75R14023 MI-F
By Brown S.B. No. 1
Substitute the following for S.B. No. 1:
By Lewis of Orange C.S.S.B. No. 1
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the development and management of the water resources
1-3 of the state; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. WATER PLANNING: DROUGHT, CONSERVATION,
1-6 DEVELOPMENT, AND MANAGEMENT
1-7 SECTION 1.01. Section 16.051, Water Code, is amended to read
1-8 as follows:
1-9 Sec. 16.051. STATE WATER PLAN: DROUGHT, CONSERVATION,
1-10 DEVELOPMENT, AND MANAGEMENT; EFFECT OF PLAN. (a) No later than
1-11 September 1, 2001, and every five years thereafter, the board [The
1-12 executive administrator] shall adopt [prepare, develop, and
1-13 formulate] a comprehensive state water plan that incorporates the
1-14 regional water plans approved under Section 16.053 of this code.
1-15 The state water plan shall provide for the orderly development,
1-16 management, and conservation of water resources and preparation for
1-17 and response to drought conditions, in order that sufficient water
1-18 will be available at a reasonable cost to ensure public health,
1-19 safety, and welfare; further economic development; and protect the
1-20 agricultural and natural resources of the entire state.
1-21 (b) The state water plan, as formally adopted by the board,
1-22 shall be a guide to state water policy. The commission shall take
1-23 the plan into consideration in matters coming before it.
1-24 (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. [(c) The
2-16 executive administrator shall be governed in his preparation of the
2-17 plan by a regard for the public interest of the entire state. The
2-18 executive administrator shall direct his efforts toward the orderly
2-19 development and management of water resources in order that
2-20 sufficient water will be available at a reasonable cost to further
2-21 the economic development of the entire state.]
2-22 [(d) The executive administrator shall also give
2-23 consideration in the plan to the effect of upstream development on
2-24 the bays, estuaries, and arms of the Gulf of Mexico and to the
2-25 effect of the plan on navigation.]
2-26 SECTION 1.02. Sections 16.053 through 16.057, Water Code,
2-27 are amended to read as follows:
3-1 Sec. 16.053. REGIONAL WATER PLANS. (a) The regional water
3-2 planning group in each regional water planning area shall prepare a
3-3 regional water plan, using an existing state water plan identified
3-4 in Section 16.051 and local water plans prepared under Section
3-5 16.054 of this code as a guide, if present, that provides for the
3-6 orderly development, management, and conservation of water
3-7 resources and preparation for and response to drought conditions in
3-8 order that sufficient water will be available at a reasonable cost
3-9 to ensure public health, safety, and welfare; further economic
3-10 development; and protect the agricultural and natural resources of
3-11 that particular region.
3-12 (b) No later than September 1, 1998, the board shall
3-13 designate the areas for which regional water plans shall be
3-14 developed, taking into consideration such factors as river basin
3-15 and aquifer delineations, water utility development patterns,
3-16 socioeconomic characteristics, existing regional water planning
3-17 areas, political subdivision boundaries, public comment, and other
3-18 factors the board deems relevant. The board shall review and
3-19 update the designations as necessary but at least every five years.
3-20 (c) No later than 60 days after the designation of the
3-21 regions under Subsection (b) of this section, the board shall
3-22 designate representatives within each regional water planning area
3-23 to serve as the initial coordinating body for planning. The
3-24 initial coordinating body shall then designate additional
3-25 representatives to serve on the regional water planning group,
3-26 ensuring adequate representation from the interests comprising that
3-27 region, including but not limited to the public, counties,
4-1 municipalities, industries, agricultural interests, environmental
4-2 interests, small businesses, electric generating utilities, river
4-3 authorities, water districts, and water utilities.
4-4 (d) The board shall provide guidelines for the consideration
4-5 of existing regional planning efforts by regional water planning
4-6 groups. The board shall provide guidelines for the format in which
4-7 information shall be presented in the regional water plans.
4-8 Nothing in the initial planning effort shall prevent development of
4-9 a management plan or project where local or regional needs require
4-10 action prior to completion of the initial regional water plan under
4-11 this section.
4-12 (e) Each regional water planning group shall submit to the
4-13 board a regional water plan that:
4-14 (1) is consistent with the guidance principles for the
4-15 state water plan adopted by the board under Section 16.051(d) of
4-16 this code;
4-17 (2) provides information based on data provided or
4-18 approved by the board in a format consistent with the guidelines
4-19 provided by the board under Subsection (d) of this section;
4-20 (3) has specific provisions for water management
4-21 strategies to be used: during a drought of record; when flows are
4-22 at 75 percent of normal; and when flows are at 50 percent of
4-23 normal; and
4-24 (4) includes but is not limited to consideration of
4-25 the following:
4-26 (A) any existing water or drought planning
4-27 efforts addressing all or a portion of the region;
5-1 (B) certified groundwater conservation district
5-2 management plans and other plans submitted under Section 16.054 of
5-3 this code;
5-4 (C) all potentially feasible water management
5-5 strategies, including but not limited to improved conservation,
5-6 reuse, and management of existing water supplies, acquisition of
5-7 available existing water supplies, and development of new water
5-8 supplies;
5-9 (D) protection of existing water rights in the
5-10 region;
5-11 (E) opportunities for and the benefits of
5-12 developing regional water supply facilities or providing regional
5-13 management of water supply facilities;
5-14 (F) appropriate provision for environmental
5-15 water needs and for the effect of upstream development on the bays,
5-16 estuaries, and arms of the Gulf of Mexico and the effect of plans
5-17 on navigation;
5-18 (G) provisions in Section 11.085(h)(1) of this
5-19 code if interbasin transfers are contemplated;
5-20 (H) voluntary transfer of water within the
5-21 region using, but not limited to, regional water banks, sales,
5-22 leases, options, subordination agreements, and financing
5-23 agreements; and
5-24 (I) emergency transfer of water under Section
5-25 11.139, including information on the part of each permit, certified
5-26 filing, or certificate of adjudication for nonmunicipal use in the
5-27 region that may be transferred without causing unreasonable damage
6-1 to the property of the nonmunicipal water rights holder.
6-2 (f) No later than September 1, 1998, the board shall adopt
6-3 rules:
6-4 (1) to provide for the procedures for adoption of
6-5 regional water plans by regional water planning groups and for
6-6 approval of regional water plans by the board; and
6-7 (2) to govern procedures to be followed in carrying
6-8 out the responsibilities of this section.
6-9 (g) The board shall provide technical and financial
6-10 assistance to the regional water planning groups in the development
6-11 of their plans. The board shall simplify, as much as possible,
6-12 planning requirements in regions with abundant water resources.
6-13 The board, if requested, may facilitate resolution of conflicts
6-14 within regions.
6-15 (h)(1) Prior to the preparation of the regional water plan,
6-16 the regional water planning group shall, after notice, hold at
6-17 least one public meeting at some central location within the
6-18 regional planning area to gather suggestions and recommendations
6-19 from the public as to issues that should be addressed in the plan
6-20 or provisions that should be considered for inclusion in the plan.
6-21 (2) The regional water planning group shall provide an
6-22 ongoing opportunity for public input during the preparation of the
6-23 regional water plan.
6-24 (3) After the regional water plan is initially
6-25 prepared, the regional water planning group shall, after notice,
6-26 hold at least one public hearing at some central location within
6-27 the regional water planning area. The group shall make copies of
7-1 the plan available for public inspection at least one month before
7-2 the hearing by providing a copy of the plan in the county
7-3 courthouse and at least one public library of each county having
7-4 land in the region. Notice for the hearing shall include a listing
7-5 of these and any other location where the plan is available for
7-6 review.
7-7 (4) After the regional water plan is initially
7-8 prepared, the regional water planning group shall submit a copy of
7-9 the plan to the board. The board shall submit comments on the
7-10 regional water plan as to whether the plan meets the requirements
7-11 of Subsection (e) of this section.
7-12 (5) If no interregional conflicts exist, the regional
7-13 water planning group shall consider all public and board comments;
7-14 prepare, revise, and adopt the final plan; and submit the adopted
7-15 plan to the board for approval and inclusion in the state water
7-16 plan.
7-17 (6) If an interregional conflict exists, the board
7-18 shall facilitate coordination between the involved regions to
7-19 resolve the conflict. If conflict remains, the board shall resolve
7-20 the conflict. On resolution of the conflict, the involved regional
7-21 water planning groups shall prepare revisions to their respective
7-22 plans and hold, after notice, at least one public hearing at some
7-23 central location within their respective regional water planning
7-24 areas. The regional water planning groups shall consider all
7-25 public and board comments; prepare, revise, and adopt their
7-26 respective plans; and submit their plans to the board for approval
7-27 and inclusion in the state water plan.
8-1 (7) The board may approve a regional water plan only
8-2 after it has determined that all interregional conflicts involving
8-3 that regional water planning area have been resolved.
8-4 (i) The regional water planning groups shall submit their
8-5 adopted regional water plans to the board by September 1, 2000, for
8-6 approval and inclusion in the state water plan. In conjunction
8-7 with the submission of regional water plans, each planning group
8-8 should make legislative recommendations, if any, to facilitate more
8-9 voluntary water transfers in the region. Subsequent regional water
8-10 plans shall be submitted at least every five years thereafter.
8-11 Public participation for revised regional plans shall follow the
8-12 procedures under Subsection (h) of this section.
8-13 (j) The board may provide financial assistance to political
8-14 subdivisions under Subchapters E and F of this chapter and
8-15 Subchapters C, D, E, F, and J, Chapter 15, and Subchapters D, I, K,
8-16 and L, Chapter 17 of this code for water projects only if the board
8-17 determines that the needs to be addressed by the project will be
8-18 addressed in a manner consistent with an approved regional water
8-19 plan for the area in which the facility is to be located, unless
8-20 the board determines that conditions warrant waiver of this
8-21 requirement. [HEARING ON PRELIMINARY PLAN. (a) After the
8-22 executive administrator completes his preliminary planning of the
8-23 water resources development within a river basin, he shall hold a
8-24 public hearing, after notice, at some central location within the
8-25 river basin. If the proposed plan involves the transfer of water
8-26 from one basin to another, the hearing shall be held at some
8-27 location convenient to the areas affected.]
9-1 [(b) The executive administrator shall present the proposed
9-2 plan of development and hear evidence for and against the plan.]
9-3 [(c) After the hearing, the executive administrator shall
9-4 consider the effect the plan will have on the present and future
9-5 development, economy, general welfare, and water requirements of
9-6 the river basin or the areas affected.]
9-7 Sec. 16.054. LOCAL WATER PLANNING. (a) It is the policy of
9-8 the state that water resource management, water conservation, and
9-9 drought planning should occur on an ongoing basis. The board,
9-10 commission, and Parks and Wildlife Department shall make available
9-11 where appropriate technical and financial assistance for such
9-12 planning.
9-13 (b) Local plans may be submitted to the appropriate regional
9-14 water planning group for the area as follows:
9-15 (1) holders of existing permits, certified filings, or
9-16 certificates of adjudication for the appropriation of surface water
9-17 in the amount of 1,000 acre-feet a year or more may submit plans
9-18 required by Section 11.1271 of this code;
9-19 (2) retail and wholesale public water suppliers and
9-20 irrigation districts may submit plans required by Section 11.1272
9-21 of this code;
9-22 (3) groundwater districts may submit management plans
9-23 certified under Section 36.1072 of this code; and
9-24 (4) special districts may submit conservation or
9-25 management plans required by general or special law.
9-26 (c) The regional water planning group shall consider any
9-27 plan submitted under this section when preparing the regional water
10-1 plan under Section 16.053 of this code.
10-2 (d) When preparing a plan under this section, the person
10-3 should ensure that the plan is not in conflict with the applicable
10-4 approved regional water plan for the person's region. [HEARING ON
10-5 COMPLETED STATE WATER PLAN. When the executive administrator has
10-6 prepared and examined the completed preliminary plan, the board
10-7 shall hold a public hearing on the plan to determine whether or not
10-8 it gives adequate consideration to the protection of existing water
10-9 rights in this state and whether or not it takes into account modes
10-10 and procedures for the equitable adjustment of water rights
10-11 affected by the plan. After the hearing, the board may formally
10-12 adopt the state water plan. A majority vote is necessary for
10-13 adoption.]
10-14 Sec. 16.055. DROUGHT RESPONSE PLAN. (a) The division of
10-15 emergency management of the office of the governor shall be
10-16 responsible for coordinating the drought response component of the
10-17 state water plan.
10-18 (b) The drought response and monitoring committee is created
10-19 and shall meet as necessary to carry out the provisions of this
10-20 section. The committee is composed of one representative from each
10-21 of the following entities, appointed by the administrative head of
10-22 that entity:
10-23 (1) the division of emergency management in the office
10-24 of the governor;
10-25 (2) the board;
10-26 (3) the commission;
10-27 (4) the Parks and Wildlife Department;
11-1 (5) the Department of Agriculture;
11-2 (6) the Texas Agricultural Extension Service; and
11-3 (7) the State Soil and Water Conservation Board.
11-4 (c) The governor may designate any other person or a
11-5 representative of any other entity to serve on the committee.
11-6 (d) The representative of the division of emergency
11-7 management shall serve as chair of the committee.
11-8 (e) The committee shall be responsible for:
11-9 (1) the assessment and public reporting of drought
11-10 monitoring and water supply conditions;
11-11 (2) advising the governor on significant drought
11-12 conditions;
11-13 (3) recommending specific provisions for a defined
11-14 state response to drought-related disasters for inclusion in the
11-15 state emergency management plan and the state water plan;
11-16 (4) advising the regional water planning groups on
11-17 drought-related issues in the regional water plans; and
11-18 (5) ensuring effective coordination among state,
11-19 local, and federal agencies in drought-response planning.
11-20 (f) In performing its duties under this section, the drought
11-21 response and monitoring committee shall consider the following
11-22 factors when determining whether a drought exists for the purposes
11-23 of this section:
11-24 (1) meteorological conditions and forecasts;
11-25 (2) hydrological conditions and forecasts;
11-26 (3) water use and demand forecasts;
11-27 (4) water supply conditions and forecasts;
12-1 (5) the potential impacts of the water shortage
12-2 on: the public health, safety, and welfare; economic development;
12-3 and agricultural and natural resources; and
12-4 (6) other factors deemed appropriate by the committee.
12-5 [EFFECT OF PLAN. (a) The state water plan, as formally adopted by
12-6 the board, shall be a flexible guide to state policy for the
12-7 development of water resources in this state.]
12-8 [(b) The commission shall take the plan into consideration
12-9 in matters coming before it but is not bound by the plan.]
12-10 [(c) Nothing in the state water plan or any amendment or
12-11 modification of the plan affects any vested right existing before
12-12 August 30, 1965.]
12-13 Sec. 16.056. [AMENDMENT OF PLAN. (a) The board shall
12-14 review the plan biennially to consider any amendment or
12-15 modification that may be needed because of changed conditions.]
12-16 [(b) The board shall amend or modify the plan as experience
12-17 and changed conditions require after holding a public hearing on
12-18 any amendment or modification in the manner and for the purposes
12-19 provided by Section 16.054 of this code.]
12-20 [(c) Any amendment or modification adopted by the board
12-21 becomes a part of the plan.]
12-22 [Sec. 16.057.] FEDERAL ASSISTANCE IN FINANCING REGIONAL
12-23 WATER PLANS [PLAN]. The executive administrator may take all
12-24 necessary action to qualify for federal assistance in financing the
12-25 development and improvement of the regional water plans [plan].
12-26 SECTION 1.03. Subchapter D, Chapter 11, Water Code, is
12-27 amended by amending Sections 11.122 and 11.1271 and adding Section
13-1 11.1272 to read as follows:
13-2 Sec. 11.122. Amendments to Water Rights Required. (a) All
13-3 holders of permits, certified filings, and certificates of
13-4 adjudication issued under Section 11.323 of this code shall obtain
13-5 from the commission authority to change the place of use, purpose
13-6 of use, point of diversion, rate of diversion, acreage to be
13-7 irrigated, or otherwise alter a water right.
13-8 (b) An amendment shall be authorized if the requested change
13-9 will not cause adverse impact on other water right holders or the
13-10 environment on the stream of greater magnitude than under
13-11 circumstances in which the permit, certified filing, or certificate
13-12 of adjudication that is sought to be amended was fully exercised
13-13 according to its terms and conditions as they existed before the
13-14 requested amendment.
13-15 (c) The commission shall adopt rules to effectuate the
13-16 provisions of this section.
13-17 Sec. 11.1271. ADDITIONAL REQUIREMENTS: WATER CONSERVATION
13-18 PLANS. (a) The commission shall [may] require from an applicant
13-19 for a new or amended water right the formulation and submission of
13-20 a water conservation plan and the adoption of reasonable water
13-21 conservation measures, as defined by Subdivision (8)(B), Section
13-22 11.002, of this code.
13-23 (b) The commission shall require the holder of an existing
13-24 permit, certified filing, or certificate of adjudication for the
13-25 appropriation of surface water in the amount of 1,000 acre-feet a
13-26 year or more to develop, submit, and implement a water conservation
13-27 plan, consistent with the appropriate approved regional water plan,
14-1 that adopts reasonable water conservation measures as defined by
14-2 Subdivision (8)(B), Section 11.002, of this code. The requirement
14-3 for a water conservation plan under this section shall not result
14-4 in the need for an amendment to an existing permit, certified
14-5 filing, or certificate of adjudication.
14-6 (c) The commission shall adopt rules establishing criteria
14-7 and deadlines for submission of water conservation plans.
14-8 Sec. 11.1272. ADDITIONAL REQUIREMENT: DROUGHT CONTINGENCY
14-9 PLANS FOR CERTAIN APPLICANTS AND WATER RIGHT HOLDERS. (a) The
14-10 commission shall by rule require wholesale and retail public water
14-11 suppliers and irrigation districts to develop drought contingency
14-12 plans consistent with the appropriate approved regional water plan
14-13 to be implemented during periods of water shortages and drought.
14-14 (b) The wholesale and retail public water suppliers and
14-15 irrigation districts shall provide an opportunity for public input
14-16 during preparation of their drought contingency plans and before
14-17 submission of the plans to the commission.
14-18 SECTION 1.04. Section 15.401, Water Code, is amended to read
14-19 as follows:
14-20 Sec. 15.401. PROGRAM CREATION. The research and planning
14-21 program is created to provide money for research into and planning
14-22 of the proper conservation, management, and development of the
14-23 state's water resources, for regional planning by political
14-24 subdivisions, for facility engineering in economically distressed
14-25 areas, and for flood control planning by political subdivisions.
14-26 The program may also provide money for research and planning by
14-27 Texas political subdivisions related to the proper conservation,
15-1 management, and development of water resources of areas outside
15-2 Texas if such research or planning will result in water being
15-3 available for use in or for the benefit of Texas or will maintain
15-4 and enhance the quality of water in Texas.
15-5 SECTION 1.05. Section 15.404(a), Water Code, is amended to
15-6 read as follows:
15-7 (a) The board may enter into a contract with any person for
15-8 research into any matter relating to the conservation and
15-9 development of the state's water resources or for research by Texas
15-10 political subdivisions related to the proper conservation and
15-11 development of water resources of areas outside Texas if such
15-12 research will result in water being available for use in or for the
15-13 benefit of Texas or will help maintain and enhance the quality of
15-14 water in Texas.
15-15 SECTION 1.06. Section 15.406(f), Water Code, is amended to
15-16 read as follows:
15-17 (f) The board shall adopt rules establishing criteria of
15-18 eligibility for regional facility planning money that considers:
15-19 (1) the relative need of the political subdivision for
15-20 the money;
15-21 (2) the legal authority of the political subdivision
15-22 to plan, develop, and operate regional facilities; [and]
15-23 (3) the effect of regional facility planning by the
15-24 political subdivision on overall regional facility planning,
15-25 development, and operation in the state and within the area in
15-26 which the political subdivision is located; and
15-27 (4) the degree to which the regional facility planning
16-1 by the political subdivision is consistent with an approved
16-2 regional water plan for the area in which the political subdivision
16-3 is located.
16-4 SECTION 1.07. Subchapter F, Chapter 15, Water Code, is
16-5 amended by adding Section 15.4061 to read as follows:
16-6 Sec. 15.4061. FUNDING FOR REGIONAL WATER PLANS. (a) The
16-7 board may enter into contracts with political subdivisions
16-8 designated as representatives of a regional water planning group
16-9 under Section 16.053(c) of this code to pay from the research and
16-10 planning fund all or part of the cost of developing or revising
16-11 regional water plans as defined in Section 16.053 of this code.
16-12 (b) A political subdivision may submit, either individually
16-13 or jointly with other political subdivisions, a written application
16-14 to the board for the purpose of funding regional water planning
16-15 from the research and planning fund.
16-16 (c) The application shall be in the manner and form required
16-17 by board rules and include:
16-18 (1) the name of the political subdivision or political
16-19 subdivisions;
16-20 (2) a citation to the laws under which the political
16-21 subdivision was created and is operating, including specific
16-22 citation of all laws providing authority to develop and implement a
16-23 regional water plan;
16-24 (3) the amount requested from the board for regional
16-25 water planning; and
16-26 (4) any other relevant information required by the
16-27 board in its rules or specifically requested by the board.
17-1 (d) After notice and hearing, the board may award the
17-2 applicant all or part of the requested funds that the board
17-3 considers necessary for the political subdivision to carry out
17-4 regional water planning.
17-5 (e) If the board grants an application under this section
17-6 and awards funds for regional water planning, the board shall enter
17-7 into a contract with the political subdivision or political
17-8 subdivisions that includes:
17-9 (1) a detailed statement of the purpose for which the
17-10 money is to be used;
17-11 (2) the total amount of money to be paid by the board
17-12 from the research and planning fund under the contract; and
17-13 (3) any other terms and conditions required by the
17-14 board's rules or agreed to by the contracting parties.
17-15 (f) The board shall adopt rules establishing criteria for
17-16 eligibility for regional water planning money that include:
17-17 (1) the relative need of the political subdivision for
17-18 the money;
17-19 (2) the legal authority of the political subdivision
17-20 to develop and implement a regional water plan; and
17-21 (3) the degree to which regional water planning by the
17-22 political subdivision or political subdivisions will address the
17-23 water supply needs in the regional water planning area.
17-24 (g) The board shall require that regional water plans
17-25 developed or revised under contracts entered into under this
17-26 section be made available to the commission and the Parks and
17-27 Wildlife Department.
18-1 SECTION 1.08. (a) Except as provided by Subsection (b), the
18-2 state water plan in effect on the effective date of this Act
18-3 remains in effect until a new state water plan is adopted under
18-4 Section 16.051(a), Water Code, as amended by Section 1.01 of this
18-5 Act.
18-6 (b) The state water plan shall include ongoing water
18-7 development projects that have been issued a permit by the Texas
18-8 Natural Resource Conservation Commission or a predecessor agency
18-9 for a regional water supply planning study.
18-10 ARTICLE 2. WATER MANAGEMENT, MARKETING, AND TRANSFERS
18-11 SECTION 2.01. Section 791.026, Government Code, is amended
18-12 to read as follows:
18-13 Sec. 791.026. CONTRACTS FOR WATER SUPPLY AND WASTEWATER
18-14 TREATMENT FACILITIES. (a) A municipality, district, or river
18-15 authority of this state may contract with another municipality,
18-16 district, or river authority of this state to obtain or provide
18-17 part or all of:
18-18 (1) water supply or wastewater treatment facilities;
18-19 or
18-20 (2) a lease or operation of water supply facilities or
18-21 wastewater treatment facilities.
18-22 (b) The contract may provide that the municipality,
18-23 district, or river authority obtaining one of the services may not
18-24 obtain those services from a source other than a contracting party,
18-25 except as provided by the contract.
18-26 (c) If a contract includes a term described by Subsection
18-27 (b), payments made under the contract are the paying party's
19-1 operating expenses for its water supply system, wastewater
19-2 treatment facilities, or both.
19-3 (d) The contract may:
19-4 (1) contain terms and extend for any period on which
19-5 the parties agree; [and]
19-6 (2) require the purchaser to develop alternative or
19-7 replacement supplies prior to the expiration date of the contract
19-8 and may provide for enforcement of such terms by court order; and
19-9 (3) provide that it will continue in effect until
19-10 bonds specified by the contract and any refunding bonds issued to
19-11 pay those bonds are paid.
19-12 (e) Where a contract sets forth explicit expiration
19-13 provisions, no continuation of the service obligation will be
19-14 implied.
19-15 (f) Tax revenue may not be pledged to the payment of amounts
19-16 agreed to be paid under the contract.
19-17 (g) [(f)] The powers granted by this section prevail over a
19-18 limitation contained in another law.
19-19 SECTION 2.02. Section 11.002, Water Code, is amended by
19-20 amending Subdivision (4) and adding Subdivisions (9) and (10) to
19-21 read as follows:
19-22 (4) "Beneficial use" means use of the amount of water
19-23 which is economically necessary for a purpose authorized by this
19-24 chapter, when reasonable intelligence and reasonable diligence are
19-25 used in applying the water to that purpose and shall include
19-26 conserved water.
19-27 (9) "Conserved water" means that amount of water saved
20-1 by a holder of an existing permit, certified filing, or certificate
20-2 of adjudication through practices, techniques, and technologies
20-3 that would otherwise be irretrievably lost to all consumptive
20-4 beneficial uses arising from storage, transportation, distribution,
20-5 or application.
20-6 (10) "Surplus water" means water in excess of the
20-7 initial or continued beneficial use of the appropriator.
20-8 SECTION 2.03. Section 11.023(e), Water Code, is amended to
20-9 read as follows:
20-10 (e) The amount of water appropriated for each purpose
20-11 mentioned in this section shall be specifically appropriated for
20-12 that purpose, subject to the preferences prescribed in Section
20-13 11.024 of this code. The commission may authorize appropriation of
20-14 a single amount or volume of water for more than one purpose of
20-15 use. In the event that a single amount or volume of water is
20-16 appropriated for more than one purpose of use, the total amount of
20-17 water actually diverted for all of the authorized purposes may not
20-18 exceed the total amount of water appropriated.
20-19 SECTION 2.04. Section 11.036, Water Code, is amended to read
20-20 as follows:
20-21 Sec. 11.036. CONSERVED OR STORED WATER: SUPPLY CONTRACT.
20-22 (a) A person, association of persons, corporation, or water
20-23 improvement or irrigation district having in possession and control
20-24 any storm water, floodwater, or rainwater that is conserved or
20-25 stored as authorized by this chapter may contract to supply the
20-26 water to any person, association of persons, corporation, or water
20-27 improvement or irrigation district having the right to acquire use
21-1 of the water.
21-2 (b) The price and terms of the contract shall be just and
21-3 reasonable and without discrimination, and the contract is subject
21-4 to the same revision and control as provided in this code for other
21-5 water rates and charges. If the contract sets forth explicit
21-6 expiration provisions, no continuation of the service obligation
21-7 will be implied.
21-8 (c) The terms of a contract may expressly provide that the
21-9 person using the stored or conserved water is required to develop
21-10 alternative or replacement supplies prior to the expiration of the
21-11 contract and may further provide for enforcement of such terms by
21-12 court order.
21-13 (d) If any person uses the stored or conserved water without
21-14 first entering into a contract with the party that conserved or
21-15 stored it, the user shall pay for the use at a rate determined by
21-16 the commission to be just and reasonable, subject to court review
21-17 as in other cases.
21-18 SECTION 2.05. Section 11.042, Water Code, is amended to read
21-19 as follows:
21-20 Sec. 11.042. DELIVERING WATER DOWN BANKS AND BEDS.
21-21 (a) Under rules prescribed by the commission, a person,
21-22 association of persons, corporation, [or] water control and
21-23 improvement district, water improvement district, or irrigation
21-24 district supplying stored or conserved water under contract as
21-25 provided in this chapter may use the bank and bed of any flowing
21-26 natural stream in the state to convey the water from the place of
21-27 storage to the place of use or to the diversion point [plant] of
22-1 the appropriator. [The commission shall prescribe rules for this
22-2 purpose.]
22-3 (b) A person who wishes to discharge and then subsequently
22-4 divert and reuse the person's existing return flows derived from
22-5 privately owned groundwater must obtain prior authorization from
22-6 the commission for the diversion and the reuse of these return
22-7 flows. The authorization may allow for the diversion and reuse by
22-8 the discharger of existing return flows, less carriage losses, and
22-9 shall be subject to special conditions if necessary to protect an
22-10 existing water right that was granted based on the use or
22-11 availability of these return flows. Special conditions may also be
22-12 provided to help maintain instream uses and freshwater inflows to
22-13 bays and estuaries. A person wishing to divert and reuse future
22-14 increases of return flows derived from privately owned groundwater
22-15 may obtain authorization to reuse increases in return flows before
22-16 the increase.
22-17 (c) Except as otherwise provided in this section, a person
22-18 who wishes to convey and subsequently divert water in a watercourse
22-19 or stream must obtain the prior approval of the commission through
22-20 a bed and banks authorization. The authorization shall allow to be
22-21 diverted only the amount of water put into a watercourse or stream,
22-22 less carriage losses and subject to any special conditions that may
22-23 address the impact of the discharge, conveyance, and diversion on
22-24 existing permits, certified filings, or certificates of
22-25 adjudication, instream uses, and freshwater inflows to bays and
22-26 estuaries. Water discharged into a watercourse or stream under
22-27 this chapter shall not cause a degradation of water quality to the
23-1 extent that the stream segment's classification would be lowered.
23-2 Authorizations under this section and water quality authorizations
23-3 may be approved in a consolidated permit proceeding.
23-4 (d) Nothing in this section shall be construed to affect an
23-5 existing project for which water rights and reuse authorizations
23-6 have been granted by the commission before September 1, 1997.
23-7 SECTION 2.06. Section 11.046, Water Code, is amended to read
23-8 as follows:
23-9 Sec. 11.046. RETURN SURPLUS [UNUSED] WATER. (a) A person
23-10 who takes or diverts water from a watercourse or [running] stream
23-11 for the purposes authorized by this code shall conduct surplus
23-12 water back to the watercourse or stream from which it was taken if
23-13 the water can be returned by gravity flow and it is reasonably
23-14 practicable to do so.
23-15 (b) In granting an application for a water right, the
23-16 commission may include conditions in the water right providing for
23-17 the return of surplus water, in a specific amount or percentage of
23-18 water diverted, and the return point on a watercourse or stream as
23-19 necessary to protect senior downstream permits, certified filings,
23-20 or certificates of adjudication or to provide flows for instream
23-21 uses or bays and estuaries.
23-22 (c) Except as specifically provided otherwise in the water
23-23 right, water appropriated under a permit, certified filing, or
23-24 certificate of adjudication may, prior to its release into a
23-25 watercourse or stream, be beneficially used and reused by the
23-26 holder of a permit, certified filing, or certificate of
23-27 adjudication for the purposes and locations of use provided in the
24-1 permit, certified filing, or certificate of adjudication. Once
24-2 water has been diverted under a permit, certified filing, or
24-3 certificate of adjudication and then returned to a watercourse or
24-4 stream, however, it is considered surplus water and therefore
24-5 subject to reservation for instream uses or beneficial inflows or
24-6 to appropriation by others unless expressly provided otherwise in
24-7 the permit, certified filing, or certificate of adjudication.
24-8 (d) Water appropriated under a permit, certified filing, or
24-9 certificate of adjudication which is recirculated within a
24-10 reservoir for cooling purposes shall not be considered to be
24-11 surplus for purposes of this chapter.
24-12 SECTION 2.07. Section 11.085, Water Code, is amended to read
24-13 as follows:
24-14 Sec. 11.085. INTERBASIN [INTERWATERSHED] TRANSFERS. (a) No
24-15 person may take or divert any state [of the] water from a river
24-16 basin [of the ordinary flow, underflow, or storm flow of any
24-17 stream, watercourse, or watershed] in this state and transfer such
24-18 water to [into] any other river basin [natural stream, watercourse,
24-19 or watershed to the prejudice of any person or property situated
24-20 within the watershed from which the water is proposed to be taken
24-21 or diverted.]
24-22 [(b) No person may transfer water from one watershed to
24-23 another] without first applying for and receiving a water right or
24-24 an amendment to a permit, certified filing, or certificate of
24-25 adjudication [permit] from the commission authorizing the transfer
24-26 [to do so. Before issuing such a permit, the commission shall hold
24-27 a hearing to determine the rights that might be affected by the
25-1 transfer. The commission shall give notice and hold the hearing in
25-2 the manner prescribed by its procedural rules].
25-3 (b) Prior to taking action on an application for an
25-4 interbasin transfer, the commission shall conduct at least one
25-5 public meeting to receive comments in both the basin of origin of
25-6 the water proposed for transfer and the basin receiving water from
25-7 the proposed transfer. Notice shall be provided pursuant to
25-8 Subsection (e) of this section. Any person may present relevant
25-9 information and data at the meeting on the criteria which the
25-10 commission is to consider related to the interbasin transfer.
25-11 (c) In addition to the public meetings required by
25-12 Subsection (b) of this section, if the application is contested in
25-13 a manner requiring an evidentiary hearing under the rules of the
25-14 commission, the commission shall give notice and hold an
25-15 evidentiary hearing, in accordance with commission rules and
25-16 applicable state law.
25-17 (d) Notice of an application for an interbasin transfer
25-18 shall be mailed to the following:
25-19 (1) all holders of permits, certified filings, or
25-20 certificates of adjudication located in whole or in part in the
25-21 basin of origin or the receiving basin;
25-22 (2) each county judge of a county located in whole or
25-23 in part in the basin of origin or the receiving basin;
25-24 (3) each mayor of a city with a population of 1,000 or
25-25 more located in whole or in part in the basin of origin or the
25-26 receiving basin; and
25-27 (4) all groundwater conservation districts located in
26-1 whole or in part in the basin of origin or the receiving basin.
26-2 (e) The applicant shall cause the notice of application for
26-3 an interbasin transfer to be published once a week for two
26-4 consecutive weeks in one or more newspapers having general
26-5 circulation in each county located in whole or in part in the basin
26-6 of origin or the receiving basin. The published notice may not be
26-7 smaller than 96.8 square centimeters or 15 square inches with the
26-8 shortest dimension at least 7.6 centimeters or three inches. The
26-9 notice of application and public meetings shall be combined in the
26-10 mailed and published notices.
26-11 (f) The applicant shall pay the cost of notice required to
26-12 be provided under this section. The commission by rule may
26-13 establish procedures for payment of those costs.
26-14 (g) In addition to other requirements of this code relating
26-15 to the review of and action on an application for a new water right
26-16 or amended permit, certified filing, or certificate of
26-17 adjudication, the commission shall:
26-18 (1) request review and comment on an application for
26-19 an interbasin transfer from each county judge of a county located
26-20 in whole or in part in the basin of origin. A county judge should
26-21 make comment only after seeking advice from the county
26-22 commissioners court; and
26-23 (2) give consideration to the comments of each county
26-24 judge of a county located in whole or in part in the basin of
26-25 origin prior to taking action on an application for an interbasin
26-26 transfer.
26-27 (h) In addition to other requirements of this code relating
27-1 to the review of and action on an application for a new water right
27-2 or amended permit, certified filing, or certificate of
27-3 adjudication, the commission shall weigh the effects of the
27-4 proposed transfer by considering:
27-5 (1) the need for the water in the basin of origin and
27-6 in the proposed receiving basin based on the period for which the
27-7 water supply is requested, but not to exceed 50 years;
27-8 (2) factors identified in the applicable approved
27-9 regional water plans which address the following:
27-10 (A) the availability of feasible and practicable
27-11 alternative supplies in the receiving basin to the water proposed
27-12 for transfer;
27-13 (B) the amount and purposes of use in the
27-14 receiving basin for which water is needed;
27-15 (C) proposed methods and efforts by the
27-16 receiving basin to avoid waste and implement water conservation and
27-17 drought contingency measures;
27-18 (D) proposed methods and efforts by the
27-19 receiving basin to put the water proposed for transfer to
27-20 beneficial use;
27-21 (E) the projected economic impact that is
27-22 reasonably expected to occur in each basin as a result of the
27-23 transfer; and
27-24 (F) the projected impacts of the proposed
27-25 transfer that are reasonably expected to occur on existing instream
27-26 uses, water quality, aquatic and riparian habitat, and bays and
27-27 estuaries that must be assessed under Sections 11.147, 11.150, and
28-1 11.152 of this code in each basin. If the water sought to be
28-2 transferred is currently authorized to be used under an existing
28-3 permit, certified filing, or certificate of adjudication, such
28-4 impacts shall only be considered in relation to that portion of the
28-5 permit, certified filing, or certificate of adjudication proposed
28-6 for transfer and shall be based on historical uses of the permit,
28-7 certified filing, or certificate of adjudication for which
28-8 amendment is sought;
28-9 (3) compensation required by the commission to be paid
28-10 by the applicant for the benefit of the basin of origin under
28-11 Section 11.0851 and any mitigation or compensation to the basin of
28-12 origin included in a contract for transfer as authorized by
28-13 Subsection (m) of this section; and
28-14 (4) the continued need to use the water for the
28-15 purposes authorized under the existing permit, certified filing, or
28-16 certificate of adjudication, if an amendment to an existing water
28-17 right is sought.
28-18 (i) The commission may grant, in whole or in part, an
28-19 application for an interbasin transfer only to the extent that:
28-20 (1) the detriments to the basin of origin during the
28-21 proposed transfer period are less than the benefits to the
28-22 receiving basin during the proposed transfer period; and
28-23 (2) the applicant for the interbasin transfer has
28-24 prepared a drought contingency plan and has developed and
28-25 implemented a water conservation plan that will result in the
28-26 highest practicable levels of water conservation and efficiency
28-27 achievable within the jurisdiction of the applicant.
29-1 (j) The commission may grant new or amended water rights
29-2 under this section with or without specific terms or periods of use
29-3 and with specific conditions under which a transfer of water may
29-4 occur.
29-5 (k) This section does not apply to:
29-6 (1) a proposed transfer in combination with any
29-7 existing transfers of less than 3,000 acre-feet of water per annum
29-8 from the same permit, certified filing, or certificate of
29-9 adjudication; or
29-10 (2) a request for an emergency transfer of water; or
29-11 (3) a proposed transfer from a basin to its adjoining
29-12 coastal basin.
29-13 (l) If the transfer of water is based on a contractual sale
29-14 of water, the new water right or amended permit, certified filing,
29-15 or certificate of adjudication authorizing the transfer shall
29-16 contain a condition for a term or period not greater than the
29-17 contract term.
29-18 (m) The parties to a contract for an interbasin transfer may
29-19 include provisions for compensation and mitigation. If the party
29-20 from the basin of origin is a government entity, each county judge
29-21 of a county located in whole or in part in the basin of origin may
29-22 provide input on the appropriate compensation and mitigation for
29-23 the interbasin transfer.
29-24 (n) For the purposes of this section, a basin is designated
29-25 as provided in accordance with Section 16.051 of this code. A
29-26 basin may not be redesignated in order to allow a transfer or
29-27 diversion of water otherwise in violation of this section.
30-1 (o) [(c)] A person who takes or diverts water in violation
30-2 of this section is guilty of a misdemeanor and upon conviction is
30-3 punishable by a fine of not [less than $100 nor] more than $10,000
30-4 [$500] or by confinement in the county jail for not more than six
30-5 months.
30-6 (p) [(d)] A person commits a separate offense each day he
30-7 continues to take or divert water in violation of this section.
30-8 (q) Any proposed transfer of all or a portion of a water
30-9 right under this section is junior in priority to water rights
30-10 granted before the time application for transfer is accepted for
30-11 filing.
30-12 (r) An appropriator of water for municipal purposes in the
30-13 basin of origin may, at the appropriator's option, be a party in
30-14 any hearings under this section.
30-15 SECTION 2.08. Section 11.124(a), Water Code, is amended to
30-16 read as follows:
30-17 (a) An application to appropriate unappropriated state water
30-18 must:
30-19 (1) be in writing and sworn to;
30-20 (2) contain the name and post-office address of the
30-21 applicant;
30-22 (3) identify the source of water supply;
30-23 (4) state the nature and purposes of the proposed use
30-24 or uses and the amount of water to be used for each purpose;
30-25 (5) state the location and describe the proposed
30-26 facilities;
30-27 (6) state the time within which the proposed
31-1 construction is to begin; [and]
31-2 (7) state the time required for the application of
31-3 water to the proposed use or uses; and
31-4 (8) contain the name and address of the holder of any
31-5 lien on:
31-6 (A) any water right permit, certified filing, or
31-7 certificate of adjudication to be granted under the permit for
31-8 which application is made; or
31-9 (B) any land to which that water right permit,
31-10 certified filing, or certificate of adjudication would be
31-11 appurtenant.
31-12 SECTION 2.09. Section 11.135(b), Water Code, is amended to
31-13 read as follows:
31-14 (b) The permit shall be in writing and attested by the seal
31-15 of the commission, and it shall contain substantially the following
31-16 information:
31-17 (1) the name of the person to whom the permit is
31-18 issued;
31-19 (2) the date the permit is issued;
31-20 (3) the date the original application was filed;
31-21 (4) the use or purpose for which the appropriation is
31-22 to be made;
31-23 (5) the amount or volume of water authorized to be
31-24 appropriated for each purpose; if use of the appropriated water is
31-25 authorized for multiple purposes, the permit shall contain a
31-26 special condition limiting the total amount of water that may
31-27 actually be diverted for all of the purposes to the amount of water
32-1 appropriated;
32-2 (6) a general description of the source of supply from
32-3 which the appropriation is proposed to be made;
32-4 (7) the time within which construction or work must
32-5 begin and the time within which it must be completed; and
32-6 (8) any other information the commission prescribes.
32-7 SECTION 2.10. Section 11.142(a), Water Code, is amended to
32-8 read as follows:
32-9 (a) Without obtaining a permit, a person may construct on
32-10 his own property a dam or reservoir with normal storage of [to
32-11 impound or contain] not more than 200 acre-feet of water for
32-12 domestic and livestock purposes.
32-13 SECTION 2.11. Sections 11.176 and 11.177, Water Code, are
32-14 amended to read as follows:
32-15 Sec. 11.176. HEARING. (a) Except as provided by Subsection
32-16 (b) of this section, the [The] commission shall hold a hearing and
32-17 shall give the holder of the permit, certified filing, or
32-18 certificate of adjudication and other interested persons an
32-19 opportunity to be heard and to present evidence on any matter
32-20 pertinent to the questions at issue.
32-21 (b) A hearing on the cancellation of a permit, certified
32-22 filing, or certificate of adjudication as provided by this chapter
32-23 is unnecessary if the right to such hearing is expressly waived by
32-24 the affected holder of a permit, certified filing, or certificate
32-25 of adjudication.
32-26 (c) A permit, certified filing, or certificate of
32-27 adjudication for a term does not vest in the holder of a permit,
33-1 certified filing, or certificate of adjudication any right to the
33-2 diversion, impoundment, or use of water for longer than the term of
33-3 the permit, certified filing, or certificate of adjudication and
33-4 shall expire and be cancelled in accordance with its terms without
33-5 further need for notice or hearing.
33-6 Sec. 11.177. COMMISSION FINDING; ACTION. (a) At the
33-7 conclusion of the hearing, the commission shall cancel the permit,
33-8 certified filing, or certificate of adjudication in whole or in
33-9 part to the extent that it finds that:
33-10 (1) the water or any portion of the water appropriated
33-11 under the permit, certified filing, or certificate of adjudication
33-12 has not been put to an authorized beneficial use during the 10-year
33-13 period; and
33-14 (2) the holder has not used reasonable diligence in
33-15 applying the water or the unused portion of the water to an
33-16 authorized beneficial use or is otherwise unjustified in the
33-17 nonuse[; and]
33-18 [(3) the holder has not been justified in the nonuse
33-19 or does not then have a bona fide intention of putting the water or
33-20 the unused portion of the water to an authorized beneficial use
33-21 within a reasonable time after the hearing].
33-22 (b) In determining what constitutes reasonable diligence or
33-23 a justified nonuse [and a reasonable time] as used in Subsection
33-24 (a)(2) [(a)(3)] of this section, the commission shall give
33-25 consideration to:
33-26 (1) whether sufficient water is available in the
33-27 source of supply to meet all or part of the appropriation during
34-1 the 10-year period of nonuse;
34-2 (2) whether the nonuse is justified by the holder's
34-3 participation in the federal Conservation Reserve Program or a
34-4 similar governmental program as provided by Section 11.173(b)(1) of
34-5 this code;
34-6 (3) whether the permit, certified filing, or
34-7 certificate of adjudication was obtained to meet demonstrated
34-8 long-term public water supply or electric generation needs as
34-9 evidenced by a water management plan developed by the holder and
34-10 consistent with projections of future water needs contained in the
34-11 state water plan;
34-12 (4) whether the permit, certified filing, or
34-13 certificate of adjudication was obtained as the result of the
34-14 construction of a reservoir funded, in whole or in part, by the
34-15 holder of the permit, certified filing, or certificate of
34-16 adjudication as part of the holder's long-term water planning;
34-17 (5) whether the existing or proposed authorized
34-18 purpose and place of use are consistent with an approved regional
34-19 water plan as provided by Section 16.053 of this code;
34-20 (6) whether the permit, certified filing, or
34-21 certificate of adjudication has been deposited into the Texas Water
34-22 Bank as provided by Sections 15.7031 and 15.704 of this code or
34-23 whether it can be shown that the water right or water available
34-24 under the right is currently being made available for purchase
34-25 through private marketing efforts; or
34-26 (7) whether the permit, certified filing, or
34-27 certificate of adjudication has been reserved to provide for
35-1 instream flows or bay and estuary inflows [the expenditures made or
35-2 obligations incurred by the holder in connection with the permit,
35-3 certified filing, or certificate of adjudication;]
35-4 [(2) the purpose to which the water is to be applied;]
35-5 [(3) the priority of the purpose;]
35-6 [(4) the amount of time usually necessary to put water
35-7 to a beneficial use for the same purpose when diligently developed;
35-8 and]
35-9 [(5) whether at all times during the 10-year period
35-10 there was rainfall adequate to enable the use of all or part of the
35-11 water authorized to be appropriated under the permit, certified
35-12 filing, or certificate of adjudication].
35-13 SECTION 2.12. Section 15.701, Water Code, is amended to read
35-14 as follows:
35-15 Sec. 15.701. Definitions. In this subchapter:
35-16 (1) "Deposit" means the placement of a water right or
35-17 the right to use water in the water bank for transfer.
35-18 (2) "Depositor" means a person who deposits or has on
35-19 deposit a water right in the water bank.
35-20 (3) "Person" includes but is not limited to any
35-21 individual, corporation, organization, government, or governmental
35-22 subdivision or agency, including the board, business trust, estate,
35-23 trust, partnership, association, and any other legal entity.
35-24 (4) "Transfer" means the conveyance of a water right
35-25 or the right to use water under a water right in any of the
35-26 following manners:
35-27 (A) the conveyance of legal title to a water
36-1 right; or
36-2 (B) a contract or option contract to allow use
36-3 of a water right.
36-4 (5) "Trust" means the Texas Water Trust.
36-5 (6) "Water bank" or "bank" means the Texas Water Bank.
36-6 (7) [(6)] "Water right" means a right acquired or
36-7 authorized under the laws of this state to impound, divert, or use
36-8 state water, underground water, or water from any source to the
36-9 extent authorized by law.
36-10 SECTION 2.13. Section 15.702, Water Code, is amended to read
36-11 as follows:
36-12 Sec. 15.702. Creation of Bank. The Texas Water Development
36-13 Board shall establish the Texas Water Bank. The board shall
36-14 administer the water bank to facilitate water transactions [the
36-15 transfer of water from all sources as necessary] to provide sources
36-16 of adequate water supplies for use within the State of Texas.
36-17 SECTION 2.14. Section 15.703(a), Water Code, is amended to
36-18 read as follows:
36-19 (a) The board may take all actions necessary to operate the
36-20 water bank and to facilitate the transfer of water rights from the
36-21 water bank for future beneficial use including but not limited to:
36-22 (1) negotiating a sale price and terms acceptable to
36-23 the depositor and purchaser;
36-24 (2) maintaining a registry of water bank deposits and
36-25 those water users in need of additional supplies;
36-26 (3) informing water users in need of additional supply
36-27 of water rights available in the bank;
37-1 (4) encouraging water right holders to implement water
37-2 conservation practices and deposit the right to use the conserved
37-3 water into the bank;
37-4 (5) establishing requirements for deposit of a water
37-5 right into the water bank including minimum terms for deposit;
37-6 (6) purchasing, holding, and selling water rights in
37-7 its own name;
37-8 (7) establishing regional water banks; [and]
37-9 (8) acting as a clearinghouse for water marketing
37-10 information including water availability, pricing of water
37-11 transactions, environmental considerations, and potential buyers
37-12 and sellers of water rights;
37-13 (9) preparing and publishing a manual on structuring
37-14 water transactions;
37-15 (10) accepting and holding donations of water rights
37-16 to meet instream, water quality, fish and wildlife habitat, or bay
37-17 and estuary inflow needs; and
37-18 (11) other actions to facilitate water transactions
37-19 [transfers].
37-20 SECTION 2.15. Subchapter K, Chapter 15, Water Code, is
37-21 amended by adding Section 15.7031 to read as follows:
37-22 Sec. 15.7031. TEXAS WATER TRUST. (a) The Texas Water Trust
37-23 is established within the water bank to hold water rights dedicated
37-24 to environmental needs, including instream flows, water quality,
37-25 fish and wildlife habitat, or bay and estuary inflows.
37-26 (b) The board, in consultation with the Parks and Wildlife
37-27 Department and the commission, shall adopt rules governing the
38-1 process for holding and transferring water rights.
38-2 (c) The dedication of any water rights placed in trust must
38-3 be reviewed and approved by the commission, in consultation with
38-4 the board and the Parks and Wildlife Department.
38-5 (d) Water rights may be held in the trust for a term
38-6 specified by contractual agreement or in perpetuity.
38-7 SECTION 2.16. Section 15.704, Water Code, is amended by
38-8 amending Subsection (a) and adding Subsection (c) to read as
38-9 follows:
38-10 (a) A [Up to 50 percent of a] water right may be deposited
38-11 in the water bank for an initial term of up to 10 years, unless
38-12 otherwise held in the Texas Water Trust as established under
38-13 Section 15.7031 of this code, during which time the water right is
38-14 exempt from cancellation by the commission under the terms of
38-15 Subchapter E of Chapter 11 of this code. A water right is exempt
38-16 from cancellation under this subsection only once even if it has
38-17 been transferred or redeposited.
38-18 (c) A contract or option contract to allow use of a water
38-19 right under this subchapter:
38-20 (1) may include a requirement that the purchaser show
38-21 diligence in pursuing feasible and practicable alternative water
38-22 supplies; and
38-23 (2) does not vest any right in the purchaser beyond
38-24 the stated terms and conditions of the contract or option contract.
38-25 SECTION 2.17. (a) All permits approved by the Texas Natural
38-26 Resource Conservation Commission before the effective date of this
38-27 Act that allow the multiple use of the appropriation of a specific
39-1 amount of water and which are no longer subject to appeal are
39-2 validated in all respects as if they originally had been legally
39-3 authorized or accomplished.
39-4 (b) This article does not apply to an application for an
39-5 interbasin transfer filed and pending before March 2, 1997. Any
39-6 subsequent renewals of such applications shall be subject to the
39-7 provisions of this Act.
39-8 (c) Nothing in this Act shall affect the validity of any
39-9 interbasin transfer permitted or authorized before the effective
39-10 date of this Act.
39-11 ARTICLE 3. EMERGENCY AUTHORIZATIONS; ENFORCEMENT
39-12 SECTION 3.01. Section 11.082(a), Water Code, is amended to
39-13 read as follows:
39-14 (a) A person who wilfully takes, diverts, or appropriates
39-15 state water without complying with the applicable requirements of
39-16 this chapter is also liable to a civil penalty of not more than
39-17 $10,000 [$1,000] for each day he continues the taking, diversion,
39-18 or appropriation.
39-19 SECTION 3.02. Subchapter C, Chapter 11, Water Code, is
39-20 amended by adding Sections 11.0841, 11.0842, and 11.0843 to read as
39-21 follows:
39-22 Sec. 11.0841. CIVIL REMEDY. (a) Nothing in this chapter
39-23 affects the right of any private corporation, individual, or
39-24 political subdivision that has a justiciable interest in pursuing
39-25 any available common-law remedy to enforce a right or to prevent or
39-26 seek redress or compensation for the violation of a right or
39-27 otherwise redress an injury.
40-1 (b) A district court may award the costs of litigation,
40-2 including reasonable attorney fees and expert costs, to any
40-3 political subdivision of the state, private corporation, or
40-4 individual that is a water right holder and that prevails in a suit
40-5 for injunctive relief to redress an unauthorized diversion,
40-6 impoundment, or use of surface water in violation of this chapter
40-7 or a rule adopted pursuant to this chapter.
40-8 Sec. 11.0842. ADMINISTRATIVE PENALTY. (a) If a person
40-9 violates this chapter, a rule or order adopted under this chapter
40-10 or Section 16.236 of this code, or a permit, certified filing, or
40-11 certificate of adjudication issued under this chapter, the
40-12 commission may assess an administrative penalty against that person
40-13 as provided by this section. This section and Section 12.052 of
40-14 this code are not applicable to any violation resulting from the
40-15 failure to obtain a permit for the construction of a dam or
40-16 reservoir for domestic and livestock purposes initiated prior to
40-17 March 2, 1997, if a registration for authorization is submitted to
40-18 the commission within two years of the effective date of this
40-19 section, unless modifications other than repairs are made to the
40-20 dam or reservoir after March 2, 1997. On registration of the
40-21 location, approximate size, and date of completion of the dam or
40-22 reservoir, the commission shall issue a permit for the dam or
40-23 reservoir relating back to the date of completion of construction.
40-24 The date of completion of construction may be established by the
40-25 submission of competent evidence.
40-26 (b) The penalty may be in an amount not to exceed $10,000
40-27 for each day the person is in violation of this chapter, the rule
41-1 or order adopted under this chapter or Section 16.236 of this code,
41-2 or the permit, certified filing, or certificate of adjudication
41-3 issued under this chapter. Each day a violation continues may be
41-4 considered a separate violation for purposes of penalty assessment.
41-5 (c) In determining the amount of the penalty, the commission
41-6 shall consider:
41-7 (1) the nature, circumstances, extent, duration, and
41-8 gravity of the prohibited acts, with special emphasis on the
41-9 impairment of an existing permit, certified filing, or certificate
41-10 of adjudication or the hazard or potential hazard created to the
41-11 health, safety, or welfare of the public;
41-12 (2) the impact of the violation on the instream uses,
41-13 water quality, fish and wildlife habitat, or beneficial freshwater
41-14 inflows to bays and estuaries;
41-15 (3) with respect to the alleged violator:
41-16 (A) the history and extent of previous
41-17 violations;
41-18 (B) the degree of culpability, including whether
41-19 the violation was attributable to mechanical or electrical failures
41-20 and whether the violation could have been reasonably anticipated
41-21 and avoided;
41-22 (C) demonstrated good faith, including actions
41-23 taken by the alleged violator to rectify the cause of the violation
41-24 and to compensate affected persons;
41-25 (D) any economic benefit gained through the
41-26 violation; and
41-27 (E) the amount necessary to deter future
42-1 violations; and
42-2 (4) any other matters that justice may require.
42-3 (d) If, after examination of a possible violation and the
42-4 facts surrounding that possible violation, the executive director
42-5 concludes that a violation has occurred, the executive director
42-6 shall issue a preliminary report stating the facts on which that
42-7 conclusion was based, recommending that an administrative penalty
42-8 under this section be imposed on the person charged, and
42-9 recommending the amount of the penalty. The executive director
42-10 shall base the recommended amount of the proposed penalty on the
42-11 factors provided by Subsection (c) of this section and shall
42-12 analyze each factor for the benefit of the commission.
42-13 (e) No later than the 10th day after the date on which the
42-14 report is issued, the executive director shall give written notice
42-15 of the report to the person charged with the violation. The notice
42-16 shall include a brief summary of the charges, a statement of the
42-17 amount of the penalty recommended, and a statement of the right of
42-18 the person charged to a hearing on the occurrence of the violation,
42-19 the amount of the penalty, or both the occurrence of the violation
42-20 and the amount of the penalty.
42-21 (f) No later than the 20th day after the date on which
42-22 notice is received, the person charged may either give to the
42-23 commission written consent to the executive director's report,
42-24 including the recommended penalty, or make a written request for a
42-25 hearing.
42-26 (g) If the person charged with the violation consents to the
42-27 penalty recommended by the executive director or fails to timely
43-1 respond to the notice, the commission by order shall either assess
43-2 the penalty or order a hearing to be held on the findings and
43-3 recommendations in the executive director's report. If the
43-4 commission assesses the penalty recommended by the report, the
43-5 commission shall give written notice of its decision to the person
43-6 charged.
43-7 (h) If the person charged requests or the commission orders
43-8 a hearing, the commission shall call a hearing and give notice of
43-9 the hearing. As a result of the hearing, the commission by order
43-10 either may find that a violation has occurred and may assess a
43-11 penalty, may find that a violation has occurred but that no penalty
43-12 should be assessed, or may find that no violation has occurred.
43-13 All proceedings under this subsection are subject to Chapter 2001,
43-14 Government Code. In making any penalty decision, the commission
43-15 shall analyze each of the factors provided by Subsection (c) of
43-16 this section.
43-17 (i) The commission shall give notice of its decision to the
43-18 person charged, and if the commission finds that a violation has
43-19 occurred and assesses an administrative penalty, the commission
43-20 shall give written notice to the person charged of its findings, of
43-21 the amount of the penalty, and of the person's right to judicial
43-22 review of the commission's order. If the commission is required to
43-23 give notice of a penalty under this subsection or Subsection (g) of
43-24 this section, the commission shall file notice of its decision in
43-25 the Texas Register not later than the 10th day after the date on
43-26 which the decision is adopted.
43-27 (j) Within the 30-day period immediately following the day
44-1 on which the commission's order is final, as provided by Subchapter
44-2 F, Chapter 2001, Government Code, the person charged with the
44-3 penalty shall:
44-4 (1) pay the penalty in full;
44-5 (2) pay the amount of the penalty and file a petition
44-6 for judicial review contesting the occurrence of the violation, the
44-7 amount of the penalty, or both the occurrence of the violation and
44-8 the amount of the penalty; or
44-9 (3) without paying the amount of the penalty, file a
44-10 petition for judicial review contesting the occurrence of the
44-11 violation, the amount of the penalty, or both the occurrence of the
44-12 violation and the amount of the penalty.
44-13 (k) Within the 30-day period, a person who acts under
44-14 Subsection (j)(3) of this section may:
44-15 (1) stay enforcement of the penalty by:
44-16 (A) paying the amount of the penalty to the
44-17 court for placement in an escrow account; or
44-18 (B) giving to the court a supersedeas bond that
44-19 is approved by the court for the amount of the penalty and that is
44-20 effective until all judicial review of the commission's order is
44-21 final; or
44-22 (2) request the court to stay enforcement of the
44-23 penalty by:
44-24 (A) filing with the court a sworn affidavit of
44-25 the person stating that the person is financially unable to pay the
44-26 amount of the penalty and is financially unable to give the
44-27 supersedeas bond; and
45-1 (B) giving a copy of the affidavit to the
45-2 commission by certified mail.
45-3 (l) If the commission receives a copy of an affidavit under
45-4 Subsection (k)(2) of this section, it may file with the court
45-5 within five days after the date the copy is received a contest to
45-6 the affidavit. The court shall hold a hearing on the facts alleged
45-7 in the affidavit as soon as practicable and shall stay the
45-8 enforcement of the penalty on finding that the alleged facts are
45-9 true. The person who files an affidavit has the burden of proving
45-10 that the person is financially unable to pay the amount of the
45-11 penalty and to give a supersedeas bond.
45-12 (m) If the person does not pay the amount of the penalty and
45-13 the enforcement of the penalty is not stayed, the commission may
45-14 refer the matter to the attorney general for collection of the
45-15 amount of the penalty.
45-16 (n) Judicial review of the order or decision of the
45-17 commission assessing the penalty shall be under the substantial
45-18 evidence rule and shall be instituted by filing a petition with a
45-19 district court in Travis County, as provided by Subchapter G,
45-20 Chapter 2001, Government Code.
45-21 (o) A penalty collected under this section shall be
45-22 deposited in the state treasury to the credit of the general
45-23 revenue fund.
45-24 (p) Notwithstanding any other provision to the contrary, the
45-25 commission may compromise, modify, or remit, with or without
45-26 condition, any penalty imposed under this section.
45-27 (q) Payment of an administrative penalty under this section
46-1 shall be full and complete satisfaction of the violation for which
46-2 the administrative penalty is assessed and shall preclude any other
46-3 civil or criminal penalty for the same violation.
46-4 Sec. 11.0843. FIELD CITATION. (a) Upon witnessing a
46-5 violation of this chapter or a rule or order or a water right
46-6 issued under this chapter, a watermaster or the watermaster's
46-7 deputy, as defined by commission rule, may issue the alleged
46-8 violator a field citation alleging that a violation has occurred
46-9 and providing the alleged violator the option of either:
46-10 (1) without admitting to or denying the alleged
46-11 violation, paying an administrative penalty in accordance with the
46-12 predetermined penalty amount established under Subsection (b) of
46-13 this section and taking remedial action as provided in the
46-14 citation; or
46-15 (2) requesting a hearing on the alleged violation in
46-16 accordance with Section 11.0842 of this code.
46-17 (b) By rule the commission shall establish penalty amounts
46-18 corresponding to types of violations of this chapter or rules or
46-19 orders adopted or water rights issued under this chapter.
46-20 (c) A penalty collected under this section shall be
46-21 deposited in the state treasury to the credit of the general
46-22 revenue fund.
46-23 SECTION 3.03. Section 11.139, Water Code, is amended to read
46-24 as follows:
46-25 Sec. 11.139. EMERGENCY AUTHORIZATIONS [PERMITS].
46-26 (a) Except as provided by Section 11.148 of this code, the [The]
46-27 commission may grant an emergency permit, order, or amendment to an
47-1 existing permit, certified filing, or certificate of adjudication
47-2 after notice to the governor [for the diversion and use of water]
47-3 for an initial [a] period of not more than 120 [30] days if the
47-4 commission [it] finds that emergency conditions exist which present
47-5 an imminent threat to [threaten] the public health and[,] safety[,
47-6 and welfare] and which override the necessity to comply with
47-7 established statutory procedures and there are no feasible
47-8 practicable alternatives to the emergency authorization. Such
47-9 emergency action may be renewed once for not longer than 60 days.
47-10 (b) A person desiring to obtain an emergency authorization
47-11 under this section shall submit to the commission a sworn
47-12 application containing the following information:
47-13 (1) a description of the condition of emergency
47-14 justifying the granting of the emergency authorization;
47-15 (2) a statement setting forth facts which support the
47-16 findings required under this section;
47-17 (3) an estimate of the dates on which the proposed
47-18 authorization should begin and end;
47-19 (4) a description of the action sought and the
47-20 activity proposed to be allowed, mandated, or prohibited; and
47-21 (5) any other statements or information required by
47-22 the commission.
47-23 (c) If the commission finds the applicant's statement made
47-24 under Subsection (b) of this section to be correct, the commission
47-25 may grant emergency authorizations under this section without
47-26 notice and hearing or with such notice and hearing as the
47-27 commission considers practicable under the circumstances.
48-1 (d) If the commission grants an emergency authorization
48-2 under this section without a hearing, the authorization shall fix a
48-3 time and place for a hearing to be held before the commission. The
48-4 hearing shall be held as soon after the emergency authorization is
48-5 granted as is practicable but not later than 20 days after the
48-6 emergency authorization is granted.
48-7 (e) At the hearing, the commission shall affirm, modify, or
48-8 set aside the emergency authorization. Any hearing on an emergency
48-9 authorization shall be conducted in accordance with Chapter 2001,
48-10 Government Code, and rules of the commission.
48-11 (f) If an imminent threat to the public health and safety
48-12 exists which requires emergency action before the commission can
48-13 take action as provided by Subsections (a) through (c) of this
48-14 section and there are no feasible alternatives, the executive
48-15 director may grant an emergency authorization after notice to the
48-16 governor. If the executive director issues an emergency
48-17 authorization under this subsection, the commission shall hold a
48-18 hearing as provided for in Subsections (d) and (e) of this section.
48-19 The requirements of Subsection (b) of this section shall be
48-20 satisfied by the applicant before action is taken by the executive
48-21 director on the request for emergency authorization.
48-22 (g) The requirements of Section 11.132 of this code relating
48-23 to the time for notice, newspaper notice, and method of giving a
48-24 person notice do not apply to a hearing held on an application for
48-25 an emergency authorization under this section, but such general
48-26 notice of the hearing shall be given as the commission, under
48-27 Subsections (c) and (e) of this section, considers practicable
49-1 under the circumstances.
49-2 (h) The commission may grant an emergency authorization
49-3 under this section for the temporary transfer and use of all or
49-4 part of a permit, certified filing, or certificate of adjudication
49-5 for other than domestic or municipal use to a retail or wholesale
49-6 water supplier for public health and safety purposes. In addition
49-7 to the requirements contained in Subsection (b) of this section,
49-8 the commission may direct that the applicant will timely pay the
49-9 amounts for which the applicant may be potentially liable under
49-10 Subsection (i) of this section and to the extent authorized by law
49-11 will fully indemnify and hold harmless the state, the executive
49-12 director, and the commission from any and all liability for the
49-13 authorization sought. The commission may order bond or other
49-14 surety in a form acceptable to the commission as a condition for
49-15 such emergency authorization. The commission may not grant an
49-16 emergency authorization under this section which would cause a
49-17 violation of a federal regulation.
49-18 (i) The person granted an emergency authorization under
49-19 Subsection (h) of this section is liable to the owner and the
49-20 owner's agent or lessee from whom the use is transferred for the
49-21 fair market value of the water transferred as well as for any
49-22 damages caused by the transfer of use. If, within 60 days of the
49-23 termination of the authorization, the parties do not agree on the
49-24 amount due, or if full payment is not made, either party may file a
49-25 complaint with the commission to determine the amount due. The
49-26 commission may use dispute resolution procedures for a complaint
49-27 filed under this subsection. After exhausting all administrative
50-1 remedies under this subsection, an owner from whom the use is
50-2 transferred may file suit to recover or determine the amount due in
50-3 a district court in the county where the owner resides or has its
50-4 headquarters. The prevailing party in a suit filed under this
50-5 subsection is entitled to recover court costs and reasonable
50-6 attorney's fees.
50-7 (j) [An emergency permit may be granted for a period of not
50-8 more than 30 days, and no extension or additional emergency permit
50-9 may be granted at the expiration of the original permit.]
50-10 [(c) An emergency permit may be granted under this section
50-11 without the necessity to comply with statutory and other procedures
50-12 required for granting other permits issued by the commission.]
50-13 [(d)] The commission may prescribe rules and adopt fees
50-14 which are necessary to carry out the provisions of this section.
50-15 (k) [(e)] An emergency authorization [permit] does not vest
50-16 in the grantee [permittee] any right to the diversion, impoundment,
50-17 or [and] use of water and shall expire and be cancelled in
50-18 accordance with its terms.
50-19 SECTION 3.04. Section 12.052(c), Water Code, is amended to
50-20 read as follows:
50-21 (c) If the owner of a dam that is required to be
50-22 constructed, reconstructed, repaired, or removed in order to comply
50-23 with the rules and orders promulgated under Subsection (a) of this
50-24 section wilfully fails or refuses to comply within the 30-day
50-25 period following the date of the commission's final, nonappealable
50-26 order to do so or if a person wilfully fails to comply with any
50-27 rule or other order issued by the commission under this section
51-1 within the 30-day period following the effective date of the order,
51-2 he is liable to a penalty of not more than $10,000 [$1,000] a day
51-3 for each day he continues to violate this section. The state may
51-4 recover the penalty by suit brought for that purpose in the
51-5 district court of Travis County.
51-6 SECTION 3.05. Section 16.236, Water Code, is amended to read
51-7 as follows:
51-8 Sec. 16.236. CONSTRUCTION OF LEVEE WITHOUT APPROVAL OF
51-9 PLANS; LEVEE SAFETY. (a) No person may construct, attempt to
51-10 construct, cause to be constructed, maintain, or cause to be
51-11 maintained any levee or other such improvement on, along, or near
51-12 any stream of this state that is subject to floods, freshets, or
51-13 overflows so as to control, regulate, or otherwise change the
51-14 floodwater of the stream without first obtaining approval of the
51-15 plans by the commission.
51-16 (b) The commission shall make and enforce rules and orders
51-17 and shall perform all other acts necessary to provide for the safe
51-18 construction, maintenance, repair, and removal of levees located in
51-19 this state.
51-20 (c) If the owner of a levee that is required to be
51-21 constructed, reconstructed, repaired, or removed to comply with the
51-22 rules and orders promulgated under this section wilfully fails or
51-23 refuses to comply within the 30-day period following the date of an
51-24 order of the commission requiring such action or compliance or if a
51-25 person wilfully fails to comply with any rule or order issued by
51-26 the commission under this section within the 30-day period
51-27 following the effective date of the order, the person is liable for
52-1 a penalty of not more than $10,000 a day for each day the person
52-2 continues to violate this section. The state may recover the
52-3 penalty by suit brought for that purpose in a district court of
52-4 Travis County.
52-5 (d) If the commission determines that the existing condition
52-6 of a levee is creating or will cause extensive or severe property
52-7 damage or economic loss to others or is posing an immediate and
52-8 serious threat to human life or health and that other procedures
52-9 available to the commission to remedy or prevent such property
52-10 damage or economic loss will result in unreasonable delay, the
52-11 commission may issue an emergency order, either mandatory or
52-12 prohibitory in nature, directing the owner of the levee to repair,
52-13 modify, maintain, dewater, or remove the levee which the commission
52-14 determines is unsafe. The emergency order may be issued without
52-15 notice to the levee owner or with notice the commission considers
52-16 practicable under the circumstances.
52-17 (e) If the commission issues an emergency order under
52-18 authority of this section without notice to the levee owner, the
52-19 commission shall fix a time and place for a hearing, to be held as
52-20 soon as practicable but not later than 20 days after the emergency
52-21 order is authorized, to affirm, modify, or set aside the emergency
52-22 order. If the nature of the commission's action requires further
52-23 proceedings, those proceedings shall be conducted, as appropriate,
52-24 under Chapter 2001, Government Code.
52-25 (f) Nothing in this section or in rules or orders adopted by
52-26 the commission shall be construed to relieve an owner or operator
52-27 of a levee of the legal duties, obligations, or liabilities
53-1 incident to ownership or operation.
53-2 (g) Any person who violates any provision of Subsection (a)
53-3 of this section is guilty of a Class C misdemeanor and upon
53-4 conviction is punishable by a fine of not more than $4,000 [$100].
53-5 A separate offense is committed each day a structure constructed in
53-6 violation of this section is maintained.
53-7 (h) Subsection (a) of this [(c) At the request of the
53-8 executive director, the attorney general shall file suit in a
53-9 district court of Travis County to enjoin any violation or
53-10 threatened violation of this section. In the suit, the attorney
53-11 general may seek to have the illegal levee or other improvement
53-12 removed and the preexisting conditions restored and may also
53-13 collect civil penalties of up to $100 a day for each day a
53-14 violation occurs.]
53-15 [(d) This] section does not apply to:
53-16 (1) any dam, reservoir, or canal system associated
53-17 with a water right issued or recognized by the commission [dams
53-18 permitted by the commission or recognized as valid by final decree
53-19 in any proceeding begun under Subchapter G, Chapter 11, of this
53-20 code];
53-21 (2) dams authorized by Section 11.142 of this code;
53-22 (3) a levee or other improvement within the corporate
53-23 limits of a city or town provided: (a) plans for the construction
53-24 or maintenance or both must be approved by the city or town as a
53-25 condition precedent to starting the project and (b) the city or
53-26 town requires that such plans be in substantial compliance with
53-27 rules and standards adopted by the commission; [or]
54-1 (4) a levee or other improvement within the boundaries
54-2 of any political subdivision which has qualified for the National
54-3 Flood Insurance Program as authorized by the National Flood
54-4 Insurance Act of 1968 (Title 42, U.S.C., Sections 4001-4127)
54-5 provided: (a) plans for the construction or maintenance or both
54-6 must be approved by the political subdivision which is
54-7 participating in the national flood insurance program as a
54-8 condition precedent to starting the project and (b) the political
54-9 subdivision requires that such plans be in substantial compliance
54-10 with rules and standards adopted by the commission;
54-11 (5) projects implementing soil and water conservation
54-12 practices set forth in a conservation plan with a landowner or
54-13 operator and approved by the governing board of a soil and water
54-14 conservation district organized under the State Soil Conservation
54-15 Law, as amended (Article 165a-4, Vernon's Texas Civil Statutes),
54-16 provided that the governing board finds the practices do not
54-17 significantly affect stream flooding conditions on, along, or near
54-18 a state stream; or
54-19 (6) any levee or other improvement constructed outside
54-20 of the 100-year floodway. For the purposes of this section,
54-21 "100-year floodway" is defined as the channel of a stream and the
54-22 adjacent land areas that must be reserved in order to discharge the
54-23 100-year flood without cumulatively increasing the water surface
54-24 elevation more than one foot above the 100-year flood elevation
54-25 prior to encroachment.
54-26 (i) [(e)] On projects located within the corporate limits of
54-27 a city or town or within the boundaries of any political
55-1 subdivision which are exempt from the provisions of Subsection (a)
55-2 of this section by Subdivision (3) or (4) of Subsection (h) of this
55-3 section [(d) above], any person whose property is located outside
55-4 of the corporate limits of such city or town or of the boundaries
55-5 of such a political subdivision and whose property is affected or
55-6 potentially affected by the effect of the project on the
55-7 floodwaters of the stream may appeal the decision of such political
55-8 subdivision. The appeal shall be in writing and shall specify the
55-9 grounds therefor and a copy shall be sent by certified mail to the
55-10 project applicant and to the city or town or such political
55-11 subdivision. The timely filing of such an appeal with the
55-12 executive director suspends the decision of the city or town or
55-13 political subdivision until a final decision is rendered by the
55-14 commission. The executive director shall review the complaint and
55-15 investigate the facts surrounding the nature of the complaint. If
55-16 the executive director finds that the complaint is frivolous or
55-17 nonmeritorious or made solely for purposes of harassment or delay,
55-18 then he shall dismiss the appeal. Otherwise, the executive
55-19 director shall refer the appeal to the commission which shall after
55-20 due notice hold a hearing to determine whether the project should
55-21 be approved using the standards established by the commission and
55-22 shall hear such appeal de novo under the procedural rules
55-23 established by the commission for other reclamation projects.
55-24 SECTION 3.06. Subchapter G, Chapter 16, Water Code, is
55-25 amended by adding Section 16.237 to read as follows:
55-26 Sec. 16.237. ADMINISTRATIVE PENALTY; CIVIL REMEDY. (a) If
55-27 a person violates a commission rule or order adopted under Section
56-1 16.236 of this code, the commission may assess an administrative
56-2 penalty against that person as provided by Section 11.0842 of this
56-3 code.
56-4 (b) Nothing in this chapter affects the right of any private
56-5 corporation, individual, or political subdivision that has a
56-6 justiciable interest in pursuing any available common-law remedy to
56-7 enforce a right or to prevent or seek redress or compensation for
56-8 the violation of a right or otherwise redress an injury.
56-9 ARTICLE 4. SURFACE WATER AND GROUNDWATER SUPPLIES
56-10 SECTION 4.01. Section 11.134(b), Water Code, is amended to
56-11 read as follows:
56-12 (b) The commission shall grant the application only if:
56-13 (1) the application conforms to the requirements
56-14 prescribed by this chapter and is accompanied by the prescribed
56-15 fee;
56-16 (2) unappropriated water is available in the source of
56-17 supply;
56-18 (3) the proposed appropriation:
56-19 (A) is intended for a [contemplates the
56-20 application of water to any] beneficial use;
56-21 (B) does not impair existing water rights or
56-22 vested riparian rights; [and]
56-23 (C) is not detrimental to the public welfare;
56-24 [and]
56-25 (D) considers the effects of any hydrological
56-26 connection between surface water and groundwater; and
56-27 (E) addresses a water supply need in a manner
57-1 that is consistent with the state water plan and an approved
57-2 regional water plan for any area in which the proposed
57-3 appropriation is located, unless the commission determines that
57-4 conditions warrant waiver of this requirement; and
57-5 (4) the applicant has provided evidence that
57-6 reasonable diligence will be used to avoid waste and achieve water
57-7 conservation as defined by Subdivision (8)(B), Section 11.002, of
57-8 this code.
57-9 SECTION 4.02. Subchapter D, Chapter 11, Water Code, is
57-10 amended by adding Sections 11.1501 and 11.151 to read as follows:
57-11 Sec. 11.1501. CONSIDERATION AND REVISION OF PLANS. In
57-12 considering an application for a permit to store, take, or divert
57-13 surface water, or for an amendment to a permit, certified filing,
57-14 or certificate of adjudication, the commission shall consider the
57-15 state water plan and any approved regional water plan for the area
57-16 or areas in which the water is proposed to be stored, diverted, or
57-17 used.
57-18 Sec. 11.151. EFFECTS OF PERMITS ON GROUNDWATER. In
57-19 considering an application for a permit to store, take, or divert
57-20 surface water, the commission shall consider the effects, if any,
57-21 on groundwater or groundwater recharge.
57-22 SECTION 4.03. Section 11.153, Water Code, is amended by
57-23 amending the section heading and Subsections (a) and (d) to read as
57-24 follows:
57-25 Sec. 11.153. [PILOT] PROJECTS FOR STORAGE OF APPROPRIATED
57-26 WATER IN AQUIFERS. (a) The commission shall investigate the
57-27 feasibility of storing appropriated water in various types of
58-1 aquifers around the state by encouraging the issuance of temporary
58-2 or term permits for [pilot] demonstration projects for the storage
58-3 of appropriated water for subsequent retrieval and beneficial use
58-4 [in the following aquifers in the specified counties:]
58-5 [(1) the Anacacho, Austin Chalk, and Glen Rose
58-6 Limestone aquifers in Bexar County and Medina County;]
58-7 [(2) the Carrizo-Wilcox aquifer in Bexar, Webb, Smith,
58-8 Wood, Rains, and Van Zandt counties;]
58-9 [(3) the Hickory and Ellenberger aquifers in Gillespie
58-10 County; and]
58-11 [(4) the Gulf Coast aquifer in Cameron and Hidalgo
58-12 counties].
58-13 (d) The commission shall only issue a [A] final order
58-14 granting a permit or amendment to a permit authorizing the storage
58-15 of appropriated water in aquifers for subsequent beneficial use
58-16 where completed pilot projects or historically demonstrated
58-17 projects have been shown to be feasible under the criteria provided
58-18 in Sections 11.154(c) and (d)[, other than for the pilot projects
58-19 authorized by this section, may not be issued before June 1, 1999].
58-20 SECTION 4.04. Sections 11.154(a), (b), (c), and (e), Water
58-21 Code, are amended to read as follows:
58-22 (a) An application filed with the commission to undertake a
58-23 [pilot] project under Section 11.153 must include:
58-24 (1) the information required for an application for a
58-25 permit or permit amendment to appropriate state water;
58-26 (2) all information required for an application for a
58-27 permit for a Class V injection well without requiring a separate
59-1 hearing or notice; and
59-2 (3) a map or plat showing the injection facility and
59-3 the aquifer in which the water will be stored.
59-4 (b) If the application is for a permit or permit amendment
59-5 to store appropriated water in a groundwater [an underground water]
59-6 reservoir or a subdivision of a groundwater [an underground water]
59-7 reservoir, as defined by Chapter 36 [52], that is under the
59-8 jurisdiction of a groundwater [an underground water] conservation
59-9 district:
59-10 (1) the applicant shall:
59-11 (A) provide a copy of the application to each
59-12 groundwater [underground water] conservation district that has
59-13 jurisdiction over the reservoir or subdivision;
59-14 (B) cooperate with each district [the districts]
59-15 that has [have] jurisdiction over the reservoir or subdivision to
59-16 ensure compliance with the rules of each district;
59-17 (C) cooperate with each district that has
59-18 jurisdiction over the reservoir or subdivision to develop rules
59-19 regarding the injection, storage, and withdrawal of appropriated
59-20 water stored in the aquifer; and
59-21 (D) comply with the rules governing the
59-22 injection, storage, and [or] withdrawal of appropriated water
59-23 stored in the reservoir or subdivision that are adopted by each [a]
59-24 district that has jurisdiction over the reservoir or subdivision;
59-25 and
59-26 (2) the commission shall require that any agreement
59-27 the applicant reaches with a district that has jurisdiction over
60-1 the reservoir or subdivision regarding the terms for the injection,
60-2 storage, and withdrawal of appropriated water be included as a
60-3 condition of the permit or permit amendment.
60-4 (c) On [completion of a pilot project and] receipt of an
60-5 [appropriate] application for a permit or an amendment to an
60-6 existing permit from an applicant with a completed pilot or
60-7 historically demonstrated project, the commission shall evaluate
60-8 the success of the [pilot] project for purposes of issuing a final
60-9 order granting a permit or permit amendment authorizing the storage
60-10 of appropriated water incident to a beneficial use. The commission
60-11 shall consider whether:
60-12 (1) the introduction of water into the aquifer will
60-13 alter the physical, chemical, or biological quality of native
60-14 groundwater to a degree that the introduction would:
60-15 (A) render groundwater produced from the aquifer
60-16 harmful or detrimental to people, animals, vegetation, or property;
60-17 or
60-18 (B) require treatment of the groundwater to a
60-19 greater extent than the native groundwater requires before being
60-20 applied to that beneficial use;
60-21 (2) the water stored in the receiving aquifer can be
60-22 successfully harvested from the aquifer for beneficial use; and
60-23 (3) [the permit holder has provided evidence that]
60-24 reasonable diligence will be used to protect the water stored in
60-25 the receiving aquifer from unauthorized withdrawals to the extent
60-26 necessary to maximize the permit holder's ability to retrieve and
60-27 beneficially use the stored water without experiencing unreasonable
61-1 loss of appropriated water.
61-2 (e) A permit to store appropriated water in a groundwater
61-3 [an underground water] reservoir or subdivision, as defined by
61-4 Chapter 36 [52], shall provide as a condition to the permit that
61-5 the permit holder shall:
61-6 (1) register the permit holder's injection and
61-7 recovery wells with a groundwater [an underground water]
61-8 conservation district that has jurisdiction over the reservoir or
61-9 subdivision, if any; and
61-10 (2) each calendar month, provide the district, if any,
61-11 with a written report showing for the previous calendar month:
61-12 (A) the amount of water injected for storage;
61-13 and
61-14 (B) the amount of water recaptured for use.
61-15 SECTION 4.05. Section 11.155(b), Water Code, is amended to
61-16 read as follows:
61-17 (b) The board shall make other studies, investigations, and
61-18 surveys of the aquifers in the state as it considers necessary to
61-19 determine the occurrence, quantity, quality, and availability of
61-20 other aquifers in which water may be stored and subsequently
61-21 retrieved for beneficial use. The board shall undertake the
61-22 studies, investigations, and surveys in the following order of
61-23 priority:
61-24 (1) the aquifers described [identified] in Section
61-25 11.153(a);
61-26 (2) areas designated by the commission as "priority
61-27 groundwater management [critical] areas" under Section 35.008
62-1 [52.053]; and
62-2 (3) other areas of the state in a priority to be
62-3 determined by the board's ranking of where the greatest need
62-4 exists.
62-5 SECTION 4.06. Section 11.173(b), Water Code, is amended to
62-6 read as follows:
62-7 (b) A permit, certified filing, or certificate of
62-8 adjudication or a portion of a permit, certified filing, or
62-9 certificate of adjudication is exempt from cancellation under
62-10 Subsection (a) of this section:
62-11 (1) to the extent of the owner's participation in the
62-12 Conservation Reserve Program authorized by the Food Security Act,
62-13 Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985)
62-14 or a similar governmental program; or
62-15 (2) if any portion of the water authorized to be used
62-16 pursuant to a permit, certified filing, or certificate of
62-17 adjudication has been used in accordance with a regional water
62-18 [management] plan approved pursuant to Section 16.053 of this code
62-19 [by the commission].
62-20 SECTION 4.07. Section 15.001(6), Water Code, is amended to
62-21 read as follows:
62-22 (6) "Project" or "facility" means:
62-23 (A) any undertaking or work, including planning
62-24 activities and work to obtain regulatory authority at the local,
62-25 state, and federal level, to conserve, convey, and develop [surface
62-26 or subsurface] water resources in the state, to provide for the
62-27 maintenance and enhancement of the quality of the water of the
63-1 state, to provide nonstructural and structural flood control,
63-2 drainage, subsidence control, recharge, chloride control, brush
63-3 control, precipitation enhancement, and desalinization, to provide
63-4 for the acquisition of water rights and the repair of unsafe dams,
63-5 and to carry out other purposes defined by board rules; [or]
63-6 (B) any undertaking or work outside the state to
63-7 provide for the maintenance and enhancement of the quality of water
63-8 by eliminating saline inflow through well pumping and deep well
63-9 injection of brine; or
63-10 (C) any undertaking or work by Texas political
63-11 subdivisions or institutions of higher education to conserve,
63-12 convey, and develop water resources in areas outside Texas or to
63-13 provide for the maintenance and enhancement of the quality of the
63-14 water in areas adjoining Texas, if such undertaking or work will
63-15 result in water being available for use in or for the benefit of
63-16 Texas or will maintain and enhance the quality of water in Texas.
63-17 SECTION 4.08. Section 15.002(b), Water Code, is amended to
63-18 read as follows:
63-19 (b) The legislature finds that the conventional means of
63-20 financing projects are inadequate to meet current and anticipated
63-21 needs of the state. Therefore, it is the further intent of the
63-22 legislature to provide a means of coordinating the development of
63-23 projects [throughout the state] through the board and to provide
63-24 political subdivisions the maximum opportunity to finance projects
63-25 through programs provided by this chapter. Projects may be in the
63-26 state or outside the state, provided that out-of-state projects
63-27 must be funded through a Texas political subdivision or an
64-1 institution of higher education and must result in water being
64-2 available for use in or for the benefit of Texas or maintain and
64-3 enhance the quality of water in Texas.
64-4 SECTION 4.09. Section 17.895, Water Code, is amended by
64-5 amending Subsection (a) and adding Subsection (c) to read as
64-6 follows:
64-7 (a) The board or lender districts may make conservation
64-8 loans for capital equipment or materials, labor, preparation costs,
64-9 and installation costs:
64-10 (1) to improve water use efficiency of water delivery
64-11 and application on existing irrigation systems;
64-12 (2) for preparing irrigated land to be converted to
64-13 dryland conditions; [or]
64-14 (3) for preparing dryland for more efficient use of
64-15 natural precipitation;
64-16 (4) for preparing and maintaining land to be used for
64-17 brush control activities, including but not limited to activities
64-18 conducted pursuant to Chapter 203, Agriculture Code; or
64-19 (5) for implementing precipitation enhancement
64-20 activities in areas of the state where such activities would be, in
64-21 the board's judgment, most effective.
64-22 (c) The board may make conservation loans to borrower
64-23 districts for the cost of purchasing and installing devices, on
64-24 public or private property, designed to indicate the amount of
64-25 water withdrawn for irrigation purposes.
64-26 SECTION 4.10. Section 35.002(12), Water Code, is amended to
64-27 read as follows:
65-1 (12) "Priority groundwater management [Critical] area"
65-2 means an area designated and delineated by the commission as an
65-3 area that is experiencing or is expected to experience critical
65-4 groundwater problems.
65-5 SECTION 4.11. Section 35.007, Water Code, is amended to read
65-6 as follows:
65-7 Sec. 35.007. IDENTIFYING, DESIGNATING, AND DELINEATING
65-8 PRIORITY GROUNDWATER MANAGEMENT [CRITICAL] AREAS. (a) The
65-9 executive director and the executive administrator shall meet at
65-10 least once a year to identify, based on information gathered by the
65-11 commission and the Texas Water Development Board, those areas of
65-12 the state that are experiencing or that are expected to experience,
65-13 [based on information available to the commission and the Texas
65-14 Water Development Board,] within the immediately following 25-year
65-15 [20-year] period, critical groundwater problems, including
65-16 shortages of surface water or groundwater, land subsidence
65-17 resulting from groundwater withdrawal, and contamination of
65-18 groundwater supplies.
65-19 (b) If the executive director concludes that an area of the
65-20 state should be considered for designation as a priority
65-21 groundwater management [critical] area, the executive director
65-22 shall prepare a report to the commission.
65-23 (c) The executive director shall begin preparation of a
65-24 priority groundwater management [critical] area report by
65-25 requesting a study from the executive administrator. The study
65-26 must:
65-27 (1) include an appraisal of the hydrogeology of the
66-1 area and matters within the Texas Water Development Board's
66-2 planning expertise relevant to the area;
66-3 (2) assess the area's immediate, short-term, and
66-4 long-term water supply and needs; and
66-5 (3) [. The study must] be completed and delivered to
66-6 the executive director on or before the 180th [90th] day following
66-7 the date of the request. If the study is not delivered within this
66-8 180-day [90-day] period, the executive director may proceed with
66-9 the preparation of the report.
66-10 (d) The executive director shall request a study from the
66-11 executive director of the Parks and Wildlife Department for the
66-12 purpose of preparing the report required by this section. The
66-13 study must:
66-14 (1) evaluate the potential effects of the designation
66-15 of a priority groundwater management area on an area's natural
66-16 resources; and
66-17 (2) be completed and delivered to the executive
66-18 director on or before the 180th day following the date of the
66-19 request. If the study is not delivered within this 180-day period,
66-20 the executive director may proceed with the preparation of the
66-21 report.
66-22 (e) The report shall include:
66-23 (1) the recommended delineation of the boundaries of
66-24 any proposed priority groundwater management [critical] area in the
66-25 form of an order [a rule] to be considered for adoption by the
66-26 commission;
66-27 (2) the reasons and supporting information for or
67-1 against designating the area as a priority groundwater management
67-2 [critical] area;
67-3 (3) a recommendation regarding whether a district
67-4 should be created in the priority groundwater management [critical]
67-5 area or whether the priority groundwater management [critical] area
67-6 should be added to an existing district;
67-7 (4) a recommendation as to actions that should be
67-8 considered to conserve natural resources; and
67-9 (5) any other information that the executive director
67-10 considers helpful to the commission.
67-11 (f) [(e)] The executive director must complete the report
67-12 and file it with the commission on or before the 240th [210th] day
67-13 following the date on which the executive administrator was
67-14 requested to produce a study. The executive director shall make
67-15 the report available for public inspection by providing a copy of
67-16 the report to at least one public library and the county clerk's
67-17 office in each county in which the proposed priority groundwater
67-18 management [critical] area is located and to all districts adjacent
67-19 to the area of the proposed priority groundwater management area.
67-20 (g) [(f)] To carry out this section, the executive director
67-21 may make necessary studies, hold hearings, solicit and collect
67-22 information, and use information already prepared by the executive
67-23 director or the executive administrator for other purposes.
67-24 SECTION 4.12. Section 35.008, Water Code, is amended to read
67-25 as follows:
67-26 Sec. 35.008. PROCEDURES FOR DESIGNATION OF PRIORITY
67-27 GROUNDWATER MANAGEMENT AREA; CONSIDERATION OF CREATION OF DISTRICT
68-1 OR ADDITION OF LAND IN PRIORITY GROUNDWATER MANAGEMENT AREA TO
68-2 EXISTING DISTRICT [CRITICAL AREAS]. (a) The commission shall
68-3 designate priority groundwater management [critical] areas using
68-4 the procedures provided by this chapter in lieu of those provided
68-5 by [applicable to rulemaking under the Administrative Procedure
68-6 Act,] Subchapter B, Chapter 2001, Government Code[, but if
68-7 procedures required by this chapter are in conflict with that Act,
68-8 this chapter controls].
68-9 (b) The commission shall call an evidentiary hearing to
68-10 consider:
68-11 (1) the designation of a priority groundwater
68-12 management area;
68-13 (2) whether a district should be created over all or
68-14 part of a priority groundwater management area; or
68-15 (3) whether all or part of the land in the priority
68-16 groundwater management area should be added to an existing
68-17 district.
68-18 (c) Evidentiary hearings shall be held at a location in one
68-19 of the counties in which the priority groundwater management area
68-20 is located, or proposed to be located, or in the nearest convenient
68-21 location if adequate facilities are not available in those
68-22 counties.
68-23 (d) At the hearing, the commission shall hear testimony and
68-24 receive evidence from affected persons. The commission shall
68-25 consider the executive director's report and supporting information
68-26 and the testimony and evidence received at the hearing. If the
68-27 commission considers further information necessary, the commission
69-1 may request such information from any source.
69-2 (e) The designation of a priority groundwater management
69-3 [critical] area may not be appealed nor may it be challenged under
69-4 the Administrative Procedure Act, Section 2001.038, Government
69-5 Code.
69-6 SECTION 4.13. Section 35.009, Water Code, is amended to read
69-7 as follows:
69-8 Sec. 35.009. NOTICE AND HEARING. (a) The [In addition to
69-9 the notice required for rulemaking under the Administrative
69-10 Procedure Act, Section 2001.023, Government Code, the] commission
69-11 shall have notice of the hearing published in at least one
69-12 newspaper with general circulation in the county or counties in
69-13 which the area being designated a proposed priority groundwater
69-14 management [critical] area or the area within a priority
69-15 groundwater management area being considered for district creation
69-16 or for addition to an existing district is [to be] located. Notice
69-17 must be published not later than the 30th day before the date set
69-18 for the commission to consider the designation of the priority
69-19 groundwater management [critical] area, the creation of a district
69-20 in a priority groundwater management area, or the addition of land
69-21 in a priority groundwater management area to an existing district.
69-22 (b) The notice must include:
69-23 (1) if applicable, a statement of the general purpose
69-24 and effect of designating the proposed priority groundwater
69-25 management area [critical areas];
69-26 (2) if applicable, a statement of the general purpose
69-27 and effect of creating a district in the priority groundwater
70-1 management area;
70-2 (3) if applicable, a statement of the general purpose
70-3 and effect of adding all or part of the land in the priority
70-4 groundwater management area to an existing district;
70-5 (4) a map generally outlining the boundaries of the
70-6 area being considered for priority groundwater management [proposed
70-7 critical] area designation or the priority groundwater management
70-8 area being considered for district creation or for addition to an
70-9 existing district, or notice of the location at which a copy of the
70-10 map may be examined or obtained;
70-11 (5) a statement that the executive director's report
70-12 concerning the priority groundwater management area or proposed
70-13 area is available at the commission's main office in Austin, Texas,
70-14 and at regional offices of the commission for regions which include
70-15 territory within the priority groundwater management area or
70-16 proposed priority groundwater management area and that the report
70-17 is available for inspection during regular business hours;
70-18 (6) [(3)] a description or the name of the locations
70-19 in the affected area at which the commission has provided copies of
70-20 the executive director's report to be made available for public
70-21 inspection;
70-22 (7) the name and address of each public library, each
70-23 county clerk's office, and each district to which the commission
70-24 has provided copies of the executive director's report; and
70-25 (8) [(4)] the date, time, and place of the hearing [at
70-26 which the commission will consider the designation of the critical
70-27 areas].
71-1 (c) The commission shall also give written notice of the
71-2 date, time, place, and purpose of the hearing to the governing body
71-3 of each county, regional water planning group, adjacent groundwater
71-4 district, municipality, river authority, water district, or other
71-5 entity which supplies public drinking water, and of each irrigation
71-6 district, located either in whole or in part in the priority
71-7 groundwater management area or proposed priority groundwater
71-8 management area. The notice must be given before the 30th day
71-9 preceding the date set for the hearing.
71-10 SECTION 4.14. Sections 35.012(b), (c), (d), and (e), Water
71-11 Code, are amended to read as follows:
71-12 (b) If the commission finds that the land and other property
71-13 in the priority groundwater management [critical] area would
71-14 benefit from the creation of one or more districts, that there is a
71-15 public need for one or more districts, and that the creation of one
71-16 or more districts would further the public welfare, the commission
71-17 shall issue an order stating that the creation of one or more
71-18 districts is needed.
71-19 (c) Following [During the period between] the [date of]
71-20 issuance of a commission order under Subsection (b) [and one year
71-21 after the close of the next regular session of the legislature
71-22 following the issuance of the order], the landowners in the
71-23 priority groundwater management [critical] area may:
71-24 (1) create one or more districts under Subchapter B,
71-25 Chapter 36;
71-26 (2) have the area annexed to a district that adjoins
71-27 the area; or
72-1 (3) create one or more districts through the
72-2 legislative process.
72-3 (d) The commission shall identify the areas subject to the
72-4 order of the commission issued under Subsection (b) that have not[,
72-5 in the period provided by Subsection (c),] been incorporated into a
72-6 district[,] and shall delineate proposed boundaries of a district
72-7 to include those areas. If the commission proposes the creation of
72-8 one or more districts, the Texas Agricultural Extension Service
72-9 [commission] shall begin an educational program within such areas
72-10 with the assistance and cooperation of the Texas Water Development
72-11 Board, the commission, other state agencies, and existing districts
72-12 to inform the residents of the status of the area's water resources
72-13 and management options including possible formation of a district,
72-14 before beginning the procedures for creation of a district provided
72-15 in Subchapter B, Chapter 36.
72-16 (e) If the commission fails to find that the district would
72-17 be a benefit to the land and other property within the priority
72-18 groundwater management [critical] area, that there is a public need
72-19 for the district, or that creation of the district will further the
72-20 public welfare, the commission shall issue an order stating that a
72-21 district should not be created within the boundaries of the
72-22 priority groundwater management [critical] area.
72-23 SECTION 4.15. Section 35.013, Water Code, is amended to
72-24 read as follows:
72-25 Sec. 35.013. ADDING PRIORITY GROUNDWATER MANAGEMENT
72-26 [CRITICAL] AREA TO EXISTING DISTRICT. (a) If land in a priority
72-27 groundwater management [critical] area is located adjacent to one
73-1 or more existing districts, the commission, instead of issuing an
73-2 order under Section 35.012, may issue an order recommending that
73-3 the priority groundwater management [critical] area be added to the
73-4 existing district designated by the commission. In its order, the
73-5 commission must find that the land and other property in the
73-6 priority groundwater management [critical] area and the land in the
73-7 existing district will benefit from the addition of the area, that
73-8 there is a public need to add the priority groundwater management
73-9 [critical] area to the existing district, and that the addition of
73-10 the land to the existing district would further the public welfare.
73-11 (b) If the executive director recommends that the priority
73-12 groundwater management [critical] area be added to an existing
73-13 district or if the commission considers it possible to add the
73-14 priority groundwater management [critical] area to an adjacent
73-15 existing district, the commission shall give notice to the board of
73-16 the existing district recommended by the executive director or
73-17 considered by the commission to possibly serve the area and to any
73-18 other existing districts adjacent to the priority groundwater
73-19 management [critical] area.
73-20 (c) The commission shall submit a copy of the order to the
73-21 board of the district to which it is recommending the priority
73-22 groundwater management [critical] area be added. The board shall
73-23 vote on the addition of the priority groundwater management
73-24 [critical] area to the district and shall advise the commission of
73-25 the outcome.
73-26 (d) If the board votes to accept the addition of the
73-27 priority groundwater management [critical] area to the district,
74-1 the board:
74-2 (1) may request the Texas Agricultural Extension
74-3 Service, the commission, the Texas Water Development Board, and
74-4 other state agencies to administer an educational program to inform
74-5 the residents of the status of the area's water resources and
74-6 management options including possible annexation into a district;
74-7 (2) shall call an election within the priority
74-8 groundwater management [critical] area as delineated by the
74-9 commission to determine if the priority groundwater management
74-10 [critical] area will be added to the district; and
74-11 (3) [. In the order calling the election, the board]
74-12 shall designate election precincts and polling places for the
74-13 elections in the order calling an election under this subsection.
74-14 (e) The board shall give notice of the election and the
74-15 proposition to be voted on. The board shall publish notice of the
74-16 election at least one time in one or more newspapers with general
74-17 circulation within the boundaries of the priority groundwater
74-18 management [critical] area. The notice must be published before
74-19 the 30th day preceding the date set for the election.
74-20 (f) The ballots for the election shall be printed to provide
74-21 for voting for or against the proposition: "The inclusion of
74-22 __________ (briefly describe priority groundwater management
74-23 [critical] area) in the __________ District." If the district has
74-24 outstanding debts or taxes [issued bonds], the proposition shall
74-25 include the following language: "and assumption by the described
74-26 area of a proportional share of the debts or taxes [outstanding
74-27 indebtedness] of the district."
75-1 (g) Immediately after the election, the presiding judge of
75-2 each polling place shall deliver the returns of the election to the
75-3 board, and the board shall canvass the returns for the election
75-4 within the priority groundwater management [critical] area and
75-5 declare the results. If a majority of the voters in the priority
75-6 groundwater management [critical] area voting on the proposition
75-7 vote in favor of the proposition, the board shall declare that the
75-8 priority groundwater management [critical] area is added to the
75-9 district. If a majority of the voters in the priority groundwater
75-10 management [critical] area voting on the proposition vote against
75-11 adding the priority groundwater management [critical] area to the
75-12 district, the board shall declare that the priority groundwater
75-13 management [critical] area is not added to the district. The board
75-14 shall file a copy of the election results with the commission.
75-15 (h) If the voters approve adding the priority groundwater
75-16 management [critical] area to the district, the board of the
75-17 district to which the priority groundwater management [critical]
75-18 area is added shall provide reasonable representation on that board
75-19 compatible with the district's existing scheme of representation.
75-20 (i) If the proposition is defeated, another election to add
75-21 the priority groundwater management [critical] area to an existing
75-22 district may not be called before the first anniversary of the date
75-23 on which the election on the proposition was held.
75-24 SECTION 4.16. Sections 35.014(b) and (c), Water Code, are
75-25 amended to read as follows:
75-26 (b) The costs of an election to add a priority groundwater
75-27 management [critical] area to an existing district at which the
76-1 voters approve adding the priority groundwater management
76-2 [critical] area to the district shall be paid by the existing
76-3 district.
76-4 (c) The costs of an election to create a district or add a
76-5 priority groundwater management [critical] area to an existing
76-6 district at which the proposition fails shall be paid by the
76-7 commission.
76-8 SECTION 4.17. Section 35.015, Water Code, is amended to
76-9 read as follows:
76-10 Sec. 35.015. STATE ASSISTANCE. [(a) A political
76-11 subdivision located in or that has within its boundaries an area or
76-12 part of an area delineated as a critical area, and in which the
76-13 qualified voters fail to approve the creation of a district or to
76-14 join an existing district, shall not be eligible to receive any
76-15 financial assistance from the state under Chapter 15, 16, or 17 for
76-16 use within that portion of the critical area not covered by a
76-17 district.]
76-18 [(b)] A political subdivision located in an area delineated
76-19 as a priority groundwater management [critical] area, and in which
76-20 qualified voters approve the creation of a district or annexation
76-21 into an existing district, shall be given consideration to receive
76-22 financial assistance from the state under Chapter 17 for funds to
76-23 be used in addressing issues identified in the priority groundwater
76-24 management [critical] area report in the manner provided by
76-25 Sections 17.124 and 17.125[, except that the board is not required
76-26 to make the finding set out in Section 17.125(a)(2)].
76-27 SECTION 4.18. Section 35.017, Water Code, is amended to
77-1 read as follows:
77-2 Sec. 35.017. STATE-OWNED LAND. If state-owned land or a
77-3 portion of state-owned land is located in a priority groundwater
77-4 management [critical] area, the state agency that has management
77-5 and control over that land under the constitution or by statute may
77-6 elect by written agreement with the commission and the district to
77-7 include the state-owned land in the district. The agreement shall
77-8 be entered into as provided by the Texas Intergovernmental
77-9 Cooperation Act, Chapter 741, Government Code, and may include
77-10 provisions for the payment by the state agency of reasonable fees
77-11 to the district. If the state does not elect to enter into the
77-12 agreement to include the state-owned land in the district, the
77-13 state agency must establish a groundwater management plan that will
77-14 conserve, protect, and prevent the waste of groundwater on that
77-15 state-owned land.
77-16 SECTION 4.19. Chapter 35, Water Code, is amended by adding
77-17 Section 35.018 to read as follows:
77-18 Sec. 35.018. REPORTS. (a) No later than January 31 of each
77-19 odd-numbered year, the commission in conjunction with the Texas
77-20 Water Development Board shall prepare and deliver to the governor,
77-21 the lieutenant governor, and the speaker of the house of
77-22 representatives a comprehensive report concerning activities during
77-23 the preceding two years relating to the designation of priority
77-24 groundwater management areas by the commission and the creation and
77-25 operation of districts.
77-26 (b) The report must include:
77-27 (1) the names and locations of all priority
78-1 groundwater management areas and districts created or attempted to
78-2 be created on or after November 5, 1985, the effective date of
78-3 Chapter 133 (H.B. No. 2), Acts of the 69th Legislature, Regular
78-4 Session, 1985;
78-5 (2) the authority under which each priority
78-6 groundwater management area and district was proposed for creation;
78-7 (3) a detailed analysis of each election held to
78-8 confirm the creation of a district, including analysis of election
78-9 results, possible reasons for the success or failure to confirm the
78-10 creation of a district, and the possibility for future voter
78-11 approval of districts in areas in which attempts to create
78-12 districts failed;
78-13 (4) a detailed analysis of the activities of each
78-14 district created, including those districts which are implementing
78-15 management plans certified under Section 36.1072;
78-16 (5) a report on audits performed on districts under
78-17 Section 36.302 and remedial actions taken under Section 36.303;
78-18 (6) recommendations for changes in this chapter and
78-19 Chapter 36 that will facilitate the creation of priority
78-20 groundwater management areas and the creation and operation of
78-21 districts;
78-22 (7) a report on educational efforts in newly
78-23 designated priority groundwater management areas; and
78-24 (8) any other information and recommendations that the
78-25 commission considers relevant.
78-26 (c)(1) If voters fail to create a groundwater district in a
78-27 priority groundwater management area or if voters fail to add the
79-1 priority groundwater management area to an existing groundwater
79-2 district, the report shall include recommendations for the future
79-3 management of the priority groundwater management area. The
79-4 recommendations may include but are not limited to the following:
79-5 (A) creation of a groundwater district by the
79-6 legislature;
79-7 (B) annexation of a priority groundwater
79-8 management area into an existing district by the legislature; or
79-9 (C) management of the priority groundwater
79-10 management area by the nearest regional office of the commission.
79-11 The commission may be authorized to:
79-12 (i) adopt spacing and annual per acre
79-13 pumping restrictions;
79-14 (ii) issue well permits in accordance with
79-15 Section 36.113 and 36.1131;
79-16 (iii) prevent waste and protect the
79-17 quality of groundwater in accordance with Section 36.001(8)(A)-(G);
79-18 (iv) levy administrative penalties for
79-19 violations; and
79-20 (v) collect fees in accordance with
79-21 Sections 36.206(a) and (b).
79-22 (2) If the commission is required by the legislature
79-23 to manage the priority groundwater management area, a new election
79-24 may not be called for three years from the date of the last
79-25 election.
79-26 SECTION 4.20. Section 36.001, Water Code, is amended by
79-27 amending Subdivision (14) and adding Subdivisions (16) and (17) to
80-1 read as follows:
80-2 (14) "Priority groundwater management [Critical] area"
80-3 means an area designated and delineated by the commission under
80-4 Chapter 35 as an area experiencing or expected to experience
80-5 critical groundwater problems.
80-6 (16) "Loan fund" means the groundwater district loan
80-7 assistance fund created under Section 36.371.
80-8 (17) "Applicant" means a newly confirmed district
80-9 applying for a loan from the loan fund.
80-10 SECTION 4.21. Subchapter A, Chapter 36, Water Code, is
80-11 amended by adding a new Section 36.0015 to read as follows:
80-12 Sec. 36.0015. PURPOSE. In order to provide for the
80-13 conservation, preservation, protection, recharging, and prevention
80-14 of waste of groundwater, and of groundwater reservoirs or their
80-15 subdivisions, and to control subsidence caused by withdrawal of
80-16 water from those groundwater reservoirs or their subdivisions,
80-17 consistent with the objectives of Section 59, Article XVI, Texas
80-18 Constitution, groundwater conservation districts may be created as
80-19 provided by this chapter. Groundwater conservation districts
80-20 created as provided by this chapter are the state's preferred
80-21 method of groundwater management.
80-22 SECTION 4.22. Section 36.012(c), Water Code, is amended to
80-23 read as follows:
80-24 (c) The boundaries of a district must be coterminous with or
80-25 inside the boundaries of a management area or a priority
80-26 groundwater management [critical] area.
80-27 SECTION 4.23. Section 36.013(d), Water Code, is amended to
81-1 read as follows:
81-2 (d) If a part of the proposed district is not included
81-3 within either a management area or a priority groundwater
81-4 management [critical] area, the petition to create a district may
81-5 also contain a request to create a management area. A request to
81-6 create a management area must comply with the requirements for a
81-7 petition in Section 35.005, and may be acted on by the commission
81-8 separately from the petition to create the district.
81-9 SECTION 4.24. Subchapter B, Chapter 36, Water Code, is
81-10 amended by adding Section 36.0151 to read as follows:
81-11 Sec. 36.0151. CREATION OF DISTRICT FOR PRIORITY GROUNDWATER
81-12 MANAGEMENT AREA. (a) If the commission proposes that a district
81-13 be created under Section 35.012(d), it shall in its order creating
81-14 the district provide that temporary directors be appointed under
81-15 Section 36.016 and that an election be called by the temporary
81-16 directors to confirm the creation of the district and to elect
81-17 permanent directors.
81-18 (b) The commission shall notify the county commissioners
81-19 court of each county with territory in the district of the
81-20 district's creation as soon as practicable after issuing the order
81-21 creating the district.
81-22 SECTION 4.25. Section 36.016, Water Code, is amended to
81-23 read as follows:
81-24 Sec. 36.016. APPOINTMENT OF TEMPORARY DIRECTORS. (a) If
81-25 the commission grants a petition to create a district under Section
81-26 36.015 or after the commission dissolves a district's board under
81-27 Section 36.303, it shall appoint five temporary directors.
82-1 (b) If the commission creates a district under Section
82-2 36.0151, the county commissioners court or courts of the county or
82-3 counties that contain the area of the district shall, within 90
82-4 days after receiving notification by the commission under Section
82-5 36.0151(b), appoint five temporary directors, or more if the
82-6 district contains the territory of more than five counties, for the
82-7 district's board using the method provided by Section 36.0161. A
82-8 county commissioners court shall not make any appointments after
82-9 the expiration of the 90-day period. If fewer than five temporary
82-10 directors have been appointed at the expiration of the period, the
82-11 commission shall appoint additional directors so that the board has
82-12 at least five members.
82-13 (c) Temporary directors appointed under this section [who]
82-14 shall serve until the initial directors are elected and have
82-15 qualified for office or until the voters fail to approve the
82-16 creation of the district.
82-17 (d) [(b)] If an appointee of the commission or of a county
82-18 commissioners court fails to qualify or if a vacancy occurs in the
82-19 office of temporary director, the commission or the county
82-20 commissioners court, as appropriate, shall appoint an individual to
82-21 fill the vacancy.
82-22 (e) [(c)] As soon as all temporary directors have qualified,
82-23 the directors shall meet, take the oath of office, and elect a
82-24 chairman and vice chairman from among their membership. The
82-25 chairman shall preside at all meetings of the board and, in the
82-26 chairman's absence, the vice chairman shall preside.
82-27 SECTION 4.26. Subchapter B, Chapter 36, Water Code, is
83-1 amended by adding Section 36.0161 to read as follows:
83-2 Sec. 36.0161. METHOD FOR APPOINTING TEMPORARY DIRECTORS FOR
83-3 DISTRICT IN PRIORITY GROUNDWATER MANAGEMENT AREA. (a) If a
83-4 district in a priority groundwater management area is:
83-5 (1) contained within one county, the county
83-6 commissioners court of that county shall appoint five temporary
83-7 directors for the district;
83-8 (2) contained within two counties, the county
83-9 commissioners court of each county shall appoint at least one
83-10 temporary director, with the appointments of the three remaining
83-11 directors to be apportioned as provided by Subsection (b);
83-12 (3) contained within three counties, the county
83-13 commissioners court of each county shall appoint at least one
83-14 temporary director, with the appointments of the two remaining
83-15 directors to be apportioned as provided by Subsection (b);
83-16 (4) contained within four counties, the county
83-17 commissioners court of each county shall appoint at least one
83-18 temporary director, with the appointment of the remaining director
83-19 to be apportioned as provided by Subsection (b); or
83-20 (5) contained within five or more counties, the county
83-21 commissioners court of each county shall appoint one temporary
83-22 director.
83-23 (b)(1) In this subsection, "estimated groundwater use" means
83-24 the estimate of groundwater use in acre-feet developed by the
83-25 commission under Subsection (c) for the area of a county that is
83-26 within the district.
83-27 (2) The apportionment of appointments under Subsection
84-1 (a) shall be made by the commission so as to reflect, as closely as
84-2 possible, the proportion each county's estimated groundwater use
84-3 bears to the sum of the estimated groundwater use for the district
84-4 as determined under Subsection (c). The commission shall by rule
84-5 determine the method it will use to implement this subdivision.
84-6 (c) If a district for which temporary directors are to be
84-7 appointed is contained within two, three, or four counties, the
84-8 commission shall develop an estimate of annual groundwater use in
84-9 acre-feet for each county area within the district.
84-10 SECTION 4.27. Section 36.052, Water Code, is amended to
84-11 read as follows:
84-12 Sec. 36.052. OTHER LAWS NOT APPLICABLE. (a) Other laws
84-13 governing the administration or operations of districts created
84-14 under Section 52, Article III, or Section 59, Article XVI, Texas
84-15 Constitution, shall not apply to any district governed by this
84-16 chapter. This chapter prevails over any other law in conflict or
84-17 inconsistent with this chapter, except any special law governing a
84-18 specific district shall prevail over this chapter.
84-19 (b) Notwithstanding Subsection (a), the following provisions
84-20 prevail over a conflicting or inconsistent provision of a special
84-21 law that governs a specific district:
84-22 (1) Sections 36.107-36.108;
84-23 (2) Sections 36.159-36.161; and
84-24 (3) Subchapter I.
84-25 SECTION 4.28. Subchapter D, Chapter 36, Water Code, is
84-26 amended by amending Section 36.107 and adding Sections 36.1071,
84-27 36.1072, and 36.1073 to read as follows:
85-1 Sec. 36.107. RESEARCH [AND PLANNING]. [(a)] A district may
85-2 carry out any research projects deemed necessary by the board.
85-3 Sec. 36.1071. MANAGEMENT PLAN. (a) [(b)] Following notice
85-4 and hearing, the district shall, in coordination with surface water
85-5 management entities on a regional basis, develop a comprehensive
85-6 management plan which addresses the following management goals, as
85-7 applicable:
85-8 (1) providing the most efficient use of groundwater;
85-9 (2) controlling and preventing waste of groundwater;
85-10 (3) controlling and preventing subsidence;
85-11 (4) addressing conjunctive surface water management
85-12 issues; and
85-13 (5) addressing natural resource issues.
85-14 (b) A district management plan, or any amendments to a
85-15 district management plan, adopted after the Texas Water Development
85-16 Board approval of a regional water plan for the region in which the
85-17 district is located shall be consistent with the regional water
85-18 plan.
85-19 (c) The commission and the Texas Water Development Board
85-20 shall provide technical assistance to a district in the development
85-21 of the management plan required under Subsection (a) which may
85-22 include, if requested by the district, a preliminary review and
85-23 comment on the plan prior to final approval by the board. If such
85-24 review and comment by the commission is requested, the commission
85-25 shall provide comment not later than 30 days from the date the
85-26 request is received.
85-27 (d) The commission shall provide technical assistance to a
86-1 district during its initial operational phase.
86-2 (e) In the management plan described under Subsection (a),
86-3 the district shall:
86-4 (1) identify the performance standards and management
86-5 objectives under which the district will operate to achieve the
86-6 management goals identified under Subsection (a);
86-7 (2) specify, in as much detail as possible, the
86-8 actions, procedures, performance, and avoidance that are or may be
86-9 necessary to effect the plan, including specifications and proposed
86-10 rules;
86-11 (3) include estimates of the following:
86-12 (A) the existing total usable amount of
86-13 groundwater in the district;
86-14 (B) the amount of groundwater being used within
86-15 the district on an annual basis;
86-16 (C) the annual amount of recharge, if any, to
86-17 the groundwater resources within the district and how natural or
86-18 artificial recharge may be increased; and
86-19 (D) the projected water supply and demand for
86-20 water within the district; and
86-21 (4) address water supply needs in a manner that is not
86-22 in conflict with the appropriate approved regional water plan if a
86-23 regional water plan has been approved under Section 16.053 [for the
86-24 most efficient use of the groundwater, for controlling and
86-25 preventing waste of groundwater, and for controlling and preventing
86-26 subsidence. The plan may be reviewed annually but must be reviewed
86-27 by the board at least once every five years].
87-1 (f) [(c) The district shall specify in the management plan,
87-2 in as much detail as possible, the acts, procedures, performance,
87-3 and avoidance that are or may be necessary to effect the plan,
87-4 including specifications and proposed rules.] The district shall
87-5 adopt rules necessary to implement the management plan.
87-6 (g) The board shall adopt amendments to the management plan
87-7 as necessary. Amendments to the management plan shall be adopted
87-8 after notice and hearing and shall otherwise comply with the
87-9 requirements of this section.
87-10 Sec. 36.1072. TEXAS WATER DEVELOPMENT BOARD REVIEW AND
87-11 CERTIFICATION OF MANAGEMENT PLAN. (a) A [The] district shall, not
87-12 later than two years after the creation of the district or, if the
87-13 district required confirmation, after the election confirming the
87-14 district's creation, submit [file a copy of] the management plan
87-15 required under Section 36.1071 to [and the rules with] the
87-16 executive administrator for review and certification [commission].
87-17 (b) Within 60 days of receipt of a management plan adopted
87-18 under Section 36.1071, the executive administrator shall certify a
87-19 management plan if the plan is administratively complete. A
87-20 management plan is administratively complete when it contains the
87-21 information required to be submitted under Section 36.1071. The
87-22 executive administrator may determine that conditions justify
87-23 waiver of the requirements under Section 36.1071(e)(4).
87-24 (c) Once a determination that a management plan is
87-25 administratively complete has been made:
87-26 (1) the executive administrator may not revoke the
87-27 determination that a management plan is administratively complete;
88-1 (2) the executive administrator may request additional
88-2 information from the district if the information is necessary to
88-3 clarify, modify, or supplement previously submitted material; and
88-4 (3) a request for additional information does not
88-5 render the management plan incomplete.
88-6 (d) A management plan takes effect on certification by the
88-7 executive administrator or, if appealed, on certification by the
88-8 Texas Water Development Board.
88-9 (e) The board may review the plan annually and must review
88-10 and readopt the plan with or without revisions at least once every
88-11 five years.
88-12 (f) If the executive administrator does not certify the
88-13 management plan, the executive administrator shall provide to the
88-14 district, in writing, the reasons for the action. Not later than
88-15 the 180th day after the date a district receives notice that its
88-16 management plan has not been certified, the district may submit a
88-17 revised management plan for review and certification. The
88-18 executive administrator's decision may be appealed to the Texas
88-19 Water Development Board. The decision of the Texas Water
88-20 Development Board on whether to certify the management plan may not
88-21 be appealed. The commission shall not take enforcement action
88-22 against a district under Subchapter I until the later of the
88-23 expiration of the 180-day period or the date the Texas Water
88-24 Development Board has taken final action withholding certification
88-25 of a revised management plan.
88-26 Sec. 36.1073. AMENDMENT TO MANAGEMENT PLAN. Any amendment
88-27 to the management plan shall be submitted to the executive
89-1 administrator within 60 days following adoption of the amendment by
89-2 the district's board. The executive administrator shall review and
89-3 certify any amendment which substantially affects the management
89-4 plan in accordance with the procedures established under Section
89-5 36.1072.
89-6 SECTION 4.29. Section 36.108(a), Water Code, is amended to
89-7 read as follows:
89-8 (a) If two or more districts are located within the
89-9 boundaries of the same management area, each district shall prepare
89-10 a comprehensive management plan as required by Section 36.1071
89-11 [36.107] covering that district's respective territory. On
89-12 completion of the plan, each district shall forward a copy of the
89-13 new revised management plan to the other districts in the
89-14 management area.
89-15 SECTION 4.30. Section 36.113, Water Code, is amended to
89-16 read as follows:
89-17 Sec. 36.113. PERMITS FOR WELLS. (a) A district shall
89-18 require permits for the drilling, equipping, or completing of
89-19 wells[,] or for substantially altering the size of wells or well
89-20 pumps.
89-21 (b) A district shall require that an application for a
89-22 permit be in writing and sworn to.
89-23 (c) A district may require that the following be included in
89-24 the permit application:
89-25 (1) the name and mailing address of the applicant and
89-26 the owner of the land on which the well will be located;
89-27 (2) if the applicant is other than the owner of the
90-1 property, documentation establishing the applicable authority to
90-2 construct and operate a well for the proposed use;
90-3 (3) a statement of the nature and purpose of the
90-4 proposed use and the amount of water to be used for each purpose;
90-5 (4) a water conservation plan or a declaration that
90-6 the applicant will comply with the district's management plan;
90-7 (5) the location of each well and the estimated rate
90-8 at which water will be withdrawn;
90-9 (6) a water well closure plan or a declaration that
90-10 the applicant will comply with well plugging guidelines and report
90-11 closure to the commission; and
90-12 (7) a drought contingency plan.
90-13 (d) Before granting or denying a permit, the district shall
90-14 consider whether:
90-15 (1) the application conforms to the requirements
90-16 prescribed by this chapter and is accompanied by the prescribed
90-17 fees;
90-18 (2) the proposed use of water unreasonably affects
90-19 existing groundwater and surface water resources;
90-20 (3) the proposed use of water is dedicated to any
90-21 beneficial use;
90-22 (4) the proposed use of water is consistent with the
90-23 district's certified water management plan;
90-24 (5) the applicant has agreed to avoid waste and
90-25 achieve water conservation; and
90-26 (6) the applicant has agreed that reasonable diligence
90-27 will be used to protect groundwater quality and that the applicant
91-1 will follow well plugging guidelines at the time of well closure.
91-2 (e) Permits may be issued subject to the rules promulgated
91-3 by the district and subject to terms and provisions with reference
91-4 to the drilling, equipping, completion, or alteration of wells or
91-5 pumps that may be necessary to [conserve the groundwater,] prevent
91-6 waste and achieve water conservation, minimize as far as
91-7 practicable the drawdown of the water table or the reduction of
91-8 artesian pressure, lessen interference between wells, or control
91-9 and prevent subsidence.
91-10 (f) A district may require that changes in the withdrawal
91-11 and use of groundwater under a permit not be made without the prior
91-12 approval of a permit amendment issued by the district.
91-13 SECTION 4.31. Subchapter D, Chapter 36, Water Code, is
91-14 amended by adding Section 36.1131 to read as follows:
91-15 Sec. 36.1131. ELEMENTS OF PERMIT. (a) A permit issued by
91-16 the district to the applicant under Section 36.113 shall state the
91-17 terms and provisions prescribed by the district.
91-18 (b) The permit may include:
91-19 (1) the name and address of the person to whom the
91-20 permit is issued;
91-21 (2) the location of the well;
91-22 (3) the date the permit is to expire if no well is
91-23 drilled;
91-24 (4) a statement of the purpose for which the well is
91-25 to be used;
91-26 (5) a requirement that the water withdrawn under the
91-27 permit be put to beneficial use at all times;
92-1 (6) the location of the use of the water from the
92-2 well;
92-3 (7) a water well closure plan or a declaration that
92-4 the applicant will comply with well plugging guidelines and report
92-5 closure to the commission;
92-6 (8) the conditions and restrictions, if any, placed on
92-7 the rate and amount of withdrawal;
92-8 (9) any conservation-oriented methods of drilling and
92-9 operating prescribed by the district;
92-10 (10) a drought contingency plan prescribed by the
92-11 district; and
92-12 (11) other terms and conditions as provided by Section
92-13 36.113.
92-14 SECTION 4.32. Section 36.117, Water Code, is amended to read
92-15 as follows:
92-16 Sec. 36.117. EXEMPTIONS; Exception; Limitations. (a) A
92-17 district may exempt wells from the requirements to obtain a
92-18 drilling permit, an operating permit, or any other permit required
92-19 by this chapter or the district's rules. A district may not
92-20 require a permit for:
92-21 (1) drilling or producing from a well either drilled,
92-22 completed, or equipped so that it is incapable of producing more
92-23 than 25,000 gallons of groundwater a day;
92-24 (2) the drilling or alteration of the size of a well
92-25 or to restrict the production of a well if the water produced or to
92-26 be produced from the well is used or to be used to supply the
92-27 domestic needs of 10 or fewer households and a person who is a
93-1 member of each household is either the owner of the well, a person
93-2 related to the owner or a member of the owner's household within
93-3 the second degree by consanguinity, or an employee of the owner;
93-4 (3) the drilling or alteration of the size of a well
93-5 or to restrict the production from the well if the water produced
93-6 or to be produced from the well is used or to be used to provide
93-7 water for feeding livestock and poultry connected with farming,
93-8 ranching, or dairy enterprises;
93-9 (4) water wells to supply water for hydrocarbon
93-10 production activities, regardless of whether those wells are
93-11 producing, that are associated with any well permitted by the
93-12 Railroad Commission of Texas drilled before September 1, 1985; or
93-13 (5) jet wells used for domestic needs.
93-14 (b) The board shall adopt rules determining the
93-15 applicability of Subsection (a)(3) to facilities used primarily for
93-16 feeding livestock.
93-17 (c) The district shall not deny the owner of a tract of
93-18 land, or his lessee, who has no well equipped to produce more than
93-19 25,000 gallons a day on the tract, either a permit to drill a well
93-20 on his land or the privilege to produce groundwater from his land,
93-21 subject to the rules of the district.
93-22 (d) A district may not restrict the production of any well
93-23 equipped to produce 25,000 gallons or less a day.
93-24 (e) Nothing in this chapter applies to wells drilled for
93-25 oil, gas, sulphur, uranium, or brine, or for core tests, or for
93-26 injection of gas, saltwater, or other fluid, or for any other
93-27 purpose, under permits issued by the Railroad Commission of Texas.
94-1 A district may not require a drilling permit for [to drill] a well
94-2 to supply water for drilling any [of these] wells permitted by the
94-3 Railroad Commission of Texas. Any well that ceases to be used for
94-4 these purposes and is then used as an ordinary water well is
94-5 subject to the rules of the district. Water wells drilled after
94-6 September 1, 1997, to supply water for hydrocarbon production
94-7 activities must meet the spacing requirements of the district
94-8 unless no space is available within 300 feet of the production well
94-9 or the central injection station.
94-10 (f) Water wells exempted under this section shall be
94-11 equipped and maintained so as to conform to the district's rules
94-12 requiring installation of casing, pipe, and fittings to prevent the
94-13 escape of groundwater from a groundwater reservoir to any reservoir
94-14 not containing groundwater and to prevent the pollution or harmful
94-15 alteration of the character of the water in any groundwater
94-16 reservoir.
94-17 (g) A district shall require water wells exempted under this
94-18 section to be registered with the district before drilling. All
94-19 exempt water wells shall be equipped and maintained so as to
94-20 conform to the district's rules requiring installation of casing,
94-21 pipe, and fittings to prevent the escape of groundwater from a
94-22 groundwater reservoir to any reservoir not containing groundwater
94-23 and to prevent the pollution or harmful alteration of the character
94-24 of the water in any groundwater reservoir.
94-25 (h) A well to supply water for a subdivision of land for
94-26 which a plat approval is required by law is not exempted under this
94-27 section.
95-1 SECTION 4.33. Subchapter E, Chapter 36, Water Code, is
95-2 amended by adding Sections 36.159, 36.160, and 36.161 to read as
95-3 follows:
95-4 Sec. 36.159. GROUNDWATER DISTRICT MANAGEMENT PLAN FUNDS.
95-5 The Texas Water Development Board may allocate funds from the
95-6 research and planning fund created under Subchapter F, Chapter 15,
95-7 to a district to conduct initial data collections under this
95-8 chapter, to develop and implement a long-term management plan under
95-9 Section 36.1071, and to participate in regional water plans.
95-10 Sec. 36.160. FUNDS. The Texas Water Development Board, the
95-11 commission, the Parks and Wildlife Department, the Texas
95-12 Agricultural Extension Service, and institutions of higher
95-13 education may allocate funds to carry out the objectives of this
95-14 chapter and Chapter 35, which include but are not limited to:
95-15 (1) conducting initial and subsequent studies and
95-16 surveys under Sections 36.106, 36.107, and 36.109;
95-17 (2) providing appropriate education in affected areas
95-18 identified in Section 35.007 relating to the problems and issues
95-19 concerning water management that may arise;
95-20 (3) processing priority groundwater management area
95-21 evaluations under this chapter and Chapter 35;
95-22 (4) providing technical and administrative assistance
95-23 to newly created districts under this chapter and Chapter 35;
95-24 (5) covering the costs of newspaper notices required
95-25 under Sections 35.009 and 36.014 and failed elections in accordance
95-26 with Sections 35.014(c), 36.017(h), and 36.019; and
95-27 (6) providing for assistance from the Parks and
96-1 Wildlife Department to the Texas Water Development Board or a
96-2 district for the purpose of assessing fish and wildlife resource
96-3 habitat needs as they may apply to overall management plan goals
96-4 and objectives of the district.
96-5 Sec. 36.161. ELIGIBILITY FOR FUNDING. (a) The Texas Water
96-6 Development Board may provide funds under Sections 36.159 and
96-7 36.160, Chapters 15, 16, and 17, and Subchapter L of this chapter
96-8 to a district if the Texas Water Development Board determines that
96-9 such funding will allow the district to comply or continue to
96-10 comply with provisions of this chapter.
96-11 (b) The Texas Water Development Board may, after notice and
96-12 hearing, discontinue funding described in Subsection (a) if the
96-13 Texas Water Development Board finds that the district is not using
96-14 the funds to comply with the provisions of this chapter.
96-15 (c) The Texas Water Development Board, when considering a
96-16 discontinuance under Subsection (b), shall give written notice of
96-17 the hearing to the district at least 20 days before the date set
96-18 for the hearing. The hearing shall be conducted in accordance with
96-19 Chapter 2001, Government Code, or the rules of the respective
96-20 agency. General notice of the hearing shall be given in accordance
96-21 with the rules of the agency.
96-22 (d) The Texas Water Development Board may delegate to the
96-23 State Office of Administrative Hearings the responsibility to
96-24 conduct a hearing under this section.
96-25 SECTION 4.34. Subchapter G, Chapter 36, Water Code, is
96-26 amended by adding Sections 36.206 and 36.207 to read as follows:
96-27 Sec. 36.206. DISTRICT FEES. (a) A temporary board may set
97-1 user fees to pay for the creation and initial operation of a
97-2 district, until such time as the district creation has been
97-3 confirmed and a permanent board has been elected by a majority vote
97-4 of the qualified voters voting in the district in an election
97-5 called for those purposes.
97-6 (b) The rate of fees set for crop or livestock production or
97-7 other agricultural uses shall be no more than 20 percent of the
97-8 rate applied to municipal uses.
97-9 Sec. 36.207. USE OF PERMIT FEES AUTHORIZED BY SPECIAL LAW.
97-10 A district may use funds obtained from permit fees collected
97-11 pursuant to the special law governing the district for any purpose
97-12 consistent with the district's certified water management plan
97-13 including, without limitation, making grants, loans, or contractual
97-14 payments to achieve, facilitate, or expedite reductions in
97-15 groundwater pumping of the development or distribution of
97-16 alternative water supplies.
97-17 SECTION 4.35. Subchapter I, Chapter 36, Water Code, is
97-18 amended to read as follows:
97-19 SUBCHAPTER I. PERFORMANCE REVIEW AND DISSOLUTION [OF DISTRICT]
97-20 Sec. 36.301. DEFINITIONS. In this subchapter:
97-21 (1) "Council" means the Texas Groundwater Management
97-22 Council.
97-23 (2) "Operational" means that a district is actively
97-24 engaged in achieving the objectives of the district's management
97-25 plan based on a review of the district's performance under the
97-26 plan.
97-27 Sec. 36.302. FAILURE TO SUBMIT A MANAGEMENT PLAN. If a
98-1 district fails to submit a management plan or to receive
98-2 certification of its management plan under Section 36.1072 or fails
98-3 to submit or receive certification of an amendment to the
98-4 management plan under Section 36.1073, the commission shall take
98-5 appropriate action under Section 36.304.
98-6 Sec. 36.303. GROUNDWATER MANAGEMENT COUNCIL REVIEW;
98-7 DETERMINATION OF WHETHER DISTRICT IS OPERATIONAL. (a) The Texas
98-8 Groundwater Management Council is created for the sole purpose of
98-9 determining whether districts are operational. The council is
98-10 composed of the following five members:
98-11 (1) two representatives appointed by the governor from
98-12 a list provided by the Texas Alliance of Groundwater Districts;
98-13 (2) one employee of the commission appointed by the
98-14 executive director;
98-15 (3) one employee of the Texas Water Development Board
98-16 appointed by the executive administrator; and
98-17 (4) one member of the public appointed by the governor
98-18 who serves as presiding officer.
98-19 (b) A district is subject to review by the council under
98-20 this section.
98-21 (c) The commission, the Texas Water Development Board, and
98-22 the Parks and Wildlife Department shall provide technical
98-23 assistance to the council for the review.
98-24 (d) The council shall conduct a review to determine whether
98-25 a district is operational.
98-26 (e) The council shall conduct a review under Subsection (d)
98-27 after the first anniversary of the initial certification of the
99-1 district's management plan by the Texas Water Development Board
99-2 under Section 36.1072 and following the end of every five-year
99-3 period thereafter. The determination under Subsection (d) shall be
99-4 made by the affirmative vote of at least three members of the
99-5 council.
99-6 (f) The council shall report the findings of a review
99-7 conducted under Subsection (d) to the commission and to the
99-8 governor, lieutenant governor, and speaker of the house of
99-9 representatives. The member of the council representing the Texas
99-10 Water Development Board shall be responsible for preparing and
99-11 submitting the report.
99-12 (g) If the council determines under Subsection (d) that the
99-13 district is not operational, the commission shall take appropriate
99-14 action under Section 36.304.
99-15 Sec. 36.304. ACTION BY COMMISSION. (a) After notice and
99-16 hearing in accordance with Chapter 2001, Government Code, the
99-17 commission may take actions the commission deems appropriate to
99-18 enforce compliance with rules or orders of the commission or
99-19 provisions of this chapter, including:
99-20 (1) issuing an order requiring the district to take
99-21 certain actions or to achieve the goals or objectives of the
99-22 district's management plan;
99-23 (2) dissolving the board in accordance with Sections
99-24 36.306 and 36.308;
99-25 (3) removing the district's taxing authority; or
99-26 (4) dissolving the district in accordance with
99-27 Sections 36.305, 36.306, and 36.309.
100-1 (b) In addition to actions identified under Subsection (a),
100-2 the commission may recommend to the legislature, based upon the
100-3 report required by Section 35.018, actions the commission deems
100-4 necessary to accomplish comprehensive management in the district.
100-5 Sec. 36.305 [36.301]. DISSOLUTION OF DISTRICT. (a) The
100-6 [After notice and hearing, the] commission may dissolve a district
100-7 that:
100-8 (1) is not operational, as determined under Section
100-9 36.303 [has been inactive for a period of three consecutive years];
100-10 and
100-11 (2) has no outstanding bonded indebtedness.
100-12 (b) A district composed of territory entirely within one
100-13 county may be dissolved even if the district [it] has outstanding
100-14 indebtedness that matures after the year in which the district is
100-15 dissolved, whereupon the commissioners court shall levy and collect
100-16 taxes on all taxable property in the district in an amount
100-17 sufficient to pay the principal of and interest on the indebtedness
100-18 when due. The taxes shall be levied and collected in the same
100-19 manner as county taxes.
100-20 [(c) A district is considered active if:]
100-21 [(1) the district has a board as required by
100-22 Subchapter D;]
100-23 [(2) the board holds regularly scheduled meetings and
100-24 has on file minutes of its meetings;]
100-25 [(3) the district has developed and filed with the
100-26 commission a management plan for the district;]
100-27 [(4) the district has copies of drillers' logs on
101-1 file;]
101-2 [(5) the district has on file well permits issued by
101-3 the district; and]
101-4 [(6) the district has on file annual district audits.]
101-5 Sec. 36.306 [36.302]. NOTICE OF HEARING FOR DISSOLUTION OF
101-6 BOARD OR DISTRICT. (a) The commission shall give notice of the
101-7 [dissolution] hearing for dissolution of a district or of a board
101-8 which briefly describes the reasons for the proceeding.
101-9 (b) The notice shall be published once each week for two
101-10 consecutive weeks before the day of hearing in a [some] newspaper
101-11 having general circulation in the county or counties in which the
101-12 district is located. The first publication shall be 30 days before
101-13 the day of the hearing.
101-14 (c) The commission shall give notice of the hearing by first
101-15 class mail addressed to the directors of the district according to
101-16 the last record on file with the executive director.
101-17 Sec. 36.307 [36.303]. INVESTIGATION. The executive director
101-18 shall investigate the facts and circumstances of any violations of
101-19 any rule or order of the commission or any provisions of this
101-20 chapter and shall prepare and file a written report with the
101-21 commission and district and include any actions the executive
101-22 director believes the commission should take under Section 36.304.
101-23 Sec. 36.308. ORDER OF DISSOLUTION OF BOARD. If the
101-24 commission enters an order to dissolve the board, the commission
101-25 shall notify the county commissioners court of each county which
101-26 contains territory in the district and the commission shall provide
101-27 that temporary directors be appointed under Section 36.016 to serve
102-1 until an election for a new board can be held under Section 36.017,
102-2 provided, however, that district confirmation shall not be required
102-3 for continued existence of the district and shall not be an issue
102-4 in the election [the district to be dissolved and the result of
102-5 the investigation shall be included in a written report].
102-6 [Sec. 36.304. ORDER OF DISSOLUTION. The commission may
102-7 enter an order dissolving the district at the conclusion of the
102-8 hearing if it finds that the district has performed none of the
102-9 functions for which it was created for a period of three
102-10 consecutive years before the day of the proceeding and that the
102-11 district has no outstanding bonded indebtedness.]
102-12 Sec. 36.309 [36.305]. CERTIFIED COPY OF ORDER. The
102-13 commission shall file a certified copy of the order of dissolution
102-14 of the district in the deed records of the county or counties in
102-15 which the district is located. If the district was created by a
102-16 special Act of the legislature, the commission shall file a
102-17 certified copy of the order of dissolution with the secretary of
102-18 state.
102-19 Sec. 36.310 [36.306]. APPEALS. [(a)] Appeals from any [a]
102-20 commission order [dissolving a district] shall be filed and heard
102-21 in the district court of any of the counties in which the land is
102-22 located.
102-23 [(b) The trial on appeal shall be de novo and the
102-24 substantial evidence rule shall not apply.]
102-25 Sec. 36.311 [36.307]. ASSETS ESCHEAT [TO STATE]. Upon the
102-26 dissolution of a district by the commission, all assets of the
102-27 district shall be sold at public auction and the proceeds given to
103-1 the county if it is a single-county district. If it is a
103-2 multicounty district, the proceeds shall be divided with the
103-3 counties in proportion to the surface land area in each county
103-4 served by the district [escheat to the State of Texas. The assets
103-5 shall be administered by the state treasurer and shall be disposed
103-6 of in the manner provided by Chapter 72, Property Code].
103-7 Sec. 36.312. DISTRICT CREATED BY AN ACT OF THE LEGISLATURE.
103-8 (a) A district created by an Act of the legislature shall hold a
103-9 confirmation election, if a confirmation election is required by
103-10 that Act, before the second anniversary of the effective date of
103-11 that Act.
103-12 (b) If a district fails to hold an election as required by
103-13 Subsection (a) of this section, the Act creating the district
103-14 expires on the second anniversary of the effective date of that Act
103-15 and the district has no further authority, except that any debts
103-16 incurred shall be paid and the organization of the district shall
103-17 be maintained until all debts are paid.
103-18 SECTION 4.36. Section 36.325(b), Water Code, is amended to
103-19 read as follows:
103-20 (b) The petition must be signed by:
103-21 (1) a majority of the landowners in the territory;
103-22 (2) at least 50 landowners if the number of landowners
103-23 is more than 50; or
103-24 (3) the commissioners court of the county in which the
103-25 area is located if the area is identified as a priority groundwater
103-26 management [critical] area or includes the entire county. The
103-27 petition must describe the land by legal description or by metes
104-1 and bounds or by lot and block number if there is a recorded plat
104-2 of the area to be included in the district.
104-3 SECTION 4.37. Section 36.331, Water Code, is amended to read
104-4 as follows:
104-5 Sec. 36.331. ANNEXATION OF NONCONTIGUOUS TERRITORY. Land
104-6 not contiguous to the existing boundaries of a district may not be
104-7 added to or annexed to a district unless the land is located either
104-8 within the same management area, priority groundwater management
104-9 [critical] area, or a groundwater subdivision designated by the
104-10 commission or its predecessors.
104-11 SECTION 4.38. Section 151.318(g), Tax Code, is amended to
104-12 read as follows:
104-13 (g) Each person engaged in manufacturing, processing,
104-14 fabricating, or repairing tangible personal property for ultimate
104-15 sale is entitled to a refund or a reduction in the amount of tax
104-16 imposed by this chapter as provided by Subsection (h) for the
104-17 purchase of machinery, equipment, and replacement parts or
104-18 accessories with a useful life in excess of six months if the
104-19 equipment is:
104-20 (1) used or consumed in or during the actual
104-21 manufacturing, processing, fabrication, or repair of tangible
104-22 personal property for ultimate sale, and the use or consumption of
104-23 the property is necessary or essential to the manufacturing,
104-24 processing, fabrication, or repair operation, or to a pollution
104-25 control process; or
104-26 (2) specifically installed to:
104-27 (A) reduce water use and wastewater flow volumes
105-1 from the manufacturing, processing, fabrication, or repair
105-2 operation;
105-3 (B) reuse and recycle wastewater streams
105-4 generated within the manufacturing, processing, fabrication, or
105-5 repair operation; or
105-6 (C) treat wastewater from another industrial or
105-7 municipal source for the purpose of replacing existing freshwater
105-8 sources in the manufacturing, processing, fabrication, or repair
105-9 operation.
105-10 SECTION 4.39. (a) Sections 35.010, 35.011, and 35.016,
105-11 Water Code, are repealed.
105-12 (b) Section 5.02, Chapter 133, Acts of the 69th Legislature,
105-13 Regular Session, 1985, is repealed.
105-14 SECTION 4.40. (a) In this section, "district" means a
105-15 groundwater conservation district created under Section 52, Article
105-16 III, or Section 59, Article XVI, Texas Constitution, that has the
105-17 authority to regulate the spacing of water wells, the production
105-18 from water wells, or both.
105-19 (b) Notwithstanding the time limitation under Subsection
105-20 (a), Section 36.1072, Water Code, as added by this Act, and
105-21 notwithstanding any provision to the contrary in prior law, a
105-22 district which was created or, if the district required a
105-23 confirmation election, a district whose creation was confirmed
105-24 before the effective date of this Act shall submit a management
105-25 plan for certification under Section 36.1072, Water Code, as added
105-26 by this Act, to the Texas Water Development Board not later than
105-27 September 1, 1998.
106-1 (c) Notwithstanding any provision to the contrary in prior
106-2 law and in addition to existing powers and duties, a district that
106-3 was created by special law, or whose creation was confirmed by an
106-4 election required by the special law, before the effective date of
106-5 this Act:
106-6 (1) in deciding whether or not to issue a permit and
106-7 in setting the terms of the permit, shall consider matters set
106-8 forth under Sections 36.113(d) and (e), Water Code, as amended by
106-9 this Act, including, without limitation, whether the proposed use
106-10 of water is consistent with the district's certified water
106-11 management plan; and
106-12 (2) may use funds obtained from permit fees collected
106-13 pursuant to the special law for any purpose consistent with the
106-14 district's certified water management plan including, without
106-15 limitation, making grants, loans, or contractual payments to
106-16 achieve, facilitate, or expedite reductions in groundwater pumping
106-17 or the development or distribution of alternative water supplies.
106-18 SECTION 4.41. An area designated as a critical area under
106-19 Chapter 35, Water Code, as it existed before the effective date of
106-20 this Act, or under other prior law, shall be known and referred to
106-21 as a priority groundwater management area on or after the effective
106-22 date of this Act.
106-23 SECTION 4.42. Not later than September 1, 1998, the Texas
106-24 Natural Resource Conservation Commission must, under Chapter 35,
106-25 Water Code, as amended by this Act, make all designations of
106-26 priority groundwater management areas for which critical area
106-27 reports were required to have been completed before the effective
107-1 date of this Act under Section 35.007, Water Code, as that section
107-2 existed immediately before the effective date of this Act.
107-3 ARTICLE 5. FINANCIAL ASSISTANCE FOR WATER NEEDS AND
107-4 CONSERVATION
107-5 SECTION 5.01. Section 15.431, Water Code, is amended by
107-6 amending Subsection (d) and adding Subsection (g) to read as
107-7 follows:
107-8 (d) Money appropriated by the legislature to be maintained
107-9 as principal in the fund, $10 million of the money transferred to
107-10 that fund by H.B. No. 2, Acts of the 69th Legislature, Regular
107-11 Session, 1985, and half of the money earned as interest on the
107-12 money held as principal in the agricultural trust fund shall be
107-13 maintained as principal. Money maintained as principal in the
107-14 agricultural trust fund may [not] be used by the board to make
107-15 conservation loans to borrower districts and loans to lender
107-16 districts for the purposes listed in Section 17.895 of this code.
107-17 Loans and conservation loans made under this subchapter are subject
107-18 to the provisions of Sections 17.896 through 17.903 of this code.
107-19 Repayments of principal and interest on loans and conservation
107-20 loans made under this subchapter shall be deposited in the
107-21 agricultural trust fund [spent for any purpose].
107-22 (g) In this section, "borrower district," "conservation
107-23 loan," "individual borrower," "lender district," and "loan" have
107-24 the meanings assigned those terms by Section 17.871 of this code.
107-25 SECTION 5.02. Section 16.189, Water Code, is amended to read
107-26 as follows:
107-27 Sec. 16.189. LEASE PAYMENTS. In leasing a state facility
108-1 for a term of years, the board shall require [annual] payments that
108-2 will recover over the lease period not less than the total of:
108-3 (1) all [the annual] principal and interest
108-4 requirements applicable to the debt incurred by the state in
108-5 acquiring the facility; and
108-6 (2) the state's [annual] cost for operation,
108-7 maintenance, and rehabilitation of the facility.
108-8 SECTION 5.03. Chapter 17, Water Code, is amended by adding
108-9 Subchapter L to read as follows:
108-10 SUBCHAPTER L. WATER FINANCIAL ASSISTANCE BOND PROGRAM
108-11 Sec. 17.951. DEFINITIONS. In this subchapter:
108-12 (1) "Fund" means the Texas Water Development Fund II.
108-13 (2) "Resolution" means any resolution or order
108-14 approved by the board authorizing the issuance of water financial
108-15 assistance bonds.
108-16 Sec. 17.952. ISSUANCE OF WATER FINANCIAL ASSISTANCE BONDS.
108-17 The board by resolution may provide for the issuance of water
108-18 financial assistance bonds, which shall be general obligation bonds
108-19 of the state, in an aggregate principal amount not to exceed the
108-20 principal amount authorized to be issued by Section 49-d-8, Article
108-21 III, Texas Constitution.
108-22 Sec. 17.953. CONDITIONS FOR ISSUANCE OF WATER FINANCIAL
108-23 ASSISTANCE BONDS. (a) Water financial assistance bonds may be
108-24 issued as various series and issues.
108-25 (b) Water financial assistance bonds may mature, serially or
108-26 otherwise, not later than 50 years after the date on which they are
108-27 issued.
109-1 (c) Water financial assistance bonds may be issued as bonds,
109-2 notes, or other obligations as permitted by law and may be in the
109-3 form and denominations and be issued in the manner and under the
109-4 terms, conditions, and details as provided by resolution.
109-5 (d) Water financial assistance bonds may be sold at public
109-6 or private sale at a price or prices and on terms determined by the
109-7 board.
109-8 (e) Water financial assistance bonds shall be signed and
109-9 executed as provided by resolution.
109-10 (f) Water financial assistance bonds may bear no interest or
109-11 bear interest at a rate or rates determined in accordance with law.
109-12 (g) Rates of interest on water financial assistance bonds
109-13 may be fixed, variable, floating, adjustable, or otherwise, as
109-14 determined by the board or determined pursuant to any contractual
109-15 arrangements approved by the board. The resolution may provide for
109-16 the payment of interest at any time or the periodic determination
109-17 of interest rates or interest rate periods.
109-18 Sec. 17.954. BOND ENHANCEMENT AGREEMENTS; PAYMENT OF
109-19 EXPENSES. (a) The board at any time and from time to time may
109-20 enter into one or more bond enhancement agreements that the board
109-21 determines to be necessary or appropriate to place the obligation
109-22 of the board, as represented by the water financial assistance
109-23 bonds, in whole or in part, on the interest rate, currency, cash
109-24 flow, or other basis desired by the board. A bond enhancement
109-25 agreement is an agreement for professional services and shall
109-26 contain the terms and conditions and be for the period that the
109-27 board approves.
110-1 (b) The fees and expenses of the board in connection with
110-2 the issuance of water financial assistance bonds and the providing
110-3 of financial assistance to political subdivisions may be paid from
110-4 money in the fund, provided that any payments due from the board
110-5 under a bond enhancement agreement, other than fees and expenses,
110-6 that relate to the payment of debt service on water financial
110-7 assistance bonds constitute payments of principal of and interest
110-8 on the water financial assistance bonds.
110-9 (c) Bond enhancement agreements may include, on terms and
110-10 conditions approved by the board, interest rate swap agreements;
110-11 currency swap agreements; forward payment conversion agreements;
110-12 agreements providing for payments based on levels of or changes in
110-13 interest rates or currency exchange rates; agreements to exchange
110-14 cash flows or a series of payments; agreements, including options,
110-15 puts, or calls, to hedge payment, currency, rate, spread, or other
110-16 exposure; or other agreements that further enhance the
110-17 marketability, security, or creditworthiness of water financial
110-18 assistance bonds.
110-19 Sec. 17.955. PERSONS DESIGNATED TO ACT AS AGENTS OF BOARD.
110-20 (a) In the resolution the board may delegate authority to one or
110-21 more officers, employees, or agents designated by the board to act
110-22 on behalf of the board during the time any series of water
110-23 financial assistance bonds are outstanding to:
110-24 (1) fix dates, prices, interest rates, amortization
110-25 schedules, redemption features, and interest payment periods;
110-26 (2) perform duties and obligations of the board under
110-27 a bond enhancement agreement; and
111-1 (3) perform other procedures specified in the
111-2 resolution.
111-3 (b) The person designated by the board may adjust the
111-4 interest on water financial assistance bonds and perform all duties
111-5 described in a bond enhancement agreement as necessary to permit
111-6 the water financial assistance bonds to be sold or resold at par in
111-7 conjunction with secondary market transactions.
111-8 Sec. 17.956. TEXAS WATER DEVELOPMENT FUND II. The fund is a
111-9 special fund in the state treasury, and all water financial
111-10 assistance bond proceeds shall be deposited in the state treasury
111-11 to the credit of the fund. The fund shall contain a "state
111-12 participation account," an "economically distressed areas program
111-13 account," and a "financial assistance account," and proceeds from
111-14 the sale of water financial assistance bonds issued for the purpose
111-15 of providing financial assistance to political subdivisions shall
111-16 be credited to such accounts as provided by resolution by the
111-17 board. By resolution, the board may create additional accounts
111-18 within the fund as the board determines are necessary or convenient
111-19 for the administration of the fund.
111-20 Sec. 17.957. STATE PARTICIPATION ACCOUNT. (a) The Texas
111-21 Water Development Fund II state participation account, referred to
111-22 as the "state participation account," is an account established
111-23 within the fund in the state treasury. Transfers shall be made
111-24 from this account as provided by this subchapter.
111-25 (b) The state participation account is composed of:
111-26 (1) money and assets attributable to water financial
111-27 assistance bonds designated by the board as issued for projects
112-1 described in Section 16.131;
112-2 (2) money from the sale, transfer, or lease of a
112-3 project described in Subdivision (1) that was acquired,
112-4 constructed, reconstructed, developed, or enlarged with money from
112-5 the state participation account;
112-6 (3) payments received under a bond enhancement
112-7 agreement with respect to water financial assistance bonds
112-8 designated by the board as issued for projects described in Section
112-9 16.131;
112-10 (4) investment income earned on money on deposit in
112-11 the state participation account; and
112-12 (5) any other funds, regardless of their source, that
112-13 the board directs be deposited to the credit of the state
112-14 participation account.
112-15 (c) Money on deposit in the state participation account may
112-16 be used by the board for projects described in Section 16.131 in
112-17 the manner that the board determines necessary for the
112-18 administration of the fund.
112-19 Sec. 17.958. ECONOMICALLY DISTRESSED AREAS PROGRAM ACCOUNT.
112-20 (a) The Texas Water Development Fund II economically distressed
112-21 areas program account, referred to as the "economically distressed
112-22 areas program account," is an account established within the fund
112-23 in the state treasury. Transfers shall be made from this account
112-24 as provided by this subchapter.
112-25 (b) The economically distressed areas program account is
112-26 composed of:
112-27 (1) money and assets attributable to water financial
113-1 assistance bonds designated by the board as issued for projects
113-2 described in Subchapter K;
113-3 (2) money provided by the federal government, the
113-4 state, political subdivisions, and private entities for the purpose
113-5 of paying debt service on water financial assistance bonds issued
113-6 for purposes provided by Subchapter K;
113-7 (3) payments received under a bond enhancement
113-8 agreement with respect to water financial assistance bonds
113-9 designated by the board as issued for purposes provided by
113-10 Subchapter K;
113-11 (4) investment income earned on money on deposit in
113-12 the economically distressed areas program account; and
113-13 (5) any other funds, regardless of their source, that
113-14 the board directs be deposited to the credit of the economically
113-15 distressed areas program account.
113-16 (c) Money on deposit in the economically distressed areas
113-17 program account may be used by the board for purposes provided by
113-18 Subchapter K in the manner that the board determines necessary for
113-19 the administration of the fund.
113-20 Sec. 17.959. FINANCIAL ASSISTANCE ACCOUNT. (a) The Texas
113-21 Water Development Fund II water financial assistance account,
113-22 referred to as the "financial assistance account," is an account
113-23 established within the fund in the state treasury. Transfers shall
113-24 be made from this account as provided by this subchapter.
113-25 (b) The financial assistance account is composed of:
113-26 (1) money and assets attributable to water financial
113-27 assistance bonds designated by the board as issued for purposes
114-1 described in Section 49-d-8, Article III, Texas Constitution, other
114-2 than for purposes described in Sections 17.957 and 17.958;
114-3 (2) payments received under a bond enhancement
114-4 agreement with respect to water financial assistance bonds
114-5 designated by the board as issued for purposes described in Section
114-6 49-d-8, Article III, Texas Constitution, other than for purposes
114-7 described in Sections 17.957 and 17.958;
114-8 (3) investment income earned on money on deposit in
114-9 the financial assistance account; and
114-10 (4) any other funds, regardless of their source, that
114-11 the board directs be deposited to the credit of the financial
114-12 assistance account.
114-13 (c) Money on deposit in the financial assistance account may
114-14 be used by the board for any one or more of the purposes described
114-15 in Section 49-d-8, Article III, Texas Constitution, other than for
114-16 purposes described in Sections 17.957 and 17.958, in the manner
114-17 that the board determines necessary for the administration of the
114-18 fund.
114-19 Sec. 17.960. BOND RESOLUTIONS. (a) In the resolution, the
114-20 board may make additional covenants with respect to water financial
114-21 assistance bonds and may provide for:
114-22 (1) the flow of funds;
114-23 (2) the establishment of accounts and subaccounts
114-24 within the fund that the board determines are necessary for the
114-25 administration of the fund;
114-26 (3) at the discretion of the board, the payment of
114-27 fees and expenses of the board in connection with providing
115-1 financial assistance to political subdivisions as the board
115-2 determines are necessary for the administration of the fund;
115-3 (4) the maintenance, investment, and management of
115-4 money within the fund and any accounts established by resolution by
115-5 the board; and
115-6 (5) any other provisions and covenants that the board
115-7 determines are necessary for the administration of the fund.
115-8 (b) The board may invest and reinvest money in the fund and
115-9 any account therein in any obligations or securities as provided by
115-10 the resolution or by rule adopted by the board.
115-11 (c) The board may adopt and have executed other proceedings,
115-12 agreements, or trust agreements or instruments necessary in the
115-13 issuance of water financial assistance bonds, including, without
115-14 limitation, bond enhancement agreements.
115-15 Sec. 17.961. TRANSFERS TO REVOLVING FUNDS. (a) In order to
115-16 implement and administer a revolving loan program established under
115-17 Title VI of the Federal Water Pollution Control Act (33 U.S.C.
115-18 Section 1381 et seq.), the board may direct the comptroller to
115-19 transfer amounts from the financial assistance account to the state
115-20 water pollution control revolving fund created by Section 15.601 to
115-21 provide financial assistance pursuant to this subchapter.
115-22 (b) In order to implement and administer a revolving loan
115-23 program established by any other federal legislation, including,
115-24 without limitation, Title XIV of the federal Public Health Service
115-25 Act, or any federal agency program under which an additional state
115-26 revolving fund, as defined in Section 15.602, has been established,
115-27 the board may direct the comptroller to transfer amounts from the
116-1 financial assistance account to such additional state revolving
116-2 fund to provide financial assistance pursuant to this subchapter.
116-3 (c) The board shall use the state water pollution control
116-4 revolving fund in accordance with Section 15.604(a)(4) and Section
116-5 603(d)(4), Federal Water Pollution Control Act (33 U.S.C. Section
116-6 1383), as a source of revenue to be deposited in accordance with
116-7 this subchapter for the payment of principal and interest on water
116-8 financial assistance bonds issued by the board, the proceeds of
116-9 which are deposited into the state water pollution control
116-10 revolving fund, and to make payments under a bond enhancement
116-11 agreement with respect to principal or interest on the water
116-12 financial assistance bonds.
116-13 (d) In the event amounts are transferred to any additional
116-14 state revolving fund, as defined in Section 15.602, pursuant to
116-15 Subsection (b), the board shall, to the extent permitted by the
116-16 federal legislation or federal agency program under which such
116-17 additional state revolving fund was established, use the additional
116-18 state revolving fund as a source of revenue to be deposited in
116-19 accordance with this subchapter for the payment of principal and
116-20 interest on water financial assistance bonds issued by the board,
116-21 the proceeds of which are deposited into the additional state
116-22 revolving fund, and to make payments under a bond enhancement
116-23 agreement with respect to principal or interest on the water
116-24 financial assistance bonds.
116-25 Sec. 17.962. STATE APPROVALS. (a) Water financial
116-26 assistance bonds may not be issued under this subchapter unless
116-27 such issuance has been reviewed and approved by the bond review
117-1 board.
117-2 (b) The proceedings relating to the water financial
117-3 assistance bonds issued under this subchapter are subject to review
117-4 and approval by the attorney general in the same manner and with
117-5 the same effect as provided by Chapter 656, Acts of the 68th
117-6 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
117-7 Civil Statutes).
117-8 (c) After approval by the attorney general of the
117-9 proceedings relating to water financial assistance bonds issued
117-10 under this subchapter, registration of the proceedings by the
117-11 comptroller, and delivery of the water financial assistance bonds
117-12 to the purchasers, the water financial assistance bonds are
117-13 incontestable and constitute general obligations of the state.
117-14 Sec. 17.963. PAYMENT OF BOARD OBLIGATIONS. (a) The board
117-15 shall cooperate with the comptroller to develop procedures for the
117-16 payment of principal and interest on water financial assistance
117-17 bonds and any obligation under a bond enhancement agreement, as the
117-18 same become due and owing.
117-19 (b) If there is not enough money in any account of the fund
117-20 available to pay the principal and interest on water financial
117-21 assistance bonds issued for such account, including money to make
117-22 payments by the board under a bond enhancement agreement with
117-23 respect to principal or interest on such water financial assistance
117-24 bonds, the board shall notify the comptroller of such occurrence,
117-25 and the comptroller shall transfer out of the first money coming
117-26 into the state treasury not otherwise appropriated by the
117-27 constitution the amount required to pay the obligations of the
118-1 board that are due and owing. The comptroller shall make the
118-2 transfers required by Section 49-d-8, Article III, Texas
118-3 Constitution, and this subchapter in the manner specified in the
118-4 resolution.
118-5 Sec. 17.964. ELIGIBLE SECURITY. Water financial assistance
118-6 bonds are eligible to secure deposits of public funds of the state
118-7 and political subdivisions of the state. Water financial
118-8 assistance bonds are lawful and sufficient security for deposits to
118-9 the extent of their face value.
118-10 Sec. 17.965. LEGAL INVESTMENTS. Water financial assistance
118-11 bonds are legal and authorized investments for:
118-12 (1) banks;
118-13 (2) savings banks;
118-14 (3) trust companies;
118-15 (4) savings and loan associations;
118-16 (5) insurance companies;
118-17 (6) fiduciaries;
118-18 (7) trustees;
118-19 (8) guardians; and
118-20 (9) sinking funds and other public funds of the state
118-21 and its agencies and of political subdivisions of the state.
118-22 Sec. 17.966. MUTILATED, LOST, OR DESTROYED BONDS. The board
118-23 may provide for the replacement of mutilated, lost, or destroyed
118-24 water financial assistance bonds.
118-25 Sec. 17.967. REFUNDING BONDS. (a) The board by resolution
118-26 may provide for the issuance of water financial assistance bonds to
118-27 refund outstanding bonds and water financial assistance bonds
119-1 issued under this chapter and federal contractual obligations
119-2 incurred under Section 49-d, Article III, Texas Constitution.
119-3 (b) The board may sell the refunding water financial
119-4 assistance bonds and use the proceeds to retire any of the
119-5 outstanding obligations described in Subsection (a), exchange the
119-6 refunding water financial assistance bonds for the outstanding
119-7 bonds or water financial assistance bonds, or refund any of the
119-8 outstanding obligations described in Subsection (a) in the manner
119-9 provided by any other applicable statute, including Chapter 503,
119-10 Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas
119-11 Civil Statutes), and Chapter 784, Acts of the 61st Legislature,
119-12 Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
119-13 Statutes).
119-14 Sec. 17.968. SALE OF POLITICAL SUBDIVISION BONDS BY THE
119-15 BOARD; USE OF PROCEEDS. (a) The board may sell or dispose of
119-16 political subdivision bonds purchased with money in the fund to any
119-17 person, including the Texas Water Resources Finance Authority, and
119-18 the board, in such manner as it shall determine, may apply the
119-19 proceeds of the sale of political subdivision bonds held by the
119-20 board to:
119-21 (1) pay debt service on water financial assistance
119-22 bonds issued under this subchapter; or
119-23 (2) provide financial assistance to political
119-24 subdivisions for any one or more of the purposes authorized by
119-25 Section 49-d-8, Article III, Texas Constitution.
119-26 (b) The board shall sell the political subdivision bonds at
119-27 the price and under the terms that it determines to be reasonable.
120-1 Sec. 17.969. TAX EXEMPT BONDS. Since the board is
120-2 performing an essential governmental function in the exercise of
120-3 the powers conferred on it by this chapter, water financial
120-4 assistance bonds issued under this subchapter and the interest and
120-5 income from the water financial assistance bonds, including any
120-6 profit made on the sale of water financial assistance bonds, and
120-7 all fees, charges, gifts, grants, revenues, receipts, and other
120-8 money received or pledged to pay or secure the payment of water
120-9 financial assistance bonds are free from taxation and assessments
120-10 of every kind by this state and any city, county, district,
120-11 authority, or other political subdivision of this state.
120-12 Sec. 17.970. ENFORCEMENT BY MANDAMUS. Payment of water
120-13 financial assistance bonds and obligations incurred under bond
120-14 enhancement agreements and performance of official duties
120-15 prescribed by Section 49-d-8, Article III, Texas Constitution, and
120-16 this subchapter may be enforced in a court of competent
120-17 jurisdiction by mandamus or other appropriate proceedings.
120-18 Sec. 17.971. SUBCHAPTER CUMULATIVE OF OTHER LAWS. (a) This
120-19 subchapter is cumulative of other laws on the subject, and the
120-20 board may use provisions of other applicable laws in the issuance
120-21 of water financial assistance bonds and the execution of bond
120-22 enhancement agreements, but this subchapter is wholly sufficient
120-23 authority for the issuance of water financial assistance bonds, the
120-24 execution of bond enhancement agreements, and the performance of
120-25 all other acts and procedures authorized by this subchapter.
120-26 (b) In addition to other authority granted by this
120-27 subchapter, the board may exercise the authority granted to the
121-1 governing body of an issuer with regard to the issuance of
121-2 obligations under Chapter 656, Acts of the 68th Legislature,
121-3 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
121-4 Statutes).
121-5 (c) In exercising the powers granted to the board under this
121-6 subchapter, the board may exercise any powers granted to it under
121-7 this chapter and Chapter 16 including the powers described in
121-8 Subchapters D, E, F, G, and K, notwithstanding any provision in
121-9 this chapter or Chapter 16 that may be inconsistent with or in
121-10 conflict with the provisions of this subchapter as a result of the
121-11 establishment of the fund as a fund separate and distinct from the
121-12 existing Texas Water Development Fund, it being the intent of the
121-13 legislature that the financial assistance made available to
121-14 political subdivisions under this subchapter, in pursuance of the
121-15 authority granted by Section 49-d-8, Article III, Texas
121-16 Constitution, be provided by the board in the manner the board
121-17 deems necessary to achieve the purposes of Section 49-d-8, Article
121-18 III, Texas Constitution, and notwithstanding any other existing
121-19 provisions in this chapter or Chapter 16, the provisions of this
121-20 chapter and Chapter 16 shall be inclusive of the provisions of this
121-21 subchapter and Section 49-d-8, Article III, Texas Constitution.
121-22 SECTION 5.04. Section 17.001(7), Water Code, is amended to
121-23 read as follows:
121-24 (7) "Water supply project" means:
121-25 (A) any engineering undertaking or work to
121-26 conserve and develop [surface or subsurface] water resources of the
121-27 state, including the control, storage, and preservation of its
122-1 storm water and floodwater and the water of its rivers and streams
122-2 for all useful and lawful purposes by the acquisition, improvement,
122-3 extension, or construction of dams, reservoirs, brush control,
122-4 precipitation enhancement, desalinization, and other water storage
122-5 and conservation projects, which may include flood storage,
122-6 including underground storage projects, filtration and water
122-7 treatment plants, including any system necessary to transport water
122-8 from storage to points of distribution or from storage to
122-9 filtration and treatment plants, including facilities for
122-10 transporting water therefrom to wholesale purchasers or to retail
122-11 purchasers as authorized by Section 17.072(c) of this code, by the
122-12 acquisition, by purchase of rights in [underground] water, by the
122-13 drilling of wells, or for any one or more of these purposes or
122-14 methods; [or]
122-15 (B) any engineering undertaking or work outside
122-16 the state to provide for the maintenance and enhancement of the
122-17 quality of water by eliminating saline inflow through well pumping
122-18 and deep well injection of brine if such undertaking or work
122-19 results in water being available for use in or for the benefit of
122-20 Texas;
122-21 (C) any undertaking or work by Texas political
122-22 subdivisions to conserve, convey, or develop water resources in
122-23 areas outside Texas if such undertaking or work results in water
122-24 being available for use in or for the benefit of Texas; or
122-25 (D) a channel storage reservoir located on an
122-26 international boundary between Texas and Mexico that develops the
122-27 water resources of Texas and the research, planning, and actions
123-1 necessary to obtain regulatory authority at the local, state, and
123-2 federal level.
123-3 SECTION 5.05. Section 17.001, Water Code, is amended by
123-4 amending Subdivision (17) and adding Subdivision (25) to read as
123-5 follows:
123-6 (17) "Financial assistance" means any loan of funds
123-7 from the water supply account, the water quality enhancement
123-8 account, or the flood control account to a political subdivision
123-9 for construction of a water supply project, including projects
123-10 referenced in the state water plan, treatment works, or flood
123-11 control measures through the purchase of bonds or other obligations
123-12 of the political subdivision, and any loan of funds the source of
123-13 which is the proceeds from water financial assistance bonds.
123-14 (25) "Water financial assistance bonds" means the
123-15 Texas Water Development Bonds authorized to be issued by Section
123-16 49-d-8, Article III, Texas Constitution, and dedicated to use for
123-17 the purposes described in that section.
123-18 SECTION 5.06. Section 17.011, Water Code, is amended by
123-19 adding Subsection (c) to read as follows:
123-20 (c) Notwithstanding any other provision of this section, the
123-21 board by resolution may issue water financial assistance bonds for
123-22 any one or more of the purposes described in Section 49-d-8,
123-23 Article III, Texas Constitution, in an aggregate principal amount
123-24 not to exceed the amount of bonds authorized by Section 49-d-8,
123-25 Article III, Texas Constitution, in accordance with the provisions
123-26 of Subchapter L.
123-27 SECTION 5.07. Section 17.0111, Water Code, is amended to
124-1 read as follows:
124-2 Sec. 17.0111. DEDICATION OF CERTAIN BONDS. No more than
124-3 $250,000,000 in principal [Fifty percent of the] amount of bonds
124-4 authorized by Article III, Section 49-d-7, of the Texas
124-5 Constitution, and issued under either that section or Article III,
124-6 Section 49-d-8, of the Texas Constitution, may be [is] dedicated to
124-7 the purposes provided by Subchapter K [of this chapter].
124-8 SECTION 5.08. Section 17.182, Water Code, is amended to read
124-9 as follows:
124-10 Sec. 17.182. PROCEEDS FROM SALE. Unless used to pay debt
124-11 service on bonds issued under this chapter, the proceeds from the
124-12 sale of political subdivision bonds held by the board either shall
124-13 be credited to the account from which financial assistance was made
124-14 to the political subdivision, except that accrued interest shall be
124-15 credited to the interest and sinking fund, or shall be deposited to
124-16 the credit of the Texas Water Development Fund II, established
124-17 within the state treasury pursuant to Section 49-d-8, Article III,
124-18 Texas Constitution. However, no such proceeds shall be deposited
124-19 to the credit of the Texas Water Development Fund II unless the
124-20 executive administrator certifies to the board that the transfer of
124-21 such proceeds into the Texas Water Development Fund II will not
124-22 cause the board, in the fiscal year the transfer is made, to direct
124-23 the comptroller to transfer out of the first money coming into the
124-24 state treasury during that fiscal year funds sufficient for the
124-25 payment of principal of or interest on water development bonds,
124-26 other than water development bonds issued for the purposes
124-27 described in Subsection (e), Section 49-d-7, Article III, Texas
125-1 Constitution, coming due in that fiscal year.
125-2 SECTION 5.09. Section 17.278, Water Code, is amended to read
125-3 as follows:
125-4 Sec. 17.278. FINDINGS REGARDING PERMITS. If an application
125-5 includes a proposal for a wastewater treatment plant, the board may
125-6 not deliver funds for the wastewater treatment plant until the
125-7 applicant has obtained a permit for the construction and operation
125-8 of the plant and approval of the plans and specifications for the
125-9 plant from the commission. If an application includes a proposal
125-10 for a wastewater treatment plant that is located outside the
125-11 jurisdiction of this state and that is not subject to the
125-12 permitting authority of the commission, the board may not deliver
125-13 funds for the wastewater treatment plant until after the board
125-14 reviews the plans and specifications in coordination with the
125-15 commission and finds that the wastewater treatment plant is capable
125-16 of producing effluent that will meet federal and Texas-approved
125-17 water quality standards and if effluent produced will result in
125-18 water being available for use in or for the benefit of Texas.
125-19 SECTION 5.10. Sections 44.007 through 44.010, Agriculture
125-20 Code, are amended to read as follows:
125-21 Sec. 44.007. LINKED DEPOSIT PROGRAM. (a) The board shall
125-22 establish a linked deposit program to encourage commercial lending
125-23 for the enhanced production, processing, and marketing of certain
125-24 agricultural crops and for the financing [purchase] of water
125-25 conservation projects or equipment for agricultural production
125-26 purposes.
125-27 (b) The board shall promulgate rules for the loan portion of
126-1 the linked deposit program. The rules must include:
126-2 (1) a list of the categories of crops customarily
126-3 grown in Texas;
126-4 (2) a list of crops that are alternative agricultural
126-5 crops;
126-6 (3) a list of crops the production of which has
126-7 declined markedly because of natural disasters; and
126-8 (4) identification of projects and [the] types of
126-9 equipment considered as water conservation projects or equipment
126-10 for agricultural production purposes.
126-11 (c) In order to participate in the linked deposit program,
126-12 an eligible lending institution may solicit loan applications from
126-13 eligible borrowers.
126-14 (d) After reviewing an application and determining that the
126-15 applicant is eligible and creditworthy, the eligible lending
126-16 institution shall send the application for a linked deposit loan to
126-17 the board or the administrator of the Texas Agricultural Finance
126-18 Authority.
126-19 (e) The eligible lending institution shall certify the
126-20 interest rate applicable to the specific eligible borrower and
126-21 attach it to the application sent to the board or the administrator
126-22 of the Texas Agricultural Finance Authority.
126-23 (f) After reviewing each linked deposit loan application,
126-24 the board or the administrator of the Texas Agricultural Finance
126-25 Authority shall recommend to the comptroller [state treasurer] the
126-26 acceptance or rejection of the application.
126-27 (g) After acceptance of the application, the comptroller
127-1 [state treasurer] shall place a linked deposit with the applicable
127-2 eligible lending institution for the period the comptroller
127-3 [treasurer] considers appropriate. The comptroller [state
127-4 treasurer] may not place a deposit for a period extending beyond
127-5 the state fiscal biennium in which it is placed. Subject to the
127-6 limitation described by Section 44.010 of this chapter, the
127-7 comptroller [treasurer] may place time deposits at an interest rate
127-8 described by Section 44.001(5)(A) of this chapter, notwithstanding
127-9 any order of the State Depository Board to the contrary.
127-10 (h) Before the placing of a linked deposit, the eligible
127-11 lending institution and the state, represented by the comptroller
127-12 [state treasurer] and the board or the administrator of the Texas
127-13 Agricultural Finance Authority, shall enter into a written deposit
127-14 agreement containing the conditions on which the linked deposit is
127-15 made.
127-16 (i) If a lending institution holding linked deposits ceases
127-17 to be a state depository, the comptroller [state treasurer] may
127-18 withdraw the linked deposits.
127-19 (j) The board may adopt rules that create a procedure for
127-20 determining priorities for loans granted under this chapter. Each
127-21 rule adopted must state the policy objective of the rule. The
127-22 policy objectives of the rules may include preferences to:
127-23 (1) achieve adequate geographic distribution of loans;
127-24 (2) assist certain industries;
127-25 (3) encourage certain practices including water
127-26 conservation; and
127-27 (4) encourage value-added processing of agricultural
128-1 products.
128-2 Sec. 44.008. COMPLIANCE. (a) On accepting a linked
128-3 deposit, an eligible lending institution must loan money to
128-4 eligible borrowers in accordance with the deposit agreement and
128-5 this chapter. The eligible lending institution shall forward a
128-6 compliance report to the board.
128-7 (b) The board shall monitor compliance with this chapter and
128-8 inform the comptroller [state treasurer] of noncompliance on the
128-9 part of an eligible lending institution.
128-10 Sec. 44.009. STATE LIABILITY PROHIBITED. The state is not
128-11 liable to an eligible lending institution for payment of the
128-12 principal, interest, or any late charges on a loan made to an
128-13 eligible borrower. A delay in payment or default on a loan by an
128-14 eligible borrower does not affect the validity of the deposit
128-15 agreement. Linked deposits are not an extension of the state's
128-16 credit within the meaning of any state constitutional prohibition.
128-17 Sec. 44.010. LIMITATIONS IN PROGRAM. (a) At any one time,
128-18 not more than $15 [$5] million, of which $10 million may only be
128-19 used to finance water conservation projects, may be placed in
128-20 linked deposits under this chapter.
128-21 (b) The maximum amount of a loan under this chapter to
128-22 process and market Texas agricultural crops is $500,000. The
128-23 maximum amount of a loan under this chapter to produce alternative
128-24 agricultural crops in this state is $250,000. The maximum amount
128-25 of a loan under this chapter to finance [purchase] water
128-26 conservation projects or equipment for agricultural production
128-27 purposes is $250,000.
129-1 (c) A loan granted pursuant to this chapter must be applied
129-2 to the purchase or lease of land, equipment, seed, fertilizer,
129-3 direct marketing facilities, or processing facilities, or to
129-4 payment for professional services.
129-5 (d) A loan granted pursuant to this chapter, when used to
129-6 finance eligible water conservation projects or equipment, may be
129-7 applied to existing debt resulting from the financing of water
129-8 conservation projects or equipment for agricultural purposes as
129-9 defined by board rule.
129-10 SECTION 5.11. Subchapter B, Chapter 11, Tax Code, is amended
129-11 by adding Section 11.32 to read as follows:
129-12 Sec. 11.32. CERTAIN WATER CONSERVATION INITIATIVES. The
129-13 governing body of a taxing unit by official action of the governing
129-14 body adopted in the manner required by law for official actions may
129-15 exempt from taxation part or all of the assessed value of property
129-16 on which approved water conservation initiatives have been
129-17 implemented. For purposes of this section, approved water
129-18 conservation initiatives shall be designated pursuant to an
129-19 ordinance or other law adopted by the governing unit.
129-20 SECTION 5.12. Section 2155.444, Government Code, is amended
129-21 by adding Subsection (d) to read as follows:
129-22 (d) The commission and all state agencies making purchase of
129-23 vegetation for landscaping purposes, including plants, shall give
129-24 preference to vegetation native to Texas if the cost to the state
129-25 is not greater and the quality is not inferior.
129-26 SECTION 5.13. Subchapter F, Chapter 5, Water Code, is
129-27 amended by adding Sections 5.2361 and 5.2362 to read as follows:
130-1 Sec. 5.2361. WATER RESOURCE MANAGEMENT ASSESSMENT. (a) To
130-2 ensure the adequate support of the state's responsibilities for the
130-3 management of water resources, including the development of
130-4 available water supplies, the provision of adequate water utility
130-5 services, and the protection of the quality of water and drinking
130-6 water sources in the state, the commission shall collect a fee from
130-7 each public water supply system in the state.
130-8 (b) The fee shall be collected by the commission annually
130-9 from the owner of each system authorized under Chapter 341, Health
130-10 and Safety Code, to distribute drinking water to the public. The
130-11 fee shall be submitted to the commission by the owner not later
130-12 than September 30 each year. The public water supply system shall
130-13 pay the annual fee to the commission on the basis of the number of
130-14 connections served during the preceding 12 months. A public water
130-15 supply system may not assess or collect a fee for a residential
130-16 user who consumes less than 7,000 gallons of water each month.
130-17 Each public water supply system shall assess and collect on a
130-18 monthly basis the fee for each retail connection supplied by that
130-19 system according to the following schedule:
130-20 RETAIL WATER CONNECTION FEE
130-21 Meter Size Usage Monthly Fee
130-22 1 inch less than 7,000 gallons per month no fee
130-23 or less 7,000 gallons or more but less $ 1.00
130-24 than 15,000 gallons per month
130-25 15,000 gallons or more but less $ 1.50
130-26 than 30,000 gallons per month
130-27 30,000 gallons or more but less $ 2.00
131-1 than 50,000 gallons per month
131-2 50,000 gallons or more but less $ 3.00
131-3 than 70,000 gallons per month
131-4 70,000 gallons or more but less $ 4.00
131-5 than 90,000 gallons per month
131-6 90,000 gallons or more $ 5.00
131-7 Greater than Not applicable $ 6.00
131-8 1 inch
131-9 but less than
131-10 3 inches
131-11 3 inches Not applicable $ 9.00
131-12 or more but
131-13 less than
131-14 4 inches
131-15 4 inches Not applicable $15.00
131-16 or more but
131-17 less than
131-18 6 inches
131-19 6 inches Not applicable $25.00
131-20 or more but
131-21 less than
131-22 8 inches
131-23 8 inches Not applicable $40.00
131-24 or more but
131-25 less than
131-26 10 inches
132-1 10 Not applicable $50.00
132-2 inches or
132-3 more
132-4 (c) The owner of a public water supply system subject to an
132-5 assessment under this section may retain from the fees collected by
132-6 the owner an amount equivalent to five cents per month for each
132-7 connection on its system to offset the administrative costs of
132-8 assessment and collection.
132-9 (d) Fees collected under this section shall be deposited to
132-10 the credit of the water facilities fund.
132-11 (e) Fees assessed under this section and Section 5.235(n)
132-12 may be combined and listed on the customer's bill as one line item
132-13 entitled "State Water Resource Fee" and shall be collected in
132-14 addition to other charges for utility services.
132-15 Sec. 5.2362. BOTTLED WATER FEE. (a) The Texas Department
132-16 of Health annually shall assess against each bottled water plant
132-17 operator certified by rule of the Texas Department of Health, a fee
132-18 based on annual gross receipts as follows:
132-19 (1) on annual gross receipts of less than $10,000, a
132-20 fee of $250;
132-21 (2) on annual gross receipts of at least $10,000 but
132-22 not more than $25,000, a fee of $500;
132-23 (3) on annual gross receipts of more than $25,000 but
132-24 not more than $100,000, a fee of $1,250;
132-25 (4) on annual gross receipts of more than $100,000 but
132-26 not more than $200,000, a fee of $3,000;
132-27 (5) on annual gross receipts of more than $200,000 but
133-1 not more than $1 million, a fee of $9,000;
133-2 (6) on annual gross receipts of more than $1 million
133-3 but not more than $10 million, a fee of $12,000; and
133-4 (7) on annual gross receipts of more than $10 million,
133-5 a fee of $15,000.
133-6 (b) Fees assessed under this section shall be collected in
133-7 the manner provided by Texas Department of Health rule and shall be
133-8 deposited to the credit of the water facilities fund.
133-9 (c) The annual gross receipts from the sale of water
133-10 purchased by a bottled water plant operator are not subject to the
133-11 fee imposed by this section.
133-12 SECTION 5.14. Section 5.235(n)(2), Water Code, is amended to
133-13 read as follows:
133-14 (2) The regulatory assessment may be listed on the
133-15 customer's bill as a separate item and shall be collected in
133-16 addition to other charges for utility services. The regulatory
133-17 assessment may be combined with the fee assessed under Section
133-18 5.2361 and listed on the customer's bill as one line item as
133-19 provided by Section 5.2361(e).
133-20 SECTION 5.15. Subchapter D, Chapter 11, Water Code, is
133-21 amended by adding Sections 11.1352 and 11.1353 to read as follows:
133-22 Sec. 11.1352. ANNUAL WATER RIGHTS FEE. (a) The commission
133-23 shall assess a fee for water rights held under the authority of
133-24 this chapter in the amounts specified in Subsection (b). A fee may
133-25 not be assessed for saline water rights or water rights for
133-26 municipal use. The fee shall be paid annually by the water right
133-27 holder to the commission and, except as otherwise provided in this
134-1 section, shall be based on the amount of water used under the water
134-2 right.
134-3 (b) Fees under this section shall be assessed for the
134-4 following uses and may not exceed the following amounts:
134-5 (1) industrial--$1 per acre-foot;
134-6 (2) crop or livestock production or other agricultural
134-7 uses--10 cents per acre-foot;
134-8 (3) other consumptive freshwater uses--$1 per
134-9 acre-foot; and
134-10 (4) hydro-power--one hundredth of one cent per
134-11 kilowatt produced.
134-12 (c) The owner of a water right that authorizes a single
134-13 quantity of water for multiple uses shall identify to the
134-14 commission, for the purposes of Subsection (b), a specific amount
134-15 of water in proportion to the amount of water actually being used
134-16 under the water right for each use identified under Subsection (b).
134-17 (d) The fee shall be assessed against each customer of the
134-18 water right holder for the amount of water used or the amount of
134-19 hydroelectric power produced that is committed to the customer by
134-20 contract. The water right holder shall pay all fees assessed
134-21 against its customers by the payment deadline established by the
134-22 commission, and each customer shall reimburse the water right
134-23 holder on demand by the water right holder. The water right holder
134-24 may waive its right to reimbursement against any customer.
134-25 (e) Fees collected under this section shall be deposited to
134-26 the credit of the water facilities fund.
134-27 (f) Except as provided by Section 11.1353(a), a water right
135-1 holder within the jurisdiction of a watermaster authorized under
135-2 this chapter who pays a fee to reimburse the watermaster for the
135-3 expenses of that office is not subject to a fee for a water right
135-4 under this section.
135-5 Sec. 11.1353. WATER RIGHT WITHIN WATERMASTER'S JURISDICTION;
135-6 GROUNDWATER CONSERVATION DISTRICT; FEES. (a) To be eligible to
135-7 receive financial assistance under Section 15.015(a), a political
135-8 subdivision that holds a water right located in an area under the
135-9 jurisdiction of a watermaster must pay fees at the rates
135-10 established under Section 11.1352(b) according to the amount of
135-11 water actually diverted and used during the previous calendar year
135-12 as reflected in the records of the appropriate watermaster. The
135-13 fees shall be paid annually beginning before the first anniversary
135-14 of the date on which the fees were first imposed by law if the
135-15 political subdivision already is located within the jurisdiction of
135-16 a watermaster. If the political subdivision comes within the
135-17 jurisdiction of a watermaster after the date on which the fees were
135-18 first imposed by law, the political subdivision shall pay fees
135-19 under this subsection beginning before the first anniversary of the
135-20 establishment of the watermaster.
135-21 (b) A groundwater conservation district may elect to pay an
135-22 annual fee of $3 for each residential connection served by public
135-23 water supply systems in a county with a population of 40,000 or
135-24 less in the district instead of the water supply systems paying the
135-25 fees under Section 5.2361(b).
135-26 (c) Fees collected under this section shall be deposited to
135-27 the credit of the water facilities fund.
136-1 SECTION 5.16. Subchapter C, Chapter 11, Water Code, is
136-2 amended by adding Section 11.0851 to read as follows:
136-3 Sec. 11.0851. COMPENSATION TO BASIN OF ORIGIN. (a) In
136-4 approving an application under Section 11.085, the commission shall
136-5 determine an amount of money to be paid by the applicant to the
136-6 benefit of the basin of origin to assist the basin of origin in
136-7 providing projects to conserve, convey, and develop surface or
136-8 subsurface water resources, to provide for the maintenance and
136-9 enhancement of the quality of water, and to provide nonstructural
136-10 or structural flood control. The amount of money to be paid may
136-11 not be less than $1 per acre-foot authorized to be transferred each
136-12 year. In determining the amount, the commission shall consult with
136-13 the board and consider, in part, the projected future needs of the
136-14 basin of origin as identified in the state water plan.
136-15 (b) The compensation determined by the commission under
136-16 Subsection (a) shall be paid for the benefit of the basin of origin
136-17 and deposited to the credit of the water facilities fund. The
136-18 compensation shall be paid annually during the term for which the
136-19 transfer is authorized.
136-20 (c) Payments deposited in the water facilities fund under
136-21 Subsection (b) shall be accounted for separately according to the
136-22 appropriate basin of origin. These payments may not be used in
136-23 determining the percentage of money allocated under Sections
136-24 15.014(b) and (c). These payments may be used by the board to
136-25 benefit the basin of origin:
136-26 (1) by providing financial assistance, including
136-27 low-interest loans, to political subdivisions located in the basin
137-1 of origin for projects under Section 15.102(a);
137-2 (2) for acquisition of projects under Subchapter E,
137-3 Chapter 15, or Subchapter E, Chapter 16;
137-4 (3) for payment of debt service on bonds issued by the
137-5 board on behalf of the state for projects that benefit the basin of
137-6 origin; or
137-7 (4) for other purposes for which board funding
137-8 programs may be used to benefit the basin of origin.
137-9 SECTION 5.17. Subchapter E, Chapter 13, Water Code, is
137-10 amended by adding Section 13.143 to read as follows:
137-11 Sec. 13.143. NOTICE OF WHOLESALE WATER SUPPLY CONTRACT. A
137-12 district or authority created under Section 52, Article III, or
137-13 Section 59, Article XVI, Texas Constitution, a retail public
137-14 utility, a wholesale water service, or other person providing a
137-15 retail public utility with a wholesale water supply shall provide
137-16 the commission with a certified copy of any wholesale water supply
137-17 contract with a retail public utility within 30 days after the date
137-18 of the execution of the contract. The submission must include the
137-19 amount of water being supplied, term of the contract, consideration
137-20 being given for the water, purpose of use, location of use, source
137-21 of supply, point of delivery, limitations on the reuse of water,
137-22 and any other condition or agreement relating to the contract.
137-23 SECTION 5.18. Section 15.001(5), Water Code, is amended to
137-24 read as follows:
137-25 (5) "Political subdivision" means a state agency,
137-26 city, county, district or authority created under Article III,
137-27 Section 52, or Article XVI, Section 59, of the Texas Constitution,
138-1 any other political subdivision of the state, any interstate
138-2 compact commission to which the state is a party, and any
138-3 [nonprofit] water supply or sewer service corporation as defined by
138-4 Section 13.002 [created and operating under Chapter 76, Acts of the
138-5 43rd Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
138-6 Texas Civil Statutes)].
138-7 SECTION 5.19. Section 15.002(a), Water Code, is amended to
138-8 read as follows:
138-9 (a) The legislature finds that it is in the public interest
138-10 and to the benefit of the general public of the state to encourage
138-11 and to assist in the planning and construction of projects to
138-12 develop and conserve the storm water and floodwater as well as the
138-13 ordinary flows of the rivers and streams of the state and of the
138-14 subsurface water resources in the state, to maintain and enhance
138-15 the quality of the water of the state, to provide protection to the
138-16 state's citizens from the floodwater of the rivers and streams of
138-17 the state, to provide drainage, subsidence control, public beach
138-18 nourishment, recharge, chloride control, and desalinization, to
138-19 allow the purchase of water rights for future transfer or for use,
138-20 or for holding or retiring for environmental purposes, to provide a
138-21 mechanism for state acquisition and enhancement of fish or wildlife
138-22 habitat, and other purposes as provided by law or board rule.
138-23 SECTION 5.20. Section 15.008, Water Code, is amended to read
138-24 as follows:
138-25 Sec. 15.008. Grant Standards. Chapter 783, Government Code,
138-26 [The Uniform Grant and Contract Management Act of 1981 (Article
138-27 4413(32g), Vernon's Texas Civil Statutes)] does not apply to a
139-1 contract under Subchapter C, F, H, J, [or] K, or L of this chapter.
139-2 SECTION 5.21. Subchapter B, Chapter 15, Water Code, is
139-3 amended to read as follows:
139-4 SUBCHAPTER B. WATER ASSISTANCE FUND AND WATER FACILITIES FUND
139-5 Sec. 15.011. Water Assistance Fund. (a) The water
139-6 assistance fund is created and shall be administered by the board
139-7 under this chapter and rules adopted by the board.
139-8 (b) After notice and hearing and subject to any limitations
139-9 established by the General Appropriations Act, the board may
139-10 transfer money from the fund to the loan fund created under
139-11 Subchapter C of this chapter, the project [storage] acquisition
139-12 fund created under Subchapter E of this chapter, the research and
139-13 planning fund created under Subchapter F of this chapter, [and] the
139-14 hydrographic survey account created under Subchapter M of this
139-15 chapter, the pilot weather modification fund created under
139-16 Subchapter N of this chapter, and the conservation and restoration
139-17 fund created under Subchapter O of this chapter, provided the
139-18 hydrographic survey account transfer does not exceed $425,000.
139-19 (c) The board may transfer money in the fund to the water
139-20 bank account to be used by the board for administration and
139-21 operation of the Texas Water Bank.
139-22 Sec. 15.012. Management of Fund. (a) The board may invest,
139-23 reinvest, and direct the investment of money accumulated in the
139-24 fund.
139-25 (b) Money appropriated by the legislature to the fund shall
139-26 be deposited in this fund. Gifts or grants from the United States
139-27 government, local or regional governments, private sources, or
140-1 other sources may be deposited in this fund. Money from the water
140-2 facilities fund may be transferred to this fund at the direction of
140-3 the legislature or the board.
140-4 (c) Money appropriated to the fund by the legislature for a
140-5 specific purpose stated in Subchapter C, E, F, [or] M, N, or O of
140-6 this chapter or appropriated to any other fund into which money
140-7 from the fund may be transferred shall be placed in the appropriate
140-8 fund created by that subchapter.
140-9 (d) The money held in the fund may be invested as provided
140-10 by law for investment of money under Section 404.024, Government
140-11 Code.
140-12 Sec. 15.013. WATER FACILITIES FUND. (a) The water
140-13 facilities fund is a special account in the general revenue fund.
140-14 The fund shall be administered by the board under this chapter and
140-15 rules adopted by the board. The fund is created and shall be
140-16 maintained to provide funding for the state's various programs for
140-17 water resources development and management.
140-18 (b) The water facilities fund consists of:
140-19 (1) appropriations from the legislature;
140-20 (2) fees collected under Sections 5.2361, 5.2362,
140-21 11.0851, 11.1352, and 11.1353;
140-22 (3) repayments of loans from the water loan assistance
140-23 fund;
140-24 (4) money from the sale or lease of state ownership
140-25 interests in projects under Subchapter E;
140-26 (5) interest earned on money in the fund;
140-27 (6) gifts, grants, or donations;
141-1 (7) money transferred from any other source at the
141-2 board's direction as provided by law; and
141-3 (8) money received from the sale of any political
141-4 subdivision bonds or obligations held in the water loan assistance
141-5 fund or the project acquisition fund.
141-6 Sec. 15.014. MANAGEMENT AND USE OF WATER FACILITIES FUND.
141-7 (a) An amount not to exceed 2-1/2 percent of the fees deposited in
141-8 the water facilities fund may be used to pay the operating expenses
141-9 of the commission relating to water resources management and
141-10 protection. Fees collected under Sections 5.2361 and 5.2362 may be
141-11 used to supplement any other money available to the commission to
141-12 support the commission's regulatory and water resource programs
141-13 under this code and Chapter 341, Health and Safety Code. Fees
141-14 collected under Sections 11.1352 and 11.1353 may be used to
141-15 supplement any other money available to the commission for the
141-16 administration of Chapter 11 and other provisions of this code
141-17 relating to the management of the surface water resources of the
141-18 state. Except as provided by Subsections (b), (c), and (d), the
141-19 fees described by this subsection may be used only for the uses
141-20 described by this subsection. The board may transfer money from
141-21 the water facilities fund to the water resource management account
141-22 in the general revenue fund.
141-23 (b) All money deposited in the water facilities fund under
141-24 Sections 15.013(b)(3), (4), and (8) and 70 percent of the money in
141-25 the water facilities fund remaining after uses prescribed by
141-26 Subsection (a) may be used only as prescribed by board rule to
141-27 provide financial assistance through the financial assistance
142-1 programs of the board included under Subdivisions (1)-(5),
142-2 including financial assistance for hardship projects. The board
142-3 shall assure that at least 25 percent of the money in the water
142-4 facilities fund will be used to provide financial assistance to
142-5 political subdivisions that regularly serve fewer than 15,000
142-6 persons. The board may determine the amounts to be allocated for
142-7 transfer to and may order the transfer of those amounts to:
142-8 (1) the water assistance fund established under
142-9 Section 15.011 to be used for loans from the water loan assistance
142-10 fund and for project acquisition under Subchapter E;
142-11 (2) the development fund clearance fund established
142-12 under Section 17.077(a) or to any fund created for payment of bonds
142-13 issued for the purposes authorized by Section 49-d, Article III,
142-14 Texas Constitution, the transfers under this subdivision to be used
142-15 only to support payments of bonds issued or contracts executed for
142-16 state acquisition of facilities under Section 49-d, Article III,
142-17 Texas Constitution;
142-18 (3) the agricultural water conservation fund
142-19 established under Subchapter J, Chapter 17, to be used for purposes
142-20 authorized by law;
142-21 (4) the state water pollution control revolving fund
142-22 or additional state revolving funds under Subchapter J;
142-23 (5) the Texas water resources fund established under
142-24 Subchapter I, Chapter 17, for purposes authorized by law; and
142-25 (6) the general revenue fund to pay operational
142-26 expenses of the board in an amount not to exceed 2-1/2 percent of
142-27 the amount of financial assistance made available annually from the
143-1 water facilities fund under this subsection and Subsection (d).
143-2 (c) When possible, the board shall give first priority to
143-3 the transfer of funds from the water facilities fund to provide a
143-4 match for federal funds or to provide other funds to enhance
143-5 programs that use federal money, including the state water
143-6 pollution control revolving fund or additional state revolving
143-7 funds under Subsection (b)(4). The board shall give next priority
143-8 in the transfer of funds to payment of debt service on bonds issued
143-9 for the state participation program under Subsection (b)(2),
143-10 followed by projects that enhance or encourage regional benefits.
143-11 (d) The money deposited annually into the water facilities
143-12 fund and not used under Subsection (a) or dedicated for use under
143-13 Subsection (b) shall be divided annually in equal amounts to be
143-14 used for the following purposes:
143-15 (1) acquisition of real property necessary for water
143-16 supply projects;
143-17 (2) reservoir construction, including channel storage
143-18 reservoirs;
143-19 (3) water and wastewater treatment and conveyance
143-20 facilities, including reuse facilities;
143-21 (4) conservation, including aquifer recharge;
143-22 (5) weather modification;
143-23 (6) brush control and reestablishment of grassland;
143-24 (7) flood control and drainage;
143-25 (8) salinity control;
143-26 (9) repair and rehabilitation of unsafe dams;
143-27 (10) nonpoint source pollution control; and
144-1 (11) for use under Subchapter O by the Parks and
144-2 Wildlife Department.
144-3 (e) The board may transfer money allocated for a specific
144-4 purpose under Subsections (d)(1)-(10) to be used for another
144-5 purpose under Subsections (d)(1)-(10) if, at the end of a biennium,
144-6 the money has not been used for that specific purpose.
144-7 (f) The board shall transfer money allocated by Subsection
144-8 (d) to be used under Subsections (d)(1)-(10) from the water
144-9 facilities fund in amounts determined by the board to the water
144-10 loan assistance fund, the project acquisition fund, the pilot
144-11 weather modification fund, the research and planning fund, or any
144-12 other fund in the water assistance fund from which grants may be
144-13 made, to be used as provided by law. Within each category of use
144-14 under Subsections (d)(1)-(10), the board shall give priority in
144-15 funding to projects that provide the greatest benefit when compared
144-16 to cost and shall adopt rules for the submission and prioritization
144-17 of applications to meet this requirement. On a finding of
144-18 imminent public necessity, the board may give priority to a project
144-19 without regard to its benefit compared to its cost. None of the
144-20 money transferred under this subsection may be used for making
144-21 grants for projects that meet the eligibility requirements under
144-22 Section 15.102(b) or 15.407 or Subchapter K, Chapter 17. Money
144-23 transferred under this subsection may be used for financial
144-24 assistance for projects in economically distressed areas that are
144-25 not eligible for economically distressed areas funding. On a
144-26 finding of imminent public necessity, the board annually may
144-27 redistribute not more than 15 percent of the money allocated under
145-1 Subsections (d)(1)-(10) to be used for any of the purposes
145-2 authorized by Subsections (d)(1)-(10). At the request of the Parks
145-3 and Wildlife Department, money allocated by Subsection (d)(11)
145-4 shall be transferred to the conservation and restoration fund for
145-5 the department's use under Subchapter O.
145-6 (g) The board may pledge an amount not to exceed one-half of
145-7 the first revenues deposited in the water facilities fund from fees
145-8 collected under Sections 5.2361, 5.2362, 11.1352, and 11.1353 to
145-9 repay revenue bonds issued under the authority of Subchapter I,
145-10 Chapter 17.
145-11 (h) The water facilities fund may not be used to:
145-12 (1) provide a grant for any project that meets the
145-13 eligibility requirements for economically distressed areas funding;
145-14 (2) provide a loan for any project that meets the
145-15 eligibility requirements for economically distressed areas funding
145-16 unless funding is not available for the project under the
145-17 economically distressed areas program;
145-18 (3) provide for payment of debt service on bonds
145-19 issued under Section 49-d-7(e), Article III, Texas Constitution; or
145-20 (4) benefit projects approved before the date on which
145-21 the water facilities fund was created.
145-22 (i) Not more than five percent of any of the money
145-23 contributed annually to the fund may be used by the board to
145-24 purchase water rights. Except as provided by Subsection (d)(11),
145-25 money in the fund may not be used by the board to purchase water
145-26 rights for environmental purposes. Money in the fund may not be
145-27 transferred and used for the administration of the water bank
146-1 unless the use is approved in the General Appropriations Act.
146-2 (j) The board by rule may establish the method for
146-3 determining interest rates, at or below market rates, appropriate
146-4 for various categories of projects receiving financial assistance
146-5 with money from the water facilities fund, including low interest
146-6 rates to encourage projects that provide regional benefits.
146-7 (k) The board may invest, reinvest, and direct the
146-8 investment of money accumulated in the water facilities fund as
146-9 provided by law for the investment of money under Section 404.024,
146-10 Government Code.
146-11 Sec. 15.0141. FUNDING FOR BRUSH CONTROL. (a) The board may
146-12 transfer money allocated for brush control under Section 15.014(d)
146-13 to the brush control fund of the State Soil and Water Conservation
146-14 Board to be used for the purposes of Subchapter E, Chapter 203,
146-15 Agriculture Code. The board may transfer the money to the State
146-16 Soil and Water Conservation Board as needed to close a grant.
146-17 (b) Money transferred under this section may not be used by
146-18 the State Soil and Water Conservation Board for any administrative
146-19 costs incurred from administering the cost-sharing program under
146-20 Subchapter E, Chapter 203, Agriculture Code.
146-21 Sec. 15.015. ELIGIBILITY FOR FINANCIAL ASSISTANCE. (a) A
146-22 political subdivision is eligible to receive financial assistance
146-23 made available from the water facilities fund if the political
146-24 subdivision meets the eligibility criteria of the programs through
146-25 which the money is finally made available and unless the political
146-26 subdivision:
146-27 (1) is required to collect and pay fees under Section
147-1 5.2361 and has not done so;
147-2 (2) is required to pay money under Section 11.0851 and
147-3 has not done so;
147-4 (3) is required to pay fees under Section 11.1352 or
147-5 11.1353 and has not done so;
147-6 (4) is a groundwater district and has not paid fees
147-7 under Section 11.1353(b); or
147-8 (5) is a water rights holder within the jurisdiction
147-9 of a watermaster and has not paid fees under Section 11.1353(a).
147-10 (b) The payment of fees does not guarantee that a political
147-11 subdivision will receive financial assistance made available from
147-12 the water facilities fund.
147-13 (c) If a person, after the date on which the fee is first
147-14 imposed by law, is granted a water right on which a fee will be
147-15 assessed under Section 11.1352, the person is required to pay fees
147-16 under this section from the date of issuance of the water right.
147-17 If after the effective date of this section a water right for which
147-18 there are any unpaid fees due under Section 11.1352 is transferred
147-19 to a person, the new water right holder is liable for the payment
147-20 of those fees.
147-21 SECTION 5.22. Section 15.101(b), Water Code, is amended to
147-22 read as follows:
147-23 (b) Repayments of loans shall be deposited in the water
147-24 facilities [assistance] fund.
147-25 SECTION 5.23. Section 15.102, Water Code, is amended by
147-26 amending Subsection (a) and adding Subsections (e) and (f) to read
147-27 as follows:
148-1 (a) The loan fund may be used by the board to provide loans
148-2 of financial assistance to political subdivisions, federal
148-3 agencies, or both political subdivisions and federal agencies
148-4 acting jointly for the construction, acquisition, improvement, or
148-5 enlargement of projects involving water conservation, water
148-6 development, flood control, or water quality enhancement as
148-7 provided by legislative appropriations, this chapter, or board
148-8 rule, including:
148-9 (1) conveyance facilities;
148-10 (2) nonpoint source pollution control;
148-11 (3) [providing] nonstructural and structural flood
148-12 control;
148-13 (4) [, or] drainage;
148-14 (5) [,] project recreation lands and
148-15 revenue-generating recreational improvements within any watershed;
148-16 (6) [, or providing] recharge;
148-17 (7) [,] chloride control;
148-18 (8) [,] subsidence control;
148-19 (9) repair and rehabilitation of unsafe dams;
148-20 (10) brush control and reestablishment of grasslands;
148-21 (11) weather modification;
148-22 (12) [, or] desalinization;
148-23 (13) purchase of land for projects eligible for any
148-24 other funding of the board;
148-25 (14) reservoirs and channel storage reservoirs located
148-26 in Texas or on a stream forming a boundary between Texas and
148-27 another state or between Texas and Mexico;
149-1 (15) the acquisition of land or options for
149-2 acquisition of land to preserve such land for future water supply
149-3 projects; and
149-4 (16) the creation and not to exceed two years'
149-5 operational expenses for newly formed districts or authorities
149-6 created under Section 52, Article III, or Section 59, Article XVI,
149-7 Texas Constitution [as provided by legislative appropriations, this
149-8 chapter, and the board rules].
149-9 (e) The board by rule shall establish the interest rate at
149-10 or below market interest rates for loans made from the loan fund.
149-11 (f) The board may make a grant to a political subdivision
149-12 for a purpose listed in Section 15.014(d) in an amount not to
149-13 exceed 90 percent of the net cost of the project to the political
149-14 subdivision after deducting federal funds available for the
149-15 project. The board may provide a grant under this subsection only
149-16 if, after making the findings required in Sections 15.105(1) and
149-17 (3), the board finds there is broad state interest not directly
149-18 benefiting the grantee alone that warrants the grant in the amount
149-19 approved by the board or the board finds the project can be
149-20 reasonably accomplished only with a grant in the amount approved by
149-21 the board. In considering a grant application for a local project,
149-22 if the board finds that the project would provide more benefit if
149-23 undertaken on a regional level, the board may offer a larger grant
149-24 if the applicant resubmits or amends the application to propose the
149-25 project as a regional rather than a local project. The board by
149-26 rule shall establish the procedure for grant applications and the
149-27 method for determining which projects receive grants.
150-1 SECTION 5.24. Section 15.105, Water Code, is amended to read
150-2 as follows:
150-3 Sec. 15.105. CONSIDERATIONS IN PASSING ON APPLICATION. In
150-4 passing on an application for financial assistance under Section
150-5 15.102(a) or (b) from the loan fund, the board shall consider but
150-6 is not limited to:
150-7 (1) the needs of the area to be served by the project
150-8 and the benefit of the project to the area in relation to the needs
150-9 of other areas requiring state assistance in any manner and the
150-10 benefits of those projects to the other areas;
150-11 (2) the availability of revenue to the applicant from
150-12 all sources for the ultimate repayment of the cost of the project,
150-13 including all interest;
150-14 (3) the relationship of the project to overall
150-15 statewide needs;
150-16 (4) the ability of the applicant to finance the
150-17 project without state assistance; and
150-18 (5) for applications for grants for economically
150-19 distressed areas, the regulatory efforts by the county in which the
150-20 project is located to control the construction of subdivisions that
150-21 lack basic utility services.
150-22 SECTION 5.25. The heading to Subchapter E, Chapter 15, Water
150-23 Code, is amended to read as follows:
150-24 SUBCHAPTER E. PROJECT [STORAGE] ACQUISITION PROGRAM
150-25 SECTION 5.26. Section 15.301, Water Code, is amended to read
150-26 as follows:
150-27 Sec. 15.301. Fund Created. There is created a fund in the
151-1 state treasury to be known as the project [storage] acquisition
151-2 fund which is to be funded by direct appropriations and by
151-3 transfers from the fund at the discretion of the board or direction
151-4 of the legislature.
151-5 SECTION 5.27. Section 15.302(a), Water Code, is amended to
151-6 read as follows:
151-7 (a) The board may use the project [storage] acquisition fund
151-8 for projects including:
151-9 (1) the design, acquisition, lease, construction,
151-10 reconstruction, development, or enlargement in whole or part of any
151-11 existing or proposed [water storage] project; and
151-12 (2) the acquisition of land or options for the
151-13 acquisition of land to hold for future water supply projects.
151-14 SECTION 5.28. Sections 15.304 and 15.306, Water Code, are
151-15 amended to read as follows:
151-16 Sec. 15.304. Permits Required. Except as provided by
151-17 Section 15.3041 of this code, the board shall obtain permits from
151-18 the commission for the storage, transportation, and application to
151-19 beneficial use of water in reservoirs and associated works
151-20 constructed by the board, and any other permit required by state
151-21 law, and may spend money from the project acquisition fund for
151-22 those purposes.
151-23 Sec. 15.306. Board Findings. Before the board may acquire
151-24 [storage] facilities [in any reservoir], the board shall find
151-25 affirmatively that:
151-26 (1) [it is reasonable to expect that the state will
151-27 recover its investment in the facilities;]
152-1 [(2)] the cost of the facilities exceeds the current
152-2 financing capabilities of the area involved, and the facilities
152-3 cannot be reasonably financed by local interests without state
152-4 participation;
152-5 (2) [(3)] the public interest will be served by
152-6 acquisition of the facilities; [and]
152-7 (3) [(4)] the facilities to be constructed or
152-8 reconstructed contemplate the optimum development of the project
152-9 [site] which is reasonably reserved under all existing
152-10 circumstances; and
152-11 (4) the needs addressed by the project will be
152-12 addressed in a manner consistent with the state water plan, unless
152-13 the board determines that conditions warrant waiver of this
152-14 requirement [of the site].
152-15 SECTION 5.29. Section 15.3061(a), Water Code, is amended to
152-16 read as follows:
152-17 (a) If money is not available in the fund to provide money
152-18 for projects approved under this subchapter, the board shall
152-19 prepare and submit with its biennial budget request to the
152-20 Legislative Budget Board and to the presiding officers of each
152-21 house of the legislature a list of all projects approved by the
152-22 board under this subchapter or that could have been funded had
152-23 sufficient money been available.
152-24 SECTION 5.30. Section 15.307, Water Code, is amended to read
152-25 as follows:
152-26 Sec. 15.307. Facilities Wanted by Political Subdivision.
152-27 (a) The board shall not acquire any facility to the extent that
153-1 the board finds that the political subdivision:
153-2 (1) is willing and reasonably able to finance the
153-3 acquisition of the facility; and
153-4 (2) has not qualified by obtaining the necessary
153-5 permit; and
153-6 (3) has proposals that are inconsistent with the
153-7 objectives of the state water plan.
153-8 (b) The board may make a commitment to acquire a facility
153-9 contingent on all required permits being obtained by the political
153-10 subdivision or the board.
153-11 SECTION 5.31. Section 15.308(a), Water Code, is amended to
153-12 read as follows:
153-13 (a) The board may execute contracts which include but are
153-14 not limited to the design, management, acquisition, lease,
153-15 construction, reconstruction, development, enlargement, operation,
153-16 or maintenance, singularly or in any combination, of any existing
153-17 or proposed [storage] project.
153-18 SECTION 5.32. Section 15.309, Water Code, is amended to read
153-19 as follows:
153-20 Sec. 15.309. Specific Contracts Authorized. Contracts
153-21 authorized by Section 15.308 of this code include but are not
153-22 limited to the following:
153-23 (1) federal grants or grants from other sources;
153-24 (2) contracts which may be fully or partially secured
153-25 by water purchase or repayment contracts executed by political
153-26 subdivisions of the state for purchase of water and facilities
153-27 necessary to supply present and future regional and local water
154-1 requirements;
154-2 (3) contracts for goods and services necessary for the
154-3 design, management, acquisition, lease, construction,
154-4 reconstruction, development, enlargement, implementation,
154-5 operation, or maintenance of any existing or proposed project or
154-6 portion of the project; and
154-7 (4) contracts secured by the pledge of all or any part
154-8 of money [funds] in the project [storage] acquisition fund.
154-9 SECTION 5.33. Section 15.313(a), Water Code, is amended to
154-10 read as follows:
154-11 (a) The board may sell, transfer, or lease, to the extent of
154-12 its ownership, a project acquired, constructed, reconstructed,
154-13 developed, or enlarged with money from the project [storage]
154-14 acquisition fund.
154-15 SECTION 5.34. Sections 15.314 and 15.316, Water Code, are
154-16 amended to read as follows:
154-17 Sec. 15.314. Permit Required. Before the board grants the
154-18 application to buy, receive, or lease the facilities, the applicant
154-19 shall first secure all permits [a permit] for water use or other
154-20 permits for operation of the project from the commission. If the
154-21 facilities are to be leased, the permit may be for a term of years.
154-22 Sec. 15.316. PROJECT [RESERVOIR] LAND. The board may lease
154-23 acquired project [reservoir] land until construction of the project
154-24 [dam] is completed without the necessity of a permit issued by the
154-25 commission.
154-26 SECTION 5.35. Sections 15.319-15.324, 15.326, and 15.327,
154-27 Water Code, are amended to read as follows:
155-1 Sec. 15.319. Costs Defined. With reference to the sale of a
155-2 state facility, "direct cost of acquisition" means the principal
155-3 amount the board has paid plus the amounts the board has agreed to
155-4 pay under obligations not transferred to the purchaser for a
155-5 facility up to the date of sale, but does not include the board's
155-6 cost of operating and maintaining the facility from the date of
155-7 acquisition to the date of the sale or transfer of the facility or
155-8 the board's cost of administering the project acquisition program
155-9 under this subchapter.
155-10 Sec. 15.320. Lease Payments. In leasing a state facility
155-11 for a term of years, the board shall require [annual] payments that
155-12 will recover over the term of the lease not less than the total of:
155-13 (1) all [the annual] principal and interest
155-14 requirements applicable to the debt incurred by the state in
155-15 acquiring the facility; and
155-16 (2) the state's [annual] cost for operation,
155-17 maintenance, and rehabilitation of the facility, including a
155-18 portion of the board's cost of administering the project
155-19 acquisition program under this subchapter.
155-20 Sec. 15.321. Sale or Lease: Condition Precedent. (a) No
155-21 sale, transfer, or lease of a state facility is valid unless the
155-22 board first makes the following affirmative findings:
155-23 (1) that the applicant has a permit granted by the
155-24 commission if a permit is required to operate the project;
155-25 (2) that the sale, transfer, or lease serves the
155-26 public interest; and
155-27 (3) that the consideration for the sale, transfer, or
156-1 lease is fair, just, reasonable, and in full compliance with the
156-2 law.
156-3 (b) The consideration for a sale or transfer may be either
156-4 money or [revenue] bonds which for the purposes of this section
156-5 shall be deemed the same as money.
156-6 (c) The amount of money shall be equal to the price for
156-7 purchasing the facilities as prescribed by Sections 15.317-15.318
156-8 of this code, or if [revenue] bonds constitute the consideration,
156-9 the principal amount of [revenue] bonds shall be equal to the price
156-10 for purchasing the facilities as prescribed by the provisions of
156-11 Sections 15.317-15.318 of this code, and the [revenue] bonds shall
156-12 bear interest at the rate prescribed in Section 17.128 of this code
156-13 with regard to bonds purchased with the proceeds of the Texas water
156-14 development fund.
156-15 Sec. 15.322. Disposition of Proceeds. (a) The money
156-16 received from any sale, transfer, or lease of facilities, or in the
156-17 case of a sale or transfer involving [revenue] bonds, the money
156-18 received as matured interest or principal on the bonds shall be
156-19 placed in the water facilities [general revenue] fund.
156-20 (b) If money received from a sale, transfer, or lease of
156-21 facilities, or in the case of a sale or transfer involving
156-22 [revenue] bonds, if the money received as matured interest or
156-23 principal on the bonds, is money derived originally from the
156-24 appropriation made in Section 2, Chapter 12, Acts of the 67th
156-25 Legislature, 1st Called Session, 1981, or interest earned on that
156-26 money, the money received as matured interest or principal on the
156-27 bonds shall be placed in a special account in the water assistance
157-1 fund.
157-2 Sec. 15.323. Sale of Stored Water. (a) The board may sell
157-3 any unappropriated public water of the state and other water
157-4 acquired by the state or board that is stored by or for it. The
157-5 price shall be determined by the board.
157-6 (b) Except as provided by Subsection (c) of this section,
157-7 money received from any sale shall be placed in the water
157-8 facilities [general revenue] fund.
157-9 (c) Money received from a sale of unappropriated public
157-10 water or other water acquired by the state or board and stored by
157-11 it or for it in a facility for which funds were provided from the
157-12 appropriation made in Section 2, Chapter 12, Acts of the 67th
157-13 Legislature, 1st Called Session, 1981, or interest earned on the
157-14 money constituting that appropriation, must be deposited in a
157-15 special account in the water assistance fund.
157-16 Sec. 15.324. Sale Contract: Provisions, Limitations.
157-17 (a) The board may determine the consideration and other provisions
157-18 to be included in water sale contracts or in contracts for
157-19 treatment of wastewater or any other use of any board facility, but
157-20 the consideration and other provisions shall be fair, reasonable,
157-21 and nondiscriminatory. The board may include charges for standby
157-22 service, which means holding water and conservation storage space
157-23 for use and for actual delivery of water or reserving capacity for
157-24 wastewater treatment for use and for actual treatment.
157-25 (b) The board shall make the same determinations with
157-26 respect to the sale of water or to other use of board-owned
157-27 facilities as are required by Section 15.321 of this code with
158-1 respect to the sale or lease of facilities.
158-2 (c) The board shall not compete with any political
158-3 subdivisions in the sale of water or use of facilities when this
158-4 competition jeopardizes the ability of the political subdivision to
158-5 meet obligations incurred to finance its own [water supply]
158-6 projects.
158-7 Sec. 15.326. Preferences. The board shall give political
158-8 subdivisions a preferential right, but not an exclusive right, to
158-9 purchase, acquire, or lease facilities and to purchase water or
158-10 capacity from facilities. For water use, preferences [Preferences]
158-11 shall be given in these respects in accord with the provisions of
158-12 Section 11.123 of this code. The board and the commission shall
158-13 coordinate their efforts to meet these objectives and to assure
158-14 that the public water of this state, which is held in trust for the
158-15 use and benefit of the public, will be conserved, developed, and
158-16 utilized in the greatest practicable measure for the public
158-17 welfare.
158-18 Sec. 15.327. Lease of Land Prior to Project Construction.
158-19 The board may lease tracts of land acquired for project purposes
158-20 for a term of years for any purpose not inconsistent with ultimate
158-21 project construction. The lease shall provide for expiration
158-22 before completion [initiation] of project construction. The money
158-23 received from such leases shall be placed in the water facilities
158-24 [assistance] fund.
158-25 SECTION 5.36. Chapter 15, Water Code, is amended by adding
158-26 Subchapters N and O to read as follows:
159-1 SUBCHAPTER N. PILOT WEATHER MODIFICATION PROGRAM
159-2 Sec. 15.821. PROGRAM CREATION. The pilot weather
159-3 modification program is created to provide money for research on
159-4 the effectiveness of weather modification operations to augment
159-5 existing surface water and groundwater supplies to benefit
159-6 agricultural operations, surface water users, groundwater users, or
159-7 the general economy of the state. The program shall be operated by
159-8 the board and shall be designed, and operated for a sufficient
159-9 number of years, to provide scientifically supportable
159-10 determinations as to the effectiveness of weather modification.
159-11 Sec. 15.822. PILOT WEATHER MODIFICATION FUND. The pilot
159-12 weather modification fund is a special account in the general
159-13 revenue fund. The fund consists of direct appropriations and money
159-14 transferred to the fund under Section 15.014(e).
159-15 Sec. 15.823. FINANCIAL ASSISTANCE. The pilot weather
159-16 modification fund may be used by the board to provide grants to any
159-17 person for research on any matter related to determining the
159-18 effectiveness of weather modification as described in Section
159-19 15.821.
159-20 Sec. 15.824. REPORTS. The board, with the assistance of the
159-21 commission, shall report to the legislature and the governor each
159-22 biennium on progress made in determining the effectiveness of
159-23 weather modification.
159-24 (Sections 15.825-15.840 reserved for expansion
159-25 SUBCHAPTER O. CONSERVATION AND RESTORATION PROGRAM
159-26 Sec. 15.841. PROGRAM CREATION. The conservation and
159-27 restoration program is established to provide money to assist in
160-1 meeting mitigation requirements and enhancing conservation benefits
160-2 of water projects, securing water rights for fish and wildlife, and
160-3 other necessary expenditures to assure that water projects may be
160-4 completed in a timely fashion and maximize the project's water and
160-5 conservation benefits.
160-6 Sec. 15.842. CONSERVATION AND RESTORATION FUND. The
160-7 conservation and restoration fund is a special account in the
160-8 general revenue fund. The fund consists of direct appropriations
160-9 and money transferred to the fund under Section 15.014(f). The
160-10 conservation and restoration fund shall be administered by the
160-11 Parks and Wildlife Department.
160-12 Sec. 15.843. FINANCIAL ASSISTANCE. The conservation and
160-13 restoration fund may be used by the Parks and Wildlife Department
160-14 to assist in meeting mitigation requirements and enhancing
160-15 conservation benefits of water projects, securing water rights for
160-16 fish and wildlife, and making other necessary expenditures to
160-17 assure the timely completion of water projects and to maximize the
160-18 water and conservation benefits of water projects.
160-19 Sec. 15.844. BENEFICIAL USE OF WATER RIGHTS. The use of any
160-20 state water right by the Parks and Wildlife Department under this
160-21 program for conservation purposes is a beneficial use for purposes
160-22 of this chapter and Chapter 11.
160-23 SECTION 5.37. Section 17.077(a), Water Code, is amended to
160-24 read as follows:
160-25 (a) Except as provided by Subsection (b) of this section,
160-26 and except for proceeds from the sale of bonds and proceeds from
160-27 the sale, refunding, or prepayment, of political subdivision bonds
161-1 acquired in carrying out the purposes in Article III, Sections
161-2 49-c, 49-d, 49-d-1, 49-d-2, 49-d-6, and 49-d-7, of the Texas
161-3 Constitution, and the proceeds from the sale, refinancing, or other
161-4 liquidation of the investments made under Section 17.083 of this
161-5 code which shall be deposited in the fund that provided the money
161-6 for the investment, all money received by the board in any fiscal
161-7 year, including all amounts received as repayment of loans to
161-8 political subdivisions and interest on those loans and any
161-9 transfers to the fund by the board from the sources available to
161-10 the board, shall be credited to the clearance fund. Money in the
161-11 clearance fund may be transferred at any time to the interest and
161-12 sinking fund until the reserve in that fund is equal to the average
161-13 annual principal and interest requirements on all outstanding
161-14 bonds.
161-15 SECTION 5.38. Section 17.853(c), Water Code, is amended to
161-16 read as follows:
161-17 (c) The board may use the fund only:
161-18 (1) to provide state matching funds for federal funds
161-19 provided to the state water pollution control revolving fund or to
161-20 any additional state revolving fund created under Subchapter J of
161-21 Chapter 15 of this code;
161-22 (2) to provide financial assistance from the proceeds
161-23 of taxable bond issues to water supply corporations organized under
161-24 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
161-25 (Article 1434a, Vernon's Texas Civil Statutes), and other
161-26 participants;
161-27 (3) to provide financial assistance to participants
162-1 for the construction of [water supply] projects authorized by
162-2 Section 15.102(a) of this code [and treatment works];
162-3 (4) to provide financial assistance for an interim
162-4 construction period to participants for projects for which the
162-5 board will provide long-term financing through the water
162-6 development fund; and
162-7 (5) to provide financial assistance for water supply
162-8 and sewer service projects in economically distressed areas as
162-9 provided by Subchapter K of Chapter 17 of this code to the extent
162-10 the board can make that assistance without adversely affecting the
162-11 current or future integrity of the fund or of any other financial
162-12 assistance program of the board.
162-13 SECTION 5.39. Section 17.859(a), Water Code, is amended to
162-14 read as follows:
162-15 (a) The board may issue its revenue bonds for the purpose of
162-16 providing money for the fund[,] and may deposit into the fund all
162-17 money authorized by law to be placed in the fund. Money [the
162-18 money] in the fund shall be used for acquiring interests in
162-19 projects and for providing financial assistance to participants in
162-20 accordance with this subchapter.
162-21 SECTION 5.40. Section 16.001(7), Water Code, is amended to
162-22 read as follows:
162-23 (7) "Political subdivision" means a state agency, a
162-24 county, city, or other body politic or corporate of the state,
162-25 including any district or authority created under Article III,
162-26 Section 52 or Article XVI, Section 59 of the Texas Constitution and
162-27 including any interstate compact commission to which the state is a
163-1 party and any [nonprofit] water supply or sewer service corporation
163-2 as defined by Section 13.002 [created and operating under Chapter
163-3 76, Acts of the 43rd Legislature, 1st Called Session, 1933 (Article
163-4 1434a, Vernon's Texas Civil Statutes)].
163-5 SECTION 5.41. Section 17.001(6), Water Code, is amended to
163-6 read as follows:
163-7 (6) "Political subdivision" means a state agency, a
163-8 county, city, or other body politic or corporate of the state,
163-9 including any district or authority created under Article III,
163-10 Section 52 or Article XVI, Section 59 of the Texas Constitution and
163-11 including any interstate compact commission to which the state is a
163-12 party and any [nonprofit] water supply or sewer service corporation
163-13 as defined by Section 13.002 [created and operating under Chapter
163-14 76, Acts of the 43rd Legislature, 1st Called Session, 1933 (Article
163-15 1434a, Vernon's Texas Civil Statutes)].
163-16 SECTION 5.42. Sections 15.320, 15.321, 15.322, 15.324, and
163-17 15.327, Water Code, as amended by this Act, apply only to a lease
163-18 or contract for sale entered into on or after the effective date of
163-19 this Act.
163-20 SECTION 5.43. (a) The initial payment by a public water
163-21 supply system of the annual fee imposed by Section 5.2361(b), Water
163-22 Code, as added by this Act, shall be submitted to the Texas Natural
163-23 Resource Conservation Commission by the owner of the system not
163-24 later than September 30, 1998.
163-25 (b) Beginning on the effective date of this Act, a public
163-26 water supply system may assess and collect the monthly fee the
163-27 public water supply system is required to assess and collect by
164-1 Section 5.2361(b), Water Code, as added by this Act.
164-2 ARTICLE 6. SMALL COMMUNITIES ASSISTANCE
164-3 SECTION 6.01. Section 5.311, Water Code, is amended to read
164-4 as follows:
164-5 Sec. 5.311. DELEGATION OF RESPONSIBILITY. (a) The
164-6 commission may delegate to an administrative law judge of the State
164-7 Office of Administrative Hearings the responsibility to hear any
164-8 matter before the commission and to issue interlocutory orders
164-9 related to interim rates under Chapter 13.
164-10 (b) Except as provided in Subsection (a), the [The]
164-11 administrative law judge shall report to the commission on the
164-12 hearing in the manner provided by law.
164-13 SECTION 6.02. Sections 13.002(11), (21), and (24), Water
164-14 Code, are amended to read as follows:
164-15 (11) "Member" means a person who holds a membership in
164-16 a water supply or sewer service corporation and [who either
164-17 receives water or sewer utility service from the corporation or] is
164-18 a record owner of a fee simple title to property in an area served
164-19 by a water supply or sewer service corporation or a person who is
164-20 granted a membership and who either currently receives or will be
164-21 eligible to receive water or sewer utility service from the
164-22 corporation. In determining member control of a water supply or
164-23 sewer service corporation, a person is entitled to only one vote
164-24 regardless of the number of memberships the person owns.
164-25 (21) "Service" means any act [done, rendered, or]
164-26 performed, anything furnished or supplied, and any facilities or
164-27 lines committed or [facility] used[, furnished, or supplied] by a
165-1 retail public utility in the performance of its duties under this
165-2 chapter to its patrons, employees, other retail public utilities,
165-3 and the public, as well as the interchange of facilities between
165-4 two or more retail public utilities.
165-5 (24) "Water supply or sewer service corporation" means
165-6 a nonprofit[, member-owned, member-controlled] corporation
165-7 organized and operating under Chapter 76, Acts of the 43rd
165-8 Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
165-9 Texas Civil Statutes) that provides potable water service or sewer
165-10 service for compensation and that has adopted and is operating in
165-11 accordance with by-laws or articles of incorporation which ensure
165-12 that it is member-owned and member-controlled. The term does not
165-13 include a corporation that provides retail water or sewer service
165-14 to a person who is not a member, except that the corporation may
165-15 provide retail water or sewer service to a person who is not a
165-16 member if the person only builds on or develops property to sell to
165-17 another and the service is provided on an interim basis before the
165-18 property is sold.
165-19 SECTION 6.03. Section 13.181, Water Code, is amended to read
165-20 as follows:
165-21 Sec. 13.181. POWER TO ENSURE COMPLIANCE; RATE REGULATION.
165-22 (a) Except for the provisions of Section 13.192, this subchapter
165-23 shall apply only to a utility and shall not be applied to
165-24 municipalities, counties, districts, or water supply or sewer
165-25 service corporations.
165-26 (b) Subject to this chapter, the commission has all
165-27 authority and power of the state to ensure compliance with the
166-1 obligations of utilities under this chapter. For this purpose the
166-2 regulatory authority may fix and regulate rates of utilities,
166-3 including rules and regulations for determining the classification
166-4 of customers and services and for determining the applicability of
166-5 rates. A rule or order of the regulatory authority may not
166-6 conflict with the rulings of any federal regulatory body. [Except
166-7 Section 13.192, this subchapter shall apply only to a utility and
166-8 shall not be applied to municipalities, counties, districts, or
166-9 water supply or sewer service corporations.] The commission may
166-10 adopt rules which authorize a utility which is permitted under
166-11 Section 13.242(c) to provide service without a certificate of
166-12 public convenience and necessity to request or implement a rate
166-13 increase and operate according to rules, regulations, and standards
166-14 of service other than those otherwise required under this chapter
166-15 provided that rates are just and reasonable for customers and the
166-16 utility and that service is safe, adequate, efficient, and
166-17 reasonable.
166-18 SECTION 6.04. Section 13.183, Water Code, is amended by
166-19 adding Subsection (c) to read as follows:
166-20 (c) To ensure that retail customers receive a higher quality
166-21 or more reliable water or sewer service, to encourage
166-22 regionalization, or to maintain financially stable and technically
166-23 sound utilities, the regulatory authority may develop methodologies
166-24 for water or sewer rates based on factors other than rate of return
166-25 and those specified in Section 13.185. Overall revenues determined
166-26 pursuant to an alternate methodology developed under this section
166-27 must provide revenues to the utility that satisfy the requirements
167-1 of Subsection (a). In determining to use alternate ratemaking
167-2 methodologies, the regulatory authority shall assure that rates,
167-3 operations, and services are just and reasonable to the consumers
167-4 and to the utilities.
167-5 SECTION 6.05. Section 13.184(a), Water Code, is amended to
167-6 read as follows:
167-7 (a) Unless the commission establishes alternate rate
167-8 methodologies in accordance with Section 13.183(c), the commission
167-9 [The regulatory authority] may not prescribe any rate that will
167-10 yield more than a fair return on the invested capital used and
167-11 useful in rendering service to the public. The governing body of a
167-12 municipality exercising its original jurisdiction over rates and
167-13 services may use alternate ratemaking methodologies established by
167-14 ordinance or by commission rule in accordance with Section
167-15 13.183(c). Unless the municipal regulatory authority uses
167-16 alternate ratemaking methodologies established by ordinance or by
167-17 commission rule in accordance with Section 13.183(c), it may not
167-18 prescribe any rate that will yield more than a fair return on the
167-19 invested capital used and useful in rendering service to the
167-20 public.
167-21 SECTION 6.06. Section 13.185(a), Water Code, is amended to
167-22 read as follows:
167-23 (a) Unless alternate methodologies are adopted as provided
167-24 in Sections 13.183(c) and 13.184(a), the [The] components of
167-25 invested capital and net income shall be determined according to
167-26 the rules stated in this section.
167-27 SECTION 6.07. Subchapter G, Chapter 13, Water Code, is
168-1 amended by adding Section 13.241 to read as follows:
168-2 Sec. 13.241. GRANTING CERTIFICATES. (a) In determining
168-3 whether to grant a certificate of public convenience and necessity,
168-4 the commission shall ensure that the applicant possesses the
168-5 financial, managerial, and technical capability to provide
168-6 continuous and adequate service.
168-7 (b) For water utility service, the commission shall ensure
168-8 that the applicant:
168-9 (1) is capable of providing drinking water that meets
168-10 the requirements of Chapter 341, Health and Safety Code, and
168-11 requirements of this code; and
168-12 (2) has access to an adequate supply of water.
168-13 (c) For sewer utility service, the commission shall ensure
168-14 that the applicant is capable of meeting the commission's design
168-15 criteria for sewer treatment plants and the requirements of this
168-16 code.
168-17 (d) Before the commission grants a new certificate of
168-18 convenience and necessity for an area which would require
168-19 construction of a physically separate water or sewer system, the
168-20 applicant must demonstrate that regionalization or consolidation
168-21 with another retail public utility is not economically feasible.
168-22 SECTION 6.08. Section 13.246, Water Code, is amended to read
168-23 as follows:
168-24 Sec. 13.246. NOTICE AND HEARING; ISSUANCE OR REFUSAL;
168-25 FACTORS CONSIDERED. (a) If an application for a certificate of
168-26 public convenience and necessity is filed, the commission shall
168-27 cause notice of the application to be given to affected parties
169-1 and, if requested, shall fix a time and place for a hearing and
169-2 give notice of the hearing. Any person affected by the application
169-3 may intervene at the hearing.
169-4 (b) The commission may grant applications and issue
169-5 certificates only if the commission finds that a certificate is
169-6 necessary for the service, accommodation, convenience, or safety of
169-7 the public. The commission may issue a certificate as requested,
169-8 or refuse to issue it, or issue it for the construction of only a
169-9 portion of the contemplated system or facility or extension, or for
169-10 the partial exercise only of the right or privilege and may impose
169-11 special conditions necessary to ensure that continuous and adequate
169-12 service is provided.
169-13 (c) Certificates of convenience and necessity shall be
169-14 granted on a nondiscriminatory basis after consideration by the
169-15 commission of the adequacy of service currently provided to the
169-16 requested area, the need for additional service in the requested
169-17 area, the effect of the granting of a certificate on the recipient
169-18 of the certificate and on any retail public utility of the same
169-19 kind already serving the proximate area, the ability of the
169-20 applicant to provide adequate service, the feasibility of obtaining
169-21 service from an adjacent retail public utility, the financial
169-22 stability of the applicant, including, if applicable, the adequacy
169-23 of the applicant's debt-equity ratio, environmental integrity, and
169-24 the probable improvement of service or lowering of cost to
169-25 consumers in that area resulting from the granting of the
169-26 certificate.
169-27 (d) The commission may require an applicant utility to
170-1 provide a bond or other financial assurance in a form and amount
170-2 specified by the commission to ensure that continuous and adequate
170-3 utility service is provided.
170-4 (e) Where applicable, in addition to the other factors in
170-5 this section the commission shall consider the efforts of the
170-6 applicant to extend service to any economically distressed areas
170-7 located within the service areas certificated to the applicant.
170-8 For the purposes of this subsection, "economically distressed area"
170-9 has the meaning assigned by Section 15.001.
170-10 SECTION 6.09. Section 13.253, Water Code, is amended to read
170-11 as follows:
170-12 Sec. 13.253. IMPROVEMENTS IN SERVICE; INTERCONNECTING
170-13 SERVICE. (a) After notice and hearing, the commission may:
170-14 (1) order any retail public utility that is required
170-15 by law to possess a certificate of public convenience and necessity
170-16 or any retail public utility that possesses a certificate of public
170-17 convenience and necessity and is located in an affected county as
170-18 defined in Section 16.341 to:
170-19 (A) provide specified improvements in its
170-20 service in a defined area if service in that area is inadequate or
170-21 is substantially inferior to service in a comparable area and it is
170-22 reasonable to require the retail public utility to provide the
170-23 improved service; or
170-24 (B) develop, implement, and follow financial,
170-25 managerial, and technical practices that are acceptable to the
170-26 commission to ensure that continuous and adequate service is
170-27 provided to any areas currently certificated to the retail public
171-1 utility if the retail public utility has not provided continuous
171-2 and adequate service to any of those areas and, for a utility, to
171-3 provide financial assurance of the utility's ability to operate the
171-4 system in accordance with applicable laws and rules, in the form of
171-5 a bond or other financial assurance in a form and amount specified
171-6 by the commission;
171-7 (2) order two or more public utilities or water supply
171-8 or sewer service corporations to establish specified facilities for
171-9 [the] interconnecting service; [or]
171-10 (3) order a public utility or water supply or sewer
171-11 service corporation that has not demonstrated that it can provide
171-12 continuous and adequate service from its drinking water source or
171-13 sewer treatment facility to obtain service sufficient to meet its
171-14 obligation to provide continuous and adequate service on at least a
171-15 wholesale basis from another consenting utility service provider;
171-16 or
171-17 (4) issue an emergency order, with or without a
171-18 hearing, under Section 13.041 [of this code].
171-19 (b) If the commission has reason to believe that
171-20 improvements and repairs to a water or sewer service system are
171-21 necessary to enable a retail public utility to provide continuous
171-22 and adequate service in any portion of its service area and the
171-23 retail public utility has provided financial assurance under
171-24 Section 341.0355, Health and Safety Code, or under this chapter,
171-25 the commission, after providing to the retail public utility notice
171-26 and an opportunity to be heard by the commissioners at a commission
171-27 meeting, may immediately order specified improvements and repairs
172-1 to the water or sewer system, the costs of which may be paid by the
172-2 bond or other financial assurance in an amount determined by the
172-3 commission not to exceed the amount of the bond or financial
172-4 assurance. The order requiring the improvements may be an
172-5 emergency order if it is issued after the retail public utility has
172-6 had an opportunity to be heard by the commissioners at a commission
172-7 meeting. After notice and hearing, the commission may require a
172-8 retail public utility to obligate additional money to replace the
172-9 financial assurance used for the improvements.
172-10 SECTION 6.10. Section 13.254, Water Code, is amended to read
172-11 as follows:
172-12 Sec. 13.254. REVOCATION OR AMENDMENT OF CERTIFICATE.
172-13 (a) The commission at any time after notice and hearing may revoke
172-14 or amend any certificate of public convenience and necessity with
172-15 the written consent of the certificate holder or if it finds that:
172-16 (1) the certificate holder has never provided, is no
172-17 longer providing, or has failed to provide continuous and adequate
172-18 service in the area, or part of the area, covered by the
172-19 certificate;
172-20 (2) in an affected county as defined in Section
172-21 16.341, the cost of providing service by the certificate holder is
172-22 so prohibitively expensive as to constitute denial of service,
172-23 provided that, for commercial developments or for residential
172-24 developments started after September 1, 1997, in an affected county
172-25 as defined in Section 16.341, the fact that the cost of obtaining
172-26 service from the currently certificated retail public utility makes
172-27 the development economically unfeasible does not render such cost
173-1 prohibitively expensive in the absence of other relevant factors;
173-2 (3) the certificate holder has agreed in writing to
173-3 allow another retail public utility to provide service within its
173-4 service area, except for an interim period, without amending its
173-5 certificate; or
173-6 (4) the certificate holder has failed to file a cease
173-7 and desist action pursuant to Section 13.252 within 180 days of the
173-8 date that it became aware that another retail public utility was
173-9 providing service within its service area, unless the certificate
173-10 holder demonstrates good cause for its failure to file such action
173-11 within the 180 days.
173-12 (b) Upon written request from the certificate holder, the
173-13 executive director may cancel the certificate of a utility or water
173-14 supply corporation authorized by rule to operate without a
173-15 certificate of public convenience and necessity under Section
173-16 13.242(c).
173-17 (c) If the certificate of any retail public utility is
173-18 revoked or amended, the commission may require one or more retail
173-19 public utilities with their consent to provide service in the area
173-20 in question. The order of the commission shall not be effective to
173-21 transfer property.
173-22 (d) A retail public utility may not in any way render retail
173-23 water or sewer service directly or indirectly to the public in an
173-24 area that has been decertified under this section without providing
173-25 compensation for any property that the commission determines is
173-26 rendered useless or valueless to the decertified retail public
173-27 utility as a result of the decertification.
174-1 (e) The determination of the monetary amount of
174-2 compensation, if any, shall be determined at the time another
174-3 retail public utility seeks to provide service in the previously
174-4 decertified area and before service is actually provided.
174-5 (f) The monetary amount shall be determined by a qualified
174-6 individual or firm serving as independent appraiser selected by the
174-7 decertified retail public utility. The determination of
174-8 compensation by the independent appraiser shall be binding on the
174-9 commission. The costs of the independent appraiser shall be borne
174-10 by the retail public utility seeking to serve the area.
174-11 (g) For the purpose of implementing this section, the value
174-12 of real property shall be determined according to the standards set
174-13 forth in Chapter 21, Property Code, governing actions in eminent
174-14 domain and the value of personal property shall be determined
174-15 according to the factors in this subsection. The factors ensuring
174-16 that the compensation to a retail public utility for the taking,
174-17 damaging, or loss of personal property, including the retail public
174-18 utility's business, is just and adequate shall at a minimum
174-19 include: the impact on the existing indebtedness of the retail
174-20 public utility and its ability to repay that debt; the value of the
174-21 service facilities of the retail public utility located within the
174-22 area in question; the amount of any expenditures for planning,
174-23 design, or construction of service facilities that are allocable to
174-24 service to the area in question; the amount of the retail public
174-25 utility's contractual obligations allocable to the area in
174-26 question; any demonstrated impairment of service or increase of
174-27 cost to consumers of the retail public utility remaining after the
175-1 decertification; the impact on future revenues and expenses of the
175-2 retail public utility; necessary and reasonable legal expenses and
175-3 professional fees; factors relevant to maintaining the current
175-4 financial integrity of the retail public utility; and other
175-5 relevant factors.
175-6 (h) The commission shall determine whether payment of
175-7 compensation shall be in a lump sum or paid out over a specified
175-8 period of time. If there were no current customers in the area
175-9 decertified and no immediate loss of revenues or if there are other
175-10 valid reasons determined by the commission, installment payments as
175-11 new customers are added in the decertified area may be an
175-12 acceptable method of payment.
175-13 SECTION 6.11. Section 13.301, Water Code, is amended to read
175-14 as follows:
175-15 Sec. 13.301. REPORT OF SALE, MERGER, ETC.; INVESTIGATION;
175-16 DISALLOWANCE OF TRANSACTION. (a) A utility or a water supply or
175-17 sewer service corporation, on or before the 120th day before the
175-18 effective date of a sale, acquisition, lease, or rental of a water
175-19 or sewer system that is required by law to possess a certificate of
175-20 public convenience and necessity or the effective date of a merger
175-21 or consolidation with such a utility or water supply or sewer
175-22 service corporation, shall:
175-23 (1) file a written application with [notify] the
175-24 commission; and
175-25 (2) [give public notice] unless public notice is
175-26 waived by the executive director for good cause shown, give public
175-27 notice of the action [at least 120 days before the effective date
176-1 of any sale, acquisition, lease, or rental of any water or sewer
176-2 system required by law to possess a certificate of public
176-3 convenience and necessity or of any merger or consolidation with
176-4 such a utility or water supply or sewer service corporation].
176-5 (b) The commission may require that the person purchasing or
176-6 acquiring the water or sewer system demonstrate adequate financial,
176-7 managerial, and technical capability for providing continuous and
176-8 adequate service to the requested area and any areas currently
176-9 certificated to the person.
176-10 (c) If the person purchasing or acquiring the water or sewer
176-11 system cannot demonstrate adequate financial capability, the
176-12 commission may require that the person provide a bond or other
176-13 financial assurance in a form and amount specified by the
176-14 commission to ensure continuous and adequate utility service is
176-15 provided.
176-16 (d) The commission shall, with or without a public hearing,
176-17 investigate the sale, acquisition, lease, or rental to determine
176-18 whether the transaction will serve the public interest.
176-19 (e) [(c)] Before the expiration of the 120-day notification
176-20 period, the executive director shall notify all known parties to
176-21 the transaction of the executive director's decision whether to
176-22 request that the commission hold a public hearing to determine if
176-23 the transaction will serve the public interest. The executive
176-24 director may request a hearing if:
176-25 (1) the application filed with [notification to] the
176-26 commission or the public notice was improper;
176-27 (2) the person purchasing or acquiring the water or
177-1 sewer system has not demonstrated adequate financial, managerial,
177-2 and technical capability for providing continuous and adequate
177-3 service to the service area being acquired and to any areas
177-4 currently certificated to the person [is inexperienced as a utility
177-5 service provider];
177-6 (3) the person or an affiliated interest of the person
177-7 purchasing or acquiring the water or sewer system has a history of:
177-8 (A) noncompliance with the requirements of the
177-9 commission or the Texas Department of Health; or
177-10 (B) [of] continuing mismanagement or misuse of
177-11 revenues as a utility service provider;
177-12 (4) the person purchasing or acquiring the water or
177-13 sewer system cannot demonstrate the financial ability to provide
177-14 the necessary capital investment to ensure the provision of
177-15 continuous and adequate service to the customers of the water or
177-16 sewer system; or
177-17 (5) there are concerns that the transaction may not
177-18 serve the public interest, after the application of the
177-19 considerations provided by Section 13.246(c) for determining
177-20 whether to grant a certificate of convenience and necessity.
177-21 (f) [(d)] Unless the executive director requests that a
177-22 public hearing be held, the sale, acquisition, lease, or rental may
177-23 be completed as proposed:
177-24 (1) at the end of the 120-day period; or
177-25 (2) [may be completed] at any time after the executive
177-26 director notifies the utility or water supply or sewer service
177-27 corporation that a hearing will not be requested.
178-1 (g) If a hearing is requested or if the utility or water
178-2 supply or sewer service corporation fails to make the application
178-3 as [provide the] required [notification] or to provide public
178-4 notice, the sale, acquisition, lease, or rental may not be
178-5 completed unless the commission determines that the proposed
178-6 transaction serves the public interest.
178-7 (h) A sale, acquisition, lease, or rental of any water or
178-8 sewer system required by law to possess a certificate of public
178-9 convenience and necessity that is not completed in accordance with
178-10 the provisions of this section is void.
178-11 (i) [(e)] This section does not apply to:
178-12 (1) the purchase of replacement property; or
178-13 (2) [to] a transaction under Section 13.255 of this
178-14 code.
178-15 (j) [(f)] If a public utility facility or system is sold and
178-16 the facility or system was partially or wholly constructed with
178-17 customer contributions in aid of construction derived from specific
178-18 surcharges approved by the regulatory authority over and above
178-19 revenues required for normal operating expenses and return, the
178-20 public utility may not sell or transfer any of its assets, its
178-21 certificate of convenience and necessity, or its controlling
178-22 interest in an incorporated utility, unless the utility provides to
178-23 the purchaser or transferee before the date of the sale or transfer
178-24 a written disclosure relating to the contributions. The disclosure
178-25 must contain, at a minimum, the total dollar amount of the
178-26 contributions and a statement that the contributed property or
178-27 capital may not be included in invested capital or allowed
179-1 depreciation expense by the regulatory authority in rate-making
179-2 proceedings.
179-3 (k) [(g)] A utility or a water supply or sewer service
179-4 corporation that proposes to sell, assign, lease, or rent its
179-5 facilities shall notify the other party to the transaction of the
179-6 requirements of this section before signing an agreement to sell,
179-7 assign, lease, or rent its facilities.
179-8 SECTION 6.12. Section 13.302, Water Code, is amended to read
179-9 as follows:
179-10 Sec. 13.302. PURCHASE OF VOTING STOCK IN ANOTHER PUBLIC
179-11 UTILITY: REPORT. (a) A utility may not purchase voting stock in
179-12 another utility doing business in this state and a person may not
179-13 acquire a controlling interest in a utility doing business in this
179-14 state unless the person or utility files a written application with
179-15 [notifies] the commission [of the proposed purchase or acquisition]
179-16 not later than the 61st day before the date on which the
179-17 transaction is to occur.
179-18 (b) The commission may require that a person acquiring a
179-19 controlling interest in a utility demonstrate adequate financial,
179-20 managerial, and technical capability for providing continuous and
179-21 adequate service to the requested area and any areas currently
179-22 certificated to the person.
179-23 (c) If the person acquiring a controlling interest cannot
179-24 demonstrate adequate financial capability, the commission may
179-25 require that the person provide a bond or other financial assurance
179-26 in a form and amount specified by the commission to ensure
179-27 continuous and adequate utility service is provided.
180-1 (d) The executive director may request that the commission
180-2 hold a public hearing on the transaction if the executive director
180-3 believes that a criterion [criteria] prescribed by Section
180-4 13.301(e) [13.301(c) of this code] applies.
180-5 (e) [(c)] Unless the executive director requests that a
180-6 public hearing be held, the purchase or acquisition may be
180-7 completed as proposed:
180-8 (1) at the end of the 60-day period; or
180-9 (2) [may be completed] at any time after the executive
180-10 director notifies the person or utility that a hearing will not be
180-11 requested.
180-12 (f) If a hearing is requested or if the person or utility
180-13 fails to make the application to the commission as [provide the]
180-14 required [notification to the commission], the purchase or
180-15 acquisition may not be completed unless the commission determines
180-16 that the proposed transaction serves the public interest. A
180-17 purchase or acquisition that is not completed in accordance with
180-18 the provisions of this section is void.
180-19 SECTION 6.13. Section 13.412, Water Code, is amended by
180-20 amending Subsections (a) and (b) and adding Subsections (f) and (g)
180-21 to read as follows:
180-22 (a) At the request of the commission, the attorney general
180-23 shall bring suit for the appointment of a receiver to collect the
180-24 assets and carry on the business of a water or sewer utility that:
180-25 (1) has abandoned operation of its facilities;
180-26 (2) informs the commission that the owner is
180-27 abandoning the system;
181-1 (3) [or] violates a final order of the commission; or
181-2 (4) allows any property owned or controlled by it to
181-3 be used in violation of a final order of the commission.
181-4 (b) The court shall appoint a receiver if an appointment is
181-5 necessary:
181-6 (1) to guarantee the collection of assessments, fees,
181-7 penalties, or interest;
181-8 (2) to guarantee continuous and adequate [continued]
181-9 service to the customers of the utility; or
181-10 (3) to prevent continued or repeated violation of the
181-11 final order.
181-12 (f) For purposes of this section and Section 13.4132,
181-13 abandonment may include but is not limited to:
181-14 (1) failure to pay a bill or obligation owed to a
181-15 retail public utility or to an electric or gas utility with the
181-16 result that the utility service provider has issued a notice of
181-17 discontinuance of necessary services;
181-18 (2) failure to provide appropriate water or wastewater
181-19 treatment so that a potential health hazard results;
181-20 (3) failure to adequately maintain facilities,
181-21 resulting in potential health hazards, extended outages, or
181-22 repeated service interruptions;
181-23 (4) failure to provide customers adequate notice of a
181-24 health hazard or potential health hazard;
181-25 (5) failure to secure an alternative available water
181-26 supply during an outage;
181-27 (6) displaying a pattern of hostility towards or
182-1 repeatedly failing to respond to the commission or the utility's
182-2 customers; and
182-3 (7) failure to provide the commission with adequate
182-4 information on how to contact the utility for normal business and
182-5 emergency purposes.
182-6 (g) Notwithstanding Section 64.021, Civil Practice and
182-7 Remedies Code, a receiver appointed under this section may seek
182-8 commission approval to acquire the water or sewer utility's
182-9 facilities and transfer the utility's certificate of convenience
182-10 and necessity. The receiver must apply in accordance with
182-11 Subchapter H.
182-12 SECTION 6.14. Sections 13.4132(a) and (c), Water Code, are
182-13 amended to read as follows:
182-14 (a) The commission, after providing to the utility notice
182-15 and an opportunity to be heard by the commissioners at a commission
182-16 meeting [for a hearing], may authorize a willing person to
182-17 temporarily manage and operate a utility if the utility:
182-18 (1) [that] has discontinued or abandoned operations or
182-19 the provision of services; or
182-20 (2) has been or is being referred to the attorney
182-21 general for the appointment of a receiver under Section 13.412 [of
182-22 this code].
182-23 (c) A person appointed under this section has the powers and
182-24 duties necessary to ensure the continued operation of the utility
182-25 and the provision of continuous and adequate services to customers,
182-26 including the power and duty to:
182-27 (1) read meters;
183-1 (2) bill for utility services;
183-2 (3) collect revenues;
183-3 (4) disburse funds; [and]
183-4 (5) access all system components; and
183-5 (6) request rate increases.
183-6 SECTION 6.15. Section 15.602, Water Code, is amended to read
183-7 as follows:
183-8 Sec. 15.602. DEFINITIONS. In this subchapter:
183-9 (1) "Additional state revolving fund" means any state
183-10 revolving fund hereafter established by the board to provide
183-11 financial assistance to political subdivisions for public works in
183-12 accordance with a capitalization grant program hereafter
183-13 established by a federal agency or otherwise authorized by federal
183-14 law.
183-15 (2) "Authorized investments" means any authorized
183-16 investments described in Section 404.024, Government Code.
183-17 (3) "Community water system" means a public water
183-18 system that:
183-19 (A) serves at least 15 service connections used
183-20 by year-round residents of the area served by the system; or
183-21 (B) regularly serves at least 25 year-round
183-22 residents.
183-23 (4) "Construction" shall have the meaning assigned by
183-24 the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).
183-25 (5) "Disadvantaged community" means an area meeting
183-26 criteria established by board rule, which criteria shall be based
183-27 on measures that may include single-family residential property
184-1 valuation, income levels of residents of the area, or other
184-2 similarly appropriate measures.
184-3 (6) [(4)] "Federal Act" means the Federal Water
184-4 Pollution Control Act, as amended (33 U.S.C. 1251 et seq.).
184-5 (7) "Nonprofit noncommunity water system" means a
184-6 public water system that is not operated for profit and that:
184-7 (A) is owned by a political subdivision or
184-8 nonprofit entity; and
184-9 (B) is not a community water system.
184-10 (8) [(5)] "Political subdivision" means a
184-11 municipality, intermunicipal, interstate, or state agency, [or] any
184-12 other public entity eligible for assistance under this subchapter,
184-13 or a nonprofit water supply corporation created and operating under
184-14 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
184-15 (Article 1434a, Vernon's Texas Civil Statutes), if such entity is
184-16 eligible for financial assistance under federal law establishing
184-17 the state revolving fund or an additional state revolving fund.
184-18 (9) "Public water system" means a system that is owned
184-19 by any person and that meets the definition of public water system
184-20 in the Safe Drinking Water Act.
184-21 (10) [(6)] "Public works" means any project to
184-22 acquire, construct, improve, repair, or otherwise provide any
184-23 buildings, structures, facilities, equipment, or other real or
184-24 personal property or improvements designed for public use,
184-25 protection, or enjoyment undertaken by a political subdivision and
184-26 paid for, in whole or in part, out of public funds.
184-27 (11) [(7)] "Revolving fund" means the state water
185-1 pollution control revolving fund.
185-2 (12) "Safe Drinking Water Act" means Title XIV of the
185-3 federal Public Health Service Act, commonly known as the Safe
185-4 Drinking Water Act, as amended (42 U.S.C. Section 300f et seq.).
185-5 (13) "Safe drinking water revolving fund" means the
185-6 fund established by the board as an additional state revolving fund
185-7 to provide financial assistance in accordance with the federal
185-8 program established pursuant to the provisions of the Safe Drinking
185-9 Water Act.
185-10 (14) [(8)] "Treatment works" has the meaning
185-11 established by the federal act and the eligible components of the
185-12 management programs established by Sections 319 and 320 of the
185-13 federal act.
185-14 SECTION 6.16. Subchapter J, Chapter 15, Water Code, is
185-15 amended by adding Section 15.6041 to read as follows:
185-16 Sec. 15.6041. FINANCIAL ASSISTANCE UNDER THE SAFE DRINKING
185-17 WATER REVOLVING FUND. (a) The safe drinking water revolving fund
185-18 shall be administered by the board under this subchapter and rules
185-19 adopted by the board. The safe drinking water revolving fund shall
185-20 be held and administered by the board in the same manner as
185-21 provided by Section 15.603, except that the safe drinking water
185-22 revolving fund shall be held and administered in accordance with
185-23 the Safe Drinking Water Act and shall be used to provide financial
185-24 assistance in accordance with that act and in the manner provided
185-25 by rules adopted by the board:
185-26 (1) to political subdivisions for community water
185-27 systems and for nonprofit noncommunity water systems;
186-1 (2) to persons other than political subdivisions for
186-2 community water systems or nonprofit noncommunity water systems
186-3 from the account established by Subsection (b)(1);
186-4 (3) to persons, including political subdivisions, for
186-5 service to disadvantaged communities from the account established
186-6 by Subsection (b)(2); and
186-7 (4) for other purposes authorized by the Safe Drinking
186-8 Water Act.
186-9 (b) In addition to other accounts the board may establish in
186-10 the safe drinking water revolving fund, the board shall establish
186-11 the following separate accounts:
186-12 (1) the community/noncommunity water system financial
186-13 assistance account, to be used solely for providing financial
186-14 assistance to persons, other than political subdivisions, providing
186-15 services through a community water system or a nonprofit
186-16 noncommunity water system, which account shall be composed solely
186-17 of funds appropriated by the legislature, funds provided as gifts
186-18 or grants by the United States government, interest earnings on
186-19 amounts credited to the account, and repayments of loans made from
186-20 the account; and
186-21 (2) the disadvantaged community account, to be used
186-22 solely for providing financial assistance under the terms of
186-23 Subsections (c) and (d), which account shall be composed solely of
186-24 funds appropriated by the legislature, funds provided as gifts or
186-25 grants by the United States government, interest earnings on
186-26 amounts credited to the account, and repayments of loans made from
186-27 the account.
187-1 (c) The board may provide financial assistance from the
187-2 disadvantaged community account to:
187-3 (1) a political subdivision:
187-4 (A) that is a disadvantaged community; or
187-5 (B) for a project serving an area that:
187-6 (i) is located outside the boundaries of
187-7 the political subdivision; and
187-8 (ii) meets the definition of a
187-9 disadvantaged community; or
187-10 (2) an owner of a community water system that is
187-11 ordered by the commission to provide service to a disadvantaged
187-12 community, provided that the financial assistance is for the sole
187-13 purpose of providing service to a disadvantaged community.
187-14 (d) In providing financial assistance from the disadvantaged
187-15 community account, the board shall determine the amount of a loan
187-16 which the political subdivision cannot repay based on affordability
187-17 criteria established by the board by rule. The board shall forgive
187-18 repayment of that portion of the principal of the loan which the
187-19 board determines the political subdivision cannot repay. Financial
187-20 assistance from the disadvantaged community account may not exceed
187-21 the allowable percentage of the amount of the capitalization grant
187-22 received by the state pursuant to the Safe Drinking Water Act.
187-23 SECTION 6.17. Sections 15.603(c) and (g), Water Code, are
187-24 amended to read as follows:
187-25 (c) The revolving fund consists of money derived from
187-26 federal grants, direct appropriations, investment earnings on
187-27 amounts credited to the revolving fund, and, at the board's
188-1 discretion, from any and all sources available [to provide the
188-2 required state match for the purposes of this subchapter].
188-3 (g) The revolving fund and any accounts established in the
188-4 revolving fund shall be kept and maintained by or at the direction
188-5 of the board and do not constitute and are not a part of the State
188-6 Treasury. However, at the direction of the board, the revolving
188-7 fund or accounts in the revolving fund may be kept and held in
188-8 escrow and in trust by the comptroller [State Treasurer] for and on
188-9 behalf of the board, shall be used only as provided by this
188-10 subchapter, and pending such use shall be invested in authorized
188-11 investments as provided by any order, resolution, or rule of the
188-12 board. Legal title to money and investments in the revolving fund
188-13 is in the board unless or until paid out as provided by this
188-14 subchapter, the federal act, and the rules of the board. The
188-15 comptroller [State Treasurer], as custodian, shall administer the
188-16 funds strictly and solely as provided by this subchapter and in the
188-17 orders, resolutions, and rules, and the state shall take no action
188-18 with respect to the revolving fund other than that specified in
188-19 this subchapter, the federal act, and the rules of the board.
188-20 SECTION 6.18. Section 341.031(a), Health and Safety Code, is
188-21 amended to read as follows:
188-22 (a) Public drinking water must be free from deleterious
188-23 matter and must comply with the standards established by the
188-24 commission[, the United States Public Health Service,] or the
188-25 United States Environmental Protection Agency. The commission may
188-26 adopt and enforce rules to implement the federal Safe Drinking
188-27 Water Act (42 U.S.C. Section 300f et seq.).
189-1 SECTION 6.19. Subchapter C, Chapter 341, Health and Safety
189-2 Code, is amended by adding Section 341.0315 to read as follows:
189-3 Sec. 341.0315. PUBLIC DRINKING WATER SUPPLY SYSTEM
189-4 REQUIREMENTS. (a) To preserve the public health, safety, and
189-5 welfare, the commission shall ensure that public drinking water
189-6 supply systems:
189-7 (1) supply safe drinking water in adequate quantities;
189-8 (2) are financially stable; and
189-9 (3) are technically sound.
189-10 (b) The commission shall encourage and promote the
189-11 development and use of regional and areawide drinking water supply
189-12 systems.
189-13 (c) Each public drinking water supply system shall provide
189-14 an adequate and safe drinking water supply. The supply must meet
189-15 the requirements of Section 341.031 and commission rules.
189-16 (d) The commission shall consider compliance history in
189-17 determining issuance of new permits, renewal permits, and permit
189-18 amendments for a public drinking water system.
189-19 SECTION 6.20. Subchapter C, Chapter 341, Health and Safety
189-20 Code, is amended by amending Section 341.035 and adding Sections
189-21 341.0351 through 341.0356 to read as follows:
189-22 Sec. 341.035. APPROVED PLANS REQUIRED FOR PUBLIC WATER
189-23 SUPPLIES. (a) Except as provided by Subsection (d), a person may
189-24 not begin construction of a public drinking water supply system
189-25 unless the executive director of the commission approves:
189-26 (1) a business plan for the system; and
189-27 (2) the plans and specifications for the system.
190-1 (b) The prospective owner or operator of the system must
190-2 submit to the executive director a business plan that demonstrates
190-3 that the owner or operator of the proposed system has available the
190-4 financial, managerial, and technical capability to ensure future
190-5 operation of the system in accordance with applicable laws and
190-6 rules. The executive director:
190-7 (1) shall review the business plan; and
190-8 (2) may order the prospective owner or operator of the
190-9 system to provide adequate financial assurance of ability to
190-10 operate the system in accordance with applicable laws and rules, in
190-11 the form of a bond or as specified by the commission, unless the
190-12 executive director finds that the business plan demonstrates
190-13 adequate financial capability.
190-14 (c) The prospective owner or operator of the proposed system
190-15 shall provide to the commission [A person contemplating
190-16 establishing a drinking water supply system for public use must
190-17 submit] completed plans and specifications for review and approval
190-18 in accordance with commission rules.
190-19 (d) A person is not required to file a business plan under
190-20 Subsection (a)(1) or (b) if the person:
190-21 (1) is a county;
190-22 (2) is a retail public utility as defined by Section
190-23 13.002, Water Code, unless that person is a utility as defined by
190-24 that section; or
190-25 (3) has executed an agreement with a political
190-26 subdivision to transfer the ownership and operation of the water
190-27 supply system to the political subdivision [to the commission
191-1 before construction of the system. The commission shall approve
191-2 plans that conform to the state's water safety laws. The water
191-3 supply system may be established only on the commission's
191-4 approval].
191-5 Sec. 341.0351. NOTIFICATION OF SYSTEM CHANGES. [(b)] Any
191-6 person [agency], including a municipality, supplying a drinking
191-7 water service to the public that intends to make a material or
191-8 major change in a water supply system that may affect the sanitary
191-9 features of that utility must give written notice of that intention
191-10 to the commission before making the change.
191-11 Sec. 341.0352. ADVERTISED QUALITY OF WATER SUPPLY. [(c)] A
191-12 water supply system owner, manager, or operator or an agent of a
191-13 water supply system owner, manager, or operator may not advertise
191-14 or announce a water supply as being of a quality other than the
191-15 quality that is disclosed by the commission's latest rating.
191-16 Sec. 341.0353. DRINKING WATER SUPPLY COMPARATIVE RATING
191-17 INFORMATION. [(d)] The commission shall assemble and tabulate all
191-18 necessary information [data] relating to public drinking water
191-19 supplies at least once each year and as often during the year as
191-20 conditions demand or justify. The information [data] forms the
191-21 basis of an official comparative rating of public drinking water
191-22 supply systems.
191-23 Sec. 341.0354. HIGHWAY SIGNS FOR APPROVED SYSTEM RATING.
191-24 [(e)] A water supply system that attains an approved rating is
191-25 entitled to erect signs of a design approved by the commission on
191-26 highways approaching the municipality in which the water supply
191-27 system is located. The signs shall be immediately removed on
192-1 notice from the commission if the water supply system does not
192-2 continue to meet the specified standards.
192-3 Sec. 341.0355. FINANCIAL ASSURANCE FOR CERTAIN SYSTEMS.
192-4 (a) The commission may require the owner or operator of a public
192-5 drinking water supply system that was constructed without the
192-6 approval required by Section 341.035, that has a history of
192-7 noncompliance with this subchapter or commission rules, or that is
192-8 subject to a commission enforcement action to:
192-9 (1) provide the executive director of the commission
192-10 with a business plan that demonstrates that the system has
192-11 available the financial, managerial, and technical resources
192-12 adequate to ensure future operation of the system in accordance
192-13 with applicable laws and rules; and
192-14 (2) provide adequate financial assurance of the
192-15 ability to operate the system in accordance with applicable laws
192-16 and rules in the form of a bond or as specified by the commission.
192-17 (b) If the commission relies on rate increases or customer
192-18 surcharges as the form of financial assurance, such funds shall be
192-19 deposited in an escrow account and released only with the approval
192-20 of the commission.
192-21 Sec. 341.0356. ORDER TO STOP OPERATIONS. (a) A public
192-22 water supply system shall stop operations on receipt of a written
192-23 notification of the executive director of the commission or an
192-24 order of the commission issued under this section.
192-25 (b) The executive director or the commission may order a
192-26 public water supply system to stop operations if:
192-27 (1) the system was constructed without the approval
193-1 required by Section 341.035; or
193-2 (2) the executive director determines that the system
193-3 presents an imminent health hazard.
193-4 (c) A notification or order issued under this section may be
193-5 delivered by facsimile, by personal service, or by mail.
193-6 (d) A water supply system subject to notification or an
193-7 order under this section, on written request, is entitled to an
193-8 opportunity to be heard by the commissioners at a commission
193-9 meeting.
193-10 (e) The public water supply system may not resume operations
193-11 until the commission, the executive director, or a court authorizes
193-12 the resumption.
193-13 SECTION 6.21. Sections 341.047(a) and (b), Health and Safety
193-14 Code, are amended to read as follows:
193-15 (a) A person commits an offense if the person:
193-16 (1) violates a provision of Section 341.031;
193-17 (2) violates a provision of Section 341.032(a) or (b);
193-18 (3) violates a provision of Section 341.033(a)-(f);
193-19 (4) constructs a drinking water supply system without
193-20 submitting completed plans and specifications as required by
193-21 Section 341.035(c) [341.035(a)];
193-22 (5) begins construction of [establishes] a drinking
193-23 water supply system without the commission's approval as required
193-24 by Section 341.035(a);
193-25 (6) violates a provision of Section 341.0351 or
193-26 341.0352 [341.035(b) or (c)];
193-27 (7) fails to remove a sign as required by Section
194-1 341.0354 [341.035(e)]; or
194-2 (8) violates a provision of Section 341.036.
194-3 (b) An offense under Subsection (a) is a Class C misdemeanor
194-4 [punishable by a fine of not less than $100].
194-5 SECTION 6.22. Sections 341.048(b)-(i), Health and Safety
194-6 Code, are amended to read as follows:
194-7 (b) A person who causes, suffers, allows, or permits a
194-8 violation under this subchapter shall be assessed a civil penalty
194-9 of not less than $50 nor more than $10,000 [$500] for each
194-10 violation. Each day of a continuing violation is a separate
194-11 violation.
194-12 (c) [If it is shown on a trial of the defendant that the
194-13 defendant has previously been assessed a civil penalty under this
194-14 section within a year before the date on which the violation being
194-15 tried occurred, the defendant shall be assessed a civil penalty of
194-16 not less than $50 nor more than $1,000 for each subsequent
194-17 violation under this subchapter. Each day of a continuing
194-18 violation is a separate violation.]
194-19 [(d)] If it appears that a person has violated, is
194-20 violating, or threatens to violate a provision under this
194-21 subchapter, the commission, a county, or a municipality may
194-22 institute a civil suit in a district court for:
194-23 (1) injunctive relief to restrain the person from
194-24 continuing the violation or threat of violation;
194-25 (2) the assessment and recovery of a civil penalty; or
194-26 (3) both injunctive relief and a civil penalty.
194-27 (d) [(e)] The commission is a necessary and indispensable
195-1 party in a suit brought by a county or municipality under this
195-2 section.
195-3 (e) [(f)] On the commission's request, the attorney general
195-4 shall institute a suit in the name of the state for injunctive
195-5 relief, to recover a civil penalty, or for both injunctive relief
195-6 and civil penalty.
195-7 (f) [(g)] The suit may be brought in:
195-8 (1) Travis County;
195-9 (2) [, in] the county in which the defendant resides;
195-10 or
195-11 (3) [, or in] the county in which the violation or
195-12 threat of violation occurs.
195-13 (g) [(h)] In a suit under this section to enjoin a violation
195-14 or threat of violation of this subchapter, the court shall grant
195-15 the state, county, or municipality, without bond or other
195-16 undertaking, any injunction that the facts may warrant including
195-17 temporary restraining orders, temporary injunctions after notice
195-18 and hearing, and permanent injunctions.
195-19 (h) [(i)] Civil penalties recovered in a suit brought under
195-20 this section by a county or municipality shall be equally divided
195-21 between:
195-22 (1) the state; and
195-23 (2) the county or municipality that first brought the
195-24 suit.
195-25 SECTION 6.23. Section 341.049(a), Health and Safety Code, is
195-26 amended to read as follows:
195-27 (a) If a person causes, suffers, allows, or permits a
196-1 violation of this subchapter or a rule or order adopted under this
196-2 subchapter, the commission may assess a penalty against that person
196-3 as provided by this section. The penalty shall not be less than
196-4 $50 nor more than $10,000 [$500] for each violation. Each day of a
196-5 continuing violation may be considered a separate violation.
196-6 SECTION 6.24. Section 1, Chapter 190, Acts of the 66th
196-7 Legislature, Regular Session, 1979 (Article 1110f, Vernon's Texas
196-8 Civil Statutes), is amended to read as follows:
196-9 Sec. 1. Purpose. The purpose of this Act is to clarify the
196-10 authority of public entities that are lawfully authorized to engage
196-11 in the collection, transportation, treatment, and disposal of
196-12 sewage and the conservation, storage, transportation, treatment,
196-13 and distribution of water, to join together as cotenants or
196-14 coowners, or by concurrent resolution or ordinance, to create a
196-15 public utility agency, to engage in the planning, financing,
196-16 acquiring, constructing, owning, operating, and maintaining of
196-17 facilities so that each public entity will owe all of the duties,
196-18 will have and be secure in all of the rights, powers, and
196-19 liabilities, and shall be entitled to all of the privileges and
196-20 exemptions attributable to its undivided interest as a cotenant or
196-21 coowner should the entities elect not to create a public utility
196-22 agency, as provided by law with respect to an entire interest in
196-23 facilities planned, financed, acquired, constructed, owned,
196-24 operated, and maintained by it alone. These alternatives are to
196-25 serve as a means of achieving economies of scale by providing
196-26 essential water and sewage systems to the public and promoting the
196-27 orderly economic development of the state while providing
197-1 environmentally sound protection of future water and wastewater
197-2 needs of the state and its inhabitants. The provisions of this Act
197-3 shall be liberally construed to effectuate these purposes but shall
197-4 not be construed to otherwise enlarge, change, or modify in any way
197-5 the rights, powers, or authority of any public or private entity
197-6 under existing law. Nothing in this Act shall be construed to
197-7 alter, change, abrogate, or otherwise affect the existing contracts
197-8 in force at the time this Act takes effect.
197-9 SECTION 6.25. Section 2, Chapter 190, Acts of the 66th
197-10 Legislature, Regular Session, 1979 (Article 1110f, Vernon's Texas
197-11 Civil Statutes), is amended by amending Subsections (2), (3), and
197-12 (4) to read as follows:
197-13 (2) "Private entity" means any entity other than a
197-14 public entity solely involved in financing, constructing,
197-15 operating, and maintaining water and sewer facilities.
197-16 (3) "Facilities" means facilities necessary or
197-17 incidental to the collection, transportation, treatment, or
197-18 disposal of sewage and to the conservation, storage,
197-19 transportation, treatment, and distribution of water, including
197-20 plant sites, rights-of-way, and real and personal property and
197-21 equipment and rights of every kind useful in connection with
197-22 collection, transportation, treatment, or disposal of sewage or
197-23 with conservation, storage, transportation, treatment, and
197-24 distribution of water.
197-25 (4) "Public utility agency" or "agency" means any
197-26 agency created under this Act by two or more public entities for
197-27 the purpose of planning, financing, constructing, owning,
198-1 operating, and maintaining facilities for the purpose of achieving
198-2 economies of scale in providing water or sewer services.
198-3 SECTION 6.26. Section 3(a), Chapter 190, Acts of the 66th
198-4 Legislature, Regular Session, 1979 (Article 1110f, Vernon's Texas
198-5 Civil Statutes), is amended to read as follows:
198-6 (a) To more readily accomplish the purposes of this Act, two
198-7 or more public entities, by concurrent ordinances, may create an
198-8 agency to be known as a public utility agency. The agency shall be
198-9 without taxing power, and shall be a separate agency, a political
198-10 subdivision of the state, and body politic and corporate exercising
198-11 all of the powers that are conferred by Chapter 10, Title 28,
198-12 Revised Civil Statutes of Texas, 1925, as amended, and this Act on
198-13 a public entity. No agency is authorized to engage in any utility
198-14 business other than the collection, transportation, treatment, or
198-15 disposal of sewage or the conservation, storage, transportation,
198-16 treatment, and distribution of water for the participating public
198-17 entities that are joint owners with the agency of a facility
198-18 located within the state. A public entity, at the time of the
198-19 passage of the concurrent ordinance, must be one that has the
198-20 authority to engage in the collection, transportation, treatment,
198-21 or disposal of sewage or the conservation, storage, transportation,
198-22 treatment, and distribution of water, but the entity may
198-23 subsequently dispose of its facilities. Before the passage of a
198-24 concurrent ordinance to create a public utility agency, the
198-25 governing body of each public entity shall have notice of its
198-26 intention to adopt the ordinance published in a newspaper of
198-27 general circulation within the county in which the public entity is
199-1 domiciled once a week for two consecutive weeks, the date of the
199-2 first publication to be at least 14 days before the date set for
199-3 the passage of the concurrent ordinance. The notice shall state
199-4 the date, time, and place that the governing body proposes to pass
199-5 the ordinance and that on the effective date of the concurrent
199-6 ordinances the public entities adopting them shall have created a
199-7 public utility agency. If, prior to the day set for the passage of
199-8 a concurrent ordinance, 10 percent of the qualified electors of the
199-9 particular public entity present a petition to the governing body
199-10 requesting that a referendum election be called, the ordinance
199-11 shall not become effective until a majority of the qualified
199-12 electors of the entity voting in the election have approved the
199-13 ordinance. The election shall be called and held in conformity
199-14 with the Texas Election Code, as amended, Chapter 1, Title 22,
199-15 Revised Civil Statutes of Texas, 1925, as amended, and this Act.
199-16 Except as provided in this Act, a concurrent ordinance shall not be
199-17 subject to a referendum election.
199-18 SECTION 6.27. Sections 4(f) and (g), Chapter 190, Acts of
199-19 the 66th Legislature, Regular Session, 1979 (Article 1110f,
199-20 Vernon's Texas Civil Statutes), are amended to read as follows:
199-21 (f) The agency may make contracts, leases, and agreements
199-22 with and accept grants and loans from the United States of America,
199-23 its departments and agencies, the State of Texas, its agencies,
199-24 counties, municipalities, and political subdivisions, and public or
199-25 private corporations and persons and may generally perform all acts
199-26 necessary for the full exercise of the powers vested in the agency.
199-27 Each agency may contract with those public entities creating the
200-1 agency for the collection, transportation, treatment, and disposal
200-2 of sewage or the conservation, storage, transportation, treatment,
200-3 and distribution of water, and the authority to contract for these
200-4 services shall also extend to private entities under terms and
200-5 conditions the agency's board of directors may consider
200-6 appropriate. The agency may sell, lease, convey, or otherwise
200-7 dispose of any right, interest, or property that is, in its
200-8 judgment, not needed for the efficient operation and maintenance of
200-9 its facilities. The responsibility of the management, operation,
200-10 and control of the properties belonging to the agency shall be
200-11 vested in the board of directors.
200-12 (g) The agency, in contracting with any public or private
200-13 entity for wastewater collection, transmission, treatment, or
200-14 disposal services or for water conservation, storage,
200-15 transportation, treatment, and distribution, must charge rates
200-16 sufficient to produce revenues adequate:
200-17 (1) to pay all expenses of operation and maintenance;
200-18 (2) to pay all interest and principal due on bonds
200-19 issued as they become due and payable;
200-20 (3) to pay the principal of and interest on any legal
200-21 debt of the agency;
200-22 (4) to pay all sinking and reserve fund payments as
200-23 they become due and payable; and
200-24 (5) to fulfill the terms of any agreements made with
200-25 the holders of any bonds.
200-26 The agency may also establish a reasonable depreciation and
200-27 emergency fund. Payments made pursuant to contracts with the
201-1 agencies are to constitute an operating expense of the public or
201-2 private entity served as a result of the contracts unless otherwise
201-3 prohibited by a previously outstanding obligation of the purchasing
201-4 entity.
201-5 SECTION 6.28. Section 13.411, Water Code, is amended to read
201-6 as follows:
201-7 Sec. 13.411. Action to Enjoin or Require Compliance. (a)
201-8 If [it appears to] the commission has reason to believe that any
201-9 retail public utility or any other person or corporation is engaged
201-10 in or is about to engage in any act in violation of this chapter or
201-11 of any order or rule of the commission entered or adopted under
201-12 this chapter or that any retail public utility or any other person
201-13 or corporation is failing to comply with this chapter or with any
201-14 rule or order, the attorney general on request of the commission,
201-15 in addition to any other remedies provided in this chapter, shall
201-16 bring an action in a court of competent jurisdiction in the name of
201-17 and on behalf of the commission against the retail public utility
201-18 or other person or corporation to enjoin the commencement or
201-19 continuation of any act or to require compliance with this chapter
201-20 or the rule or order.
201-21 (b) If the executive director has reason to believe that the
201-22 failure of the owner or operator of a water utility to properly
201-23 operate, maintain, or provide adequate facilities presents an
201-24 imminent threat to human health or safety, the executive director
201-25 shall immediately:
201-26 (1) notify the utility's representative; and
201-27 (2) initiate enforcement action consistent with:
202-1 (A) this subchapter; and
202-2 (B) procedural rules adopted by the commission.
202-3 SECTION 6.29. Section 13.418, Water Code, is amended to read
202-4 as follows:
202-5 Sec. 13.418. DISPOSITION OF FINES AND PENALTIES; WATER
202-6 UTILITY IMPROVEMENT ACCOUNT. (a) Fines and penalties collected
202-7 under this chapter from a retail public utility that is not a
202-8 public utility in other than criminal proceedings shall be paid to
202-9 the commission and deposited in the general revenue fund.
202-10 (b) Fines and penalties collected from a public utility
202-11 under this chapter in other than criminal proceedings shall be paid
202-12 to the commission and deposited in the water utility improvement
202-13 account as provided by Section 341.0485, Health and Safety Code
202-14 [General Revenue Fund].
202-15 SECTION 6.30. Subchapter C, Chapter 341, Health and Safety
202-16 Code, is amended by adding Section 341.0485 to read as follows:
202-17 Sec. 341.0485. WATER UTILITY IMPROVEMENT ACCOUNT. (a) The
202-18 water utility improvement account is created outside of the state
202-19 treasury.
202-20 (b) A civil or administrative penalty payable to the state
202-21 that is collected from a utility for a violation of this subchapter
202-22 shall be deposited in the account.
202-23 (c) The comptroller shall manage the account for the benefit
202-24 of the commission and shall invest the money and deposit interest
202-25 and other investment proceeds in the account. The comptroller
202-26 shall release money from the account in the manner provided by the
202-27 commission. Money in the account may be used only for:
203-1 (1) capital improvements to the water or sewer system
203-2 of a utility that has paid fines or penalties under this chapter or
203-3 under Chapter 13, Water Code, that have been deposited in the
203-4 account; or
203-5 (2) capital improvements and operating and maintenance
203-6 expenses for a utility placed in receivership or under a temporary
203-7 manager under Section 13.4132, Water Code.
203-8 (d) Money used under Subsection (c)(1) for a utility's
203-9 system may not exceed the amount of the civil or administrative
203-10 penalties the utility has paid. Capital improvements made with
203-11 money from the account may not be considered as invested capital
203-12 of the utility for any purpose. If the utility is sold to another
203-13 owner, a portion of the sales price equivalent to the percentage of
203-14 the used and useful facilities that were constructed with money
203-15 under Subsection (c)(1) shall be immediately distributed equally to
203-16 the current customers of the utility.
203-17 (e) Money used under Subsection (c)(2) may not be considered
203-18 as invested capital of the utility for any purpose.
203-19 (f) In this section, "utility" has the meaning assigned by
203-20 Section 13.002, Water Code.
203-21 ARTICLE 7. WATER DATA COLLECTION AND DISSEMINATION
203-22 SECTION 7.01. Section 16.012, Water Code, is amended to read
203-23 as follows:
203-24 Sec. 16.012. STUDIES, INVESTIGATIONS, SURVEYS. (a) The
203-25 executive administrator shall make studies, investigations, and
203-26 surveys of the occurrence, quantity, quality, and availability of
203-27 the surface water and groundwater of this state and shall, in
204-1 cooperation with other entities of the state, guide the development
204-2 of a statewide water resource data collection and dissemination
204-3 network. For these purposes the board [staff] shall collect,
204-4 receive, analyze, [and] process, and facilitate access to basic
204-5 data and summary information concerning [the] water resources of
204-6 the state and provide guidance regarding data formats and
204-7 descriptions required to access and understand Texas water resource
204-8 data.
204-9 (b) The executive administrator shall:
204-10 (1) determine suitable locations for future water
204-11 facilities, including reservoir sites;
204-12 (2) determine suitable, cost-effective water supply
204-13 alternatives on a regional basis, including aggressive water
204-14 conservation;
204-15 (3) locate land best suited for irrigation;
204-16 (4) [(3)] make estimates of the cost of proposed
204-17 irrigation works and the improvement of reservoir sites;
204-18 (5) [(4)] examine and survey reservoir sites; [and]
204-19 (6) monitor [(5) investigate] the effects of fresh
204-20 water inflows upon the bays and estuaries of Texas;
204-21 (7) monitor instream flows;
204-22 (8) lead a statewide effort, in coordination with
204-23 federal, state, and local governments, institutions of higher
204-24 education, and other interested parties, to develop a network for
204-25 collecting and disseminating water resource-related information
204-26 that is sufficient to support assessment of ambient water
204-27 conditions statewide;
205-1 (9) make recommendations for optimizing the efficiency
205-2 and effectiveness of water resource data collection and
205-3 dissemination as necessary to ensure that basic water resource data
205-4 are maintained and available for Texas;
205-5 (10) make basic data and summary information developed
205-6 under this subsection accessible to state agencies and other
205-7 interested persons; and
205-8 (11) cooperate with the Texas Agricultural Extension
205-9 Service to facilitate development and delivery of educational
205-10 programs as appropriate for rural and urban water users.
205-11 (c) In performing the duties required under Subdivisions
205-12 (1), (4), (5), (6), and (7) of Subsection (b), the executive
205-13 administrator shall consider advice from the Parks and Wildlife
205-14 Department.
205-15 (d) All entities of the state, including institutions of
205-16 higher education, that collect or use water data or information
205-17 shall cooperate with the board in the development of a coordinated,
205-18 efficient, and effective statewide water resource data collection
205-19 and dissemination network.
205-20 (e) The executive administrator shall keep full and proper
205-21 records of his work, observations, data, and calculations, all of
205-22 which are the property of the state.
205-23 (f) [(d)] In performing his duties under this section, the
205-24 executive administrator shall assist the commission in carrying out
205-25 the purposes and policies stated in Section 12.014 of this code.
205-26 (g) No later than December 31, 1999, the commission shall
205-27 obtain or develop an updated water availability model for six river
206-1 basins as determined by the commission. The commission shall
206-2 obtain or develop an updated water availability model for all
206-3 remaining river basins no later than December 31, 2001.
206-4 (h) Within 90 days of completing a water availability model
206-5 for a river basin, the commission shall provide to all holders of
206-6 existing permits, certified filings, and certificates of
206-7 adjudication in that river basin the projected amount of water that
206-8 would be available: during a drought of record; when flows are at
206-9 75 percent of normal; and when flows are at 50 percent of normal.
206-10 (i) Within 90 days of completing a water availability model
206-11 for a river basin, the commission shall provide to each regional
206-12 water planning group created under Section 16.053 of this code in
206-13 that river basin the projected amount of water that would be
206-14 available if cancellation procedures were instigated under the
206-15 provisions of Subchapter E, Chapter 11, of this code.
206-16 (j) Within 90 days of completing a water availability model
206-17 for a river basin, the commission, in coordination with the Parks
206-18 and Wildlife Department, shall determine the potential impact of
206-19 reusing municipal and industrial effluent on existing water rights,
206-20 instream uses, and freshwater inflows to bays and estuaries.
206-21 Within 30 days of making this determination, the commission shall
206-22 provide the projections to the board and each regional water
206-23 planning group created under Section 16.053 of this code in that
206-24 river basin.
206-25 SECTION 7.02. Section 16.021, Water Code, is amended to read
206-26 as follows:
206-27 Sec. 16.021. TEXAS NATURAL RESOURCES INFORMATION SYSTEM.
207-1 (a) The executive administrator shall establish the Texas Natural
207-2 Resources Information System (TNRIS) to serve Texas agencies and
207-3 citizens as a centralized clearinghouse and referral center for
207-4 natural resource, census, and other socioeconomic data [as a
207-5 centralized information system incorporating all Texas natural
207-6 resource data, socioeconomic data related to natural resources, or
207-7 indexes related to that data that is collected by state agencies or
207-8 other entities].
207-9 (b) The Texas Geographic Information Council (TGIC) [Natural
207-10 Resources Information System Task Force] is created to provide
207-11 strategic planning and coordination in the acquisition and use of
207-12 geo-spatial data and related technologies in the State of Texas.
207-13 The executive administrator and the executive director of the
207-14 Department of Information Resources shall designate entities to be
207-15 members of the TGIC. The chief administrative officer of each
207-16 member entity shall select one representative to serve on the TGIC.
207-17 The duties of the TGIC shall include providing guidance to the
207-18 executive administrator in carrying out his duties under this
207-19 section and guidance to the Department of Information Resources for
207-20 development of rules related to statewide geo-spatial data and
207-21 technology standards. [The task force is composed of one
207-22 representative from each state agency designated by the executive
207-23 administrator. The executive administrator shall designate a state
207-24 agency as a participant in the task force if the agency collects or
207-25 uses natural resource and related socioeconomic data.
207-26 Representatives of each designated agency shall be selected by the
207-27 chief administrative officer of that agency.]
208-1 (c) Under the guidance of the TGIC [Texas Natural Resources
208-2 Information System Task Force], the executive administrator shall:
208-3 (1) further develop [and implement] the Texas Natural
208-4 Resources Information System by promoting and providing for
208-5 effective acquisition, archiving, documentation, indexing, and
208-6 dissemination of natural resource and related digital and
208-7 nondigital data and information;
208-8 (2) obtain information in response to disagreements
208-9 regarding names and name spellings for natural and cultural
208-10 features in the state and provide this information to the Board on
208-11 Geographic Names of the United States Department of the Interior;
208-12 (3) make recommendations to the Board on Geographic
208-13 Names of the United States Department of the Interior for naming
208-14 any natural or cultural feature subject to the limitations provided
208-15 by Subsection (d) of this section;
208-16 (4) make recommendations to the Department of
208-17 Information Resources to adopt and promote standards that
208-18 facilitate sharing of digital natural resource data and related
208-19 socioeconomic data among federal, state, and local governments and
208-20 other interested parties;
208-21 (5) acquire and disseminate natural resource and
208-22 related socioeconomic data describing the Texas-Mexico border
208-23 region; and
208-24 (6) coordinate, conduct, and facilitate the
208-25 development, maintenance, and use of mutually compatible statewide
208-26 digital base maps depicting natural resources and man-made
208-27 features.
209-1 (d) A recommendation may not be made under Subdivision (3)
209-2 of Subsection (c) of this section for:
209-3 (1) a feature previously named under statutory
209-4 authority or recognized by an agency of the federal government, the
209-5 state, or a political subdivision of the state;
209-6 (2) a feature located on private property for which
209-7 consent of the property owner cannot be obtained; or
209-8 (3) naming a natural or cultural feature for a living
209-9 person.
209-10 SECTION 7.03. On September 1, 1997, the Texas Natural
209-11 Resources Information System Task Force and the Texas Geographic
209-12 Information Systems Planning Council are merged into the Texas
209-13 Geographic Information Council. All designated member agencies of
209-14 both predecessor entities shall continue to serve as member
209-15 agencies of the Texas Geographic Information Council.
209-16 ARTICLE 8. REPEALER; EFFECTIVE DATE; SAVING; EMERGENCY
209-17 SECTION 8.01. Section 11.028, Water Code, is repealed.
209-18 SECTION 8.02. (a) Except as provided by Subsections (b)
209-19 through (f) of this section, this Act takes effect September 1,
209-20 1997.
209-21 (b) This section and Sections 2.03, 2.08, 2.09, 2.17, and
209-22 3.03 of this Act take effect immediately.
209-23 (c) Section 4.38 of this Act takes effect on the first day
209-24 of the first calendar quarter beginning on or after the date that
209-25 it may take effect under Section 39, Article III, Texas
209-26 Constitution.
209-27 (d) The change in law made by Section 4.38 of this Act to
210-1 Section 151.318, Tax Code, does not affect taxes imposed before the
210-2 effective date of Section 4.38 of this Act, and the law in effect
210-3 before the effective date of that section is continued in effect
210-4 for purposes of liability for and collection of those taxes.
210-5 (e) Sections 5.03 and 5.05 through 5.08 of this Act take
210-6 effect on the date on which the constitutional amendment proposed
210-7 by S.J.R. No. 17, Acts of the 75th Legislature, Regular Session,
210-8 1997, takes effect. If that amendment is not approved by the
210-9 voters, those sections have no effect.
210-10 (f) Section 5.11 of this Act takes effect on the date on
210-11 which the constitutional amendment proposed by H.J.R. No. 102 or
210-12 similar legislation enacted by the 75th Legislature, Regular
210-13 Session, 1997, takes effect. If that amendment is not approved by
210-14 the voters, that section has no effect.
210-15 (g) The change in law made by Section 5.11 of this Act to
210-16 Subchapter B, Chapter 11, Tax Code, does not affect taxes imposed
210-17 before the effective date of Section 5.11 of this Act, and the law
210-18 in effect before the effective date of that section is continued in
210-19 effect for purposes of liability for and collection of those taxes.
210-20 SECTION 8.03. (a) The requirement of Section 341.035,
210-21 Health and Safety Code, as amended by Section 6.20 of this Act,
210-22 that certain persons must provide the executive director of the
210-23 Texas Natural Resource Conservation Commission with a business
210-24 plan, applies only to the prospective owner or operator of a public
210-25 drinking water supply system for which construction begins on or
210-26 after September 1, 1997.
210-27 (b) Section 341.0355, Health and Safety Code, as added by
211-1 Section 6.20 of this Act, applies to the owner or operator of a
211-2 public drinking water supply system regardless of the date
211-3 construction of the system began.
211-4 SECTION 8.04. (a) A change in law made by this Act that
211-5 applies to a criminal, civil, or administrative penalty applies
211-6 only to an offense committed or a violation that occurs on or after
211-7 the effective date of this Act. For the purposes of this Act, an
211-8 offense is committed or a violation occurs before the effective
211-9 date of this Act if any element of the offense or violation occurs
211-10 before that date.
211-11 (b) An offense committed or violation that occurs before the
211-12 effective date of this Act is covered by the law in effect when the
211-13 offense was committed or the violation occurred, and the former law
211-14 is continued in effect for this purpose.
211-15 SECTION 8.05. An Act creating an underground water
211-16 conservation district that requires a confirmation election enacted
211-17 by the 71st, 72nd, 73rd, or 74th Legislature is repealed, effective
211-18 on the second anniversary of the effective date of this Act, unless
211-19 the district has been approved at a confirmation election before
211-20 the second anniversary of the effective date of this Act. If an
211-21 Act creating an underground water conservation district is repealed
211-22 by this section, the district has no further authority, except that
211-23 any debts incurred shall be paid and the organization of the
211-24 district shall be maintained until all debts are paid.
211-25 SECTION 8.06. The importance of this legislation and the
211-26 crowded condition of the calendars in both houses create an
211-27 emergency and an imperative public necessity that the
212-1 constitutional rule requiring bills to be read on three several
212-2 days in each house be suspended, and this rule is hereby suspended,
212-3 and that this Act take effect and be in force according to its
212-4 terms, and it is so enacted.