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.
1-23 (c) The board by rule [plan] shall define and designate
2-1 river basins and watersheds.
2-2 (d) The board, in coordination with the commission and the
2-3 Parks and Wildlife Department, shall adopt by rule guidance
2-4 principles for the state water plan which reflect the public
2-5 interest of the entire state. When adopting guidance principles,
2-6 due consideration shall be given to the construction and
2-7 improvement of surface water resources and the application of
2-8 principles that result in voluntary redistribution of water
2-9 resources.
2-10 (e) On adoption the board shall deliver the state water plan
2-11 to the governor, the lieutenant governor, and the speaker of the
2-12 house of representatives and present the plan for review to the
2-13 appropriate legislative committees. The plan shall include
2-14 legislative recommendations that the board believes are needed and
2-15 desirable to facilitate more voluntary water transfers. The plan
2-16 shall identify river and stream segments of unique ecological value
2-17 and sites of unique value for the construction of reservoirs that
2-18 the board recommends for protection under this section.
2-19 (f) The legislature may designate a:
2-20 (1) river or stream segment of unique ecological
2-21 value; or
2-22 (2) site of unique value for the construction of a
2-23 reservoir.
2-24 (g) A state agency or political subdivision of the state may
2-25 not obtain a fee title or an easement that would:
3-1 (1) destroy the unique ecological value of a river or
3-2 stream segment designated by the legislature under Subsection (f)
3-3 of this section; or
3-4 (2) significantly prevent the construction of a
3-5 reservoir on a site designated by the legislature under Subsection
3-6 (f) of this section.
3-7 (h) The board, the commission, or the Parks and Wildlife
3-8 Department or a political subdivision affected by an action taken
3-9 in violation of Subsection (g) of this section may bring a cause of
3-10 action to remedy or prevent the violation. A cause of action
3-11 brought under this subsection must be filed in a district court in
3-12 Travis County or in the county in which the action is proposed or
3-13 occurring. [(c) The executive administrator shall be governed in
3-14 his preparation of the plan by a regard for the public interest of
3-15 the entire state. The executive administrator shall direct his
3-16 efforts toward the orderly development and management of water
3-17 resources in order that sufficient water will be available at a
3-18 reasonable cost to further the economic development of the entire
3-19 state.]
3-20 [(d) The executive administrator shall also give
3-21 consideration in the plan to the effect of upstream development on
3-22 the bays, estuaries, and arms of the Gulf of Mexico and to the
3-23 effect of the plan on navigation.]
3-24 SECTION 1.02. Sections 16.053 through 16.057, Water Code,
3-25 are amended to read as follows:
4-1 Sec. 16.053. REGIONAL WATER PLANS. (a) The regional water
4-2 planning group in each regional water planning area shall prepare a
4-3 regional water plan, using an existing state water plan identified
4-4 in Section 16.051 of this code and local water plans prepared under
4-5 Section 16.054 of this code as a guide, if present, that provides
4-6 for the orderly development, management, and conservation of water
4-7 resources and preparation for and response to drought conditions in
4-8 order that sufficient water will be available at a reasonable cost
4-9 to ensure public health, safety, and welfare; further economic
4-10 development; and protect the agricultural and natural resources of
4-11 that particular region.
4-12 (b) No later than September 1, 1998, the board shall
4-13 designate the areas for which regional water plans shall be
4-14 developed, taking into consideration such factors as river basin
4-15 and aquifer delineations, water utility development patterns,
4-16 socioeconomic characteristics, existing regional water planning
4-17 areas, political subdivision boundaries, public comment, and other
4-18 factors the board deems relevant. The board shall review and
4-19 update the designations as necessary but at least every five years.
4-20 (c) No later than 60 days after the designation of the
4-21 regions under Subsection (b) of this section, the board shall
4-22 designate representatives within each regional water planning area
4-23 to serve as the initial coordinating body for planning. The
4-24 initial coordinating body shall then designate additional
4-25 representatives to serve on the regional water planning group,
5-1 ensuring adequate representation from the interests comprising that
5-2 region, including but not limited to the public, counties,
5-3 municipalities, industries, agricultural interests, environmental
5-4 interests, small businesses, electric generating utilities, river
5-5 authorities, water districts, and water utilities.
5-6 (d) The board shall provide guidelines for the consideration
5-7 of existing regional planning efforts by regional water planning
5-8 groups. The board shall provide guidelines for the format in which
5-9 information shall be presented in the regional water plans.
5-10 Nothing in the initial planning effort shall prevent development of
5-11 a management plan or project where local or regional needs require
5-12 action prior to completion of the initial regional water plan under
5-13 this section.
5-14 (e) Each regional water planning group shall submit to the
5-15 board a regional water plan that:
5-16 (1) is consistent with the guidance principles for the
5-17 state water plan adopted by the board under Section 16.051(d) of
5-18 this code;
5-19 (2) provides information based on data provided or
5-20 approved by the board in a format consistent with the guidelines
5-21 provided by the board under Subsection (d) of this section;
5-22 (3) has specific provisions for water management
5-23 strategies to be used:
5-24 (A) during a drought of record;
5-25 (B) when flows are at 75 percent of normal; and
6-1 (C) when flows are at 50 percent of normal;
6-2 (4) includes but is not limited to consideration of
6-3 the following:
6-4 (A) any existing water or drought planning
6-5 efforts addressing all or a portion of the region;
6-6 (B) certified groundwater conservation district
6-7 management plans and other plans submitted under Section 16.054 of
6-8 this code;
6-9 (C) all potentially feasible water management
6-10 strategies, including but not limited to improved conservation,
6-11 reuse, and management of existing water supplies, acquisition of
6-12 available existing water supplies, and development of new water
6-13 supplies;
6-14 (D) protection of existing water rights in the
6-15 region;
6-16 (E) opportunities for and the benefits of
6-17 developing regional water supply facilities or providing regional
6-18 management of water supply facilities;
6-19 (F) appropriate provision for environmental
6-20 water needs and for the effect of upstream development on the bays,
6-21 estuaries, and arms of the Gulf of Mexico and the effect of plans
6-22 on navigation;
6-23 (G) provisions in Section 11.085(k)(1) of this
6-24 code if interbasin transfers are contemplated;
6-25 (H) voluntary transfer of water within the
7-1 region using, but not limited to, regional water banks, sales,
7-2 leases, options, subordination agreements, and financing
7-3 agreements; and
7-4 (I) emergency transfer of water under Section
7-5 11.139 of this code, including information on the part of each
7-6 permit, certified filing, or certificate of adjudication for
7-7 nonmunicipal use in the region that may be transferred without
7-8 causing unreasonable damage to the property of the nonmunicipal
7-9 water rights holder; and
7-10 (5) identifies river and stream segments of unique
7-11 ecological value and sites of unique value for the construction of
7-12 reservoirs that the regional water planning group recommends for
7-13 protection under Section 16.051 of this code.
7-14 (f) No later than September 1, 1998, the board shall adopt
7-15 rules:
7-16 (1) to provide for the procedures for adoption of
7-17 regional water plans by regional water planning groups and for
7-18 approval of regional water plans by the board; and
7-19 (2) to govern procedures to be followed in carrying
7-20 out the responsibilities of this section.
7-21 (g) The board shall provide technical and financial
7-22 assistance to the regional water planning groups in the development
7-23 of their plans. The board shall simplify, as much as possible,
7-24 planning requirements in regions with abundant water resources.
7-25 The board, if requested, may facilitate resolution of conflicts
8-1 within regions.
8-2 (h)(1) Prior to the preparation of the regional water plan,
8-3 the regional water planning group shall, after notice, hold at
8-4 least one public meeting at some central location within the
8-5 regional planning area to gather suggestions and recommendations
8-6 from the public as to issues that should be addressed in the plan
8-7 or provisions that should be considered for inclusion in the plan.
8-8 (2) The regional water planning group shall provide an
8-9 ongoing opportunity for public input during the preparation of the
8-10 regional water plan.
8-11 (3) After the regional water plan is initially
8-12 prepared, the regional water planning group shall, after notice,
8-13 hold at least one public hearing at some central location within
8-14 the regional water planning area. The group shall make copies of
8-15 the plan available for public inspection at least one month before
8-16 the hearing by providing a copy of the plan in the county
8-17 courthouse and at least one public library of each county having
8-18 land in the region. Notice for the hearing shall include a listing
8-19 of these and any other location where the plan is available for
8-20 review.
8-21 (4) After the regional water plan is initially
8-22 prepared, the regional water planning group shall submit a copy of
8-23 the plan to the board. The board shall submit comments on the
8-24 regional water plan as to whether the plan meets the requirements
8-25 of Subsection (e) of this section.
9-1 (5) If no interregional conflicts exist, the regional
9-2 water planning group shall consider all public and board comments;
9-3 prepare, revise, and adopt the final plan; and submit the adopted
9-4 plan to the board for approval and inclusion in the state water
9-5 plan.
9-6 (6) If an interregional conflict exists, the board
9-7 shall facilitate coordination between the involved regions to
9-8 resolve the conflict. If conflict remains, the board shall resolve
9-9 the conflict. On resolution of the conflict, the involved regional
9-10 water planning groups shall prepare revisions to their respective
9-11 plans and hold, after notice, at least one public hearing at some
9-12 central location within their respective regional water planning
9-13 areas. The regional water planning groups shall consider all
9-14 public and board comments; prepare, revise, and adopt their
9-15 respective plans; and submit their plans to the board for approval
9-16 and inclusion in the state water plan.
9-17 (7) The board may approve a regional water plan only
9-18 after it has determined that all interregional conflicts involving
9-19 that regional water planning area have been resolved.
9-20 (8) Notice required by Subdivision (1), (3), or (6) of
9-21 this subsection must be:
9-22 (A) published once in a newspaper of general
9-23 circulation in each county located in whole or in part in the
9-24 regional water planning area before the 30th day preceding the date
9-25 of the public meeting or hearing; and
10-1 (B) mailed to:
10-2 (i) each mayor of a municipality with a
10-3 population of 1,000 or more that is located in whole or in part in
10-4 the regional water planning area;
10-5 (ii) each county judge of a county located
10-6 in whole or in part in the regional water planning area;
10-7 (iii) each special or general law district
10-8 or river authority with responsibility to manage or supply water in
10-9 the regional water planning area;
10-10 (iv) each retail public utility that:
10-11 (a) serves any part of the
10-12 regional water planning area; or
10-13 (b) receives water from the
10-14 regional water planning area; and
10-15 (v) each holder of record of a permit,
10-16 certified filing, or certificate of adjudication for the use of
10-17 surface water the diversion of which occurs in the regional water
10-18 planning area.
10-19 (9) Notice published or mailed under Subdivision (8)
10-20 of this subsection must contain:
10-21 (A) the date, time, and location of the public
10-22 meeting or hearing;
10-23 (B) a summary of the proposed action to be
10-24 taken;
10-25 (C) the name, telephone number, and address of
11-1 the person to whom questions or requests for additional information
11-2 may be submitted; and
11-3 (D) information on how the public may submit
11-4 comments.
11-5 (i) The regional water planning groups shall submit their
11-6 adopted regional water plans to the board by September 1, 2000, for
11-7 approval and inclusion in the state water plan. In conjunction
11-8 with the submission of regional water plans, each planning group
11-9 should make legislative recommendations, if any, to facilitate more
11-10 voluntary water transfers in the region. Subsequent regional water
11-11 plans shall be submitted at least every five years thereafter.
11-12 Public participation for revised regional plans shall follow the
11-13 procedures under Subsection (h) of this section.
11-14 (j) The board may provide financial assistance to political
11-15 subdivisions under Subchapters E and F of this chapter and
11-16 Subchapters C, D, E, F, and J, Chapter 15, and Subchapters D, I, K,
11-17 and L, Chapter 17, of this code for water supply projects only if:
11-18 (1) the board determines that the needs to be
11-19 addressed by the project will be addressed in a manner that is
11-20 consistent with the state water plan; and
11-21 (2) beginning September 1, 2001, the board:
11-22 (A) has approved a regional water plan as
11-23 provided by Subsection (i) of this section, and any required
11-24 updates of the plan, for the region of the state that includes the
11-25 area benefiting from the proposed project; and
12-1 (B) determines that the needs to be addressed by
12-2 the project will be addressed in a manner that is consistent with
12-3 that regional water plan.
12-4 (k) The board may waive the requirements of Subsection (j)
12-5 of this section if the board determines that conditions warrant the
12-6 waiver. [HEARING ON PRELIMINARY PLAN. (a) After the executive
12-7 administrator completes his preliminary planning of the water
12-8 resources development within a river basin, he shall hold a public
12-9 hearing, after notice, at some central location within the river
12-10 basin. If the proposed plan involves the transfer of water from
12-11 one basin to another, the hearing shall be held at some location
12-12 convenient to the areas affected.]
12-13 [(b) The executive administrator shall present the proposed
12-14 plan of development and hear evidence for and against the plan.]
12-15 [(c) After the hearing, the executive administrator shall
12-16 consider the effect the plan will have on the present and future
12-17 development, economy, general welfare, and water requirements of
12-18 the river basin or the areas affected.]
12-19 Sec. 16.054. LOCAL WATER PLANNING. (a) It is the policy of
12-20 the state that water resource management, water conservation, and
12-21 drought planning should occur on an ongoing basis. The board,
12-22 commission, and Parks and Wildlife Department shall make available
12-23 where appropriate technical and financial assistance for such
12-24 planning.
12-25 (b) Local plans may be submitted to the appropriate regional
13-1 water planning group for the area as follows:
13-2 (1) holders of existing permits, certified filings, or
13-3 certificates of adjudication for the appropriation of surface water
13-4 in the amount of 1,000 acre-feet a year or more may submit plans
13-5 required by Section 11.1271 of this code;
13-6 (2) retail and wholesale public water suppliers and
13-7 irrigation districts may submit plans required by Section 11.1272
13-8 of this code;
13-9 (3) groundwater districts may submit management plans
13-10 certified under Section 36.1072 of this code; and
13-11 (4) special districts may submit conservation or
13-12 management plans required by general or special law.
13-13 (c) The regional water planning group shall consider any
13-14 plan submitted under this section when preparing the regional water
13-15 plan under Section 16.053 of this code.
13-16 (d) When preparing individual water plans that address
13-17 drought or the development, management, or conservation of water
13-18 resources from the holders of existing permits, certified filings,
13-19 or certificates of adjudication, the water suppliers, groundwater
13-20 districts, special districts, irrigation districts, and other water
13-21 users should ensure that the plan is not in conflict with the
13-22 applicable approved regional water plan for their region. [HEARING
13-23 ON COMPLETED STATE WATER PLAN. When the executive administrator
13-24 has prepared and examined the completed preliminary plan, the board
13-25 shall hold a public hearing on the plan to determine whether or not
14-1 it gives adequate consideration to the protection of existing water
14-2 rights in this state and whether or not it takes into account modes
14-3 and procedures for the equitable adjustment of water rights
14-4 affected by the plan. After the hearing, the board may formally
14-5 adopt the state water plan. A majority vote is necessary for
14-6 adoption.]
14-7 Sec. 16.055. DROUGHT RESPONSE PLAN. (a) The division of
14-8 emergency management of the office of the governor shall be
14-9 responsible for coordinating the drought response component of the
14-10 state water plan.
14-11 (b) The drought response and monitoring committee is created
14-12 and shall meet as necessary to carry out the provisions of this
14-13 section. The committee is composed of one representative from each
14-14 of the following entities, appointed by the administrative head of
14-15 that entity:
14-16 (1) the division of emergency management of the office
14-17 of the governor;
14-18 (2) the board;
14-19 (3) the commission;
14-20 (4) the Parks and Wildlife Department;
14-21 (5) the Department of Agriculture;
14-22 (6) the Texas Agricultural Extension Service; and
14-23 (7) the State Soil and Water Conservation Board.
14-24 (c) The governor may designate any other person or a
14-25 representative of any other entity to serve on the committee.
15-1 (d) The representative of the division of emergency
15-2 management shall serve as chair of the committee.
15-3 (e) The committee shall be responsible for:
15-4 (1) the assessment and public reporting of drought
15-5 monitoring and water supply conditions;
15-6 (2) advising the governor on significant drought
15-7 conditions;
15-8 (3) recommending specific provisions for a defined
15-9 state response to drought-related disasters for inclusion in the
15-10 state emergency management plan and the state water plan;
15-11 (4) advising the regional water planning groups on
15-12 drought-related issues in the regional water plans; and
15-13 (5) ensuring effective coordination among state,
15-14 local, and federal agencies in drought-response planning.
15-15 (f) In performing its duties under this section, the drought
15-16 response and monitoring committee shall consider the following
15-17 factors when determining whether a drought exists for the purposes
15-18 of this section:
15-19 (1) meteorological conditions and forecasts;
15-20 (2) hydrological conditions and forecasts;
15-21 (3) water use and demand forecasts;
15-22 (4) water supply conditions and forecasts;
15-23 (5) the potential impacts of the water shortage
15-24 on: the public health, safety, and welfare; economic development;
15-25 and agricultural and natural resources; and
16-1 (6) other factors deemed appropriate by the committee.
16-2 [EFFECT OF PLAN. (a) The state water plan, as formally adopted by
16-3 the board, shall be a flexible guide to state policy for the
16-4 development of water resources in this state.]
16-5 [(b) The commission shall take the plan into consideration
16-6 in matters coming before it but is not bound by the plan.]
16-7 [(c) Nothing in the state water plan or any amendment or
16-8 modification of the plan affects any vested right existing before
16-9 August 30, 1965.]
16-10 Sec. 16.056. [AMENDMENT OF PLAN. (a) The board shall
16-11 review the plan biennially to consider any amendment or
16-12 modification that may be needed because of changed conditions.]
16-13 [(b) The board shall amend or modify the plan as experience
16-14 and changed conditions require after holding a public hearing on
16-15 any amendment or modification in the manner and for the purposes
16-16 provided by Section 16.054 of this code.]
16-17 [(c) Any amendment or modification adopted by the board
16-18 becomes a part of the plan.]
16-19 [Sec. 16.057.] FEDERAL ASSISTANCE IN FINANCING REGIONAL
16-20 WATER PLANS [PLAN]. The executive administrator may take all
16-21 necessary action to qualify for federal assistance in financing the
16-22 development and improvement of the regional water plans [plan].
16-23 SECTION 1.03. Subchapter D, Chapter 11, Water Code, is
16-24 amended by amending Sections 11.122 and 11.1271 and adding Section
16-25 11.1272 to read as follows:
17-1 Sec. 11.122. Amendments to Water Rights Required. (a) All
17-2 holders of permits, certified filings, and certificates of
17-3 adjudication issued under Section 11.323 of this code shall obtain
17-4 from the commission authority to change the place of use, purpose
17-5 of use, point of diversion, rate of diversion, acreage to be
17-6 irrigated, or otherwise alter a water right.
17-7 (b) Subject to meeting all other applicable requirements of
17-8 this chapter for the approval of an application, an amendment,
17-9 except an amendment to a water right that increases the amount of
17-10 water authorized to be diverted or the authorized rate of
17-11 diversion, shall be authorized if the requested change will not
17-12 cause adverse impact on other water right holders or the
17-13 environment on the stream of greater magnitude than under
17-14 circumstances in which the permit, certified filing, or certificate
17-15 of adjudication that is sought to be amended was fully exercised
17-16 according to its terms and conditions as they existed before the
17-17 requested amendment.
17-18 (c) The commission shall adopt rules to effectuate the
17-19 provisions of this section.
17-20 Sec. 11.1271. ADDITIONAL REQUIREMENTS: WATER CONSERVATION
17-21 PLANS. (a) The commission shall [may] require from an applicant
17-22 for a new or amended water right the formulation and submission of
17-23 a water conservation plan and the adoption of reasonable water
17-24 conservation measures, as defined by Subdivision (8)(B), Section
17-25 11.002, of this code.
18-1 (b) The commission shall require the holder of an existing
18-2 permit, certified filing, or certificate of adjudication for the
18-3 appropriation of surface water in the amount of 1,000 acre-feet a
18-4 year or more for municipal, industrial, and other uses, and 10,000
18-5 acre-feet a year or more for irrigation uses, to develop, submit,
18-6 and implement a water conservation plan, consistent with the
18-7 appropriate approved regional water plan, that adopts reasonable
18-8 water conservation measures as defined by Subdivision (8)(B),
18-9 Section 11.002, of this code. The requirement for a water
18-10 conservation plan under this section shall not result in the need
18-11 for an amendment to an existing permit, certified filing, or
18-12 certificate of adjudication.
18-13 (c) The commission shall adopt rules establishing criteria
18-14 and deadlines for submission of water conservation plans.
18-15 Sec. 11.1272. ADDITIONAL REQUIREMENT: DROUGHT CONTINGENCY
18-16 PLANS FOR CERTAIN APPLICANTS AND WATER RIGHT HOLDERS. (a) The
18-17 commission shall by rule require wholesale and retail public water
18-18 suppliers and irrigation districts to develop drought contingency
18-19 plans consistent with the appropriate approved regional water plan
18-20 to be implemented during periods of water shortages and drought.
18-21 (b) The wholesale and retail public water suppliers and
18-22 irrigation districts shall provide an opportunity for public input
18-23 during preparation of their drought contingency plans and before
18-24 submission of the plans to the commission.
18-25 SECTION 1.04. Section 15.401, Water Code, is amended to read
19-1 as follows:
19-2 Sec. 15.401. PROGRAM CREATION. The research and planning
19-3 program is created to provide money for research into and planning
19-4 of the proper conservation, management, and development of the
19-5 state's water resources, for regional planning by political
19-6 subdivisions, for facility engineering in economically distressed
19-7 areas, and for flood control planning by political subdivisions.
19-8 The program may also provide money for research and planning by
19-9 Texas political subdivisions related to the proper conservation,
19-10 management, and development of water resources of areas outside
19-11 Texas if such research or planning will result in water being
19-12 available for use in or for the benefit of Texas or will maintain
19-13 and enhance the quality of water in Texas.
19-14 SECTION 1.05. Subsection (a), Section 15.404, Water Code, is
19-15 amended to read as follows:
19-16 (a) The board may enter into a contract with any person for
19-17 research into any matter relating to the conservation and
19-18 development of the state's water resources or for research by Texas
19-19 political subdivisions related to the proper conservation and
19-20 development of water resources of areas outside Texas if such
19-21 research will result in water being available for use in or for the
19-22 benefit of Texas or will help maintain and enhance the quality of
19-23 water in Texas.
19-24 SECTION 1.06. Subsection (f), Section 15.406, Water Code, is
19-25 amended to read as follows:
20-1 (f) The board shall adopt rules establishing criteria of
20-2 eligibility for regional facility planning money that considers:
20-3 (1) the relative need of the political subdivision for
20-4 the money;
20-5 (2) the legal authority of the political subdivision
20-6 to plan, develop, and operate regional facilities; [and]
20-7 (3) the effect of regional facility planning by the
20-8 political subdivision on overall regional facility planning,
20-9 development, and operation in the state and within the area in
20-10 which the political subdivision is located; and
20-11 (4) the degree to which the regional facility planning
20-12 by the political subdivision is consistent with an approved
20-13 regional water plan for the area in which the political subdivision
20-14 is located.
20-15 SECTION 1.07. Subchapter F, Chapter 15, Water Code, is
20-16 amended by adding Section 15.4061 to read as follows:
20-17 Sec. 15.4061. FUNDING FOR REGIONAL WATER PLANS. (a) The
20-18 board may enter into contracts with political subdivisions
20-19 designated as representatives of a regional water planning group
20-20 under Section 16.053(c) of this code to pay from the research and
20-21 planning fund all or part of the cost of developing or revising
20-22 regional water plans as defined in Section 16.053 of this code.
20-23 (b) A political subdivision may submit, either individually
20-24 or jointly with other political subdivisions, a written application
20-25 to the board for the purpose of funding regional water planning
21-1 from the research and planning fund.
21-2 (c) The application shall be in the manner and form required
21-3 by board rules and include:
21-4 (1) the name of the political subdivision or political
21-5 subdivisions;
21-6 (2) a citation to the laws under which the political
21-7 subdivision was created and is operating, including specific
21-8 citation of all laws providing authority to develop and implement a
21-9 regional water plan;
21-10 (3) the amount requested from the board for regional
21-11 water planning; and
21-12 (4) any other relevant information required by the
21-13 board in its rules or specifically requested by the board.
21-14 (d) After notice and hearing, the board may award the
21-15 applicant all or part of the requested funds that the board
21-16 considers necessary for the political subdivision to carry out
21-17 regional water planning.
21-18 (e) If the board grants an application under this section
21-19 and awards funds for regional water planning, the board shall enter
21-20 into a contract with the political subdivision or political
21-21 subdivisions that includes:
21-22 (1) a detailed statement of the purpose for which the
21-23 money is to be used;
21-24 (2) the total amount of money to be paid by the board
21-25 from the research and planning fund under the contract; and
22-1 (3) any other terms and conditions required by the
22-2 board's rules or agreed to by the contracting parties.
22-3 (f) The board shall adopt rules establishing criteria for
22-4 eligibility for regional water planning money that include:
22-5 (1) the relative need of the political subdivision for
22-6 the money;
22-7 (2) the legal authority of the political subdivision
22-8 to develop and implement a regional water plan; and
22-9 (3) the degree to which regional water planning by the
22-10 political subdivision or political subdivisions will address the
22-11 water supply needs in the regional water planning area.
22-12 (g) The board may not provide funds under this section for
22-13 activities for which existing information or data is sufficient for
22-14 the planning effort, including:
22-15 (1) detailed evaluation of cost of water supply
22-16 alternatives where recent information is available to evaluate the
22-17 cost associated with the alternative;
22-18 (2) evaluation of groundwater resources for which
22-19 current information is available from the board or other entity
22-20 sufficient for evaluation of the resource;
22-21 (3) determination of water savings resulting from
22-22 standard conservation practices for which current information is
22-23 available from the board;
22-24 (4) revision of board demand and population
22-25 projections;
23-1 (5) revision of environmental planning criteria for
23-2 new surface water supply projects as defined in the state water
23-3 plan guidelines established in Section 16.051(d) of this section;
23-4 and
23-5 (6) collection of data describing groundwater or
23-6 surface water resources where information for evaluation of the
23-7 resource is currently available.
23-8 (h) The board shall require that regional water plans
23-9 developed or revised under contracts entered into under this
23-10 section be made available to the commission and the Parks and
23-11 Wildlife Department.
23-12 SECTION 1.08. (a) Except as provided by Subsection (b) of
23-13 this section, the state water plan in effect on the effective date
23-14 of this Act remains in effect until a new state water plan is
23-15 adopted under Subsection (a), Section 16.051, Water Code, as
23-16 amended by Section 1.01 of this Act.
23-17 (b) The state water plan shall include ongoing water
23-18 development projects that have been issued a permit by the Texas
23-19 Natural Resource Conservation Commission or a predecessor agency
23-20 for a regional water supply planning study.
23-21 ARTICLE 2. WATER MANAGEMENT, MARKETING, AND TRANSFERS
23-22 SECTION 2.01. Section 791.026, Government Code, is amended
23-23 to read as follows:
23-24 Sec. 791.026. CONTRACTS FOR WATER SUPPLY AND WASTEWATER
23-25 TREATMENT FACILITIES. (a) A municipality, district, or river
24-1 authority of this state may contract with another municipality,
24-2 district, or river authority of this state to obtain or provide
24-3 part or all of:
24-4 (1) water supply or wastewater treatment facilities;
24-5 or
24-6 (2) a lease or operation of water supply facilities or
24-7 wastewater treatment facilities.
24-8 (b) The contract may provide that the municipality,
24-9 district, or river authority obtaining one of the services may not
24-10 obtain those services from a source other than a contracting party,
24-11 except as provided by the contract.
24-12 (c) If a contract includes a term described by Subsection
24-13 (b), payments made under the contract are the paying party's
24-14 operating expenses for its water supply system, wastewater
24-15 treatment facilities, or both.
24-16 (d) The contract may:
24-17 (1) contain terms and extend for any period on which
24-18 the parties agree; [and]
24-19 (2) require the purchaser to develop alternative or
24-20 replacement supplies prior to the expiration date of the contract
24-21 and may provide for enforcement of such terms by court order; and
24-22 (3) provide that it will continue in effect until
24-23 bonds specified by the contract and any refunding bonds issued to
24-24 pay those bonds are paid.
24-25 (e) Where a contract sets forth explicit expiration
25-1 provisions, no continuation of the service obligation will be
25-2 implied.
25-3 (f) Tax revenue may not be pledged to the payment of amounts
25-4 agreed to be paid under the contract.
25-5 (g) [(f)] The powers granted by this section prevail over a
25-6 limitation contained in another law.
25-7 SECTION 2.02. Section 11.002, Water Code, is amended by
25-8 amending Subdivision (4) and adding Subdivisions (9) and (10) to
25-9 read as follows:
25-10 (4) "Beneficial use" means use of the amount of water
25-11 which is economically necessary for a purpose authorized by this
25-12 chapter, when reasonable intelligence and reasonable diligence are
25-13 used in applying the water to that purpose and shall include
25-14 conserved water.
25-15 (9) "Conserved water" means that amount of water saved
25-16 by a holder of an existing permit, certified filing, or certificate
25-17 of adjudication through practices, techniques, and technologies
25-18 that would otherwise be irretrievably lost to all consumptive
25-19 beneficial uses arising from storage, transportation, distribution,
25-20 or application.
25-21 (10) "Surplus water" means water in excess of the
25-22 initial or continued beneficial use of the appropriator.
25-23 SECTION 2.03. Subsection (e), Section 11.023, Water Code, is
25-24 amended to read as follows:
25-25 (e) The amount of water appropriated for each purpose
26-1 mentioned in this section shall be specifically appropriated for
26-2 that purpose, subject to the preferences prescribed in Section
26-3 11.024 of this code. The commission may authorize appropriation of
26-4 a single amount or volume of water for more than one purpose of
26-5 use. In the event that a single amount or volume of water is
26-6 appropriated for more than one purpose of use, the total amount of
26-7 water actually diverted for all of the authorized purposes may not
26-8 exceed the total amount of water appropriated.
26-9 SECTION 2.04. Subchapter B, Chapter 11, Water Code, is
26-10 amended by adding Section 11.0275 to read as follows:
26-11 Sec. 11.0275. FAIR MARKET VALUE. Whenever the law requires
26-12 the payment of fair market value for a water right, fair market
26-13 value shall be determined by the amount of money that a willing
26-14 buyer would pay a willing seller, neither of which is under any
26-15 compulsion to buy or sell, for the water in an arms-length
26-16 transaction and shall not be limited to the amount of money that
26-17 the owner of the water right has paid or is paying for the water.
26-18 SECTION 2.05. Section 11.036, Water Code, is amended to read
26-19 as follows:
26-20 Sec. 11.036. CONSERVED OR STORED WATER: SUPPLY CONTRACT.
26-21 (a) A person, association of persons, corporation, or water
26-22 improvement or irrigation district having in possession and control
26-23 any storm water, floodwater, or rainwater that is conserved or
26-24 stored as authorized by this chapter may contract to supply the
26-25 water to any person, association of persons, corporation, or water
27-1 improvement or irrigation district having the right to acquire use
27-2 of the water.
27-3 (b) The price and terms of the contract shall be just and
27-4 reasonable and without discrimination, and the contract is subject
27-5 to the same revision and control as provided in this code for other
27-6 water rates and charges. If the contract sets forth explicit
27-7 expiration provisions, no continuation of the service obligation
27-8 will be implied.
27-9 (c) The terms of a contract may expressly provide that the
27-10 person using the stored or conserved water is required to develop
27-11 alternative or replacement supplies prior to the expiration of the
27-12 contract and may further provide for enforcement of such terms by
27-13 court order.
27-14 (d) If any person uses the stored or conserved water without
27-15 first entering into a contract with the party that conserved or
27-16 stored it, the user shall pay for the use at a rate determined by
27-17 the commission to be just and reasonable, subject to court review
27-18 as in other cases.
27-19 SECTION 2.06. Section 11.042, Water Code, is amended to read
27-20 as follows:
27-21 Sec. 11.042. DELIVERING WATER DOWN BANKS AND BEDS.
27-22 (a) Under rules prescribed by the commission, a person,
27-23 association of persons, corporation, [or] water control and
27-24 improvement district, water improvement district, or irrigation
27-25 district supplying stored or conserved water under contract as
28-1 provided in this chapter may use the bank and bed of any flowing
28-2 natural stream in the state to convey the water from the place of
28-3 storage to the place of use or to the diversion point [plant] of
28-4 the appropriator. [The commission shall prescribe rules for this
28-5 purpose.]
28-6 (b) A person who wishes to discharge and then subsequently
28-7 divert and reuse the person's existing return flows derived from
28-8 privately owned groundwater must obtain prior authorization from
28-9 the commission for the diversion and the reuse of these return
28-10 flows. The authorization may allow for the diversion and reuse by
28-11 the discharger of existing return flows, less carriage losses, and
28-12 shall be subject to special conditions if necessary to protect an
28-13 existing water right that was granted based on the use or
28-14 availability of these return flows. Special conditions may also be
28-15 provided to help maintain instream uses and freshwater inflows to
28-16 bays and estuaries. A person wishing to divert and reuse future
28-17 increases of return flows derived from privately owned groundwater
28-18 must obtain authorization to reuse increases in return flows before
28-19 the increase.
28-20 (c) Except as otherwise provided in Subsection (a) of this
28-21 section, a person who wishes to convey and subsequently divert
28-22 water in a watercourse or stream must obtain the prior approval of
28-23 the commission through a bed and banks authorization. The
28-24 authorization shall allow to be diverted only the amount of water
28-25 put into a watercourse or stream, less carriage losses and subject
29-1 to any special conditions that may address the impact of the
29-2 discharge, conveyance, and diversion on existing permits, certified
29-3 filings, or certificates of adjudication, instream uses, and
29-4 freshwater inflows to bays and estuaries. Water discharged into a
29-5 watercourse or stream under this chapter shall not cause a
29-6 degradation of water quality to the extent that the stream
29-7 segment's classification would be lowered. Authorizations under
29-8 this section and water quality authorizations may be approved in a
29-9 consolidated permit proceeding.
29-10 (d) Nothing in this section shall be construed to affect an
29-11 existing project for which water rights and reuse authorizations
29-12 have been granted by the commission before September 1, 1997.
29-13 SECTION 2.07. Section 11.046, Water Code, is amended to read
29-14 as follows:
29-15 Sec. 11.046. RETURN SURPLUS [UNUSED] WATER. (a) A person
29-16 who takes or diverts water from a watercourse or [running] stream
29-17 for the purposes authorized by this code shall conduct surplus
29-18 water back to the watercourse or stream from which it was taken if
29-19 the water can be returned by gravity flow and it is reasonably
29-20 practicable to do so.
29-21 (b) In granting an application for a water right, the
29-22 commission may include conditions in the water right providing for
29-23 the return of surplus water, in a specific amount or percentage of
29-24 water diverted, and the return point on a watercourse or stream as
29-25 necessary to protect senior downstream permits, certified filings,
30-1 or certificates of adjudication or to provide flows for instream
30-2 uses or bays and estuaries.
30-3 (c) Except as specifically provided otherwise in the water
30-4 right, water appropriated under a permit, certified filing, or
30-5 certificate of adjudication may, prior to its release into a
30-6 watercourse or stream, be beneficially used and reused by the
30-7 holder of a permit, certified filing, or certificate of
30-8 adjudication for the purposes and locations of use provided in the
30-9 permit, certified filing, or certificate of adjudication. Once
30-10 water has been diverted under a permit, certified filing, or
30-11 certificate of adjudication and then returned to a watercourse or
30-12 stream, however, it is considered surplus water and therefore
30-13 subject to reservation for instream uses or beneficial inflows or
30-14 to appropriation by others unless expressly provided otherwise in
30-15 the permit, certified filing, or certificate of adjudication.
30-16 (d) Water appropriated under a permit, certified filing, or
30-17 certificate of adjudication which is recirculated within a
30-18 reservoir for cooling purposes shall not be considered to be
30-19 surplus for purposes of this chapter.
30-20 SECTION 2.08. Section 11.085, Water Code, is amended to read
30-21 as follows:
30-22 Sec. 11.085. INTERBASIN [INTERWATERSHED] TRANSFERS. (a) No
30-23 person may take or divert any state [of the] water from a river
30-24 basin [of the ordinary flow, underflow, or storm flow of any
30-25 stream, watercourse, or watershed] in this state and transfer such
31-1 water to [into] any other river basin [natural stream, watercourse,
31-2 or watershed to the prejudice of any person or property situated
31-3 within the watershed from which the water is proposed to be taken
31-4 or diverted.]
31-5 [(b) No person may transfer water from one watershed to
31-6 another] without first applying for and receiving a water right or
31-7 an amendment to a permit, certified filing, or certificate of
31-8 adjudication [permit] from the commission authorizing the transfer
31-9 [to do so. Before issuing such a permit, the commission shall hold
31-10 a hearing to determine the rights that might be affected by the
31-11 transfer. The commission shall give notice and hold the hearing in
31-12 the manner prescribed by its procedural rules].
31-13 (b) The application must include:
31-14 (1) the contract price of the water to be transferred;
31-15 (2) a statement of each general category of proposed
31-16 use of the water to be transferred and a detailed description of
31-17 the proposed uses and users under each category;
31-18 (3) the cost of diverting, conveying, distributing,
31-19 and supplying the water to, and treating the water for, the
31-20 proposed users; and
31-21 (4) the projected effect on user rates and fees for
31-22 each class of ratepayers.
31-23 (c) The applicant shall provide the information described by
31-24 Subsection (b) of this section to any person on request and without
31-25 cost.
32-1 (d) Prior to taking action on an application for an
32-2 interbasin transfer, the commission shall conduct at least one
32-3 public meeting to receive comments in both the basin of origin of
32-4 the water proposed for transfer and the basin receiving water from
32-5 the proposed transfer. Notice shall be provided pursuant to
32-6 Subsection (g) of this section. Any person may present relevant
32-7 information and data at the meeting on the criteria which the
32-8 commission is to consider related to the interbasin transfer.
32-9 (e) In addition to the public meetings required by
32-10 Subsection (d) of this section, if the application is contested in
32-11 a manner requiring an evidentiary hearing under the rules of the
32-12 commission, the commission shall give notice and hold an
32-13 evidentiary hearing, in accordance with commission rules and
32-14 applicable state law.
32-15 (f) Notice of an application for an interbasin transfer
32-16 shall be mailed to the following:
32-17 (1) all holders of permits, certified filings, or
32-18 certificates of adjudication located in whole or in part in the
32-19 basin of origin;
32-20 (2) each county judge of a county located in whole or
32-21 in part in the basin of origin;
32-22 (3) each mayor of a city with a population of 1,000 or
32-23 more located in whole or in part in the basin of origin; and
32-24 (4) all groundwater conservation districts located in
32-25 whole or in part in the basin of origin; and
33-1 (5) each state legislator in both basins.
33-2 (g) The applicant shall cause the notice of application for
33-3 an interbasin transfer to be published once a week for two
33-4 consecutive weeks in one or more newspapers having general
33-5 circulation in each county located in whole or in part in the basin
33-6 of origin or the receiving basin. The published notice may not be
33-7 smaller than 96.8 square centimeters or 15 square inches with the
33-8 shortest dimension at least 7.6 centimeters or three inches. The
33-9 notice of application and public meetings shall be combined in the
33-10 mailed and published notices.
33-11 (h) The notice of application must state how a person may
33-12 obtain the information described by Subsection (b) of this section.
33-13 (i) The applicant shall pay the cost of notice required to
33-14 be provided under this section. The commission by rule may
33-15 establish procedures for payment of those costs.
33-16 (j) In addition to other requirements of this code relating
33-17 to the review of and action on an application for a new water right
33-18 or amended permit, certified filing, or certificate of
33-19 adjudication, the commission shall:
33-20 (1) request review and comment on an application for
33-21 an interbasin transfer from each county judge of a county located
33-22 in whole or in part in the basin of origin. A county judge should
33-23 make comment only after seeking advice from the county
33-24 commissioners court; and
33-25 (2) give consideration to the comments of each county
34-1 judge of a county located in whole or in part in the basin of
34-2 origin prior to taking action on an application for an interbasin
34-3 transfer.
34-4 (k) In addition to other requirements of this code relating
34-5 to the review of and action on an application for a new water right
34-6 or amended permit, certified filing, or certificate of
34-7 adjudication, the commission shall weigh the effects of the
34-8 proposed transfer by considering:
34-9 (1) the need for the water in the basin of origin and
34-10 in the proposed receiving basin based on the period for which the
34-11 water supply is requested, but not to exceed 50 years;
34-12 (2) factors identified in the applicable approved
34-13 regional water plans which address the following:
34-14 (A) the availability of feasible and practicable
34-15 alternative supplies in the receiving basin to the water proposed
34-16 for transfer;
34-17 (B) the amount and purposes of use in the
34-18 receiving basin for which water is needed;
34-19 (C) proposed methods and efforts by the
34-20 receiving basin to avoid waste and implement water conservation and
34-21 drought contingency measures;
34-22 (D) proposed methods and efforts by the
34-23 receiving basin to put the water proposed for transfer to
34-24 beneficial use;
34-25 (E) the projected economic impact that is
35-1 reasonably expected to occur in each basin as a result of the
35-2 transfer; and
35-3 (F) the projected impacts of the proposed
35-4 transfer that are reasonably expected to occur on existing water
35-5 rights, instream uses, water quality, aquatic and riparian habitat,
35-6 and bays and estuaries that must be assessed under Sections 11.147,
35-7 11.150, and 11.152 of this code in each basin. If the water sought
35-8 to be transferred is currently authorized to be used under an
35-9 existing permit, certified filing, or certificate of adjudication,
35-10 such impacts shall only be considered in relation to that portion
35-11 of the permit, certified filing, or certificate of adjudication
35-12 proposed for transfer and shall be based on historical uses of the
35-13 permit, certified filing, or certificate of adjudication for which
35-14 amendment is sought;
35-15 (3) proposed mitigation or compensation, if any, to
35-16 the basin of origin by the applicant;
35-17 (4) the continued need to use the water for the
35-18 purposes authorized under the existing permit, certified filing, or
35-19 certificate of adjudication, if an amendment to an existing water
35-20 right is sought; and
35-21 (5) the information required to be submitted by the
35-22 applicant.
35-23 (l) The commission may grant, in whole or in part, an
35-24 application for an interbasin transfer only to the extent that:
35-25 (1) the detriments to the basin of origin during the
36-1 proposed transfer period are less than the benefits to the
36-2 receiving basin during the proposed transfer period; and
36-3 (2) the applicant for the interbasin transfer has
36-4 prepared a drought contingency plan and has developed and
36-5 implemented a water conservation plan that will result in the
36-6 highest practicable levels of water conservation and efficiency
36-7 achievable within the jurisdiction of the applicant.
36-8 (m) The commission may grant new or amended water rights
36-9 under this section with or without specific terms or periods of use
36-10 and with specific conditions under which a transfer of water may
36-11 occur.
36-12 (n) If the transfer of water is based on a contractual sale
36-13 of water, the new water right or amended permit, certified filing,
36-14 or certificate of adjudication authorizing the transfer shall
36-15 contain a condition for a term or period not greater than the
36-16 contract term.
36-17 (o) The parties to a contract for an interbasin transfer may
36-18 include provisions for compensation and mitigation. If the party
36-19 from the basin of origin is a government entity, each county judge
36-20 of a county located in whole or in part in the basin of origin may
36-21 provide input on the appropriate compensation and mitigation for
36-22 the interbasin transfer.
36-23 (p) For the purposes of this section, a basin is designated
36-24 as provided in accordance with Section 16.051 of this code. A
36-25 basin may not be redesignated in order to allow a transfer or
37-1 diversion of water otherwise in violation of this section.
37-2 (q) [(c)] A person who takes or diverts water in violation
37-3 of this section is guilty of a misdemeanor and upon conviction is
37-4 punishable by a fine of not [less than $100 nor] more than $1,000
37-5 [$500] or by confinement in the county jail for not more than six
37-6 months.
37-7 (r) [(d)] A person commits a separate offense each day he
37-8 continues to take or divert water in violation of this section.
37-9 (s) Any proposed transfer of all or a portion of a water
37-10 right under this section is junior in priority to water rights
37-11 granted before the time application for transfer is accepted for
37-12 filing.
37-13 (t) Any proposed transfer of all or a portion of a water
37-14 right under this section from a river basin in which two or more
37-15 river authorities or water districts created under Section 59,
37-16 Article XVI, Texas Constitution, have written agreements or permits
37-17 that provide for the coordinated operation of their respective
37-18 reservoirs to maximize the amount of water for beneficial use
37-19 within their respective water services areas shall be junior in
37-20 priority to water rights granted before the time application for
37-21 transfer is accepted for filing.
37-22 (u) An appropriator of water for municipal purposes in the
37-23 basin of origin may, at the appropriator's option, be a party in
37-24 any hearings under this section.
37-25 (v) The provisions of this section, except Subsection (a),
38-1 do not apply to:
38-2 (1) a proposed transfer which in combination with any
38-3 existing transfers totals less than 3,000 acre-feet of water per
38-4 annum from the same permit, certified filing, or certificate of
38-5 adjudication;
38-6 (2) a request for an emergency transfer of water;
38-7 (3) a proposed transfer from a basin to its adjoining
38-8 coastal basin; or
38-9 (4) a proposed transfer from a basin to a county or
38-10 municipality or the municipality's retail service area that is
38-11 partially within the basin for use in that part of the county or
38-12 municipality and the municipality's retail service area not within
38-13 the basin.
38-14 SECTION 2.09. Subsection (a), Section 11.124, Water Code, is
38-15 amended to read as follows:
38-16 (a) An application to appropriate unappropriated state water
38-17 must:
38-18 (1) be in writing and sworn to;
38-19 (2) contain the name and post-office address of the
38-20 applicant;
38-21 (3) identify the source of water supply;
38-22 (4) state the nature and purposes of the proposed use
38-23 or uses and the amount of water to be used for each purpose;
38-24 (5) state the location and describe the proposed
38-25 facilities;
39-1 (6) state the time within which the proposed
39-2 construction is to begin; [and]
39-3 (7) state the time required for the application of
39-4 water to the proposed use or uses; and
39-5 (8) contain the name and address of the holder of any
39-6 lien on:
39-7 (A) any water right permit, certified filing, or
39-8 certificate of adjudication to be granted under the permit for
39-9 which application is made; or
39-10 (B) any land to which that water right permit,
39-11 certified filing, or certificate of adjudication would be
39-12 appurtenant.
39-13 SECTION 2.10. Subsection (b), Section 11.135, Water Code, is
39-14 amended to read as follows:
39-15 (b) The permit shall be in writing and attested by the seal
39-16 of the commission, and it shall contain substantially the following
39-17 information:
39-18 (1) the name of the person to whom the permit is
39-19 issued;
39-20 (2) the date the permit is issued;
39-21 (3) the date the original application was filed;
39-22 (4) the use or purpose for which the appropriation is
39-23 to be made;
39-24 (5) the amount or volume of water authorized to be
39-25 appropriated for each purpose; if use of the appropriated water is
40-1 authorized for multiple purposes, the permit shall contain a
40-2 special condition limiting the total amount of water that may
40-3 actually be diverted for all of the purposes to the amount of water
40-4 appropriated;
40-5 (6) a general description of the source of supply from
40-6 which the appropriation is proposed to be made;
40-7 (7) the time within which construction or work must
40-8 begin and the time within which it must be completed; and
40-9 (8) any other information the commission prescribes.
40-10 SECTION 2.11. Subsection (a), Section 11.142, Water Code, is
40-11 amended to read as follows:
40-12 (a) Without obtaining a permit, a person may construct on
40-13 his own property a dam or reservoir with normal storage of [to
40-14 impound or contain] not more than 200 acre-feet of water for
40-15 domestic and livestock purposes.
40-16 SECTION 2.12. Sections 11.176 and 11.177, Water Code, are
40-17 amended to read as follows:
40-18 Sec. 11.176. HEARING. (a) Except as provided by Subsection
40-19 (b) of this section, the [The] commission shall hold a hearing and
40-20 shall give the holder of the permit, certified filing, or
40-21 certificate of adjudication and other interested persons an
40-22 opportunity to be heard and to present evidence on any matter
40-23 pertinent to the questions at issue.
40-24 (b) A hearing on the cancellation of a permit, certified
40-25 filing, or certificate of adjudication as provided by this chapter
41-1 is unnecessary if the right to such hearing is expressly waived by
41-2 the affected holder of a permit, certified filing, or certificate
41-3 of adjudication.
41-4 (c) A permit, certified filing, or certificate of
41-5 adjudication for a term does not vest in the holder of a permit,
41-6 certified filing, or certificate of adjudication any right to the
41-7 diversion, impoundment, or use of water for longer than the term of
41-8 the permit, certified filing, or certificate of adjudication and
41-9 shall expire and be cancelled in accordance with its terms without
41-10 further need for notice or hearing.
41-11 Sec. 11.177. COMMISSION FINDING; ACTION. (a) At the
41-12 conclusion of the hearing, the commission shall cancel the permit,
41-13 certified filing, or certificate of adjudication in whole or in
41-14 part to the extent that it finds that:
41-15 (1) the water or any portion of the water appropriated
41-16 under the permit, certified filing, or certificate of adjudication
41-17 has not been put to an authorized beneficial use during the 10-year
41-18 period; and
41-19 (2) the holder has not used reasonable diligence in
41-20 applying the water or the unused portion of the water to an
41-21 authorized beneficial use or is otherwise unjustified in the
41-22 nonuse[; and]
41-23 [(3) the holder has not been justified in the nonuse
41-24 or does not then have a bona fide intention of putting the water or
41-25 the unused portion of the water to an authorized beneficial use
42-1 within a reasonable time after the hearing].
42-2 (b) In determining what constitutes reasonable diligence or
42-3 a justified nonuse [and a reasonable time] as used in Subsection
42-4 (a)(2) [(a)(3)] of this section, the commission shall give
42-5 consideration to:
42-6 (1) whether sufficient water is available in the
42-7 source of supply to meet all or part of the appropriation during
42-8 the 10-year period of nonuse;
42-9 (2) whether the nonuse is justified by the holder's
42-10 participation in the federal Conservation Reserve Program or a
42-11 similar governmental program as provided by Section 11.173(b)(1) of
42-12 this code;
42-13 (3) whether the permit, certified filing, or
42-14 certificate of adjudication was obtained to meet demonstrated
42-15 long-term public water supply or electric generation needs as
42-16 evidenced by a water management plan developed by the holder and
42-17 consistent with projections of future water needs contained in the
42-18 state water plan;
42-19 (4) whether the permit, certified filing, or
42-20 certificate of adjudication was obtained as the result of the
42-21 construction of a reservoir funded, in whole or in part, by the
42-22 holder of the permit, certified filing, or certificate of
42-23 adjudication as part of the holder's long-term water planning;
42-24 (5) whether the existing or proposed authorized
42-25 purpose and place of use are consistent with an approved regional
43-1 water plan as provided by Section 16.053 of this code;
43-2 (6) whether the permit, certified filing, or
43-3 certificate of adjudication has been deposited into the Texas Water
43-4 Bank as provided by Sections 15.7031 and 15.704 of this code or
43-5 whether it can be shown that the water right or water available
43-6 under the right is currently being made available for purchase
43-7 through private marketing efforts; or
43-8 (7) whether the permit, certified filing, or
43-9 certificate of adjudication has been reserved to provide for
43-10 instream flows or bay and estuary inflows [the expenditures made or
43-11 obligations incurred by the holder in connection with the permit,
43-12 certified filing, or certificate of adjudication;]
43-13 [(2) the purpose to which the water is to be applied;]
43-14 [(3) the priority of the purpose;]
43-15 [(4) the amount of time usually necessary to put water
43-16 to a beneficial use for the same purpose when diligently developed;
43-17 and]
43-18 [(5) whether at all times during the 10-year period
43-19 there was rainfall adequate to enable the use of all or part of the
43-20 water authorized to be appropriated under the permit, certified
43-21 filing, or certificate of adjudication].
43-22 SECTION 2.13. Section 15.701, Water Code, is amended to read
43-23 as follows:
43-24 Sec. 15.701. Definitions. In this subchapter:
43-25 (1) "Deposit" means the placement of a water right or
44-1 the right to use water in the water bank for transfer.
44-2 (2) "Depositor" means a person who deposits or has on
44-3 deposit a water right in the water bank.
44-4 (3) "Person" includes but is not limited to any
44-5 individual, corporation, organization, government, or governmental
44-6 subdivision or agency, including the board, business trust, estate,
44-7 trust, partnership, association, and any other legal entity.
44-8 (4) "Transfer" means the conveyance of a water right
44-9 or the right to use water under a water right in any of the
44-10 following manners:
44-11 (A) the conveyance of legal title to a water
44-12 right; or
44-13 (B) a contract or option contract to allow use
44-14 of a water right.
44-15 (5) "Trust" means the Texas Water Trust.
44-16 (6) "Water bank" or "bank" means the Texas Water Bank.
44-17 (7) [(6)] "Water right" means a right acquired or
44-18 authorized under the laws of this state to impound, divert, or use
44-19 state water, underground water, or water from any source to the
44-20 extent authorized by law.
44-21 SECTION 2.14. Section 15.702, Water Code, is amended to read
44-22 as follows:
44-23 Sec. 15.702. Creation of Bank. The Texas Water Development
44-24 Board shall establish the Texas Water Bank. The board shall
44-25 administer the water bank to facilitate water transactions [the
45-1 transfer of water from all sources as necessary] to provide sources
45-2 of adequate water supplies for use within the State of Texas.
45-3 SECTION 2.15. Subsection (a), Section 15.703, Water Code, is
45-4 amended to read as follows:
45-5 (a) The board may take all actions necessary to operate the
45-6 water bank and to facilitate the transfer of water rights from the
45-7 water bank for future beneficial use including but not limited to:
45-8 (1) negotiating a sale price and terms acceptable to
45-9 the depositor and purchaser;
45-10 (2) maintaining a registry of water bank deposits and
45-11 those water users in need of additional supplies;
45-12 (3) informing water users in need of additional supply
45-13 of water rights available in the bank;
45-14 (4) encouraging water right holders to implement water
45-15 conservation practices and deposit the right to use the conserved
45-16 water into the bank;
45-17 (5) establishing requirements for deposit of a water
45-18 right into the water bank including minimum terms for deposit;
45-19 (6) purchasing, holding, and selling water rights in
45-20 its own name;
45-21 (7) establishing regional water banks; [and]
45-22 (8) acting as a clearinghouse for water marketing
45-23 information including water availability, pricing of water
45-24 transactions, environmental considerations, and potential buyers
45-25 and sellers of water rights;
46-1 (9) preparing and publishing a manual on structuring
46-2 water transactions;
46-3 (10) accepting and holding donations of water rights
46-4 to meet instream, water quality, fish and wildlife habitat, or bay
46-5 and estuary inflow needs; and
46-6 (11) other actions to facilitate water transactions
46-7 [transfers].
46-8 SECTION 2.16. Subchapter K, Chapter 15, Water Code, is
46-9 amended by adding Section 15.7031 to read as follows:
46-10 Sec. 15.7031. TEXAS WATER TRUST. (a) The Texas Water Trust
46-11 is established within the water bank to hold water rights dedicated
46-12 to environmental needs, including instream flows, water quality,
46-13 fish and wildlife habitat, or bay and estuary inflows.
46-14 (b) The board, in consultation with the Parks and Wildlife
46-15 Department and the commission, shall adopt rules governing the
46-16 process for holding and transferring water rights.
46-17 (c) The dedication of any water rights placed in trust must
46-18 be reviewed and approved by the commission, in consultation with
46-19 the board and the Parks and Wildlife Department.
46-20 (d) Water rights may be held in the trust for a term
46-21 specified by contractual agreement or in perpetuity.
46-22 SECTION 2.17. Section 15.704, Water Code, is amended by
46-23 amending Subsection (a) and adding Subsection (c) to read as
46-24 follows:
46-25 (a) A [Up to 50 percent of a] water right may be deposited
47-1 in the water bank for an initial term of up to 10 years, unless
47-2 otherwise held in the Texas Water Trust as established under
47-3 Section 15.7031 of this code, during which time the water right is
47-4 exempt from cancellation by the commission under the terms of
47-5 Subchapter E of Chapter 11 of this code. A water right is exempt
47-6 from cancellation under this subsection only once even if it has
47-7 been transferred or redeposited.
47-8 (c) A contract or option contract to allow use of a water
47-9 right under this subchapter:
47-10 (1) may include a requirement that the purchaser show
47-11 diligence in pursuing feasible and practicable alternative water
47-12 supplies; and
47-13 (2) does not vest any right in the purchaser beyond
47-14 the stated terms and conditions of the contract or option contract.
47-15 SECTION 2.18. (a) All permits approved by the Texas Natural
47-16 Resource Conservation Commission before the effective date of this
47-17 Act that allow the multiple use of the appropriation of a specific
47-18 amount of water and which are no longer subject to appeal are
47-19 validated in all respects as if they originally had been legally
47-20 authorized or accomplished.
47-21 (b) This article does not apply to an application for an
47-22 interbasin transfer or reuse project using privately owned
47-23 groundwater received and pending before March 2, 1997. Any
47-24 subsequent renewals of such applications shall be subject to the
47-25 provisions of this Act.
48-1 (c) Nothing in this Act shall affect the validity of any
48-2 interbasin transfer permitted or authorized before the effective
48-3 date of this Act.
48-4 ARTICLE 3. EMERGENCY AUTHORIZATIONS; ENFORCEMENT
48-5 SECTION 3.01. Subsection (a), Section 11.082, Water Code, is
48-6 amended to read as follows:
48-7 (a) A person who wilfully takes, diverts, or appropriates
48-8 state water without complying with the applicable requirements of
48-9 this chapter is also liable to a civil penalty of not more than
48-10 $5,000 [$1,000] for each day he continues the taking, diversion, or
48-11 appropriation.
48-12 SECTION 3.02. Subchapter C, Chapter 11, Water Code, is
48-13 amended by adding Sections 11.0841, 11.0842, and 11.0843 to read as
48-14 follows:
48-15 Sec. 11.0841. CIVIL REMEDY. (a) Nothing in this chapter
48-16 affects the right of any private corporation, individual, or
48-17 political subdivision that has a justiciable interest in pursuing
48-18 any available common-law remedy to enforce a right or to prevent or
48-19 seek redress or compensation for the violation of a right or
48-20 otherwise redress an injury.
48-21 (b) A district court may award the costs of litigation,
48-22 including reasonable attorney fees and expert costs, to any
48-23 political subdivision of the state, private corporation, or
48-24 individual that is a water right holder and that prevails in a suit
48-25 for injunctive relief to redress an unauthorized diversion,
49-1 impoundment, or use of surface water in violation of this chapter
49-2 or a rule adopted pursuant to this chapter.
49-3 Sec. 11.0842. ADMINISTRATIVE PENALTY. (a) If a person
49-4 violates this chapter, a rule or order adopted under this chapter
49-5 or Section 16.236 of this code, or a permit, certified filing, or
49-6 certificate of adjudication issued under this chapter, the
49-7 commission may assess an administrative penalty against that person
49-8 as provided by this section.
49-9 (b) The penalty may be in an amount not to exceed $5,000 for
49-10 each day the person is in violation of this chapter, the rule or
49-11 order adopted under this chapter, or the permit, certified filing,
49-12 or certificate of adjudication issued under this chapter. The
49-13 penalty may be in an amount not to exceed $1,000 for each day the
49-14 person is in violation of the rule or order adopted under Section
49-15 16.236 of this code. Each day a violation continues may be
49-16 considered a separate violation for purposes of penalty assessment.
49-17 (c) In determining the amount of the penalty, the commission
49-18 shall consider:
49-19 (1) the nature, circumstances, extent, duration, and
49-20 gravity of the prohibited acts, with special emphasis on the
49-21 impairment of an existing permit, certified filing, or certificate
49-22 of adjudication or the hazard or potential hazard created to the
49-23 health, safety, or welfare of the public;
49-24 (2) the impact of the violation on the instream uses,
49-25 water quality, fish and wildlife habitat, or beneficial freshwater
50-1 inflows to bays and estuaries;
50-2 (3) with respect to the alleged violator:
50-3 (A) the history and extent of previous
50-4 violations;
50-5 (B) the degree of culpability, including whether
50-6 the violation was attributable to mechanical or electrical failures
50-7 and whether the violation could have been reasonably anticipated
50-8 and avoided;
50-9 (C) demonstrated good faith, including actions
50-10 taken by the alleged violator to rectify the cause of the violation
50-11 and to compensate affected persons;
50-12 (D) any economic benefit gained through the
50-13 violation; and
50-14 (E) the amount necessary to deter future
50-15 violations; and
50-16 (4) any other matters that justice may require.
50-17 (d) If, after examination of a possible violation and the
50-18 facts surrounding that possible violation, the executive director
50-19 concludes that a violation has occurred, the executive director
50-20 shall issue a preliminary report stating the facts on which that
50-21 conclusion was based, recommending that an administrative penalty
50-22 under this section be imposed on the person charged, and
50-23 recommending the amount of the penalty. The executive director
50-24 shall base the recommended amount of the proposed penalty on the
50-25 factors provided by Subsection (c) of this section and shall
51-1 analyze each factor for the benefit of the commission.
51-2 (e) No later than the 10th day after the date on which the
51-3 report is issued, the executive director shall give written notice
51-4 of the report to the person charged with the violation. The notice
51-5 shall include a brief summary of the charges, a statement of the
51-6 amount of the penalty recommended, and a statement of the right of
51-7 the person charged to a hearing on the occurrence of the violation,
51-8 the amount of the penalty, or both the occurrence of the violation
51-9 and the amount of the penalty.
51-10 (f) No later than the 20th day after the date on which
51-11 notice is received, the person charged may either give to the
51-12 commission written consent to the executive director's report,
51-13 including the recommended penalty, or make a written request for a
51-14 hearing.
51-15 (g) If the person charged with the violation consents to the
51-16 penalty recommended by the executive director or fails to timely
51-17 respond to the notice, the commission by order shall either assess
51-18 the penalty or order a hearing to be held on the findings and
51-19 recommendations in the executive director's report. If the
51-20 commission assesses the penalty recommended by the report, the
51-21 commission shall give written notice of its decision to the person
51-22 charged.
51-23 (h) If the person charged requests or the commission orders
51-24 a hearing, the commission shall call a hearing and give notice of
51-25 the hearing. As a result of the hearing, the commission by order
52-1 either may find that a violation has occurred and may assess a
52-2 penalty, may find that a violation has occurred but that no penalty
52-3 should be assessed, or may find that no violation has occurred.
52-4 All proceedings under this subsection are subject to Chapter 2001,
52-5 Government Code. In making any penalty decision, the commission
52-6 shall analyze each of the factors provided by Subsection (c) of
52-7 this section.
52-8 (i) The commission shall give notice of its decision to the
52-9 person charged, and if the commission finds that a violation has
52-10 occurred and assesses an administrative penalty, the commission
52-11 shall give written notice to the person charged of its findings, of
52-12 the amount of the penalty, and of the person's right to judicial
52-13 review of the commission's order. If the commission is required to
52-14 give notice of a penalty under this subsection or Subsection (g) of
52-15 this section, the commission shall file notice of its decision in
52-16 the Texas Register not later than the 10th day after the date on
52-17 which the decision is adopted.
52-18 (j) Within the 30-day period immediately following the day
52-19 on which the commission's order is final, as provided by Subchapter
52-20 F, Chapter 2001, Government Code, the person charged with the
52-21 penalty shall:
52-22 (1) pay the penalty in full;
52-23 (2) pay the amount of the penalty and file a petition
52-24 for judicial review contesting the occurrence of the violation, the
52-25 amount of the penalty, or both the occurrence of the violation and
53-1 the amount of the penalty; or
53-2 (3) without paying the amount of the penalty, file a
53-3 petition for judicial review contesting the occurrence of the
53-4 violation, the amount of the penalty, or both the occurrence of the
53-5 violation and the amount of the penalty.
53-6 (k) Within the 30-day period, a person who acts under
53-7 Subsection (j)(3) of this section may:
53-8 (1) stay enforcement of the penalty by:
53-9 (A) paying the amount of the penalty to the
53-10 court for placement in an escrow account; or
53-11 (B) giving to the court a supersedeas bond that
53-12 is approved by the court for the amount of the penalty and that is
53-13 effective until all judicial review of the commission's order is
53-14 final; or
53-15 (2) request the court to stay enforcement of the
53-16 penalty by:
53-17 (A) filing with the court a sworn affidavit of
53-18 the person stating that the person is financially unable to pay the
53-19 amount of the penalty and is financially unable to give the
53-20 supersedeas bond; and
53-21 (B) giving a copy of the affidavit to the
53-22 commission by certified mail.
53-23 (l) If the commission receives a copy of an affidavit under
53-24 Subsection (k)(2) of this section, it may file with the court
53-25 within five days after the date the copy is received a contest to
54-1 the affidavit. The court shall hold a hearing on the facts alleged
54-2 in the affidavit as soon as practicable and shall stay the
54-3 enforcement of the penalty on finding that the alleged facts are
54-4 true. The person who files an affidavit has the burden of proving
54-5 that the person is financially unable to pay the amount of the
54-6 penalty and to give a supersedeas bond.
54-7 (m) If the person does not pay the amount of the penalty and
54-8 the enforcement of the penalty is not stayed, the commission may
54-9 refer the matter to the attorney general for collection of the
54-10 amount of the penalty.
54-11 (n) Judicial review of the order or decision of the
54-12 commission assessing the penalty shall be under the substantial
54-13 evidence rule and shall be instituted by filing a petition with a
54-14 district court in Travis County, as provided by Subchapter G,
54-15 Chapter 2001, Government Code.
54-16 (o) A penalty collected under this section shall be
54-17 deposited in the state treasury to the credit of the general
54-18 revenue fund.
54-19 (p) Notwithstanding any other provision to the contrary, the
54-20 commission may compromise, modify, or remit, with or without
54-21 condition, any penalty imposed under this section.
54-22 (q) Payment of an administrative penalty under this section
54-23 shall be full and complete satisfaction of the violation for which
54-24 the administrative penalty is assessed and shall preclude any other
54-25 civil or criminal penalty for the same violation.
55-1 Sec. 11.0843. FIELD CITATION. (a) Upon witnessing a
55-2 violation of this chapter or a rule or order or a water right
55-3 issued under this chapter, a watermaster or the watermaster's
55-4 deputy, as defined by commission rule, may issue the alleged
55-5 violator a field citation alleging that a violation has occurred
55-6 and providing the alleged violator the option of either:
55-7 (1) without admitting to or denying the alleged
55-8 violation, paying an administrative penalty in accordance with the
55-9 predetermined penalty amount established under Subsection (b) of
55-10 this section and taking remedial action as provided in the
55-11 citation; or
55-12 (2) requesting a hearing on the alleged violation in
55-13 accordance with Section 11.0842 of this code.
55-14 (b) By rule the commission shall establish penalty amounts
55-15 corresponding to types of violations of this chapter or rules or
55-16 orders adopted or water rights issued under this chapter.
55-17 (c) A penalty collected under this section shall be
55-18 deposited in the state treasury to the credit of the general
55-19 revenue fund.
55-20 SECTION 3.03. Section 11.139, Water Code, is amended to read
55-21 as follows:
55-22 Sec. 11.139. EMERGENCY AUTHORIZATIONS [PERMITS].
55-23 (a) Except as provided by Section 11.148 of this code, the [The]
55-24 commission may grant an emergency permit, order, or amendment to an
55-25 existing permit, certified filing, or certificate of adjudication
56-1 after notice to the governor [for the diversion and use of water]
56-2 for an initial [a] period of not more than 120 [30] days if the
56-3 commission [it] finds that emergency conditions exist which present
56-4 an imminent threat to [threaten] the public health and[,] safety[,
56-5 and welfare] and which override the necessity to comply with
56-6 established statutory procedures and there are no feasible
56-7 practicable alternatives to the emergency authorization. Such
56-8 emergency action may be renewed once for not longer than 60 days.
56-9 (b) A person desiring to obtain an emergency authorization
56-10 under this section shall submit to the commission a sworn
56-11 application containing the following information:
56-12 (1) a description of the condition of emergency
56-13 justifying the granting of the emergency authorization;
56-14 (2) a statement setting forth facts which support the
56-15 findings required under this section;
56-16 (3) an estimate of the dates on which the proposed
56-17 authorization should begin and end;
56-18 (4) a description of the action sought and the
56-19 activity proposed to be allowed, mandated, or prohibited; and
56-20 (5) any other statements or information required by
56-21 the commission.
56-22 (c) If the commission finds the applicant's statement made
56-23 under Subsection (b) of this section to be correct, the commission
56-24 may grant emergency authorizations under this section without
56-25 notice and hearing or with such notice and hearing as the
57-1 commission considers practicable under the circumstances.
57-2 (d) If the commission grants an emergency authorization
57-3 under this section without a hearing, the authorization shall fix a
57-4 time and place for a hearing to be held before the commission. The
57-5 hearing shall be held as soon after the emergency authorization is
57-6 granted as is practicable but not later than 20 days after the
57-7 emergency authorization is granted.
57-8 (e) At the hearing, the commission shall affirm, modify, or
57-9 set aside the emergency authorization. Any hearing on an emergency
57-10 authorization shall be conducted in accordance with Chapter 2001,
57-11 Government Code, and rules of the commission.
57-12 (f) If an imminent threat to the public health and safety
57-13 exists which requires emergency action before the commission can
57-14 take action as provided by Subsections (a) through (c) of this
57-15 section and there are no feasible alternatives, the executive
57-16 director may grant an emergency authorization after notice to the
57-17 governor. If the executive director issues an emergency
57-18 authorization under this subsection, the commission shall hold a
57-19 hearing as provided for in Subsections (d) and (e) of this section.
57-20 The requirements of Subsection (b) of this section shall be
57-21 satisfied by the applicant before action is taken by the executive
57-22 director on the request for emergency authorization.
57-23 (g) The requirements of Section 11.132 of this code relating
57-24 to the time for notice, newspaper notice, and method of giving a
57-25 person notice do not apply to a hearing held on an application for
58-1 an emergency authorization under this section, but such general
58-2 notice of the hearing shall be given as the commission, under
58-3 Subsections (c) and (e) of this section, considers practicable
58-4 under the circumstances.
58-5 (h) The commission may grant an emergency authorization
58-6 under this section for the temporary transfer and use of all or
58-7 part of a permit, certified filing, or certificate of adjudication
58-8 for other than domestic or municipal use to a retail or wholesale
58-9 water supplier for public health and safety purposes. In addition
58-10 to the requirements contained in Subsection (b) of this section,
58-11 the commission may direct that the applicant will timely pay the
58-12 amounts for which the applicant may be potentially liable under
58-13 Subsection (j) of this section and to the extent authorized by law
58-14 will fully indemnify and hold harmless the state, the executive
58-15 director, and the commission from any and all liability for the
58-16 authorization sought. The commission may order bond or other
58-17 surety in a form acceptable to the commission as a condition for
58-18 such emergency authorization. The commission may not grant an
58-19 emergency authorization under this section which would cause a
58-20 violation of a federal regulation.
58-21 (i) In transferring the amount of water requested by the
58-22 applicant, the executive director or the commission shall allocate
58-23 the requested amount among two or more permits, certified filings,
58-24 or certificates of adjudication for other than domestic or
58-25 municipal use.
59-1 (j) The person granted an emergency authorization under
59-2 Subsection (h) of this section is liable to the owner and the
59-3 owner's agent or lessee from whom the use is transferred for the
59-4 fair market value of the water transferred as well as for any
59-5 damages caused by the transfer of use. If, within 60 days of the
59-6 termination of the authorization, the parties do not agree on the
59-7 amount due, or if full payment is not made, either party may file a
59-8 complaint with the commission to determine the amount due. The
59-9 commission may use dispute resolution procedures for a complaint
59-10 filed under this subsection. After exhausting all administrative
59-11 remedies under this subsection, an owner from whom the use is
59-12 transferred may file suit to recover or determine the amount due in
59-13 a district court in the county where the owner resides or has its
59-14 headquarters. The prevailing party in a suit filed under this
59-15 subsection is entitled to recover court costs and reasonable
59-16 attorney's fees.
59-17 (k) [An emergency permit may be granted for a period of not
59-18 more than 30 days, and no extension or additional emergency permit
59-19 may be granted at the expiration of the original permit.]
59-20 [(c) An emergency permit may be granted under this section
59-21 without the necessity to comply with statutory and other procedures
59-22 required for granting other permits issued by the commission.]
59-23 [(d)] The commission may prescribe rules and adopt fees
59-24 which are necessary to carry out the provisions of this section.
59-25 (l) [(e)] An emergency authorization [permit] does not vest
60-1 in the grantee [permittee] any right to the diversion, impoundment,
60-2 or [and] use of water and shall expire and be cancelled in
60-3 accordance with its terms.
60-4 SECTION 3.04. Subsection (c), Section 12.052, Water Code, is
60-5 amended to read as follows:
60-6 (c) If the owner of a dam that is required to be
60-7 constructed, reconstructed, repaired, or removed in order to comply
60-8 with the rules and orders promulgated under Subsection (a) of this
60-9 section wilfully fails or refuses to comply within the 30-day
60-10 period following the date of the commission's final, nonappealable
60-11 order to do so or if a person wilfully fails to comply with any
60-12 rule or other order issued by the commission under this section
60-13 within the 30-day period following the effective date of the order,
60-14 he is liable to a penalty of not more than $5,000 [$1,000] a day
60-15 for each day he continues to violate this section. The state may
60-16 recover the penalty by suit brought for that purpose in the
60-17 district court of Travis County.
60-18 SECTION 3.05. Section 16.236, Water Code, is amended to read
60-19 as follows:
60-20 Sec. 16.236. CONSTRUCTION OF LEVEE WITHOUT APPROVAL OF
60-21 PLANS; LEVEE SAFETY. (a) No person may construct, attempt to
60-22 construct, cause to be constructed, maintain, or cause to be
60-23 maintained any levee or other such improvement on, along, or near
60-24 any stream of this state that is subject to floods, freshets, or
60-25 overflows so as to control, regulate, or otherwise change the
61-1 floodwater of the stream without first obtaining approval of the
61-2 plans by the commission.
61-3 (b) The commission shall make and enforce rules and orders
61-4 and shall perform all other acts necessary to provide for the safe
61-5 construction, maintenance, repair, and removal of levees located in
61-6 this state.
61-7 (c) If the owner of a levee that is required to be
61-8 constructed, reconstructed, repaired, or removed to comply with the
61-9 rules and orders promulgated under this section wilfully fails or
61-10 refuses to comply within the 30-day period following the date of an
61-11 order of the commission requiring such action or compliance or if a
61-12 person wilfully fails to comply with any rule or order issued by
61-13 the commission under this section within the 30-day period
61-14 following the effective date of the order, the person is liable for
61-15 a penalty of not more than $1,000 a day for each day the person
61-16 continues to violate this section. The state may recover the
61-17 penalty by suit brought for that purpose in a district court of
61-18 Travis County.
61-19 (d) If the commission determines that the existing condition
61-20 of a levee is creating or will cause extensive or severe property
61-21 damage or economic loss to others or is posing an immediate and
61-22 serious threat to human life or health and that other procedures
61-23 available to the commission to remedy or prevent such property
61-24 damage or economic loss will result in unreasonable delay, the
61-25 commission may issue an emergency order, either mandatory or
62-1 prohibitory in nature, directing the owner of the levee to repair,
62-2 modify, maintain, dewater, or remove the levee which the commission
62-3 determines is unsafe. The emergency order may be issued without
62-4 notice to the levee owner or with notice the commission considers
62-5 practicable under the circumstances.
62-6 (e) If the commission issues an emergency order under
62-7 authority of this section without notice to the levee owner, the
62-8 commission shall fix a time and place for a hearing, to be held as
62-9 soon as practicable but not later than 20 days after the emergency
62-10 order is authorized, to affirm, modify, or set aside the emergency
62-11 order. If the nature of the commission's action requires further
62-12 proceedings, those proceedings shall be conducted, as appropriate,
62-13 under Chapter 2001, Government Code.
62-14 (f) Nothing in this section or in rules or orders adopted by
62-15 the commission shall be construed to relieve an owner or operator
62-16 of a levee of the legal duties, obligations, or liabilities
62-17 incident to ownership or operation.
62-18 (g) Any person who violates any provision of Subsection (a)
62-19 of this section is guilty of a Class C misdemeanor and upon
62-20 conviction is punishable by a fine of not more than $1,000 [$100].
62-21 A separate offense is committed each day a structure constructed in
62-22 violation of this section is maintained.
62-23 (h) Subsection (a) of this [(c) At the request of the
62-24 executive director, the attorney general shall file suit in a
62-25 district court of Travis County to enjoin any violation or
63-1 threatened violation of this section. In the suit, the attorney
63-2 general may seek to have the illegal levee or other improvement
63-3 removed and the preexisting conditions restored and may also
63-4 collect civil penalties of up to $100 a day for each day a
63-5 violation occurs.]
63-6 [(d) This] section does not apply to:
63-7 (1) any dam, reservoir, or canal system associated
63-8 with a water right issued or recognized by the commission [dams
63-9 permitted by the commission or recognized as valid by final decree
63-10 in any proceeding begun under Subchapter G, Chapter 11, of this
63-11 code];
63-12 (2) dams authorized by Section 11.142 of this code;
63-13 (3) a levee or other improvement within the corporate
63-14 limits of a city or town provided: (a) plans for the construction
63-15 or maintenance or both must be approved by the city or town as a
63-16 condition precedent to starting the project and (b) the city or
63-17 town requires that such plans be in substantial compliance with
63-18 rules and standards adopted by the commission; [or]
63-19 (4) a levee or other improvement within the boundaries
63-20 of any political subdivision which has qualified for the National
63-21 Flood Insurance Program as authorized by the National Flood
63-22 Insurance Act of 1968 (Title 42, U.S.C., Sections 4001-4127)
63-23 provided: (a) plans for the construction or maintenance or both
63-24 must be approved by the political subdivision which is
63-25 participating in the national flood insurance program as a
64-1 condition precedent to starting the project and (b) the political
64-2 subdivision requires that such plans be in substantial compliance
64-3 with rules and standards adopted by the commission;
64-4 (5) projects implementing soil and water conservation
64-5 practices set forth in a conservation plan with a landowner or
64-6 operator and approved by the governing board of a soil and water
64-7 conservation district organized under the State Soil Conservation
64-8 Law, as amended (Article 165a-4, Vernon's Texas Civil Statutes),
64-9 provided that the governing board finds the practices do not
64-10 significantly affect stream flooding conditions on, along, or near
64-11 a state stream; or
64-12 (6) any levee or other improvement constructed outside
64-13 of the 100-year floodway. For the purposes of this section,
64-14 "100-year floodway" is defined as the channel of a stream and the
64-15 adjacent land areas that must be reserved in order to discharge the
64-16 100-year flood without cumulatively increasing the water surface
64-17 elevation more than one foot above the 100-year flood elevation
64-18 prior to encroachment.
64-19 (i) [(e)] On projects located within the corporate limits of
64-20 a city or town or within the boundaries of any political
64-21 subdivision which are exempt from the provisions of Subsection (a)
64-22 of this section by Subdivision (3) or (4) of Subsection (h) of this
64-23 section [(d) above], any person whose property is located outside
64-24 of the corporate limits of such city or town or of the boundaries
64-25 of such a political subdivision and whose property is affected or
65-1 potentially affected by the effect of the project on the
65-2 floodwaters of the stream may appeal the decision of such political
65-3 subdivision. The appeal shall be in writing and shall specify the
65-4 grounds therefor and a copy shall be sent by certified mail to the
65-5 project applicant and to the city or town or such political
65-6 subdivision. The timely filing of such an appeal with the
65-7 executive director suspends the decision of the city or town or
65-8 political subdivision until a final decision is rendered by the
65-9 commission. The executive director shall review the complaint and
65-10 investigate the facts surrounding the nature of the complaint. If
65-11 the executive director finds that the complaint is frivolous or
65-12 nonmeritorious or made solely for purposes of harassment or delay,
65-13 then he shall dismiss the appeal. Otherwise, the executive
65-14 director shall refer the appeal to the commission which shall after
65-15 due notice hold a hearing to determine whether the project should
65-16 be approved using the standards established by the commission and
65-17 shall hear such appeal de novo under the procedural rules
65-18 established by the commission for other reclamation projects.
65-19 SECTION 3.06. Subchapter G, Chapter 16, Water Code, is
65-20 amended by adding Section 16.237 to read as follows:
65-21 Sec. 16.237. ADMINISTRATIVE PENALTY; CIVIL REMEDY. (a) If
65-22 a person violates a commission rule or order adopted under Section
65-23 16.236 of this code, the commission may assess an administrative
65-24 penalty against that person as provided by Section 11.0842 of this
65-25 code.
66-1 (b) Nothing in this chapter affects the right of any private
66-2 corporation, individual, or political subdivision that has a
66-3 justiciable interest in pursuing any available common-law remedy to
66-4 enforce a right or to prevent or seek redress or compensation for
66-5 the violation of a right or otherwise redress an injury.
66-6 ARTICLE 4. SURFACE WATER AND GROUNDWATER SUPPLIES
66-7 SECTION 4.01. Section 11.134, Water Code, is amended by
66-8 amending Subsection (b) and adding Subsection (c) to read as
66-9 follows:
66-10 (b) The commission shall grant the application only if:
66-11 (1) the application conforms to the requirements
66-12 prescribed by this chapter and is accompanied by the prescribed
66-13 fee;
66-14 (2) unappropriated water is available in the source of
66-15 supply;
66-16 (3) the proposed appropriation:
66-17 (A) is intended for a [contemplates the
66-18 application of water to any] beneficial use;
66-19 (B) does not impair existing water rights or
66-20 vested riparian rights; [and]
66-21 (C) is not detrimental to the public welfare;
66-22 [and]
66-23 (D) considers the effects of any hydrological
66-24 connection between surface water and groundwater; and
66-25 (E) addresses a water supply need in a manner
67-1 that is consistent with the state water plan and an approved
67-2 regional water plan for any area in which the proposed
67-3 appropriation is located, unless the commission determines that
67-4 conditions warrant waiver of this requirement; and
67-5 (4) the applicant has provided evidence that
67-6 reasonable diligence will be used to avoid waste and achieve water
67-7 conservation as defined by Subdivision (8)(B), Section 11.002, of
67-8 this code.
67-9 (c) Beginning September 1, 2001, the commission may not
67-10 issue a water right for municipal purposes in a region that does
67-11 not have an approved regional water plan in accordance with Section
67-12 16.053(i) of this code unless the commission determines that
67-13 conditions warrant waiver of this requirement.
67-14 SECTION 4.02. Subchapter D, Chapter 11, Water Code, is
67-15 amended by adding Sections 11.1501 and 11.151 to read as follows:
67-16 Sec. 11.1501. CONSIDERATION AND REVISION OF PLANS. In
67-17 considering an application for a permit to store, take, or divert
67-18 surface water, or for an amendment to a permit, certified filing,
67-19 or certificate of adjudication, the commission shall consider the
67-20 state water plan and any approved regional water plan for the area
67-21 or areas in which the water is proposed to be stored, diverted, or
67-22 used.
67-23 Sec. 11.151. EFFECTS OF PERMITS ON GROUNDWATER. In
67-24 considering an application for a permit to store, take, or divert
67-25 surface water, the commission shall consider the effects, if any,
68-1 on groundwater or groundwater recharge.
68-2 SECTION 4.03. Section 11.153, Water Code, is amended by
68-3 amending the section heading and Subsections (a) and (d) to read as
68-4 follows:
68-5 Sec. 11.153. [PILOT] PROJECTS FOR STORAGE OF APPROPRIATED
68-6 WATER IN AQUIFERS. (a) The commission shall investigate the
68-7 feasibility of storing appropriated water in various types of
68-8 aquifers around the state by encouraging the issuance of temporary
68-9 or term permits for [pilot] demonstration projects for the storage
68-10 of appropriated water for subsequent retrieval and beneficial use
68-11 [in the following aquifers in the specified counties:]
68-12 [(1) the Anacacho, Austin Chalk, and Glen Rose
68-13 Limestone aquifers in Bexar County and Medina County;]
68-14 [(2) the Carrizo-Wilcox aquifer in Bexar, Webb, Smith,
68-15 Wood, Rains, and Van Zandt counties;]
68-16 [(3) the Hickory and Ellenberger aquifers in Gillespie
68-17 County; and]
68-18 [(4) the Gulf Coast aquifer in Cameron and Hidalgo
68-19 counties].
68-20 (d) The commission shall only issue a [A] final order
68-21 granting a permit or amendment to a permit authorizing the storage
68-22 of appropriated water in aquifers for subsequent beneficial use
68-23 where completed pilot projects or historically demonstrated
68-24 projects have been shown to be feasible under the criteria provided
68-25 in Sections 11.154(c) and (d)[, other than for the pilot projects
69-1 authorized by this section, may not be issued before June 1, 1999].
69-2 SECTION 4.04. Subsections (a), (b), (c), and (e), Section
69-3 11.154, Water Code, are amended to read as follows:
69-4 (a) An application filed with the commission to undertake a
69-5 [pilot] project under Section 11.153 must include:
69-6 (1) the information required for an application for a
69-7 permit or permit amendment to appropriate state water;
69-8 (2) all information required for an application for a
69-9 permit for a Class V injection well without requiring a separate
69-10 hearing or notice; and
69-11 (3) a map or plat showing the injection facility and
69-12 the aquifer in which the water will be stored.
69-13 (b) If the application is for a permit or permit amendment
69-14 to store appropriated water in a groundwater [an underground water]
69-15 reservoir or a subdivision of a groundwater [an underground water]
69-16 reservoir, as defined by Chapter 36 [52], that is under the
69-17 jurisdiction of a groundwater [an underground water] conservation
69-18 district:
69-19 (1) the applicant shall:
69-20 (A) provide a copy of the application to each
69-21 groundwater [underground water] conservation district that has
69-22 jurisdiction over the reservoir or subdivision;
69-23 (B) cooperate with each district [the districts]
69-24 that has [have] jurisdiction over the reservoir or subdivision to
69-25 ensure compliance with the rules of each district;
70-1 (C) cooperate with each district that has
70-2 jurisdiction over the reservoir or subdivision to develop rules
70-3 regarding the injection, storage, and withdrawal of appropriated
70-4 water stored in the aquifer; and
70-5 (D) comply with the rules governing the
70-6 injection, storage, and [or] withdrawal of appropriated water
70-7 stored in the reservoir or subdivision that are adopted by each [a]
70-8 district that has jurisdiction over the reservoir or subdivision;
70-9 and
70-10 (2) the commission shall require that any agreement
70-11 the applicant reaches with a district that has jurisdiction over
70-12 the reservoir or subdivision regarding the terms for the injection,
70-13 storage, and withdrawal of appropriated water be included as a
70-14 condition of the permit or permit amendment.
70-15 (c) On [completion of a pilot project and] receipt of an
70-16 [appropriate] application for a permit or an amendment to an
70-17 existing permit from an applicant with a completed pilot or
70-18 historically demonstrated project, the commission shall evaluate
70-19 the success of the [pilot] project for purposes of issuing a final
70-20 order granting a permit or permit amendment authorizing the storage
70-21 of appropriated water incident to a beneficial use. The commission
70-22 shall consider whether:
70-23 (1) the introduction of water into the aquifer will
70-24 alter the physical, chemical, or biological quality of native
70-25 groundwater to a degree that the introduction would:
71-1 (A) render groundwater produced from the aquifer
71-2 harmful or detrimental to people, animals, vegetation, or property;
71-3 or
71-4 (B) require treatment of the groundwater to a
71-5 greater extent than the native groundwater requires before being
71-6 applied to that beneficial use;
71-7 (2) the water stored in the receiving aquifer can be
71-8 successfully harvested from the aquifer for beneficial use; and
71-9 (3) [the permit holder has provided evidence that]
71-10 reasonable diligence will be used to protect the water stored in
71-11 the receiving aquifer from unauthorized withdrawals to the extent
71-12 necessary to maximize the permit holder's ability to retrieve and
71-13 beneficially use the stored water without experiencing unreasonable
71-14 loss of appropriated water.
71-15 (e) A permit to store appropriated water in a groundwater
71-16 [an underground water] reservoir or subdivision, as defined by
71-17 Chapter 36 [52], shall provide as a condition to the permit that
71-18 the permit holder shall:
71-19 (1) register the permit holder's injection and
71-20 recovery wells with a groundwater [an underground water]
71-21 conservation district that has jurisdiction over the reservoir or
71-22 subdivision, if any; and
71-23 (2) each calendar month, provide the district, if any,
71-24 with a written report showing for the previous calendar month:
71-25 (A) the amount of water injected for storage;
72-1 and
72-2 (B) the amount of water recaptured for use.
72-3 SECTION 4.05. Subsection (b), Section 11.155, Water Code, is
72-4 amended to read as follows:
72-5 (b) The board shall make other studies, investigations, and
72-6 surveys of the aquifers in the state as it considers necessary to
72-7 determine the occurrence, quantity, quality, and availability of
72-8 other aquifers in which water may be stored and subsequently
72-9 retrieved for beneficial use. The board shall undertake the
72-10 studies, investigations, and surveys in the following order of
72-11 priority:
72-12 (1) the aquifers described [identified] in Section
72-13 11.153(a);
72-14 (2) areas designated by the commission as "priority
72-15 groundwater management [critical] areas" under Section 35.008
72-16 [52.053]; and
72-17 (3) other areas of the state in a priority to be
72-18 determined by the board's ranking of where the greatest need
72-19 exists.
72-20 SECTION 4.06. Subsection (b), Section 11.173, Water Code, is
72-21 amended to read as follows:
72-22 (b) A permit, certified filing, or certificate of
72-23 adjudication or a portion of a permit, certified filing, or
72-24 certificate of adjudication is exempt from cancellation under
72-25 Subsection (a) of this section:
73-1 (1) to the extent of the owner's participation in the
73-2 Conservation Reserve Program authorized by the Food Security Act,
73-3 Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985)
73-4 or a similar governmental program; or
73-5 (2) if any portion of the water authorized to be used
73-6 pursuant to a permit, certified filing, or certificate of
73-7 adjudication has been used in accordance with a regional water
73-8 [management] plan approved pursuant to Section 16.053 of this code
73-9 [by the commission].
73-10 SECTION 4.07. Subdivision (6), Section 15.001, Water Code,
73-11 is amended to read as follows:
73-12 (6) "Project" means:
73-13 (A) any undertaking or work, including planning
73-14 activities and work to obtain regulatory authority at the local,
73-15 state, and federal level, to conserve, convey, and develop [surface
73-16 or subsurface] water resources in the state, to provide for the
73-17 maintenance and enhancement of the quality of the water of the
73-18 state, to provide nonstructural and structural flood control,
73-19 drainage, subsidence control, recharge, chloride control, brush
73-20 control, precipitation enhancement, and desalinization, to provide
73-21 for the acquisition of water rights and the repair of unsafe dams,
73-22 and to carry out other purposes defined by board rules; [or]
73-23 (B) any undertaking or work outside the state to
73-24 provide for the maintenance and enhancement of the quality of water
73-25 by eliminating saline inflow through well pumping and deep well
74-1 injection of brine; or
74-2 (C) any undertaking or work by Texas political
74-3 subdivisions or institutions of higher education to conserve,
74-4 convey, and develop water resources in areas outside Texas or to
74-5 provide for the maintenance and enhancement of the quality of the
74-6 water in areas adjoining Texas, if such undertaking or work will
74-7 result in water being available for use in or for the benefit of
74-8 Texas or will maintain and enhance the quality of water in Texas.
74-9 SECTION 4.08. Subsection (b), Section 15.002, Water Code, is
74-10 amended to read as follows:
74-11 (b) The legislature finds that the conventional means of
74-12 financing projects are inadequate to meet current and anticipated
74-13 needs of the state. Therefore, it is the further intent of the
74-14 legislature to provide a means of coordinating the development of
74-15 projects [throughout the state] through the board and to provide
74-16 political subdivisions the maximum opportunity to finance projects
74-17 through programs provided by this chapter. Projects may be in the
74-18 state or outside the state, provided that out-of-state projects
74-19 must be funded through a Texas political subdivision or an
74-20 institution of higher education and must result in water being
74-21 available for use in or for the benefit of Texas or maintain and
74-22 enhance the quality of water in Texas.
74-23 SECTION 4.09. Section 17.895, Water Code, is amended by
74-24 amending Subsection (a) and adding Subsection (c) to read as
74-25 follows:
75-1 (a) The board or lender districts may make conservation
75-2 loans for capital equipment or materials, labor, preparation costs,
75-3 and installation costs:
75-4 (1) to improve water use efficiency of water delivery
75-5 and application on existing irrigation systems;
75-6 (2) for preparing irrigated land to be converted to
75-7 dryland conditions; [or]
75-8 (3) for preparing dryland for more efficient use of
75-9 natural precipitation;
75-10 (4) for preparing and maintaining land to be used for
75-11 brush control activities, including but not limited to activities
75-12 conducted pursuant to Chapter 203, Agriculture Code; or
75-13 (5) for implementing precipitation enhancement
75-14 activities in areas of the state where such activities would be, in
75-15 the board's judgment, most effective.
75-16 (c) The board may make conservation loans to borrower
75-17 districts for the cost of purchasing and installing devices, on
75-18 public or private property, designed to indicate the amount of
75-19 water withdrawn for irrigation purposes.
75-20 SECTION 4.10. Subdivision (12), Section 35.002, Water Code,
75-21 is amended to read as follows:
75-22 (12) "Priority groundwater management [Critical] area"
75-23 means an area designated and delineated by the commission as an
75-24 area that is experiencing or is expected to experience critical
75-25 groundwater problems.
76-1 SECTION 4.11. Section 35.007, Water Code, is amended to read
76-2 as follows:
76-3 Sec. 35.007. IDENTIFYING, DESIGNATING, AND DELINEATING
76-4 PRIORITY GROUNDWATER MANAGEMENT [CRITICAL] AREAS. (a) The
76-5 executive director and the executive administrator shall meet at
76-6 least once a year to identify, based on information gathered by the
76-7 commission and the Texas Water Development Board, those areas of
76-8 the state that are experiencing or that are expected to experience,
76-9 [based on information available to the commission and the Texas
76-10 Water Development Board,] within the immediately following 25-year
76-11 [20-year] period, critical groundwater problems, including
76-12 shortages of surface water or groundwater, land subsidence
76-13 resulting from groundwater withdrawal, and contamination of
76-14 groundwater supplies.
76-15 (b) If the executive director concludes that an area of the
76-16 state should be considered for designation as a priority
76-17 groundwater management [critical] area, the executive director
76-18 shall prepare a report to the commission.
76-19 (c) Before the executive director requests a study from the
76-20 executive administrator under Subsection (d), the executive
76-21 director shall provide notice to the persons listed in Section
76-22 35.009(c) of areas being considered for identification as
76-23 experiencing or expected to experience critical groundwater
76-24 problems and shall consider any information or studies submitted
76-25 under this subsection. Not later than the 45th day after the date
77-1 of the notice, a person required to receive notice under this
77-2 subsection may submit to the executive director information or
77-3 studies that address the potential effects on an area of being
77-4 identified as experiencing or expected to experience critical
77-5 groundwater problems.
77-6 (d) The executive director shall begin preparation of a
77-7 priority groundwater management [critical] area report by
77-8 requesting a study from the executive administrator. The study
77-9 must:
77-10 (1) include an appraisal of the hydrogeology of the
77-11 area and matters within the Texas Water Development Board's
77-12 planning expertise relevant to the area;
77-13 (2) assess the area's immediate, short-term, and
77-14 long-term water supply and needs; and
77-15 (3) [. The study must] be completed and delivered to
77-16 the executive director on or before the 180th [90th] day following
77-17 the date of the request. If the study is not delivered within this
77-18 180-day [90-day] period, the executive director may proceed with
77-19 the preparation of the report.
77-20 (e) The executive director shall request a study from the
77-21 executive director of the Parks and Wildlife Department for the
77-22 purpose of preparing the report required by this section. The
77-23 study must:
77-24 (1) evaluate the potential effects of the designation
77-25 of a priority groundwater management area on an area's natural
78-1 resources; and
78-2 (2) be completed and delivered to the executive
78-3 director on or before the 180th day following the date of the
78-4 request. If the study is not delivered within this 180-day period,
78-5 the executive director may proceed with the preparation of the
78-6 report.
78-7 (f) [(d)] The report shall include:
78-8 (1) the recommended delineation of the boundaries of
78-9 any proposed priority groundwater management [critical] area in the
78-10 form of an order [a rule] to be considered for adoption by the
78-11 commission;
78-12 (2) the reasons and supporting information for or
78-13 against designating the area as a priority groundwater management
78-14 [critical] area;
78-15 (3) a recommendation regarding whether a district
78-16 should be created in the priority groundwater management [critical]
78-17 area or whether the priority groundwater management [critical] area
78-18 should be added to an existing district;
78-19 (4) a recommendation as to actions that should be
78-20 considered to conserve natural resources;
78-21 (5) an evaluation of information or studies submitted
78-22 to the executive director under Subsection (c); and
78-23 (6) any other information that the executive director
78-24 considers helpful to the commission.
78-25 (g) [(e)] The executive director must complete the report
79-1 and file it with the commission on or before the 240th [210th] day
79-2 following the date on which the executive administrator was
79-3 requested to produce a study. The executive director shall make
79-4 the report available for public inspection by providing a copy of
79-5 the report to at least one public library and the county clerk's
79-6 office in each county in which the proposed priority groundwater
79-7 management [critical] area is located and to all districts adjacent
79-8 to the area of the proposed priority groundwater management area.
79-9 (h) [(f)] To carry out this section, the executive director
79-10 may make necessary studies, hold hearings, solicit and collect
79-11 information, and use information already prepared by the executive
79-12 director or the executive administrator for other purposes.
79-13 SECTION 4.12. Section 35.008, Water Code, is amended to read
79-14 as follows:
79-15 Sec. 35.008. PROCEDURES FOR DESIGNATION OF PRIORITY
79-16 GROUNDWATER MANAGEMENT AREA; CONSIDERATION OF CREATION OF DISTRICT
79-17 OR ADDITION OF LAND IN PRIORITY GROUNDWATER MANAGEMENT AREA TO
79-18 EXISTING DISTRICT [CRITICAL AREAS]. (a) The commission shall
79-19 designate priority groundwater management [critical] areas using
79-20 the procedures provided by this chapter in lieu of those provided
79-21 by [applicable to rulemaking under the Administrative Procedure
79-22 Act,] Subchapter B, Chapter 2001, Government Code[, but if
79-23 procedures required by this chapter are in conflict with that Act,
79-24 this chapter controls].
79-25 (b) The commission shall call an evidentiary hearing to
80-1 consider:
80-2 (1) the designation of a priority groundwater
80-3 management area;
80-4 (2) whether a district should be created over all or
80-5 part of a priority groundwater management area; or
80-6 (3) whether all or part of the land in the priority
80-7 groundwater management area should be added to an existing
80-8 district.
80-9 (c) Evidentiary hearings shall be held at a location in one
80-10 of the counties in which the priority groundwater management area
80-11 is located, or proposed to be located, or in the nearest convenient
80-12 location if adequate facilities are not available in those
80-13 counties.
80-14 (d) At the hearing, the commission shall hear testimony and
80-15 receive evidence from affected persons. The commission shall
80-16 consider the executive director's report and supporting information
80-17 and the testimony and evidence received at the hearing. If the
80-18 commission considers further information necessary, the commission
80-19 may request such information from any source.
80-20 (e) The designation of a priority groundwater management
80-21 [critical] area may not be appealed nor may it be challenged under
80-22 the Administrative Procedure Act, Section 2001.038, Government
80-23 Code.
80-24 SECTION 4.13. Section 35.009, Water Code, is amended to read
80-25 as follows:
81-1 Sec. 35.009. NOTICE AND HEARING. (a) The [In addition to
81-2 the notice required for rulemaking under the Administrative
81-3 Procedure Act, Section 2001.023, Government Code, the] commission
81-4 shall have notice of the hearing published in at least one
81-5 newspaper with general circulation in the county or counties in
81-6 which the area proposed for designation as a priority groundwater
81-7 management [critical] area or the area within a priority
81-8 groundwater management area being considered for district creation
81-9 or for addition to an existing district is [to be] located. Notice
81-10 must be published not later than the 30th day before the date set
81-11 for the commission to consider the designation of the priority
81-12 groundwater management [critical] area, the creation of a district
81-13 in a priority groundwater management area, or the addition of land
81-14 in a priority groundwater management area to an existing district.
81-15 (b) The notice must include:
81-16 (1) if applicable, a statement of the general purpose
81-17 and effect of designating the proposed priority groundwater
81-18 management area [critical areas];
81-19 (2) if applicable, a statement of the general purpose
81-20 and effect of creating a district in the priority groundwater
81-21 management area;
81-22 (3) if applicable, a statement of the general purpose
81-23 and effect of adding all or part of the land in the priority
81-24 groundwater management area to an existing district;
81-25 (4) a map generally outlining the boundaries of the
82-1 area being considered for priority groundwater management [proposed
82-2 critical] area designation or the priority groundwater management
82-3 area being considered for district creation or for addition to an
82-4 existing district, or notice of the location at which a copy of the
82-5 map may be examined or obtained;
82-6 (5) a statement that the executive director's report
82-7 concerning the priority groundwater management area or proposed
82-8 area is available at the commission's main office in Austin, Texas,
82-9 and at regional offices of the commission for regions which include
82-10 territory within the priority groundwater management area or
82-11 proposed priority groundwater management area and that the report
82-12 is available for inspection during regular business hours;
82-13 (6) [(3)] a description or the name of the locations
82-14 in the affected area at which the commission has provided copies of
82-15 the executive director's report to be made available for public
82-16 inspection;
82-17 (7) the name and address of each public library, each
82-18 county clerk's office, and each district to which the commission
82-19 has provided copies of the executive director's report; and
82-20 (8) [(4)] the date, time, and place of the hearing [at
82-21 which the commission will consider the designation of the critical
82-22 areas].
82-23 (c) The commission shall also give written notice of the
82-24 date, time, place, and purpose of the hearing to the governing body
82-25 of each county, regional water planning group, adjacent groundwater
83-1 district, municipality, river authority, water district, or other
83-2 entity which supplies public drinking water, including each holder
83-3 of a certificate of convenience and necessity issued by the
83-4 commission, and of each irrigation district, located either in
83-5 whole or in part in the priority groundwater management area or
83-6 proposed priority groundwater management area. The notice must be
83-7 given before the 30th day preceding the date set for the hearing.
83-8 SECTION 4.14. Subsections (b), (c), (d), and (e), Section
83-9 35.012, Water Code, are amended to read as follows:
83-10 (b) If the commission finds that the land and other property
83-11 in the priority groundwater management [critical] area would
83-12 benefit from the creation of one or more districts, that there is a
83-13 public need for one or more districts, and that the creation of one
83-14 or more districts would further the public welfare, the commission
83-15 shall issue an order stating that the creation of one or more
83-16 districts is needed.
83-17 (c) Following [During the period between] the [date of]
83-18 issuance of a commission order under Subsection (b) [and one year
83-19 after the close of the next regular session of the legislature
83-20 following the issuance of the order], the landowners in the
83-21 priority groundwater management [critical] area may:
83-22 (1) create one or more districts under Subchapter B,
83-23 Chapter 36;
83-24 (2) have the area annexed to a district that adjoins
83-25 the area; or
84-1 (3) create one or more districts through the
84-2 legislative process.
84-3 (d) The commission shall identify the areas subject to the
84-4 order of the commission issued under Subsection (b) that have not[,
84-5 in the period provided by Subsection (c),] been incorporated into a
84-6 district[,] and shall delineate proposed boundaries of a district
84-7 to include those areas. If the commission proposes the creation of
84-8 one or more districts, the Texas Agricultural Extension Service
84-9 [commission] shall begin an educational program within such areas
84-10 with the assistance and cooperation of the Texas Water Development
84-11 Board, the commission, other state agencies, and existing districts
84-12 to inform the residents of the status of the area's water resources
84-13 and management options including possible formation of a district,
84-14 before beginning the procedures for creation of a district provided
84-15 in Subchapter B, Chapter 36.
84-16 (e) If the commission fails to find that the district would
84-17 be a benefit to the land and other property within the priority
84-18 groundwater management [critical] area, that there is a public need
84-19 for the district, or that creation of the district will further the
84-20 public welfare, the commission shall issue an order stating that a
84-21 district should not be created within the boundaries of the
84-22 priority groundwater management [critical] area.
84-23 SECTION 4.15. Section 35.013, Water Code, is amended to read
84-24 as follows:
84-25 Sec. 35.013. ADDING PRIORITY GROUNDWATER MANAGEMENT
85-1 [CRITICAL] AREA TO EXISTING DISTRICT. (a) If land in a priority
85-2 groundwater management [critical] area is located adjacent to one
85-3 or more existing districts, the commission, instead of issuing an
85-4 order under Section 35.012, may issue an order recommending that
85-5 the priority groundwater management [critical] area be added to the
85-6 existing district designated by the commission. In its order, the
85-7 commission must find that the land and other property in the
85-8 priority groundwater management [critical] area and the land in the
85-9 existing district will benefit from the addition of the area, that
85-10 there is a public need to add the priority groundwater management
85-11 [critical] area to the existing district, and that the addition of
85-12 the land to the existing district would further the public welfare.
85-13 (b) If the executive director recommends that the priority
85-14 groundwater management [critical] area be added to an existing
85-15 district or if the commission considers it possible to add the
85-16 priority groundwater management [critical] area to an adjacent
85-17 existing district, the commission shall give notice to the board of
85-18 the existing district recommended by the executive director or
85-19 considered by the commission to possibly serve the area and to any
85-20 other existing districts adjacent to the priority groundwater
85-21 management [critical] area.
85-22 (c) The commission shall submit a copy of the order to the
85-23 board of the district to which it is recommending the priority
85-24 groundwater management [critical] area be added. The board shall
85-25 vote on the addition of the priority groundwater management
86-1 [critical] area to the district and shall advise the commission of
86-2 the outcome.
86-3 (d) If the board votes to accept the addition of the
86-4 priority groundwater management [critical] area to the district,
86-5 the board:
86-6 (1) may request the Texas Agricultural Extension
86-7 Service, the commission, the Texas Water Development Board, and
86-8 other state agencies to administer an educational program to inform
86-9 the residents of the status of the area's water resources and
86-10 management options including possible annexation into a district;
86-11 (2) shall call an election within the priority
86-12 groundwater management [critical] area as delineated by the
86-13 commission to determine if the priority groundwater management
86-14 [critical] area will be added to the district; and
86-15 (3) [. In the order calling the election, the board]
86-16 shall designate election precincts and polling places for the
86-17 elections in the order calling an election under this subsection.
86-18 (e) The board shall give notice of the election and the
86-19 proposition to be voted on. The board shall publish notice of the
86-20 election at least one time in one or more newspapers with general
86-21 circulation within the boundaries of the priority groundwater
86-22 management [critical] area. The notice must be published before
86-23 the 30th day preceding the date set for the election.
86-24 (f) The ballots for the election shall be printed to provide
86-25 for voting for or against the proposition: "The inclusion of
87-1 __________ (briefly describe priority groundwater management
87-2 [critical] area) in the __________ District." If the district has
87-3 outstanding debts or taxes [issued bonds], the proposition shall
87-4 include the following language: "and assumption by the described
87-5 area of a proportional share of the debts or taxes [outstanding
87-6 indebtedness] of the district."
87-7 (g) Immediately after the election, the presiding judge of
87-8 each polling place shall deliver the returns of the election to the
87-9 board, and the board shall canvass the returns for the election
87-10 within the priority groundwater management [critical] area and
87-11 declare the results. If a majority of the voters in the priority
87-12 groundwater management [critical] area voting on the proposition
87-13 vote in favor of the proposition, the board shall declare that the
87-14 priority groundwater management [critical] area is added to the
87-15 district. If a majority of the voters in the priority groundwater
87-16 management [critical] area voting on the proposition vote against
87-17 adding the priority groundwater management [critical] area to the
87-18 district, the board shall declare that the priority groundwater
87-19 management [critical] area is not added to the district. The board
87-20 shall file a copy of the election results with the commission.
87-21 (h) If the voters approve adding the priority groundwater
87-22 management [critical] area to the district, the board of the
87-23 district to which the priority groundwater management [critical]
87-24 area is added shall provide reasonable representation on that board
87-25 compatible with the district's existing scheme of representation.
88-1 (i) If the proposition is defeated, another election to add
88-2 the priority groundwater management [critical] area to an existing
88-3 district may not be called before the first anniversary of the date
88-4 on which the election on the proposition was held.
88-5 SECTION 4.16. Subsections (b) and (c), Section 35.014, Water
88-6 Code, are amended to read as follows:
88-7 (b) The costs of an election to add a priority groundwater
88-8 management [critical] area to an existing district at which the
88-9 voters approve adding the priority groundwater management
88-10 [critical] area to the district shall be paid by the existing
88-11 district.
88-12 (c) The costs of an election to create a district or add a
88-13 priority groundwater management [critical] area to an existing
88-14 district at which the proposition fails shall be paid by the
88-15 commission.
88-16 SECTION 4.17. Section 35.015, Water Code, is amended to read
88-17 as follows:
88-18 Sec. 35.015. STATE ASSISTANCE. [(a) A political
88-19 subdivision located in or that has within its boundaries an area or
88-20 part of an area delineated as a critical area, and in which the
88-21 qualified voters fail to approve the creation of a district or to
88-22 join an existing district, shall not be eligible to receive any
88-23 financial assistance from the state under Chapter 15, 16, or 17 for
88-24 use within that portion of the critical area not covered by a
88-25 district.]
89-1 [(b)] A political subdivision located in an area delineated
89-2 as a priority groundwater management [critical] area, and in which
89-3 qualified voters approve the creation of a district or annexation
89-4 into an existing district, shall be given consideration to receive
89-5 financial assistance from the state under Chapter 17 for funds to
89-6 be used in addressing issues identified in the priority groundwater
89-7 management [critical] area report in the manner provided by
89-8 Sections 17.124 and 17.125[, except that the board is not required
89-9 to make the finding set out in Section 17.125(a)(2)].
89-10 SECTION 4.18. Section 35.017, Water Code, is amended to read
89-11 as follows:
89-12 Sec. 35.017. STATE-OWNED LAND. If state-owned land or a
89-13 portion of state-owned land is located in a priority groundwater
89-14 management [critical] area, the state agency that has management
89-15 and control over that land under the constitution or by statute may
89-16 elect by written agreement with the commission and the district to
89-17 include the state-owned land in the district. The agreement shall
89-18 be entered into as provided by the Texas Intergovernmental
89-19 Cooperation Act, Chapter 741, Government Code, and may include
89-20 provisions for the payment by the state agency of reasonable fees
89-21 to the district. If the state does not elect to enter into the
89-22 agreement to include the state-owned land in the district, the
89-23 state agency must establish a groundwater management plan that will
89-24 conserve, protect, and prevent the waste of groundwater on that
89-25 state-owned land.
90-1 SECTION 4.19. Chapter 35, Water Code, is amended by adding
90-2 Sections 35.018 and 35.019 to read as follows:
90-3 Sec. 35.018. REPORTS. (a) No later than January 31 of each
90-4 odd-numbered year, the commission in conjunction with the Texas
90-5 Water Development Board shall prepare and deliver to the governor,
90-6 the lieutenant governor, and the speaker of the house of
90-7 representatives a comprehensive report concerning activities during
90-8 the preceding two years relating to the designation of priority
90-9 groundwater management areas by the commission and the creation and
90-10 operation of districts.
90-11 (b) The report must include:
90-12 (1) the names and locations of all priority
90-13 groundwater management areas and districts created or attempted to
90-14 be created on or after November 5, 1985, the effective date of
90-15 Chapter 133 (H.B. No. 2), Acts of the 69th Legislature, Regular
90-16 Session, 1985;
90-17 (2) the authority under which each priority
90-18 groundwater management area and district was proposed for creation;
90-19 (3) a detailed analysis of each election held to
90-20 confirm the creation of a district, including analysis of election
90-21 results, possible reasons for the success or failure to confirm the
90-22 creation of a district, and the possibility for future voter
90-23 approval of districts in areas in which attempts to create
90-24 districts failed;
90-25 (4) a detailed analysis of the activities of each
91-1 district created, including those districts which are implementing
91-2 management plans certified under Section 36.1072;
91-3 (5) a report on audits performed on districts under
91-4 Section 36.302 and remedial actions taken under Section 36.303;
91-5 (6) recommendations for changes in this chapter and
91-6 Chapter 36 that will facilitate the creation of priority
91-7 groundwater management areas and the creation and operation of
91-8 districts;
91-9 (7) a report on educational efforts in newly
91-10 designated priority groundwater management areas; and
91-11 (8) any other information and recommendations that the
91-12 commission considers relevant.
91-13 (c)(1) If voters fail to create a groundwater district in a
91-14 priority groundwater management area or if voters fail to add the
91-15 priority groundwater management area to an existing groundwater
91-16 district, the report shall include recommendations for the future
91-17 management of the priority groundwater management area. The
91-18 recommendations may include but are not limited to the following:
91-19 (A) creation of a groundwater district by the
91-20 legislature;
91-21 (B) annexation of a priority groundwater
91-22 management area into an existing district by the legislature; or
91-23 (C) management of the priority groundwater
91-24 management area by the nearest regional office of the commission.
91-25 The commission may be authorized to:
92-1 (i) adopt spacing and annual per acre
92-2 pumping restrictions;
92-3 (ii) issue well permits in accordance with
92-4 Sections 36.113 and 36.1131;
92-5 (iii) prevent waste and protect the
92-6 quality of groundwater in accordance with Sections
92-7 36.001(8)(A)-(G);
92-8 (iv) levy administrative penalties for
92-9 violations; and
92-10 (v) collect fees in accordance with
92-11 Sections 36.206(a) and (b).
92-12 (2) If the commission is required by the legislature
92-13 to manage the priority groundwater management area, a new election
92-14 may not be called for three years from the date of the last
92-15 election.
92-16 Sec. 35.019. WATER AVAILABILITY. (a) The commissioners
92-17 court of a county in a priority groundwater management area may
92-18 adopt water availability requirements in an area where platting is
92-19 required if the court determines that the requirements are
92-20 necessary to prevent current or projected water use in the county
92-21 from exceeding the safe sustainable yield of the county's water
92-22 supply.
92-23 (b) The commissioners court of a county in a priority
92-24 groundwater management area may:
92-25 (1) require a person seeking approval of a plat
93-1 required by Subchapter A, Chapter 232, Local Government Code, to
93-2 show:
93-3 (A) compliance with the water availability
93-4 requirements adopted by the court under this section; and
93-5 (B) that an adequate supply of water of
93-6 sufficient quantity and quality is available to supply the number
93-7 of lots proposed for the platted area;
93-8 (2) adopt standards or formulas to determine whether
93-9 an adequate water supply exists for the platted area; and
93-10 (3) adopt procedures for submitting the information
93-11 necessary to determine whether an adequate water supply exists for
93-12 the platted area.
93-13 (c) The water availability requirements established by a
93-14 commissioners court under this section may require that:
93-15 (1) a person seeking approval of a plat or attempting
93-16 to sell a lot in a subdivision:
93-17 (A) notify a purchaser of a lot in the
93-18 subdivision if an approved water supply for the subdivision does
93-19 not exist; or
93-20 (B) if the person attempts to build a water
93-21 supply system to serve one or more lots within the subdivision:
93-22 (i) comply with federal, state, and local
93-23 law; and
93-24 (ii) establish an entity to construct and
93-25 operate the system; or
94-1 (2) a planned or operating water supply system serving
94-2 one or more lots within a subdivision be built and operated in
94-3 compliance with federal, state, and local laws and rules related to
94-4 public drinking water.
94-5 SECTION 4.20. Section 36.001, Water Code, is amended by
94-6 amending Subdivision (14) and adding Subdivisions (16) and (17) to
94-7 read as follows:
94-8 (14) "Priority groundwater management [Critical] area"
94-9 means an area designated and delineated by the commission under
94-10 Chapter 35 as an area experiencing or expected to experience
94-11 critical groundwater problems.
94-12 (16) "Loan fund" means the groundwater district loan
94-13 assistance fund created under Section 36.371.
94-14 (17) "Applicant" means a newly confirmed district
94-15 applying for a loan from the loan fund.
94-16 SECTION 4.21. Subchapter A, Chapter 36, Water Code, is
94-17 amended by adding Section 36.0015 to read as follows:
94-18 Sec. 36.0015. PURPOSE. In order to provide for the
94-19 conservation, preservation, protection, recharging, and prevention
94-20 of waste of groundwater, and of groundwater reservoirs or their
94-21 subdivisions, and to control subsidence caused by withdrawal of
94-22 water from those groundwater reservoirs or their subdivisions,
94-23 consistent with the objectives of Section 59, Article XVI, Texas
94-24 Constitution, groundwater conservation districts may be created as
94-25 provided by this chapter. Groundwater conservation districts
95-1 created as provided by this chapter are the state's preferred
95-2 method of groundwater management.
95-3 SECTION 4.22. Subsection (c), Section 36.012, Water Code, is
95-4 amended to read as follows:
95-5 (c) The boundaries of a district must be coterminous with or
95-6 inside the boundaries of a management area or a priority
95-7 groundwater management [critical] area.
95-8 SECTION 4.23. Subsection (d), Section 36.013, Water Code, is
95-9 amended to read as follows:
95-10 (d) If a part of the proposed district is not included
95-11 within either a management area or a priority groundwater
95-12 management [critical] area, the petition to create a district may
95-13 also contain a request to create a management area. A request to
95-14 create a management area must comply with the requirements for a
95-15 petition in Section 35.005, and may be acted on by the commission
95-16 separately from the petition to create the district.
95-17 SECTION 4.24. Subchapter B, Chapter 36, Water Code, is
95-18 amended by adding Section 36.0151 to read as follows:
95-19 Sec. 36.0151. CREATION OF DISTRICT FOR PRIORITY GROUNDWATER
95-20 MANAGEMENT AREA. (a) If the commission proposes that a district
95-21 be created under Section 35.012(d), it shall in its order creating
95-22 the district provide that temporary directors be appointed under
95-23 Section 36.016 and that an election be called by the temporary
95-24 directors to confirm the creation of the district and to elect
95-25 permanent directors.
96-1 (b) The commission shall notify the county commissioners
96-2 court of each county with territory in the district of the
96-3 district's creation as soon as practicable after issuing the order
96-4 creating the district.
96-5 SECTION 4.25. Section 36.016, Water Code, is amended to read
96-6 as follows:
96-7 Sec. 36.016. APPOINTMENT OF TEMPORARY DIRECTORS. (a) If
96-8 the commission grants a petition to create a district under Section
96-9 36.015 or after the commission dissolves a district's board under
96-10 Section 36.303, it shall appoint five temporary directors.
96-11 (b) If the commission creates a district under Section
96-12 36.0151, the county commissioners court or courts of the county or
96-13 counties that contain the area of the district shall, within 90
96-14 days after receiving notification by the commission under Section
96-15 36.0151(b), appoint five temporary directors, or more if the
96-16 district contains the territory of more than five counties, for the
96-17 district's board using the method provided by Section 36.0161. A
96-18 county commissioners court shall not make any appointments after
96-19 the expiration of the 90-day period. If fewer than five temporary
96-20 directors have been appointed at the expiration of the period, the
96-21 commission shall appoint additional directors so that the board has
96-22 at least five members.
96-23 (c) Temporary directors appointed under this section [who]
96-24 shall serve until the initial directors are elected and have
96-25 qualified for office or until the voters fail to approve the
97-1 creation of the district.
97-2 (d) [(b)] If an appointee of the commission or of a county
97-3 commissioners court fails to qualify or if a vacancy occurs in the
97-4 office of temporary director, the commission or the county
97-5 commissioners court, as appropriate, shall appoint an individual to
97-6 fill the vacancy.
97-7 (e) [(c)] As soon as all temporary directors have qualified,
97-8 the directors shall meet, take the oath of office, and elect a
97-9 chairman and vice chairman from among their membership. The
97-10 chairman shall preside at all meetings of the board and, in the
97-11 chairman's absence, the vice chairman shall preside.
97-12 SECTION 4.26. Subchapter B, Chapter 36, Water Code, is
97-13 amended by adding Section 36.0161 to read as follows:
97-14 Sec. 36.0161. METHOD FOR APPOINTING TEMPORARY DIRECTORS FOR
97-15 DISTRICT IN PRIORITY GROUNDWATER MANAGEMENT AREA. (a) If a
97-16 district in a priority groundwater management area is:
97-17 (1) contained within one county, the county
97-18 commissioners court of that county shall appoint five temporary
97-19 directors for the district;
97-20 (2) contained within two counties, the county
97-21 commissioners court of each county shall appoint at least one
97-22 temporary director, with the appointments of the three remaining
97-23 directors to be apportioned as provided by Subsection (b);
97-24 (3) contained within three counties, the county
97-25 commissioners court of each county shall appoint at least one
98-1 temporary director, with the appointments of the two remaining
98-2 directors to be apportioned as provided by Subsection (b);
98-3 (4) contained within four counties, the county
98-4 commissioners court of each county shall appoint at least one
98-5 temporary director, with the appointment of the remaining director
98-6 to be apportioned as provided by Subsection (b); or
98-7 (5) contained within five or more counties, the county
98-8 commissioners court of each county shall appoint one temporary
98-9 director.
98-10 (b)(1) In this subsection, "estimated groundwater use" means
98-11 the estimate of groundwater use in acre-feet developed by the
98-12 commission under Subsection (c) for the area of a county that is
98-13 within the district.
98-14 (2) The apportionment of appointments under Subsection
98-15 (a) shall be made by the commission so as to reflect, as closely as
98-16 possible, the proportion each county's estimated groundwater use
98-17 bears to the sum of the estimated groundwater use for the district
98-18 as determined under Subsection (c). The commission shall by rule
98-19 determine the method it will use to implement this subdivision.
98-20 (c) If a district for which temporary directors are to be
98-21 appointed is contained within two, three, or four counties, the
98-22 commission shall develop an estimate of annual groundwater use in
98-23 acre-feet for each county area within the district.
98-24 SECTION 4.27. Section 36.052, Water Code, is amended to read
98-25 as follows:
99-1 Sec. 36.052. OTHER LAWS NOT APPLICABLE. (a) Other laws
99-2 governing the administration or operations of districts created
99-3 under Section 52, Article III, or Section 59, Article XVI, Texas
99-4 Constitution, shall not apply to any district governed by this
99-5 chapter. This chapter prevails over any other law in conflict or
99-6 inconsistent with this chapter, except any special law governing a
99-7 specific district shall prevail over this chapter.
99-8 (b) Notwithstanding Subsection (a), the following provisions
99-9 prevail over a conflicting or inconsistent provision of a special
99-10 law that governs a specific district:
99-11 (1) Sections 36.107-36.108;
99-12 (2) Sections 36.159-36.161; and
99-13 (3) Subchapter I.
99-14 SECTION 4.28. Subchapter D, Chapter 36, Water Code, is
99-15 amended by amending Section 36.107 and adding Sections 36.1071,
99-16 36.1072, and 36.1073 to read as follows:
99-17 Sec. 36.107. RESEARCH [AND PLANNING]. [(a)] A district may
99-18 carry out any research projects deemed necessary by the board.
99-19 Sec. 36.1071. MANAGEMENT PLAN. (a) [(b)] Following notice
99-20 and hearing, the district shall, in coordination with surface water
99-21 management entities on a regional basis, develop a comprehensive
99-22 management plan which addresses the following management goals, as
99-23 applicable:
99-24 (1) providing the most efficient use of groundwater;
99-25 (2) controlling and preventing waste of groundwater;
100-1 (3) controlling and preventing subsidence;
100-2 (4) addressing conjunctive surface water management
100-3 issues; and
100-4 (5) addressing natural resource issues.
100-5 (b) A district management plan, or any amendments to a
100-6 district management plan, adopted after the Texas Water Development
100-7 Board approval of a regional water plan for the region in which the
100-8 district is located shall be consistent with the regional water
100-9 plan.
100-10 (c) The commission and the Texas Water Development Board
100-11 shall provide technical assistance to a district in the development
100-12 of the management plan required under Subsection (a) which may
100-13 include, if requested by the district, a preliminary review and
100-14 comment on the plan prior to final approval by the board. If such
100-15 review and comment by the commission is requested, the commission
100-16 shall provide comment not later than 30 days from the date the
100-17 request is received.
100-18 (d) The commission shall provide technical assistance to a
100-19 district during its initial operational phase.
100-20 (e) In the management plan described under Subsection (a),
100-21 the district shall:
100-22 (1) identify the performance standards and management
100-23 objectives under which the district will operate to achieve the
100-24 management goals identified under Subsection (a);
100-25 (2) specify, in as much detail as possible, the
101-1 actions, procedures, performance, and avoidance that are or may be
101-2 necessary to effect the plan, including specifications and proposed
101-3 rules;
101-4 (3) include estimates of the following:
101-5 (A) the existing total usable amount of
101-6 groundwater in the district;
101-7 (B) the amount of groundwater being used within
101-8 the district on an annual basis;
101-9 (C) the annual amount of recharge, if any, to
101-10 the groundwater resources within the district and how natural or
101-11 artificial recharge may be increased; and
101-12 (D) the projected water supply and demand for
101-13 water within the district; and
101-14 (4) address water supply needs in a manner that is not
101-15 in conflict with the appropriate approved regional water plan if a
101-16 regional water plan has been approved under Section 16.053 [for the
101-17 most efficient use of the groundwater, for controlling and
101-18 preventing waste of groundwater, and for controlling and preventing
101-19 subsidence. The plan may be reviewed annually but must be reviewed
101-20 by the board at least once every five years].
101-21 (f) [(c) The district shall specify in the management plan,
101-22 in as much detail as possible, the acts, procedures, performance,
101-23 and avoidance that are or may be necessary to effect the plan,
101-24 including specifications and proposed rules.] The district shall
101-25 adopt rules necessary to implement the management plan.
102-1 (g) The board shall adopt amendments to the management plan
102-2 as necessary. Amendments to the management plan shall be adopted
102-3 after notice and hearing and shall otherwise comply with the
102-4 requirements of this section.
102-5 Sec. 36.1072. TEXAS WATER DEVELOPMENT BOARD REVIEW AND
102-6 CERTIFICATION OF MANAGEMENT PLAN. (a) A [The] district shall, not
102-7 later than two years after the creation of the district or, if the
102-8 district required confirmation, after the election confirming the
102-9 district's creation, submit [file a copy of] the management plan
102-10 required under Section 36.1071 to [and the rules with] the
102-11 executive administrator for review and certification [commission].
102-12 (b) Within 60 days of receipt of a management plan adopted
102-13 under Section 36.1071, the executive administrator shall certify a
102-14 management plan if the plan is administratively complete. A
102-15 management plan is administratively complete when it contains the
102-16 information required to be submitted under Section 36.1071. The
102-17 executive administrator may determine that conditions justify
102-18 waiver of the requirements under Section 36.1071(e)(4).
102-19 (c) Once a determination that a management plan is
102-20 administratively complete has been made:
102-21 (1) the executive administrator may not revoke the
102-22 determination that a management plan is administratively complete;
102-23 (2) the executive administrator may request additional
102-24 information from the district if the information is necessary to
102-25 clarify, modify, or supplement previously submitted material; and
103-1 (3) a request for additional information does not
103-2 render the management plan incomplete.
103-3 (d) A management plan takes effect on certification by the
103-4 executive administrator or, if appealed, on certification by the
103-5 Texas Water Development Board.
103-6 (e) The board may review the plan annually and must review
103-7 and readopt the plan with or without revisions at least once every
103-8 five years.
103-9 (f) If the executive administrator does not certify the
103-10 management plan, the executive administrator shall provide to the
103-11 district, in writing, the reasons for the action. Not later than
103-12 the 180th day after the date a district receives notice that its
103-13 management plan has not been certified, the district may submit a
103-14 revised management plan for review and certification. The
103-15 executive administrator's decision may be appealed to the Texas
103-16 Water Development Board. The decision of the Texas Water
103-17 Development Board on whether to certify the management plan may not
103-18 be appealed. The commission shall not take enforcement action
103-19 against a district under Subchapter I until the later of the
103-20 expiration of the 180-day period or the date the Texas Water
103-21 Development Board has taken final action withholding certification
103-22 of a revised management plan.
103-23 Sec. 36.1073. AMENDMENT TO MANAGEMENT PLAN. Any amendment
103-24 to the management plan shall be submitted to the executive
103-25 administrator within 60 days following adoption of the amendment by
104-1 the district's board. The executive administrator shall review and
104-2 certify any amendment which substantially affects the management
104-3 plan in accordance with the procedures established under Section
104-4 36.1072.
104-5 SECTION 4.29. Subsection (a), Section 36.108, Water Code, is
104-6 amended to read as follows:
104-7 (a) If two or more districts are located within the
104-8 boundaries of the same management area, each district shall prepare
104-9 a comprehensive management plan as required by Section 36.1071
104-10 [36.107] covering that district's respective territory. On
104-11 completion of the plan, each district shall forward a copy of the
104-12 new revised management plan to the other districts in the
104-13 management area.
104-14 SECTION 4.30. Section 36.113, Water Code, is amended to read
104-15 as follows:
104-16 Sec. 36.113. PERMITS FOR WELLS. (a) A district shall
104-17 require permits for the drilling, equipping, or completing of
104-18 wells[,] or for substantially altering the size of wells or well
104-19 pumps.
104-20 (b) A district shall require that an application for a
104-21 permit be in writing and sworn to.
104-22 (c) A district may require that the following be included in
104-23 the permit application:
104-24 (1) the name and mailing address of the applicant and
104-25 the owner of the land on which the well will be located;
105-1 (2) if the applicant is other than the owner of the
105-2 property, documentation establishing the applicable authority to
105-3 construct and operate a well for the proposed use;
105-4 (3) a statement of the nature and purpose of the
105-5 proposed use and the amount of water to be used for each purpose;
105-6 (4) a water conservation plan or a declaration that
105-7 the applicant will comply with the district's management plan;
105-8 (5) the location of each well and the estimated rate
105-9 at which water will be withdrawn;
105-10 (6) a water well closure plan or a declaration that
105-11 the applicant will comply with well plugging guidelines and report
105-12 closure to the commission; and
105-13 (7) a drought contingency plan.
105-14 (d) Before granting or denying a permit, the district shall
105-15 consider whether:
105-16 (1) the application conforms to the requirements
105-17 prescribed by this chapter and is accompanied by the prescribed
105-18 fees;
105-19 (2) the proposed use of water unreasonably affects
105-20 existing groundwater and surface water resources;
105-21 (3) the proposed use of water is dedicated to any
105-22 beneficial use;
105-23 (4) the proposed use of water is consistent with the
105-24 district's certified water management plan;
105-25 (5) the applicant has agreed to avoid waste and
106-1 achieve water conservation; and
106-2 (6) the applicant has agreed that reasonable diligence
106-3 will be used to protect groundwater quality and that the applicant
106-4 will follow well plugging guidelines at the time of well closure.
106-5 (e) Permits may be issued subject to the rules promulgated
106-6 by the district and subject to terms and provisions with reference
106-7 to the drilling, equipping, completion, or alteration of wells or
106-8 pumps that may be necessary to [conserve the groundwater,] prevent
106-9 waste and achieve water conservation, minimize as far as
106-10 practicable the drawdown of the water table or the reduction of
106-11 artesian pressure, lessen interference between wells, or control
106-12 and prevent subsidence.
106-13 (f) A district may require that changes in the withdrawal
106-14 and use of groundwater under a permit not be made without the prior
106-15 approval of a permit amendment issued by the district.
106-16 SECTION 4.31. Subchapter D, Chapter 36, Water Code, is
106-17 amended by adding Section 36.1131 to read as follows:
106-18 Sec. 36.1131. ELEMENTS OF PERMIT. (a) A permit issued by
106-19 the district to the applicant under Section 36.113 shall state the
106-20 terms and provisions prescribed by the district.
106-21 (b) The permit may include:
106-22 (1) the name and address of the person to whom the
106-23 permit is issued;
106-24 (2) the location of the well;
106-25 (3) the date the permit is to expire if no well is
107-1 drilled;
107-2 (4) a statement of the purpose for which the well is
107-3 to be used;
107-4 (5) a requirement that the water withdrawn under the
107-5 permit be put to beneficial use at all times;
107-6 (6) the location of the use of the water from the
107-7 well;
107-8 (7) a water well closure plan or a declaration that
107-9 the applicant will comply with well plugging guidelines and report
107-10 closure to the commission;
107-11 (8) the conditions and restrictions, if any, placed on
107-12 the rate and amount of withdrawal;
107-13 (9) any conservation-oriented methods of drilling and
107-14 operating prescribed by the district;
107-15 (10) a drought contingency plan prescribed by the
107-16 district; and
107-17 (11) other terms and conditions as provided by Section
107-18 36.113.
107-19 SECTION 4.32. Section 36.117, Water Code, is amended to read
107-20 as follows:
107-21 Sec. 36.117. EXEMPTIONS; Exception; Limitations. (a) A
107-22 district may exempt wells from the requirements to obtain a
107-23 drilling permit, an operating permit, or any other permit required
107-24 by this chapter or the district's rules. A district may not
107-25 require a permit for:
108-1 (1) drilling or producing from a well either drilled,
108-2 completed, or equipped so that it is incapable of producing more
108-3 than 25,000 gallons of groundwater a day;
108-4 (2) the drilling or alteration of the size of a well
108-5 or to restrict the production of a well if the water produced or to
108-6 be produced from the well is used or to be used to supply the
108-7 domestic needs of 10 or fewer households and a person who is a
108-8 member of each household is either the owner of the well, a person
108-9 related to the owner or a member of the owner's household within
108-10 the second degree by consanguinity, or an employee of the owner;
108-11 (3) the drilling or alteration of the size of a well
108-12 or to restrict the production from the well if the water produced
108-13 or to be produced from the well is used or to be used to provide
108-14 water for feeding livestock and poultry connected with farming,
108-15 ranching, or dairy enterprises;
108-16 (4) water wells to supply water for hydrocarbon
108-17 production activities, regardless of whether those wells are
108-18 producing, that are associated with any well permitted by the
108-19 Railroad Commission of Texas drilled before September 1, 1985; or
108-20 (5) jet wells used for domestic needs.
108-21 (b) The board shall adopt rules determining the
108-22 applicability of Subsection (a)(3) to facilities used primarily for
108-23 feeding livestock.
108-24 (c) The district shall not deny the owner of a tract of
108-25 land, or his lessee, who has no well equipped to produce more than
109-1 25,000 gallons a day on the tract, either a permit to drill a well
109-2 on his land or the privilege to produce groundwater from his land,
109-3 subject to the rules of the district.
109-4 (d) A district may not restrict the production of any well
109-5 equipped to produce 25,000 gallons or less a day.
109-6 (e) Nothing in this chapter applies to wells drilled for
109-7 oil, gas, sulphur, uranium, or brine, or for core tests, or for
109-8 injection of gas, saltwater, or other fluid, or for any other
109-9 purpose, under permits issued by the Railroad Commission of Texas.
109-10 A district may not require a drilling permit for [to drill] a well
109-11 to supply water for drilling any [of these] wells permitted by the
109-12 Railroad Commission of Texas. Any well that ceases to be used for
109-13 these purposes and is then used as an ordinary water well is
109-14 subject to the rules of the district. Water wells drilled after
109-15 September 1, 1997, to supply water for hydrocarbon production
109-16 activities must meet the spacing requirements of the district
109-17 unless no space is available within 300 feet of the production well
109-18 or the central injection station.
109-19 (f) Water wells exempted under this section shall be
109-20 equipped and maintained so as to conform to the district's rules
109-21 requiring installation of casing, pipe, and fittings to prevent the
109-22 escape of groundwater from a groundwater reservoir to any reservoir
109-23 not containing groundwater and to prevent the pollution or harmful
109-24 alteration of the character of the water in any groundwater
109-25 reservoir.
110-1 (g) A district shall require water wells exempted under this
110-2 section to be registered with the district before drilling. All
110-3 exempt water wells shall be equipped and maintained so as to
110-4 conform to the district's rules requiring installation of casing,
110-5 pipe, and fittings to prevent the escape of groundwater from a
110-6 groundwater reservoir to any reservoir not containing groundwater
110-7 and to prevent the pollution or harmful alteration of the character
110-8 of the water in any groundwater reservoir.
110-9 (h) A well to supply water for a subdivision of land for
110-10 which a plat approval is required by law is not exempted under this
110-11 section.
110-12 SECTION 4.33. Subchapter D, Chapter 36, Water Code, is
110-13 amended by adding Section 36.122 to read as follows:
110-14 Sec. 36.122. TRANSFER OF GROUNDWATER OUT OF DISTRICT.
110-15 (a) A district may promulgate rules requiring a person to obtain a
110-16 permit from the district for the transfer of groundwater out of the
110-17 district to:
110-18 (1) increase, on or after March 2, 1997, the amount of
110-19 groundwater to be transferred under a continuing arrangement in
110-20 effect before that date; or
110-21 (2) transfer groundwater out of the district on or
110-22 after March 2, 1997, under a new arrangement.
110-23 (b) The district may impose a reasonable fee for processing
110-24 an application for a permit under this section.
110-25 (c) Before issuing a permit under this section, the district
111-1 must give notice of the application and hold a public hearing.
111-2 (d) In determining whether to issue a permit under this
111-3 section, the district shall consider:
111-4 (1) the availability of water in the district and in
111-5 the proposed receiving area during the period for which the water
111-6 supply is requested;
111-7 (2) the availability of feasible and practicable
111-8 alternative supplies to the applicant;
111-9 (3) the amount and purposes of use in the proposed
111-10 receiving area for which water is needed;
111-11 (4) the projected effect of the proposed transfer on
111-12 aquifer conditions, depletion, subsidence, or effects on existing
111-13 permit holders or other groundwater users within the district;
111-14 and
111-15 (5) the approved regional water plan and certified
111-16 district management plan.
111-17 (e) The district may limit a permit issued under this
111-18 section if conditions in Subsection (d) warrant the limitation.
111-19 (f) In addition to conditions provided by Section 36.1131,
111-20 the permit shall specify:
111-21 (1) the amount of water that may be transferred out of
111-22 the district; and
111-23 (2) the period for which the water may be
111-24 transferred.
111-25 (g) A district may not prohibit the export of groundwater if
112-1 the purchase was in effect on or before June 1, 1997.
112-2 (h) This section applies only to a transfer of water that is
112-3 initiated or increased after the effective date of this section.
112-4 (i) A district shall adopt rules as necessary to implement
112-5 this section.
112-6 SECTION 4.34. Subchapter E, Chapter 36, Water Code, is
112-7 amended by adding Sections 36.159, 36.160, and 36.161 to read as
112-8 follows:
112-9 Sec. 36.159. GROUNDWATER DISTRICT MANAGEMENT PLAN FUNDS.
112-10 The Texas Water Development Board may allocate funds from the water
112-11 assistance fund to a district to conduct initial data collections
112-12 under this chapter, to develop and implement a long-term management
112-13 plan under Section 36.1071, and to participate in regional water
112-14 plans.
112-15 Sec. 36.160. FUNDS. The Texas Water Development Board, the
112-16 commission, the Parks and Wildlife Department, the Texas
112-17 Agricultural Extension Service, and institutions of higher
112-18 education may allocate funds to carry out the objectives of this
112-19 chapter and Chapter 35, which include but are not limited to:
112-20 (1) conducting initial and subsequent studies and
112-21 surveys under Sections 36.106, 36.107, and 36.109;
112-22 (2) providing appropriate education in affected areas
112-23 identified in Section 35.007 relating to the problems and issues
112-24 concerning water management that may arise;
112-25 (3) processing priority groundwater management area
113-1 evaluations under this chapter and Chapter 35;
113-2 (4) providing technical and administrative assistance
113-3 to newly created districts under this chapter and Chapter 35;
113-4 (5) covering the costs of newspaper notices required
113-5 under Sections 35.009 and 36.014 and failed elections in accordance
113-6 with Sections 35.014(c), 36.017(h), and 36.019; and
113-7 (6) providing for assistance from the Parks and
113-8 Wildlife Department to the Texas Water Development Board or a
113-9 district for the purpose of assessing fish and wildlife resource
113-10 habitat needs as they may apply to overall management plan goals
113-11 and objectives of the district.
113-12 Sec. 36.161. ELIGIBILITY FOR FUNDING. (a) The Texas Water
113-13 Development Board may provide funds under Sections 36.159 and
113-14 36.160, Chapters 15, 16, and 17, and Subchapter L of this chapter
113-15 to a district if the Texas Water Development Board determines that
113-16 such funding will allow the district to comply or continue to
113-17 comply with provisions of this chapter.
113-18 (b) The Texas Water Development Board may, after notice and
113-19 hearing, discontinue funding described in Subsection (a) if the
113-20 Texas Water Development Board finds that the district is not using
113-21 the funds to comply with the provisions of this chapter.
113-22 (c) The Texas Water Development Board, when considering a
113-23 discontinuance under Subsection (b), shall give written notice of
113-24 the hearing to the district at least 20 days before the date set
113-25 for the hearing. The hearing shall be conducted in accordance with
114-1 Chapter 2001, Government Code, or the rules of the respective
114-2 agency. General notice of the hearing shall be given in accordance
114-3 with the rules of the agency.
114-4 (d) The Texas Water Development Board may delegate to the
114-5 State Office of Administrative Hearings the responsibility to
114-6 conduct a hearing under this section.
114-7 SECTION 4.35. Subchapter G, Chapter 36, Water Code, is
114-8 amended by adding Sections 36.206 and 36.207 to read as follows:
114-9 Sec. 36.206. DISTRICT FEES. (a) A temporary board may set
114-10 user fees to pay for the creation and initial operation of a
114-11 district, until such time as the district creation has been
114-12 confirmed and a permanent board has been elected by a majority vote
114-13 of the qualified voters voting in the district in an election
114-14 called for those purposes.
114-15 (b) The rate of fees set for crop or livestock production or
114-16 other agricultural uses shall be no more than 20 percent of the
114-17 rate applied to municipal uses.
114-18 Sec. 36.207. USE OF PERMIT FEES AUTHORIZED BY SPECIAL LAW.
114-19 A district may use funds obtained from permit fees collected
114-20 pursuant to the special law governing the district for any purpose
114-21 consistent with the district's certified water management plan
114-22 including, without limitation, making grants, loans, or contractual
114-23 payments to achieve, facilitate, or expedite reductions in
114-24 groundwater pumping or the development or distribution of
114-25 alternative water supplies.
115-1 SECTION 4.36. Subchapter I, Chapter 36, Water Code, is
115-2 amended to read as follows:
115-3 SUBCHAPTER I. PERFORMANCE REVIEW AND DISSOLUTION [OF DISTRICT]
115-4 Sec. 36.301. FAILURE TO SUBMIT A MANAGEMENT PLAN. If a
115-5 board fails to submit a management plan or to receive certification
115-6 of its management plan under Section 36.1072 or fails to submit or
115-7 receive certification of an amendment to the management plan under
115-8 Section 36.1073, the commission shall take appropriate action under
115-9 Section 36.303.
115-10 Sec. 36.302. LEGISLATIVE AUDIT REVIEW; DETERMINATION OF
115-11 WHETHER DISTRICT IS OPERATIONAL. (a) A district is subject to
115-12 review by the state auditor under the direction of the legislative
115-13 audit committee pursuant to Chapter 321, Government Code.
115-14 (b) The commission, the Texas Water Development Board, and
115-15 the Parks and Wildlife Department shall provide technical
115-16 assistance to the state auditor's office for the review.
115-17 (c) The state auditor shall make a determination of whether
115-18 a district is actively engaged in achieving the objectives of the
115-19 district's management plan based on an audit of the district's
115-20 performance under the plan.
115-21 (d) The state auditor shall conduct such audits following
115-22 the first anniversary of the initial certification of the plan by
115-23 the Texas Water Development Board under Section 36.1072 and
115-24 following the end of every five-year period thereafter.
115-25 (e) The state auditor shall report findings of the review to
116-1 the legislative audit committee and to the commission.
116-2 (f) If it is determined under Subsection (c) that the
116-3 district is not operational, the commission shall take appropriate
116-4 action under Section 36.303.
116-5 Sec. 36.303. ACTION BY COMMISSION. (a) If Section 36.301
116-6 or 36.302(f) applies, the commission, after notice and hearing in
116-7 accordance with Chapter 2001, Government Code, shall take action
116-8 the commission considers appropriate, including:
116-9 (1) issuing an order requiring the district to take
116-10 certain actions or to refrain from taking certain actions;
116-11 (2) dissolving the board in accordance with Sections
116-12 36.305 and 36.307;
116-13 (3) removing the district's taxing authority; or
116-14 (4) dissolving the district in accordance with
116-15 Sections 36.304, 36.305, and 36.308.
116-16 (b) In addition to actions identified under Subsection (a),
116-17 the commission may recommend to the legislature, based upon the
116-18 report required by Section 35.018, actions the commission deems
116-19 necessary to accomplish comprehensive management in the district.
116-20 Sec. 36.304 [36.301]. DISSOLUTION OF DISTRICT. (a) The
116-21 [After notice and hearing, the] commission may dissolve a district
116-22 that:
116-23 (1) is not operational, as determined under Section
116-24 36.302 [has been inactive for a period of three consecutive years];
116-25 and
117-1 (2) has no outstanding bonded indebtedness.
117-2 (b) A district composed of territory entirely within one
117-3 county may be dissolved even if the district [it] has outstanding
117-4 indebtedness that matures after the year in which the district is
117-5 dissolved, whereupon the commissioners court shall levy and collect
117-6 taxes on all taxable property in the district in an amount
117-7 sufficient to pay the principal of and interest on the indebtedness
117-8 when due. The taxes shall be levied and collected in the same
117-9 manner as county taxes.
117-10 [(c) A district is considered active if:]
117-11 [(1) the district has a board as required by
117-12 Subchapter D;]
117-13 [(2) the board holds regularly scheduled meetings and
117-14 has on file minutes of its meetings;]
117-15 [(3) the district has developed and filed with the
117-16 commission a management plan for the district;]
117-17 [(4) the district has copies of drillers' logs on
117-18 file;]
117-19 [(5) the district has on file well permits issued by
117-20 the district; and]
117-21 [(6) the district has on file annual district audits.]
117-22 Sec. 36.305 [36.302]. NOTICE OF HEARING FOR DISSOLUTION OF
117-23 BOARD OR DISTRICT. (a) The commission shall give notice of the
117-24 [dissolution] hearing for dissolution of a district or of a board
117-25 which briefly describes the reasons for the proceeding.
118-1 (b) The notice shall be published once each week for two
118-2 consecutive weeks before the day of hearing in a [some] newspaper
118-3 having general circulation in the county or counties in which the
118-4 district is located. The first publication shall be 30 days before
118-5 the day of the hearing.
118-6 (c) The commission shall give notice of the hearing by first
118-7 class mail addressed to the directors of the district according to
118-8 the last record on file with the executive director.
118-9 Sec. 36.306 [36.303]. INVESTIGATION. The executive director
118-10 shall investigate the facts and circumstances of any violations of
118-11 any rule or order of the commission or any provisions of this
118-12 chapter and shall prepare and file a written report with the
118-13 commission and district and include any actions the executive
118-14 director believes the commission should take under Section 36.303.
118-15 Sec. 36.307. ORDER OF DISSOLUTION OF BOARD. If the
118-16 commission enters an order to dissolve the board, the commission
118-17 shall notify the county commissioners court of each county which
118-18 contains territory in the district and the commission shall provide
118-19 that temporary directors be appointed under Section 36.016 to serve
118-20 until an election for a new board can be held under Section 36.017,
118-21 provided, however, that district confirmation shall not be required
118-22 for continued existence of the district and shall not be an issue
118-23 in the election [the district to be dissolved and the result of
118-24 the investigation shall be included in a written report].
118-25 [Sec. 36.304. ORDER OF DISSOLUTION. The commission may
119-1 enter an order dissolving the district at the conclusion of the
119-2 hearing if it finds that the district has performed none of the
119-3 functions for which it was created for a period of three
119-4 consecutive years before the day of the proceeding and that the
119-5 district has no outstanding bonded indebtedness.]
119-6 Sec. 36.308 [36.305]. CERTIFIED COPY OF ORDER. The
119-7 commission shall file a certified copy of the order of dissolution
119-8 of the district in the deed records of the county or counties in
119-9 which the district is located. If the district was created by a
119-10 special Act of the legislature, the commission shall file a
119-11 certified copy of the order of dissolution with the secretary of
119-12 state.
119-13 Sec. 36.309 [36.306]. APPEALS. [(a)] Appeals from any [a]
119-14 commission order [dissolving a district] shall be filed and heard
119-15 in the district court of any of the counties in which the land is
119-16 located.
119-17 [(b) The trial on appeal shall be de novo and the
119-18 substantial evidence rule shall not apply.]
119-19 Sec. 36.310 [36.307]. ASSETS ESCHEAT [TO STATE]. Upon the
119-20 dissolution of a district by the commission, all assets of the
119-21 district shall be sold at public auction and the proceeds given to
119-22 the county if it is a single-county district. If it is a
119-23 multicounty district, the proceeds shall be divided with the
119-24 counties in proportion to the surface land area in each county
119-25 served by the district [escheat to the State of Texas. The assets
120-1 shall be administered by the state treasurer and shall be disposed
120-2 of in the manner provided by Chapter 72, Property Code].
120-3 SECTION 4.37. Subsection (b), Section 36.325, Water Code, is
120-4 amended to read as follows:
120-5 (b) The petition must be signed by:
120-6 (1) a majority of the landowners in the territory;
120-7 (2) at least 50 landowners if the number of landowners
120-8 is more than 50; or
120-9 (3) the commissioners court of the county in which the
120-10 area is located if the area is identified as a priority groundwater
120-11 management [critical] area or includes the entire county. The
120-12 petition must describe the land by legal description or by metes
120-13 and bounds or by lot and block number if there is a recorded plat
120-14 of the area to be included in the district.
120-15 SECTION 4.38. Section 36.331, Water Code, is amended to read
120-16 as follows:
120-17 Sec. 36.331. ANNEXATION OF NONCONTIGUOUS TERRITORY. Land
120-18 not contiguous to the existing boundaries of a district may not be
120-19 added to or annexed to a district unless the land is located either
120-20 within the same management area, priority groundwater management
120-21 [critical] area, or a groundwater subdivision designated by the
120-22 commission or its predecessors.
120-23 SECTION 4.39. Chapter 36, Water Code, is amended by adding
120-24 Subchapter L to read as follows:
121-1 SUBCHAPTER L. GROUNDWATER DISTRICT LOAN ASSISTANCE FUND
121-2 Sec. 36.371. GROUNDWATER DISTRICT LOAN ASSISTANCE FUND.
121-3 (a) The groundwater district loan assistance fund is created, to
121-4 be funded by direct appropriation and by the Texas Water
121-5 Development Board from the water assistance fund.
121-6 (b) Repayments of loans shall be deposited in the water
121-7 assistance fund.
121-8 Sec. 36.372. FINANCIAL ASSISTANCE. (a) The loan fund may
121-9 be used by the Texas Water Development Board to provide loans to
121-10 newly confirmed districts and legislatively created districts that
121-11 do not require a confirmation election to pay for their creation
121-12 and initial operations.
121-13 (b) The Texas Water Development Board shall establish rules
121-14 for the use and administration of the loan fund.
121-15 Sec. 36.373. APPLICATION FOR ASSISTANCE. (a) In an
121-16 application to the Texas Water Development Board for financial
121-17 assistance from the loan fund, the applicant shall include:
121-18 (1) the name of the district and its board members;
121-19 (2) a citation of the law under which the district
121-20 operates and was created;
121-21 (3) a description of the initial operations;
121-22 (4) the total start-up cost of the initial operations;
121-23 (5) the amount of state financial assistance
121-24 requested;
121-25 (6) the plan for repaying the total cost of the loan;
122-1 and
122-2 (7) any other information the Texas Water Development
122-3 Board may require to perform its duties and protect the public
122-4 interest.
122-5 (b) The Texas Water Development Board may not accept an
122-6 application for a loan from the loan fund unless it is submitted in
122-7 affidavit form by the applicant's board. The Texas Water
122-8 Development Board shall prescribe the affidavit form in its rules.
122-9 (c) The rules implementing this section shall not restrict
122-10 or prohibit the Texas Water Development Board from requiring
122-11 additional factual material from an applicant.
122-12 Sec. 36.374. APPROVAL OF APPLICATION. The Texas Water
122-13 Development Board, by resolution, may approve an application if it
122-14 finds that:
122-15 (1) granting financial assistance to the applicant
122-16 will serve the public interest; and
122-17 (2) the revenue pledged by the applicant from district
122-18 taxes and fees and other sources will be sufficient to meet all the
122-19 obligations assumed by the applicant.
122-20 SECTION 4.40. Subsection (g), Section 151.318, Tax Code, is
122-21 amended to read as follows:
122-22 (g) Each person engaged in manufacturing, processing,
122-23 fabricating, or repairing tangible personal property for ultimate
122-24 sale is entitled to a refund or a reduction in the amount of tax
122-25 imposed by this chapter as provided by Subsection (h) for the
123-1 purchase of machinery, equipment, and replacement parts or
123-2 accessories with a useful life in excess of six months if the
123-3 equipment is:
123-4 (1) used or consumed in or during the actual
123-5 manufacturing, processing, fabrication, or repair of tangible
123-6 personal property for ultimate sale, and the use or consumption of
123-7 the property is necessary or essential to the manufacturing,
123-8 processing, fabrication, or repair operation, or to a pollution
123-9 control process; or
123-10 (2) specifically installed to:
123-11 (A) reduce water use and wastewater flow volumes
123-12 from the manufacturing, processing, fabrication, or repair
123-13 operation;
123-14 (B) reuse and recycle wastewater streams
123-15 generated within the manufacturing, processing, fabrication, or
123-16 repair operation; or
123-17 (C) treat wastewater from another industrial or
123-18 municipal source for the purpose of replacing existing freshwater
123-19 sources in the manufacturing, processing, fabrication, or repair
123-20 operation.
123-21 SECTION 4.41. Subchapter D, Chapter 5, Water Code, is
123-22 amended by adding Section 5.1035 to read as follows:
123-23 Sec. 5.1035. RULES REGARDING DRINKING-WATER STANDARDS.
123-24 Before adopting rules regarding statewide drinking-water standards,
123-25 the commission shall hold public meetings, if requested, at its
124-1 regional offices to allow municipalities, water supply
124-2 corporations, and other interested persons to submit data or
124-3 comments concerning the proposed drinking-water standards.
124-4 SECTION 4.42. Section 5.235, Water Code, is amended by
124-5 adding Subsection (o) to read as follows:
124-6 (o) A fee imposed under Subsection (j) of this section for
124-7 the use of saline tidal water for industrial processes shall be $1
124-8 per acre-foot of water diverted for the industrial process, not to
124-9 exceed a total fee of $5,000.
124-10 SECTION 4.43. Subsection (a), Section 26.121, Water Code
124-11 (effective until delegation of NPDES permit authority), is amended
124-12 to read as follows:
124-13 (a) Except as authorized by a rule, permit, or order issued
124-14 by the commission, no person may:
124-15 (1) discharge sewage, municipal waste, recreational
124-16 waste, agricultural waste, or industrial waste into or adjacent to
124-17 any water in the state;
124-18 (2) discharge other waste into or adjacent to any
124-19 water in the state which in itself or in conjunction with any other
124-20 discharge or activity causes, continues to cause, or will cause
124-21 pollution of any of the water in the state, unless the discharge
124-22 complies with the person's:
124-23 (A) certified water quality management plan
124-24 approved by the State Soil and Water Conservation Board as provided
124-25 by Section 201.026, Agriculture Code; or
125-1 (B) water pollution and abatement plan approved
125-2 by the commission; or
125-3 (3) commit any other act or engage in any other
125-4 activity which in itself or in conjunction with any other discharge
125-5 or activity causes, continues to cause, or will cause pollution of
125-6 any of the water in the state, unless the activity is under the
125-7 jurisdiction of the Parks and Wildlife Department, the General Land
125-8 Office, or the Railroad Commission of Texas, in which case this
125-9 subdivision does not apply.
125-10 SECTION 4.44. Subsection (a), Section 26.121, Water Code
125-11 (effective upon delegation of NPDES permit authority), is amended
125-12 to read as follows:
125-13 (a) Except as authorized by the commission, no person may:
125-14 (1) discharge sewage, municipal waste, recreational
125-15 waste, agricultural waste, or industrial waste into or adjacent to
125-16 any water in the state;
125-17 (2) discharge other waste into or adjacent to any
125-18 water in the state which in itself or in conjunction with any other
125-19 discharge or activity causes, continues to cause, or will cause
125-20 pollution of any of the water in the state, unless the discharge
125-21 complies with a person's:
125-22 (A) certified water quality management plan
125-23 approved by the State Soil and Water Conservation Board as provided
125-24 by Section 201.026, Agriculture Code; or
125-25 (B) water pollution and abatement plan approved
126-1 by the commission; or
126-2 (3) commit any other act or engage in any other
126-3 activity which in itself or in conjunction with any other discharge
126-4 or activity causes, continues to cause, or will cause pollution of
126-5 any of the water in the state, unless the activity is under the
126-6 jurisdiction of the Parks and Wildlife Department, the General Land
126-7 Office, or the Railroad Commission of Texas, in which case this
126-8 subdivision does not apply.
126-9 SECTION 4.45. Subchapter D, Chapter 51, Water Code, is
126-10 amended by adding Section 51.196 to read as follows:
126-11 Sec. 51.196. DEVELOPMENT OF UNDERGROUND WATER BY CERTAIN
126-12 DISTRICTS. A conservation and reclamation district created by
126-13 special law under the authority of Section 59, Article XVI, Texas
126-14 Constitution, and designated as a municipal water district to which
126-15 the administrative and taxing provisions applicable to districts
126-16 governed by this chapter apply, may develop or otherwise acquire
126-17 underground sources of water, notwithstanding a provision in that
126-18 district's special law otherwise prohibiting the development of
126-19 acquisition of underground water.
126-20 SECTION 4.46. Subchapter L, Chapter 51, Water Code, is
126-21 amended by adding Section 51.534 to read as follows:
126-22 Sec. 51.534. ADDITION OF LAND SUBJECT TO WATER QUALITY PLAN
126-23 TO DEFINED AREA. The procedures of Section 49.301 may be used to
126-24 add land to a defined area created under this subchapter. The land
126-25 must be included in the district and subject to a water quality
127-1 plan approved by the commission but is not required to be
127-2 contiguous to the defined area. Notwithstanding any law to the
127-3 contrary, the procedures of Section 49.301 shall apply to districts
127-4 operating under Chapter 49.
127-5 SECTION 4.47. Subsections (a) and (c), Section 401.002,
127-6 Local Government Code, are amended to read as follows:
127-7 (a) A home-rule municipality may prohibit the pollution or
127-8 degradation of and may police a stream, drain, recharge feature,
127-9 recharge area, or tributary that may constitute or recharge the
127-10 source of water supply of any municipality.
127-11 (c) The authority granted by this section may be exercised
127-12 inside [or outside] the municipality's boundaries or inside the
127-13 municipality's extraterritorial jurisdiction or outside the
127-14 municipality's extraterritorial jurisdiction only if required to
127-15 meet other state or federal requirements. The authority granted by
127-16 this section for the protection of recharge, recharge areas, or
127-17 recharge features of groundwater aquifers may be exercised outside
127-18 the municipality's boundaries and within the extraterritorial
127-19 jurisdiction provided the municipality exercising such authority
127-20 has a population greater than 750,000 and the groundwater
127-21 constitutes more than 75 percent of the municipality's source of
127-22 water supply.
127-23 SECTION 4.48. (a) Sections 35.010, 35.011, and 35.016,
127-24 Water Code, are repealed.
127-25 (b) Section 5.02, Chapter 133, Acts of the 69th Legislature,
128-1 Regular Session, 1985, is repealed.
128-2 SECTION 4.49. (a) In this section, "district" means a
128-3 groundwater conservation district created under Section 52, Article
128-4 III, or Section 59, Article XVI, Texas Constitution, that has the
128-5 authority to regulate the spacing of water wells, the production
128-6 from water wells, or both.
128-7 (b) Notwithstanding the time limitation under Subsection
128-8 (a), Section 36.1072, Water Code, as added by this Act, and
128-9 notwithstanding any provision to the contrary in prior law, a
128-10 district which was created or, if the district required a
128-11 confirmation election, a district whose creation was confirmed
128-12 before the effective date of this Act shall submit a management
128-13 plan for certification under Section 36.1072, Water Code, as added
128-14 by this Act, to the Texas Water Development Board not later than
128-15 September 1, 1998.
128-16 (c) Notwithstanding any provision to the contrary in prior
128-17 law and in addition to existing powers and duties, a district that
128-18 was created by special law, or whose creation was confirmed by an
128-19 election required by the special law, before the effective date of
128-20 this Act:
128-21 (1) in deciding whether or not to issue a permit and
128-22 in setting the terms of the permit, shall consider matters set
128-23 forth under Subsections (d) and (e), Section 36.113, Water Code, as
128-24 amended by this Act, including, without limitation, whether the
128-25 proposed use of water is consistent with the district's certified
129-1 water management plan; and
129-2 (2) may use funds obtained from permit fees collected
129-3 pursuant to the special law for any purpose consistent with the
129-4 district's certified water management plan including, without
129-5 limitation, making grants, loans, or contractual payments to
129-6 achieve, facilitate, or expedite reductions in groundwater pumping
129-7 or the development or distribution of alternative water supplies.
129-8 SECTION 4.50. An area designated as a critical area under
129-9 Chapter 35, Water Code, as it existed before the effective date of
129-10 this Act, or under other prior law, shall be known and referred to
129-11 as a priority groundwater management area on or after the effective
129-12 date of this Act.
129-13 SECTION 4.51. Not later than September 1, 1998, the Texas
129-14 Natural Resource Conservation Commission must, under Chapter 35,
129-15 Water Code, as amended by this Act, make all designations of
129-16 priority groundwater management areas for which critical area
129-17 reports were required to have been completed before the effective
129-18 date of this Act under Section 35.007, Water Code, as that section
129-19 existed immediately before the effective date of this Act.
129-20 ARTICLE 5. FINANCIAL ASSISTANCE FOR WATER NEEDS AND
129-21 CONSERVATION
129-22 SECTION 5.01. Section 15.431, Water Code, is amended by
129-23 amending Subsection (d) and adding Subsection (g) to read as
129-24 follows:
129-25 (d) Money appropriated by the legislature to be maintained
130-1 as principal in the fund, $10 million of the money transferred to
130-2 that fund by H.B. No. 2, Acts of the 69th Legislature, Regular
130-3 Session, 1985, and half of the money earned as interest on the
130-4 money held as principal in the agricultural trust fund shall be
130-5 maintained as principal. Money maintained as principal in the
130-6 agricultural trust fund may [not] be used by the board to make
130-7 conservation loans to borrower districts and loans to lender
130-8 districts for the purposes listed in Section 17.895 of this code.
130-9 Loans and conservation loans made under this subchapter are subject
130-10 to the provisions of Sections 17.896 through 17.903 of this code.
130-11 Repayments of principal and interest on loans and conservation
130-12 loans made under this subchapter shall be deposited in the
130-13 agricultural trust fund [spent for any purpose].
130-14 (g) In this section, "borrower district," "conservation
130-15 loan," "individual borrower," "lender district," and "loan" have
130-16 the meanings assigned those terms by Section 17.871 of this code.
130-17 SECTION 5.02. Section 16.189, Water Code, is amended to read
130-18 as follows:
130-19 Sec. 16.189. LEASE PAYMENTS. In leasing a state facility
130-20 for a term of years, the board shall require [annual] payments that
130-21 will recover over the lease period not less than the total of:
130-22 (1) all [the annual] principal and interest
130-23 requirements applicable to the debt incurred by the state in
130-24 acquiring the facility; and
130-25 (2) the state's [annual] cost for operation,
131-1 maintenance, and rehabilitation of the facility.
131-2 SECTION 5.03. Chapter 17, Water Code, is amended by adding
131-3 Subchapter L to read as follows:
131-4 SUBCHAPTER L. WATER FINANCIAL ASSISTANCE BOND PROGRAM
131-5 Sec. 17.951. DEFINITIONS. In this subchapter:
131-6 (1) "Fund" means the Texas Water Development Fund II.
131-7 (2) "Resolution" means any resolution or order
131-8 approved by the board authorizing the issuance of water financial
131-9 assistance bonds.
131-10 Sec. 17.952. ISSUANCE OF WATER FINANCIAL ASSISTANCE BONDS.
131-11 The board by resolution may provide for the issuance of water
131-12 financial assistance bonds, which shall be general obligation bonds
131-13 of the state, in an aggregate principal amount not to exceed the
131-14 principal amount authorized to be issued by Section 49-d-8, Article
131-15 III, Texas Constitution.
131-16 Sec. 17.953. CONDITIONS FOR ISSUANCE OF WATER FINANCIAL
131-17 ASSISTANCE BONDS. (a) Water financial assistance bonds may be
131-18 issued as various series and issues.
131-19 (b) Water financial assistance bonds may mature, serially or
131-20 otherwise, not later than 50 years after the date on which they are
131-21 issued.
131-22 (c) Water financial assistance bonds may be issued as bonds,
131-23 notes, or other obligations as permitted by law and may be in the
131-24 form and denominations and be issued in the manner and under the
131-25 terms, conditions, and details as provided by resolution.
132-1 (d) Water financial assistance bonds may be sold at public
132-2 or private sale at a price or prices and on terms determined by the
132-3 board.
132-4 (e) Water financial assistance bonds shall be signed and
132-5 executed as provided by resolution.
132-6 (f) Water financial assistance bonds may bear no interest or
132-7 bear interest at a rate or rates determined in accordance with law.
132-8 (g) Rates of interest on water financial assistance bonds
132-9 may be fixed, variable, floating, adjustable, or otherwise, as
132-10 determined by the board or determined pursuant to any contractual
132-11 arrangements approved by the board. The resolution may provide for
132-12 the payment of interest at any time or the periodic determination
132-13 of interest rates or interest rate periods.
132-14 Sec. 17.954. BOND ENHANCEMENT AGREEMENTS; PAYMENT OF
132-15 EXPENSES. (a) The board at any time and from time to time may
132-16 enter into one or more bond enhancement agreements that the board
132-17 determines to be necessary or appropriate to place the obligation
132-18 of the board, as represented by the water financial assistance
132-19 bonds, in whole or in part, on the interest rate, currency, cash
132-20 flow, or other basis desired by the board. A bond enhancement
132-21 agreement is an agreement for professional services and shall
132-22 contain the terms and conditions and be for the period that the
132-23 board approves.
132-24 (b) The fees and expenses of the board in connection with
132-25 the issuance of water financial assistance bonds and the providing
133-1 of financial assistance to political subdivisions may be paid from
133-2 money in the fund, provided that any payments due from the board
133-3 under a bond enhancement agreement, other than fees and expenses,
133-4 that relate to the payment of debt service on water financial
133-5 assistance bonds constitute payments of principal of and interest
133-6 on the water financial assistance bonds.
133-7 (c) Bond enhancement agreements may include, on terms and
133-8 conditions approved by the board, interest rate swap agreements;
133-9 currency swap agreements; forward payment conversion agreements;
133-10 agreements providing for payments based on levels of or changes in
133-11 interest rates or currency exchange rates; agreements to exchange
133-12 cash flows or a series of payments; agreements, including options,
133-13 puts, or calls, to hedge payment, currency, rate, spread, or other
133-14 exposure; or other agreements that further enhance the
133-15 marketability, security, or creditworthiness of water financial
133-16 assistance bonds.
133-17 Sec. 17.955. PERSONS DESIGNATED TO ACT AS AGENTS OF BOARD.
133-18 (a) In the resolution the board may delegate authority to one or
133-19 more officers, employees, or agents designated by the board to act
133-20 on behalf of the board during the time any series of water
133-21 financial assistance bonds are outstanding to:
133-22 (1) fix dates, prices, interest rates, amortization
133-23 schedules, redemption features, and interest payment periods;
133-24 (2) perform duties and obligations of the board under
133-25 a bond enhancement agreement; and
134-1 (3) perform other procedures specified in the
134-2 resolution.
134-3 (b) The person designated by the board may adjust the
134-4 interest on water financial assistance bonds and perform all duties
134-5 described in a bond enhancement agreement as necessary to permit
134-6 the water financial assistance bonds to be sold or resold at par in
134-7 conjunction with secondary market transactions.
134-8 Sec. 17.956. TEXAS WATER DEVELOPMENT FUND II. The fund is a
134-9 special fund in the state treasury, and all water financial
134-10 assistance bond proceeds shall be deposited in the state treasury
134-11 to the credit of the fund. The fund shall contain a "state
134-12 participation account," an "economically distressed areas program
134-13 account," and a "financial assistance account," and proceeds from
134-14 the sale of water financial assistance bonds issued for the purpose
134-15 of providing financial assistance to political subdivisions shall
134-16 be credited to such accounts as provided by resolution by the
134-17 board. By resolution, the board may create additional accounts
134-18 within the fund as the board determines are necessary or convenient
134-19 for the administration of the fund.
134-20 Sec. 17.957. STATE PARTICIPATION ACCOUNT. (a) The Texas
134-21 Water Development Fund II state participation account, referred to
134-22 as the "state participation account," is an account established
134-23 within the fund in the state treasury. Transfers shall be made
134-24 from this account as provided by this subchapter.
134-25 (b) The state participation account is composed of:
135-1 (1) money and assets attributable to water financial
135-2 assistance bonds designated by the board as issued for projects
135-3 described in Section 16.131;
135-4 (2) money from the sale, transfer, or lease of a
135-5 project described in Subdivision (1) that was acquired,
135-6 constructed, reconstructed, developed, or enlarged with money from
135-7 the state participation account;
135-8 (3) payments received under a bond enhancement
135-9 agreement with respect to water financial assistance bonds
135-10 designated by the board as issued for projects described in Section
135-11 16.131;
135-12 (4) investment income earned on money on deposit in
135-13 the state participation account; and
135-14 (5) any other funds, regardless of their source, that
135-15 the board directs be deposited to the credit of the state
135-16 participation account.
135-17 (c) Money on deposit in the state participation account may
135-18 be used by the board for projects described in Section 16.131 in
135-19 the manner that the board determines necessary for the
135-20 administration of the fund.
135-21 Sec. 17.958. ECONOMICALLY DISTRESSED AREAS PROGRAM ACCOUNT.
135-22 (a) The Texas Water Development Fund II economically distressed
135-23 areas program account, referred to as the "economically distressed
135-24 areas program account," is an account established within the fund
135-25 in the state treasury. Transfers shall be made from this account
136-1 as provided by this subchapter.
136-2 (b) The economically distressed areas program account is
136-3 composed of:
136-4 (1) money and assets attributable to water financial
136-5 assistance bonds designated by the board as issued for projects
136-6 described in Subchapter K;
136-7 (2) money provided by the federal government, the
136-8 state, political subdivisions, and private entities for the purpose
136-9 of paying debt service on water financial assistance bonds issued
136-10 for purposes provided by Subchapter K;
136-11 (3) payments received under a bond enhancement
136-12 agreement with respect to water financial assistance bonds
136-13 designated by the board as issued for purposes provided by
136-14 Subchapter K;
136-15 (4) investment income earned on money on deposit in
136-16 the economically distressed areas program account; and
136-17 (5) any other funds, regardless of their source, that
136-18 the board directs be deposited to the credit of the economically
136-19 distressed areas program account.
136-20 (c) Money on deposit in the economically distressed areas
136-21 program account may be used by the board for purposes provided by
136-22 Subchapter K in the manner that the board determines necessary for
136-23 the administration of the fund.
136-24 Sec. 17.959. FINANCIAL ASSISTANCE ACCOUNT. (a) The Texas
136-25 Water Development Fund II water financial assistance account,
137-1 referred to as the "financial assistance account," is an account
137-2 established within the fund in the state treasury. Transfers shall
137-3 be made from this account as provided by this subchapter.
137-4 (b) The financial assistance account is composed of:
137-5 (1) money and assets attributable to water financial
137-6 assistance bonds designated by the board as issued for purposes
137-7 described in Section 49-d-8, Article III, Texas Constitution, other
137-8 than for purposes described in Sections 17.957 and 17.958;
137-9 (2) payments received under a bond enhancement
137-10 agreement with respect to water financial assistance bonds
137-11 designated by the board as issued for purposes described in Section
137-12 49-d-8, Article III, Texas Constitution, other than for purposes
137-13 described in Sections 17.957 and 17.958;
137-14 (3) investment income earned on money on deposit in
137-15 the financial assistance account; and
137-16 (4) any other funds, regardless of their source, that
137-17 the board directs be deposited to the credit of the financial
137-18 assistance account.
137-19 (c) Money on deposit in the financial assistance account may
137-20 be used by the board for any one or more of the purposes described
137-21 in Section 49-d-8, Article III, Texas Constitution, other than for
137-22 purposes described in Sections 17.957 and 17.958, in the manner
137-23 that the board determines necessary for the administration of the
137-24 fund.
137-25 Sec. 17.960. BOND RESOLUTIONS. (a) In the resolution, the
138-1 board may make additional covenants with respect to water financial
138-2 assistance bonds and may provide for:
138-3 (1) the flow of funds;
138-4 (2) the establishment of accounts and subaccounts
138-5 within the fund that the board determines are necessary for the
138-6 administration of the fund;
138-7 (3) at the discretion of the board, the payment of
138-8 fees and expenses of the board in connection with providing
138-9 financial assistance to political subdivisions as the board
138-10 determines are necessary for the administration of the fund;
138-11 (4) the maintenance, investment, and management of
138-12 money within the fund and any accounts established by resolution by
138-13 the board; and
138-14 (5) any other provisions and covenants that the board
138-15 determines are necessary for the administration of the fund.
138-16 (b) The board may invest and reinvest money in the fund and
138-17 any account therein in any obligations or securities as provided by
138-18 the resolution or by rule adopted by the board.
138-19 (c) The board may adopt and have executed other proceedings,
138-20 agreements, or trust agreements or instruments necessary in the
138-21 issuance of water financial assistance bonds, including, without
138-22 limitation, bond enhancement agreements.
138-23 Sec. 17.961. TRANSFERS TO REVOLVING FUNDS. (a) In order to
138-24 implement and administer a revolving loan program established under
138-25 Title VI of the Federal Water Pollution Control Act (33 U.S.C.
139-1 Section 1381 et seq.), the board may direct the comptroller to
139-2 transfer amounts from the financial assistance account to the state
139-3 water pollution control revolving fund created by Section 15.601 to
139-4 provide financial assistance pursuant to this subchapter.
139-5 (b) In order to implement and administer a revolving loan
139-6 program established by any other federal legislation, including,
139-7 without limitation, Title XIV of the federal Public Health Service
139-8 Act, or any federal agency program under which an additional state
139-9 revolving fund, as defined in Section 15.602, has been established,
139-10 the board may direct the comptroller to transfer amounts from the
139-11 financial assistance account to such additional state revolving
139-12 fund to provide financial assistance pursuant to this subchapter.
139-13 (c) The board shall use the state water pollution control
139-14 revolving fund in accordance with Section 15.604(a)(4) and Section
139-15 603(d)(4), Federal Water Pollution Control Act (33 U.S.C. Section
139-16 1383), as a source of revenue to be deposited in accordance with
139-17 this subchapter for the payment of principal and interest on water
139-18 financial assistance bonds issued by the board, the proceeds of
139-19 which are deposited into the state water pollution control
139-20 revolving fund, and to make payments under a bond enhancement
139-21 agreement with respect to principal or interest on the water
139-22 financial assistance bonds.
139-23 (d) In the event amounts are transferred to any additional
139-24 state revolving fund, as defined in Section 15.602, pursuant to
139-25 Subsection (b), the board shall, to the extent permitted by the
140-1 federal legislation or federal agency program under which such
140-2 additional state revolving fund was established, use the additional
140-3 state revolving fund as a source of revenue to be deposited in
140-4 accordance with this subchapter for the payment of principal and
140-5 interest on water financial assistance bonds issued by the board,
140-6 the proceeds of which are deposited into the additional state
140-7 revolving fund, and to make payments under a bond enhancement
140-8 agreement with respect to principal or interest on the water
140-9 financial assistance bonds.
140-10 Sec. 17.962. STATE APPROVALS. (a) Water financial
140-11 assistance bonds may not be issued under this subchapter unless
140-12 such issuance has been reviewed and approved by the bond review
140-13 board.
140-14 (b) The proceedings relating to the water financial
140-15 assistance bonds issued under this subchapter are subject to review
140-16 and approval by the attorney general in the same manner and with
140-17 the same effect as provided by Chapter 656, Acts of the 68th
140-18 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
140-19 Civil Statutes).
140-20 (c) After approval by the attorney general of the
140-21 proceedings relating to water financial assistance bonds issued
140-22 under this subchapter, registration of the proceedings by the
140-23 comptroller, and delivery of the water financial assistance bonds
140-24 to the purchasers, the water financial assistance bonds are
140-25 incontestable and constitute general obligations of the state.
141-1 Sec. 17.963. PAYMENT OF BOARD OBLIGATIONS. (a) The board
141-2 shall cooperate with the comptroller to develop procedures for the
141-3 payment of principal and interest on water financial assistance
141-4 bonds and any obligation under a bond enhancement agreement, as the
141-5 same become due and owing.
141-6 (b) If there is not enough money in any account of the fund
141-7 available to pay the principal and interest on water financial
141-8 assistance bonds issued for such account, including money to make
141-9 payments by the board under a bond enhancement agreement with
141-10 respect to principal or interest on such water financial assistance
141-11 bonds, the board shall notify the comptroller of such occurrence,
141-12 and the comptroller shall transfer out of the first money coming
141-13 into the state treasury not otherwise appropriated by the
141-14 constitution the amount required to pay the obligations of the
141-15 board that are due and owing. The comptroller shall make the
141-16 transfers required by Section 49-d-8, Article III, Texas
141-17 Constitution, and this subchapter in the manner specified in the
141-18 resolution.
141-19 Sec. 17.964. ELIGIBLE SECURITY. Water financial assistance
141-20 bonds are eligible to secure deposits of public funds of the state
141-21 and political subdivisions of the state. Water financial
141-22 assistance bonds are lawful and sufficient security for deposits to
141-23 the extent of their face value.
141-24 Sec. 17.965. LEGAL INVESTMENTS. Water financial assistance
141-25 bonds are legal and authorized investments for:
142-1 (1) banks;
142-2 (2) savings banks;
142-3 (3) trust companies;
142-4 (4) savings and loan associations;
142-5 (5) insurance companies;
142-6 (6) fiduciaries;
142-7 (7) trustees;
142-8 (8) guardians; and
142-9 (9) sinking funds and other public funds of the state
142-10 and its agencies and of political subdivisions of the state.
142-11 Sec. 17.966. MUTILATED, LOST, OR DESTROYED BONDS. The board
142-12 may provide for the replacement of mutilated, lost, or destroyed
142-13 water financial assistance bonds.
142-14 Sec. 17.967. REFUNDING BONDS. (a) The board by resolution
142-15 may provide for the issuance of water financial assistance bonds to
142-16 refund outstanding bonds and water financial assistance bonds
142-17 issued under this chapter and federal contractual obligations
142-18 incurred under Section 49-d, Article III, Texas Constitution.
142-19 (b) The board may sell the refunding water financial
142-20 assistance bonds and use the proceeds to retire any of the
142-21 outstanding obligations described in Subsection (a), exchange the
142-22 refunding water financial assistance bonds for the outstanding
142-23 bonds or water financial assistance bonds, or refund any of the
142-24 outstanding obligations described in Subsection (a) in the manner
142-25 provided by any other applicable statute, including Chapter 503,
143-1 Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas
143-2 Civil Statutes), and Chapter 784, Acts of the 61st Legislature,
143-3 Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
143-4 Statutes).
143-5 Sec. 17.968. SALE OF POLITICAL SUBDIVISION BONDS BY THE
143-6 BOARD; USE OF PROCEEDS. (a) The board may sell or dispose of
143-7 political subdivision bonds purchased with money in the fund to any
143-8 person, including the Texas Water Resources Finance Authority, and
143-9 the board, in such manner as it shall determine, may apply the
143-10 proceeds of the sale of political subdivision bonds held by the
143-11 board to:
143-12 (1) pay debt service on water financial assistance
143-13 bonds issued under this subchapter; or
143-14 (2) provide financial assistance to political
143-15 subdivisions for any one or more of the purposes authorized by
143-16 Section 49-d-8, Article III, Texas Constitution.
143-17 (b) The board shall sell the political subdivision bonds at
143-18 the price and under the terms that it determines to be reasonable.
143-19 Sec. 17.969. TAX EXEMPT BONDS. Since the board is
143-20 performing an essential governmental function in the exercise of
143-21 the powers conferred on it by this chapter, water financial
143-22 assistance bonds issued under this subchapter and the interest and
143-23 income from the water financial assistance bonds, including any
143-24 profit made on the sale of water financial assistance bonds, and
143-25 all fees, charges, gifts, grants, revenues, receipts, and other
144-1 money received or pledged to pay or secure the payment of water
144-2 financial assistance bonds are free from taxation and assessments
144-3 of every kind by this state and any city, county, district,
144-4 authority, or other political subdivision of this state.
144-5 Sec. 17.970. ENFORCEMENT BY MANDAMUS. Payment of water
144-6 financial assistance bonds and obligations incurred under bond
144-7 enhancement agreements and performance of official duties
144-8 prescribed by Section 49-d-8, Article III, Texas Constitution, and
144-9 this subchapter may be enforced in a court of competent
144-10 jurisdiction by mandamus or other appropriate proceedings.
144-11 Sec. 17.971. SUBCHAPTER CUMULATIVE OF OTHER LAWS. (a) This
144-12 subchapter is cumulative of other laws on the subject, and the
144-13 board may use provisions of other applicable laws in the issuance
144-14 of water financial assistance bonds and the execution of bond
144-15 enhancement agreements, but this subchapter is wholly sufficient
144-16 authority for the issuance of water financial assistance bonds, the
144-17 execution of bond enhancement agreements, and the performance of
144-18 all other acts and procedures authorized by this subchapter.
144-19 (b) In addition to other authority granted by this
144-20 subchapter, the board may exercise the authority granted to the
144-21 governing body of an issuer with regard to the issuance of
144-22 obligations under Chapter 656, Acts of the 68th Legislature,
144-23 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
144-24 Statutes).
144-25 (c) In exercising the powers granted to the board under this
145-1 subchapter, the board may exercise any powers granted to it under
145-2 this chapter and Chapter 16 including the powers described in
145-3 Subchapters D, E, F, G, and K, notwithstanding any provision in
145-4 this chapter or Chapter 16 that may be inconsistent with or in
145-5 conflict with the provisions of this subchapter as a result of the
145-6 establishment of the fund as a fund separate and distinct from the
145-7 existing Texas Water Development Fund, it being the intent of the
145-8 legislature that the financial assistance made available to
145-9 political subdivisions under this subchapter, in pursuance of the
145-10 authority granted by Section 49-d-8, Article III, Texas
145-11 Constitution, be provided by the board in the manner the board
145-12 deems necessary to achieve the purposes of Section 49-d-8, Article
145-13 III, Texas Constitution, and notwithstanding any other existing
145-14 provisions in this chapter or Chapter 16, the provisions of this
145-15 chapter and Chapter 16 shall be inclusive of the provisions of this
145-16 subchapter and Section 49-d-8, Article III, Texas Constitution.
145-17 SECTION 5.04. Subdivision (7), Section 17.001, Water Code,
145-18 is amended to read as follows:
145-19 (7) "Water supply project" means:
145-20 (A) any engineering undertaking or work to
145-21 conserve and develop [surface or subsurface] water resources of the
145-22 state, including the control, storage, and preservation of its
145-23 storm water and floodwater and the water of its rivers and streams
145-24 for all useful and lawful purposes by the acquisition, improvement,
145-25 extension, or construction of dams, reservoirs, brush control,
146-1 precipitation enhancement, desalinization, and other water storage
146-2 and conservation projects, which may include flood storage,
146-3 including underground storage projects, filtration and water
146-4 treatment plants, including any system necessary to transport water
146-5 from storage to points of distribution or from storage to
146-6 filtration and treatment plants, including facilities for
146-7 transporting water therefrom to wholesale purchasers or to retail
146-8 purchasers as authorized by Section 17.072(c) of this code, by the
146-9 acquisition, by purchase of rights in [underground] water, by the
146-10 drilling of wells, or for any one or more of these purposes or
146-11 methods; [or]
146-12 (B) any engineering undertaking or work outside
146-13 the state to provide for the maintenance and enhancement of the
146-14 quality of water by eliminating saline inflow through well pumping
146-15 and deep well injection of brine if such undertaking or work
146-16 results in water being available for use in or for the benefit of
146-17 Texas;
146-18 (C) any undertaking or work by Texas political
146-19 subdivisions to conserve, convey, or develop water resources in
146-20 areas outside Texas if such undertaking or work results in water
146-21 being available for use in or for the benefit of Texas; or
146-22 (D) a channel storage reservoir located on an
146-23 international boundary between Texas and Mexico that develops the
146-24 water resources of Texas and the research, planning, and actions
146-25 necessary to obtain regulatory authority at the local, state, and
147-1 federal level.
147-2 SECTION 5.05. Section 17.001, Water Code, is amended by
147-3 amending Subdivision (17) and adding Subdivision (25) to read as
147-4 follows:
147-5 (17) "Financial assistance" means any loan of funds
147-6 from the water supply account, the water quality enhancement
147-7 account, or the flood control account to a political subdivision
147-8 for construction of a water supply project, including projects
147-9 referenced in the state water plan, treatment works, or flood
147-10 control measures through the purchase of bonds or other obligations
147-11 of the political subdivision, and any loan of funds the source of
147-12 which is the proceeds from water financial assistance bonds.
147-13 (25) "Water financial assistance bonds" means the
147-14 Texas Water Development Bonds authorized to be issued by Section
147-15 49-d-8, Article III, Texas Constitution, and dedicated to use for
147-16 the purposes described in that section.
147-17 SECTION 5.06. Section 17.011, Water Code, is amended by
147-18 adding Subsection (c) to read as follows:
147-19 (c) Notwithstanding any other provision of this section, the
147-20 board by resolution may issue water financial assistance bonds for
147-21 any one or more of the purposes described in Section 49-d-8,
147-22 Article III, Texas Constitution, in an aggregate principal amount
147-23 not to exceed the amount of bonds authorized by Section 49-d-8,
147-24 Article III, Texas Constitution, in accordance with the provisions
147-25 of Subchapter L.
148-1 SECTION 5.07. Section 17.0111, Water Code, is amended to
148-2 read as follows:
148-3 Sec. 17.0111. DEDICATION OF CERTAIN BONDS. No more than
148-4 $250 million in principal [Fifty percent of the] amount of bonds
148-5 authorized by Article III, Section 49-d-7, of the Texas
148-6 Constitution, and issued under either that section or Article III,
148-7 Section 49-d-8, of the Texas Constitution, may be [is] dedicated to
148-8 the purposes provided by Subchapter K [of this chapter].
148-9 SECTION 5.08. Section 17.182, Water Code, is amended to read
148-10 as follows:
148-11 Sec. 17.182. PROCEEDS FROM SALE. Unless used to pay debt
148-12 service on bonds issued under this chapter, the proceeds from the
148-13 sale of political subdivision bonds held by the board either shall
148-14 be credited to the account from which financial assistance was made
148-15 to the political subdivision, except that accrued interest shall be
148-16 credited to the interest and sinking fund, or shall be deposited to
148-17 the credit of the Texas Water Development Fund II, established
148-18 within the state treasury pursuant to Section 49-d-8, Article III,
148-19 Texas Constitution. However, no such proceeds shall be deposited
148-20 to the credit of the Texas Water Development Fund II unless the
148-21 executive administrator certifies to the board that the transfer of
148-22 such proceeds into the Texas Water Development Fund II will not
148-23 cause the board, in the fiscal year the transfer is made, to direct
148-24 the comptroller to transfer out of the first money coming into the
148-25 state treasury during that fiscal year funds sufficient for the
149-1 payment of principal of or interest on water development bonds,
149-2 other than water development bonds issued for the purposes
149-3 described in Subsection (e), Section 49-d-7, Article III, Texas
149-4 Constitution, coming due in that fiscal year.
149-5 SECTION 5.09. Section 17.278, Water Code, is amended to read
149-6 as follows:
149-7 Sec. 17.278. FINDINGS REGARDING PERMITS. If an application
149-8 includes a proposal for a wastewater treatment plant, the board may
149-9 not deliver funds for the wastewater treatment plant until the
149-10 applicant has obtained a permit for the construction and operation
149-11 of the plant and approval of the plans and specifications for the
149-12 plant from the commission. If an application includes a proposal
149-13 for a wastewater treatment plant that is located outside the
149-14 jurisdiction of this state and that is not subject to the
149-15 permitting authority of the commission, the board may not deliver
149-16 funds for the wastewater treatment plant until after the board
149-17 reviews the plans and specifications in coordination with the
149-18 commission and finds that the wastewater treatment plant is capable
149-19 of producing effluent that will meet federal and Texas-approved
149-20 water quality standards and if effluent produced will result in
149-21 water being available for use in or for the benefit of Texas.
149-22 SECTION 5.10. Sections 44.007 through 44.010, Agriculture
149-23 Code, are amended to read as follows:
149-24 Sec. 44.007. LINKED DEPOSIT PROGRAM. (a) The board shall
149-25 establish a linked deposit program to encourage commercial lending
150-1 for the enhanced production, processing, and marketing of certain
150-2 agricultural crops and for the financing [purchase] of water
150-3 conservation projects or equipment for agricultural production
150-4 purposes.
150-5 (b) The board shall promulgate rules for the loan portion of
150-6 the linked deposit program. The rules must include:
150-7 (1) a list of the categories of crops customarily
150-8 grown in Texas;
150-9 (2) a list of crops that are alternative agricultural
150-10 crops;
150-11 (3) a list of crops the production of which has
150-12 declined markedly because of natural disasters; and
150-13 (4) identification of projects and [the] types of
150-14 equipment considered as water conservation projects or equipment
150-15 for agricultural production purposes.
150-16 (c) In order to participate in the linked deposit program,
150-17 an eligible lending institution may solicit loan applications from
150-18 eligible borrowers.
150-19 (d) After reviewing an application and determining that the
150-20 applicant is eligible and creditworthy, the eligible lending
150-21 institution shall send the application for a linked deposit loan to
150-22 the board or the administrator of the Texas Agricultural Finance
150-23 Authority.
150-24 (e) The eligible lending institution shall certify the
150-25 interest rate applicable to the specific eligible borrower and
151-1 attach it to the application sent to the board or the administrator
151-2 of the Texas Agricultural Finance Authority.
151-3 (f) After reviewing each linked deposit loan application,
151-4 the board shall recommend to the comptroller [state treasurer] the
151-5 acceptance or rejection of the application.
151-6 (g) After acceptance of the application, the comptroller
151-7 [state treasurer] shall place a linked deposit with the applicable
151-8 eligible lending institution for the period the comptroller
151-9 [treasurer] considers appropriate. The comptroller [state
151-10 treasurer] may not place a deposit for a period extending beyond
151-11 the state fiscal biennium in which it is placed. Subject to the
151-12 limitation described by Section 44.010 of this chapter, the
151-13 comptroller [treasurer] may place time deposits at an interest rate
151-14 described by Section 44.001(5)(A) of this chapter, notwithstanding
151-15 any order of the State Depository Board to the contrary.
151-16 (h) Before the placing of a linked deposit, the eligible
151-17 lending institution and the state, represented by the comptroller
151-18 [state treasurer] and the board, shall enter into a written deposit
151-19 agreement containing the conditions on which the linked deposit is
151-20 made.
151-21 (i) If a lending institution holding linked deposits ceases
151-22 to be a state depository, the comptroller [state treasurer] may
151-23 withdraw the linked deposits.
151-24 (j) The board may adopt rules that create a procedure for
151-25 determining priorities for loans granted under this chapter. Each
152-1 rule adopted must state the policy objective of the rule. The
152-2 policy objectives of the rules may include preferences to:
152-3 (1) achieve adequate geographic distribution of loans;
152-4 (2) assist certain industries;
152-5 (3) encourage certain practices including water
152-6 conservation; and
152-7 (4) encourage value-added processing of agricultural
152-8 products.
152-9 Sec. 44.008. COMPLIANCE. (a) On accepting a linked
152-10 deposit, an eligible lending institution must loan money to
152-11 eligible borrowers in accordance with the deposit agreement and
152-12 this chapter. The eligible lending institution shall forward a
152-13 compliance report to the board.
152-14 (b) The board shall monitor compliance with this chapter and
152-15 inform the comptroller [state treasurer] of noncompliance on the
152-16 part of an eligible lending institution.
152-17 Sec. 44.009. STATE LIABILITY PROHIBITED. The state is not
152-18 liable to an eligible lending institution for payment of the
152-19 principal, interest, or any late charges on a loan made to an
152-20 eligible borrower. A delay in payment or default on a loan by an
152-21 eligible borrower does not affect the validity of the deposit
152-22 agreement. Linked deposits are not an extension of the state's
152-23 credit within the meaning of any state constitutional prohibition.
152-24 Sec. 44.010. LIMITATIONS IN PROGRAM. (a) At any one time,
152-25 not more than $15 [$5] million, of which $10 million may only be
153-1 used to finance water conservation projects, may be placed in
153-2 linked deposits under this chapter.
153-3 (b) The maximum amount of a loan under this chapter to
153-4 process and market Texas agricultural crops is $500,000. The
153-5 maximum amount of a loan under this chapter to produce alternative
153-6 agricultural crops in this state is $250,000. The maximum amount
153-7 of a loan under this chapter to finance [purchase] water
153-8 conservation projects or equipment for agricultural production
153-9 purposes is $250,000.
153-10 (c) A loan granted pursuant to this chapter must be applied
153-11 to the purchase or lease of land, equipment, seed, fertilizer,
153-12 direct marketing facilities, or processing facilities, or to
153-13 payment for professional services.
153-14 (d) A loan granted pursuant to this chapter, when used to
153-15 finance eligible water conservation projects or equipment, may be
153-16 applied to existing debt resulting from the financing of water
153-17 conservation projects or equipment for agricultural purposes as
153-18 defined by board rule.
153-19 SECTION 5.11. Subchapter B, Chapter 11, Tax Code, is amended
153-20 by adding Section 11.32 to read as follows:
153-21 Sec. 11.32. CERTAIN WATER CONSERVATION INITIATIVES. The
153-22 governing body of a taxing unit by official action of the governing
153-23 body adopted in the manner required by law for official actions may
153-24 exempt from taxation part or all of the assessed value of property
153-25 on which approved water conservation initiatives have been
154-1 implemented. For purposes of this section, approved water
154-2 conservation initiatives shall be designated pursuant to an
154-3 ordinance or other law adopted by the governing unit.
154-4 SECTION 5.12. Section 2155.444, Government Code, is amended
154-5 by adding Subsection (d) to read as follows:
154-6 (d) The commission and all state agencies making purchase of
154-7 vegetation for landscaping purposes, including plants, shall give
154-8 preference to Texas vegetation native to the region if the cost to
154-9 the state is not greater and the quality is not inferior.
154-10 SECTION 5.13. Subchapter E, Chapter 13, Water Code, is
154-11 amended by adding Section 13.143 to read as follows:
154-12 Sec. 13.143. NOTICE OF WHOLESALE WATER SUPPLY CONTRACT. A
154-13 district or authority created under Section 52, Article III, or
154-14 Section 59, Article XVI, Texas Constitution, a retail public
154-15 utility, a wholesale water service, or other person providing a
154-16 retail public utility with a wholesale water supply shall provide
154-17 the commission with a certified copy of any wholesale water supply
154-18 contract with a retail public utility within 30 days after the date
154-19 of the execution of the contract. The submission must include the
154-20 amount of water being supplied, term of the contract, consideration
154-21 being given for the water, purpose of use, location of use, source
154-22 of supply, point of delivery, limitations on the reuse of water,
154-23 and any other condition or agreement relating to the contract.
154-24 ARTICLE 6. SMALL COMMUNITIES ASSISTANCE
154-25 SECTION 6.01. Section 5.311, Water Code, is amended to read
155-1 as follows:
155-2 Sec. 5.311. DELEGATION OF RESPONSIBILITY. (a) The
155-3 commission may delegate to an administrative law judge of the State
155-4 Office of Administrative Hearings the responsibility to hear any
155-5 matter before the commission and to issue interlocutory orders
155-6 related to interim rates under Chapter 13.
155-7 (b) Except as provided in Subsection (a), the [The]
155-8 administrative law judge shall report to the commission on the
155-9 hearing in the manner provided by law.
155-10 SECTION 6.02. Subdivisions (11), (21), and (24), Section
155-11 13.002, Water Code, are amended to read as follows:
155-12 (11) "Member" means a person who holds a membership in
155-13 a water supply or sewer service corporation and [who either
155-14 receives water or sewer utility service from the corporation or] is
155-15 a record owner of a fee simple title to property in an area served
155-16 by a water supply or sewer service corporation or a person who is
155-17 granted a membership and who either currently receives or will be
155-18 eligible to receive water or sewer utility service from the
155-19 corporation. In determining member control of a water supply or
155-20 sewer service corporation, a person is entitled to only one vote
155-21 regardless of the number of memberships the person owns.
155-22 (21) "Service" means any act [done, rendered, or]
155-23 performed, anything furnished or supplied, and any facilities or
155-24 lines committed or [facility] used[, furnished, or supplied] by a
155-25 retail public utility in the performance of its duties under this
156-1 chapter to its patrons, employees, other retail public utilities,
156-2 and the public, as well as the interchange of facilities between
156-3 two or more retail public utilities.
156-4 (24) "Water supply or sewer service corporation" means
156-5 a nonprofit[, member-owned, member-controlled] corporation
156-6 organized and operating under Chapter 76, Acts of the 43rd
156-7 Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
156-8 Texas Civil Statutes) that provides potable water service or sewer
156-9 service for compensation and that has adopted and is operating in
156-10 accordance with by-laws or articles of incorporation which ensure
156-11 that it is member-owned and member-controlled. The term does not
156-12 include a corporation that provides retail water or sewer service
156-13 to a person who is not a member, except that the corporation may
156-14 provide retail water or sewer service to a person who is not a
156-15 member if the person only builds on or develops property to sell to
156-16 another and the service is provided on an interim basis before the
156-17 property is sold.
156-18 SECTION 6.03. Section 13.181, Water Code, is amended to read
156-19 as follows:
156-20 Sec. 13.181. POWER TO ENSURE COMPLIANCE; RATE REGULATION.
156-21 (a) Except for the provisions of Section 13.192, this subchapter
156-22 shall apply only to a utility and shall not be applied to
156-23 municipalities, counties, districts, or water supply or sewer
156-24 service corporations.
156-25 (b) Subject to this chapter, the commission has all
157-1 authority and power of the state to ensure compliance with the
157-2 obligations of utilities under this chapter. For this purpose the
157-3 regulatory authority may fix and regulate rates of utilities,
157-4 including rules and regulations for determining the classification
157-5 of customers and services and for determining the applicability of
157-6 rates. A rule or order of the regulatory authority may not
157-7 conflict with the rulings of any federal regulatory body. [Except
157-8 Section 13.192, this subchapter shall apply only to a utility and
157-9 shall not be applied to municipalities, counties, districts, or
157-10 water supply or sewer service corporations.] The commission may
157-11 adopt rules which authorize a utility which is permitted under
157-12 Section 13.242(c) to provide service without a certificate of
157-13 public convenience and necessity to request or implement a rate
157-14 increase and operate according to rules, regulations, and standards
157-15 of service other than those otherwise required under this chapter
157-16 provided that rates are just and reasonable for customers and the
157-17 utility and that service is safe, adequate, efficient, and
157-18 reasonable.
157-19 SECTION 6.04. Section 13.183, Water Code, is amended by
157-20 adding Subsection (c) to read as follows:
157-21 (c) To ensure that retail customers receive a higher quality
157-22 or more reliable water or sewer service, to encourage
157-23 regionalization, or to maintain financially stable and technically
157-24 sound utilities, the regulatory authority may develop methodologies
157-25 for water or sewer rates based on factors other than rate of return
158-1 and those specified in Section 13.185. Overall revenues determined
158-2 pursuant to an alternate methodology developed under this section
158-3 must provide revenues to the utility that satisfy the requirements
158-4 of Subsection (a). In determining to use alternate ratemaking
158-5 methodologies, the regulatory authority shall assure that rates,
158-6 operations, and services are just and reasonable to the consumers
158-7 and to the utilities.
158-8 SECTION 6.05. Subsection (a), Section 13.184, Water Code, is
158-9 amended to read as follows:
158-10 (a) Unless the commission establishes alternate rate
158-11 methodologies in accordance with Section 13.183(c), the commission
158-12 [The regulatory authority] may not prescribe any rate that will
158-13 yield more than a fair return on the invested capital used and
158-14 useful in rendering service to the public. The governing body of a
158-15 municipality exercising its original jurisdiction over rates and
158-16 services may use alternate ratemaking methodologies established by
158-17 ordinance or by commission rule in accordance with Section
158-18 13.183(c). Unless the municipal regulatory authority uses
158-19 alternate ratemaking methodologies established by ordinance or by
158-20 commission rule in accordance with Section 13.183(c), it may not
158-21 prescribe any rate that will yield more than a fair return on the
158-22 invested capital used and useful in rendering service to the
158-23 public.
158-24 SECTION 6.06. Subsection (a), Section 13.185, Water Code, is
158-25 amended to read as follows:
159-1 (a) Unless alternate methodologies are adopted as provided
159-2 in Sections 13.183(c) and 13.184(a), the [The] components of
159-3 invested capital and net income shall be determined according to
159-4 the rules stated in this section.
159-5 SECTION 6.07. Subchapter G, Chapter 13, Water Code, is
159-6 amended by adding Section 13.241 to read as follows:
159-7 Sec. 13.241. GRANTING CERTIFICATES. (a) In determining
159-8 whether to grant a certificate of public convenience and necessity,
159-9 the commission shall ensure that the applicant possesses the
159-10 financial, managerial, and technical capability to provide
159-11 continuous and adequate service.
159-12 (b) For water utility service, the commission shall ensure
159-13 that the applicant:
159-14 (1) is capable of providing drinking water that meets
159-15 the requirements of Chapter 341, Health and Safety Code, and
159-16 requirements of this code; and
159-17 (2) has access to an adequate supply of water.
159-18 (c) For sewer utility service, the commission shall ensure
159-19 that the applicant is capable of meeting the commission's design
159-20 criteria for sewer treatment plants and the requirements of this
159-21 code.
159-22 (d) Before the commission grants a new certificate of
159-23 convenience and necessity for an area which would require
159-24 construction of a physically separate water or sewer system, the
159-25 applicant must demonstrate that regionalization or consolidation
160-1 with another retail public utility is not economically feasible.
160-2 SECTION 6.08. Section 13.246, Water Code, is amended to read
160-3 as follows:
160-4 Sec. 13.246. NOTICE AND HEARING; ISSUANCE OR REFUSAL;
160-5 FACTORS CONSIDERED. (a) If an application for a certificate of
160-6 public convenience and necessity is filed, the commission shall
160-7 cause notice of the application to be given to affected parties
160-8 and, if requested, shall fix a time and place for a hearing and
160-9 give notice of the hearing. Any person affected by the application
160-10 may intervene at the hearing.
160-11 (b) The commission may grant applications and issue
160-12 certificates only if the commission finds that a certificate is
160-13 necessary for the service, accommodation, convenience, or safety of
160-14 the public. The commission may issue a certificate as requested,
160-15 or refuse to issue it, or issue it for the construction of only a
160-16 portion of the contemplated system or facility or extension, or for
160-17 the partial exercise only of the right or privilege and may impose
160-18 special conditions necessary to ensure that continuous and adequate
160-19 service is provided.
160-20 (c) Certificates of convenience and necessity shall be
160-21 granted on a nondiscriminatory basis after consideration by the
160-22 commission of the adequacy of service currently provided to the
160-23 requested area, the need for additional service in the requested
160-24 area, the effect of the granting of a certificate on the recipient
160-25 of the certificate and on any retail public utility of the same
161-1 kind already serving the proximate area, the ability of the
161-2 applicant to provide adequate service, the feasibility of obtaining
161-3 service from an adjacent retail public utility, the financial
161-4 stability of the applicant, including, if applicable, the adequacy
161-5 of the applicant's debt-equity ratio, environmental integrity, and
161-6 the probable improvement of service or lowering of cost to
161-7 consumers in that area resulting from the granting of the
161-8 certificate.
161-9 (d) The commission may require an applicant utility to
161-10 provide a bond or other financial assurance in a form and amount
161-11 specified by the commission to ensure that continuous and adequate
161-12 utility service is provided.
161-13 (e) Where applicable, in addition to the other factors in
161-14 this section the commission shall consider the efforts of the
161-15 applicant to extend service to any economically distressed areas
161-16 located within the service areas certificated to the applicant.
161-17 For the purposes of this subsection, "economically distressed area"
161-18 has the meaning assigned by Section 15.001.
161-19 SECTION 6.09. Section 13.253, Water Code, is amended to read
161-20 as follows:
161-21 Sec. 13.253. IMPROVEMENTS IN SERVICE; INTERCONNECTING
161-22 SERVICE. (a) After notice and hearing, the commission may:
161-23 (1) order any retail public utility that is required
161-24 by law to possess a certificate of public convenience and necessity
161-25 or any retail public utility that possesses a certificate of public
162-1 convenience and necessity and is located in an affected county as
162-2 defined in Section 16.341 to:
162-3 (A) provide specified improvements in its
162-4 service in a defined area if service in that area is inadequate or
162-5 is substantially inferior to service in a comparable area and it is
162-6 reasonable to require the retail public utility to provide the
162-7 improved service; or
162-8 (B) develop, implement, and follow financial,
162-9 managerial, and technical practices that are acceptable to the
162-10 commission to ensure that continuous and adequate service is
162-11 provided to any areas currently certificated to the retail public
162-12 utility if the retail public utility has not provided continuous
162-13 and adequate service to any of those areas and, for a utility, to
162-14 provide financial assurance of the utility's ability to operate the
162-15 system in accordance with applicable laws and rules, in the form of
162-16 a bond or other financial assurance in a form and amount specified
162-17 by the commission;
162-18 (2) order two or more public utilities or water supply
162-19 or sewer service corporations to establish specified facilities for
162-20 [the] interconnecting service; [or]
162-21 (3) order a public utility or water supply or sewer
162-22 service corporation that has not demonstrated that it can provide
162-23 continuous and adequate service from its drinking water source or
162-24 sewer treatment facility to obtain service sufficient to meet its
162-25 obligation to provide continuous and adequate service on at least a
163-1 wholesale basis from another consenting utility service provider;
163-2 or
163-3 (4) issue an emergency order, with or without a
163-4 hearing, under Section 13.041 [of this code].
163-5 (b) If the commission has reason to believe that
163-6 improvements and repairs to a water or sewer service system are
163-7 necessary to enable a retail public utility to provide continuous
163-8 and adequate service in any portion of its service area and the
163-9 retail public utility has provided financial assurance under
163-10 Section 341.0355, Health and Safety Code, or under this chapter,
163-11 the commission, after providing to the retail public utility notice
163-12 and an opportunity to be heard by the commissioners at a commission
163-13 meeting, may immediately order specified improvements and repairs
163-14 to the water or sewer system, the costs of which may be paid by the
163-15 bond or other financial assurance in an amount determined by the
163-16 commission not to exceed the amount of the bond or financial
163-17 assurance. The order requiring the improvements may be an
163-18 emergency order if it is issued after the retail public utility has
163-19 had an opportunity to be heard by the commissioners at a commission
163-20 meeting. After notice and hearing, the commission may require a
163-21 retail public utility to obligate additional money to replace the
163-22 financial assurance used for the improvements.
163-23 SECTION 6.10. Section 13.254, Water Code, is amended to read
163-24 as follows:
163-25 Sec. 13.254. REVOCATION OR AMENDMENT OF CERTIFICATE.
164-1 (a) The commission at any time after notice and hearing may revoke
164-2 or amend any certificate of public convenience and necessity with
164-3 the written consent of the certificate holder or if it finds that:
164-4 (1) the certificate holder has never provided, is no
164-5 longer providing, or has failed to provide continuous and adequate
164-6 service in the area, or part of the area, covered by the
164-7 certificate;
164-8 (2) in an affected county as defined in Section
164-9 16.341, the cost of providing service by the certificate holder is
164-10 so prohibitively expensive as to constitute denial of service,
164-11 provided that, for commercial developments or for residential
164-12 developments started after September 1, 1997, in an affected county
164-13 as defined in Section 16.341, the fact that the cost of obtaining
164-14 service from the currently certificated retail public utility makes
164-15 the development economically unfeasible does not render such cost
164-16 prohibitively expensive in the absence of other relevant factors;
164-17 (3) the certificate holder has agreed in writing to
164-18 allow another retail public utility to provide service within its
164-19 service area, except for an interim period, without amending its
164-20 certificate; or
164-21 (4) the certificate holder has failed to file a cease
164-22 and desist action pursuant to Section 13.252 within 180 days of the
164-23 date that it became aware that another retail public utility was
164-24 providing service within its service area, unless the certificate
164-25 holder demonstrates good cause for its failure to file such action
165-1 within the 180 days.
165-2 (b) Upon written request from the certificate holder, the
165-3 executive director may cancel the certificate of a utility or water
165-4 supply corporation authorized by rule to operate without a
165-5 certificate of public convenience and necessity under Section
165-6 13.242(c).
165-7 (c) If the certificate of any retail public utility is
165-8 revoked or amended, the commission may require one or more retail
165-9 public utilities with their consent to provide service in the area
165-10 in question. The order of the commission shall not be effective to
165-11 transfer property.
165-12 (d) A retail public utility may not in any way render retail
165-13 water or sewer service directly or indirectly to the public in an
165-14 area that has been decertified under this section without providing
165-15 compensation for any property that the commission determines is
165-16 rendered useless or valueless to the decertified retail public
165-17 utility as a result of the decertification.
165-18 (e) The determination of the monetary amount of
165-19 compensation, if any, shall be determined at the time another
165-20 retail public utility seeks to provide service in the previously
165-21 decertified area and before service is actually provided.
165-22 (f) The monetary amount shall be determined by a qualified
165-23 individual or firm serving as independent appraiser agreed upon by
165-24 the decertified retail public utility and the retail public utility
165-25 seeking to serve the area. The determination of compensation by
166-1 the independent appraiser shall be binding on the commission. The
166-2 costs of the independent appraiser shall be borne by the retail
166-3 public utility seeking to serve the area.
166-4 (g) For the purpose of implementing this section, the value
166-5 of real property shall be determined according to the standards set
166-6 forth in Chapter 21, Property Code, governing actions in eminent
166-7 domain and the value of personal property shall be determined
166-8 according to the factors in this subsection. The factors ensuring
166-9 that the compensation to a retail public utility for the taking,
166-10 damaging, or loss of personal property, including the retail public
166-11 utility's business, is just and adequate shall at a minimum
166-12 include: the impact on the existing indebtedness of the retail
166-13 public utility and its ability to repay that debt; the value of the
166-14 service facilities of the retail public utility located within the
166-15 area in question; the amount of any expenditures for planning,
166-16 design, or construction of service facilities that are allocable to
166-17 service to the area in question; the amount of the retail public
166-18 utility's contractual obligations allocable to the area in
166-19 question; any demonstrated impairment of service or increase of
166-20 cost to consumers of the retail public utility remaining after the
166-21 decertification; the impact on future revenues and expenses of the
166-22 retail public utility; necessary and reasonable legal expenses and
166-23 professional fees; factors relevant to maintaining the current
166-24 financial integrity of the retail public utility; and other
166-25 relevant factors.
167-1 (h) The commission shall determine whether payment of
167-2 compensation shall be in a lump sum or paid out over a specified
167-3 period of time. If there were no current customers in the area
167-4 decertified and no immediate loss of revenues or if there are other
167-5 valid reasons determined by the commission, installment payments as
167-6 new customers are added in the decertified area may be an
167-7 acceptable method of payment.
167-8 SECTION 6.11. Section 13.301, Water Code, is amended to read
167-9 as follows:
167-10 Sec. 13.301. REPORT OF SALE, MERGER, ETC.; INVESTIGATION;
167-11 DISALLOWANCE OF TRANSACTION. (a) A utility or a water supply or
167-12 sewer service corporation, on or before the 120th day before the
167-13 effective date of a sale, acquisition, lease, or rental of a water
167-14 or sewer system that is required by law to possess a certificate of
167-15 public convenience and necessity or the effective date of a merger
167-16 or consolidation with such a utility or water supply or sewer
167-17 service corporation, shall:
167-18 (1) file a written application with [notify] the
167-19 commission; and
167-20 (2) [give public notice] unless public notice is
167-21 waived by the executive director for good cause shown, give public
167-22 notice of the action [at least 120 days before the effective date
167-23 of any sale, acquisition, lease, or rental of any water or sewer
167-24 system required by law to possess a certificate of public
167-25 convenience and necessity or of any merger or consolidation with
168-1 such a utility or water supply or sewer service corporation].
168-2 (b) The commission may require that the person purchasing or
168-3 acquiring the water or sewer system demonstrate adequate financial,
168-4 managerial, and technical capability for providing continuous and
168-5 adequate service to the requested area and any areas currently
168-6 certificated to the person.
168-7 (c) If the person purchasing or acquiring the water or sewer
168-8 system cannot demonstrate adequate financial capability, the
168-9 commission may require that the person provide a bond or other
168-10 financial assurance in a form and amount specified by the
168-11 commission to ensure continuous and adequate utility service is
168-12 provided.
168-13 (d) The commission shall, with or without a public hearing,
168-14 investigate the sale, acquisition, lease, or rental to determine
168-15 whether the transaction will serve the public interest.
168-16 (e) [(c)] Before the expiration of the 120-day notification
168-17 period, the executive director shall notify all known parties to
168-18 the transaction of the executive director's decision whether to
168-19 request that the commission hold a public hearing to determine if
168-20 the transaction will serve the public interest. The executive
168-21 director may request a hearing if:
168-22 (1) the application filed with [notification to] the
168-23 commission or the public notice was improper;
168-24 (2) the person purchasing or acquiring the water or
168-25 sewer system has not demonstrated adequate financial, managerial,
169-1 and technical capability for providing continuous and adequate
169-2 service to the service area being acquired and to any areas
169-3 currently certificated to the person [is inexperienced as a utility
169-4 service provider];
169-5 (3) the person or an affiliated interest of the person
169-6 purchasing or acquiring the water or sewer system has a history of:
169-7 (A) noncompliance with the requirements of the
169-8 commission or the Texas Department of Health; or
169-9 (B) [of] continuing mismanagement or misuse of
169-10 revenues as a utility service provider;
169-11 (4) the person purchasing or acquiring the water or
169-12 sewer system cannot demonstrate the financial ability to provide
169-13 the necessary capital investment to ensure the provision of
169-14 continuous and adequate service to the customers of the water or
169-15 sewer system; or
169-16 (5) there are concerns that the transaction may not
169-17 serve the public interest, after the application of the
169-18 considerations provided by Section 13.246(c) for determining
169-19 whether to grant a certificate of convenience and necessity.
169-20 (f) [(d)] Unless the executive director requests that a
169-21 public hearing be held, the sale, acquisition, lease, or rental may
169-22 be completed as proposed:
169-23 (1) at the end of the 120-day period; or
169-24 (2) [may be completed] at any time after the executive
169-25 director notifies the utility or water supply or sewer service
170-1 corporation that a hearing will not be requested.
170-2 (g) If a hearing is requested or if the utility or water
170-3 supply or sewer service corporation fails to make the application
170-4 as [provide the] required [notification] or to provide public
170-5 notice, the sale, acquisition, lease, or rental may not be
170-6 completed unless the commission determines that the proposed
170-7 transaction serves the public interest.
170-8 (h) A sale, acquisition, lease, or rental of any water or
170-9 sewer system required by law to possess a certificate of public
170-10 convenience and necessity that is not completed in accordance with
170-11 the provisions of this section is void.
170-12 (i) [(e)] This section does not apply to:
170-13 (1) the purchase of replacement property; or
170-14 (2) [to] a transaction under Section 13.255 of this
170-15 code.
170-16 (j) [(f)] If a public utility facility or system is sold and
170-17 the facility or system was partially or wholly constructed with
170-18 customer contributions in aid of construction derived from specific
170-19 surcharges approved by the regulatory authority over and above
170-20 revenues required for normal operating expenses and return, the
170-21 public utility may not sell or transfer any of its assets, its
170-22 certificate of convenience and necessity, or its controlling
170-23 interest in an incorporated utility, unless the utility provides to
170-24 the purchaser or transferee before the date of the sale or transfer
170-25 a written disclosure relating to the contributions. The disclosure
171-1 must contain, at a minimum, the total dollar amount of the
171-2 contributions and a statement that the contributed property or
171-3 capital may not be included in invested capital or allowed
171-4 depreciation expense by the regulatory authority in rate-making
171-5 proceedings.
171-6 (k) [(g)] A utility or a water supply or sewer service
171-7 corporation that proposes to sell, assign, lease, or rent its
171-8 facilities shall notify the other party to the transaction of the
171-9 requirements of this section before signing an agreement to sell,
171-10 assign, lease, or rent its facilities.
171-11 SECTION 6.12. Section 13.302, Water Code, is amended to read
171-12 as follows:
171-13 Sec. 13.302. PURCHASE OF VOTING STOCK IN ANOTHER PUBLIC
171-14 UTILITY: REPORT. (a) A utility may not purchase voting stock in
171-15 another utility doing business in this state and a person may not
171-16 acquire a controlling interest in a utility doing business in this
171-17 state unless the person or utility files a written application with
171-18 [notifies] the commission [of the proposed purchase or acquisition]
171-19 not later than the 61st day before the date on which the
171-20 transaction is to occur.
171-21 (b) The commission may require that a person acquiring a
171-22 controlling interest in a utility demonstrate adequate financial,
171-23 managerial, and technical capability for providing continuous and
171-24 adequate service to the requested area and any areas currently
171-25 certificated to the person.
172-1 (c) If the person acquiring a controlling interest cannot
172-2 demonstrate adequate financial capability, the commission may
172-3 require that the person provide a bond or other financial assurance
172-4 in a form and amount specified by the commission to ensure
172-5 continuous and adequate utility service is provided.
172-6 (d) The executive director may request that the commission
172-7 hold a public hearing on the transaction if the executive director
172-8 believes that a criterion [criteria] prescribed by Section
172-9 13.301(e) [13.301(c) of this code] applies.
172-10 (e) [(c)] Unless the executive director requests that a
172-11 public hearing be held, the purchase or acquisition may be
172-12 completed as proposed:
172-13 (1) at the end of the 60-day period; or
172-14 (2) [may be completed] at any time after the executive
172-15 director notifies the person or utility that a hearing will not be
172-16 requested.
172-17 (f) If a hearing is requested or if the person or utility
172-18 fails to make the application to the commission as [provide the]
172-19 required [notification to the commission], the purchase or
172-20 acquisition may not be completed unless the commission determines
172-21 that the proposed transaction serves the public interest. A
172-22 purchase or acquisition that is not completed in accordance with
172-23 the provisions of this section is void.
172-24 SECTION 6.13. Section 13.412, Water Code, is amended by
172-25 amending Subsections (a) and (b) and adding Subsections (f) and (g)
173-1 to read as follows:
173-2 (a) At the request of the commission, the attorney general
173-3 shall bring suit for the appointment of a receiver to collect the
173-4 assets and carry on the business of a water or sewer utility that:
173-5 (1) has abandoned operation of its facilities;
173-6 (2) informs the commission that the owner is
173-7 abandoning the system;
173-8 (3) [or] violates a final order of the commission; or
173-9 (4) allows any property owned or controlled by it to
173-10 be used in violation of a final order of the commission.
173-11 (b) The court shall appoint a receiver if an appointment is
173-12 necessary:
173-13 (1) to guarantee the collection of assessments, fees,
173-14 penalties, or interest;
173-15 (2) to guarantee continuous and adequate [continued]
173-16 service to the customers of the utility; or
173-17 (3) to prevent continued or repeated violation of the
173-18 final order.
173-19 (f) For purposes of this section and Section 13.4132,
173-20 abandonment may include but is not limited to:
173-21 (1) failure to pay a bill or obligation owed to a
173-22 retail public utility or to an electric or gas utility with the
173-23 result that the utility service provider has issued a notice of
173-24 discontinuance of necessary services;
173-25 (2) failure to provide appropriate water or wastewater
174-1 treatment so that a potential health hazard results;
174-2 (3) failure to adequately maintain facilities,
174-3 resulting in potential health hazards, extended outages, or
174-4 repeated service interruptions;
174-5 (4) failure to provide customers adequate notice of a
174-6 health hazard or potential health hazard;
174-7 (5) failure to secure an alternative available water
174-8 supply during an outage;
174-9 (6) displaying a pattern of hostility toward or
174-10 repeatedly failing to respond to the commission or the utility's
174-11 customers; and
174-12 (7) failure to provide the commission with adequate
174-13 information on how to contact the utility for normal business and
174-14 emergency purposes.
174-15 (g) Notwithstanding Section 64.021, Civil Practice and
174-16 Remedies Code, a receiver appointed under this section may seek
174-17 commission approval to acquire the water or sewer utility's
174-18 facilities and transfer the utility's certificate of convenience
174-19 and necessity. The receiver must apply in accordance with
174-20 Subchapter H.
174-21 SECTION 6.14. Subsections (a) and (c), Section 13.4132,
174-22 Water Code, are amended to read as follows:
174-23 (a) The commission, after providing to the utility notice
174-24 and an opportunity to be heard by the commissioners at a commission
174-25 meeting [for a hearing], may authorize a willing person to
175-1 temporarily manage and operate a utility if the utility:
175-2 (1) [that] has discontinued or abandoned operations or
175-3 the provision of services; or
175-4 (2) has been or is being referred to the attorney
175-5 general for the appointment of a receiver under Section 13.412 [of
175-6 this code].
175-7 (c) A person appointed under this section has the powers and
175-8 duties necessary to ensure the continued operation of the utility
175-9 and the provision of continuous and adequate services to customers,
175-10 including the power and duty to:
175-11 (1) read meters;
175-12 (2) bill for utility services;
175-13 (3) collect revenues;
175-14 (4) disburse funds; [and]
175-15 (5) access all system components; and
175-16 (6) request rate increases.
175-17 SECTION 6.15. Section 15.602, Water Code, is amended to read
175-18 as follows:
175-19 Sec. 15.602. DEFINITIONS. In this subchapter:
175-20 (1) "Additional state revolving fund" means any state
175-21 revolving fund hereafter established by the board to provide
175-22 financial assistance to political subdivisions for public works in
175-23 accordance with a capitalization grant program hereafter
175-24 established by a federal agency or otherwise authorized by federal
175-25 law.
176-1 (2) "Authorized investments" means any authorized
176-2 investments described in Section 404.024, Government Code.
176-3 (3) "Community water system" means a public water
176-4 system that:
176-5 (A) serves at least 15 service connections used
176-6 by year-round residents of the area served by the system; or
176-7 (B) regularly serves at least 25 year-round
176-8 residents.
176-9 (4) "Construction" shall have the meaning assigned by
176-10 the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).
176-11 (5) "Disadvantaged community" means an area meeting
176-12 criteria established by board rule, which criteria shall be based
176-13 on measures that may include single-family residential property
176-14 valuation, income levels of residents of the area, or other
176-15 similarly appropriate measures.
176-16 (6) [(4)] "Federal Act" means the Federal Water
176-17 Pollution Control Act, as amended (33 U.S.C. 1251 et seq.).
176-18 (7) "Nonprofit noncommunity water system" means a
176-19 public water system that is not operated for profit and that:
176-20 (A) is owned by a political subdivision or
176-21 nonprofit entity; and
176-22 (B) is not a community water system.
176-23 (8) [(5)] "Political subdivision" means a
176-24 municipality, intermunicipal, interstate, or state agency, [or] any
176-25 other public entity eligible for assistance under this subchapter,
177-1 or a nonprofit water supply corporation created and operating under
177-2 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
177-3 (Article 1434a, Vernon's Texas Civil Statutes), if such entity is
177-4 eligible for financial assistance under federal law establishing
177-5 the state revolving fund or an additional state revolving fund.
177-6 (9) "Public water system" means a system that is owned
177-7 by any person and that meets the definition of public water system
177-8 in the Safe Drinking Water Act.
177-9 (10) [(6)] "Public works" means any project to
177-10 acquire, construct, improve, repair, or otherwise provide any
177-11 buildings, structures, facilities, equipment, or other real or
177-12 personal property or improvements designed for public use,
177-13 protection, or enjoyment undertaken by a political subdivision and
177-14 paid for, in whole or in part, out of public funds.
177-15 (11) [(7)] "Revolving fund" means the state water
177-16 pollution control revolving fund.
177-17 (12) "Safe Drinking Water Act" means Title XIV of the
177-18 federal Public Health Service Act, commonly known as the Safe
177-19 Drinking Water Act, as amended (42 U.S.C. Section 300f et seq.).
177-20 (13) "Safe drinking water revolving fund" means the
177-21 fund established by the board as an additional state revolving fund
177-22 to provide financial assistance in accordance with the federal
177-23 program established pursuant to the provisions of the Safe Drinking
177-24 Water Act.
177-25 (14) [(8)] "Treatment works" has the meaning
178-1 established by the federal act and the eligible components of the
178-2 management programs established by Sections 319 and 320 of the
178-3 federal act.
178-4 SECTION 6.16. Subchapter J, Chapter 15, Water Code, is
178-5 amended by adding Section 15.6041 to read as follows:
178-6 Sec. 15.6041. FINANCIAL ASSISTANCE UNDER THE SAFE DRINKING
178-7 WATER REVOLVING FUND. (a) The safe drinking water revolving fund
178-8 shall be administered by the board under this subchapter and rules
178-9 adopted by the board. The safe drinking water revolving fund shall
178-10 be held and administered by the board in the same manner as
178-11 provided by Section 15.603, except that the safe drinking water
178-12 revolving fund shall be held and administered in accordance with
178-13 the Safe Drinking Water Act and shall be used to provide financial
178-14 assistance in accordance with that act and in the manner provided
178-15 by rules adopted by the board:
178-16 (1) to political subdivisions for community water
178-17 systems and for nonprofit noncommunity water systems;
178-18 (2) to persons other than political subdivisions for
178-19 community water systems or nonprofit noncommunity water systems
178-20 from the account established by Subsection (b)(1);
178-21 (3) to persons, including political subdivisions, for
178-22 service to disadvantaged communities from the account established
178-23 by Subsection (b)(2); and
178-24 (4) for other purposes authorized by the Safe Drinking
178-25 Water Act.
179-1 (b) In addition to other accounts the board may establish in
179-2 the safe drinking water revolving fund, the board shall establish
179-3 the following separate accounts:
179-4 (1) the community/noncommunity water system financial
179-5 assistance account, to be used solely for providing financial
179-6 assistance to persons, other than political subdivisions, providing
179-7 services through a community water system or a nonprofit
179-8 noncommunity water system, which account shall be composed solely
179-9 of funds appropriated by the legislature, funds provided as gifts
179-10 or grants by the United States government, interest earnings on
179-11 amounts credited to the account, and repayments of loans made from
179-12 the account; and
179-13 (2) the disadvantaged community account, to be used
179-14 solely for providing financial assistance under the terms of
179-15 Subsections (c) and (d), which account shall be composed solely of
179-16 funds appropriated by the legislature, funds provided as gifts or
179-17 grants by the United States government, interest earnings on
179-18 amounts credited to the account, and repayments of loans made from
179-19 the account.
179-20 (c) The board may provide financial assistance from the
179-21 disadvantaged community account to:
179-22 (1) a political subdivision:
179-23 (A) that is a disadvantaged community; or
179-24 (B) for a project serving an area that:
179-25 (i) is located outside the boundaries of
180-1 the political subdivision; and
180-2 (ii) meets the definition of a
180-3 disadvantaged community; or
180-4 (2) an owner of a community water system that is
180-5 ordered by the commission to provide service to a disadvantaged
180-6 community, provided that the financial assistance is for the sole
180-7 purpose of providing service to a disadvantaged community.
180-8 (d) In providing financial assistance from the disadvantaged
180-9 community account, the board shall determine the amount of a loan
180-10 which the political subdivision cannot repay based on affordability
180-11 criteria established by the board by rule. The board shall forgive
180-12 repayment of that portion of the principal of the loan which the
180-13 board determines the political subdivision cannot repay. Financial
180-14 assistance from the disadvantaged community account may not exceed
180-15 the allowable percentage of the amount of the capitalization grant
180-16 received by the state pursuant to the Safe Drinking Water Act.
180-17 SECTION 6.17. Subsections (c) and (g), Section 15.603, Water
180-18 Code, are amended to read as follows:
180-19 (c) The revolving fund consists of money derived from
180-20 federal grants, direct appropriations, investment earnings on
180-21 amounts credited to the revolving fund, and, at the board's
180-22 discretion, from any and all sources available [to provide the
180-23 required state match for the purposes of this subchapter].
180-24 (g) The revolving fund and any accounts established in the
180-25 revolving fund shall be kept and maintained by or at the direction
181-1 of the board and do not constitute and are not a part of the State
181-2 Treasury. However, at the direction of the board, the revolving
181-3 fund or accounts in the revolving fund may be kept and held in
181-4 escrow and in trust by the comptroller [State Treasurer] for and on
181-5 behalf of the board, shall be used only as provided by this
181-6 subchapter, and pending such use shall be invested in authorized
181-7 investments as provided by any order, resolution, or rule of the
181-8 board. Legal title to money and investments in the revolving fund
181-9 is in the board unless or until paid out as provided by this
181-10 subchapter, the federal act, and the rules of the board. The
181-11 comptroller [State Treasurer], as custodian, shall administer the
181-12 funds strictly and solely as provided by this subchapter and in the
181-13 orders, resolutions, and rules, and the state shall take no action
181-14 with respect to the revolving fund other than that specified in
181-15 this subchapter, the federal act, and the rules of the board.
181-16 SECTION 6.18. Subsection (a), Section 341.031, Health and
181-17 Safety Code, is amended to read as follows:
181-18 (a) Public drinking water must be free from deleterious
181-19 matter and must comply with the standards established by the
181-20 commission[, the United States Public Health Service,] or the
181-21 United States Environmental Protection Agency. The commission may
181-22 adopt and enforce rules to implement the federal Safe Drinking
181-23 Water Act (42 U.S.C. Section 300f et seq.).
181-24 SECTION 6.19. Subchapter C, Chapter 341, Health and Safety
181-25 Code, is amended by adding Section 341.0315 to read as follows:
182-1 Sec. 341.0315. PUBLIC DRINKING WATER SUPPLY SYSTEM
182-2 REQUIREMENTS. (a) To preserve the public health, safety, and
182-3 welfare, the commission shall ensure that public drinking water
182-4 supply systems:
182-5 (1) supply safe drinking water in adequate quantities;
182-6 (2) are financially stable; and
182-7 (3) are technically sound.
182-8 (b) The commission shall encourage and promote the
182-9 development and use of regional and areawide drinking water supply
182-10 systems.
182-11 (c) Each public drinking water supply system shall provide
182-12 an adequate and safe drinking water supply. The supply must meet
182-13 the requirements of Section 341.031 and commission rules.
182-14 (d) The commission shall consider compliance history in
182-15 determining issuance of new permits, renewal permits, and permit
182-16 amendments for a public drinking water system.
182-17 SECTION 6.20. Subchapter C, Chapter 341, Health and Safety
182-18 Code, is amended by amending Section 341.035 and adding Sections
182-19 341.0351 through 341.0356 to read as follows:
182-20 Sec. 341.035. APPROVED PLANS REQUIRED FOR PUBLIC WATER
182-21 SUPPLIES. (a) Except as provided by Subsection (d), a person may
182-22 not begin construction of a public drinking water supply system
182-23 unless the executive director of the commission approves:
182-24 (1) a business plan for the system; and
182-25 (2) the plans and specifications for the system.
183-1 (b) The prospective owner or operator of the system must
183-2 submit to the executive director a business plan that demonstrates
183-3 that the owner or operator of the proposed system has available the
183-4 financial, managerial, and technical capability to ensure future
183-5 operation of the system in accordance with applicable laws and
183-6 rules. The executive director:
183-7 (1) shall review the business plan; and
183-8 (2) may order the prospective owner or operator of the
183-9 system to provide adequate financial assurance of ability to
183-10 operate the system in accordance with applicable laws and rules, in
183-11 the form of a bond or as specified by the commission, unless the
183-12 executive director finds that the business plan demonstrates
183-13 adequate financial capability.
183-14 (c) The prospective owner or operator of the proposed system
183-15 shall provide to the commission [A person contemplating
183-16 establishing a drinking water supply system for public use must
183-17 submit] completed plans and specifications for review and approval
183-18 in accordance with commission rules.
183-19 (d) A person is not required to file a business plan under
183-20 Subsection (a)(1) or (b) if the person:
183-21 (1) is a county;
183-22 (2) is a retail public utility as defined by Section
183-23 13.002, Water Code, unless that person is a utility as defined by
183-24 that section;
183-25 (3) has executed an agreement with a political
184-1 subdivision to transfer the ownership and operation of the water
184-2 supply system to the political subdivision; or
184-3 (4) is a noncommunity nontransient water system and
184-4 the person has demonstrated financial assurance under Chapter 361
184-5 or 382 of this code or Chapter 26, Water Code [to the commission
184-6 before construction of the system. The commission shall approve
184-7 plans that conform to the state's water safety laws. The water
184-8 supply system may be established only on the commission's
184-9 approval].
184-10 Sec. 341.0351. NOTIFICATION OF SYSTEM CHANGES. [(b)] Any
184-11 person [agency], including a municipality, supplying a drinking
184-12 water service to the public that intends to make a material or
184-13 major change in a water supply system that may affect the sanitary
184-14 features of that utility must give written notice of that intention
184-15 to the commission before making the change.
184-16 Sec. 341.0352. ADVERTISED QUALITY OF WATER SUPPLY. [(c)] A
184-17 water supply system owner, manager, or operator or an agent of a
184-18 water supply system owner, manager, or operator may not advertise
184-19 or announce a water supply as being of a quality other than the
184-20 quality that is disclosed by the commission's latest rating.
184-21 Sec. 341.0353. DRINKING WATER SUPPLY COMPARATIVE RATING
184-22 INFORMATION. [(d)] The commission shall assemble and tabulate all
184-23 necessary information [data] relating to public drinking water
184-24 supplies at least once each year and as often during the year as
184-25 conditions demand or justify. The information [data] forms the
185-1 basis of an official comparative rating of public drinking water
185-2 supply systems.
185-3 Sec. 341.0354. HIGHWAY SIGNS FOR APPROVED SYSTEM RATING.
185-4 [(e)] A water supply system that attains an approved rating is
185-5 entitled to erect signs of a design approved by the commission on
185-6 highways approaching the municipality in which the water supply
185-7 system is located. The signs shall be immediately removed on
185-8 notice from the commission if the water supply system does not
185-9 continue to meet the specified standards.
185-10 Sec. 341.0355. FINANCIAL ASSURANCE FOR CERTAIN SYSTEMS.
185-11 (a) The commission may require the owner or operator of a public
185-12 drinking water supply system that was constructed without the
185-13 approval required by Section 341.035, that has a history of
185-14 noncompliance with this subchapter or commission rules, or that is
185-15 subject to a commission enforcement action to:
185-16 (1) provide the executive director of the commission
185-17 with a business plan that demonstrates that the system has
185-18 available the financial, managerial, and technical resources
185-19 adequate to ensure future operation of the system in accordance
185-20 with applicable laws and rules; and
185-21 (2) provide adequate financial assurance of the
185-22 ability to operate the system in accordance with applicable laws
185-23 and rules in the form of a bond or as specified by the commission.
185-24 (b) If the commission relies on rate increases or customer
185-25 surcharges as the form of financial assurance, such funds shall be
186-1 deposited in an escrow account and released only with the approval
186-2 of the commission.
186-3 Sec. 341.0356. ORDER TO STOP OPERATIONS. (a) A public
186-4 water supply system shall stop operations on receipt of a written
186-5 notification of the executive director of the commission or an
186-6 order of the commission issued under this section.
186-7 (b) The executive director or the commission may order a
186-8 public water supply system to stop operations if:
186-9 (1) the system was constructed without the approval
186-10 required by Section 341.035; or
186-11 (2) the executive director determines that the system
186-12 presents an imminent health hazard.
186-13 (c) A notification or order issued under this section may be
186-14 delivered by facsimile, by personal service, or by mail.
186-15 (d) A water supply system subject to notification or an
186-16 order under this section, on written request, is entitled to an
186-17 opportunity to be heard by the commissioners at a commission
186-18 meeting.
186-19 (e) The public water supply system may not resume operations
186-20 until the commission, the executive director, or a court authorizes
186-21 the resumption.
186-22 SECTION 6.21. Subsections (a) and (b), Section 341.047,
186-23 Health and Safety Code, are amended to read as follows:
186-24 (a) A person commits an offense if the person:
186-25 (1) violates a provision of Section 341.031;
187-1 (2) violates a provision of Section 341.032(a) or (b);
187-2 (3) violates a provision of Section 341.033(a)-(f);
187-3 (4) constructs a drinking water supply system without
187-4 submitting completed plans and specifications as required by
187-5 Section 341.035(c) [341.035(a)];
187-6 (5) begins construction of [establishes] a drinking
187-7 water supply system without the commission's approval as required
187-8 by Section 341.035(a);
187-9 (6) violates a provision of Section 341.0351 or
187-10 341.0352 [341.035(b) or (c)];
187-11 (7) fails to remove a sign as required by Section
187-12 341.0354 [341.035(e)]; or
187-13 (8) violates a provision of Section 341.036.
187-14 (b) An offense under Subsection (a) is a Class C misdemeanor
187-15 [punishable by a fine of not less than $100].
187-16 SECTION 6.22. Subsections (b) through (i), Section 341.048,
187-17 Health and Safety Code, are amended to read as follows:
187-18 (b) A person who causes, suffers, allows, or permits a
187-19 violation under this subchapter shall be assessed a civil penalty
187-20 of not less than $50 nor more than $1,000 [$500] for each
187-21 violation. Each day of a continuing violation is a separate
187-22 violation.
187-23 (c) [If it is shown on a trial of the defendant that the
187-24 defendant has previously been assessed a civil penalty under this
187-25 section within a year before the date on which the violation being
188-1 tried occurred, the defendant shall be assessed a civil penalty of
188-2 not less than $50 nor more than $1,000 for each subsequent
188-3 violation under this subchapter. Each day of a continuing
188-4 violation is a separate violation.]
188-5 [(d)] If it appears that a person has violated, is
188-6 violating, or threatens to violate a provision under this
188-7 subchapter, the commission, a county, or a municipality may
188-8 institute a civil suit in a district court for:
188-9 (1) injunctive relief to restrain the person from
188-10 continuing the violation or threat of violation;
188-11 (2) the assessment and recovery of a civil penalty; or
188-12 (3) both injunctive relief and a civil penalty.
188-13 (d) [(e)] The commission is a necessary and indispensable
188-14 party in a suit brought by a county or municipality under this
188-15 section.
188-16 (e) [(f)] On the commission's request, the attorney general
188-17 shall institute a suit in the name of the state for injunctive
188-18 relief, to recover a civil penalty, or for both injunctive relief
188-19 and civil penalty.
188-20 (f) [(g)] The suit may be brought in:
188-21 (1) Travis County;
188-22 (2) [, in] the county in which the defendant resides;
188-23 or
188-24 (3) [, or in] the county in which the violation or
188-25 threat of violation occurs.
189-1 (g) [(h)] In a suit under this section to enjoin a violation
189-2 or threat of violation of this subchapter, the court shall grant
189-3 the state, county, or municipality, without bond or other
189-4 undertaking, any injunction that the facts may warrant including
189-5 temporary restraining orders, temporary injunctions after notice
189-6 and hearing, and permanent injunctions.
189-7 (h) [(i)] Civil penalties recovered in a suit brought under
189-8 this section by a county or municipality shall be equally divided
189-9 between:
189-10 (1) the state; and
189-11 (2) the county or municipality that first brought the
189-12 suit.
189-13 SECTION 6.23. Subsection (a), Section 341.049, Health and
189-14 Safety Code, is amended to read as follows:
189-15 (a) If a person causes, suffers, allows, or permits a
189-16 violation of this subchapter or a rule or order adopted under this
189-17 subchapter, the commission may assess a penalty against that person
189-18 as provided by this section. The penalty shall not be less than
189-19 $50 nor more than $1,000 [$500] for each violation. Each day of a
189-20 continuing violation may be considered a separate violation.
189-21 SECTION 6.24. Section 1, Chapter 190, Acts of the 66th
189-22 Legislature, Regular Session, 1979 (Article 1110f, Vernon's Texas
189-23 Civil Statutes), is amended to read as follows:
189-24 Sec. 1. Purpose. The purpose of this Act is to clarify the
189-25 authority of public entities that are lawfully authorized to engage
190-1 in the collection, transportation, treatment, and disposal of
190-2 sewage and the conservation, storage, transportation, treatment,
190-3 and distribution of water, to join together as cotenants or
190-4 coowners, or by concurrent resolution or ordinance, to create a
190-5 public utility agency, to engage in the planning, financing,
190-6 acquiring, constructing, owning, operating, and maintaining of
190-7 facilities so that each public entity will owe all of the duties,
190-8 will have and be secure in all of the rights, powers, and
190-9 liabilities, and shall be entitled to all of the privileges and
190-10 exemptions attributable to its undivided interest as a cotenant or
190-11 coowner should the entities elect not to create a public utility
190-12 agency, as provided by law with respect to an entire interest in
190-13 facilities planned, financed, acquired, constructed, owned,
190-14 operated, and maintained by it alone. These alternatives are to
190-15 serve as a means of achieving economies of scale by providing
190-16 essential water and sewage systems to the public and promoting the
190-17 orderly economic development of the state while providing
190-18 environmentally sound protection of future water and wastewater
190-19 needs of the state and its inhabitants. The provisions of this Act
190-20 shall be liberally construed to effectuate these purposes but shall
190-21 not be construed to otherwise enlarge, change, or modify in any way
190-22 the rights, powers, or authority of any public or private entity
190-23 under existing law. Nothing in this Act shall be construed to
190-24 alter, change, abrogate, or otherwise affect the existing contracts
190-25 in force at the time this Act takes effect.
191-1 SECTION 6.25. Section 2, Chapter 190, Acts of the 66th
191-2 Legislature, 1979 (Article 1110f, Vernon's Texas Civil Statutes),
191-3 is amended by amending Subsections (2), (3), and (4) to read as
191-4 follows:
191-5 (2) "Private entity" means any entity other than a
191-6 public entity solely involved in financing, constructing,
191-7 operating, and maintaining water and sewer facilities.
191-8 (3) "Facilities" means facilities necessary or
191-9 incidental to the collection, transportation, treatment, or
191-10 disposal of sewage and to the conservation, storage,
191-11 transportation, treatment, and distribution of water, including
191-12 plant sites, rights-of-way, and real and personal property and
191-13 equipment and rights of every kind useful in connection with
191-14 collection, transportation, treatment, or disposal of sewage or
191-15 with conservation, storage, transportation, treatment, and
191-16 distribution of water.
191-17 (4) "Public utility agency" or "agency" means any
191-18 agency created under this Act by two or more public entities for
191-19 the purpose of planning, financing, constructing, owning,
191-20 operating, and maintaining facilities for the purpose of achieving
191-21 economies of scale in providing water or sewer services.
191-22 SECTION 6.26. Subsection (a), Section 3, Chapter 190, Acts
191-23 of the 66th Legislature, 1979 (Article 1110f, Vernon's Texas Civil
191-24 Statutes), is amended to read as follows:
191-25 (a) To more readily accomplish the purposes of this Act, two
192-1 or more public entities, by concurrent ordinances, may create an
192-2 agency to be known as a public utility agency. The agency shall be
192-3 without taxing power, and shall be a separate agency, a political
192-4 subdivision of the state, and body politic and corporate exercising
192-5 all of the powers that are conferred by Chapter 10, Title 28,
192-6 Revised Civil Statutes of Texas, 1925, as amended, and this Act on
192-7 a public entity. No agency is authorized to engage in any utility
192-8 business other than the collection, transportation, treatment, or
192-9 disposal of sewage or the conservation, storage, transportation,
192-10 treatment, and distribution of water for the participating public
192-11 entities that are joint owners with the agency of a facility
192-12 located within the state. A public entity, at the time of the
192-13 passage of the concurrent ordinance, must be one that has the
192-14 authority to engage in the collection, transportation, treatment,
192-15 or disposal of sewage or the conservation, storage, transportation,
192-16 treatment, and distribution of water, but the entity may
192-17 subsequently dispose of its facilities. Before the passage of a
192-18 concurrent ordinance to create a public utility agency, the
192-19 governing body of each public entity shall have notice of its
192-20 intention to adopt the ordinance published in a newspaper of
192-21 general circulation within the county in which the public entity is
192-22 domiciled once a week for two consecutive weeks, the date of the
192-23 first publication to be at least 14 days before the date set for
192-24 the passage of the concurrent ordinance. The notice shall state
192-25 the date, time, and place that the governing body proposes to pass
193-1 the ordinance and that on the effective date of the concurrent
193-2 ordinances the public entities adopting them shall have created a
193-3 public utility agency. If, prior to the day set for the passage of
193-4 a concurrent ordinance, 10 percent of the qualified electors of the
193-5 particular public entity present a petition to the governing body
193-6 requesting that a referendum election be called, the ordinance
193-7 shall not become effective until a majority of the qualified
193-8 electors of the entity voting in the election have approved the
193-9 ordinance. The election shall be called and held in conformity
193-10 with the Texas Election Code, as amended, Chapter 1, Title 22,
193-11 Revised Civil Statutes of Texas, 1925, as amended, and this Act.
193-12 Except as provided in this Act, a concurrent ordinance shall not be
193-13 subject to a referendum election.
193-14 SECTION 6.27. Subsections (f) and (g), Section 4, Chapter
193-15 190, Acts of the 66th Legislature, 1979 (Article 1110f, Vernon's
193-16 Texas Civil Statutes), are amended to read as follows:
193-17 (f) The agency may make contracts, leases, and agreements
193-18 with and accept grants and loans from the United States of America,
193-19 its departments and agencies, the State of Texas, its agencies,
193-20 counties, municipalities, and political subdivisions, and public or
193-21 private corporations and persons and may generally perform all acts
193-22 necessary for the full exercise of the powers vested in the agency.
193-23 Each agency may contract with those public entities creating the
193-24 agency for the collection, transportation, treatment, and disposal
193-25 of sewage or the conservation, storage, transportation, treatment,
194-1 and distribution of water, and the authority to contract for these
194-2 services shall also extend to private entities under terms and
194-3 conditions the agency's board of directors may consider
194-4 appropriate. The agency may sell, lease, convey, or otherwise
194-5 dispose of any right, interest, or property that is, in its
194-6 judgment, not needed for the efficient operation and maintenance of
194-7 its facilities. The responsibility of the management, operation,
194-8 and control of the properties belonging to the agency shall be
194-9 vested in the board of directors.
194-10 (g) The agency, in contracting with any public or private
194-11 entity for wastewater collection, transmission, treatment, or
194-12 disposal services or for water conservation, storage,
194-13 transportation, treatment, and distribution, must charge rates
194-14 sufficient to produce revenues adequate:
194-15 (1) to pay all expenses of operation and maintenance;
194-16 (2) to pay all interest and principal due on bonds
194-17 issued as they become due and payable;
194-18 (3) to pay the principal of and interest on any legal
194-19 debt of the agency;
194-20 (4) to pay all sinking and reserve fund payments as
194-21 they become due and payable; and
194-22 (5) to fulfill the terms of any agreements made with
194-23 the holders of any bonds.
194-24 The agency may also establish a reasonable depreciation and
194-25 emergency fund. Payments made pursuant to contracts with the
195-1 agencies are to constitute an operating expense of the public or
195-2 private entity served as a result of the contracts unless otherwise
195-3 prohibited by a previously outstanding obligation of the purchasing
195-4 entity.
195-5 SECTION 6.28. Subchapter C, Chapter 13, Water Code, is
195-6 amended by adding Section 13.045 to read as follows:
195-7 Sec. 13.045. NOTIFICATION REGARDING USE OF REVENUE. At
195-8 least annually and before any rate increase, a municipality shall
195-9 notify in writing each water and sewer retail customer of any
195-10 service or capital expenditure not water or sewer related funded in
195-11 whole or in part by customer revenue.
195-12 SECTION 6.29. Subchapter D, Chapter 13, Water Code, is
195-13 amended by adding Section 13.086 to read as follows:
195-14 Sec. 13.086. FAIR WHOLESALE RATES FOR WHOLESALE WATER SALES
195-15 TO A WATER DISTRICT. (a) A municipality that makes a wholesale
195-16 sale of water to a special district created under Section 52,
195-17 Article III, or Section 59, Article XVI, Texas Constitution, and
195-18 that operates under Title 4 or under Chapter 36 shall determine the
195-19 rates for that sale on the same basis as for other similarly
195-20 situated wholesale purchasers of the municipality's water.
195-21 (b) This section does not apply to a sale of water under a
195-22 contract executed before the effective date of this section.
195-23 SECTION 6.30. Section 13.411, Water Code, is amended to read
195-24 as follows:
195-25 Sec. 13.411. Action to Enjoin or Require Compliance.
196-1 (a) If [it appears to] the commission has reason to believe that
196-2 any retail public utility or any other person or corporation is
196-3 engaged in or is about to engage in any act in violation of this
196-4 chapter or of any order or rule of the commission entered or
196-5 adopted under this chapter or that any retail public utility or any
196-6 other person or corporation is failing to comply with this chapter
196-7 or with any rule or order, the attorney general on request of the
196-8 commission, in addition to any other remedies provided in this
196-9 chapter, shall bring an action in a court of competent jurisdiction
196-10 in the name of and on behalf of the commission against the retail
196-11 public utility or other person or corporation to enjoin the
196-12 commencement or continuation of any act or to require compliance
196-13 with this chapter or the rule or order.
196-14 (b) If the executive director has reason to believe that the
196-15 failure of the owner or operator of a water utility to properly
196-16 operate, maintain, or provide adequate facilities presents an
196-17 imminent threat to human health or safety, the executive director
196-18 shall immediately:
196-19 (1) notify the utility's representative; and
196-20 (2) initiate enforcement action consistent with:
196-21 (A) this subchapter; and
196-22 (B) procedural rules adopted by the commission.
196-23 SECTION 6.31. Section 13.418, Water Code, is amended to read
196-24 as follows:
196-25 Sec. 13.418. DISPOSITION OF FINES AND PENALTIES; WATER
197-1 UTILITY IMPROVEMENT ACCOUNT. (a) Fines and penalties collected
197-2 under this chapter from a retail public utility that is not a
197-3 public utility in other than criminal proceedings shall be paid to
197-4 the commission and deposited in the general revenue fund.
197-5 (b) Fines and penalties collected from a public utility
197-6 under this chapter in other than criminal proceedings shall be paid
197-7 to the commission and deposited in the water utility improvement
197-8 account as provided by Section 341.0485, Health and Safety Code
197-9 [General Revenue Fund].
197-10 SECTION 6.32. Subchapter C, Chapter 341, Health and Safety
197-11 Code, is amended by adding Section 341.0485 to read as follows:
197-12 Sec. 341.0485. WATER UTILITY IMPROVEMENT ACCOUNT. (a) The
197-13 water utility improvement account is created outside of the state
197-14 treasury.
197-15 (b) A civil or administrative penalty payable to the state
197-16 that is collected from a utility for a violation of this subchapter
197-17 shall be deposited in the account.
197-18 (c) The comptroller shall manage the account for the benefit
197-19 of the commission and shall invest the money and deposit interest
197-20 and other investment proceeds in the account. The comptroller
197-21 shall release money from the account in the manner provided by the
197-22 commission. Money in the account may be used only for:
197-23 (1) capital improvements to the water or sewer system
197-24 of a utility that has paid fines or penalties under this chapter or
197-25 under Chapter 13, Water Code, that have been deposited in the
198-1 account; or
198-2 (2) capital improvements and operating and maintenance
198-3 expenses for a utility placed in receivership or under a temporary
198-4 manager under Section 13.4132, Water Code.
198-5 (d) Money used under Subsection (c)(1) for a utility's
198-6 system may not exceed the amount of the civil or administrative
198-7 penalties the utility has paid. Capital improvements made with
198-8 money from the account may not be considered as invested capital
198-9 of the utility for any purpose. If the utility is sold to another
198-10 owner, a portion of the sales price equivalent to the percentage of
198-11 the used and useful facilities that were constructed with money
198-12 under Subsection (c)(1) shall be immediately distributed equally to
198-13 the current customers of the utility.
198-14 (e) Money used under Subsection (c)(2) may not be considered
198-15 as invested capital of the utility for any purpose.
198-16 (f) In this section, "utility" has the meaning assigned by
198-17 Section 13.002, Water Code.
198-18 SECTION 6.33. Subchapter L, Chapter 49, Water Code, is
198-19 amended by adding Section 49.352 to read as follows:
198-20 Sec. 49.352. MUNICIPAL SYSTEM IN UNSERVED AREA. (a) This
198-21 section applies only to a home-rule municipality that:
198-22 (1) is located in a county with a population of more
198-23 than 1.75 million that is adjacent to a county with a population of
198-24 more than 1 million; and
198-25 (2) has within its boundaries a part of a district.
199-1 (b) If a district does not establish a fire department under
199-2 this subchapter, a municipality that contains a part of the
199-3 district inside its boundaries may by ordinance or resolution
199-4 provide that a water system be constructed or extended into the
199-5 area that is in both the municipality and the district for the
199-6 delivery of potable water for fire flow that is sufficient to
199-7 support the placement of fire hydrants and the connection of the
199-8 water system to fire suppression equipment.
199-9 (c) For purposes of this section, a municipality may obtain
199-10 single certification in the manner provided by Section 13.255,
199-11 except that the municipality may file an application with the
199-12 commission to grant single certification immediately after the
199-13 municipality provides notice of intent to provide service as
199-14 required by Section 13.255(b).
199-15 ARTICLE 7. WATER DATA COLLECTION AND DISSEMINATION
199-16 SECTION 7.01. Section 16.012, Water Code, is amended to read
199-17 as follows:
199-18 Sec. 16.012. STUDIES, INVESTIGATIONS, SURVEYS. (a) The
199-19 executive administrator shall make studies, investigations, and
199-20 surveys of the occurrence, quantity, quality, and availability of
199-21 the surface water and groundwater of this state and shall, in
199-22 cooperation with other entities of the state, guide the development
199-23 of a statewide water resource data collection and dissemination
199-24 network. For these purposes the executive administrator [staff]
199-25 shall collect, receive, analyze, [and] process, and facilitate
200-1 access to basic data and summary information concerning [the] water
200-2 resources of the state and provide guidance regarding data formats
200-3 and descriptions required to access and understand Texas water
200-4 resource data.
200-5 (b) The executive administrator shall:
200-6 (1) determine suitable locations for future water
200-7 facilities, including reservoir sites;
200-8 (2) determine suitable, cost-effective water supply
200-9 alternatives on a regional basis, including voluntary means of
200-10 encouraging aggressive water conservation;
200-11 (3) locate land best suited for irrigation;
200-12 (4) [(3)] make estimates of the cost of proposed
200-13 irrigation works and the improvement of reservoir sites;
200-14 (5) [(4)] examine and survey reservoir sites; [and]
200-15 (6) monitor [(5) investigate] the effects of fresh
200-16 water inflows upon the bays and estuaries of Texas;
200-17 (7) monitor instream flows;
200-18 (8) lead a statewide effort, in coordination with
200-19 federal, state, and local governments, institutions of higher
200-20 education, and other interested parties, to develop a network for
200-21 collecting and disseminating water resource-related information
200-22 that is sufficient to support assessment of ambient water
200-23 conditions statewide;
200-24 (9) make recommendations for optimizing the efficiency
200-25 and effectiveness of water resource data collection and
201-1 dissemination as necessary to ensure that basic water resource data
201-2 are maintained and available for Texas; and
201-3 (10) make basic data and summary information developed
201-4 under this subsection accessible to state agencies and other
201-5 interested persons.
201-6 (c) In performing the duties required under Subdivisions
201-7 (1), (4), (5), (6), and (7) of Subsection (b), the executive
201-8 administrator shall consider advice from the Parks and Wildlife
201-9 Department.
201-10 (d) All entities of the state, including institutions of
201-11 higher education, that collect or use water data or information
201-12 shall cooperate with the board in the development of a coordinated,
201-13 efficient, and effective statewide water resource data collection
201-14 and dissemination network.
201-15 (e) The executive administrator shall keep full and proper
201-16 records of his work, observations, data, and calculations, all of
201-17 which are the property of the state.
201-18 (f) [(d)] In performing his duties under this section, the
201-19 executive administrator shall assist the commission in carrying out
201-20 the purposes and policies stated in Section 12.014 of this code.
201-21 (g) No later than December 31, 1999, the commission shall
201-22 obtain or develop an updated water availability model for six river
201-23 basins as determined by the commission. The commission shall
201-24 obtain or develop an updated water availability model for all
201-25 remaining river basins no later than December 31, 2001.
202-1 (h) Within 90 days of completing a water availability model
202-2 for a river basin, the commission shall provide to all holders of
202-3 existing permits, certified filings, and certificates of
202-4 adjudication in that river basin the projected amount of water that
202-5 would be available: during a drought of record; when flows are at
202-6 75 percent of normal; and when flows are at 50 percent of normal.
202-7 (i) Within 90 days of completing a water availability model
202-8 for a river basin, the commission shall provide to each regional
202-9 water planning group created under Section 16.053 of this code in
202-10 that river basin the projected amount of water that would be
202-11 available if cancellation procedures were instigated under the
202-12 provisions of Subchapter E, Chapter 11, of this code.
202-13 (j) Within 90 days of completing a water availability model
202-14 for a river basin, the commission, in coordination with the Parks
202-15 and Wildlife Department, shall determine the potential impact of
202-16 reusing municipal and industrial effluent on existing water rights,
202-17 instream uses, and freshwater inflows to bays and estuaries.
202-18 Within 30 days of making this determination, the commission shall
202-19 provide the projections to the board and each regional water
202-20 planning group created under Section 16.053 of this code in that
202-21 river basin.
202-22 SECTION 7.02. Section 16.021, Water Code, is amended to read
202-23 as follows:
202-24 Sec. 16.021. TEXAS NATURAL RESOURCES INFORMATION SYSTEM.
202-25 (a) The executive administrator shall establish the Texas Natural
203-1 Resources Information System (TNRIS) to serve Texas agencies and
203-2 citizens as a centralized clearinghouse and referral center for
203-3 natural resource, census, and other socioeconomic data [as a
203-4 centralized information system incorporating all Texas natural
203-5 resource data, socioeconomic data related to natural resources, or
203-6 indexes related to that data that is collected by state agencies or
203-7 other entities].
203-8 (b) The Texas Geographic Information Council (TGIC) [Natural
203-9 Resources Information System Task Force] is created to provide
203-10 strategic planning and coordination in the acquisition and use of
203-11 geo-spatial data and related technologies in the State of Texas.
203-12 The executive administrator and the executive director of the
203-13 Department of Information Resources shall designate entities to be
203-14 members of the TGIC. The chief administrative officer of each
203-15 member entity shall select one representative to serve on the TGIC.
203-16 The duties of the TGIC shall include providing guidance to the
203-17 executive administrator in carrying out his duties under this
203-18 section and guidance to the Department of Information Resources for
203-19 development of rules related to statewide geo-spatial data and
203-20 technology standards. [The task force is composed of one
203-21 representative from each state agency designated by the executive
203-22 administrator. The executive administrator shall designate a state
203-23 agency as a participant in the task force if the agency collects or
203-24 uses natural resource and related socioeconomic data.
203-25 Representatives of each designated agency shall be selected by the
204-1 chief administrative officer of that agency.]
204-2 (c) Under the guidance of the TGIC [Texas Natural Resources
204-3 Information System Task Force], the executive administrator shall:
204-4 (1) further develop [and implement] the Texas Natural
204-5 Resources Information System by promoting and providing for
204-6 effective acquisition, archiving, documentation, indexing, and
204-7 dissemination of natural resource and related digital and
204-8 nondigital data and information;
204-9 (2) obtain information in response to disagreements
204-10 regarding names and name spellings for natural and cultural
204-11 features in the state and provide this information to the Board on
204-12 Geographic Names of the United States Department of the Interior;
204-13 (3) make recommendations to the Board on Geographic
204-14 Names of the United States Department of the Interior for naming
204-15 any natural or cultural feature subject to the limitations provided
204-16 by Subsection (d) of this section;
204-17 (4) make recommendations to the Department of
204-18 Information Resources to adopt and promote standards that
204-19 facilitate sharing of digital natural resource data and related
204-20 socioeconomic data among federal, state, and local governments and
204-21 other interested parties;
204-22 (5) acquire and disseminate natural resource and
204-23 related socioeconomic data describing the Texas-Mexico border
204-24 region; and
204-25 (6) coordinate, conduct, and facilitate the
205-1 development, maintenance, and use of mutually compatible statewide
205-2 digital base maps depicting natural resources and man-made
205-3 features.
205-4 (d) A recommendation may not be made under Subdivision (3)
205-5 of Subsection (c) of this section for:
205-6 (1) a feature previously named under statutory
205-7 authority or recognized by an agency of the federal government, the
205-8 state, or a political subdivision of the state;
205-9 (2) a feature located on private property for which
205-10 consent of the property owner cannot be obtained; or
205-11 (3) naming a natural or cultural feature for a living
205-12 person.
205-13 SECTION 7.03. On September 1, 1997, the Texas Natural
205-14 Resources Information System Task Force and the Texas Geographic
205-15 Information Systems Planning Council are merged into the Texas
205-16 Geographic Information Council. All designated member agencies of
205-17 both predecessor entities shall continue to serve as member
205-18 agencies of the Texas Geographic Information Council.
205-19 ARTICLE 8. INTERIM COMMITTEE ON WATER RESOURCES
205-20 DEVELOPMENT AND MANAGEMENT
205-21 SECTION 8.01. CREATION AND COMPOSITION. (a) The Interim
205-22 Committee on Water Resources Development and Management is created
205-23 to study the state's water supply and wastewater infrastructure
205-24 needs.
205-25 (b) The committee consists of 10 members, of whom:
206-1 (1) five shall be appointed by the speaker of the
206-2 house of representatives from the members of the house of
206-3 representatives; and
206-4 (2) five shall be appointed by the lieutenant governor
206-5 from the members of the senate.
206-6 (c) The lieutenant governor and the speaker of the house of
206-7 representatives each shall appoint a presiding officer from among
206-8 the members appointed to the committee.
206-9 (d) The committee shall convene at the call of the two
206-10 presiding officers.
206-11 SECTION 8.02. DUTIES AND POWERS. (a) The committee is
206-12 specifically charged to review:
206-13 (1) Texas' current inventory of water resources,
206-14 including water supply and wastewater treatment infrastructure;
206-15 (2) projections for Texas' future water and wastewater
206-16 needs to the year 2050;
206-17 (3) the role of the state and regional and local
206-18 entities in participation and investment in water-related projects;
206-19 and
206-20 (4) the implementation of Senate Bill No. 1, Acts of
206-21 the 75th Legislature, Regular Session, 1997.
206-22 (b) In addition, the committee shall develop recommendations
206-23 to:
206-24 (1) assist Texas communities having limited financial
206-25 capabilities with their water supply and wastewater infrastructure
207-1 needs;
207-2 (2) ensure efficient allocation of state and local
207-3 resources through the use of regional water facilities and
207-4 management, including water market transactions; and
207-5 (3) help local governments to meet the financial costs
207-6 created by federal and state water quality regulations.
207-7 (c) The committee may travel around the state and hold
207-8 hearings or public meetings as needed to fulfill its duties under
207-9 this article.
207-10 (d) The Senate Committee on Natural Resources and the House
207-11 Committee on Natural Resources shall provide staff to the
207-12 committee.
207-13 SECTION 8.03. EXPENSES. The committee shall submit a
207-14 proposed budget to the appropriate committee on administration in
207-15 each house. The administrative committees shall jointly approve
207-16 the committee budget in an amount appropriate for the committee to
207-17 accomplish its duties under this article.
207-18 SECTION 8.04. REPORT. Not later than January 5, 1999, the
207-19 committee shall report to the governor, the lieutenant governor,
207-20 the speaker of the house of representatives, and members of the
207-21 76th Legislature the committee's findings and recommendations for
207-22 necessary legislation.
207-23 ARTICLE 9. REPEALER; EFFECTIVE DATE; SAVING; EMERGENCY
207-24 SECTION 9.01. Section 11.028, Water Code, is repealed.
207-25 SECTION 9.02. (a) Except as provided by Subsections (b)
208-1 through (f) of this section, this Act takes effect September 1,
208-2 1997.
208-3 (b) This section and Sections 2.03, 2.09, 2.10, 2.18, and
208-4 3.03 of this Act take effect immediately.
208-5 (c) Section 4.40 of this Act takes effect on the first day
208-6 of the first calendar quarter beginning on or after the date that
208-7 it may take effect under Section 39, Article III, Texas
208-8 Constitution.
208-9 (d) The change in law made by Section 4.40 of this Act to
208-10 Section 151.318, Tax Code, does not affect taxes imposed before the
208-11 effective date of Section 4.40 of this Act, and the law in effect
208-12 before the effective date of that section is continued in effect
208-13 for purposes of liability for and collection of those taxes.
208-14 (e) Sections 5.03 and 5.05 through 5.08 of this Act take
208-15 effect on the date on which the constitutional amendment proposed
208-16 by S.J.R. No. 17, 75th Legislature, Regular Session, 1997, takes
208-17 effect. If that amendment is not approved by the voters, those
208-18 sections have no effect.
208-19 (f) Section 5.11 of this Act takes effect on the date on
208-20 which the constitutional amendment proposed by S.J.R. No. 45, 75th
208-21 Legislature, Regular Session, 1997, takes effect. If that
208-22 amendment is not approved by the voters, that section has no
208-23 effect.
208-24 (g) The change in law made by Section 5.11 of this Act to
208-25 Subchapter B, Chapter 11, Tax Code, does not affect taxes imposed
209-1 before the effective date of Section 5.11 of this Act, and the law
209-2 in effect before the effective date of that section is continued in
209-3 effect for purposes of liability for and collection of those taxes.
209-4 SECTION 9.03. Section 11.0842, Water Code, as added by this
209-5 Act, and the changes to Sections 11.082 and 12.052, Water Code,
209-6 made by this Act are not applicable to any violation relating to
209-7 the construction of a dam or reservoir for domestic and livestock
209-8 purposes initiated before March 2, 1997, if a registration for
209-9 authorization is submitted to the Texas Natural Resource
209-10 Conservation Commission not later than September 1, 1999, unless
209-11 modifications other than repairs are made to the dam or reservoir
209-12 on or after March 2, 1997. On registration of the location,
209-13 approximate size, and date of completion of the dam or reservoir,
209-14 the commission shall issue a permit for the dam or reservoir
209-15 relating back to the date of completion of construction. The date
209-16 of completion of construction may be established by the submission
209-17 of competent evidence.
209-18 SECTION 9.04. (a) The requirement of Section 341.035,
209-19 Health and Safety Code, as amended by Section 6.20 of this Act,
209-20 that certain persons must provide the executive director of the
209-21 Texas Natural Resource Conservation Commission with a business
209-22 plan, applies only to the prospective owner or operator of a public
209-23 drinking water supply system for which construction begins on or
209-24 after September 1, 1997.
209-25 (b) Section 341.0355, Health and Safety Code, as added by
210-1 Section 6.20 of this Act, applies to the owner or operator of a
210-2 public drinking water supply system regardless of the date
210-3 construction of the system began.
210-4 SECTION 9.05. (a) A change in law made by this Act that
210-5 applies to a criminal, civil, or administrative penalty applies
210-6 only to an offense committed or a violation that occurs on or after
210-7 the effective date of this Act. For the purposes of this Act, an
210-8 offense is committed or a violation occurs before the effective
210-9 date of this Act if any element of the offense or violation occurs
210-10 before that date.
210-11 (b) An offense committed or violation that occurs before the
210-12 effective date of this Act is covered by the law in effect when the
210-13 offense was committed or the violation occurred, and the former law
210-14 is continued in effect for this purpose.
210-15 SECTION 9.06. An Act creating a groundwater conservation
210-16 district that requires a confirmation election enacted by the 71st,
210-17 72nd, 73rd, or 74th Legislature is repealed, effective on the
210-18 second anniversary of the effective date of this Act, unless the
210-19 district has been approved at a confirmation election before the
210-20 second anniversary of the effective date of this Act.
210-21 SECTION 9.07. The importance of this legislation and the
210-22 crowded condition of the calendars in both houses create an
210-23 emergency and an imperative public necessity that the
210-24 constitutional rule requiring bills to be read on three several
210-25 days in each house be suspended, and this rule is hereby suspended,
S.B. No. 1
211-1 and that this Act take effect and be in force according to its
211-2 terms, and it is so enacted.
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1 passed the Senate on
April 3, 1997, by the following vote: Yeas 31, Nays 0;
May 24, 1997, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 26, 1997, House
granted request of the Senate; June 1, 1997, Senate adopted
Conference Committee Report by the following vote: Yeas 31,
Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1 passed the House, with
amendments, on May 23, 1997, by a non-record vote; May 26, 1997,
House granted request of the Senate for appointment of Conference
Committee; June 1, 1997, House adopted Conference Committee Report
by the following vote: Yeas 140, Nays 4, one present not voting.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor