capable
127-16 of producing effluent that will meet federal and Texas-approved
127-17 water quality standards and if effluent produced will result in
127-18 water being available for use in or for the benefit of Texas.
127-19 SECTION 5.10. Sections 44.007 through 44.010, Agriculture
127-20 Code, are amended to read as follows:
127-21 Sec. 44.007. LINKED DEPOSIT PROGRAM. (a) The board shall
127-22 establish a linked deposit program to encourage commercial lending
127-23 for the enhanced production, processing, and marketing of certain
127-24 agricultural crops and for the financing [purchase] of water
127-25 conservation projects or equipment for agricultural production
128-1 purposes.
128-2 (b) The board shall promulgate rules for the loan portion of
128-3 the linked deposit program. The rules must include:
128-4 (1) a list of the categories of crops customarily
128-5 grown in Texas;
128-6 (2) a list of crops that are alternative agricultural
128-7 crops;
128-8 (3) a list of crops the production of which has
128-9 declined markedly because of natural disasters; and
128-10 (4) identification of projects and [the] types of
128-11 equipment considered as water conservation projects or equipment
128-12 for agricultural production purposes.
128-13 (c) In order to participate in the linked deposit program,
128-14 an eligible lending institution may solicit loan applications from
128-15 eligible borrowers.
128-16 (d) After reviewing an application and determining that the
128-17 applicant is eligible and creditworthy, the eligible lending
128-18 institution shall send the application for a linked deposit loan to
128-19 the board.
128-20 (e) The eligible lending institution shall certify the
128-21 interest rate applicable to the specific eligible borrower and
128-22 attach it to the application sent to the board.
128-23 (f) After reviewing each linked deposit loan application,
128-24 the board shall recommend to the comptroller [state treasurer] the
128-25 acceptance or rejection of the application.
129-1 (g) After acceptance of the application, the comptroller
129-2 [state treasurer] shall place a linked deposit with the applicable
129-3 eligible lending institution for the period the comptroller
129-4 [treasurer] considers appropriate. The comptroller [state
129-5 treasurer] may not place a deposit for a period extending beyond
129-6 the state fiscal biennium in which it is placed. Subject to the
129-7 limitation described by Section 44.010 of this chapter, the
129-8 comptroller [treasurer] may place time deposits at an interest rate
129-9 described by Section 44.001(5)(A) of this chapter, notwithstanding
129-10 any order of the State Depository Board to the contrary.
129-11 (h) Before the placing of a linked deposit, the eligible
129-12 lending institution and the state, represented by the comptroller
129-13 [state treasurer] and the board, shall enter into a written deposit
129-14 agreement containing the conditions on which the linked deposit is
129-15 made.
129-16 (i) If a lending institution holding linked deposits ceases
129-17 to be a state depository, the comptroller [state treasurer] may
129-18 withdraw the linked deposits.
129-19 (j) The board may adopt rules that create a procedure for
129-20 determining priorities for loans granted under this chapter. Each
129-21 rule adopted must state the policy objective of the rule. The
129-22 policy objectives of the rules may include preferences to:
129-23 (1) achieve adequate geographic distribution of loans;
129-24 (2) assist certain industries;
129-25 (3) encourage certain practices including water
130-1 conservation; and
130-2 (4) encourage value-added processing of agricultural
130-3 products.
130-4 Sec. 44.008. COMPLIANCE. (a) On accepting a linked
130-5 deposit, an eligible lending institution must loan money to
130-6 eligible borrowers in accordance with the deposit agreement and
130-7 this chapter. The eligible lending institution shall forward a
130-8 compliance report to the board.
130-9 (b) The board shall monitor compliance with this chapter and
130-10 inform the comptroller [state treasurer] of noncompliance on the
130-11 part of an eligible lending institution.
130-12 Sec. 44.009. STATE LIABILITY PROHIBITED. The state is not
130-13 liable to an eligible lending institution for payment of the
130-14 principal, interest, or any late charges on a loan made to an
130-15 eligible borrower. A delay in payment or default on a loan by an
130-16 eligible borrower does not affect the validity of the deposit
130-17 agreement. Linked deposits are not an extension of the state's
130-18 credit within the meaning of any state constitutional prohibition.
130-19 Sec. 44.010. LIMITATIONS IN PROGRAM. (a) At any one time,
130-20 not more than $15 [$5] million, of which $10 million may only be
130-21 used to finance water conservation projects, may be placed in
130-22 linked deposits under this chapter.
130-23 (b) The maximum amount of a loan under this chapter to
130-24 process and market Texas agricultural crops is $500,000. The
130-25 maximum amount of a loan under this chapter to produce alternative
131-1 agricultural crops in this state is $250,000. The maximum amount
131-2 of a loan under this chapter to finance [purchase] water
131-3 conservation projects or equipment for agricultural production
131-4 purposes is $250,000.
131-5 (c) A loan granted pursuant to this chapter must be applied
131-6 to the purchase or lease of land, equipment, seed, fertilizer,
131-7 direct marketing facilities, or processing facilities, or to
131-8 payment for professional services.
131-9 (d) A loan granted pursuant to this chapter, when used to
131-10 finance eligible water conservation projects or equipment, may be
131-11 applied to existing debt resulting from the financing of water
131-12 conservation projects or equipment for agricultural purposes as
131-13 defined by board rule.
131-14 SECTION 5.11. Subchapter B, Chapter 11, Tax Code, is amended
131-15 by adding Section 11.32 to read as follows:
131-16 Sec. 11.32. CERTAIN WATER CONSERVATION INITIATIVES. The
131-17 governing body of a taxing unit by official action of the governing
131-18 body adopted in the manner required by law for official actions may
131-19 exempt from taxation part or all of the assessed value of property
131-20 on which approved water conservation initiatives have been
131-21 implemented. For purposes of this section, approved water
131-22 conservation initiatives shall be designated pursuant to an
131-23 ordinance or other law adopted by the governing unit.
131-24 SECTION 5.12. Section 2155.444, Government Code, is amended
131-25 by adding Subsection (d) to read as follows:
132-1 (d) The commission and all state agencies making purchase of
132-2 vegetation for landscaping purposes, including plants, shall give
132-3 preference to vegetation native to Texas if the cost to the state
132-4 and the quality are equal.
132-5 ARTICLE 6. SMALL COMMUNITIES ASSISTANCE
132-6 SECTION 6.01. Section 5.311, Water Code, is amended to read
132-7 as follows:
132-8 Sec. 5.311. DELEGATION OF RESPONSIBILITY. (a) The
132-9 commission may delegate to an administrative law judge of the State
132-10 Office of Administrative Hearings the responsibility to hear any
132-11 matter before the commission and to issue interlocutory orders
132-12 related to interim rates under Chapter 13.
132-13 (b) Except as provided in Subsection (a), the [The]
132-14 administrative law judge shall report to the commission on the
132-15 hearing in the manner provided by law.
132-16 SECTION 6.02. Subdivisions (11), (21), and (24), Section
132-17 13.002, Water Code, are amended to read as follows:
132-18 (11) "Member" means a person who holds a membership in
132-19 a water supply or sewer service corporation and [who either
132-20 receives water or sewer utility service from the corporation or] is
132-21 a record owner of a fee simple title to property in an area served
132-22 by a water supply or sewer service corporation or a person who is
132-23 granted a membership and who either currently receives or will be
132-24 eligible to receive water or sewer utility service from the
132-25 corporation. In determining member control of a water supply or
133-1 sewer service corporation, a person is entitled to only one vote
133-2 regardless of the number of memberships the person owns.
133-3 (21) "Service" means any act [done, rendered, or]
133-4 performed, anything furnished or supplied, and any facilities or
133-5 lines committed or [facility] used[, furnished, or supplied] by a
133-6 retail public utility in the performance of its duties under this
133-7 chapter to its patrons, employees, other retail public utilities,
133-8 and the public, as well as the interchange of facilities between
133-9 two or more retail public utilities.
133-10 (24) "Water supply or sewer service corporation" means
133-11 a nonprofit[, member-owned, member-controlled] corporation
133-12 organized and operating under Chapter 76, Acts of the 43rd
133-13 Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
133-14 Texas Civil Statutes) that provides potable water service or sewer
133-15 service for compensation and that has adopted and is operating in
133-16 accordance with by-laws or articles of incorporation which ensure
133-17 that it is member-owned and member-controlled. The term does not
133-18 include a corporation that provides retail water or sewer service
133-19 to a person who is not a member, except that the corporation may
133-20 provide retail water or sewer service to a person who is not a
133-21 member if the person only builds on or develops property to sell to
133-22 another and the service is provided on an interim basis before the
133-23 property is sold.
133-24 SECTION 6.03. Section 13.181, Water Code, is amended to read
133-25 as follows:
134-1 Sec. 13.181. POWER TO ENSURE COMPLIANCE; RATE REGULATION.
134-2 (a) Except for the provisions of Section 13.192, this subchapter
134-3 shall apply only to a utility and shall not be applied to
134-4 municipalities, counties, districts, or water supply or sewer
134-5 service corporations.
134-6 (b) Subject to this chapter, the commission has all
134-7 authority and power of the state to ensure compliance with the
134-8 obligations of utilities under this chapter. For this purpose the
134-9 regulatory authority may fix and regulate rates of utilities,
134-10 including rules and regulations for determining the classification
134-11 of customers and services and for determining the applicability of
134-12 rates. A rule or order of the regulatory authority may not
134-13 conflict with the rulings of any federal regulatory body. [Except
134-14 Section 13.192, this subchapter shall apply only to a utility and
134-15 shall not be applied to municipalities, counties, districts, or
134-16 water supply or sewer service corporations.] The commission may
134-17 adopt rules which authorize a utility which is permitted under
134-18 Section 13.242(c) to provide service without a certificate of
134-19 public convenience and necessity to request or implement a rate
134-20 increase and operate according to rules, regulations, and standards
134-21 of service other than those otherwise required under this chapter
134-22 provided that rates are just and reasonable for customers and the
134-23 utility and that service is safe, adequate, efficient, and
134-24 reasonable.
134-25 SECTION 6.04. Section 13.183, Water Code, is amended by
135-1 adding Subsection (c) to read as follows:
135-2 (c) To ensure that retail customers receive a higher quality
135-3 or more reliable water or sewer service, to encourage
135-4 regionalization, or to maintain financially stable and technically
135-5 sound utilities, the regulatory authority may develop methodologies
135-6 for water or sewer rates based on factors other than rate of return
135-7 and those specified in Section 13.185. Overall revenues determined
135-8 pursuant to an alternate methodology developed under this section
135-9 must provide revenues to the utility that satisfy the requirements
135-10 of Subsection (a). In determining to use alternate ratemaking
135-11 methodologies, the regulatory authority shall assure that rates,
135-12 operations, and services are just and reasonable to the consumers
135-13 and to the utilities.
135-14 SECTION 6.05. Subsection (a), Section 13.184, Water Code, is
135-15 amended to read as follows:
135-16 (a) Unless the commission establishes alternate rate
135-17 methodologies in accordance with Section 13.183(c), the commission
135-18 [The regulatory authority] may not prescribe any rate that will
135-19 yield more than a fair return on the invested capital used and
135-20 useful in rendering service to the public. The governing body of a
135-21 municipality exercising its original jurisdiction over rates and
135-22 services may use alternate ratemaking methodologies established by
135-23 ordinance or by commission rule in accordance with Section
135-24 13.183(c). Unless the municipal regulatory authority uses
135-25 alternate ratemaking methodologies established by ordinance or by
136-1 commission rule in accordance with Section 13.183(c), it may not
136-2 prescribe any rate that will yield more than a fair return on the
136-3 invested capital used and useful in rendering service to the
136-4 public.
136-5 SECTION 6.06. Subsection (a), Section 13.185, Water Code, is
136-6 amended to read as follows:
136-7 (a) Unless alternate methodologies are adopted as provided
136-8 in Sections 13.183(c) and 13.184(a), the [The] components of
136-9 invested capital and net income shall be determined according to
136-10 the rules stated in this section.
136-11 SECTION 6.07. Subchapter G, Chapter 13, Water Code, is
136-12 amended by adding Section 13.241 to read as follows:
136-13 Sec. 13.241. GRANTING OR AMENDING CERTIFICATES. (a) In
136-14 determining whether to grant or amend a certificate of public
136-15 convenience and necessity, the commission shall ensure that the
136-16 applicant possesses the financial, managerial, and technical
136-17 capability to provide continuous and adequate service.
136-18 (b) For water utility service, the commission shall ensure
136-19 that the applicant:
136-20 (1) is capable of providing drinking water that meets
136-21 the requirements of Chapter 341, Health and Safety Code, and
136-22 requirements of this code; and
136-23 (2) has access to an adequate supply of water.
136-24 (c) For sewer utility service, the commission shall ensure
136-25 that the applicant is capable of meeting the commission's design
137-1 criteria for sewer treatment plants and the requirements of this
137-2 code.
137-3 (d) Before the commission grants a new or amended
137-4 certificate of convenience and necessity for an area which would
137-5 require construction of a physically separate water or sewer
137-6 system, the applicant must demonstrate that regionalization or
137-7 consolidation with another retail public utility is not
137-8 economically feasible.
137-9 SECTION 6.08. Section 13.246, Water Code, is amended to read
137-10 as follows:
137-11 Sec. 13.246. NOTICE AND HEARING; ISSUANCE, AMENDMENT, OR
137-12 REFUSAL; FACTORS CONSIDERED. (a) If an application for a
137-13 certificate of public convenience and necessity is filed, the
137-14 commission shall cause notice of the application to be given to
137-15 affected parties and, if requested, shall fix a time and place for
137-16 a hearing and give notice of the hearing. Any person affected by
137-17 the application may intervene at the hearing.
137-18 (b) The commission may grant applications and issue
137-19 certificates only if the commission finds that a certificate is
137-20 necessary for the service, accommodation, convenience, or safety of
137-21 the public. The commission may issue a certificate as requested,
137-22 or refuse to issue it, or issue it for the construction of only a
137-23 portion of the contemplated system or facility or extension, or for
137-24 the partial exercise only of the right or privilege and may impose
137-25 special conditions necessary to ensure that continuous and adequate
138-1 service is provided.
138-2 (c) Certificates of convenience and necessity shall be
138-3 granted or amended on a nondiscriminatory basis after consideration
138-4 by the commission of the adequacy of service currently provided to
138-5 the requested area, the need for additional service in the
138-6 requested area, the effect of the granting of a certificate on the
138-7 recipient of the certificate and on any retail public utility of
138-8 the same kind already serving the proximate area, the ability of
138-9 the applicant to provide adequate service, the feasibility of
138-10 obtaining service from an adjacent retail public utility, the
138-11 financial stability of the applicant, including, if applicable, the
138-12 adequacy of the applicant's debt-equity ratio, environmental
138-13 integrity, and the probable improvement of service or lowering of
138-14 cost to consumers in that area resulting from the granting of the
138-15 certificate.
138-16 (d) The commission may require that an applicant for a
138-17 certificate of convenience and necessity demonstrate adequate
138-18 financial, managerial, and technical capability for providing
138-19 continuous and adequate service to the requested area and any areas
138-20 currently certificated to the applicant.
138-21 (e) The commission may require an applicant utility to
138-22 provide a bond or other financial assurance in a form and amount
138-23 specified by the commission to ensure that continuous and adequate
138-24 utility service is provided.
138-25 (f) Where applicable, in addition to the other factors in
139-1 this section the commission shall consider the efforts of the
139-2 applicant to extend service to any economically distressed areas
139-3 located within the service areas certificated to the applicant.
139-4 For the purposes of this subsection, "economically distressed area"
139-5 has the meaning assigned by Section 15.001.
139-6 SECTION 6.09. Section 13.253, Water Code, is amended to read
139-7 as follows:
139-8 Sec. 13.253. IMPROVEMENTS IN SERVICE; INTERCONNECTING
139-9 SERVICE. After notice and hearing, the commission may:
139-10 (1) order any retail public utility that is required
139-11 by law to possess a certificate of public convenience and necessity
139-12 or any retail public utility that possesses a certificate of public
139-13 convenience and necessity and is located in an affected county as
139-14 defined in Section 16.341 to:
139-15 (A) provide specified improvements in its
139-16 service in a defined area if service in that area is inadequate or
139-17 is substantially inferior to service in a comparable area and it is
139-18 reasonable to require the retail public utility to provide the
139-19 improved service; or
139-20 (B) develop, implement, and follow financial,
139-21 managerial, and technical practices that are acceptable to the
139-22 commission to ensure that continuous and adequate service is
139-23 provided to any areas currently certificated to the retail public
139-24 utility if the retail public utility has not provided continuous
139-25 and adequate service to any of those areas;
140-1 (2) order two or more public utilities or water supply
140-2 or sewer service corporations to establish specified facilities for
140-3 [the] interconnecting service; [or]
140-4 (3) order a public utility or water supply or sewer
140-5 service corporation that has not demonstrated that it can provide
140-6 continuous and adequate service from its drinking water source or
140-7 sewer treatment facility to obtain service sufficient to meet its
140-8 obligation to provide continuous and adequate service on at least a
140-9 wholesale basis from another consenting utility service provider;
140-10 or
140-11 (4) issue an emergency order, with or without a
140-12 hearing, under Section 13.041 [of this code].
140-13 SECTION 6.10. Section 13.254, Water Code, is amended to read
140-14 as follows:
140-15 Sec. 13.254. REVOCATION OR AMENDMENT OF CERTIFICATE.
140-16 (a) The commission at any time after notice and hearing may revoke
140-17 or amend any certificate of public convenience and necessity with
140-18 the written consent of the certificate holder or if it finds that:
140-19 (1) the certificate holder has never provided, is no
140-20 longer providing, or has failed to provide continuous and adequate
140-21 service in the area, or part of the area, covered by the
140-22 certificate;
140-23 (2) in an affected county as defined in Section
140-24 16.341, the cost of providing service by the certificate holder is
140-25 so prohibitively expensive as to constitute denial of service,
141-1 provided that, for commercial developments or for residential
141-2 developments started after September 1, 1997, in an affected county
141-3 as defined in Section 16.341, the fact that the cost of obtaining
141-4 service from the currently certificated retail public utility makes
141-5 the development economically unfeasible does not render such cost
141-6 prohibitively expensive in the absence of other relevant factors;
141-7 (3) the certificate holder has agreed in writing to
141-8 allow another retail public utility to provide service within its
141-9 service area, except for an interim period, without amending its
141-10 certificate; or
141-11 (4) the certificate holder has failed to file a cease
141-12 and desist action pursuant to Section 13.252 within 180 days of the
141-13 date that it became aware that another retail public utility was
141-14 providing service within its service area, unless the certificate
141-15 holder demonstrates good cause for its failure to file such action
141-16 within the 180 days.
141-17 (b) Upon written request from the certificate holder, the
141-18 executive director may cancel the certificate of a utility or water
141-19 supply corporation authorized by rule to operate without a
141-20 certificate of public convenience and necessity under Section
141-21 13.242(c).
141-22 (c) If the certificate of any retail public utility is
141-23 revoked or amended, the commission may require one or more retail
141-24 public utilities with their consent to provide service in the area
141-25 in question. The order of the commission shall not be effective to
142-1 transfer property.
142-2 (d) A retail public utility may not in any way render retail
142-3 water or sewer service directly or indirectly to the public in an
142-4 area that has been decertified under this section without the
142-5 consent of the retail public utility that previously held the
142-6 certificate of convenience and necessity without providing
142-7 compensation for any property that the commission determines is
142-8 rendered useless or valueless to the decertified retail public
142-9 utility as a result of the decertification.
142-10 (e) The determination of the monetary amount of
142-11 compensation, if any, shall be determined at the time another
142-12 retail public utility seeks to provide service in the previously
142-13 decertified area and before service is actually provided.
142-14 (f) The monetary amount shall be determined by a qualified
142-15 individual or firm serving as independent appraiser selected by the
142-16 executive director after considering the recommendations of the
142-17 decertified retail public utility and the retail public utility
142-18 seeking to serve the area. The determination of compensation by
142-19 the independent appraiser shall be binding on the commission. The
142-20 costs of the independent appraiser shall be borne by the retail
142-21 public utility seeking to serve the area.
142-22 (g) For the purpose of implementing this section, the value
142-23 of real property shall be determined according to the standards set
142-24 forth in Chapter 21, Property Code, governing actions in eminent
142-25 domain and the value of personal property shall be determined
143-1 according to the factors in this subsection. The factors ensuring
143-2 that the compensation to a retail public utility for the taking,
143-3 damaging, or loss of personal property, including the retail public
143-4 utility's business, is just and adequate shall at a minimum
143-5 include: the impact on the existing indebtedness of the retail
143-6 public utility and its ability to repay that debt; the value of the
143-7 service facilities of the retail public utility located within the
143-8 area in question; the amount of any expenditures for planning,
143-9 design, or construction of service facilities that are allocable to
143-10 service to the area in question; the amount of the retail public
143-11 utility's contractual obligations allocable to the area in
143-12 question; any demonstrated impairment of service or increase of
143-13 cost to consumers of the retail public utility remaining after the
143-14 decertification; the impact on future revenues and expenses of the
143-15 retail public utility; necessary and reasonable legal expenses and
143-16 professional fees; factors relevant to maintaining the current
143-17 financial integrity of the retail public utility; and other
143-18 relevant factors.
143-19 (h) The commission shall determine whether payment of
143-20 compensation shall be in a lump sum or paid out over a specified
143-21 period of time. If there were no current customers in the area
143-22 decertified and no immediate loss of revenues or if there are other
143-23 valid reasons determined by the commission, installment payments as
143-24 new customers are added in the decertified area may be an
143-25 acceptable method of payment.
144-1 SECTION 6.11. Section 13.301, Water Code, is amended to read
144-2 as follows:
144-3 Sec. 13.301. REPORT OF SALE, MERGER, ETC.; INVESTIGATION;
144-4 DISALLOWANCE OF TRANSACTION. (a) A utility or a water supply or
144-5 sewer service corporation, on or before the 120th day before the
144-6 effective date of a sale, acquisition, lease, or rental of a water
144-7 or sewer system that is required by law to possess a certificate of
144-8 public convenience and necessity or the effective date of a merger
144-9 or consolidation with such a utility or water supply or sewer
144-10 service corporation, shall:
144-11 (1) file a written application with [notify] the
144-12 commission; and
144-13 (2) [give public notice] unless public notice is
144-14 waived by the executive director for good cause shown, give public
144-15 notice of the action [at least 120 days before the effective date
144-16 of any sale, acquisition, lease, or rental of any water or sewer
144-17 system required by law to possess a certificate of public
144-18 convenience and necessity or of any merger or consolidation with
144-19 such a utility or water supply or sewer service corporation].
144-20 (b) The commission may require that the person purchasing or
144-21 acquiring the water or sewer system demonstrate adequate financial,
144-22 managerial, and technical capability for providing continuous and
144-23 adequate service to the requested area and any areas currently
144-24 certificated to the person.
144-25 (c) If the person purchasing or acquiring the water or sewer
145-1 system cannot demonstrate adequate financial capability, the
145-2 commission may require that the person provide a bond or other
145-3 financial assurance in a form and amount specified by the
145-4 commission to ensure continuous and adequate utility service is
145-5 provided.
145-6 (d) The commission shall, with or without a public hearing,
145-7 investigate the sale, acquisition, lease, or rental to determine
145-8 whether the transaction will serve the public interest.
145-9 (e) [(c)] Before the expiration of the 120-day notification
145-10 period, the executive director shall notify all known parties to
145-11 the transaction of the executive director's decision whether to
145-12 request that the commission hold a public hearing to determine if
145-13 the transaction will serve the public interest. The executive
145-14 director may request a hearing if:
145-15 (1) the application filed with [notification to] the
145-16 commission or the public notice was improper;
145-17 (2) the person purchasing or acquiring the water or
145-18 sewer system has not demonstrated adequate financial, managerial,
145-19 and technical capability for providing continuous and adequate
145-20 service to the service area being acquired and to any areas
145-21 currently certificated to the person [is inexperienced as a utility
145-22 service provider];
145-23 (3) the person or an affiliated interest of the person
145-24 purchasing or acquiring the water or sewer system has a history of:
145-25 (A) noncompliance with the requirements of the
146-1 commission or the Texas Department of Health; or
146-2 (B) [of] continuing mismanagement or misuse of
146-3 revenues as a utility service provider;
146-4 (4) the person purchasing or acquiring the water or
146-5 sewer system cannot demonstrate the financial ability to provide
146-6 the necessary capital investment to ensure the provision of
146-7 continuous and adequate service to the customers of the water or
146-8 sewer system; or
146-9 (5) there are concerns that the transaction may not
146-10 serve the public interest, after the application of the
146-11 considerations provided by Section 13.246(c) for determining
146-12 whether to grant a certificate of convenience and necessity.
146-13 (f) [(d)] Unless the executive director requests that a
146-14 public hearing be held, the sale, acquisition, lease, or rental may
146-15 be completed as proposed:
146-16 (1) at the end of the 120-day period; or
146-17 (2) [may be completed] at any time after the executive
146-18 director notifies the utility or water supply or sewer service
146-19 corporation that a hearing will not be requested.
146-20 (g) If a hearing is requested or if the utility or water
146-21 supply or sewer service corporation fails to make the application
146-22 as [provide the] required [notification] or to provide public
146-23 notice, the sale, acquisition, lease, or rental may not be
146-24 completed unless the commission determines that the proposed
146-25 transaction serves the public interest.
147-1 (h) A sale, acquisition, lease, or rental of any water or
147-2 sewer system required by law to possess a certificate of public
147-3 convenience and necessity that is not completed in accordance with
147-4 the provisions of this section is void.
147-5 (i) [(e)] This section does not apply to:
147-6 (1) the purchase of replacement property; or
147-7 (2) [to] a transaction under Section 13.255 of this
147-8 code.
147-9 (j) [(f)] If a public utility facility or system is sold and
147-10 the facility or system was partially or wholly constructed with
147-11 customer contributions in aid of construction derived from specific
147-12 surcharges approved by the regulatory authority over and above
147-13 revenues required for normal operating expenses and return, the
147-14 public utility may not sell or transfer any of its assets, its
147-15 certificate of convenience and necessity, or its controlling
147-16 interest in an incorporated utility, unless the utility provides to
147-17 the purchaser or transferee before the date of the sale or transfer
147-18 a written disclosure relating to the contributions. The disclosure
147-19 must contain, at a minimum, the total dollar amount of the
147-20 contributions and a statement that the contributed property or
147-21 capital may not be included in invested capital or allowed
147-22 depreciation expense by the regulatory authority in rate-making
147-23 proceedings.
147-24 (k) [(g)] A utility or a water supply or sewer service
147-25 corporation that proposes to sell, assign, lease, or rent its
148-1 facilities shall notify the other party to the transaction of the
148-2 requirements of this section before signing an agreement to sell,
148-3 assign, lease, or rent its facilities.
148-4 SECTION 6.12. Section 13.302, Water Code, is amended to read
148-5 as follows:
148-6 Sec. 13.302. PURCHASE OF VOTING STOCK IN ANOTHER PUBLIC
148-7 UTILITY: REPORT. (a) A utility may not purchase voting stock in
148-8 another utility doing business in this state and a person may not
148-9 acquire a controlling interest in a utility doing business in this
148-10 state unless the person or utility files a written application with
148-11 [notifies] the commission [of the proposed purchase or acquisition]
148-12 not later than the 61st day before the date on which the
148-13 transaction is to occur.
148-14 (b) The commission may require that a person acquiring a
148-15 controlling interest in a utility demonstrate adequate financial,
148-16 managerial, and technical capability for providing continuous and
148-17 adequate service to the requested area and any areas currently
148-18 certificated to the person.
148-19 (c) If the person acquiring a controlling interest cannot
148-20 demonstrate adequate financial capability, the commission may
148-21 require that the person provide a bond or other financial assurance
148-22 in a form and amount specified by the commission to ensure
148-23 continuous and adequate utility service is provided.
148-24 (d) The executive director may request that the commission
148-25 hold a public hearing on the transaction if the executive director
149-1 believes that a criterion [criteria] prescribed by Section
149-2 13.301(e) [13.301(c) of this code] applies.
149-3 (e) [(c)] Unless the executive director requests that a
149-4 public hearing be held, the purchase or acquisition may be
149-5 completed as proposed:
149-6 (1) at the end of the 60-day period; or
149-7 (2) [may be completed] at any time after the executive
149-8 director notifies the person or utility that a hearing will not be
149-9 requested.
149-10 (f) If a hearing is requested or if the person or utility
149-11 fails to make the application to the commission as [provide the]
149-12 required [notification to the commission], the purchase or
149-13 acquisition may not be completed unless the commission determines
149-14 that the proposed transaction serves the public interest. A
149-15 purchase or acquisition that is not completed in accordance with
149-16 the provisions of this section is void.
149-17 SECTION 6.13. Section 13.412, Water Code, is amended by
149-18 amending Subsections (a) and (b) and adding Subsections (f) and (g)
149-19 to read as follows:
149-20 (a) At the request of the commission, the attorney general
149-21 shall bring suit for the appointment of a receiver to collect the
149-22 assets and carry on the business of a water or sewer utility that:
149-23 (1) has abandoned operation of its facilities;
149-24 (2) informs the commission that the owner is
149-25 abandoning the system;
150-1 (3) [or] violates a final order of the commission; or
150-2 (4) allows any property owned or controlled by it to
150-3 be used in violation of a final order of the commission.
150-4 (b) The court shall appoint a receiver if an appointment is
150-5 necessary:
150-6 (1) to guarantee the collection of assessments, fees,
150-7 penalties, or interest;
150-8 (2) to guarantee continuous and adequate [continued]
150-9 service to the customers of the utility; or
150-10 (3) to prevent continued or repeated violation of the
150-11 final order.
150-12 (f) For purposes of this section and Section 13.4132,
150-13 abandonment may include but is not limited to:
150-14 (1) failure to pay a bill or obligation owed to a
150-15 retail public utility or to an electric or gas utility with the
150-16 result that the utility service provider has issued a notice of
150-17 discontinuance of necessary services;
150-18 (2) failure to provide appropriate water or wastewater
150-19 treatment so that a potential health hazard results;
150-20 (3) failure to adequately maintain facilities,
150-21 resulting in potential health hazards, extended outages, or
150-22 repeated service interruptions;
150-23 (4) failure to provide customers adequate notice of a
150-24 health hazard or potential health hazard;
150-25 (5) failure to secure an alternative available water
151-1 supply during an outage;
151-2 (6) displaying a pattern of hostility towards or
151-3 repeatedly failing to respond to the commission or the utility's
151-4 customers; and
151-5 (7) failure to provide the commission with adequate
151-6 information on how to contact the utility for normal business and
151-7 emergency purposes.
151-8 (g) Notwithstanding Section 64.021, Civil Practice and
151-9 Remedies Code, a receiver appointed under this section may seek
151-10 commission approval to acquire the water or sewer utility's
151-11 facilities and transfer the utility's certificate of convenience
151-12 and necessity. The receiver must apply in accordance with
151-13 Subchapter H.
151-14 SECTION 6.14. Subsections (a) and (c), Section 13.4132,
151-15 Water Code, are amended to read as follows:
151-16 (a) The commission, after providing to the utility notice
151-17 and an opportunity to be heard by the commissioners at a commission
151-18 meeting [for a hearing], may authorize a willing person to
151-19 temporarily manage and operate a utility if the utility:
151-20 (1) [that] has discontinued or abandoned operations or
151-21 the provision of services; or
151-22 (2) has been or is being referred to the attorney
151-23 general for the appointment of a receiver under Section 13.412 [of
151-24 this code].
151-25 (c) A person appointed under this section has the powers and
152-1 duties necessary to ensure the continued operation of the utility
152-2 and the provision of continuous and adequate services to customers,
152-3 including the power and duty to:
152-4 (1) read meters;
152-5 (2) bill for utility services;
152-6 (3) collect revenues;
152-7 (4) disburse funds; [and]
152-8 (5) access all system components; and
152-9 (6) request rate increases.
152-10 SECTION 6.15. Section 15.602, Water Code, is amended to read
152-11 as follows:
152-12 Sec. 15.602. DEFINITIONS. In this subchapter:
152-13 (1) "Additional state revolving fund" means any state
152-14 revolving fund hereafter established by the board to provide
152-15 financial assistance to political subdivisions for public works in
152-16 accordance with a capitalization grant program hereafter
152-17 established by a federal agency or otherwise authorized by federal
152-18 law.
152-19 (2) "Authorized investments" means any authorized
152-20 investments described in Section 404.024, Government Code.
152-21 (3) "Community water system" means a public water
152-22 system that:
152-23 (A) serves at least 15 service connections used
152-24 by year-round residents of the area served by the system; or
152-25 (B) regularly serves at least 25 year-round
153-1 residents.
153-2 (4) "Construction" shall have the meaning assigned by
153-3 the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).
153-4 (5) "Disadvantaged community" means an area meeting
153-5 criteria established by board rule, which criteria shall be based
153-6 on measures that may include single-family residential property
153-7 valuation, income levels of residents of the area, or other
153-8 similarly appropriate measures.
153-9 (6) [(4)] "Federal Act" means the Federal Water
153-10 Pollution Control Act, as amended (33 U.S.C. 1251 et seq.).
153-11 (7) "Nonprofit noncommunity water system" means a
153-12 public water system that is not operated for profit and that:
153-13 (A) is owned by a political subdivision or
153-14 nonprofit entity; and
153-15 (B) is not a community water system.
153-16 (8) [(5)] "Political subdivision" means a
153-17 municipality, intermunicipal, interstate, or state agency, [or] any
153-18 other public entity eligible for assistance under this subchapter,
153-19 or a nonprofit water supply corporation created and operating under
153-20 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
153-21 (Article 1434a, Vernon's Texas Civil Statutes), if such entity is
153-22 eligible for financial assistance under federal law establishing
153-23 the state revolving fund or an additional state revolving fund.
153-24 (9) "Public water system" means a system that is owned
153-25 by any person and that meets the definition of public water system
154-1 in the Safe Drinking Water Act.
154-2 (10) [(6)] "Public works" means any project to
154-3 acquire, construct, improve, repair, or otherwise provide any
154-4 buildings, structures, facilities, equipment, or other real or
154-5 personal property or improvements designed for public use,
154-6 protection, or enjoyment undertaken by a political subdivision and
154-7 paid for, in whole or in part, out of public funds.
154-8 (11) [(7)] "Revolving fund" means the state water
154-9 pollution control revolving fund.
154-10 (12) "Safe Drinking Water Act" means Title XIV of the
154-11 federal Public Health Service Act, commonly known as the Safe
154-12 Drinking Water Act, as amended (42 U.S.C. Section 300f et seq.).
154-13 (13) "Safe drinking water revolving fund" means the
154-14 fund established by the board as an additional state revolving fund
154-15 to provide financial assistance in accordance with the federal
154-16 program established pursuant to the provisions of the Safe Drinking
154-17 Water Act.
154-18 (14) [(8)] "Treatment works" has the meaning
154-19 established by the federal act and the eligible components of the
154-20 management programs established by Sections 319 and 320 of the
154-21 federal act.
154-22 SECTION 6.16. Subchapter J, Chapter 15, Water Code, is
154-23 amended by adding Section 15.6041 to read as follows:
154-24 Sec. 15.6041. FINANCIAL ASSISTANCE UNDER THE SAFE DRINKING
154-25 WATER REVOLVING FUND. (a) The safe drinking water revolving fund
155-1 shall be administered by the board under this subchapter and rules
155-2 adopted by the board. The safe drinking water revolving fund shall
155-3 be held and administered by the board in the same manner as
155-4 provided by Section 15.603, except that the safe drinking water
155-5 revolving fund shall be held and administered in accordance with
155-6 the Safe Drinking Water Act and shall be used to provide financial
155-7 assistance in accordance with that act and in the manner provided
155-8 by rules adopted by the board:
155-9 (1) to political subdivisions for community water
155-10 systems and for nonprofit noncommunity water systems;
155-11 (2) to persons other than political subdivisions for
155-12 community water systems or nonprofit noncommunity water systems
155-13 from the account established by Subsection (b)(1);
155-14 (3) to persons, including political subdivisions, for
155-15 service to disadvantaged communities from the account established
155-16 by Subsection (b)(2); and
155-17 (4) for other purposes authorized by the Safe Drinking
155-18 Water Act.
155-19 (b) In addition to other accounts the board may establish in
155-20 the safe drinking water revolving fund, the board shall establish
155-21 the following separate accounts:
155-22 (1) the community/noncommunity water system financial
155-23 assistance account, to be used solely for providing financial
155-24 assistance to persons, other than political subdivisions, providing
155-25 services through a community water system or a nonprofit
156-1 noncommunity water system, which account shall be composed solely
156-2 of funds appropriated by the legislature, funds provided as gifts
156-3 or grants by the United States government, interest earnings on
156-4 amounts credited to the account, and repayments of loans made from
156-5 the account; and
156-6 (2) the disadvantaged community account, to be used
156-7 solely for providing financial assistance under the terms of
156-8 Subsections (c) and (d), which account shall be composed solely of
156-9 funds appropriated by the legislature, funds provided as gifts or
156-10 grants by the United States government, interest earnings on
156-11 amounts credited to the account, and repayments of loans made from
156-12 the account.
156-13 (c) The board may provide financial assistance from the
156-14 disadvantaged community account to:
156-15 (1) a political subdivision:
156-16 (A) that is a disadvantaged community; or
156-17 (B) for a project serving an area that:
156-18 (i) is located outside the boundaries of
156-19 the political subdivision; and
156-20 (ii) meets the definition of a
156-21 disadvantaged community; or
156-22 (2) an owner of a community water system that is
156-23 ordered by the commission to provide service to a disadvantaged
156-24 community, provided that the financial assistance is for the sole
156-25 purpose of providing service to a disadvantaged community.
157-1 (d) In providing financial assistance from the disadvantaged
157-2 community account, the board shall determine the amount of a loan
157-3 which the political subdivision cannot repay based on affordability
157-4 criteria established by the board by rule. The board shall forgive
157-5 repayment of that portion of the principal of the loan which the
157-6 board determines the political subdivision cannot repay. Financial
157-7 assistance from the disadvantaged community account may not exceed
157-8 the allowable percentage of the amount of the capitalization grant
157-9 received by the state pursuant to the Safe Drinking Water Act.
157-10 SECTION 6.17. Subsections (c) and (g), Section 15.603, Water
157-11 Code, are amended to read as follows:
157-12 (c) The revolving fund consists of money derived from
157-13 federal grants, direct appropriations, investment earnings on
157-14 amounts credited to the revolving fund, and, at the board's
157-15 discretion, from any and all sources available [to provide the
157-16 required state match for the purposes of this subchapter].
157-17 (g) The revolving fund and any accounts established in the
157-18 revolving fund shall be kept and maintained by or at the direction
157-19 of the board and do not constitute and are not a part of the State
157-20 Treasury. However, at the direction of the board, the revolving
157-21 fund or accounts in the revolving fund may be kept and held in
157-22 escrow and in trust by the comptroller [State Treasurer] for and on
157-23 behalf of the board, shall be used only as provided by this
157-24 subchapter, and pending such use shall be invested in authorized
157-25 investments as provided by any order, resolution, or rule of the
158-1 board. Legal title to money and investments in the revolving fund
158-2 is in the board unless or until paid out as provided by this
158-3 subchapter, the federal act, and the rules of the board. The
158-4 comptroller [State Treasurer], as custodian, shall administer the
158-5 funds strictly and solely as provided by this subchapter and in the
158-6 orders, resolutions, and rules, and the state shall take no action
158-7 with respect to the revolving fund other than that specified in
158-8 this subchapter, the federal act, and the rules of the board.
158-9 SECTION 6.18. Subsection (a), Section 341.031, Health and
158-10 Safety Code, is amended to read as follows:
158-11 (a) Public drinking water must be free from deleterious
158-12 matter and must comply with the standards established by the
158-13 commission[, the United States Public Health Service,] or the
158-14 United States Environmental Protection Agency. The commission may
158-15 adopt and enforce rules to implement the federal Safe Drinking
158-16 Water Act (42 U.S.C. Section 300f et seq.).
158-17 SECTION 6.19. Subchapter C, Chapter 341, Health and Safety
158-18 Code, is amended by adding Section 341.0315 to read as follows:
158-19 Sec. 341.0315. PUBLIC DRINKING WATER SUPPLY SYSTEM
158-20 REQUIREMENTS. (a) To preserve the public health, safety, and
158-21 welfare, the commission shall ensure that public drinking water
158-22 supply systems:
158-23 (1) supply safe drinking water in adequate quantities;
158-24 (2) are financially stable; and
158-25 (3) are technically sound.
159-1 (b) The commission shall encourage and promote the
159-2 development and use of regional and areawide drinking water supply
159-3 systems.
159-4 (c) Each public drinking water supply system shall provide
159-5 an adequate and safe drinking water supply. The supply must meet
159-6 the requirements of Section 341.031 and commission rules.
159-7 (d) The commission shall consider compliance history in
159-8 determining issuance of new permits, renewal permits, and permit
159-9 amendments for a public drinking water system.
159-10 SECTION 6.20. Subchapter C, Chapter 341, Health and Safety
159-11 Code, is amended by amending Section 341.035 and adding Sections
159-12 341.0351 through 341.0356 to read as follows:
159-13 Sec. 341.035. APPROVED PLANS REQUIRED FOR PUBLIC WATER
159-14 SUPPLIES. (a) Except as provided by Subsection (d), a person may
159-15 not begin construction of a public drinking water supply system
159-16 unless the executive director of the commission approves:
159-17 (1) a business plan for the system; and
159-18 (2) the plans and specifications for the system.
159-19 (b) The prospective owner or operator of the system must
159-20 submit to the executive director a business plan that demonstrates
159-21 that the owner or operator of the proposed system has available the
159-22 financial, managerial, and technical capability to ensure future
159-23 operation of the system in accordance with applicable laws and
159-24 rules. The executive director:
159-25 (1) shall review the business plan; and
160-1 (2) may order the prospective owner or operator of the
160-2 system to provide adequate financial assurance of ability to
160-3 operate the system in accordance with applicable laws and rules, in
160-4 the form of a bond or as specified by the commission, unless the
160-5 executive director finds that the business plan demonstrates
160-6 adequate financial capability.
160-7 (c) The prospective owner or operator of the proposed system
160-8 shall provide to the commission [A person contemplating
160-9 establishing a drinking water supply system for public use must
160-10 submit] completed plans and specifications for review and approval
160-11 in accordance with commission rules.
160-12 (d) A person is not required to file a business plan under
160-13 Subsection (a) or (b) if the person:
160-14 (1) is a county;
160-15 (2) is a retail public utility as defined by Section
160-16 13.002, Water Code, unless that person is a utility as defined by
160-17 that section; or
160-18 (3) has executed an agreement with a political
160-19 subdivision to transfer the ownership and operation of the water
160-20 supply system to the political subdivision [to the commission
160-21 before construction of the system. The commission shall approve
160-22 plans that conform to the state's water safety laws. The water
160-23 supply system may be established only on the commission's
160-24 approval].
160-25 Sec. 341.0351. NOTIFICATION OF SYSTEM CHANGES. [(b)] Any
161-1 person [agency], including a municipality, supplying a drinking
161-2 water service to the public that intends to make a material or
161-3 major change in a water supply system that may affect the sanitary
161-4 features of that utility must give written notice of that intention
161-5 to the commission before making the change.
161-6 Sec. 341.0352. ADVERTISED QUALITY OF WATER SUPPLY. [(c)] A
161-7 water supply system owner, manager, or operator or an agent of a
161-8 water supply system owner, manager, or operator may not advertise
161-9 or announce a water supply as being of a quality other than the
161-10 quality that is disclosed by the commission's latest rating.
161-11 Sec. 341.0353. DRINKING WATER SUPPLY COMPARATIVE RATING
161-12 INFORMATION. [(d)] The commission shall assemble and tabulate all
161-13 necessary information [data] relating to public drinking water
161-14 supplies at least once each year and as often during the year as
161-15 conditions demand or justify. The information [data] forms the
161-16 basis of an official comparative rating of public drinking water
161-17 supply systems.
161-18 Sec. 341.0354. HIGHWAY SIGNS FOR APPROVED SYSTEM RATING.
161-19 [(e)] A water supply system that attains an approved rating is
161-20 entitled to erect signs of a design approved by the commission on
161-21 highways approaching the municipality in which the water supply
161-22 system is located. The signs shall be immediately removed on
161-23 notice from the commission if the water supply system does not
161-24 continue to meet the specified standards.
161-25 Sec. 341.0355. FINANCIAL ASSURANCE FOR CERTAIN SYSTEMS.
162-1 (a) The commission may require the owner or operator of a public
162-2 drinking water supply system that was constructed without the
162-3 approval required by Section 341.035, that has a history of
162-4 noncompliance with this subchapter or commission rules, or that is
162-5 subject to a commission enforcement action to:
162-6 (1) provide the executive director of the commission
162-7 with a business plan that demonstrates that the system has
162-8 available the financial, managerial, and technical resources
162-9 adequate to ensure future operation of the system in accordance
162-10 with applicable laws and rules; and
162-11 (2) provide adequate financial assurance of the
162-12 ability to operate the system in accordance with applicable laws
162-13 and rules in the form of a bond or as specified by the commission.
162-14 (b) If the commission relies on rate increases or customer
162-15 surcharges as the form of financial assurance, such funds shall be
162-16 deposited in an escrow account and released only with the approval
162-17 of the commission.
162-18 Sec. 341.0356. ORDER TO STOP OPERATIONS. (a) A public
162-19 water supply system shall stop operations on receipt of a written
162-20 notification of the executive director of the commission or an
162-21 order of the commission issued under this section.
162-22 (b) The executive director or the commission may order a
162-23 public water supply system to stop operations if:
162-24 (1) the system was constructed without the approval
162-25 required by Section 341.035; or
163-1 (2) the executive director determines that the system
163-2 presents an imminent health hazard.
163-3 (c) A notification or order issued under this section may be
163-4 delivered by facsimile, by personal service, or by mail.
163-5 (d) A water supply system subject to notification or an
163-6 order under this section, on written request, is entitled to an
163-7 opportunity to be heard by the commissioners at a commission
163-8 meeting.
163-9 (e) The public water supply system may not resume operations
163-10 until the commission, the executive director, or a court authorizes
163-11 the resumption.
163-12 SECTION 6.21. Subsections (a) and (b), Section 341.047,
163-13 Health and Safety Code, are amended to read as follows:
163-14 (a) A person commits an offense if the person:
163-15 (1) violates a provision of Section 341.031;
163-16 (2) violates a provision of Section 341.032(a) or (b);
163-17 (3) violates a provision of Section 341.033(a)-(f);
163-18 (4) constructs a drinking water supply system without
163-19 submitting completed plans and specifications as required by
163-20 Section 341.035(c) [341.035(a)];
163-21 (5) begins construction of [establishes] a drinking
163-22 water supply system without the commission's approval as required
163-23 by Section 341.035(a);
163-24 (6) violates a provision of Section 341.0351 or
163-25 341.0352 [341.035(b) or (c)];
164-1 (7) fails to remove a sign as required by Section
164-2 341.0354 [341.035(e)]; or
164-3 (8) violates a provision of Section 341.036.
164-4 (b) An offense under Subsection (a) is a Class C misdemeanor
164-5 [punishable by a fine of not less than $100].
164-6 SECTION 6.22. Subsections (b) through (i), Section 341.048,
164-7 Health and Safety Code, are amended to read as follows:
164-8 (b) A person who causes, suffers, allows, or permits a
164-9 violation under this subchapter shall be assessed a civil penalty
164-10 of not less than $50 nor more than $10,000 [$500] for each
164-11 violation. Each day of a continuing violation is a separate
164-12 violation.
164-13 (c) [If it is shown on a trial of the defendant that the
164-14 defendant has previously been assessed a civil penalty under this
164-15 section within a year before the date on which the violation being
164-16 tried occurred, the defendant shall be assessed a civil penalty of
164-17 not less than $50 nor more than $1,000 for each subsequent
164-18 violation under this subchapter. Each day of a continuing
164-19 violation is a separate violation.]
164-20 [(d)] If it appears that a person has violated, is
164-21 violating, or threatens to violate a provision under this
164-22 subchapter, the commission, a county, or a municipality may
164-23 institute a civil suit in a district court for:
164-24 (1) injunctive relief to restrain the person from
164-25 continuing the violation or threat of violation;
165-1 (2) the assessment and recovery of a civil penalty; or
165-2 (3) both injunctive relief and a civil penalty.
165-3 (d) [(e)] The commission is a necessary and indispensable
165-4 party in a suit brought by a county or municipality under this
165-5 section.
165-6 (e) [(f)] On the commission's request, the attorney general
165-7 shall institute a suit in the name of the state for injunctive
165-8 relief, to recover a civil penalty, or for both injunctive relief
165-9 and civil penalty.
165-10 (f) [(g)] The suit may be brought in:
165-11 (1) Travis County;
165-12 (2) [, in] the county in which the defendant resides;
165-13 or
165-14 (3) [, or in] the county in which the violation or
165-15 threat of violation occurs.
165-16 (g) [(h)] In a suit under this section to enjoin a violation
165-17 or threat of violation of this subchapter, the court shall grant
165-18 the state, county, or municipality, without bond or other
165-19 undertaking, any injunction that the facts may warrant including
165-20 temporary restraining orders, temporary injunctions after notice
165-21 and hearing, and permanent injunctions.
165-22 (h) [(i)] Civil penalties recovered in a suit brought under
165-23 this section by a county or municipality shall be equally divided
165-24 between:
165-25 (1) the state; and
166-1 (2) the county or municipality that first brought the
166-2 suit.
166-3 SECTION 6.23. Subsection (a), Section 341.049, Health and
166-4 Safety Code, is amended to read as follows:
166-5 (a) If a person causes, suffers, allows, or permits a
166-6 violation of this subchapter or a rule or order adopted under this
166-7 subchapter, the commission may assess a penalty against that person
166-8 as provided by this section. The penalty shall not be less than
166-9 $50 nor more than $10,000 [$500] for each violation. Each day of a
166-10 continuing violation may be considered a separate violation.
166-11 ARTICLE 7. WATER DATA COLLECTION AND DISSEMINATION
166-12 SECTION 7.01. Section 16.012, Water Code, is amended to read
166-13 as follows:
166-14 Sec. 16.012. STUDIES, INVESTIGATIONS, SURVEYS. (a) The
166-15 executive administrator shall make studies, investigations, and
166-16 surveys of the occurrence, quantity, quality, and availability of
166-17 the surface water and groundwater of this state and shall, in
166-18 cooperation with other entities of the state, guide the development
166-19 of a statewide water resource data collection and dissemination
166-20 network. For these purposes the board [staff] shall collect,
166-21 receive, analyze, [and] process, and facilitate access to basic
166-22 data and summary information concerning [the] water resources of
166-23 the state and provide guidance regarding data formats and
166-24 descriptions required to access and understand Texas water resource
166-25 data.
167-1 (b) The executive administrator shall:
167-2 (1) determine suitable locations for future water
167-3 facilities, including reservoir sites;
167-4 (2) determine suitable, cost-effective water supply
167-5 alternatives on a regional basis;
167-6 (3) locate land best suited for irrigation;
167-7 (4) [(3)] make estimates of the cost of proposed
167-8 irrigation works and the improvement of reservoir sites;
167-9 (5) [(4)] examine and survey reservoir sites; [and]
167-10 (6) monitor [(5) investigate] the effects of fresh
167-11 water inflows upon the bays and estuaries of Texas;
167-12 (7) monitor instream flows;
167-13 (8) lead a statewide effort, in coordination with
167-14 federal, state, and local governments, institutions of higher
167-15 education, and other interested parties, to develop a network for
167-16 collecting and disseminating water resource-related information
167-17 that is sufficient to support assessment of ambient water
167-18 conditions statewide;
167-19 (9) make recommendations for optimizing the efficiency
167-20 and effectiveness of water resource data collection and
167-21 dissemination as necessary to ensure that basic water resource data
167-22 are maintained and available for Texas;
167-23 (10) make basic data and summary information developed
167-24 under this subsection accessible to state agencies and other
167-25 interested persons; and
168-1 (11) cooperate with the Texas Agricultural Extension
168-2 Service to facilitate development and delivery of educational
168-3 programs as appropriate for rural and urban water users.
168-4 (c) In performing the duties required under Subdivisions
168-5 (1), (4), (5), (6), and (7) of Subsection (b), the executive
168-6 administrator shall consider advice from the Parks and Wildlife
168-7 Department.
168-8 (d) All entities of the state, including institutions of
168-9 higher education, that collect or use water data or information
168-10 shall cooperate with the board in the development of a coordinated,
168-11 efficient, and effective statewide water resource data collection
168-12 and dissemination network.
168-13 (e) The executive administrator shall keep full and proper
168-14 records of his work, observations, data, and calculations, all of
168-15 which are the property of the state.
168-16 (f) [(d)] In performing his duties under this section, the
168-17 executive administrator shall assist the commission in carrying out
168-18 the purposes and policies stated in Section 12.014 of this code.
168-19 (g) No later than December 31, 1999, the commission shall
168-20 obtain or develop an updated water availability model for six river
168-21 basins as determined by the commission. The commission shall
168-22 obtain or develop an updated water availability model for all
168-23 remaining river basins no later than December 31, 2001.
168-24 (h) Within 90 days of completing a water availability model
168-25 for a river basin, the commission shall provide to all holders of
169-1 existing permits, certified filings, and certificates of
169-2 adjudication in that river basin the projected amount of water that
169-3 would be available: during a drought of record; when flows are at
169-4 75 percent of normal; and when flows are at 50 percent of normal.
169-5 (i) Within 90 days of completing a water availability model
169-6 for a river basin, the commission shall provide to each regional
169-7 water planning group created under Section 16.053 of this code in
169-8 that river basin the projected amount of water that would be
169-9 available if cancellation procedures were instigated under the
169-10 provisions of Subchapter E, Chapter 11 of this code.
169-11 (j) Within 90 days of completing a water availability model
169-12 for a river basin, the commission, in coordination with the Parks
169-13 and Wildlife Department, shall determine the maximum amount of
169-14 municipal effluent that may be reused without causing harm to
169-15 existing water rights, instream uses, and freshwater inflows to
169-16 bays and estuaries. Within 30 days of making this determination,
169-17 the commission shall provide the projections to each regional water
169-18 planning group created under Section 16.053 of this code in that
169-19 river basin.
169-20 SECTION 7.02. Section 16.021, Water Code, is amended to read
169-21 as follows:
169-22 Sec. 16.021. TEXAS NATURAL RESOURCES INFORMATION SYSTEM.
169-23 (a) The executive administrator shall establish the Texas Natural
169-24 Resources Information System (TNRIS) to serve Texas agencies and
169-25 citizens as a centralized clearinghouse and referral center for
170-1 natural resource, census, and other socioeconomic data [as a
170-2 centralized information system incorporating all Texas natural
170-3 resource data, socioeconomic data related to natural resources, or
170-4 indexes related to that data that is collected by state agencies or
170-5 other entities].
170-6 (b) The Texas Geographic Information Council (TGIC) [Natural
170-7 Resources Information System Task Force] is created to provide
170-8 strategic planning and coordination in the acquisition and use of
170-9 geo-spatial data and related technologies in the State of Texas.
170-10 The executive administrator and the executive director of the
170-11 Department of Information Resources shall designate entities to be
170-12 members of the TGIC. The chief administrative officer of each
170-13 member entity shall select one representative to serve on the TGIC.
170-14 The duties of the TGIC shall include providing guidance to the
170-15 executive administrator in carrying out his duties under this
170-16 section and guidance to the Department of Information Resources for
170-17 development of rules related to statewide geo-spatial data and
170-18 technology standards. [The task force is composed of one
170-19 representative from each state agency designated by the executive
170-20 administrator. The executive administrator shall designate a state
170-21 agency as a participant in the task force if the agency collects or
170-22 uses natural resource and related socioeconomic data.
170-23 Representatives of each designated agency shall be selected by the
170-24 chief administrative officer of that agency.]
170-25 (c) Under the guidance of the TGIC [Texas Natural Resources
171-1 Information System Task Force], the executive administrator shall:
171-2 (1) further develop [and implement] the Texas Natural
171-3 Resources Information System by promoting and providing for
171-4 effective acquisition, archiving, documentation, indexing, and
171-5 dissemination of natural resource and related digital and
171-6 nondigital data and information;
171-7 (2) obtain information in response to disagreements
171-8 regarding names and name spellings for natural and cultural
171-9 features in the state and provide this information to the Board on
171-10 Geographic Names of the United States Department of the Interior;
171-11 (3) make recommendations to the Board on Geographic
171-12 Names of the United States Department of the Interior for naming
171-13 any natural or cultural feature subject to the limitations provided
171-14 by Subsection (d) of this section;
171-15 (4) make recommendations to the Department of
171-16 Information Resources to adopt and promote standards that
171-17 facilitate sharing of digital natural resource data and related
171-18 socioeconomic data among federal, state, and local governments and
171-19 other interested parties;
171-20 (5) acquire and disseminate natural resource and
171-21 related socioeconomic data describing the Texas-Mexico border
171-22 region; and
171-23 (6) coordinate, conduct, and facilitate the
171-24 development, maintenance, and use of mutually compatible statewide
171-25 digital base maps depicting natural resources and man-made
172-1 features.
172-2 (d) A recommendation may not be made under Subdivision (3)
172-3 of Subsection (c) of this section for:
172-4 (1) a feature previously named under statutory
172-5 authority or recognized by an agency of the federal government, the
172-6 state, or a political subdivision of the state;
172-7 (2) a feature located on private property for which
172-8 consent of the property owner cannot be obtained; or
172-9 (3) naming a natural or cultural feature for a living
172-10 person.
172-11 SECTION 7.03. On September 1, 1997, the Texas Natural
172-12 Resources Information System Task Force and the Texas Geographic
172-13 Information Systems Planning Council are merged into the Texas
172-14 Geographic Information Council. All designated member agencies of
172-15 both predecessor entities shall continue to serve as member
172-16 agencies of the Texas Geographic Information Council.
172-17 ARTICLE 8. REPEALER; EFFECTIVE DATE; SAVING; EMERGENCY
172-18 SECTION 8.01. Section 11.028, Water Code, is repealed.
172-19 SECTION 8.02. (a) Except as provided by Subsections (b)
172-20 through (f) of this section, this Act takes effect September 1,
172-21 1997.
172-22 (b) This section and Sections 2.03, 2.08, 2.09, 2.17, and
172-23 3.03 of this Act take effect immediately.
172-24 (c) Section 4.37 of this Act takes effect on the first day
172-25 of the first calendar quarter beginning on or after the date that
173-1 it may take effect under Section 39, Article III, Texas
173-2 Constitution.
173-3 (d) The change in law made by Section 4.37 of this Act to
173-4 Section 151.318, Tax Code, does not affect taxes imposed before the
173-5 effective date of Section 4.37 of this Act, and the law in effect
173-6 before the effective date of that section is continued in effect
173-7 for purposes of liability for and collection of those taxes.
173-8 (e) Sections 5.03, 5.05 through 5.08, and 5.11 of this Act
173-9 take effect on the date on which the constitutional amendment
173-10 proposed by S.J.R. No. 17, 75th Legislature, Regular Session, 1997,
173-11 takes effect. If that amendment is not approved by the voters,
173-12 those sections have no effect.
173-13 (f) The change in law made by Section 5.11 of this Act to
173-14 Subchapter B, Chapter 11, Tax Code, does not affect taxes imposed
173-15 before the effective date of Section 5.11 of this Act, and the law
173-16 in effect before the effective date of that section is continued in
173-17 effect for purposes of liability for and collection of those taxes.
173-18 SECTION 8.03. (a) The requirement of Section 341.035,
173-19 Health and Safety Code, as amended by Section 6.20 of this Act,
173-20 that certain persons must provide the executive director of the
173-21 Texas Natural Resource Conservation Commission with a business
173-22 plan, applies only to the prospective owner or operator of a public
173-23 drinking water supply system for which construction begins on or
173-24 after September 1, 1997.
173-25 (b) Section 341.0355, Health and Safety Code, as added by
174-1 Section 6.20 of this Act, applies to the owner or operator of a
174-2 public drinking water supply system regardless of the date
174-3 construction of the system began.
174-4 SECTION 8.04. (a) A change in law made by this Act that
174-5 applies to a criminal, civil, or administrative penalty applies
174-6 only to an offense committed or a violation that occurs on or after
174-7 the effective date of this Act. For the purposes of this Act, an
174-8 offense is committed or a violation occurs before the effective
174-9 date of this Act if any element of the offense or violation occurs
174-10 before that date.
174-11 (b) An offense committed or violation that occurs before the
174-12 effective date of this Act is covered by the law in effect when the
174-13 offense was committed or the violation occurred, and the former law
174-14 is continued in effect for this purpose.
174-15 SECTION 8.05. The importance of this legislation and the
174-16 crowded condition of the calendars in both houses create an
174-17 emergency and an imperative public necessity that the
174-18 constitutional rule requiring bills to be read on three several
174-19 days in each house be suspended, and this rule is hereby suspended,
174-20 and that this Act take effect and be in force according to its
174-21 terms, and it is so enacted.