1-1 By: Brown, et al. S.B. No. 1
1-2 (In the Senate - Filed January 22, 1997; January 23, 1997,
1-3 read first time and referred to Committee on Natural Resources;
1-4 March 25, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 11, Nays 0; March 25, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1 By: Brown
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the development and management of the water resources
1-11 of the state; providing penalties.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 ARTICLE 1. WATER PLANNING: DROUGHT, CONSERVATION,
1-14 DEVELOPMENT, AND MANAGEMENT
1-15 SECTION 1.01. Section 16.051, Water Code, is amended to read
1-16 as follows:
1-17 Sec. 16.051. STATE WATER PLAN: DROUGHT, CONSERVATION,
1-18 DEVELOPMENT, AND MANAGEMENT; EFFECT OF PLAN. (a) No later than
1-19 September 1, 2001, and every five years thereafter, the board [The
1-20 executive administrator] shall adopt [prepare, develop, and
1-21 formulate] a comprehensive state water plan that incorporates the
1-22 regional water plans approved under Section 16.053 of this code.
1-23 The state water plan shall provide for the orderly development,
1-24 management, and conservation of water resources and preparation for
1-25 and response to drought conditions, in order that sufficient water
1-26 will be available at a reasonable cost to ensure public health,
1-27 safety, and welfare; further economic development; and protect the
1-28 agricultural and natural resources of the entire state.
1-29 (b) The state water plan, as formally adopted by the board,
1-30 shall be a guide to state water policy. The commission shall take
1-31 the plan into consideration in matters coming before it. Nothing
1-32 in the state water plan or any amendment or modification of the
1-33 plan affects any vested right existing before August 30, 1965.
1-34 (c) The board by rule [plan] shall define and designate
1-35 river basins and watersheds.
1-36 (d) The board, in coordination with the commission and the
1-37 Parks and Wildlife Department, shall adopt by rule guidance
1-38 principles for the state water plan which reflect the public
1-39 interest of the entire state. When adopting guidance principles,
1-40 due consideration shall be given to the construction and
1-41 improvement of surface water resources and the application of
1-42 principles that result in voluntary redistribution of water
1-43 resources.
1-44 (e) On adoption the board shall deliver the state water plan
1-45 to the governor, the lieutenant governor, and the speaker of the
1-46 house of representatives and present the plan for review to the
1-47 appropriate legislative committees. The plan shall include
1-48 legislative recommendations that the board believes are needed and
1-49 desirable to facilitate more voluntary water transfers. [(c) The
1-50 executive administrator shall be governed in his preparation of the
1-51 plan by a regard for the public interest of the entire state. The
1-52 executive administrator shall direct his efforts toward the orderly
1-53 development and management of water resources in order that
1-54 sufficient water will be available at a reasonable cost to further
1-55 the economic development of the entire state.]
1-56 [(d) The executive administrator shall also give
1-57 consideration in the plan to the effect of upstream development on
1-58 the bays, estuaries, and arms of the Gulf of Mexico and to the
1-59 effect of the plan on navigation.]
1-60 SECTION 1.02. Sections 16.053 through 16.057, Water Code,
1-61 are amended to read as follows:
1-62 Sec. 16.053. REGIONAL WATER PLANS. (a) The regional water
1-63 planning group in each regional water planning area shall prepare a
1-64 regional water plan, using an existing state water plan identified
2-1 in Section 16.051 as a guide, if one is present, that provides for
2-2 the orderly development, management, and conservation of water
2-3 resources and preparation for and response to drought conditions in
2-4 order that sufficient water will be available at a reasonable cost
2-5 to ensure public health, safety, and welfare; further economic
2-6 development; and protect the agricultural and natural resources of
2-7 that particular region.
2-8 (b) No later than September 1, 1998, the board shall
2-9 designate the areas for which regional water plans shall be
2-10 developed, taking into consideration such factors as river basin
2-11 and aquifer delineations, water utility development patterns,
2-12 socioeconomic characteristics, existing regional water planning
2-13 areas, political subdivision boundaries, public comment, and other
2-14 factors the board deems relevant. The board shall review and
2-15 update the designations as necessary but at least every five years.
2-16 (c) No later than 60 days after the designation of the
2-17 regions under Subsection (b) of this section, the board shall
2-18 designate representatives within each regional water planning area
2-19 to serve as the initial coordinating body for planning. The
2-20 initial coordinating body shall then designate additional
2-21 representatives to serve on the regional water planning group,
2-22 ensuring adequate representation from the interests comprising that
2-23 region, including but not limited to the public, counties,
2-24 municipalities, industries, agricultural interests, environmental
2-25 interests, small businesses, electric generating utilities, river
2-26 authorities, water districts, and water utilities.
2-27 (d) The board shall provide guidelines for the consideration
2-28 of existing regional planning efforts by regional water planning
2-29 groups. The board shall provide guidelines for the format in which
2-30 information shall be presented in the regional water plans.
2-31 Nothing in the initial planning effort shall prevent development of
2-32 a management plan or project where local or regional needs require
2-33 action prior to completion of the initial regional water plan under
2-34 this section.
2-35 (e) Each regional water planning group shall submit to the
2-36 board a regional water plan that:
2-37 (1) is consistent with the guidance principles for the
2-38 state water plan adopted by the board under Section 16.051(d) of
2-39 this code;
2-40 (2) provides information based on data provided or
2-41 approved by the board in a format consistent with the guidelines
2-42 provided by the board under Subsection (d) of this section;
2-43 (3) has specific provisions for water management
2-44 strategies to be used: during a drought of record; when flows are
2-45 at 75 percent of normal; and when flows are at 50 percent of
2-46 normal; and
2-47 (4) includes but is not limited to consideration of
2-48 the following:
2-49 (A) any existing water or drought planning
2-50 efforts addressing all or a portion of the region;
2-51 (B) certified groundwater conservation district
2-52 management plans;
2-53 (C) all potentially feasible water management
2-54 strategies, including but not limited to improved conservation and
2-55 management of existing water supplies, acquisition of available
2-56 existing water supplies, and development of new water supplies;
2-57 (D) protection of existing water rights in the
2-58 region and modes and procedures for the equitable adjustment of
2-59 water rights affected by the plan;
2-60 (E) opportunities for and the benefits of
2-61 developing regional water supply facilities or providing regional
2-62 management of water supply facilities;
2-63 (F) appropriate provision for environmental
2-64 water needs and for the effect of upstream development on the bays,
2-65 estuaries, and arms of the Gulf of Mexico and the effect of plans
2-66 on navigation;
2-67 (G) provisions in Section 11.085(h)(1) of this
2-68 code if interbasin transfers are contemplated; and
2-69 (H) voluntary transfer of water within the
3-1 region using, but not limited to, regional water banks, sales,
3-2 leases, options, subordination agreements, and financing
3-3 agreements.
3-4 (f) No later than September 1, 1998, the board shall adopt
3-5 rules:
3-6 (1) to provide for the procedures for adoption of
3-7 regional water plans by regional water planning groups and for
3-8 approval of regional water plans by the board; and
3-9 (2) to govern procedures to be followed in carrying
3-10 out the responsibilities of this section.
3-11 (g) The board shall provide technical and financial
3-12 assistance to the regional water planning groups in the development
3-13 of their plans. The board shall simplify, as much as possible,
3-14 planning requirements in regions with abundant water resources.
3-15 The board, if requested, may facilitate resolution of conflicts
3-16 within regions.
3-17 (h)(1) After the regional water plan is initially prepared,
3-18 the regional water planning group shall, after notice, hold at
3-19 least one public hearing at some central location within the
3-20 regional water planning area.
3-21 (2) After the regional water plan is initially
3-22 prepared, the regional water planning group shall submit a copy of
3-23 the plan to the board. The board shall submit comments on the
3-24 regional water plan as to whether the plan meets the requirements
3-25 of Subsection (e) of this section.
3-26 (3) If no interregional conflicts exist, the regional
3-27 water planning group shall consider all public and board comments;
3-28 prepare, revise, and adopt the final plan; and submit the adopted
3-29 plan to the board for approval and inclusion in the state water
3-30 plan.
3-31 (4) If an interregional conflict exists, the board
3-32 shall facilitate coordination between the involved regions to
3-33 resolve the conflict. If conflict remains, the board shall resolve
3-34 the conflict. On resolution of the conflict, the involved regional
3-35 water planning groups shall prepare revisions to their respective
3-36 plans and hold, after notice, at least one public hearing at some
3-37 central location within their respective regional water planning
3-38 areas. The regional water planning groups shall consider all
3-39 public and board comments; prepare, revise, and adopt their
3-40 respective plans; and submit their plans to the board for approval
3-41 and inclusion in the state water plan.
3-42 (5) The board may approve a regional water plan only
3-43 after it has determined that all interregional conflicts involving
3-44 that regional water planning area have been resolved.
3-45 (i) The regional water planning groups shall submit their
3-46 adopted regional water plans to the board by September 1, 2000, for
3-47 approval and inclusion in the state water plan. In conjunction
3-48 with the submission of regional water plans, each planning group
3-49 should make legislative recommendations, if any, to facilitate more
3-50 voluntary water transfers in the region. Subsequent regional water
3-51 plans shall be submitted every five years thereafter. Public
3-52 participation for revised regional plans shall follow the
3-53 procedures under Subsection (h) of this section.
3-54 (j) The board may provide financial assistance to political
3-55 subdivisions under Subchapters E and F of this chapter and
3-56 Subchapters C, D, E, F, and J, Chapter 15, and Subchapters D, I, K,
3-57 and L, Chapter 17 of this code for water projects only if the board
3-58 determines that the needs to be addressed by the project will be
3-59 addressed in a manner consistent with an approved regional water
3-60 plan for the area in which the facility is to be located, unless
3-61 the board determines that conditions warrant waiver of this
3-62 requirement. [HEARING ON PRELIMINARY PLAN. (a) After the
3-63 executive administrator completes his preliminary planning of the
3-64 water resources development within a river basin, he shall hold a
3-65 public hearing, after notice, at some central location within the
3-66 river basin. If the proposed plan involves the transfer of water
3-67 from one basin to another, the hearing shall be held at some
3-68 location convenient to the areas affected.]
3-69 [(b) The executive administrator shall present the proposed
4-1 plan of development and hear evidence for and against the plan.]
4-2 [(c) After the hearing, the executive administrator shall
4-3 consider the effect the plan will have on the present and future
4-4 development, economy, general welfare, and water requirements of
4-5 the river basin or the areas affected.]
4-6 Sec. 16.054. OTHER WATER PLANNING. (a) It is the policy of
4-7 the state that water resource management, water conservation, and
4-8 drought planning should occur on an ongoing basis. The board,
4-9 commission, and Parks and Wildlife Department shall make available
4-10 where appropriate technical and financial assistance for such
4-11 planning.
4-12 (b) When preparing individual water plans that address
4-13 drought or the development, management, or conservation of water
4-14 resources from the holders of existing permits, certified filings,
4-15 or certificates of adjudication, the water suppliers, groundwater
4-16 districts, special districts, irrigation districts, and other water
4-17 users should ensure that the plan is consistent with the applicable
4-18 approved regional water plan for their region. [HEARING ON
4-19 COMPLETED STATE WATER PLAN. When the executive administrator has
4-20 prepared and examined the completed preliminary plan, the board
4-21 shall hold a public hearing on the plan to determine whether or not
4-22 it gives adequate consideration to the protection of existing water
4-23 rights in this state and whether or not it takes into account modes
4-24 and procedures for the equitable adjustment of water rights
4-25 affected by the plan. After the hearing, the board may formally
4-26 adopt the state water plan. A majority vote is necessary for
4-27 adoption.]
4-28 Sec. 16.055. DROUGHT RESPONSE PLAN. (a) The Division of
4-29 Emergency Management of the Office of the Governor shall be
4-30 responsible for coordinating the drought response component of the
4-31 state water plan.
4-32 (b) The drought response and monitoring committee is created
4-33 and shall meet as necessary to carry out the provisions of this
4-34 section. The committee is composed of one representative from each
4-35 of the following entities, appointed by the administrative head of
4-36 that entity:
4-37 (1) the division of emergency management in the office
4-38 of the governor;
4-39 (2) the board;
4-40 (3) the commission;
4-41 (4) the Parks and Wildlife Department;
4-42 (5) the Department of Agriculture; and
4-43 (6) the Texas Agricultural Extension Service.
4-44 (c) The governor may designate any other person or a
4-45 representative of any other entity to serve on the committee.
4-46 (d) The representative of the division of emergency
4-47 management shall serve as chair of the committee.
4-48 (e) The committee shall be responsible for:
4-49 (1) the assessment and public reporting of drought
4-50 monitoring and water supply conditions;
4-51 (2) advising the governor on significant drought
4-52 conditions;
4-53 (3) recommending specific provisions for a defined
4-54 state response to drought-related disasters for inclusion in the
4-55 state emergency management plan and the state water plan;
4-56 (4) advising the regional planning groups on
4-57 drought-related issues in the regional water plans; and
4-58 (5) ensuring effective coordination among state,
4-59 local, and federal agencies in drought-response planning.
4-60 (f) In performing its duties under this section, the drought
4-61 response and monitoring committee shall consider the following
4-62 factors when determining whether a drought exists for the purposes
4-63 of this section:
4-64 (1) meteorological conditions and forecasts;
4-65 (2) hydrological conditions and forecasts;
4-66 (3) water use and demand forecasts;
4-67 (4) water supply conditions and forecasts;
4-68 (5) the potential impacts of the water shortage
4-69 on: the public health, safety, and welfare; economic development;
5-1 and agricultural and natural resources; and
5-2 (6) other factors deemed appropriate by the committee.
5-3 [EFFECT OF PLAN. (a) The state water plan, as formally adopted by
5-4 the board, shall be a flexible guide to state policy for the
5-5 development of water resources in this state.]
5-6 [(b) The commission shall take the plan into consideration
5-7 in matters coming before it but is not bound by the plan.]
5-8 [(c) Nothing in the state water plan or any amendment or
5-9 modification of the plan affects any vested right existing before
5-10 August 30, 1965.]
5-11 Sec. 16.056. [AMENDMENT OF PLAN. (a) The board shall
5-12 review the plan biennially to consider any amendment or
5-13 modification that may be needed because of changed conditions.]
5-14 [(b) The board shall amend or modify the plan as experience
5-15 and changed conditions require after holding a public hearing on
5-16 any amendment or modification in the manner and for the purposes
5-17 provided by Section 16.054 of this code.]
5-18 [(c) Any amendment or modification adopted by the board
5-19 becomes a part of the plan.]
5-20 [Sec. 16.057.] FEDERAL ASSISTANCE IN FINANCING REGIONAL
5-21 WATER PLANS [PLAN]. The executive administrator may take all
5-22 necessary action to qualify for federal assistance in financing the
5-23 development and improvement of the regional water plans [plan].
5-24 SECTION 1.03. Subchapter D, Chapter 11, Water Code, is
5-25 amended by amending Section 11.1271 and adding Section 11.1272 to
5-26 read as follows:
5-27 Sec. 11.1271. ADDITIONAL REQUIREMENTS: WATER CONSERVATION
5-28 PLANS. (a) The commission shall [may] require the formulation and
5-29 submission of a water conservation plan and the adoption of
5-30 reasonable water conservation measures, as defined by Subdivision
5-31 (8)(B), Section 11.002, of this code.
5-32 (b) The commission shall require the holder of an existing
5-33 permit, certified filing, or certificate of adjudication for the
5-34 appropriation of surface water in the amount of 1,000 acre-feet a
5-35 year or more to develop, submit, and implement a water conservation
5-36 plan, consistent with the appropriate regional water plan, that
5-37 adopts reasonable water conservation measures as defined by
5-38 Subdivision (8)(B), Section 11.002, of this code. The requirement
5-39 for a water conservation plan under this section shall not result
5-40 in the need for an amendment to an existing permit, certified
5-41 filing, or certificate of adjudication.
5-42 (c) The commission shall adopt rules establishing criteria
5-43 and deadlines for submission of water conservation plans.
5-44 Sec. 11.1272. ADDITIONAL REQUIREMENT: DROUGHT CONTINGENCY
5-45 PLANS FOR CERTAIN APPLICANTS AND WATER RIGHT HOLDERS. The
5-46 commission shall by rule require wholesale and retail public water
5-47 suppliers and irrigation districts to develop drought contingency
5-48 plans consistent with the appropriate approved regional water plan
5-49 to be implemented during periods of water shortages and drought.
5-50 SECTION 1.04. Section 15.401, Water Code, is amended to read
5-51 as follows:
5-52 Sec. 15.401. PROGRAM CREATION. The research and planning
5-53 program is created to provide money for research into and planning
5-54 of the proper conservation, management, and development of the
5-55 state's water resources, for regional planning by political
5-56 subdivisions, for facility engineering in economically distressed
5-57 areas, and for flood control planning by political subdivisions.
5-58 The program may also provide money for research and planning by
5-59 Texas political subdivisions related to the proper conservation,
5-60 management, and development of water resources of areas outside
5-61 Texas if such research or planning will result in water being
5-62 available for use in or for the benefit of Texas or will maintain
5-63 and enhance the quality of water in Texas.
5-64 SECTION 1.05. Subsection (a), Section 15.404, Water Code, is
5-65 amended to read as follows:
5-66 (a) The board may enter into a contract with any person for
5-67 research into any matter relating to the conservation and
5-68 development of the state's water resources or for research by Texas
5-69 political subdivisions related to the proper conservation and
6-1 development of water resources of areas outside Texas if such
6-2 research will result in water being available for use in or for the
6-3 benefit of Texas or will help maintain and enhance the quality of
6-4 water in Texas.
6-5 SECTION 1.06. Subsection (f), Section 15.406, Water Code, is
6-6 amended to read as follows:
6-7 (f) The board shall adopt rules establishing criteria of
6-8 eligibility for regional facility planning money that considers:
6-9 (1) the relative need of the political subdivision for
6-10 the money;
6-11 (2) the legal authority of the political subdivision
6-12 to plan, develop, and operate regional facilities; [and]
6-13 (3) the effect of regional facility planning by the
6-14 political subdivision on overall regional facility planning,
6-15 development, and operation in the state and within the area in
6-16 which the political subdivision is located; and
6-17 (4) the degree to which the regional facility planning
6-18 by the political subdivision is consistent with an approved
6-19 regional water plan for the area in which the political subdivision
6-20 is located.
6-21 SECTION 1.07. Subchapter F, Chapter 15, Water Code, is
6-22 amended by adding Section 15.4061 to read as follows:
6-23 Sec. 15.4061. FUNDING FOR REGIONAL WATER PLANS. (a) The
6-24 board may enter into contracts with political subdivisions
6-25 designated as representatives of a regional water planning group
6-26 under Section 16.053(c) of this code to pay from the research and
6-27 planning fund all or part of the cost of developing or revising
6-28 regional water plans as defined in Section 16.053 of this code.
6-29 (b) A political subdivision may submit, either individually
6-30 or jointly with other political subdivisions, a written application
6-31 to the board for the purpose of funding regional water planning
6-32 from the research and planning fund.
6-33 (c) The application shall be in the manner and form required
6-34 by board rules and include:
6-35 (1) the name of the political subdivision or political
6-36 subdivisions;
6-37 (2) a citation to the laws under which the political
6-38 subdivision was created and is operating, including specific
6-39 citation of all laws providing authority to develop and implement a
6-40 regional water plan;
6-41 (3) the amount requested from the board for regional
6-42 water planning; and
6-43 (4) any other relevant information required by the
6-44 board in its rules or specifically requested by the board.
6-45 (d) After notice and hearing, the board may award the
6-46 applicant all or part of the requested funds that the board
6-47 considers necessary for the political subdivision to carry out
6-48 regional water planning.
6-49 (e) If the board grants an application under this section
6-50 and awards funds for regional water planning, the board shall enter
6-51 into a contract with the political subdivision or political
6-52 subdivisions that includes:
6-53 (1) a detailed statement of the purpose for which the
6-54 money is to be used;
6-55 (2) the total amount of money to be paid by the board
6-56 from the research and planning fund under the contract; and
6-57 (3) any other terms and conditions required by the
6-58 board's rules or agreed to by the contracting parties.
6-59 (f) The board shall adopt rules establishing criteria for
6-60 eligibility for regional water planning money that include:
6-61 (1) the relative need of the political subdivision for
6-62 the money;
6-63 (2) the legal authority of the political subdivision
6-64 to develop and implement a regional water plan; and
6-65 (3) the degree to which regional water planning by the
6-66 political subdivision or political subdivisions will address the
6-67 water supply needs in the regional water planning area.
6-68 (g) The board shall require that regional water plans
6-69 developed or revised under contracts entered into under this
7-1 section be made available to the commission and the Parks and
7-2 Wildlife Department.
7-3 SECTION 1.08. The state water plan in effect on the
7-4 effective date of this Act shall remain in effect until a new state
7-5 water plan is adopted pursuant to Subsection (a), Section 16.051,
7-6 Water Code, as amended by Section 1.01 of this Act.
7-7 ARTICLE 2. WATER MANAGEMENT, MARKETING, AND TRANSFERS
7-8 SECTION 2.01. Section 791.026, Government Code, is amended
7-9 to read as follows:
7-10 Sec. 791.026. CONTRACTS FOR WATER SUPPLY AND WASTEWATER
7-11 TREATMENT FACILITIES. (a) A municipality, district, or river
7-12 authority of this state may contract with another municipality,
7-13 district, or river authority of this state to obtain or provide
7-14 part or all of:
7-15 (1) water supply or wastewater treatment facilities;
7-16 or
7-17 (2) a lease or operation of water supply facilities or
7-18 wastewater treatment facilities.
7-19 (b) The contract may provide that the municipality,
7-20 district, or river authority obtaining one of the services may not
7-21 obtain those services from a source other than a contracting party,
7-22 except as provided by the contract.
7-23 (c) If a contract includes a term described by Subsection
7-24 (b), payments made under the contract are the paying party's
7-25 operating expenses for its water supply system, wastewater
7-26 treatment facilities, or both.
7-27 (d) The contract may:
7-28 (1) contain terms and extend for any period on which
7-29 the parties agree; [and]
7-30 (2) require the purchaser to develop alternative or
7-31 replacement supplies prior to the expiration date of the contract
7-32 and may provide for enforcement of such terms by court order; and
7-33 (3) provide that it will continue in effect until
7-34 bonds specified by the contract and any refunding bonds issued to
7-35 pay those bonds are paid.
7-36 (e) Where a contract sets forth explicit expiration
7-37 provisions, no continuation of the service obligation will be
7-38 implied.
7-39 (f) Tax revenue may not be pledged to the payment of amounts
7-40 agreed to be paid under the contract.
7-41 (g) [(f)] The powers granted by this section prevail over a
7-42 limitation contained in another law.
7-43 SECTION 2.02. Section 11.002, Water Code, is amended by
7-44 amending Subdivision (4) and adding Subdivisions (7), (9), and (10)
7-45 to read as follows:
7-46 (4) "Beneficial use" means use of the amount of water
7-47 which is economically necessary for a purpose authorized by this
7-48 chapter, when reasonable intelligence and reasonable diligence are
7-49 used in applying the water to that purpose and shall include
7-50 conserved water.
7-51 (7) "Livestock" means bovine, caprine, equine, ovine,
7-52 porcine, ratite, or ruminant animals, poultry, domestic rabbits,
7-53 domesticated game birds, or other animals, whether confined or free
7-54 ranging, raised for human consumption, profit, use, or pleasure.
7-55 The term includes exotic livestock as defined in Section 161.001,
7-56 Agriculture Code.
7-57 (9) "Conserved water" means that amount of water saved
7-58 by a holder of an existing permit, certified filing, or certificate
7-59 of adjudication through practices, techniques, and technologies
7-60 that would otherwise be irretrievably lost to all consumptive
7-61 beneficial uses arising from storage, transportation, distribution,
7-62 or application.
7-63 (10) "Surplus water" means water in excess of the
7-64 initial or continued beneficial use of the appropriator.
7-65 SECTION 2.03. Subsection (e), Section 11.023, Water Code, is
7-66 amended to read as follows:
7-67 (e) The amount of water appropriated for each purpose
7-68 mentioned in this section shall be specifically appropriated for
7-69 that purpose, subject to the preferences prescribed in Section
8-1 11.024 of this code. The commission may authorize appropriation of
8-2 a single amount or volume of water for more than one purpose of
8-3 use. In the event that a single amount or volume of water is
8-4 appropriated for more than one purpose of use, the total amount of
8-5 water actually diverted for all of the authorized purposes may not
8-6 exceed the total amount of water appropriated.
8-7 SECTION 2.04. Section 11.036, Water Code, is amended to read
8-8 as follows:
8-9 Sec. 11.036. CONSERVED OR STORED WATER: SUPPLY CONTRACT.
8-10 (a) A person, association of persons, corporation, or water
8-11 improvement or irrigation district having in possession and control
8-12 any storm water, floodwater, or rainwater that is conserved or
8-13 stored as authorized by this chapter may contract to supply the
8-14 water to any person, association of persons, corporation, or water
8-15 improvement or irrigation district having the right to acquire use
8-16 of the water.
8-17 (b) The price and terms of the contract shall be just and
8-18 reasonable and without discrimination, and the contract is subject
8-19 to the same revision and control as provided in this code for other
8-20 water rates and charges. If the contract sets forth explicit
8-21 expiration provisions, no continuation of the service obligation
8-22 will be implied.
8-23 (c) The terms of a contract may expressly provide that the
8-24 person using the stored or conserved water is required to develop
8-25 alternative or replacement supplies prior to the expiration of the
8-26 contract and may further provide for enforcement of such terms by
8-27 court order.
8-28 (d) If any person uses the stored or conserved water without
8-29 first entering into a contract with the party that conserved or
8-30 stored it, the user shall pay for the use at a rate determined by
8-31 the commission to be just and reasonable, subject to court review
8-32 as in other cases.
8-33 SECTION 2.05. Section 11.042, Water Code, is amended to read
8-34 as follows:
8-35 Sec. 11.042. DELIVERING WATER DOWN BANKS AND BEDS.
8-36 (a) Under rules prescribed by the commission, a person,
8-37 association of persons, corporation, or water control and
8-38 improvement or irrigation district supplying stored or conserved
8-39 water under contract as provided in this chapter may use the bank
8-40 and bed of any flowing natural stream in the state to convey the
8-41 water from the place of storage to the place of use or to the
8-42 diversion point [plant] of the appropriator. [The commission shall
8-43 prescribe rules for this purpose.]
8-44 (b) Except as provided by Subsection (a) of this section, a
8-45 person who wishes to convey and subsequently divert water in a
8-46 watercourse or stream must obtain the prior approval of the
8-47 commission through a bed and banks authorization. The
8-48 authorization shall allow to be diverted only the amount of water
8-49 put into a watercourse or stream, less carriage losses and subject
8-50 to any special conditions that may address the impact of the
8-51 discharge, conveyance, and diversion on existing permits, certified
8-52 filings, or certificates of adjudication, instream uses, and
8-53 freshwater inflows to bays and estuaries. Water discharged into a
8-54 watercourse or stream under this chapter shall not cause a
8-55 degradation of water quality to the extent that the stream
8-56 segment's classification would be lowered. Authorizations under
8-57 this section and water quality authorizations may be approved in a
8-58 consolidated permit proceeding.
8-59 (c) Nothing in this section shall be construed to affect an
8-60 existing project for which water rights and reuse authorizations
8-61 have been granted by the commission before September 1, 1997.
8-62 SECTION 2.06. Section 11.046, Water Code, is amended to read
8-63 as follows:
8-64 Sec. 11.046. RETURN SURPLUS [UNUSED] WATER. (a) A person
8-65 who takes or diverts water from a watercourse or [running] stream
8-66 for the purposes authorized by this code shall conduct surplus
8-67 water back to the watercourse or stream from which it was taken if
8-68 the water can be returned by gravity flow and it is reasonably
8-69 practicable to do so.
9-1 (b) In granting an application for a water right, the
9-2 commission may include conditions in the water right providing for
9-3 the return of surplus water, in a specific amount or percentage of
9-4 water diverted, and the return point on a watercourse or stream as
9-5 necessary to protect senior downstream permits, certified filings,
9-6 or certificates of adjudication or to provide flows for instream
9-7 uses or bays and estuaries.
9-8 (c) Except as specifically provided otherwise in the water
9-9 right, water appropriated under a permit, certified filing, or
9-10 certificate of adjudication may, prior to its release into a
9-11 watercourse or stream, be beneficially used and reused by the
9-12 holder of a permit, certified filing, or certificate of
9-13 adjudication for the purposes and locations of use provided in the
9-14 permit, certified filing, or certificate of adjudication. Once
9-15 water has been diverted under a permit, certified filing, or
9-16 certificate of adjudication and then returned to a watercourse or
9-17 stream, however, it is considered surplus water and therefore
9-18 subject to reservation for instream uses or beneficial inflows or
9-19 to appropriation by others unless expressly provided otherwise in
9-20 the permit, certified filing, or certificate of adjudication.
9-21 (d) Water appropriated under a permit, certified filing, or
9-22 certificate of adjudication which is recirculated within a
9-23 reservoir for cooling purposes shall not be considered to be
9-24 surplus for purposes of this chapter.
9-25 SECTION 2.07. Section 11.085, Water Code, is amended to read
9-26 as follows:
9-27 Sec. 11.085. INTERBASIN [INTERWATERSHED] TRANSFERS. (a) No
9-28 person may take or divert any state [of the] water from a river
9-29 basin [of the ordinary flow, underflow, or storm flow of any
9-30 stream, watercourse, or watershed] in this state and transfer such
9-31 water to [into] any other river basin [natural stream, watercourse,
9-32 or watershed to the prejudice of any person or property situated
9-33 within the watershed from which the water is proposed to be taken
9-34 or diverted.]
9-35 [(b) No person may transfer water from one watershed to
9-36 another] without first applying for and receiving a water right or
9-37 an amendment to a permit, certified filing, or certificate of
9-38 adjudication [permit] from the commission authorizing the transfer
9-39 [to do so. Before issuing such a permit, the commission shall hold
9-40 a hearing to determine the rights that might be affected by the
9-41 transfer. The commission shall give notice and hold the hearing in
9-42 the manner prescribed by its procedural rules].
9-43 (b) Prior to taking action on an application for an
9-44 interbasin transfer, the commission shall conduct at least one
9-45 public meeting to receive comments in both the basin of origin of
9-46 the water proposed for transfer and the basin receiving water from
9-47 the proposed transfer. Notice shall be provided pursuant to
9-48 Subsection (e) of this section. Any person may present relevant
9-49 information and data at the meeting on the criteria which the
9-50 commission is to consider related to the interbasin transfer.
9-51 (c) In addition to the public meetings required by
9-52 Subsection (b) of this section, if the application is contested in
9-53 a manner requiring an evidentiary hearing under the rules of the
9-54 commission, the commission shall give notice and hold an
9-55 evidentiary hearing, in accordance with commission rules and
9-56 applicable state law.
9-57 (d) Notice of an application for an interbasin transfer
9-58 shall be mailed to the following:
9-59 (1) all holders of permits, certified filings, or
9-60 certificates of adjudication located in whole or in part in the
9-61 basin of origin;
9-62 (2) each county judge of a county located in whole or
9-63 in part in the basin of origin;
9-64 (3) each mayor of a city with a population of 1,000 or
9-65 more located in whole or in part in the basin of origin; and
9-66 (4) all groundwater conservation districts located in
9-67 whole or in part in the basin of origin.
9-68 (e) The applicant shall cause the notice of application for
9-69 an interbasin transfer to be published once a week for two
10-1 consecutive weeks in one or more newspapers having general
10-2 circulation in each county located in whole or in part in the basin
10-3 of origin. The published notice may not be smaller than 96.8
10-4 square centimeters or 15 square inches with the shortest dimension
10-5 at least 7.6 centimeters or three inches. The notice of
10-6 application and public meetings shall be combined in the mailed and
10-7 published notices.
10-8 (f) The applicant shall pay the cost of notice required to
10-9 be provided under this section. The commission by rule may
10-10 establish procedures for payment of those costs.
10-11 (g) In addition to other requirements of this code relating
10-12 to the review of and action on an application for a new water right
10-13 or amended permit, certified filing, or certificate of
10-14 adjudication, the commission shall:
10-15 (1) request review and comment on an application for
10-16 an interbasin transfer from each county judge of a county located
10-17 in whole or in part in the basin of origin. A county judge should
10-18 make comment only after seeking advice from the county
10-19 commissioners court; and
10-20 (2) give consideration to the comments of each county
10-21 judge of a county located in whole or in part in the basin of
10-22 origin prior to taking action on an application for an interbasin
10-23 transfer.
10-24 (h) In addition to other requirements of this code relating
10-25 to the review of and action on an application for a new water right
10-26 or amended permit, certified filing, or certificate of
10-27 adjudication, the commission shall weigh the effects of the
10-28 proposed transfer by considering:
10-29 (1) the need for the water in the basin of origin and
10-30 in the proposed receiving basin based on the period for which the
10-31 water supply is requested, but not to exceed 50 years;
10-32 (2) factors identified in the applicable approved
10-33 regional water plans which address the following:
10-34 (A) the availability of feasible and practicable
10-35 alternative supplies in the receiving basin to the water proposed
10-36 for transfer;
10-37 (B) the amount and purposes of use in the
10-38 receiving basin for which water is needed;
10-39 (C) proposed methods and efforts by the
10-40 receiving basin to avoid waste and implement water conservation and
10-41 drought contingency measures;
10-42 (D) proposed methods and efforts by the
10-43 receiving basin to put the water proposed for transfer to
10-44 beneficial use;
10-45 (E) the projected economic impact that is
10-46 reasonably expected to occur in each basin as a result of the
10-47 transfer; and
10-48 (F) the projected impacts of the proposed
10-49 transfer that are reasonably expected to occur on existing instream
10-50 uses, water quality, aquatic and riparian habitat, and bays and
10-51 estuaries that must be assessed under Sections 11.147, 11.150, and
10-52 11.152 of this code in each basin. If the water sought to be
10-53 transferred is currently authorized to be used under an existing
10-54 permit, certified filing, or certificate of adjudication, such
10-55 impacts shall only be considered in relation to that portion of the
10-56 permit, certified filing, or certificate of adjudication proposed
10-57 for transfer and shall be based on historical uses of the permit,
10-58 certified filing, or certificate of adjudication for which
10-59 amendment is sought;
10-60 (3) proposed mitigation or compensation, if any, to
10-61 the basin of origin by the applicant; and
10-62 (4) the continued need to use the water for the
10-63 purposes authorized under the existing permit, certified filing, or
10-64 certificate of adjudication, if an amendment to an existing water
10-65 right is sought.
10-66 (i) The commission may grant, in whole or in part, an
10-67 application for an interbasin transfer only to the extent that the
10-68 detriments to the basin of origin during the proposed transfer
10-69 period are less than the benefits to the receiving basin during the
11-1 proposed transfer period.
11-2 (j) This section does not apply to:
11-3 (1) a proposed transfer of less than 3,000 acre-feet
11-4 of water per annum from the same permit, certified filing, or
11-5 certificate of adjudication; or
11-6 (2) a request for an emergency transfer of water; or
11-7 (3) a proposed transfer from a basin to its adjoining
11-8 coastal basin.
11-9 (k) If the transfer of water is based on a contractual sale
11-10 of water, the new water right or amended permit, certified filing,
11-11 or certificate of adjudication authorizing the transfer shall
11-12 contain a condition for a term or period not greater than the
11-13 contract term.
11-14 (l) The parties to a contract for an interbasin transfer may
11-15 include provisions for compensation and mitigation. If the party
11-16 from the basin of origin is a government entity, each county judge
11-17 of a county located in whole or in part in the basin of origin may
11-18 provide input on the appropriate compensation and mitigation for
11-19 the interbasin transfer.
11-20 (m) For the purposes of this section, a basin is designated
11-21 as provided in accordance with Section 16.051 of this code. A
11-22 basin may not be redesignated in order to allow a transfer or
11-23 diversion of water otherwise in violation of this section.
11-24 (n) [(c)] A person who takes or diverts water in violation
11-25 of this section is guilty of a misdemeanor and upon conviction is
11-26 punishable by a fine of not [less than $100 nor] more than $10,000
11-27 [$500] or by confinement in the county jail for not more than six
11-28 months.
11-29 (o) [(d)] A person commits a separate offense each day he
11-30 continues to take or divert water in violation of this section.
11-31 SECTION 2.08. Subsection (a), Section 11.124, Water Code, is
11-32 amended to read as follows:
11-33 (a) An application to appropriate unappropriated state water
11-34 must:
11-35 (1) be in writing and sworn to;
11-36 (2) contain the name and post-office address of the
11-37 applicant;
11-38 (3) identify the source of water supply;
11-39 (4) state the nature and purposes of the proposed use
11-40 or uses and the amount of water to be used for each purpose;
11-41 (5) state the location and describe the proposed
11-42 facilities;
11-43 (6) state the time within which the proposed
11-44 construction is to begin; and
11-45 (7) state the time required for the application of
11-46 water to the proposed use or uses.
11-47 SECTION 2.09. Subsection (b), Section 11.135, Water Code, is
11-48 amended to read as follows:
11-49 (b) The permit shall be in writing and attested by the seal
11-50 of the commission, and it shall contain substantially the following
11-51 information:
11-52 (1) the name of the person to whom the permit is
11-53 issued;
11-54 (2) the date the permit is issued;
11-55 (3) the date the original application was filed;
11-56 (4) the use or purpose for which the appropriation is
11-57 to be made;
11-58 (5) the amount or volume of water authorized to be
11-59 appropriated for each purpose; if use of the appropriated water is
11-60 authorized for multiple purposes, the permit shall contain a
11-61 special condition limiting the total amount of water that may
11-62 actually be diverted for all of the purposes to the amount of water
11-63 appropriated;
11-64 (6) a general description of the source of supply from
11-65 which the appropriation is proposed to be made;
11-66 (7) the time within which construction or work must
11-67 begin and the time within which it must be completed; and
11-68 (8) any other information the commission prescribes.
11-69 SECTION 2.10. Subsection (a), Section 11.142, Water Code, is
12-1 amended to read as follows:
12-2 (a) Without obtaining a permit, a person may construct on
12-3 his own property a dam or reservoir with a normal conservation
12-4 storage capacity of [to impound or contain] not more than 200
12-5 acre-feet of water for domestic and livestock purposes.
12-6 SECTION 2.11. Sections 11.176 and 11.177, Water Code, are
12-7 amended to read as follows:
12-8 Sec. 11.176. HEARING. (a) Except as provided by Subsection
12-9 (b) of this section, the [The] commission shall hold a hearing and
12-10 shall give the holder of the permit, certified filing, or
12-11 certificate of adjudication and other interested persons an
12-12 opportunity to be heard and to present evidence on any matter
12-13 pertinent to the questions at issue.
12-14 (b) A hearing on the cancellation of a permit, certified
12-15 filing, or certificate of adjudication as provided by this chapter
12-16 is unnecessary if the right to such hearing is expressly waived by
12-17 the affected holder of a permit, certified filing, or certificate
12-18 of adjudication.
12-19 (c) A permit, certified filing, or certificate of
12-20 adjudication for a term does not vest in the holder of a permit,
12-21 certified filing, or certificate of adjudication any right to the
12-22 diversion, impoundment, or use of water for longer than the term of
12-23 the permit, certified filing, or certificate of adjudication and
12-24 shall expire and be cancelled in accordance with its terms without
12-25 further need for notice or hearing.
12-26 Sec. 11.177. COMMISSION FINDING; ACTION. (a) At the
12-27 conclusion of the hearing, the commission shall cancel the permit,
12-28 certified filing, or certificate of adjudication in whole or in
12-29 part to the extent that it finds that:
12-30 (1) the water or any portion of the water appropriated
12-31 under the permit, certified filing, or certificate of adjudication
12-32 has not been put to an authorized beneficial use during the 10-year
12-33 period; and
12-34 (2) the holder has not used reasonable diligence in
12-35 applying the water or the unused portion of the water to an
12-36 authorized beneficial use or is otherwise unjustified in the
12-37 nonuse[; and]
12-38 [(3) the holder has not been justified in the nonuse
12-39 or does not then have a bona fide intention of putting the water or
12-40 the unused portion of the water to an authorized beneficial use
12-41 within a reasonable time after the hearing].
12-42 (b) In determining what constitutes reasonable diligence or
12-43 a justified nonuse [and a reasonable time] as used in Subsection
12-44 (a)(2) [(a)(3)] of this section, the commission shall give
12-45 consideration to:
12-46 (1) whether sufficient water is available in the
12-47 source of supply to meet all or part of the appropriation during
12-48 the 10-year period of nonuse;
12-49 (2) whether the nonuse is justified by the holder's
12-50 participation in the federal Conservation Reserve Program or a
12-51 similar governmental program as provided by Section 11.173(b)(1) of
12-52 this code;
12-53 (3) whether the permit, certified filing, or
12-54 certificate of adjudication was obtained to meet demonstrated
12-55 long-term public water supply or electric generation needs as
12-56 evidenced by a water management plan developed by the holder and
12-57 consistent with projections of future water needs contained in the
12-58 state water plan;
12-59 (4) whether the permit, certified filing, or
12-60 certificate of adjudication was obtained as the result of the
12-61 construction of a reservoir funded, in whole or in part, by the
12-62 holder of the permit, certified filing, or certificate of
12-63 adjudication as part of the holder's long-term water planning;
12-64 (5) whether the existing or proposed authorized
12-65 purpose and place of use are consistent with an approved regional
12-66 water plan as provided by Section 16.053 of this code;
12-67 (6) whether the permit, certified filing, or
12-68 certificate of adjudication has been deposited into the Texas Water
12-69 Bank as provided by Sections 15.7031 and 15.704 of this code or
13-1 whether it can be shown that the water right or water available
13-2 under the right is currently being made available for purchase
13-3 through private marketing efforts; or
13-4 (7) whether the permit, certified filing, or
13-5 certificate of adjudication has been reserved to provide for
13-6 instream flows or bay and estuary inflows [the expenditures made or
13-7 obligations incurred by the holder in connection with the permit,
13-8 certified filing, or certificate of adjudication;]
13-9 [(2) the purpose to which the water is to be applied;]
13-10 [(3) the priority of the purpose;]
13-11 [(4) the amount of time usually necessary to put water
13-12 to a beneficial use for the same purpose when diligently developed;
13-13 and]
13-14 [(5) whether at all times during the 10-year period
13-15 there was rainfall adequate to enable the use of all or part of the
13-16 water authorized to be appropriated under the permit, certified
13-17 filing, or certificate of adjudication].
13-18 SECTION 2.12. Section 15.701, Water Code, is amended to read
13-19 as follows:
13-20 Sec. 15.701. Definitions. In this subchapter:
13-21 (1) "Deposit" means the placement of a water right or
13-22 the right to use water in the water bank for transfer.
13-23 (2) "Depositor" means a person who deposits or has on
13-24 deposit a water right in the water bank.
13-25 (3) "Person" includes but is not limited to any
13-26 individual, corporation, organization, government, or governmental
13-27 subdivision or agency, including the board, business trust, estate,
13-28 trust, partnership, association, and any other legal entity.
13-29 (4) "Transfer" means the conveyance of a water right
13-30 or the right to use water under a water right in any of the
13-31 following manners:
13-32 (A) the conveyance of legal title to a water
13-33 right; or
13-34 (B) a contract or option contract to allow use
13-35 of a water right.
13-36 (5) "Trust" means the Texas Water Trust.
13-37 (6) "Water bank" or "bank" means the Texas Water Bank.
13-38 (7) [(6)] "Water right" means a right acquired or
13-39 authorized under the laws of this state to impound, divert, or use
13-40 state water, underground water, or water from any source to the
13-41 extent authorized by law.
13-42 SECTION 2.13. Section 15.702, Water Code, is amended to read
13-43 as follows:
13-44 Sec. 15.702. Creation of Bank. The Texas Water Development
13-45 Board shall establish the Texas Water Bank. The board shall
13-46 administer the water bank to facilitate water transactions [the
13-47 transfer of water from all sources as necessary] to provide sources
13-48 of adequate water supplies for use within the State of Texas.
13-49 SECTION 2.14. Subsection (a), Section 15.703, Water Code, is
13-50 amended to read as follows:
13-51 (a) The board may take all actions necessary to operate the
13-52 water bank and to facilitate the transfer of water rights from the
13-53 water bank for future beneficial use including but not limited to:
13-54 (1) negotiating a sale price and terms acceptable to
13-55 the depositor and purchaser;
13-56 (2) maintaining a registry of water bank deposits and
13-57 those water users in need of additional supplies;
13-58 (3) informing water users in need of additional supply
13-59 of water rights available in the bank;
13-60 (4) encouraging water right holders to implement water
13-61 conservation practices and deposit the right to use the conserved
13-62 water into the bank;
13-63 (5) establishing requirements for deposit of a water
13-64 right into the water bank including minimum terms for deposit;
13-65 (6) purchasing, holding, and selling water rights in
13-66 its own name;
13-67 (7) establishing regional water banks; [and]
13-68 (8) acting as a clearinghouse for water marketing
13-69 information including water availability, pricing of water
14-1 transactions, environmental considerations, and potential buyers
14-2 and sellers of water rights;
14-3 (9) preparing and publishing a manual on structuring
14-4 water transactions;
14-5 (10) accepting and holding donations of water rights
14-6 to meet instream, water quality, fish and wildlife habitat, or bay
14-7 and estuary inflow needs; and
14-8 (11) other actions to facilitate water transactions
14-9 [transfers].
14-10 SECTION 2.15. Subchapter K, Chapter 15, Water Code, is
14-11 amended by adding Section 15.7031 to read as follows:
14-12 Sec. 15.7031. TEXAS WATER TRUST. (a) The Texas Water Trust
14-13 is established within the water bank to hold water rights dedicated
14-14 to environmental needs, including instream flows, water quality,
14-15 fish and wildlife habitat, or bay and estuary inflows.
14-16 (b) The board, in consultation with the Parks and Wildlife
14-17 Department and the commission, shall adopt rules governing the
14-18 process for holding and transferring water rights.
14-19 (c) The dedication of any water rights placed in trust must
14-20 be reviewed and approved by the commission, in consultation with
14-21 the board and the Parks and Wildlife Department.
14-22 (d) Water rights may be held in the trust for a term
14-23 specified by contractual agreement or in perpetuity.
14-24 SECTION 2.16. Section 15.704, Water Code, is amended by
14-25 amending Subsection (a) and adding Subsection (c) to read as
14-26 follows:
14-27 (a) A [Up to 50 percent of a] water right may be deposited
14-28 in the water bank for an initial term of up to 10 years, unless
14-29 otherwise held in the Texas Water Trust as established under
14-30 Section 15.7031, during which time the water right is exempt from
14-31 cancellation by the commission under the terms of Subchapter E of
14-32 Chapter 11 of this code. A water right is exempt from cancellation
14-33 under this subsection only once even if it has been transferred or
14-34 redeposited.
14-35 (c) A contract or option contract to allow use of a water
14-36 right under this subchapter:
14-37 (1) may include a requirement that the purchaser show
14-38 diligence in pursuing feasible and practicable alternative water
14-39 supplies; and
14-40 (2) does not vest any right in the purchaser beyond
14-41 the stated terms and conditions of the contract or option contract.
14-42 SECTION 2.17. (a) All permits approved by the Texas Natural
14-43 Resource Conservation Commission before the effective date of this
14-44 Act that allow the multiple use of the appropriation of a specific
14-45 amount of water and which are no longer subject to appeal are
14-46 validated in all respects as if they originally had been legally
14-47 authorized or accomplished.
14-48 (b) This article does not apply to an application for an
14-49 interbasin transfer filed and pending before March 2, 1997. Any
14-50 subsequent renewals of such applications shall be subject to the
14-51 provisions of this Act.
14-52 (c) Nothing in this Act shall affect the validity of any
14-53 interbasin transfer permitted or authorized before the effective
14-54 date of this Act.
14-55 ARTICLE 3. EMERGENCY AUTHORIZATIONS; ENFORCEMENT
14-56 SECTION 3.01. Subsection (a), Section 11.082, Water Code, is
14-57 amended to read as follows:
14-58 (a) A person who wilfully takes, diverts, or appropriates
14-59 state water without complying with the applicable requirements of
14-60 this chapter is also liable to a civil penalty of not more than
14-61 $10,000 [$1,000] for each day he continues the taking, diversion,
14-62 or appropriation.
14-63 SECTION 3.02. Subchapter C, Chapter 11, Water Code, is
14-64 amended by adding Sections 11.0841, 11.0842, and 11.0843 to read as
14-65 follows:
14-66 Sec. 11.0841. CIVIL REMEDY. (a) Nothing in this chapter
14-67 affects the right of any private corporation, individual, or
14-68 political subdivision that has a justiciable interest in pursuing
14-69 any available common-law remedy to enforce a right or to prevent or
15-1 seek redress or compensation for the violation of a right or
15-2 otherwise redress an injury.
15-3 (b) A district court may award the costs of litigation,
15-4 including reasonable attorney fees and expert costs, to any
15-5 political subdivision of the state, private corporation, or
15-6 individual that is a water right holder and that prevails in a suit
15-7 for injunctive relief to redress an unauthorized diversion,
15-8 impoundment, or use of surface water in violation of this chapter
15-9 or a rule adopted pursuant to this chapter.
15-10 Sec. 11.0842. ADMINISTRATIVE PENALTY. (a) If a person
15-11 violates this chapter, a rule or order adopted under this chapter
15-12 or Section 16.236 of this code, or a permit, certified filing, or
15-13 certificate of adjudication issued under this chapter, the
15-14 commission may assess an administrative penalty against that person
15-15 as provided by this section. This section and Section 12.052 of
15-16 this code are not applicable to any violation resulting from the
15-17 failure to obtain a permit for the construction of a dam or
15-18 reservoir for domestic and livestock purposes initiated prior to
15-19 March 2, 1997, unless modifications other than repairs are made to
15-20 the dam or reservoir after March 2, 1997.
15-21 (b) The penalty may be in an amount not to exceed $10,000
15-22 for each day the person is in violation of this chapter, the rule
15-23 or order adopted under this chapter or Section 16.236 of this code,
15-24 or the permit, certified filing, or certificate of adjudication
15-25 issued under this chapter. Each day a violation continues may be
15-26 considered a separate violation for purposes of penalty assessment.
15-27 (c) In determining the amount of the penalty, the commission
15-28 shall consider:
15-29 (1) the nature, circumstances, extent, duration, and
15-30 gravity of the prohibited acts, with special emphasis on the
15-31 impairment of an existing permit, certified filing, or certificate
15-32 of adjudication or the hazard or potential hazard created to the
15-33 health, safety, or welfare of the public;
15-34 (2) the impact of the violation on the instream uses,
15-35 water quality, fish and wildlife habitat, or beneficial freshwater
15-36 inflows to bays and estuaries;
15-37 (3) with respect to the alleged violator:
15-38 (A) the history and extent of previous
15-39 violations;
15-40 (B) the degree of culpability, including whether
15-41 the violation was attributable to mechanical or electrical failures
15-42 and whether the violation could have been reasonably anticipated
15-43 and avoided;
15-44 (C) demonstrated good faith, including actions
15-45 taken by the alleged violator to rectify the cause of the violation
15-46 and to compensate affected persons;
15-47 (D) any economic benefit gained through the
15-48 violation; and
15-49 (E) the amount necessary to deter future
15-50 violations; and
15-51 (4) any other matters that justice may require.
15-52 (d) If, after examination of a possible violation and the
15-53 facts surrounding that possible violation, the executive director
15-54 concludes that a violation has occurred, the executive director
15-55 shall issue a preliminary report stating the facts on which that
15-56 conclusion was based, recommending that an administrative penalty
15-57 under this section be imposed on the person charged, and
15-58 recommending the amount of the penalty. The executive director
15-59 shall base the recommended amount of the proposed penalty on the
15-60 factors provided by Subsection (c) of this section and shall
15-61 analyze each factor for the benefit of the commission.
15-62 (e) No later than the 10th day after the date on which the
15-63 report is issued, the executive director shall give written notice
15-64 of the report to the person charged with the violation. The notice
15-65 shall include a brief summary of the charges, a statement of the
15-66 amount of the penalty recommended, and a statement of the right of
15-67 the person charged to a hearing on the occurrence of the violation,
15-68 the amount of the penalty, or both the occurrence of the violation
15-69 and the amount of the penalty.
16-1 (f) No later than the 20th day after the date on which
16-2 notice is received, the person charged may either give to the
16-3 commission written consent to the executive director's report,
16-4 including the recommended penalty, or make a written request for a
16-5 hearing.
16-6 (g) If the person charged with the violation consents to the
16-7 penalty recommended by the executive director or fails to timely
16-8 respond to the notice, the commission by order shall either assess
16-9 the penalty or order a hearing to be held on the findings and
16-10 recommendations in the executive director's report. If the
16-11 commission assesses the penalty recommended by the report, the
16-12 commission shall give written notice of its decision to the person
16-13 charged.
16-14 (h) If the person charged requests or the commission orders
16-15 a hearing, the commission shall call a hearing and give notice of
16-16 the hearing. As a result of the hearing, the commission by order
16-17 either may find that a violation has occurred and may assess a
16-18 penalty, may find that a violation has occurred but that no penalty
16-19 should be assessed, or may find that no violation has occurred.
16-20 All proceedings under this subsection are subject to Chapter 2001,
16-21 Government Code. In making any penalty decision, the commission
16-22 shall analyze each of the factors provided by Subsection (c) of
16-23 this section.
16-24 (i) The commission shall give notice of its decision to the
16-25 person charged, and if the commission finds that a violation has
16-26 occurred and assesses an administrative penalty, the commission
16-27 shall give written notice to the person charged of its findings, of
16-28 the amount of the penalty, and of the person's right to judicial
16-29 review of the commission's order. If the commission is required to
16-30 give notice of a penalty under this subsection or Subsection (g) of
16-31 this section, the commission shall file notice of its decision in
16-32 the Texas Register not later than the 10th day after the date on
16-33 which the decision is adopted.
16-34 (j) Within the 30-day period immediately following the day
16-35 on which the commission's order is final, as provided by Subchapter
16-36 F, Chapter 2001, Government Code, the person charged with the
16-37 penalty shall:
16-38 (1) pay the penalty in full; or
16-39 (2) pay the amount of the penalty and file a petition
16-40 for judicial review contesting the occurrence of the violation, the
16-41 amount of the penalty, or both the occurrence of the violation and
16-42 the amount of the penalty; or
16-43 (3) without paying the amount of the penalty, file a
16-44 petition for judicial review contesting the occurrence of the
16-45 violation, the amount of the penalty, or both the occurrence of the
16-46 violation and the amount of the penalty.
16-47 (k) Within the 30-day period, a person who acts under
16-48 Subsection (j)(3) of this section may:
16-49 (1) stay enforcement of the penalty by:
16-50 (A) paying the amount of the penalty to the
16-51 court for placement in an escrow account; or
16-52 (B) giving to the court a supersedeas bond that
16-53 is approved by the court for the amount of the penalty and that is
16-54 effective until all judicial review of the commission's order is
16-55 final; or
16-56 (2) request the court to stay enforcement of the
16-57 penalty by:
16-58 (A) filing with the court a sworn affidavit of
16-59 the person stating that the person is financially unable to pay the
16-60 amount of the penalty and is financially unable to give the
16-61 supersedeas bond; and
16-62 (B) giving a copy of the affidavit to the
16-63 commission by certified mail.
16-64 (l) If the commission receives a copy of an affidavit under
16-65 Subsection (k)(2) of this section, it may file with the court
16-66 within five days after the date the copy is received a contest to
16-67 the affidavit. The court shall hold a hearing on the facts alleged
16-68 in the affidavit as soon as practicable and shall stay the
16-69 enforcement of the penalty on finding that the alleged facts are
17-1 true. The person who files an affidavit has the burden of proving
17-2 that the person is financially unable to pay the amount of the
17-3 penalty and to give a supersedeas bond.
17-4 (m) If the person does not pay the amount of the penalty and
17-5 the enforcement of the penalty is not stayed, the commission may
17-6 refer the matter to the attorney general for collection of the
17-7 amount of the penalty.
17-8 (n) Judicial review of the order or decision of the
17-9 commission assessing the penalty shall be under the substantial
17-10 evidence rule and shall be instituted by filing a petition with a
17-11 district court in Travis County, as provided by Subchapter G,
17-12 Chapter 2001, Government Code.
17-13 (o) A penalty collected under this section shall be
17-14 deposited in the state treasury to the credit of the general
17-15 revenue fund.
17-16 (p) Notwithstanding any other provision to the contrary, the
17-17 commission may compromise, modify, or remit, with or without
17-18 condition, any penalty imposed under this section.
17-19 (q) Payment of an administrative penalty under this section
17-20 shall be full and complete satisfaction of the violation for which
17-21 the administrative penalty is assessed and shall preclude any other
17-22 civil or criminal penalty for the same violation.
17-23 Sec. 11.0843. FIELD CITATION. (a) Upon witnessing a
17-24 violation of this chapter or a water right issued under this
17-25 chapter, a watermaster or the watermaster's deputy, as defined by
17-26 commission rule, may issue the alleged violator a field citation
17-27 alleging that a violation has occurred and providing the alleged
17-28 violator the option of either:
17-29 (1) without admitting to or denying the alleged
17-30 violation, paying an administrative penalty in accordance with the
17-31 predetermined penalty amount established under Subsection (b) of
17-32 this section and taking remedial action as provided in the
17-33 citation; or
17-34 (2) requesting a hearing on the alleged violation in
17-35 accordance with Section 11.0842 of this code.
17-36 (b) By rule the commission shall establish penalty amounts
17-37 corresponding to types of violations of this chapter or rules or
17-38 orders adopted or water rights issued under this chapter.
17-39 (c) A penalty collected under this section shall be
17-40 deposited in the state treasury to the credit of the general
17-41 revenue fund.
17-42 SECTION 3.03. Section 11.139, Water Code, is amended to read
17-43 as follows:
17-44 Sec. 11.139. EMERGENCY AUTHORIZATIONS [PERMITS].
17-45 (a) Except as provided by Section 11.148 of this code, the [The]
17-46 commission may grant an emergency permit, order, or amendment to an
17-47 existing permit, certified filing, or certificate of adjudication
17-48 after notice to the governor [for the diversion and use of water]
17-49 for an initial [a] period of not more than 120 [30] days if the
17-50 commission [it] finds that emergency conditions exist which present
17-51 an imminent threat to [threaten] the public health and[,] safety[,
17-52 and welfare] and which override the necessity to comply with
17-53 established statutory procedures and there are no feasible
17-54 practicable alternatives to the emergency authorization. Such
17-55 emergency action may be renewed once for not longer than 60 days.
17-56 (b) A person desiring to obtain an emergency authorization
17-57 under this section shall submit to the commission a sworn
17-58 application containing the following information:
17-59 (1) a description of the condition of emergency
17-60 justifying the granting of the emergency authorization;
17-61 (2) a statement setting forth facts which support the
17-62 findings required under this section;
17-63 (3) an estimate of the dates on which the proposed
17-64 authorization should begin and end;
17-65 (4) a description of the action sought and the
17-66 activity proposed to be allowed, mandated, or prohibited; and
17-67 (5) any other statements or information required by
17-68 the commission.
17-69 (c) If the commission finds the applicant's statement made
18-1 under Subsection (b) of this section to be correct, the commission
18-2 may grant emergency authorizations under this section without
18-3 notice and hearing or with such notice and hearing as the
18-4 commission considers practicable under the circumstances.
18-5 (d) If the commission grants an emergency authorization
18-6 under this section without a hearing, the authorization shall fix a
18-7 time and place for a hearing to be held before the commission. The
18-8 hearing shall be held as soon after the emergency authorization is
18-9 granted as is practicable but not later than 20 days after the
18-10 emergency authorization is granted.
18-11 (e) At the hearing, the commission shall affirm, modify, or
18-12 set aside the emergency authorization. Any hearing on an emergency
18-13 authorization shall be conducted in accordance with Chapter 2001,
18-14 Government Code, and rules of the commission.
18-15 (f) If an imminent threat to the public health and safety
18-16 exists which requires emergency action before the commission can
18-17 take action as provided by Subsections (a) through (c) of this
18-18 section and there are no feasible alternatives, the executive
18-19 director may grant an emergency authorization. If the executive
18-20 director issues an emergency authorization under this subsection,
18-21 the commission shall hold a hearing as provided for in Subsections
18-22 (d) and (e) of this section. The requirements of Subsection (b) of
18-23 this section shall be satisfied by the applicant before action is
18-24 taken by the executive director on the request for emergency
18-25 authorization.
18-26 (g) The requirements of Section 11.132 of this code relating
18-27 to the time for notice, newspaper notice, and method of giving a
18-28 person notice do not apply to a hearing held on an application for
18-29 an emergency authorization under this section, but such general
18-30 notice of the hearing shall be given as the commission, under
18-31 Subsections (c) and (e) of this section, considers practicable
18-32 under the circumstances.
18-33 (h) The commission may grant an emergency authorization
18-34 under this section for the temporary transfer and use of all or
18-35 part of a permit, certified filing, or certificate of adjudication
18-36 for other than domestic or municipal use to a retail or wholesale
18-37 water supplier for public health and safety purposes. In addition
18-38 to the requirements contained in Subsection (b) of this section,
18-39 the commission may direct that the applicant will timely pay the
18-40 amounts for which the applicant may be potentially liable under
18-41 Subsection (i) of this section and to the extent authorized by law
18-42 will fully indemnify and hold harmless the state, the executive
18-43 director, and the commission from any and all liability for the
18-44 authorization sought. The commission may order bond or other
18-45 surety in a form acceptable to the commission as a condition for
18-46 such emergency authorization. The commission may not grant an
18-47 emergency authorization under this section which would cause a
18-48 violation of a federal regulation.
18-49 (i) The person granted an emergency authorization under
18-50 Subsection (h) of this section is liable to the owner and the
18-51 owner's agent or lessee from whom the use is transferred for the
18-52 fair market value of the water transferred as well as for any
18-53 damages caused by the transfer of use. If, within 60 days of the
18-54 termination of the authorization, the parties do not agree on the
18-55 amount due, or if full payment is not made, either party may file a
18-56 complaint with the commission to determine the amount due. The
18-57 commission may use dispute resolution procedures for a complaint
18-58 filed under this subsection. After exhausting all administrative
18-59 remedies under this subsection, an owner from whom the use is
18-60 transferred may file suit to recover or determine the amount due in
18-61 a district court in the county where the owner resides or has its
18-62 headquarters. The prevailing party in a suit filed under this
18-63 subsection is entitled to recover court costs and reasonable
18-64 attorney's fees.
18-65 (j) [An emergency permit may be granted for a period of not
18-66 more than 30 days, and no extension or additional emergency permit
18-67 may be granted at the expiration of the original permit.]
18-68 [(c) An emergency permit may be granted under this section
18-69 without the necessity to comply with statutory and other procedures
19-1 required for granting other permits issued by the commission.]
19-2 [(d)] The commission may prescribe rules and adopt fees
19-3 which are necessary to carry out the provisions of this section.
19-4 (k) [(e)] An emergency authorization [permit] does not vest
19-5 in the grantee [permittee] any right to the diversion, impoundment,
19-6 or [and] use of water and shall expire and be cancelled in
19-7 accordance with its terms.
19-8 SECTION 3.04. Subsection (c), Section 12.052, Water Code, is
19-9 amended to read as follows:
19-10 (c) If the owner of a dam that is required to be
19-11 constructed, reconstructed, repaired, or removed in order to comply
19-12 with the rules and orders promulgated under Subsection (a) of this
19-13 section wilfully fails or refuses to comply within the 30-day
19-14 period following the date of the commission's final, nonappealable
19-15 order to do so or if a person wilfully fails to comply with any
19-16 rule or other order issued by the commission under this section
19-17 within the 30-day period following the effective date of the order,
19-18 he is liable to a penalty of not more than $10,000 [$1,000] a day
19-19 for each day he continues to violate this section. The state may
19-20 recover the penalty by suit brought for that purpose in the
19-21 district court of Travis County.
19-22 SECTION 3.05. Section 16.236, Water Code, is amended to read
19-23 as follows:
19-24 Sec. 16.236. CONSTRUCTION OF LEVEE WITHOUT APPROVAL OF
19-25 PLANS; LEVEE SAFETY. (a) No person may construct, attempt to
19-26 construct, cause to be constructed, maintain, or cause to be
19-27 maintained any levee or other such improvement on, along, or near
19-28 any stream of this state that is subject to floods, freshets, or
19-29 overflows so as to control, regulate, or otherwise change the
19-30 floodwater of the stream without first obtaining approval of the
19-31 plans by the commission.
19-32 (b) The commission shall make and enforce rules and orders
19-33 and shall perform all other acts necessary to provide for the safe
19-34 construction, maintenance, repair, and removal of levees located in
19-35 this state.
19-36 (c) If the owner of a levee that is required to be
19-37 constructed, reconstructed, repaired, or removed to comply with the
19-38 rules and orders promulgated under this section wilfully fails or
19-39 refuses to comply within the 30-day period following the date of an
19-40 order of the commission requiring such action or compliance or if a
19-41 person wilfully fails to comply with any rule or order issued by
19-42 the commission under this section within the 30-day period
19-43 following the effective date of the order, the person is liable for
19-44 a penalty of not more than $10,000 a day for each day the person
19-45 continues to violate this section. The state may recover the
19-46 penalty by suit brought for that purpose in a district court of
19-47 Travis County.
19-48 (d) If the commission determines that the existing condition
19-49 of a levee is creating or will cause extensive or severe property
19-50 damage or economic loss to others or is posing an immediate and
19-51 serious threat to human life or health and that other procedures
19-52 available to the commission to remedy or prevent such property
19-53 damage or economic loss will result in unreasonable delay, the
19-54 commission may issue an emergency order, either mandatory or
19-55 prohibitory in nature, directing the owner of the levee to repair,
19-56 modify, maintain, dewater, or remove the levee which the commission
19-57 determines is unsafe. The emergency order may be issued without
19-58 notice to the levee owner or with notice the commission considers
19-59 practicable under the circumstances.
19-60 (e) If the commission issues an emergency order under
19-61 authority of this section without notice to the levee owner, the
19-62 commission shall fix a time and place for a hearing, to be held as
19-63 soon as practicable but not later than 20 days after the emergency
19-64 order is authorized, to affirm, modify, or set aside the emergency
19-65 order. If the nature of the commission's action requires further
19-66 proceedings, those proceedings shall be conducted, as appropriate,
19-67 under Chapter 2001, Government Code.
19-68 (f) Nothing in this section or in rules or orders adopted by
19-69 the commission shall be construed to relieve an owner or operator
20-1 of a levee of the legal duties, obligations, or liabilities
20-2 incident to ownership or operation.
20-3 (g) Any person who violates any provision of Subsection (a)
20-4 of this section is guilty of a Class C misdemeanor and upon
20-5 conviction is punishable by a fine of not more than $4,000 [$100].
20-6 A separate offense is committed each day a structure constructed in
20-7 violation of this section is maintained.
20-8 (h) Subsection (a) of this [(c) At the request of the
20-9 executive director, the attorney general shall file suit in a
20-10 district court of Travis County to enjoin any violation or
20-11 threatened violation of this section. In the suit, the attorney
20-12 general may seek to have the illegal levee or other improvement
20-13 removed and the preexisting conditions restored and may also
20-14 collect civil penalties of up to $100 a day for each day a
20-15 violation occurs.]
20-16 [(d) This] section does not apply to:
20-17 (1) dams permitted by the commission or recognized as
20-18 valid by final decree in any proceeding begun under Subchapter G,
20-19 Chapter 11, of this code;
20-20 (2) dams authorized by Section 11.142 of this code;
20-21 (3) a levee or other improvement within the corporate
20-22 limits of a city or town provided: (a) plans for the construction
20-23 or maintenance or both must be approved by the city or town as a
20-24 condition precedent to starting the project and (b) the city or
20-25 town requires that such plans be in substantial compliance with
20-26 rules and standards adopted by the commission; or
20-27 (4) a levee or other improvement within the boundaries
20-28 of any political subdivision which has qualified for the National
20-29 Flood Insurance Program as authorized by the National Flood
20-30 Insurance Act of 1968 (Title 42, U.S.C., Sections 4001-4127)
20-31 provided: (a) plans for the construction or maintenance or both
20-32 must be approved by the political subdivision which is
20-33 participating in the national flood insurance program as a
20-34 condition precedent to starting the project and (b) the political
20-35 subdivision requires that such plans be in substantial compliance
20-36 with rules and standards adopted by the commission;
20-37 (5) projects implementing soil and water conservation
20-38 practices set forth in a conservation plan with a landowner or
20-39 operator and approved by the governing board of a soil and water
20-40 conservation district organized under the State Soil Conservation
20-41 Law, as amended (Article 165a-4, Vernon's Texas Civil Statutes),
20-42 provided that the governing board finds the practices do not
20-43 significantly affect stream flooding conditions on, along, or near
20-44 a state stream.
20-45 (i) [(e)] On projects located within the corporate limits of
20-46 a city or town or within the boundaries of any political
20-47 subdivision which are exempt from the provisions of Subsection (a)
20-48 of this section by Subdivision (3) or (4) of Subsection (h) of this
20-49 section [(d) above], any person whose property is located outside
20-50 of the corporate limits of such city or town or of the boundaries
20-51 of such a political subdivision and whose property is affected or
20-52 potentially affected by the effect of the project on the
20-53 floodwaters of the stream may appeal the decision of such political
20-54 subdivision. The appeal shall be in writing and shall specify the
20-55 grounds therefor and a copy shall be sent by certified mail to the
20-56 project applicant and to the city or town or such political
20-57 subdivision. The timely filing of such an appeal with the
20-58 executive director suspends the decision of the city or town or
20-59 political subdivision until a final decision is rendered by the
20-60 commission. The executive director shall review the complaint and
20-61 investigate the facts surrounding the nature of the complaint. If
20-62 the executive director finds that the complaint is frivolous or
20-63 nonmeritorious or made solely for purposes of harassment or delay,
20-64 then he shall dismiss the appeal. Otherwise, the executive
20-65 director shall refer the appeal to the commission which shall after
20-66 due notice hold a hearing to determine whether the project should
20-67 be approved using the standards established by the commission and
20-68 shall hear such appeal de novo under the procedural rules
20-69 established by the commission for other reclamation projects.
21-1 SECTION 3.06. Subchapter G, Chapter 16, Water Code, is
21-2 amended by adding Section 16.237 to read as follows:
21-3 Sec. 16.237. ADMINISTRATIVE PENALTY; CIVIL REMEDY. (a) If
21-4 a person violates a commission rule or order adopted under Section
21-5 16.236 of this code, the commission may assess an administrative
21-6 penalty against that person as provided by Section 11.0842 of this
21-7 code.
21-8 (b) Nothing in this chapter affects the right of any private
21-9 corporation, individual, or political subdivision that has a
21-10 justiciable interest in pursuing any available common-law remedy to
21-11 enforce a right or to prevent or seek redress or compensation for
21-12 the violation of a right or otherwise redress an injury.
21-13 ARTICLE 4. SURFACE WATER AND GROUNDWATER SUPPLIES
21-14 SECTION 4.01. Subsection (b), Section 11.134, Water Code, is
21-15 amended to read as follows:
21-16 (b) The commission shall grant the application only if:
21-17 (1) the application conforms to the requirements
21-18 prescribed by this chapter and is accompanied by the prescribed
21-19 fee;
21-20 (2) unappropriated water is available in the source of
21-21 supply;
21-22 (3) the proposed appropriation:
21-23 (A) is intended for a [contemplates the
21-24 application of water to any] beneficial use;
21-25 (B) does not impair existing water rights or
21-26 vested riparian rights; [and]
21-27 (C) is not detrimental to the public welfare;
21-28 [and]
21-29 (D) considers the effects of any hydrological
21-30 connection between surface water and groundwater; and
21-31 (E) addresses a water supply need in a manner
21-32 that is consistent with the state water plan and an approved
21-33 regional water plan for any area in which the proposed
21-34 appropriation is located, unless the commission determines that
21-35 conditions warrant waiver of this requirement; and
21-36 (4) the applicant has provided evidence that
21-37 reasonable diligence will be used to avoid waste and achieve water
21-38 conservation as defined by Subdivision (8)(B), Section 11.002, of
21-39 this code.
21-40 SECTION 4.02. Subchapter D, Chapter 11, Water Code, is
21-41 amended by adding Sections 11.1501 and 11.151 to read as follows:
21-42 Sec. 11.1501. CONSIDERATION AND REVISION OF PLANS. In
21-43 considering an application for a permit to store, take, or divert
21-44 surface water, or for an amendment to a permit, certified filing,
21-45 or certificate of adjudication, the commission shall consider the
21-46 state water plan and any approved regional water plan for the area
21-47 or areas in which the water is proposed to be stored, diverted, or
21-48 used.
21-49 Sec. 11.151. EFFECTS OF PERMITS ON GROUNDWATER. In
21-50 considering an application for a permit to store, take, or divert
21-51 surface water, the commission shall consider the effects, if any,
21-52 on groundwater or groundwater recharge.
21-53 SECTION 4.03. Section 11.153, Water Code, is amended by
21-54 amending the section heading and Subsections (a) and (d) to read as
21-55 follows:
21-56 Sec. 11.153. [PILOT] PROJECTS FOR STORAGE OF APPROPRIATED
21-57 WATER IN AQUIFERS.
21-58 (a) The commission shall investigate the feasibility of
21-59 storing appropriated water in various types of aquifers around the
21-60 state by encouraging the issuance of temporary or term permits for
21-61 [pilot] demonstration projects for the storage of appropriated
21-62 water for subsequent retrieval and beneficial use [in the following
21-63 aquifers in the specified counties:]
21-64 [(1) the Anacacho, Austin Chalk, and Glen Rose
21-65 Limestone aquifers in Bexar County and Medina County;]
21-66 [(2) the Carrizo-Wilcox aquifer in Bexar, Webb, Smith,
21-67 Wood, Rains, and Van Zandt counties;]
21-68 [(3) the Hickory and Ellenberger aquifers in Gillespie
21-69 County; and]
22-1 [(4) the Gulf Coast aquifer in Cameron and Hidalgo
22-2 counties].
22-3 (d) The commission shall only issue a [A] final order
22-4 granting a permit or amendment to a permit authorizing the storage
22-5 of appropriated water in aquifers for subsequent beneficial use
22-6 where completed pilot projects or historically demonstrated
22-7 projects have been shown to be feasible under the criteria provided
22-8 in Sections 11.154(c) and (d)[, other than for the pilot projects
22-9 authorized by this section, may not be issued before June 1, 1999].
22-10 SECTION 4.04. Subsections (a), (b), (c), and (e), Section
22-11 11.154, Water Code, are amended to read as follows:
22-12 (a) An application filed with the commission to undertake a
22-13 [pilot] project under Section 11.153 must include:
22-14 (1) the information required for an application for a
22-15 permit or permit amendment to appropriate state water;
22-16 (2) all information required for an application for a
22-17 permit for a Class V injection well without requiring a separate
22-18 hearing or notice; and
22-19 (3) a map or plat showing the injection facility and
22-20 the aquifer in which the water will be stored.
22-21 (b) If the application is for a permit or permit amendment
22-22 to store appropriated water in a groundwater [an underground water]
22-23 reservoir or a subdivision of a groundwater [an underground water]
22-24 reservoir, as defined by Chapter 36 [52], that is under the
22-25 jurisdiction of a groundwater [an underground water] conservation
22-26 district:
22-27 (1) the applicant shall:
22-28 (A) provide a copy of the application to each
22-29 groundwater [underground water] conservation district that has
22-30 jurisdiction over the reservoir or subdivision;
22-31 (B) cooperate with each district [the districts]
22-32 that has [have] jurisdiction over the reservoir or subdivision to
22-33 ensure compliance with the rules of each district;
22-34 (C) cooperate with each district that has
22-35 jurisdiction over the reservoir or subdivision to develop rules
22-36 regarding the injection, storage, and withdrawal of appropriated
22-37 water stored in the aquifer; and
22-38 (D) comply with the rules governing the
22-39 injection, storage, and [or] withdrawal of appropriated water
22-40 stored in the reservoir or subdivision that are adopted by each [a]
22-41 district that has jurisdiction over the reservoir or subdivision;
22-42 and
22-43 (2) the commission shall require that any agreement
22-44 the applicant reaches with a district that has jurisdiction over
22-45 the reservoir or subdivision regarding the terms for the injection,
22-46 storage, and withdrawal of appropriated water be included as a
22-47 condition of the permit or permit amendment.
22-48 (c) On [completion of a pilot project and] receipt of an
22-49 [appropriate] application for a permit or an amendment to an
22-50 existing permit from an applicant with a completed pilot or
22-51 historically demonstrated project, the commission shall evaluate
22-52 the success of the [pilot] project for purposes of issuing a final
22-53 order granting a permit or permit amendment authorizing the storage
22-54 of appropriated water incident to a beneficial use. The commission
22-55 shall consider whether:
22-56 (1) the introduction of water into the aquifer will
22-57 alter the physical, chemical, or biological quality of native
22-58 groundwater to a degree that the introduction would:
22-59 (A) render groundwater produced from the aquifer
22-60 harmful or detrimental to people, animals, vegetation, or property;
22-61 or
22-62 (B) require treatment of the groundwater to a
22-63 greater extent than the native groundwater requires before being
22-64 applied to that beneficial use;
22-65 (2) the water stored in the receiving aquifer can be
22-66 successfully harvested from the aquifer for beneficial use; and
22-67 (3) the [permit holder has provided evidence that
22-68 reasonable diligence will be used to protect the] water stored in
22-69 the receiving aquifer will be protected from unauthorized
23-1 withdrawals to the extent necessary to maximize the permit holder's
23-2 ability to retrieve and beneficially use the stored water without
23-3 experiencing unreasonable loss of appropriated water.
23-4 (e) A permit to store appropriated water in a groundwater
23-5 [an underground water] reservoir or subdivision, as defined by
23-6 Chapter 36 [52], shall provide as a condition to the permit that
23-7 the permit holder shall:
23-8 (1) register the permit holder's injection and
23-9 recovery wells with a groundwater [an underground water]
23-10 conservation district that has jurisdiction over the reservoir or
23-11 subdivision, if any; and
23-12 (2) each calendar month, provide the district, if any,
23-13 with a written report showing for the previous calendar month:
23-14 (A) the amount of water injected for storage;
23-15 and
23-16 (B) the amount of water recaptured for use.
23-17 SECTION 4.05. Subsection (b), Section 11.155, Water Code, is
23-18 amended to read as follows:
23-19 (b) The board shall make other studies, investigations, and
23-20 surveys of the aquifers in the state as it considers necessary to
23-21 determine the occurrence, quantity, quality, and availability of
23-22 other aquifers in which water may be stored and subsequently
23-23 retrieved for beneficial use. The board shall undertake the
23-24 studies, investigations, and surveys in the following order of
23-25 priority:
23-26 (1) the aquifers described [identified] in Section
23-27 11.153(a);
23-28 (2) areas designated by the commission as "priority
23-29 groundwater management [critical] areas" under Section 35.008
23-30 [52.053]; and
23-31 (3) other areas of the state in a priority to be
23-32 determined by the board's ranking of where the greatest need
23-33 exists.
23-34 SECTION 4.06. Subsection (b), Section 11.173, Water Code, is
23-35 amended to read as follows:
23-36 (b) A permit, certified filing, or certificate of
23-37 adjudication or a portion of a permit, certified filing, or
23-38 certificate of adjudication is exempt from cancellation under
23-39 Subsection (a) of this section:
23-40 (1) to the extent of the owner's participation in the
23-41 Conservation Reserve Program authorized by the Food Security Act,
23-42 Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985)
23-43 or a similar governmental program; or
23-44 (2) if any portion of the water authorized to be used
23-45 pursuant to a permit, certified filing, or certificate of
23-46 adjudication has been used in accordance with a regional water
23-47 [management] plan approved pursuant to Section 16.053 of this code
23-48 [by the commission].
23-49 SECTION 4.07. Subdivision (6), Section 15.001, Water Code,
23-50 is amended to read as follows:
23-51 (6) "Project" means:
23-52 (A) any undertaking or work to conserve, convey,
23-53 and develop [surface or subsurface] water resources in the state,
23-54 to provide for the maintenance and enhancement of the quality of
23-55 the water of the state, to provide nonstructural and structural
23-56 flood control, drainage, subsidence control, recharge, chloride
23-57 control, brush control, precipitation enhancement, and
23-58 desalinization, and to carry out other purposes defined by board
23-59 rules; [or]
23-60 (B) any undertaking or work outside the state to
23-61 provide for the maintenance and enhancement of the quality of water
23-62 by eliminating saline inflow through well pumping and deep well
23-63 injection of brine; or
23-64 (C) any undertaking or work by Texas political
23-65 subdivisions or institutions of higher education to conserve,
23-66 convey, and develop water resources in areas outside Texas or to
23-67 provide for the maintenance and enhancement of the quality of the
23-68 water in areas adjoining Texas, if such undertaking or work will
23-69 result in water being available for use in or for the benefit of
24-1 Texas or will maintain and enhance the quality of water in Texas.
24-2 SECTION 4.08. Subsection (b), Section 15.002, Water Code, is
24-3 amended to read as follows:
24-4 (b) The legislature finds that the conventional means of
24-5 financing projects are inadequate to meet current and anticipated
24-6 needs of the state. Therefore, it is the further intent of the
24-7 legislature to provide a means of coordinating the development of
24-8 projects [throughout the state] through the board and to provide
24-9 political subdivisions the maximum opportunity to finance projects
24-10 through programs provided by this chapter. Projects may be in the
24-11 state or outside the state, provided that out-of-state projects
24-12 must be funded through a Texas political subdivision or an
24-13 institution of higher education and must result in water being
24-14 available for use in or for the benefit of Texas or maintain and
24-15 enhance the quality of water in Texas.
24-16 SECTION 4.09. Section 17.895, Water Code, is amended by
24-17 amending Subsection (a) and adding Subsection (c) to read as
24-18 follows:
24-19 (a) The board or lender districts may make conservation
24-20 loans for capital equipment or materials, labor, preparation costs,
24-21 and installation costs:
24-22 (1) to improve water use efficiency of water delivery
24-23 and application on existing irrigation systems;
24-24 (2) for preparing irrigated land to be converted to
24-25 dryland conditions; [or]
24-26 (3) for preparing dryland for more efficient use of
24-27 natural precipitation;
24-28 (4) for preparing and maintaining land to be used for
24-29 brush control activities, including but not limited to activities
24-30 conducted pursuant to Chapter 203, Agriculture Code; or
24-31 (5) for implementing precipitation enhancement
24-32 activities in areas of the state where such activities would be, in
24-33 the board's judgment, most effective.
24-34 (c) The board may make conservation loans to borrower
24-35 districts for the cost of purchasing and installing devices, on
24-36 public or private property, designed to indicate the amount of
24-37 water withdrawn for irrigation purposes.
24-38 SECTION 4.10. Subdivision (12), Section 35.002, Water Code,
24-39 is amended to read as follows:
24-40 (12) "Priority groundwater management [Critical] area"
24-41 means an area designated and delineated by the commission as an
24-42 area that is experiencing or is expected to experience critical
24-43 groundwater problems.
24-44 SECTION 4.11. Section 35.007, Water Code, is amended to read
24-45 as follows:
24-46 Sec. 35.007. IDENTIFYING, DESIGNATING, AND DELINEATING
24-47 PRIORITY GROUNDWATER MANAGEMENT [CRITICAL] AREAS. (a) The
24-48 executive director and the executive administrator shall meet at
24-49 least once a year to identify, based on information gathered by the
24-50 commission and the Texas Water Development Board, those areas of
24-51 the state that are experiencing or that are expected to experience,
24-52 [based on information available to the commission and the Texas
24-53 Water Development Board,] within the immediately following 25-year
24-54 [20-year] period, critical groundwater problems, including
24-55 shortages of surface water or groundwater, land subsidence
24-56 resulting from groundwater withdrawal, and contamination of
24-57 groundwater supplies.
24-58 (b) If the executive director concludes that an area of the
24-59 state should be considered for designation as a priority
24-60 groundwater management [critical] area, the executive director
24-61 shall prepare a report to the commission.
24-62 (c) The executive director shall begin preparation of a
24-63 priority groundwater management [critical] area report by
24-64 requesting a study from the executive administrator. The study
24-65 must:
24-66 (1) include an appraisal of the hydrogeology of the
24-67 area and matters within the Texas Water Development Board's
24-68 planning expertise relevant to the area;
24-69 (2) assess the area's immediate, short-term, and
25-1 long-term water supply and needs; and
25-2 (3) [. The study must] be completed and delivered to
25-3 the executive director on or before the 180th [90th] day following
25-4 the date of the request. If the study is not delivered within this
25-5 180-day [90-day] period, the executive director may proceed with
25-6 the preparation of the report.
25-7 (d) The executive director shall request a study from the
25-8 executive director of the Parks and Wildlife Department for the
25-9 purpose of preparing the report required by this section. The
25-10 study must:
25-11 (1) evaluate the potential effects of the designation
25-12 of a priority groundwater management area on an area's natural
25-13 resources; and
25-14 (2) be completed and delivered to the executive
25-15 director on or before the 180th day following the date of the
25-16 request. If the study is not delivered within this 180-day period,
25-17 the executive director may proceed with the preparation of the
25-18 report.
25-19 (e) The report shall include:
25-20 (1) the recommended delineation of the boundaries of
25-21 any proposed priority groundwater management [critical] area in the
25-22 form of an order [a rule] to be considered for adoption by the
25-23 commission;
25-24 (2) the reasons and supporting information for or
25-25 against designating the area as a priority groundwater management
25-26 [critical] area;
25-27 (3) a recommendation regarding whether a district
25-28 should be created in the priority groundwater management [critical]
25-29 area or whether the priority groundwater management [critical] area
25-30 should be added to an existing district;
25-31 (4) a recommendation as to actions that should be
25-32 considered to conserve natural resources; and
25-33 (5) any other information that the executive director
25-34 considers helpful to the commission.
25-35 (f) [(e)] The executive director must complete the report
25-36 and file it with the commission on or before the 240th [210th] day
25-37 following the date on which the executive administrator was
25-38 requested to produce a study. The executive director shall make
25-39 the report available for public inspection by providing a copy of
25-40 the report to at least one public library and the county clerk's
25-41 office in each county in which the proposed priority groundwater
25-42 management [critical] area is located and to all districts adjacent
25-43 to the area of the proposed priority groundwater management area.
25-44 (g) [(f)] To carry out this section, the executive director
25-45 may make necessary studies, hold hearings, solicit and collect
25-46 information, and use information already prepared by the executive
25-47 director or the executive administrator for other purposes.
25-48 SECTION 4.12. Section 35.008, Water Code, is amended to read
25-49 as follows:
25-50 Sec. 35.008. PROCEDURES FOR DESIGNATION OF PRIORITY
25-51 GROUNDWATER MANAGEMENT AREA; CONSIDERATION OF CREATION OF DISTRICT
25-52 OR ADDITION OF LAND IN PRIORITY GROUNDWATER MANAGEMENT AREA TO
25-53 EXISTING DISTRICT [CRITICAL AREAS]. (a) The commission shall
25-54 designate priority groundwater management [critical] areas using
25-55 the procedures provided by this chapter in lieu of those provided
25-56 by [applicable to rulemaking under the Administrative Procedure
25-57 Act,] Subchapter B, Chapter 2001, Government Code[, but if
25-58 procedures required by this chapter are in conflict with that Act,
25-59 this chapter controls].
25-60 (b) The commission shall call an evidentiary hearing to
25-61 consider:
25-62 (1) the designation of a priority groundwater
25-63 management area;
25-64 (2) whether a district should be created over all or
25-65 part of a priority groundwater management area; or
25-66 (3) whether all or part of the land in the priority
25-67 groundwater management area should be added to an existing
25-68 district.
25-69 (c) Evidentiary hearings shall be held at a location in one
26-1 of the counties in which the priority groundwater management area
26-2 is located, or proposed to be located, or in the nearest convenient
26-3 location if adequate facilities are not available in those
26-4 counties.
26-5 (d) At the hearing, the commission shall hear testimony and
26-6 receive evidence from affected persons. The commission shall
26-7 consider the executive director's report and supporting information
26-8 and the testimony and evidence received at the hearing. If the
26-9 commission considers further information necessary, the commission
26-10 may request such information from any source.
26-11 (e) The designation of a priority groundwater management
26-12 [critical] area may not be appealed nor may it be challenged under
26-13 the Administrative Procedure Act, Section 2001.038, Government
26-14 Code.
26-15 SECTION 4.13. Section 35.009, Water Code, is amended to read
26-16 as follows:
26-17 Sec. 35.009. NOTICE AND HEARING. (a) The [In addition to
26-18 the notice required for rulemaking under the Administrative
26-19 Procedure Act, Section 2001.023, Government Code, the] commission
26-20 shall have notice of the hearing published in at least one
26-21 newspaper with general circulation in the county or counties in
26-22 which the area being designated a proposed priority groundwater
26-23 management [critical] area or the area within a priority
26-24 groundwater management area being considered for district creation
26-25 or for addition to an existing district is [to be] located. Notice
26-26 must be published not later than the 30th day before the date set
26-27 for the commission to consider the designation of the priority
26-28 groundwater management [critical] area, the creation of a district
26-29 in a priority groundwater management area, or the addition of land
26-30 in a priority groundwater management area to an existing district.
26-31 (b) The notice must include:
26-32 (1) if applicable, a statement of the general purpose
26-33 and effect of designating the proposed priority groundwater
26-34 management area [critical areas];
26-35 (2) if applicable, a statement of the general purpose
26-36 and effect of creating a district in the priority groundwater
26-37 management area;
26-38 (3) if applicable, a statement of the general purpose
26-39 and effect of adding all or part of the land in the priority
26-40 groundwater management area to an existing district;
26-41 (4) a map generally outlining the boundaries of the
26-42 area being considered for priority groundwater management [proposed
26-43 critical] area designation or the priority groundwater management
26-44 area being considered for district creation or for addition to an
26-45 existing district, or notice of the location at which a copy of the
26-46 map may be examined or obtained;
26-47 (5) a statement that the executive director's report
26-48 concerning the priority groundwater management area or proposed
26-49 area is available at the commission's main office in Austin, Texas,
26-50 and at regional offices of the commission for regions which include
26-51 territory within the priority groundwater management area or
26-52 proposed priority groundwater management area and that the report
26-53 is available for inspection during regular business hours;
26-54 (6) [(3)] a description or the name of the locations
26-55 in the affected area at which the commission has provided copies of
26-56 the executive director's report to be made available for public
26-57 inspection;
26-58 (7) the name and address of each public library, each
26-59 county clerk's office, and each district to which the commission
26-60 has provided copies of the executive director's report; and
26-61 (8) [(4)] the date, time, and place of the hearing [at
26-62 which the commission will consider the designation of the critical
26-63 areas].
26-64 (c) The commission shall also give written notice of the
26-65 date, time, place, and purpose of the hearing to the governing body
26-66 of each county, regional water planning group, adjacent groundwater
26-67 district, municipality, river authority, water district, or other
26-68 entity which supplies public drinking water, and of each irrigation
26-69 district, located either in whole or in part in the priority
27-1 groundwater management area or proposed priority groundwater
27-2 management area. The notice must be given before the 30th day
27-3 preceding the date set for the hearing.
27-4 SECTION 4.14. Subsections (b), (c), (d), and (e), Section
27-5 35.012, Water Code, are amended to read as follows:
27-6 (b) If the commission finds that the land and other property
27-7 in the priority groundwater management [critical] area would
27-8 benefit from the creation of one or more districts, that there is a
27-9 public need for one or more districts, and that the creation of one
27-10 or more districts would further the public welfare, the commission
27-11 shall issue an order stating that the creation of one or more
27-12 districts is needed.
27-13 (c) Following [During the period between] the [date of]
27-14 issuance of a commission order under Subsection (b) [and one year
27-15 after the close of the next regular session of the legislature
27-16 following the issuance of the order], the landowners in the
27-17 priority groundwater management [critical] area may:
27-18 (1) create one or more districts under Subchapter B,
27-19 Chapter 36;
27-20 (2) have the area annexed to a district that adjoins
27-21 the area; or
27-22 (3) create one or more districts through the
27-23 legislative process.
27-24 (d) The commission shall identify the areas subject to the
27-25 order of the commission issued under Subsection (b) that have not[,
27-26 in the period provided by Subsection (c),] been incorporated into a
27-27 district[,] and shall delineate proposed boundaries of a district
27-28 to include those areas. If the commission proposes the creation of
27-29 one or more districts, the Texas Agricultural Extension Service
27-30 [commission] shall begin an educational program within such areas
27-31 with the assistance of the Texas Water Development Board, the
27-32 commission, other state agencies, and existing districts to inform
27-33 the residents of the status of the area's water resources and
27-34 management options including possible formation of a district,
27-35 before beginning the procedures for creation of a district provided
27-36 in Subchapter B, Chapter 36.
27-37 (e) If the commission fails to find that the district would
27-38 be a benefit to the land and other property within the priority
27-39 groundwater management [critical] area, that there is a public need
27-40 for the district, or that creation of the district will further the
27-41 public welfare, the commission shall issue an order stating that a
27-42 district should not be created within the boundaries of the
27-43 priority groundwater management [critical] area.
27-44 SECTION 4.15. Section 35.013, Water Code, is amended to read
27-45 as follows:
27-46 Sec. 35.013. ADDING PRIORITY GROUNDWATER MANAGEMENT
27-47 [CRITICAL] AREA TO EXISTING DISTRICT. (a) If land in a priority
27-48 groundwater management [critical] area is located adjacent to one
27-49 or more existing districts, the commission, instead of issuing an
27-50 order under Section 35.012, may issue an order recommending that
27-51 the priority groundwater management [critical] area be added to the
27-52 existing district designated by the commission. In its order, the
27-53 commission must find that the land and other property in the
27-54 priority groundwater management [critical] area and the land in the
27-55 existing district will benefit from the addition of the area, that
27-56 there is a public need to add the priority groundwater management
27-57 [critical] area to the existing district, and that the addition of
27-58 the land to the existing district would further the public welfare.
27-59 (b) If the executive director recommends that the priority
27-60 groundwater management [critical] area be added to an existing
27-61 district or if the commission considers it possible to add the
27-62 priority groundwater management [critical] area to an adjacent
27-63 existing district, the commission shall give notice to the board of
27-64 the existing district recommended by the executive director or
27-65 considered by the commission to possibly serve the area and to any
27-66 other existing districts adjacent to the priority groundwater
27-67 management [critical] area.
27-68 (c) The commission shall submit a copy of the order to the
27-69 board of the district to which it is recommending the priority
28-1 groundwater management [critical] area be added. The board shall
28-2 vote on the addition of the priority groundwater management
28-3 [critical] area to the district and shall advise the commission of
28-4 the outcome.
28-5 (d) If the board votes to accept the addition of the
28-6 priority groundwater management [critical] area to the district,
28-7 the board:
28-8 (1) may request the Texas Agricultural Extension
28-9 Service, the commission, the Texas Water Development Board, and
28-10 other state agencies to administer an educational program to inform
28-11 the residents of the status of the area's water resources and
28-12 management options including possible annexation into a district;
28-13 and
28-14 (2) shall call an election within the priority
28-15 groundwater management [critical] area as delineated by the
28-16 commission to determine if the priority groundwater management
28-17 [critical] area will be added to the district; and
28-18 (3) [In the order calling the election, the board]
28-19 shall designate election precincts and polling places for the
28-20 elections in the order calling an election under this subsection.
28-21 (e) The board shall give notice of the election and the
28-22 proposition to be voted on. The board shall publish notice of the
28-23 election at least one time in one or more newspapers with general
28-24 circulation within the boundaries of the priority groundwater
28-25 management [critical] area. The notice must be published before
28-26 the 30th day preceding the date set for the election.
28-27 (f) The ballots for the election shall be printed to provide
28-28 for voting for or against the proposition: "The inclusion of
28-29 __________ (briefly describe priority groundwater management
28-30 [critical] area) in the __________ District." If the district has
28-31 outstanding debts or taxes [issued bonds], the proposition shall
28-32 include the following language: "and assumption by the described
28-33 area of a proportional share of the debts or taxes [outstanding
28-34 indebtedness] of the district."
28-35 (g) Immediately after the election, the presiding judge of
28-36 each polling place shall deliver the returns of the election to the
28-37 board, and the board shall canvass the returns for the election
28-38 within the priority groundwater management [critical] area and
28-39 declare the results. If a majority of the voters in the priority
28-40 groundwater management [critical] area voting on the proposition
28-41 vote in favor of the proposition, the board shall declare that the
28-42 priority groundwater management [critical] area is added to the
28-43 district. If a majority of the voters in the priority groundwater
28-44 management [critical] area voting on the proposition vote against
28-45 adding the priority groundwater management [critical] area to the
28-46 district, the board shall declare that the priority groundwater
28-47 management [critical] area is not added to the district. The board
28-48 shall file a copy of the election results with the commission.
28-49 (h) If the voters approve adding the priority groundwater
28-50 management [critical] area to the district, the board of the
28-51 district to which the priority groundwater management [critical]
28-52 area is added shall provide reasonable representation on that board
28-53 compatible with the district's existing scheme of representation.
28-54 (i) If the proposition is defeated, another election to add
28-55 the priority groundwater management [critical] area to an existing
28-56 district may not be called before the first anniversary of the date
28-57 on which the election on the proposition was held.
28-58 SECTION 4.16. Subsections (b) and (c), Section 35.014, Water
28-59 Code, are amended to read as follows:
28-60 (b) The costs of an election to add a priority groundwater
28-61 management [critical] area to an existing district at which the
28-62 voters approve adding the priority groundwater management
28-63 [critical] area to the district shall be paid by the existing
28-64 district.
28-65 (c) The costs of an election to create a district or add a
28-66 priority groundwater management [critical] area to an existing
28-67 district at which the proposition fails shall be paid by the
28-68 commission.
28-69 SECTION 4.17. Section 35.015, Water Code, is amended to read
29-1 as follows:
29-2 Sec. 35.015. STATE ASSISTANCE. [(a) A political
29-3 subdivision located in or that has within its boundaries an area or
29-4 part of an area delineated as a critical area, and in which the
29-5 qualified voters fail to approve the creation of a district or to
29-6 join an existing district, shall not be eligible to receive any
29-7 financial assistance from the state under Chapter 15, 16, or 17 for
29-8 use within that portion of the critical area not covered by a
29-9 district.]
29-10 [(b)] A political subdivision located in an area delineated
29-11 as a priority groundwater management [critical] area, and in which
29-12 qualified voters approve the creation of a district or annexation
29-13 into an existing district, shall be given consideration to receive
29-14 financial assistance from the state under Chapter 17 for funds to
29-15 be used in addressing issues identified in the priority groundwater
29-16 management [critical] area report in the manner provided by
29-17 Sections 17.124 and 17.125[, except that the board is not required
29-18 to make the finding set out in Section 17.125(a)(2)].
29-19 SECTION 4.18. Section 35.017, Water Code, is amended to read
29-20 as follows:
29-21 Sec. 35.017. STATE-OWNED LAND. If state-owned land or a
29-22 portion of state-owned land is located in a priority groundwater
29-23 management [critical] area, the state agency that has management
29-24 and control over that land under the constitution or by statute may
29-25 elect by written agreement with the commission and the district to
29-26 include the state-owned land in the district. The agreement shall
29-27 be entered into as provided by the Texas Intergovernmental
29-28 Cooperation Act, Chapter 741, Government Code, and may include
29-29 provisions for the payment by the state agency of reasonable fees
29-30 to the district. If the state does not elect to enter into the
29-31 agreement to include the state-owned land in the district, the
29-32 state agency must establish a groundwater management plan that will
29-33 conserve, protect, and prevent the waste of groundwater on that
29-34 state-owned land.
29-35 SECTION 4.19. Chapter 35, Water Code, is amended by adding
29-36 Section 35.018 to read as follows:
29-37 Sec. 35.018. REPORTS. (a) No later than January 31 of each
29-38 odd-numbered year, the commission in conjunction with the Texas
29-39 Water Development Board shall prepare and deliver to the governor,
29-40 the lieutenant governor, and the speaker of the house of
29-41 representatives a comprehensive report concerning activities during
29-42 the preceding two years relating to the designation of priority
29-43 groundwater management areas by the commission and the creation and
29-44 operation of districts.
29-45 (b) The report must include:
29-46 (1) the names and locations of all priority
29-47 groundwater management areas and districts created or attempted to
29-48 be created on or after November 5, 1985, the effective date of
29-49 Chapter 133 (H.B. No. 2), Acts of the 69th Legislature, Regular
29-50 Session, 1985;
29-51 (2) the authority under which each priority
29-52 groundwater management area and district was proposed for creation;
29-53 (3) a detailed analysis of each election held to
29-54 confirm the creation of a district, including analysis of election
29-55 results, possible reasons for the success or failure to confirm the
29-56 creation of a district, and the possibility for future voter
29-57 approval of districts in areas in which attempts to create
29-58 districts failed;
29-59 (4) a detailed analysis of the activities of each
29-60 district created, including those districts which are implementing
29-61 management plans certified under Section 36.1072;
29-62 (5) a report on audits performed on districts under
29-63 Section 36.302 and remedial actions taken under Section 36.303;
29-64 (6) recommendations for changes in this chapter and
29-65 Chapter 36 that will facilitate the creation of priority
29-66 groundwater management areas and the creation and operation of
29-67 districts;
29-68 (7) a report on educational efforts in newly
29-69 designated priority groundwater management areas; and
30-1 (8) any other information and recommendations that the
30-2 commission considers relevant.
30-3 SECTION 4.20. Section 36.001, Water Code, is amended by
30-4 amending Subdivision (14) and adding Subdivisions (16), (17), and
30-5 (18) to read as follows:
30-6 (14) "Priority groundwater management [Critical] area"
30-7 means an area designated and delineated by the commission under
30-8 Chapter 35 as an area experiencing or expected to experience
30-9 critical groundwater problems.
30-10 (16) "Loan fund" means the groundwater district loan
30-11 assistance fund created under Section 36.371.
30-12 (17) "Applicant" means a newly confirmed district
30-13 applying for a loan from the loan fund.
30-14 (18) "Livestock" means bovine, caprine, equine, ovine,
30-15 porcine, ratite, or ruminant animals, poultry, domestic rabbits,
30-16 domesticated game birds, or other animals, either confined or free
30-17 ranging, raised for human consumption, profit, use, or pleasure.
30-18 The term includes exotic livestock as defined in Section 161.001,
30-19 Agriculture Code.
30-20 SECTION 4.21. Subsection (c), Section 36.012, Water Code, is
30-21 amended to read as follows:
30-22 (c) The boundaries of a district must be coterminous with or
30-23 inside the boundaries of a management area or a priority
30-24 groundwater management [critical] area.
30-25 SECTION 4.22. Subsection (d), Section 36.013, Water Code, is
30-26 amended to read as follows:
30-27 (d) If a part of the proposed district is not included
30-28 within either a management area or a priority groundwater
30-29 management [critical] area, the petition to create a district may
30-30 also contain a request to create a management area. A request to
30-31 create a management area must comply with the requirements for a
30-32 petition in Section 35.005, and may be acted on by the commission
30-33 separately from the petition to create the district.
30-34 SECTION 4.23. Subchapter B, Chapter 36, Water Code, is
30-35 amended by adding Section 36.0151 to read as follows:
30-36 Sec. 36.0151. CREATION OF DISTRICT FOR PRIORITY GROUNDWATER
30-37 MANAGEMENT AREA. (a) If the commission proposes that a district
30-38 be created under Section 35.012(d), it shall in its order creating
30-39 the district provide that temporary directors be appointed under
30-40 Section 36.016 and that an election be called by the temporary
30-41 directors to confirm the creation of the district and to elect
30-42 permanent directors.
30-43 (b) The commission shall notify the county commissioners
30-44 court of each county with territory in the district of the
30-45 district's creation as soon as practicable after issuing the order
30-46 creating the district.
30-47 SECTION 4.24. Section 36.016, Water Code, is amended to read
30-48 as follows:
30-49 Sec. 36.016. APPOINTMENT OF TEMPORARY DIRECTORS. (a) If
30-50 the commission grants a petition to create a district under Section
30-51 36.015 or after the commission dissolves a district's board under
30-52 Section 36.303, it shall appoint five temporary directors.
30-53 (b) If the commission creates a district under Section
30-54 36.0151, the county commissioners court or courts of the county or
30-55 counties that contain the area of the district shall, within 90
30-56 days after receiving notification by the commission under Section
30-57 36.0151(b), appoint five temporary directors, or more if the
30-58 district contains the territory of more than five counties, for the
30-59 district's board using the method provided by Section 36.0161. A
30-60 county commissioners court shall not make any appointments after
30-61 the expiration of the 90-day period. If fewer than five temporary
30-62 directors have been appointed at the expiration of the period, the
30-63 commission shall appoint additional directors so that the board has
30-64 at least five members.
30-65 (c) Temporary directors appointed under this section [who]
30-66 shall serve until the initial directors are elected and have
30-67 qualified for office or until the voters fail to approve the
30-68 creation of the district.
30-69 (d) [(b)] If an appointee of the commission or of a county
31-1 commissioners court fails to qualify or if a vacancy occurs in the
31-2 office of temporary director, the commission or the county
31-3 commissioners court, as appropriate, shall appoint an individual to
31-4 fill the vacancy.
31-5 (e) [(c)] As soon as all temporary directors have qualified,
31-6 the directors shall meet, take the oath of office, and elect a
31-7 chairman and vice chairman from among their membership. The
31-8 chairman shall preside at all meetings of the board and, in the
31-9 chairman's absence, the vice chairman shall preside.
31-10 SECTION 4.25. Subchapter B, Chapter 36, Water Code, is
31-11 amended by adding Section 36.0161 to read as follows:
31-12 Sec. 36.0161. METHOD FOR APPOINTING TEMPORARY DIRECTORS FOR
31-13 DISTRICT IN PRIORITY GROUNDWATER MANAGEMENT AREA. (a) If a
31-14 district in a priority groundwater management area is:
31-15 (1) contained within one county, the county
31-16 commissioners court of that county shall appoint five temporary
31-17 directors for the district;
31-18 (2) contained within two counties, the county
31-19 commissioners court of each county shall appoint at least one
31-20 temporary director, with the appointments of the three remaining
31-21 directors to be apportioned as provided by Subsection (b);
31-22 (3) contained within three counties, the county
31-23 commissioners court of each county shall appoint at least one
31-24 temporary director, with the appointments of the two remaining
31-25 directors to be apportioned as provided by Subsection (b);
31-26 (4) contained within four counties, the county
31-27 commissioners court of each county shall appoint at least one
31-28 temporary director, with the appointment of the remaining director
31-29 to be apportioned as provided by Subsection (b); or
31-30 (5) contained within five or more counties, the county
31-31 commissioners court of each county shall appoint one temporary
31-32 director.
31-33 (b)(1) In this subsection, "estimated groundwater use" means
31-34 the estimate of groundwater use in acre-feet developed by the
31-35 commission under Subsection (c) for the area of a county that is
31-36 within the district.
31-37 (2) The apportionment of appointments under Subsection
31-38 (a) shall be made by the commission so as to reflect, as closely as
31-39 possible, the proportion each county's estimated groundwater use
31-40 bears to the sum of the estimated groundwater use for the district
31-41 as determined under Subsection (c). The commission shall by rule
31-42 determine the method it will use to implement this subdivision.
31-43 (c) If a district for which temporary directors are to be
31-44 appointed is contained within two, three, or four counties, the
31-45 commission shall develop an estimate of annual groundwater use in
31-46 acre-feet for each county area within the district.
31-47 SECTION 4.26. Subchapter D, Chapter 36, Water Code, is
31-48 amended by amending Section 36.107 and adding Sections 36.1071,
31-49 36.1072, and 36.1073 to read as follows:
31-50 Sec. 36.107. RESEARCH [AND PLANNING]. [(a)] A district may
31-51 carry out any research projects deemed necessary by the board.
31-52 Sec. 36.1071. MANAGEMENT PLAN. (a)[(b)] Following notice
31-53 and hearing, the district shall, in coordination with surface water
31-54 management entities on a regional basis, develop a comprehensive
31-55 management plan which addresses the following management goals, as
31-56 applicable:
31-57 (1) providing the most efficient use of groundwater;
31-58 (2) controlling and preventing waste of groundwater;
31-59 (3) controlling and preventing subsidence;
31-60 (4) addressing conjunctive surface water management
31-61 issues; and
31-62 (5) addressing natural resource issues.
31-63 (b) A district management plan, or any amendments to a
31-64 district management plan, adopted after the Texas Water Development
31-65 Board approval of a regional water plan for the region in which the
31-66 district is located shall be consistent with the regional water
31-67 plan.
31-68 (c) The commission and the Texas Water Development Board
31-69 shall provide technical assistance to a district in the development
32-1 of the management plan required under Subsection (a) which may
32-2 include, if requested by the district, a preliminary review and
32-3 comment on the plan prior to final approval by the board. If such
32-4 review and comment by the commission is requested, the commission
32-5 shall provide comment not later than 30 days from the date the
32-6 request is received.
32-7 (d) The commission shall provide technical assistance to a
32-8 district during its initial operational phase.
32-9 (e) In the management plan described under Subsection (a),
32-10 the district shall:
32-11 (1) identify the performance standards and management
32-12 objectives under which the district will operate to achieve the
32-13 management goals identified under Subsection (a);
32-14 (2) specify, in as much detail as possible, the
32-15 actions, procedures, performance, and avoidance that are or may be
32-16 necessary to effect the plan, including specifications and proposed
32-17 rules;
32-18 (3) include estimates of the following:
32-19 (A) the existing total usable amount of
32-20 groundwater in the district;
32-21 (B) the amount of groundwater being used within
32-22 the district on an annual basis;
32-23 (C) the annual amount of recharge, if any, to
32-24 the groundwater resources within the district and how natural or
32-25 artificial recharge may be increased; and
32-26 (D) the projected water supply and demand for
32-27 water within the district; and
32-28 (4) address water supply needs in a manner that is not
32-29 in conflict with the appropriate approved regional water plan if a
32-30 regional water plan has been approved under Section 16.053 [for the
32-31 most efficient use of the groundwater, for controlling and
32-32 preventing waste of groundwater, and for controlling and preventing
32-33 subsidence. The plan may be reviewed annually but must be reviewed
32-34 by the board at least once every five years].
32-35 (e) [(c) The district shall specify in the management plan,
32-36 in as much detail as possible, the acts, procedures, performance,
32-37 and avoidance that are or may be necessary to effect the plan,
32-38 including specifications and proposed rules.] The district shall
32-39 adopt rules necessary to implement the management plan.
32-40 (f) The board shall adopt amendments to the management plan
32-41 as necessary. Amendments to the management plan shall be adopted
32-42 after notice and hearing and shall otherwise comply with the
32-43 requirements of this section.
32-44 Sec. 36.1072. TEXAS WATER DEVELOPMENT BOARD REVIEW AND
32-45 CERTIFICATION OF MANAGEMENT PLAN. (a) A [The] district shall, not
32-46 later than two years after the creation of the district or, if the
32-47 district required confirmation, after the election confirming the
32-48 district's creation, submit [file a copy of] the management plan
32-49 required under Section 36.1071 to [and the rules with] the Texas
32-50 Water Development Board for review and certification [commission].
32-51 (b) Within 60 days of receipt of a management plan adopted
32-52 under Section 36.1071, the Texas Water Development Board shall
32-53 certify a management plan if the plan is administratively complete.
32-54 A management plan is administratively complete when it contains the
32-55 information required to be submitted under Section 36.1071. The
32-56 Texas Water Development Board may determine that conditions justify
32-57 waiver of the requirements under Section 36.1071(e)(4).
32-58 (c) Once a determination that a management plan is
32-59 administratively complete has been made:
32-60 (1) the Texas Water Development Board may not revoke
32-61 the determination that a management plan is administratively
32-62 complete;
32-63 (2) the Texas Water Development Board may request
32-64 additional information from the district if the information is
32-65 necessary to clarify, modify, or supplement previously submitted
32-66 material; and
32-67 (3) a request for additional information does not
32-68 render the management plan incomplete.
32-69 (d) A management plan takes effect on certification by the
33-1 Texas Water Development Board.
33-2 (e) The board may review the plan annually and must review
33-3 and readopt the plan with or without revisions at least once every
33-4 five years.
33-5 (f) If the Texas Water Development Board does not certify
33-6 the management plan, the Texas Water Development Board shall
33-7 provide to the district, in writing, the reasons for its action.
33-8 Not later than the 180th day after the date a district receives
33-9 notice that its management plan has not been certified, the
33-10 district may submit a revised management plan for review and
33-11 certification. The commission shall not take enforcement action
33-12 against a district under Subchapter I until the later of the
33-13 expiration of the 180-day period or the date the Texas Water
33-14 Development Board has taken final action withholding certification
33-15 of a revised management plan.
33-16 Sec. 36.1073. AMENDMENT TO MANAGEMENT PLAN. Any amendment
33-17 to the management plan shall be submitted to the Texas Water
33-18 Development Board within 60 days following adoption of the
33-19 amendment by the district's board. The Texas Water Development
33-20 Board shall review and certify any amendment which substantially
33-21 affects the management plan in accordance with the procedures
33-22 established under Section 36.1072.
33-23 SECTION 4.27. Subsection (a), Section 36.108, Water Code, is
33-24 amended to read as follows:
33-25 (a) If two or more districts are located within the
33-26 boundaries of the same management area, each district shall prepare
33-27 a comprehensive management plan as required by Section 36.1071
33-28 [36.107] covering that district's respective territory. On
33-29 completion of the plan, each district shall forward a copy of the
33-30 new revised management plan to the other districts in the
33-31 management area.
33-32 SECTION 4.28. Section 36.113, Water Code, is amended to read
33-33 as follows:
33-34 Sec. 36.113. PERMITS FOR WELLS. (a) A district shall
33-35 require permits for the drilling, equipping, or completing of
33-36 wells[,] or for substantially altering the size of wells or well
33-37 pumps.
33-38 (b) A district shall require that an application for a
33-39 permit be in writing and sworn to.
33-40 (c) A district may require that the following be included in
33-41 the permit application:
33-42 (1) the name and mailing address of the applicant and
33-43 the owner of the land on which the well will be located;
33-44 (2) if the applicant is other than the owner of the
33-45 property, documentation establishing the applicable authority to
33-46 construct and operate a well for the proposed use;
33-47 (3) a statement of the nature and purpose of the
33-48 proposed use and the amount of water to be used for each purpose;
33-49 (4) a water conservation plan or a declaration that
33-50 the applicant will comply with the district's management plan;
33-51 (5) the location of each well and the estimated rate
33-52 at which water will be withdrawn;
33-53 (6) a water well closure plan or a declaration that
33-54 the applicant will comply with well plugging guidelines and report
33-55 closure to the commission; and
33-56 (7) a drought contingency plan.
33-57 (d) Before granting or denying a permit, the district shall
33-58 consider whether:
33-59 (1) the application conforms to the requirements
33-60 prescribed by this chapter and is accompanied by the prescribed
33-61 fees;
33-62 (2) the proposed use of water unreasonably affects
33-63 existing groundwater and surface water resources;
33-64 (3) the proposed use of water is dedicated to any
33-65 beneficial use;
33-66 (4) the proposed use of water is consistent with the
33-67 district's certified water management plan;
33-68 (5) the applicant has agreed to avoid waste and
33-69 achieve water conservation; and
34-1 (6) the applicant has agreed that reasonable diligence
34-2 will be used to protect groundwater quality and that the applicant
34-3 will follow well plugging guidelines at the time of well closure.
34-4 (e) Permits may be issued subject to the rules promulgated
34-5 by the district and subject to terms and provisions with reference
34-6 to the drilling, equipping, completion, or alteration of wells or
34-7 pumps that may be necessary to [conserve the groundwater,] prevent
34-8 waste and achieve water conservation, minimize as far as
34-9 practicable the drawdown of the water table or the reduction of
34-10 artesian pressure, lessen interference between wells, or control
34-11 and prevent subsidence.
34-12 (f) A district may require that changes in the withdrawal
34-13 and use of groundwater under a permit not be made without the prior
34-14 approval of a permit amendment issued by the district.
34-15 SECTION 4.29. Subchapter D, Chapter 36, Water Code, is
34-16 amended by adding Section 36.1131 to read as follows:
34-17 Sec. 36.1131. ELEMENTS OF PERMIT. (a) A permit issued by
34-18 the district to the applicant under Section 36.113 shall state the
34-19 terms and provisions prescribed by the district.
34-20 (b) The permit may include:
34-21 (1) the name and address of the person to whom the
34-22 permit is issued;
34-23 (2) the location of the well;
34-24 (3) the date the permit is to expire if no well is
34-25 drilled;
34-26 (4) a statement of the purpose for which the well is
34-27 to be used;
34-28 (5) a requirement that the water withdrawn under the
34-29 permit be put to beneficial use at all times;
34-30 (6) the location of the use of the water from the
34-31 well;
34-32 (7) a water well closure plan or a declaration that
34-33 the applicant will comply with well plugging guidelines and report
34-34 closure to the commission;
34-35 (8) the conditions and restrictions, if any, placed on
34-36 the rate and amount of withdrawal;
34-37 (9) any conservation-oriented methods of drilling and
34-38 operating prescribed by the district;
34-39 (10) a drought contingency plan prescribed by the
34-40 district; and
34-41 (11) other terms and conditions as provided by Section
34-42 36.113.
34-43 SECTION 4.30. Subchapter E, Chapter 36, Water Code, is
34-44 amended by adding Sections 36.159, 36.160, and 36.161 to read as
34-45 follows:
34-46 Sec. 36.159. GROUNDWATER DISTRICT MANAGEMENT PLAN FUNDS.
34-47 The Texas Water Development Board may allocate funds from the
34-48 research and planning fund created under Subchapter F, Chapter 15,
34-49 to a district to conduct initial data collections under this
34-50 chapter, to develop and implement a long-term management plan under
34-51 Section 36.1071, and to participate in regional water plans.
34-52 Sec. 36.160. FUNDS. The Texas Water Development Board, the
34-53 commission, the Parks and Wildlife Department, the Texas
34-54 Agricultural Extension Service, and institutions of higher
34-55 education may allocate funds to carry out the objectives of this
34-56 chapter and Chapter 35, which include but are not limited to:
34-57 (1) conducting initial and subsequent studies and
34-58 surveys under Sections 36.106, 36.107, and 36.109;
34-59 (2) providing appropriate education in affected areas
34-60 identified in Section 35.007 relating to the problems and issues
34-61 concerning water management that may arise;
34-62 (3) processing priority groundwater management area
34-63 evaluations under this chapter and Chapter 35;
34-64 (4) providing technical and administrative assistance
34-65 to newly created districts under this chapter and Chapter 35;
34-66 (5) covering the costs of newspaper notices required
34-67 under Sections 35.009 and 36.014 and failed elections in accordance
34-68 with Sections 35.014(c), 36.017(h), and 36.019; and
34-69 (6) providing for assistance from the Parks and
35-1 Wildlife Department to the Texas Water Development Board or a
35-2 district for the purpose of assessing fish and wildlife resource
35-3 habitat needs as they may apply to overall management plan goals
35-4 and objectives of the district.
35-5 Sec. 36.161. ELIGIBILITY FOR FUNDING. (a) The Texas Water
35-6 Development Board may provide funds under Sections 36.159 and
35-7 36.160, Chapters 15, 16, and 17, and Subchapter L of this chapter
35-8 to a district if the Texas Water Development Board determines that
35-9 such funding will allow the district to comply or continue to
35-10 comply with provisions of this chapter.
35-11 (b) The Texas Water Development Board may, after notice and
35-12 hearing, discontinue funding described in Subsection (a) if the
35-13 Texas Water Development Board finds that the district is not using
35-14 the funds to comply with the provisions of this chapter.
35-15 (c) The Texas Water Development Board, when considering a
35-16 discontinuance under Subsection (b), shall give written notice of
35-17 the hearing to the district at least 20 days before the date set
35-18 for the hearing. The hearing shall be conducted in accordance with
35-19 Chapter 2001, Government Code, or the rules of the respective
35-20 agency. General notice of the hearing shall be given in accordance
35-21 with the rules of the agency.
35-22 (d) The Texas Water Development Board may delegate to the
35-23 State Office of Administrative Hearings the responsibility to
35-24 conduct a hearing under this section.
35-25 SECTION 4.31. Subchapter G, Chapter 36, Water Code, is
35-26 amended by adding Section 36.206 to read as follows:
35-27 Sec. 36.206. DISTRICT FEES. (a) A temporary board may set
35-28 user fees to pay for the creation and initial operation of a
35-29 district, until such time as the district creation has been
35-30 confirmed and a permanent board has been elected by a majority vote
35-31 of the qualified voters voting in the district in an election
35-32 called for those purposes.
35-33 (b) The rate of fees set for agricultural uses shall be no
35-34 more than 20 percent of the rate applied to municipal uses.
35-35 SECTION 4.32. Subchapter I, Chapter 36, Water Code, is
35-36 amended to read as follows:
35-37 SUBCHAPTER I. PERFORMANCE REVIEW AND DISSOLUTION [OF DISTRICT]
35-38 Sec. 36.301. FAILURE TO SUBMIT A MANAGEMENT PLAN. If a
35-39 board fails to submit a management plan or to receive certification
35-40 of its management plan under Section 36.1072 or fails to submit or
35-41 receive certification of an amendment to the management plan under
35-42 Section 36.1073, the commission shall take appropriate action under
35-43 Section 36.303.
35-44 Sec. 36.302. DETERMINATION OF WHETHER DISTRICT IS
35-45 OPERATIONAL. (a) The commission shall make a determination of
35-46 whether a district is actively engaged in achieving the objectives
35-47 of the district's management plan based on an audit of the
35-48 district's performance under the plan. The commission shall
35-49 conduct such audits following the first anniversary of the initial
35-50 certification of the plan by the Texas Water Development Board
35-51 under Section 36.1072 and following the end of every five-year
35-52 period thereafter.
35-53 (b) If the commission finds under Subsection (a) that the
35-54 district is not operational, the commission shall take appropriate
35-55 action under Section 36.303.
35-56 Sec. 36.303. ACTION BY COMMISSION. (a) After notice and
35-57 hearing in accordance with Chapter 2001, Government Code, the
35-58 commission may take actions the commission deems appropriate to
35-59 enforce compliance with rules or orders of the commission or
35-60 provisions of this chapter, including:
35-61 (1) issuing an order requiring the district to take
35-62 certain actions or to refrain from taking certain actions;
35-63 (2) dissolving the board in accordance with Sections
35-64 36.305 and 36.307;
35-65 (3) removing the district's taxing authority; or
35-66 (4) dissolving the district in accordance with
35-67 Sections 36.304, 36.305, and 36.308.
35-68 (b) In addition to actions identified under Subsection (a),
35-69 the commission may recommend to the legislature, based upon the
36-1 report required by Section 35.018 of this code, actions the
36-2 commission deems necessary to accomplish comprehensive management
36-3 in the district.
36-4 Sec. 36.304 [36.301]. DISSOLUTION OF DISTRICT. (a) The
36-5 [After notice and hearing, the] commission may dissolve a district
36-6 that:
36-7 (1) is not operational, as determined under Section
36-8 36.302 [has been inactive for a period of three consecutive years];
36-9 and
36-10 (2) has no outstanding bonded indebtedness.
36-11 (b) A district composed of territory entirely within one
36-12 county may be dissolved even if the district [it] has outstanding
36-13 indebtedness that matures after the year in which the district is
36-14 dissolved, whereupon the commissioners court shall levy and collect
36-15 taxes on all taxable property in the district in an amount
36-16 sufficient to pay the principal of and interest on the indebtedness
36-17 when due. The taxes shall be levied and collected in the same
36-18 manner as county taxes.
36-19 [(c) A district is considered active if:]
36-20 [(1) the district has a board as required by
36-21 Subchapter D;]
36-22 [(2) the board holds regularly scheduled meetings and
36-23 has on file minutes of its meetings;]
36-24 [(3) the district has developed and filed with the
36-25 commission a management plan for the district;]
36-26 [(4) the district has copies of drillers' logs on
36-27 file;]
36-28 [(5) the district has on file well permits issued by
36-29 the district; and]
36-30 [(6) the district has on file annual district audits.]
36-31 Sec. 36.305 [36.302]. NOTICE OF HEARING FOR DISSOLUTION OF
36-32 BOARD OR DISTRICT. (a) The commission shall give notice of the
36-33 [dissolution] hearing for dissolution of a district or of a board
36-34 which briefly describes the reasons for the proceeding.
36-35 (b) The notice shall be published once each week for two
36-36 consecutive weeks before the day of hearing in a [some] newspaper
36-37 having general circulation in the county or counties in which the
36-38 district is located. The first publication shall be 30 days before
36-39 the day of the hearing.
36-40 (c) The commission shall give notice of the hearing by first
36-41 class mail addressed to the directors of the district according to
36-42 the last record on file with the executive director.
36-43 Sec. 36.306 [36.303]. INVESTIGATION. The executive director
36-44 shall investigate the facts and circumstances of any violations of
36-45 any rule or order of the commission or any provisions of this
36-46 chapter and shall prepare and file a written report with the
36-47 commission and district and include any actions the executive
36-48 director believes the commission should take under Section 36.303.
36-49 Sec. 36.307. ORDER OF DISSOLUTION OF BOARD. If the
36-50 commission enters an order to dissolve the board, the commission
36-51 shall notify the county commissioners court of each county which
36-52 contains territory in the district and the commission shall provide
36-53 that temporary directors be appointed under Section 36.016 to serve
36-54 until an election for a new board can be held under Section 36.017,
36-55 provided, however, that district confirmation shall not be required
36-56 for continued existence of the district and shall not be an issue
36-57 in the election [the district to be dissolved and the result of
36-58 the investigation shall be included in a written report].
36-59 [Sec. 36.304. ORDER OF DISSOLUTION. The commission may
36-60 enter an order dissolving the district at the conclusion of the
36-61 hearing if it finds that the district has performed none of the
36-62 functions for which it was created for a period of three
36-63 consecutive years before the day of the proceeding and that the
36-64 district has no outstanding bonded indebtedness.]
36-65 Sec. 36.308 [36.305]. CERTIFIED COPY OF ORDER. The
36-66 commission shall file a certified copy of the order of dissolution
36-67 of the district in the deed records of the county or counties in
36-68 which the district is located. If the district was created by a
36-69 special Act of the legislature, the commission shall file a
37-1 certified copy of the order of dissolution with the secretary of
37-2 state.
37-3 Sec. 36.309 [36.306]. APPEALS. [(a)] Appeals from any [a]
37-4 commission order [dissolving a district] shall be filed and heard
37-5 in the district court of any of the counties in which the land is
37-6 located.
37-7 [(b) The trial on appeal shall be de novo and the
37-8 substantial evidence rule shall not apply.]
37-9 Sec. 36.310 [36.307]. ASSETS ESCHEAT TO STATE. Upon the
37-10 dissolution of a district by the commission, all assets of the
37-11 district shall be sold at public auction and the proceeds given to
37-12 the county if it is a single-county district. If it is a
37-13 multicounty district, the proceeds shall be divided with the
37-14 counties in proportion to the surface land area in each county
37-15 served by the district [escheat to the State of Texas. The assets
37-16 shall be administered by the state treasurer and shall be disposed
37-17 of in the manner provided by Chapter 72, Property Code].
37-18 SECTION 4.33. Subsection (b), Section 36.325, Water Code, is
37-19 amended to read as follows:
37-20 (b) The petition must be signed by:
37-21 (1) a majority of the landowners in the territory;
37-22 (2) at least 50 landowners if the number of landowners
37-23 is more than 50; or
37-24 (3) the commissioners court of the county in which the
37-25 area is located if the area is identified as a priority groundwater
37-26 management [critical] area or includes the entire county. The
37-27 petition must describe the land by legal description or by metes
37-28 and bounds or by lot and block number if there is a recorded plat
37-29 of the area to be included in the district.
37-30 SECTION 4.34. Section 36.331, Water Code, is amended to read
37-31 as follows:
37-32 Sec. 36.331. ANNEXATION OF NONCONTIGUOUS TERRITORY. Land
37-33 not contiguous to the existing boundaries of a district may not be
37-34 added to or annexed to a district unless the land is located either
37-35 within the same management area, priority groundwater management
37-36 [critical] area, or a groundwater subdivision designated by the
37-37 commission or its predecessors.
37-38 SECTION 4.35. Chapter 36, Water Code, is amended by adding
37-39 Subchapter L to read as follows:
37-40 SUBCHAPTER L. GROUNDWATER DISTRICT LOAN ASSISTANCE FUND
37-41 Sec. 36.371. GROUNDWATER DISTRICT LOAN ASSISTANCE FUND.
37-42 (a) The groundwater district loan assistance fund is created, to
37-43 be funded by direct appropriation and by the Texas Water
37-44 Development Board from the water assistance fund.
37-45 (b) Repayments of loans shall be deposited in the water
37-46 assistance fund.
37-47 Sec. 36.372. FINANCIAL ASSISTANCE. (a) The loan fund may
37-48 be used by the Texas Water Development Board to provide loans to
37-49 newly confirmed districts and legislatively created districts that
37-50 do not require a confirmation election to pay for their creation
37-51 and initial operations.
37-52 (b) The Texas Water Development Board shall establish rules
37-53 for the use and administration of the loan fund.
37-54 Sec. 36.373. APPLICATION FOR ASSISTANCE. (a) In an
37-55 application to the Texas Water Development Board for financial
37-56 assistance from the loan fund, the applicant shall include:
37-57 (1) the name of the district and its board members;
37-58 (2) a citation of the law under which the district
37-59 operates and was created;
37-60 (3) a description of the initial operations;
37-61 (4) the total start-up cost of the initial operations;
37-62 (5) the amount of state financial assistance
37-63 requested;
37-64 (6) the plan for repaying the total cost of the loan;
37-65 and
37-66 (7) any other information the Texas Water Development
37-67 Board may require to perform its duties and protect the public
37-68 interest.
37-69 (b) The Texas Water Development Board may not accept an
38-1 application for a loan from the loan fund unless it is submitted in
38-2 affidavit form by the applicant's board. The Texas Water
38-3 Development Board shall prescribe the affidavit form in its rules.
38-4 (c) The rules implementing this section shall not restrict
38-5 or prohibit the Texas Water Development Board from requiring
38-6 additional factual material from an applicant.
38-7 Sec. 36.374. APPROVAL OF APPLICATION. The Texas Water
38-8 Development Board, by resolution, may approve an application if it
38-9 finds that:
38-10 (1) granting financial assistance to the applicant
38-11 will serve the public interest; and
38-12 (2) the revenue pledged by the applicant from district
38-13 taxes and fees and other sources will be sufficient to meet all the
38-14 obligations assumed by the applicant.
38-15 SECTION 4.36. Subsection (g), Section 151.318, Tax Code, is
38-16 amended to read as follows:
38-17 (g) Each person engaged in manufacturing, processing,
38-18 fabricating, or repairing tangible personal property for ultimate
38-19 sale is entitled to a refund or a reduction in the amount of tax
38-20 imposed by this chapter as provided by Subsection (h) for the
38-21 purchase of machinery, equipment, and replacement parts or
38-22 accessories with a useful life in excess of six months if the
38-23 equipment is:
38-24 (1) used or consumed in or during the actual
38-25 manufacturing, processing, fabrication, or repair of tangible
38-26 personal property for ultimate sale, and the use or consumption of
38-27 the property is necessary or essential to the manufacturing,
38-28 processing, fabrication, or repair operation, or to a pollution
38-29 control process; or
38-30 (2) specifically installed to:
38-31 (A) reduce water use and wastewater flow volumes
38-32 from the manufacturing, processing, fabrication, or repair
38-33 operation;
38-34 (B) reuse and recycle wastewater streams
38-35 generated within the manufacturing, processing, fabrication, or
38-36 repair operation; or
38-37 (C) treat wastewater from another industrial or
38-38 municipal source for the purpose of replacing existing freshwater
38-39 sources in the manufacturing, processing, fabrication, or repair
38-40 operation.
38-41 SECTION 4.37. (a) Sections 35.010, 35.011, and 35.016,
38-42 Water Code, are repealed.
38-43 (b) Section 5.02, Chapter 133, Acts of the 69th Legislature,
38-44 Regular Session, 1985, is repealed.
38-45 SECTION 4.38. (a) In this section, "district" means a
38-46 groundwater conservation district created under Section 52, Article
38-47 III, or Section 59, Article XVI, Texas Constitution, that has the
38-48 authority to regulate the spacing of water wells, the production
38-49 from water wells, or both.
38-50 (b) Notwithstanding the time limitation under Subsection
38-51 (a), Section 36.1072, Water Code, as added by this Act, and
38-52 notwithstanding any provision to the contrary in prior law, a
38-53 district which was created or, if the district required a
38-54 confirmation election, a district whose creation was confirmed
38-55 before the effective date of this Act shall submit a management
38-56 plan for certification under Section 36.1072, Water Code, as added
38-57 by this Act, to the Texas Water Development Board not later than
38-58 September 1, 1998.
38-59 SECTION 4.39. An area designated as a critical area under
38-60 Chapter 35, Water Code, as it existed before the effective date of
38-61 this Act, or under other prior law, shall be known and referred to
38-62 as a priority groundwater management area on or after the effective
38-63 date of this Act.
38-64 SECTION 4.40. Not later than September 1, 1998, the Texas
38-65 Natural Resource Conservation Commission must, under Chapter 35,
38-66 Water Code, as amended by this Act, make all designations of
38-67 priority groundwater management areas for which critical area
38-68 reports were required to have been completed before the effective
38-69 date of this Act under Section 35.007, Water Code, as that section
39-1 existed immediately before the effective date of this Act.
39-2 ARTICLE 5. FINANCIAL ASSISTANCE FOR WATER NEEDS AND
39-3 CONSERVATION
39-4 SECTION 5.01. Section 15.431, Water Code, is amended by
39-5 amending Subsection (d) and adding Subsection (g) to read as
39-6 follows:
39-7 (d) Money appropriated by the legislature to be maintained
39-8 as principal in the fund, $10 million of the money transferred to
39-9 that fund by H.B. No. 2, Acts of the 69th Legislature, Regular
39-10 Session, 1985, and half of the money earned as interest on the
39-11 money held as principal in the agricultural trust fund shall be
39-12 maintained as principal. Money maintained as principal in the
39-13 agricultural trust fund may [not] be used by the board to make
39-14 conservation loans to borrower districts and loans to lender
39-15 districts for the purposes listed in Section 17.895 of this code.
39-16 Loans and conservation loans made under this subchapter are subject
39-17 to the provisions of Sections 17.896 through 17.903 of this code.
39-18 Repayments of principal and interest on loans and conservation
39-19 loans made under this subchapter shall be deposited in the
39-20 agricultural trust fund [spent for any purpose].
39-21 (g) In this section, "borrower district," "conservation
39-22 loan," "individual borrower," "lender district," and "loan" have
39-23 the meanings assigned those terms by Section 17.871 of this code.
39-24 SECTION 5.02. Section 16.189, Water Code, is amended to read
39-25 as follows:
39-26 Sec. 16.189. LEASE PAYMENTS. In leasing a state facility
39-27 for a term of years, the board shall require [annual] payments that
39-28 will recover over the lease period not less than the total of:
39-29 (1) all [the annual] principal and interest
39-30 requirements applicable to the debt incurred by the state in
39-31 acquiring the facility; and
39-32 (2) the state's [annual] cost for operation,
39-33 maintenance, and rehabilitation of the facility.
39-34 SECTION 5.03. Chapter 17, Water Code, is amended by adding
39-35 Subchapter L to read as follows:
39-36 SUBCHAPTER L. WATER FINANCIAL ASSISTANCE BOND PROGRAM
39-37 Sec. 17.951. DEFINITIONS. In this subchapter:
39-38 (1) "Fund" means the Texas Water Development Fund II.
39-39 (2) "Resolution" means any resolution or order
39-40 approved by the board authorizing the issuance of water financial
39-41 assistance bonds.
39-42 Sec. 17.952. ISSUANCE OF WATER FINANCIAL ASSISTANCE BONDS.
39-43 The board by resolution may provide for the issuance of water
39-44 financial assistance bonds, which shall be general obligation bonds
39-45 of the state, in an aggregate principal amount not to exceed the
39-46 principal amount authorized to be issued by Section 49-d-8, Article
39-47 III, Texas Constitution.
39-48 Sec. 17.953. CONDITIONS FOR ISSUANCE OF WATER FINANCIAL
39-49 ASSISTANCE BONDS. (a) Water financial assistance bonds may be
39-50 issued as various series and issues.
39-51 (b) Water financial assistance bonds may mature, serially or
39-52 otherwise, not later than 50 years after the date on which they are
39-53 issued.
39-54 (c) Water financial assistance bonds may be issued as bonds,
39-55 notes, or other obligations as permitted by law and may be in the
39-56 form and denominations and be issued in the manner and under the
39-57 terms, conditions, and details as provided by resolution.
39-58 (d) Water financial assistance bonds may be sold at public
39-59 or private sale at a price or prices and on terms determined by the
39-60 board.
39-61 (e) Water financial assistance bonds shall be signed and
39-62 executed as provided by resolution.
39-63 (f) Water financial assistance bonds may bear no interest or
39-64 bear interest at a rate or rates determined in accordance with law.
39-65 (g) Rates of interest on water financial assistance bonds
39-66 may be fixed, variable, floating, adjustable, or otherwise, as
39-67 determined by the board or determined pursuant to any contractual
39-68 arrangements approved by the board. The resolution may provide for
39-69 the payment of interest at any time or the periodic determination
40-1 of interest rates or interest rate periods.
40-2 Sec. 17.954. BOND ENHANCEMENT AGREEMENTS; PAYMENT OF
40-3 EXPENSES. (a) The board at any time and from time to time may
40-4 enter into one or more bond enhancement agreements that the board
40-5 determines to be necessary or appropriate to place the obligation
40-6 of the board, as represented by the water financial assistance
40-7 bonds, in whole or in part, on the interest rate, currency, cash
40-8 flow, or other basis desired by the board. A bond enhancement
40-9 agreement is an agreement for professional services and shall
40-10 contain the terms and conditions and be for the period that the
40-11 board approves.
40-12 (b) The fees and expenses of the board in connection with
40-13 the issuance of water financial assistance bonds and the providing
40-14 of financial assistance to political subdivisions may be paid from
40-15 money in the fund, provided that any payments due from the board
40-16 under a bond enhancement agreement, other than fees and expenses,
40-17 that relate to the payment of debt service on water financial
40-18 assistance bonds constitute payments of principal of and interest
40-19 on the water financial assistance bonds.
40-20 (c) Bond enhancement agreements may include, on terms and
40-21 conditions approved by the board, interest rate swap agreements;
40-22 currency swap agreements; forward payment conversion agreements;
40-23 agreements providing for payments based on levels of or changes in
40-24 interest rates or currency exchange rates; agreements to exchange
40-25 cash flows or a series of payments; agreements, including options,
40-26 puts, or calls, to hedge payment, currency, rate, spread, or other
40-27 exposure; or other agreements that further enhance the
40-28 marketability, security, or creditworthiness of water financial
40-29 assistance bonds.
40-30 Sec. 17.955. PERSONS DESIGNATED TO ACT AS AGENTS OF BOARD.
40-31 (a) In the resolution the board may delegate authority to one or
40-32 more officers, employees, or agents designated by the board to act
40-33 on behalf of the board during the time any series of water
40-34 financial assistance bonds are outstanding to:
40-35 (1) fix dates, prices, interest rates, amortization
40-36 schedules, redemption features, and interest payment periods;
40-37 (2) perform duties and obligations of the board under
40-38 a bond enhancement agreement; and
40-39 (3) perform other procedures specified in the
40-40 resolution.
40-41 (b) The person designated by the board may adjust the
40-42 interest on water financial assistance bonds and perform all duties
40-43 described in a bond enhancement agreement as necessary to permit
40-44 the water financial assistance bonds to be sold or resold at par in
40-45 conjunction with secondary market transactions.
40-46 Sec. 17.956. TEXAS WATER DEVELOPMENT FUND II. The fund is a
40-47 special fund in the state treasury, and all water financial
40-48 assistance bond proceeds shall be deposited in the state treasury
40-49 to the credit of the fund. The fund shall contain a "state
40-50 participation account," an "economically distressed areas program
40-51 account," and a "financial assistance account," and proceeds from
40-52 the sale of water financial assistance bonds issued for the purpose
40-53 of providing financial assistance to political subdivisions shall
40-54 be credited to such accounts as provided by resolution by the
40-55 board. By resolution, the board may create additional accounts
40-56 within the fund as the board determines are necessary or convenient
40-57 for the administration of the fund.
40-58 Sec. 17.957. STATE PARTICIPATION ACCOUNT. (a) The Texas
40-59 Water Development Fund II state participation account, referred to
40-60 as the "state participation account," is an account established
40-61 within the fund in the state treasury. Transfers shall be made
40-62 from this account as provided by this subchapter.
40-63 (b) The state participation account is composed of:
40-64 (1) money and assets attributable to water financial
40-65 assistance bonds designated by the board as issued for projects
40-66 described in Section 16.131;
40-67 (2) money from the sale, transfer, or lease of a
40-68 project described in Subdivision (1) that was acquired,
40-69 constructed, reconstructed, developed, or enlarged with money from
41-1 the state participation account;
41-2 (3) payments received under a bond enhancement
41-3 agreement with respect to water financial assistance bonds
41-4 designated by the board as issued for projects described in Section
41-5 16.131;
41-6 (4) investment income earned on money on deposit in
41-7 the state participation account; and
41-8 (5) any other funds, regardless of their source, that
41-9 the board directs be deposited to the credit of the state
41-10 participation account.
41-11 (c) Money on deposit in the state participation account may
41-12 be used by the board for projects described in Section 16.131 in
41-13 the manner that the board determines necessary for the
41-14 administration of the fund.
41-15 Sec. 17.958. ECONOMICALLY DISTRESSED AREAS PROGRAM ACCOUNT.
41-16 (a) The Texas Water Development Fund II economically distressed
41-17 areas program account, referred to as the "economically distressed
41-18 areas program account," is an account established within the fund
41-19 in the state treasury. Transfers shall be made from this account
41-20 as provided by this subchapter.
41-21 (b) The economically distressed areas program account is
41-22 composed of:
41-23 (1) money and assets attributable to water financial
41-24 assistance bonds designated by the board as issued for projects
41-25 described in Subchapter K;
41-26 (2) money provided by the federal government, the
41-27 state, political subdivisions, and private entities for the purpose
41-28 of paying debt service on water financial assistance bonds issued
41-29 for purposes provided by Subchapter K;
41-30 (3) payments received under a bond enhancement
41-31 agreement with respect to water financial assistance bonds
41-32 designated by the board as issued for purposes provided by
41-33 Subchapter K;
41-34 (4) investment income earned on money on deposit in
41-35 the economically distressed areas program account; and
41-36 (5) any other funds, regardless of their source, that
41-37 the board directs be deposited to the credit of the economically
41-38 distressed areas program account.
41-39 (c) Money on deposit in the economically distressed areas
41-40 program account may be used by the board for purposes provided by
41-41 Subchapter K in the manner that the board determines necessary for
41-42 the administration of the fund.
41-43 Sec. 17.959. FINANCIAL ASSISTANCE ACCOUNT. (a) The Texas
41-44 Water Development Fund II water financial assistance account,
41-45 referred to as the "financial assistance account," is an account
41-46 established within the fund in the state treasury. Transfers shall
41-47 be made from this account as provided by this subchapter.
41-48 (b) The financial assistance account is composed of:
41-49 (1) money and assets attributable to water financial
41-50 assistance bonds designated by the board as issued for purposes
41-51 described in Section 49-d-8, Article III, Texas Constitution, other
41-52 than for purposes described in Sections 17.957 and 17.958;
41-53 (2) payments received under a bond enhancement
41-54 agreement with respect to water financial assistance bonds
41-55 designated by the board as issued for purposes described in Section
41-56 49-d-8, Article III, Texas Constitution, other than for purposes
41-57 described in Sections 17.957 and 17.958;
41-58 (3) investment income earned on money on deposit in
41-59 the financial assistance account; and
41-60 (4) any other funds, regardless of their source, that
41-61 the board directs be deposited to the credit of the financial
41-62 assistance account.
41-63 (c) Money on deposit in the financial assistance account may
41-64 be used by the board for any one or more of the purposes described
41-65 in Section 49-d-8, Article III, Texas Constitution, other than for
41-66 purposes described in Sections 17.957 and 17.958, in the manner
41-67 that the board determines necessary for the administration of the
41-68 fund.
41-69 Sec. 17.960. BOND RESOLUTIONS. (a) In the resolution, the
42-1 board may make additional covenants with respect to water financial
42-2 assistance bonds and may provide for:
42-3 (1) the flow of funds;
42-4 (2) the establishment of accounts and subaccounts
42-5 within the fund that the board determines are necessary for the
42-6 administration of the fund;
42-7 (3) at the discretion of the board, the payment of
42-8 fees and expenses of the board in connection with providing
42-9 financial assistance to political subdivisions as the board
42-10 determines are necessary for the administration of the fund;
42-11 (4) the maintenance, investment, and management of
42-12 money within the fund and any accounts established by resolution by
42-13 the board; and
42-14 (5) any other provisions and covenants that the board
42-15 determines are necessary for the administration of the fund.
42-16 (b) The board may invest and reinvest money in the fund and
42-17 any account therein in any obligations or securities as provided by
42-18 the resolution or by rule adopted by the board.
42-19 (c) The board may adopt and have executed other proceedings,
42-20 agreements, or trust agreements or instruments necessary in the
42-21 issuance of water financial assistance bonds, including, without
42-22 limitation, bond enhancement agreements.
42-23 Sec. 17.961. TRANSFERS TO REVOLVING FUNDS. (a) In order to
42-24 implement and administer a revolving loan program established under
42-25 Title VI of the Federal Water Pollution Control Act (33 U.S.C.
42-26 Section 1381 et seq.), the board may direct the comptroller to
42-27 transfer amounts from the financial assistance account to the state
42-28 water pollution control revolving fund created by Section 15.601 to
42-29 provide financial assistance pursuant to this subchapter.
42-30 (b) In order to implement and administer a revolving loan
42-31 program established by any other federal legislation, including,
42-32 without limitation, Title XIV of the federal Public Health Service
42-33 Act, or any federal agency program under which an additional state
42-34 revolving fund, as defined in Section 15.602, has been established,
42-35 the board may direct the comptroller to transfer amounts from the
42-36 financial assistance account to such additional state revolving
42-37 fund to provide financial assistance pursuant to this subchapter.
42-38 (c) The board shall use the state water pollution control
42-39 revolving fund in accordance with Section 15.604(a)(4) and Section
42-40 603(d)(4), Federal Water Pollution Control Act (33 U.S.C. Section
42-41 1383), as a source of revenue to be deposited in accordance with
42-42 this subchapter for the payment of principal and interest on water
42-43 financial assistance bonds issued by the board, the proceeds of
42-44 which are deposited into the state water pollution control
42-45 revolving fund, and to make payments under a bond enhancement
42-46 agreement with respect to principal or interest on the water
42-47 financial assistance bonds.
42-48 (d) In the event amounts are transferred to any additional
42-49 state revolving fund, as defined in Section 15.602, pursuant to
42-50 Subsection (b), the board shall, to the extent permitted by the
42-51 federal legislation or federal agency program under which such
42-52 additional state revolving fund was established, use the additional
42-53 state revolving fund as a source of revenue to be deposited in
42-54 accordance with this subchapter for the payment of principal and
42-55 interest on water financial assistance bonds issued by the board,
42-56 the proceeds of which are deposited into the additional state
42-57 revolving fund, and to make payments under a bond enhancement
42-58 agreement with respect to principal or interest on the water
42-59 financial assistance bonds.
42-60 Sec. 17.962. STATE APPROVALS. (a) Water financial
42-61 assistance bonds may not be issued under this subchapter unless
42-62 such issuance has been reviewed and approved by the bond review
42-63 board.
42-64 (b) The proceedings relating to the water financial
42-65 assistance bonds issued under this subchapter are subject to review
42-66 and approval by the attorney general in the same manner and with
42-67 the same effect as provided by Chapter 656, Acts of the 68th
42-68 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
42-69 Civil Statutes).
43-1 (c) After approval by the attorney general of the
43-2 proceedings relating to water financial assistance bonds issued
43-3 under this subchapter, registration of the proceedings by the
43-4 comptroller, and delivery of the water financial assistance bonds
43-5 to the purchasers, the water financial assistance bonds are
43-6 incontestable and constitute general obligations of the state.
43-7 Sec. 17.963. PAYMENT OF BOARD OBLIGATIONS. (a) The board
43-8 shall cooperate with the comptroller to develop procedures for the
43-9 payment of principal and interest on water financial assistance
43-10 bonds and any obligation under a bond enhancement agreement, as the
43-11 same become due and owing.
43-12 (b) If there is not enough money in any account of the fund
43-13 available to pay the principal and interest on water financial
43-14 assistance bonds issued for such account, including money to make
43-15 payments by the board under a bond enhancement agreement with
43-16 respect to principal or interest on such water financial assistance
43-17 bonds, the board shall notify the comptroller of such occurrence,
43-18 and the comptroller shall transfer out of the first money coming
43-19 into the state treasury not otherwise appropriated by the
43-20 constitution the amount required to pay the obligations of the
43-21 board that are due and owing. The comptroller shall make the
43-22 transfers required by Section 49-d-8, Article III, Texas
43-23 Constitution, and this subchapter in the manner specified in the
43-24 resolution.
43-25 Sec. 17.964. ELIGIBLE SECURITY. Water financial assistance
43-26 bonds are eligible to secure deposits of public funds of the state
43-27 and political subdivisions of the state. Water financial
43-28 assistance bonds are lawful and sufficient security for deposits to
43-29 the extent of their face value.
43-30 Sec. 17.965. LEGAL INVESTMENTS. Water financial assistance
43-31 bonds are legal and authorized investments for:
43-32 (1) banks;
43-33 (2) savings banks;
43-34 (3) trust companies;
43-35 (4) savings and loan associations;
43-36 (5) insurance companies;
43-37 (6) fiduciaries;
43-38 (7) trustees;
43-39 (8) guardians; and
43-40 (9) sinking funds and other public funds of the state
43-41 and its agencies and of political subdivisions of the state.
43-42 Sec. 17.966. MUTILATED, LOST, OR DESTROYED BONDS. The board
43-43 may provide for the replacement of mutilated, lost, or destroyed
43-44 water financial assistance bonds.
43-45 Sec. 17.967. REFUNDING BONDS. (a) The board by resolution
43-46 may provide for the issuance of water financial assistance bonds to
43-47 refund outstanding bonds and water financial assistance bonds
43-48 issued under this chapter and federal contractual obligations
43-49 incurred under Section 49-d, Article III, Texas Constitution.
43-50 (b) The board may sell the refunding water financial
43-51 assistance bonds and use the proceeds to retire any of the
43-52 outstanding obligations described in Subsection (a), exchange the
43-53 refunding water financial assistance bonds for the outstanding
43-54 bonds or water financial assistance bonds, or refund any of the
43-55 outstanding obligations described in Subsection (a) in the manner
43-56 provided by any other applicable statute, including Chapter 503,
43-57 Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas
43-58 Civil Statutes), and Chapter 784, Acts of the 61st Legislature,
43-59 Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
43-60 Statutes).
43-61 Sec. 17.968. SALE OF POLITICAL SUBDIVISION BONDS BY THE
43-62 BOARD; USE OF PROCEEDS. (a) The board may sell or dispose of
43-63 political subdivision bonds purchased with money in the fund to any
43-64 person, including the Texas Water Resources Finance Authority, and
43-65 the board, in such manner as it shall determine, may apply the
43-66 proceeds of the sale of political subdivision bonds held by the
43-67 board to:
43-68 (1) pay debt service on water financial assistance
43-69 bonds issued under this subchapter; or
44-1 (2) provide financial assistance to political
44-2 subdivisions for any one or more of the purposes authorized by
44-3 Section 49-d-8, Article III, Texas Constitution.
44-4 (b) The board shall sell the political subdivision bonds at
44-5 the price and under the terms that it determines to be reasonable.
44-6 Sec. 17.969. TAX EXEMPT BONDS. Since the board is
44-7 performing an essential governmental function in the exercise of
44-8 the powers conferred on it by this chapter, water financial
44-9 assistance bonds issued under this subchapter and the interest and
44-10 income from the water financial assistance bonds, including any
44-11 profit made on the sale of water financial assistance bonds, and
44-12 all fees, charges, gifts, grants, revenues, receipts, and other
44-13 money received or pledged to pay or secure the payment of water
44-14 financial assistance bonds are free from taxation and assessments
44-15 of every kind by this state and any city, county, district,
44-16 authority, or other political subdivision of this state.
44-17 Sec. 17.970. ENFORCEMENT BY MANDAMUS. Payment of water
44-18 financial assistance bonds and obligations incurred under bond
44-19 enhancement agreements and performance of official duties
44-20 prescribed by Section 49-d-8, Article III, Texas Constitution, and
44-21 this subchapter may be enforced in a court of competent
44-22 jurisdiction by mandamus or other appropriate proceedings.
44-23 Sec. 17.971. SUBCHAPTER CUMULATIVE OF OTHER LAWS. (a) This
44-24 subchapter is cumulative of other laws on the subject, and the
44-25 board may use provisions of other applicable laws in the issuance
44-26 of water financial assistance bonds and the execution of bond
44-27 enhancement agreements, but this subchapter is wholly sufficient
44-28 authority for the issuance of water financial assistance bonds, the
44-29 execution of bond enhancement agreements, and the performance of
44-30 all other acts and procedures authorized by this subchapter.
44-31 (b) In addition to other authority granted by this
44-32 subchapter, the board may exercise the authority granted to the
44-33 governing body of an issuer with regard to the issuance of
44-34 obligations under Chapter 656, Acts of the 68th Legislature,
44-35 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
44-36 Statutes).
44-37 (c) In exercising the powers granted to the board under this
44-38 subchapter, the board may exercise any powers granted to it under
44-39 this chapter and Chapter 16 including the powers described in
44-40 Subchapters D, E, F, G, and K, notwithstanding any provision in
44-41 this chapter or Chapter 16 that may be inconsistent with or in
44-42 conflict with the provisions of this subchapter as a result of the
44-43 establishment of the fund as a fund separate and distinct from the
44-44 existing Texas Water Development Fund, it being the intent of the
44-45 legislature that the financial assistance made available to
44-46 political subdivisions under this subchapter, in pursuance of the
44-47 authority granted by Section 49-d-8, Article III, Texas
44-48 Constitution, be provided by the board in the manner the board
44-49 deems necessary to achieve the purposes of Section 49-d-8, Article
44-50 III, Texas Constitution, and notwithstanding any other existing
44-51 provisions in this chapter or Chapter 16, the provisions of this
44-52 chapter and Chapter 16 shall be inclusive of the provisions of this
44-53 subchapter and Section 49-d-8, Article III, Texas Constitution.
44-54 SECTION 5.04. Subdivision (7), Section 17.001, Water Code,
44-55 is amended to read as follows:
44-56 (7) "Water supply project" means:
44-57 (A) any engineering undertaking or work to
44-58 conserve and develop [surface or subsurface] water resources of the
44-59 state, including the control, storage, and preservation of its
44-60 storm water and floodwater and the water of its rivers and streams
44-61 for all useful and lawful purposes by the acquisition, improvement,
44-62 extension, or construction of dams, reservoirs, brush control,
44-63 precipitation enhancement, desalinization, and other water storage
44-64 and conservation projects, which may include flood storage,
44-65 including underground storage projects, filtration and water
44-66 treatment plants, including any system necessary to transport water
44-67 from storage to points of distribution or from storage to
44-68 filtration and treatment plants, including facilities for
44-69 transporting water therefrom to wholesale purchasers or to retail
45-1 purchasers as authorized by Section 17.072(c) of this code, by the
45-2 acquisition, by purchase of rights in [underground] water, by the
45-3 drilling of wells, or for any one or more of these purposes or
45-4 methods; [or]
45-5 (B) any engineering undertaking or work outside
45-6 the state to provide for the maintenance and enhancement of the
45-7 quality of water by eliminating saline inflow through well pumping
45-8 and deep well injection of brine if such undertaking or work
45-9 results in water being available for use in or for the benefit of
45-10 Texas; or
45-11 (C) any undertaking or work by Texas political
45-12 subdivisions to conserve, convey, or develop water resources in
45-13 areas outside Texas if such undertaking or work results in water
45-14 being available for use in or for the benefit of Texas.
45-15 SECTION 5.05. Section 17.001, Water Code, is amended by
45-16 amending Subdivision (17) and adding Subdivision (25) to read as
45-17 follows:
45-18 (17) "Financial assistance" means any loan of funds
45-19 from the water supply account, the water quality enhancement
45-20 account, or the flood control account to a political subdivision
45-21 for construction of a water supply project, including projects
45-22 referenced in the state water plan, treatment works, or flood
45-23 control measures through the purchase of bonds or other obligations
45-24 of the political subdivision, and any loan of funds the source of
45-25 which is the proceeds from water financial assistance bonds.
45-26 (25) "Water financial assistance bonds" means the
45-27 Texas Water Development Bonds authorized to be issued by Section
45-28 49-d-8, Article III, Texas Constitution, and dedicated to use for
45-29 the purposes described in that section.
45-30 SECTION 5.06. Section 17.011, Water Code, is amended by
45-31 adding Subsection (c) to read as follows:
45-32 (c) Notwithstanding any other provision of this section, the
45-33 board by resolution may issue water financial assistance bonds for
45-34 any one or more of the purposes described in Section 49-d-8,
45-35 Article III, Texas Constitution, in an aggregate principal amount
45-36 not to exceed the amount of bonds authorized by Section 49-d-8,
45-37 Article III, Texas Constitution, in accordance with the provisions
45-38 of Subchapter L.
45-39 SECTION 5.07. Section 17.0111, Water Code, is amended to
45-40 read as follows:
45-41 Sec. 17.0111. DEDICATION OF CERTAIN BONDS. No more than
45-42 $250,000,000 in principal [Fifty percent of the] amount of bonds
45-43 authorized by Article III, Section 49-d-7, of the Texas
45-44 Constitution, and issued under either that section or Article III,
45-45 Section 49-d-8, of the Texas Constitution, may be [is] dedicated to
45-46 the purposes provided by Subchapter K [of this chapter].
45-47 SECTION 5.08. Section 17.182, Water Code, is amended to read
45-48 as follows:
45-49 Sec. 17.182. PROCEEDS FROM SALE. Unless used to pay debt
45-50 service on bonds issued under this chapter, the proceeds from the
45-51 sale of political subdivision bonds held by the board either shall
45-52 be credited to the account from which financial assistance was made
45-53 to the political subdivision, except that accrued interest shall be
45-54 credited to the interest and sinking fund, or shall be deposited to
45-55 the credit of the Texas Water Development Fund II, established
45-56 within the state treasury pursuant to Section 49-d-8, Article III,
45-57 Texas Constitution. However, no such proceeds shall be deposited
45-58 to the credit of the Texas Water Development Fund II unless the
45-59 executive administrator certifies to the board that the transfer of
45-60 such proceeds into the Texas Water Development Fund II will not
45-61 cause the board, in the fiscal year the transfer is made, to direct
45-62 the comptroller to transfer out of the first money coming into the
45-63 state treasury during that fiscal year funds sufficient for the
45-64 payment of principal of or interest on water development bonds,
45-65 other than water development bonds issued for the purposes
45-66 described in Subsection (e), Section 49-d-7, Article III, Texas
45-67 Constitution, coming due in that fiscal year.
45-68 SECTION 5.09. Section 17.278, Water Code, is amended to read
45-69 as follows:
46-1 Sec. 17.278. FINDINGS REGARDING PERMITS. If an application
46-2 includes a proposal for a wastewater treatment plant, the board may
46-3 not deliver funds for the wastewater treatment plant until the
46-4 applicant has obtained a permit for the construction and operation
46-5 of the plant and approval of the plans and specifications for the
46-6 plant from the commission. If an application includes a proposal
46-7 for a wastewater treatment plant that is located outside the
46-8 jurisdiction of this state and that is not subject to the
46-9 permitting authority of the commission, the board may not deliver
46-10 funds for the wastewater treatment plant until after the board
46-11 reviews the plans and specifications in coordination with the
46-12 commission and finds that the wastewater treatment plant is capable
46-13 of producing effluent that will meet federal and Texas-approved
46-14 water quality standards and if effluent produced will result in
46-15 water being available for use in or for the benefit of Texas.
46-16 SECTION 5.10. Sections 44.007 through 44.010, Agriculture
46-17 Code, are amended to read as follows:
46-18 Sec. 44.007. LINKED DEPOSIT PROGRAM. (a) The board shall
46-19 establish a linked deposit program to encourage commercial lending
46-20 for the enhanced production, processing, and marketing of certain
46-21 agricultural crops and for the financing [purchase] of water
46-22 conservation projects or equipment for agricultural production
46-23 purposes.
46-24 (b) The board shall promulgate rules for the loan portion of
46-25 the linked deposit program. The rules must include:
46-26 (1) a list of the categories of crops customarily
46-27 grown in Texas;
46-28 (2) a list of crops that are alternative agricultural
46-29 crops;
46-30 (3) a list of crops the production of which has
46-31 declined markedly because of natural disasters; and
46-32 (4) identification of projects and [the] types of
46-33 equipment considered as water conservation projects or equipment
46-34 for agricultural production purposes.
46-35 (c) In order to participate in the linked deposit program,
46-36 an eligible lending institution may solicit loan applications from
46-37 eligible borrowers.
46-38 (d) After reviewing an application and determining that the
46-39 applicant is eligible and creditworthy, the eligible lending
46-40 institution shall send the application for a linked deposit loan to
46-41 the board.
46-42 (e) The eligible lending institution shall certify the
46-43 interest rate applicable to the specific eligible borrower and
46-44 attach it to the application sent to the board.
46-45 (f) After reviewing each linked deposit loan application,
46-46 the board shall recommend to the comptroller [state treasurer] the
46-47 acceptance or rejection of the application.
46-48 (g) After acceptance of the application, the comptroller
46-49 [state treasurer] shall place a linked deposit with the applicable
46-50 eligible lending institution for the period the comptroller
46-51 [treasurer] considers appropriate. The comptroller [state
46-52 treasurer] may not place a deposit for a period extending beyond
46-53 the state fiscal biennium in which it is placed. Subject to the
46-54 limitation described by Section 44.010 of this chapter, the
46-55 comptroller [treasurer] may place time deposits at an interest rate
46-56 described by Section 44.001(5)(A) of this chapter, notwithstanding
46-57 any order of the State Depository Board to the contrary.
46-58 (h) Before the placing of a linked deposit, the eligible
46-59 lending institution and the state, represented by the comptroller
46-60 [state treasurer] and the board, shall enter into a written deposit
46-61 agreement containing the conditions on which the linked deposit is
46-62 made.
46-63 (i) If a lending institution holding linked deposits ceases
46-64 to be a state depository, the comptroller [state treasurer] may
46-65 withdraw the linked deposits.
46-66 (j) The board may adopt rules that create a procedure for
46-67 determining priorities for loans granted under this chapter. Each
46-68 rule adopted must state the policy objective of the rule. The
46-69 policy objectives of the rules may include preferences to:
47-1 (1) achieve adequate geographic distribution of loans;
47-2 (2) assist certain industries;
47-3 (3) encourage certain practices including water
47-4 conservation; and
47-5 (4) encourage value-added processing of agricultural
47-6 products.
47-7 Sec. 44.008. COMPLIANCE. (a) On accepting a linked
47-8 deposit, an eligible lending institution must loan money to
47-9 eligible borrowers in accordance with the deposit agreement and
47-10 this chapter. The eligible lending institution shall forward a
47-11 compliance report to the board.
47-12 (b) The board shall monitor compliance with this chapter and
47-13 inform the comptroller [state treasurer] of noncompliance on the
47-14 part of an eligible lending institution.
47-15 Sec. 44.009. STATE LIABILITY PROHIBITED. The state is not
47-16 liable to an eligible lending institution for payment of the
47-17 principal, interest, or any late charges on a loan made to an
47-18 eligible borrower. A delay in payment or default on a loan by an
47-19 eligible borrower does not affect the validity of the deposit
47-20 agreement. Linked deposits are not an extension of the state's
47-21 credit within the meaning of any state constitutional prohibition.
47-22 Sec. 44.010. LIMITATIONS IN PROGRAM. (a) At any one time,
47-23 not more than $15 [$5] million, of which $10 million may only be
47-24 used to finance water conservation projects, may be placed in
47-25 linked deposits under this chapter.
47-26 (b) The maximum amount of a loan under this chapter to
47-27 process and market Texas agricultural crops is $500,000. The
47-28 maximum amount of a loan under this chapter to produce alternative
47-29 agricultural crops in this state is $250,000. The maximum amount
47-30 of a loan under this chapter to finance [purchase] water
47-31 conservation projects or equipment for agricultural production
47-32 purposes is $250,000.
47-33 (c) A loan granted pursuant to this chapter must be applied
47-34 to the purchase or lease of land, equipment, seed, fertilizer,
47-35 direct marketing facilities, or processing facilities, or to
47-36 payment for professional services.
47-37 (d) A loan granted pursuant to this chapter, when used to
47-38 finance eligible water conservation projects or equipment, may be
47-39 applied to existing debt resulting from the financing of water
47-40 conservation projects or equipment for agricultural purposes as
47-41 defined by board rule.
47-42 SECTION 5.11. Subchapter B, Chapter 11, Tax Code, is amended
47-43 by adding Section 11.32 to read as follows:
47-44 Sec. 11.32. CERTAIN WATER CONSERVATION INITIATIVES. The
47-45 governing body of a taxing unit by official action of the governing
47-46 body adopted in the manner required by law for official actions may
47-47 exempt from taxation part or all of the assessed value of property
47-48 on which approved water conservation initiatives have been
47-49 implemented. For purposes of this section, approved water
47-50 conservation initiatives shall be designated pursuant to an
47-51 ordinance or other law adopted by the governing unit.
47-52 SECTION 5.12. Chapter 2155.44, Government Code, is amended
47-53 by adding Subsection (d) to read as follows:
47-54 (d) The commission and all state agencies making purchase of
47-55 vegetation for landscaping purposes, including plants, shall give
47-56 preference to vegetation native to Texas if the cost to the state
47-57 and the quality are equal.
47-58 ARTICLE 6. SMALL COMMUNITIES ASSISTANCE
47-59 SECTION 6.01. Section 5.311, Water Code, is amended to read
47-60 as follows:
47-61 Sec. 5.311. DELEGATION OF RESPONSIBILITY. (a) The
47-62 commission may delegate to an administrative law judge of the State
47-63 Office of Administrative Hearings the responsibility to hear any
47-64 matter before the commission and to issue interlocutory orders
47-65 related to interim rates under Chapter 13.
47-66 (b) Except as provided in Subsection (a), the [The]
47-67 administrative law judge shall report to the commission on the
47-68 hearing in the manner provided by law.
47-69 SECTION 6.02. Subdivisions (11), (21), and (24), Section
48-1 13.002, Water Code, are amended to read as follows:
48-2 (11) "Member" means a person who holds a membership in
48-3 a water supply or sewer service corporation and [who either
48-4 receives water or sewer utility service from the corporation or] is
48-5 a record owner of a fee simple title to property in an area served
48-6 by a water supply or sewer service corporation or a person who is
48-7 granted a membership and who either currently receives or will be
48-8 eligible to receive water or sewer utility service from the
48-9 corporation. In determining member control of a water supply or
48-10 sewer service corporation, a person is entitled to only one vote
48-11 regardless of the number of memberships the person owns.
48-12 (21) "Service" means any act [done, rendered, or]
48-13 performed, anything furnished or supplied, and any facilities or
48-14 lines committed or [facility] used[, furnished, or supplied] by a
48-15 retail public utility in the performance of its duties under this
48-16 chapter to its patrons, employees, other retail public utilities,
48-17 and the public, as well as the interchange of facilities between
48-18 two or more retail public utilities.
48-19 (24) "Water supply or sewer service corporation" means
48-20 a nonprofit[, member-owned, member-controlled] corporation
48-21 organized and operating under Chapter 76, Acts of the 43rd
48-22 Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
48-23 Texas Civil Statutes) that provides potable water service or sewer
48-24 service for compensation and that has adopted and is operating in
48-25 accordance with by-laws or articles of incorporation which ensure
48-26 that it is member-owned and member-controlled. The term does not
48-27 include a corporation that provides retail water or sewer service
48-28 to a person who is not a member, except that the corporation may
48-29 provide retail water or sewer service to a person who is not a
48-30 member if the person only builds on or develops property to sell to
48-31 another and the service is provided on an interim basis before the
48-32 property is sold.
48-33 SECTION 6.03. Section 13.181, Water Code, is amended to read
48-34 as follows:
48-35 Sec. 13.181. POWER TO ENSURE COMPLIANCE; RATE REGULATION.
48-36 (a) Except for the provisions of Section 13.192, this subchapter
48-37 shall apply only to a utility and shall not be applied to
48-38 municipalities, counties, districts, or water supply or sewer
48-39 service corporations.
48-40 (b) Subject to this chapter, the commission has all
48-41 authority and power of the state to ensure compliance with the
48-42 obligations of utilities under this chapter. For this purpose the
48-43 regulatory authority may fix and regulate rates of utilities,
48-44 including rules and regulations for determining the classification
48-45 of customers and services and for determining the applicability of
48-46 rates. A rule or order of the regulatory authority may not
48-47 conflict with the rulings of any federal regulatory body. [Except
48-48 Section 13.192, this subchapter shall apply only to a utility and
48-49 shall not be applied to municipalities, counties, districts, or
48-50 water supply or sewer service corporations.] The commission may
48-51 adopt rules which authorize a utility which is permitted under
48-52 Section 13.242(c) to provide service without a certificate of
48-53 public convenience and necessity to request or implement a rate
48-54 increase and operate according to rules, regulations, and standards
48-55 of service other than those otherwise required under this chapter
48-56 provided that rates are just and reasonable for customers and the
48-57 utility and that service is safe, adequate, efficient, and
48-58 reasonable.
48-59 SECTION 6.04. Section 13.183, Water Code, is amended by
48-60 adding Subsection (c) to read as follows:
48-61 (c) To ensure that retail customers receive a higher quality
48-62 or more reliable water or sewer service, to encourage
48-63 regionalization, or to maintain financially stable and technically
48-64 sound utilities, the regulatory authority may develop methodologies
48-65 for water or sewer rates based on factors other than rate of return
48-66 and those specified in Section 13.185. Overall revenues determined
48-67 pursuant to an alternate methodology developed under this section
48-68 must provide revenues to the utility that satisfy the requirements
48-69 of Subsection (a). In determining to use alternate ratemaking
49-1 methodologies, the regulatory authority shall assure that rates,
49-2 operations, and services are just and reasonable to the consumers
49-3 and to the utilities.
49-4 SECTION 6.05. Subsection (a), Section 13.184, Water Code, is
49-5 amended to read as follows:
49-6 (a) Unless the commission establishes alternate rate
49-7 methodologies in accordance with Section 13.183(c), the commission
49-8 [The regulatory authority] may not prescribe any rate that will
49-9 yield more than a fair return on the invested capital used and
49-10 useful in rendering service to the public. The governing body of a
49-11 municipality exercising its original jurisdiction over rates and
49-12 services may use alternate ratemaking methodologies established by
49-13 ordinance or by commission rule in accordance with Section
49-14 13.183(c). Unless the municipal regulatory authority uses
49-15 alternate ratemaking methodologies established by ordinance or by
49-16 commission rule in accordance with Section 13.183(c), it may not
49-17 prescribe any rate that will yield more than a fair return on the
49-18 invested capital used and useful in rendering service to the
49-19 public.
49-20 SECTION 6.06. Subsection (a), Section 13.185, Water Code, is
49-21 amended to read as follows:
49-22 (a) Unless alternate methodologies are adopted as provided
49-23 in Sections 13.183(c) and 13.184(a), the [The] components of
49-24 invested capital and net income shall be determined according to
49-25 the rules stated in this section.
49-26 SECTION 6.07. Subchapter G, Chapter 13, Water Code, is
49-27 amended by adding Section 13.241 to read as follows:
49-28 Sec. 13.241. GRANTING OR AMENDING CERTIFICATES. (a) In
49-29 determining whether to grant or amend a certificate of public
49-30 convenience and necessity, the commission shall ensure that the
49-31 applicant possesses the financial, managerial, and technical
49-32 capability to provide continuous and adequate service.
49-33 (b) For water utility service, the commission shall ensure
49-34 that the applicant:
49-35 (1) is capable of providing drinking water that meets
49-36 the requirements of Chapter 341, Health and Safety Code, and
49-37 requirements of this code; and
49-38 (2) has access to an adequate supply of water.
49-39 (c) For sewer utility service, the commission shall ensure
49-40 that the applicant is capable of meeting the commission's design
49-41 criteria for sewer treatment plants and the requirements of this
49-42 code.
49-43 (d) Before the commission grants a new or amended
49-44 certificate of convenience and necessity for an area which would
49-45 require construction of a physically separate water or sewer
49-46 system, the applicant must demonstrate that regionalization or
49-47 consolidation with another retail public utility is not
49-48 economically feasible.
49-49 SECTION 6.08. Section 13.246, Water Code, is amended to read
49-50 as follows:
49-51 Sec. 13.246. NOTICE AND HEARING; ISSUANCE, AMENDMENT, OR
49-52 REFUSAL; FACTORS CONSIDERED. (a) If an application for a
49-53 certificate of public convenience and necessity is filed, the
49-54 commission shall cause notice of the application to be given to
49-55 affected parties and, if requested, shall fix a time and place for
49-56 a hearing and give notice of the hearing. Any person affected by
49-57 the application may intervene at the hearing.
49-58 (b) The commission may grant applications and issue
49-59 certificates only if the commission finds that a certificate is
49-60 necessary for the service, accommodation, convenience, or safety of
49-61 the public. The commission may issue a certificate as requested,
49-62 or refuse to issue it, or issue it for the construction of only a
49-63 portion of the contemplated system or facility or extension, or for
49-64 the partial exercise only of the right or privilege and may impose
49-65 special conditions necessary to ensure that continuous and adequate
49-66 service is provided.
49-67 (c) Certificates of convenience and necessity shall be
49-68 granted or amended on a nondiscriminatory basis after consideration
49-69 by the commission of the adequacy of service currently provided to
50-1 the requested area, the need for additional service in the
50-2 requested area, the effect of the granting of a certificate on the
50-3 recipient of the certificate and on any retail public utility of
50-4 the same kind already serving the proximate area, the ability of
50-5 the applicant to provide adequate service, the feasibility of
50-6 obtaining service from an adjacent retail public utility, the
50-7 financial stability of the applicant, including, if applicable, the
50-8 adequacy of the applicant's debt-equity ratio, environmental
50-9 integrity, and the probable improvement of service or lowering of
50-10 cost to consumers in that area resulting from the granting of the
50-11 certificate.
50-12 (d) The commission may require that an applicant for a
50-13 certificate of convenience and necessity demonstrate adequate
50-14 financial, managerial, and technical capability for providing
50-15 continuous and adequate service to the requested area and any areas
50-16 currently certificated to the applicant.
50-17 (e) The commission may require an applicant utility to
50-18 provide a bond or other financial assurance in a form and amount
50-19 specified by the commission to ensure that continuous and adequate
50-20 utility service is provided.
50-21 (f) Where applicable, in addition to the other factors in
50-22 this section the commission shall consider the efforts of the
50-23 applicant to extend service to any economically distressed areas
50-24 located within the service areas certificated to the applicant.
50-25 For the purposes of this subsection, "economically distressed area"
50-26 has the meaning assigned by Section 15.001.
50-27 SECTION 6.09. Section 13.253, Water Code, is amended to read
50-28 as follows:
50-29 Sec. 13.253. IMPROVEMENTS IN SERVICE; INTERCONNECTING
50-30 SERVICE. After notice and hearing, the commission may:
50-31 (1) order any retail public utility that is required
50-32 by law to possess a certificate of public convenience and necessity
50-33 or any retail public utility that possesses a certificate of public
50-34 convenience and necessity and is located in an affected county as
50-35 defined in Section 16.341 to:
50-36 (A) provide specified improvements in its
50-37 service in a defined area if service in that area is inadequate or
50-38 is substantially inferior to service in a comparable area and it is
50-39 reasonable to require the retail public utility to provide the
50-40 improved service; or
50-41 (B) develop, implement, and follow financial,
50-42 managerial, and technical practices that are acceptable to the
50-43 commission to ensure that continuous and adequate service is
50-44 provided to any areas currently certificated to the retail public
50-45 utility if the retail public utility has not provided continuous
50-46 and adequate service to any of those areas;
50-47 (2) order two or more public utilities or water supply
50-48 or sewer service corporations to establish specified facilities for
50-49 [the] interconnecting service; [or]
50-50 (3) order a public utility or water supply or sewer
50-51 service corporation that has not demonstrated that it can provide
50-52 continuous and adequate service from its drinking water source or
50-53 sewer treatment facility to obtain service sufficient to meet its
50-54 obligation to provide continuous and adequate service on at least a
50-55 wholesale basis from another consenting utility service provider;
50-56 or
50-57 (4) issue an emergency order, with or without a
50-58 hearing, under Section 13.041 [of this code].
50-59 SECTION 6.10. Section 13.254, Water Code, is amended to read
50-60 as follows:
50-61 Sec. 13.254. REVOCATION OR AMENDMENT OF CERTIFICATE.
50-62 (a) The commission at any time after notice and hearing may revoke
50-63 or amend any certificate of public convenience and necessity with
50-64 the written consent of the certificate holder or if it finds that:
50-65 (1) the certificate holder has never provided, is no
50-66 longer providing, or has failed to provide continuous and adequate
50-67 service in the area, or part of the area, covered by the
50-68 certificate;
50-69 (2) in an affected county as defined in Section
51-1 16.341, the cost of providing service by the certificate holder is
51-2 so prohibitively expensive as to constitute denial of service,
51-3 provided that, for commercial developments or for residential
51-4 developments started after September 1, 1997, in an affected county
51-5 as defined in Section 16.341, the fact that the cost of obtaining
51-6 service from the currently certificated retail public utility makes
51-7 the development economically unfeasible does not render such cost
51-8 prohibitively expensive in the absence of other relevant factors;
51-9 (3) the certificate holder has agreed in writing to
51-10 allow another retail public utility to provide service within its
51-11 service area, except for an interim period, without amending its
51-12 certificate; or
51-13 (4) the certificate holder has failed to file a cease
51-14 and desist action pursuant to Section 13.252 within 180 days of the
51-15 date that it became aware that another retail public utility was
51-16 providing service within its service area, unless the certificate
51-17 holder demonstrates good cause for its failure to file such action
51-18 within the 180 days.
51-19 (b) Upon written request from the certificate holder, the
51-20 executive director may cancel the certificate of a utility or water
51-21 supply corporation authorized by rule to operate without a
51-22 certificate of public convenience and necessity under Section
51-23 13.242(c).
51-24 (c) If the certificate of any retail public utility is
51-25 revoked or amended, the commission may require one or more retail
51-26 public utilities with their consent to provide service in the area
51-27 in question. The order of the commission shall not be effective to
51-28 transfer property.
51-29 (d) A retail public utility may not in any way render retail
51-30 water or sewer service directly or indirectly to the public in an
51-31 area that has been decertified under this section without the
51-32 consent of the retail public utility that previously held the
51-33 certificate of convenience and necessity without providing
51-34 compensation for any property that the commission determines is
51-35 rendered useless or valueless to the decertified retail public
51-36 utility as a result of the decertification.
51-37 (e) The determination of the monetary amount of
51-38 compensation, if any, shall be determined at the time another
51-39 retail public utility seeks to provide service in the previously
51-40 decertified area and before service is actually provided.
51-41 (f) The monetary amount shall be determined by a qualified
51-42 individual or firm serving as independent appraiser selected by the
51-43 executive director after considering the recommendations of the
51-44 decertified retail public utility and the retail public utility
51-45 seeking to serve the area. The determination of compensation by
51-46 the independent appraiser shall be binding on the commission. The
51-47 costs of the independent appraiser shall be borne by the retail
51-48 public utility seeking to serve the area.
51-49 (g) For the purpose of implementing this section, the value
51-50 of real property shall be determined according to the standards set
51-51 forth in Chapter 21, Property Code, governing actions in eminent
51-52 domain and the value of personal property shall be determined
51-53 according to the factors in this subsection. The factors ensuring
51-54 that the compensation to a retail public utility for the taking,
51-55 damaging, or loss of personal property, including the retail public
51-56 utility's business, is just and adequate shall at a minimum
51-57 include: the impact on the existing indebtedness of the retail
51-58 public utility and its ability to repay that debt; the value of the
51-59 service facilities of the retail public utility located within the
51-60 area in question; the amount of any expenditures for planning,
51-61 design, or construction of service facilities that are allocable to
51-62 service to the area in question; the amount of the retail public
51-63 utility's contractual obligations allocable to the area in
51-64 question; any demonstrated impairment of service or increase of
51-65 cost to consumers of the retail public utility remaining after the
51-66 decertification; the impact on future revenues and expenses of the
51-67 retail public utility; necessary and reasonable legal expenses and
51-68 professional fees; factors relevant to maintaining the current
51-69 financial integrity of the retail public utility; and other
52-1 relevant factors.
52-2 (h) The commission shall determine whether payment of
52-3 compensation shall be in a lump sum or paid out over a specified
52-4 period of time. If there were no current customers in the area
52-5 decertified and no immediate loss of revenues or if there are other
52-6 valid reasons determined by the commission, installment payments as
52-7 new customers are added in the decertified area may be an
52-8 acceptable method of payment.
52-9 SECTION 6.11. Section 13.301, Water Code, is amended to read
52-10 as follows:
52-11 Sec. 13.301. REPORT OF SALE, MERGER, ETC.; INVESTIGATION;
52-12 DISALLOWANCE OF TRANSACTION. (a) A utility or a water supply or
52-13 sewer service corporation, on or before the 120th day before the
52-14 effective date of a sale, acquisition, lease, or rental of a water
52-15 or sewer system that is required by law to possess a certificate of
52-16 public convenience and necessity or the effective date of a merger
52-17 or consolidation with such a utility or water supply or sewer
52-18 service corporation, shall:
52-19 (1) file a written application with [notify] the
52-20 commission; and
52-21 (2) [give public notice] unless public notice is
52-22 waived by the executive director for good cause shown, give public
52-23 notice of the action [at least 120 days before the effective date
52-24 of any sale, acquisition, lease, or rental of any water or sewer
52-25 system required by law to possess a certificate of public
52-26 convenience and necessity or of any merger or consolidation with
52-27 such a utility or water supply or sewer service corporation].
52-28 (b) The commission may require that the person purchasing or
52-29 acquiring the water or sewer system demonstrate adequate financial,
52-30 managerial, and technical capability for providing continuous and
52-31 adequate service to the requested area and any areas currently
52-32 certificated to the person.
52-33 (c) If the person purchasing or acquiring the water or sewer
52-34 system cannot demonstrate adequate financial capability, the
52-35 commission may require that the person provide a bond or other
52-36 financial assurance in a form and amount specified by the
52-37 commission to ensure continuous and adequate utility service is
52-38 provided.
52-39 (d) The commission shall, with or without a public hearing,
52-40 investigate the sale, acquisition, lease, or rental to determine
52-41 whether the transaction will serve the public interest.
52-42 (e) [(c)] Before the expiration of the 120-day notification
52-43 period, the executive director shall notify all known parties to
52-44 the transaction of the executive director's decision whether to
52-45 request that the commission hold a public hearing to determine if
52-46 the transaction will serve the public interest. The executive
52-47 director may request a hearing if:
52-48 (1) the application filed with [notification to] the
52-49 commission or the public notice was improper;
52-50 (2) the person purchasing or acquiring the water or
52-51 sewer system has not demonstrated adequate financial, managerial,
52-52 and technical capability for providing continuous and adequate
52-53 service to the service area being acquired and to any areas
52-54 currently certificated to the person [is inexperienced as a utility
52-55 service provider];
52-56 (3) the person or an affiliated interest of the person
52-57 purchasing or acquiring the water or sewer system has a history of:
52-58 (A) noncompliance with the requirements of the
52-59 commission or the Texas Department of Health; or
52-60 (B) [of] continuing mismanagement or misuse of
52-61 revenues as a utility service provider;
52-62 (4) the person purchasing or acquiring the water or
52-63 sewer system cannot demonstrate the financial ability to provide
52-64 the necessary capital investment to ensure the provision of
52-65 continuous and adequate service to the customers of the water or
52-66 sewer system; or
52-67 (5) there are concerns that the transaction may not
52-68 serve the public interest, after the application of the
52-69 considerations provided by Section 13.246(c) for determining
53-1 whether to grant a certificate of convenience and necessity.
53-2 (f) [(d)] Unless the executive director requests that a
53-3 public hearing be held, the sale, acquisition, lease, or rental may
53-4 be completed as proposed:
53-5 (1) at the end of the 120-day period; or
53-6 (2) [may be completed] at any time after the executive
53-7 director notifies the utility or water supply or sewer service
53-8 corporation that a hearing will not be requested.
53-9 (g) If a hearing is requested or if the utility or water
53-10 supply or sewer service corporation fails to make the application
53-11 as [provide the] required [notification] or to provide public
53-12 notice, the sale, acquisition, lease, or rental may not be
53-13 completed unless the commission determines that the proposed
53-14 transaction serves the public interest.
53-15 (h) A sale, acquisition, lease, or rental of any water or
53-16 sewer system required by law to possess a certificate of public
53-17 convenience and necessity that is not completed in accordance with
53-18 the provisions of this section is void.
53-19 (i) [(e)] This section does not apply to:
53-20 (1) the purchase of replacement property; or
53-21 (2) [to] a transaction under Section 13.255 of this
53-22 code.
53-23 (j) [(f)] If a public utility facility or system is sold and
53-24 the facility or system was partially or wholly constructed with
53-25 customer contributions in aid of construction derived from specific
53-26 surcharges approved by the regulatory authority over and above
53-27 revenues required for normal operating expenses and return, the
53-28 public utility may not sell or transfer any of its assets, its
53-29 certificate of convenience and necessity, or its controlling
53-30 interest in an incorporated utility, unless the utility provides to
53-31 the purchaser or transferee before the date of the sale or transfer
53-32 a written disclosure relating to the contributions. The disclosure
53-33 must contain, at a minimum, the total dollar amount of the
53-34 contributions and a statement that the contributed property or
53-35 capital may not be included in invested capital or allowed
53-36 depreciation expense by the regulatory authority in rate-making
53-37 proceedings.
53-38 (k) [(g)] A utility or a water supply or sewer service
53-39 corporation that proposes to sell, assign, lease, or rent its
53-40 facilities shall notify the other party to the transaction of the
53-41 requirements of this section before signing an agreement to sell,
53-42 assign, lease, or rent its facilities.
53-43 SECTION 6.12. Section 13.302, Water Code, is amended to read
53-44 as follows:
53-45 Sec. 13.302. PURCHASE OF VOTING STOCK IN ANOTHER PUBLIC
53-46 UTILITY: REPORT. (a) A utility may not purchase voting stock in
53-47 another utility doing business in this state and a person may not
53-48 acquire a controlling interest in a utility doing business in this
53-49 state unless the person or utility files a written application with
53-50 [notifies] the commission [of the proposed purchase or acquisition]
53-51 not later than the 61st day before the date on which the
53-52 transaction is to occur.
53-53 (b) The commission may require that a person acquiring a
53-54 controlling interest in a utility demonstrate adequate financial,
53-55 managerial, and technical capability for providing continuous and
53-56 adequate service to the requested area and any areas currently
53-57 certificated to the person.
53-58 (c) If the person acquiring a controlling interest cannot
53-59 demonstrate adequate financial capability, the commission may
53-60 require that the person provide a bond or other financial assurance
53-61 in a form and amount specified by the commission to ensure
53-62 continuous and adequate utility service is provided.
53-63 (d) The executive director may request that the commission
53-64 hold a public hearing on the transaction if the executive director
53-65 believes that a criterion [criteria] prescribed by Section
53-66 13.301(e) [13.301(c) of this code] applies.
53-67 (e) [(c)] Unless the executive director requests that a
53-68 public hearing be held, the purchase or acquisition may be
53-69 completed as proposed:
54-1 (1) at the end of the 60-day period; or
54-2 (2) [may be completed] at any time after the executive
54-3 director notifies the person or utility that a hearing will not be
54-4 requested.
54-5 (f) If a hearing is requested or if the person or utility
54-6 fails to make the application to the commission as [provide the]
54-7 required [notification to the commission], the purchase or
54-8 acquisition may not be completed unless the commission determines
54-9 that the proposed transaction serves the public interest. A
54-10 purchase or acquisition that is not completed in accordance with
54-11 the provisions of this section is void.
54-12 SECTION 6.13. Section 13.412, Water Code, is amended by
54-13 amending Subsections (a) and (b) and adding Subsections (f) and (g)
54-14 to read as follows:
54-15 (a) At the request of the commission, the attorney general
54-16 shall bring suit for the appointment of a receiver to collect the
54-17 assets and carry on the business of a water or sewer utility that:
54-18 (1) has abandoned operation of its facilities;
54-19 (2) informs the commission that the owner is
54-20 abandoning the system;
54-21 (3) [or] violates a final order of the commission; or
54-22 (4) allows any property owned or controlled by it to
54-23 be used in violation of a final order of the commission.
54-24 (b) The court shall appoint a receiver if an appointment is
54-25 necessary:
54-26 (1) to guarantee the collection of assessments, fees,
54-27 penalties, or interest;
54-28 (2) to guarantee continuous and adequate [continued]
54-29 service to the customers of the utility; or
54-30 (3) to prevent continued or repeated violation of the
54-31 final order.
54-32 (f) For purposes of this section and Section 13.4132,
54-33 abandonment may include but is not limited to:
54-34 (1) failure to pay a bill or obligation owed to a
54-35 retail public utility or to an electric or gas utility with the
54-36 result that the utility service provider has issued a notice of
54-37 discontinuance of necessary services;
54-38 (2) failure to provide appropriate water or wastewater
54-39 treatment so that a potential health hazard results;
54-40 (3) failure to adequately maintain facilities,
54-41 resulting in potential health hazards, extended outages, or
54-42 repeated service interruptions;
54-43 (4) failure to provide customers adequate notice of a
54-44 health hazard or potential health hazard;
54-45 (5) failure to secure an alternative available water
54-46 supply during an outage;
54-47 (6) displaying a pattern of hostility towards or
54-48 repeatedly failing to respond to the commission or the utility's
54-49 customers; and
54-50 (7) failure to provide the commission with adequate
54-51 information on how to contact the utility for normal business and
54-52 emergency purposes.
54-53 (g) Notwithstanding Section 64.021, Civil Practice and
54-54 Remedies Code, a receiver appointed under this section may seek
54-55 commission approval to acquire the water or sewer utility's
54-56 facilities and transfer the utility's certificate of convenience
54-57 and necessity. The receiver must apply in accordance with
54-58 Subchapter H.
54-59 SECTION 6.14. Subsections (a) and (c), Section 13.4132,
54-60 Water Code, are amended to read as follows:
54-61 (a) The commission, after providing to the utility notice
54-62 and an opportunity to be heard by the commissioners at a commission
54-63 meeting [for a hearing], may authorize a willing person to
54-64 temporarily manage and operate a utility if the utility:
54-65 (1) [that] has discontinued or abandoned operations or
54-66 the provision of services; or
54-67 (2) has been or is being referred to the attorney
54-68 general for the appointment of a receiver under Section 13.412 [of
54-69 this code].
55-1 (c) A person appointed under this section has the powers and
55-2 duties necessary to ensure the continued operation of the utility
55-3 and the provision of continuous and adequate services to customers,
55-4 including the power and duty to:
55-5 (1) read meters;
55-6 (2) bill for utility services;
55-7 (3) collect revenues;
55-8 (4) disburse funds; [and]
55-9 (5) access all system components; and
55-10 (6) request rate increases.
55-11 SECTION 6.15. Section 15.602, Water Code, is amended to read
55-12 as follows:
55-13 Sec. 15.602. DEFINITIONS. In this subchapter:
55-14 (1) "Additional state revolving fund" means any state
55-15 revolving fund hereafter established by the board to provide
55-16 financial assistance to political subdivisions for public works in
55-17 accordance with a capitalization grant program hereafter
55-18 established by a federal agency or otherwise authorized by federal
55-19 law.
55-20 (2) "Authorized investments" means any authorized
55-21 investments described in Section 404.024, Government Code.
55-22 (3) "Community water system" means a public water
55-23 system that:
55-24 (A) serves at least 15 service connections used
55-25 by year-round residents of the area served by the system; or
55-26 (B) regularly serves at least 25 year-round
55-27 residents.
55-28 (4) "Construction" shall have the meaning assigned by
55-29 the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).
55-30 (5) "Disadvantaged community" means an area meeting
55-31 criteria established by board rule, which criteria shall be based
55-32 on measures that may include single-family residential property
55-33 valuation, income levels of residents of the area, or other
55-34 similarly appropriate measures.
55-35 (6) [(4)] "Federal Act" means the Federal Water
55-36 Pollution Control Act, as amended (33 U.S.C. 1251 et seq.).
55-37 (7) "Nonprofit noncommunity water system" means a
55-38 public water system that is not operated for profit and that:
55-39 (A) is owned by a political subdivision or
55-40 nonprofit entity; and
55-41 (B) is not a community water system.
55-42 (8) [(5)] "Political subdivision" means a
55-43 municipality, intermunicipal, interstate, or state agency, [or] any
55-44 other public entity eligible for assistance under this subchapter,
55-45 or a nonprofit water supply corporation created and operating under
55-46 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
55-47 (Article 1434a, Vernon's Texas Civil Statutes), if such entity is
55-48 eligible for financial assistance under federal law establishing
55-49 the state revolving fund or an additional state revolving fund.
55-50 (9) "Public water system" means a system that is owned
55-51 by any person and that meets the definition of public water system
55-52 in the Safe Drinking Water Act.
55-53 (10) [(6)] "Public works" means any project to
55-54 acquire, construct, improve, repair, or otherwise provide any
55-55 buildings, structures, facilities, equipment, or other real or
55-56 personal property or improvements designed for public use,
55-57 protection, or enjoyment undertaken by a political subdivision and
55-58 paid for, in whole or in part, out of public funds.
55-59 (11) [(7)] "Revolving fund" means the state water
55-60 pollution control revolving fund.
55-61 (12) "Safe Drinking Water Act" means Title XIV of the
55-62 federal Public Health Service Act, commonly known as the Safe
55-63 Drinking Water Act, as amended (42 U.S.C. Section 300f et seq.).
55-64 (13) "Safe drinking water revolving fund" means the
55-65 fund established by the board as an additional state revolving fund
55-66 to provide financial assistance in accordance with the federal
55-67 program established pursuant to the provisions of the Safe Drinking
55-68 Water Act.
55-69 (14) [(8)] "Treatment works" has the meaning
56-1 established by the federal act and the eligible components of the
56-2 management programs established by Sections 319 and 320 of the
56-3 federal act.
56-4 SECTION 6.16. Subchapter J, Chapter 15, Water Code, is
56-5 amended by adding Section 15.6041 to read as follows:
56-6 Sec. 15.6041. FINANCIAL ASSISTANCE UNDER THE SAFE DRINKING
56-7 WATER REVOLVING FUND. (a) The safe drinking water revolving fund
56-8 shall be administered by the board under this subchapter and rules
56-9 adopted by the board. The safe drinking water revolving fund shall
56-10 be held and administered by the board in the same manner as
56-11 provided by Section 15.603, except that the safe drinking water
56-12 revolving fund shall be held and administered in accordance with
56-13 the Safe Drinking Water Act and shall be used to provide financial
56-14 assistance in accordance with that act and in the manner provided
56-15 by rules adopted by the board:
56-16 (1) to political subdivisions for community water
56-17 systems and for nonprofit noncommunity water systems;
56-18 (2) to persons other than political subdivisions for
56-19 community water systems or nonprofit noncommunity water systems
56-20 from the account established by Subsection (b)(1);
56-21 (3) to persons, including political subdivisions, for
56-22 service to disadvantaged communities from the account established
56-23 by Subsection (b)(2); and
56-24 (4) for other purposes authorized by the Safe Drinking
56-25 Water Act.
56-26 (b) In addition to other accounts the board may establish in
56-27 the safe drinking water revolving fund, the board shall establish
56-28 the following separate accounts:
56-29 (1) the community/noncommunity water system financial
56-30 assistance account, to be used solely for providing financial
56-31 assistance to persons, other than political subdivisions, providing
56-32 services through a community water system or a nonprofit
56-33 noncommunity water system, which account shall be composed solely
56-34 of funds appropriated by the legislature, funds provided as gifts
56-35 or grants by the United States government, interest earnings on
56-36 amounts credited to the account, and repayments of loans made from
56-37 the account; and
56-38 (2) the disadvantaged community account, to be used
56-39 solely for providing financial assistance under the terms of
56-40 Subsections (c) and (d), which account shall be composed solely of
56-41 funds appropriated by the legislature, funds provided as gifts or
56-42 grants by the United States government, interest earnings on
56-43 amounts credited to the account, and repayments of loans made from
56-44 the account.
56-45 (c) The board may provide financial assistance from the
56-46 disadvantaged community account to:
56-47 (1) a political subdivision:
56-48 (A) that is a disadvantaged community; or
56-49 (B) for a project serving an area that:
56-50 (i) is located outside the boundaries of
56-51 the political subdivision; and
56-52 (ii) meets the definition of a
56-53 disadvantaged community; or
56-54 (2) an owner of a community water system that is
56-55 ordered by the commission to provide service to a disadvantaged
56-56 community, provided that the financial assistance is for the sole
56-57 purpose of providing service to a disadvantaged community.
56-58 (d) In providing financial assistance from the disadvantaged
56-59 community account, the board shall determine the amount of a loan
56-60 which the political subdivision cannot repay based on affordability
56-61 criteria established by the board by rule. The board shall forgive
56-62 repayment of that portion of the principal of the loan which the
56-63 board determines the political subdivision cannot repay. Financial
56-64 assistance from the disadvantaged community account may not exceed
56-65 the allowable percentage of the amount of the capitalization grant
56-66 received by the state pursuant to the Safe Drinking Water Act.
56-67 SECTION 6.17. Subsections (c) and (g), Section 15.603, Water
56-68 Code, are amended to read as follows:
56-69 (c) The revolving fund consists of money derived from
57-1 federal grants, direct appropriations, investment earnings on
57-2 amounts credited to the revolving fund, and, at the board's
57-3 discretion, from any and all sources available [to provide the
57-4 required state match for the purposes of this subchapter].
57-5 (g) The revolving fund and any accounts established in the
57-6 revolving fund shall be kept and maintained by or at the direction
57-7 of the board and do not constitute and are not a part of the State
57-8 Treasury. However, at the direction of the board, the revolving
57-9 fund or accounts in the revolving fund may be kept and held in
57-10 escrow and in trust by the comptroller [State Treasurer] for and on
57-11 behalf of the board, shall be used only as provided by this
57-12 subchapter, and pending such use shall be invested in authorized
57-13 investments as provided by any order, resolution, or rule of the
57-14 board. Legal title to money and investments in the revolving fund
57-15 is in the board unless or until paid out as provided by this
57-16 subchapter, the federal act, and the rules of the board. The
57-17 comptroller [State Treasurer], as custodian, shall administer the
57-18 funds strictly and solely as provided by this subchapter and in the
57-19 orders, resolutions, and rules, and the state shall take no action
57-20 with respect to the revolving fund other than that specified in
57-21 this subchapter, the federal act, and the rules of the board.
57-22 SECTION 6.18. Subsection (a), Section 341.031, Health and
57-23 Safety Code, is amended to read as follows:
57-24 (a) Public drinking water must be free from deleterious
57-25 matter and must comply with the standards established by the
57-26 commission[, the United States Public Health Service,] or the
57-27 United States Environmental Protection Agency. The commission may
57-28 adopt and enforce rules to implement the federal Safe Drinking
57-29 Water Act (42 U.S.C. Section 300f et seq.).
57-30 SECTION 6.19. Subchapter C, Chapter 341, Health and Safety
57-31 Code, is amended by adding Section 341.0315 to read as follows:
57-32 Sec. 341.0315. PUBLIC DRINKING WATER SUPPLY SYSTEM
57-33 REQUIREMENTS. (a) To preserve the public health, safety, and
57-34 welfare, the commission shall ensure that public drinking water
57-35 supply systems:
57-36 (1) supply safe drinking water in adequate quantities;
57-37 (2) are financially stable; and
57-38 (3) are technically sound.
57-39 (b) The commission shall encourage and promote the
57-40 development and use of regional and areawide drinking water supply
57-41 systems.
57-42 (c) Each public drinking water supply system shall provide
57-43 an adequate and safe drinking water supply. The supply must meet
57-44 the requirements of Section 341.031 and commission rules.
57-45 (d) The commission shall consider compliance history in
57-46 determining issuance of new permits, renewal permits, and permit
57-47 amendments for a public drinking water system.
57-48 SECTION 6.20. Subchapter C, Chapter 341, Health and Safety
57-49 Code, is amended by amending Section 341.035 and adding Sections
57-50 341.0351 through 341.0356 to read as follows:
57-51 Sec. 341.035. APPROVED PLANS REQUIRED FOR PUBLIC WATER
57-52 SUPPLIES. (a) Except as provided by Subsection (d), a person may
57-53 not begin construction of a public drinking water supply system
57-54 unless the executive director of the commission approves:
57-55 (1) a business plan for the system; and
57-56 (2) the plans and specifications for the system.
57-57 (b) The prospective owner or operator of the system must
57-58 submit to the executive director a business plan that demonstrates
57-59 that the owner or operator of the proposed system has available the
57-60 financial, managerial, and technical capability to ensure future
57-61 operation of the system in accordance with applicable laws and
57-62 rules. The executive director:
57-63 (1) shall review the business plan; and
57-64 (2) may order the prospective owner or operator of the
57-65 system to provide adequate financial assurance of ability to
57-66 operate the system in accordance with applicable laws and rules, in
57-67 the form of a bond or as specified by the commission, unless the
57-68 executive director finds that the business plan demonstrates
57-69 adequate financial capability.
58-1 (c) The prospective owner or operator of the proposed system
58-2 shall provide to the commission [A person contemplating
58-3 establishing a drinking water supply system for public use must
58-4 submit] completed plans and specifications for review and approval
58-5 in accordance with commission rules.
58-6 (d) A person is not required to file a business plan under
58-7 Subsection (a) or (b) if the person:
58-8 (1) is a county;
58-9 (2) is a retail public utility as defined by Section
58-10 13.002, Water Code, unless that person is a utility as defined by
58-11 that section; or
58-12 (3) has executed an agreement with a political
58-13 subdivision to transfer the ownership and operation of the water
58-14 supply system to the political subdivision [to the commission
58-15 before construction of the system. The commission shall approve
58-16 plans that conform to the state's water safety laws. The water
58-17 supply system may be established only on the commission's
58-18 approval].
58-19 Sec. 341.0351. NOTIFICATION OF SYSTEM CHANGES. [(b)] Any
58-20 person [agency], including a municipality, supplying a drinking
58-21 water service to the public that intends to make a material or
58-22 major change in a water supply system that may affect the sanitary
58-23 features of that utility must give written notice of that intention
58-24 to the commission before making the change.
58-25 Sec. 341.0352. ADVERTISED QUALITY OF WATER SUPPLY. [(c)] A
58-26 water supply system owner, manager, or operator or an agent of a
58-27 water supply system owner, manager, or operator may not advertise
58-28 or announce a water supply as being of a quality other than the
58-29 quality that is disclosed by the commission's latest rating.
58-30 Sec. 341.0353. DRINKING WATER SUPPLY COMPARATIVE RATING
58-31 INFORMATION. [(d)] The commission shall assemble and tabulate all
58-32 necessary information [data] relating to public drinking water
58-33 supplies at least once each year and as often during the year as
58-34 conditions demand or justify. The information [data] forms the
58-35 basis of an official comparative rating of public drinking water
58-36 supply systems.
58-37 Sec. 341.0354. HIGHWAY SIGNS FOR APPROVED SYSTEM RATING.
58-38 [(e)] A water supply system that attains an approved rating is
58-39 entitled to erect signs of a design approved by the commission on
58-40 highways approaching the municipality in which the water supply
58-41 system is located. The signs shall be immediately removed on
58-42 notice from the commission if the water supply system does not
58-43 continue to meet the specified standards.
58-44 Sec. 341.0355. FINANCIAL ASSURANCE FOR CERTAIN SYSTEMS.
58-45 (a) The commission may require the owner or operator of a public
58-46 drinking water supply system that was constructed without the
58-47 approval required by Section 341.035, that has a history of
58-48 noncompliance with this subchapter or commission rules, or that is
58-49 subject to a commission enforcement action to:
58-50 (1) provide the executive director of the commission
58-51 with a business plan that demonstrates that the system has
58-52 available the financial, managerial, and technical resources
58-53 adequate to ensure future operation of the system in accordance
58-54 with applicable laws and rules; and
58-55 (2) provide adequate financial assurance of the
58-56 ability to operate the system in accordance with applicable laws
58-57 and rules in the form of a bond or as specified by the commission.
58-58 (b) If the commission relies on rate increases or customer
58-59 surcharges as the form of financial assurance, such funds shall be
58-60 deposited in an escrow account and released only with the approval
58-61 of the commission.
58-62 Sec. 341.0356. ORDER TO STOP OPERATIONS. (a) A public
58-63 water supply system shall stop operations on receipt of a written
58-64 notification of the executive director of the commission or an
58-65 order of the commission issued under this section.
58-66 (b) The executive director or the commission may order a
58-67 public water supply system to stop operations if:
58-68 (1) the system was constructed without the approval
58-69 required by Section 341.035; or
59-1 (2) the executive director determines that the system
59-2 presents an imminent health hazard.
59-3 (c) A notification or order issued under this section may be
59-4 delivered by facsimile, by personal service, or by mail.
59-5 (d) A water supply system subject to notification or an
59-6 order under this section, on written request, is entitled to an
59-7 opportunity to be heard by the commissioners at a commission
59-8 meeting.
59-9 (e) The public water supply system may not resume operations
59-10 until the commission, the executive director, or a court authorizes
59-11 the resumption.
59-12 SECTION 6.21. Subsections (a) and (b), Section 341.047,
59-13 Health and Safety Code, are amended to read as follows:
59-14 (a) A person commits an offense if the person:
59-15 (1) violates a provision of Section 341.031;
59-16 (2) violates a provision of Section 341.032(a) or (b);
59-17 (3) violates a provision of Section 341.033(a)-(f);
59-18 (4) constructs a drinking water supply system without
59-19 submitting completed plans and specifications as required by
59-20 Section 341.035(c) [341.035(a)];
59-21 (5) begins construction of [establishes] a drinking
59-22 water supply system without the commission's approval as required
59-23 by Section 341.035(a);
59-24 (6) violates a provision of Section 341.0351 or
59-25 341.0352 [341.035(b) or (c)];
59-26 (7) fails to remove a sign as required by Section
59-27 341.0354 [341.035(e)]; or
59-28 (8) violates a provision of Section 341.036.
59-29 (b) An offense under Subsection (a) is a Class C misdemeanor
59-30 [punishable by a fine of not less than $100].
59-31 SECTION 6.22. Subsections (b) through (i), Section 341.048,
59-32 Health and Safety Code, are amended to read as follows:
59-33 (b) A person who causes, suffers, allows, or permits a
59-34 violation under this subchapter shall be assessed a civil penalty
59-35 of not less than $50 nor more than $10,000 [$500] for each
59-36 violation. Each day of a continuing violation is a separate
59-37 violation.
59-38 (c) [If it is shown on a trial of the defendant that the
59-39 defendant has previously been assessed a civil penalty under this
59-40 section within a year before the date on which the violation being
59-41 tried occurred, the defendant shall be assessed a civil penalty of
59-42 not less than $50 nor more than $1,000 for each subsequent
59-43 violation under this subchapter. Each day of a continuing
59-44 violation is a separate violation.]
59-45 [(d)] If it appears that a person has violated, is
59-46 violating, or threatens to violate a provision under this
59-47 subchapter, the commission, a county, or a municipality may
59-48 institute a civil suit in a district court for:
59-49 (1) injunctive relief to restrain the person from
59-50 continuing the violation or threat of violation;
59-51 (2) the assessment and recovery of a civil penalty; or
59-52 (3) both injunctive relief and a civil penalty.
59-53 (d) [(e)] The commission is a necessary and indispensable
59-54 party in a suit brought by a county or municipality under this
59-55 section.
59-56 (e) [(f)] On the commission's request, the attorney general
59-57 shall institute a suit in the name of the state for injunctive
59-58 relief, to recover a civil penalty, or for both injunctive relief
59-59 and civil penalty.
59-60 (f) [(g)] The suit may be brought in:
59-61 (1) Travis County;
59-62 (2) [, in] the county in which the defendant resides;
59-63 or
59-64 (3) [, or in] the county in which the violation or
59-65 threat of violation occurs.
59-66 (g) [(h)] In a suit under this section to enjoin a violation
59-67 or threat of violation of this subchapter, the court shall grant
59-68 the state, county, or municipality, without bond or other
59-69 undertaking, any injunction that the facts may warrant including
60-1 temporary restraining orders, temporary injunctions after notice
60-2 and hearing, and permanent injunctions.
60-3 (h) [(i)] Civil penalties recovered in a suit brought under
60-4 this section by a county or municipality shall be equally divided
60-5 between:
60-6 (1) the state; and
60-7 (2) the county or municipality that first brought the
60-8 suit.
60-9 SECTION 6.23. Subsection (a), Section 341.049, Health and
60-10 Safety Code, is amended to read as follows:
60-11 (a) If a person causes, suffers, allows, or permits a
60-12 violation of this subchapter or a rule or order adopted under this
60-13 subchapter, the commission may assess a penalty against that person
60-14 as provided by this section. The penalty shall not be less than
60-15 $50 nor more than $10,000 [$500] for each violation. Each day of a
60-16 continuing violation may be considered a separate violation.
60-17 ARTICLE 7. WATER DATA COLLECTION AND DISSEMINATION
60-18 SECTION 7.01. Section 16.012, Water Code, is amended to read
60-19 as follows:
60-20 Sec. 16.012. STUDIES, INVESTIGATIONS, SURVEYS. (a) The
60-21 executive administrator shall make studies, investigations, and
60-22 surveys of the occurrence, quantity, quality, and availability of
60-23 the surface water and groundwater of this state and shall, in
60-24 cooperation with other entities of the state, guide the development
60-25 of a statewide water resource data collection and dissemination
60-26 network. For these purposes the board [staff] shall collect,
60-27 receive, analyze, [and] process, and facilitate access to basic
60-28 data and summary information concerning [the] water resources of
60-29 the state and provide guidance regarding data formats and
60-30 descriptions required to access and understand Texas water resource
60-31 data.
60-32 (b) The executive administrator shall:
60-33 (1) determine suitable locations for future water
60-34 facilities, including reservoir sites;
60-35 (2) determine suitable, cost-effective water supply
60-36 alternatives on a regional basis;
60-37 (3) locate land best suited for irrigation;
60-38 (4) [(3)] make estimates of the cost of proposed
60-39 irrigation works and the improvement of reservoir sites;
60-40 (5) [(4)] examine and survey reservoir sites; [and]
60-41 (6) monitor [(5) investigate] the effects of fresh
60-42 water inflows upon the bays and estuaries of Texas;
60-43 (7) monitor instream flows;
60-44 (8) lead a statewide effort, in coordination with
60-45 federal, state, and local governments, institutions of higher
60-46 education, and other interested parties, to develop a network for
60-47 collecting and disseminating water resource-related information
60-48 that is sufficient to support assessment of ambient water
60-49 conditions statewide;
60-50 (9) make recommendations for optimizing the efficiency
60-51 and effectiveness of water resource data collection and
60-52 dissemination as necessary to ensure that basic water resource data
60-53 are maintained and available for Texas;
60-54 (10) make basic data and summary information developed
60-55 under this subsection accessible to state agencies and other
60-56 interested persons; and
60-57 (11) cooperate with the Texas Agricultural Extension
60-58 Service to facilitate development and delivery of educational
60-59 programs as appropriate for rural and urban water users.
60-60 (c) In performing the duties required under Subdivisions
60-61 (1), (4), (5), (6), and (7) of Subsection (b), the executive
60-62 administrator shall consider advice from the Parks and Wildlife
60-63 Department.
60-64 (d) All entities of the state, including institutions of
60-65 higher education, that collect or use water data or information
60-66 shall cooperate with the board in the development of a coordinated,
60-67 efficient, and effective statewide water resource data collection
60-68 and dissemination network.
60-69 (e) The executive administrator shall keep full and proper
61-1 records of his work, observations, data, and calculations, all of
61-2 which are the property of the state.
61-3 (f) [(d)] In performing his duties under this section, the
61-4 executive administrator shall assist the commission in carrying out
61-5 the purposes and policies stated in Section 12.014 of this code.
61-6 (g) No later than December 31, 1999, the commission shall
61-7 obtain or develop an updated water availability model for six river
61-8 basins as determined by the commission. The commission shall
61-9 obtain or develop an updated water availability model for all
61-10 remaining river basins no later than December 31, 2001.
61-11 (h) Within 90 days of completing a water availability model
61-12 for a river basin, the commission shall provide to all holders of
61-13 existing permits, certified filings, and certificates of
61-14 adjudication in that river basin the projected amount of water that
61-15 would be available: during a drought of record; when flows are at
61-16 75 percent of normal; and when flows are at 50 percent of normal.
61-17 (i) Within 90 days of completing a water availability model
61-18 for a river basin, the commission shall provide to each regional
61-19 water planning group created under Section 16.051 of this code in
61-20 that river basin the projected amount of water that would be
61-21 available if cancellation procedures were instigated under the
61-22 provisions of Subchapter E, Chapter 11 of this code.
61-23 (j) Within 90 days of completing a water availability model
61-24 for a river basin, the commission, in coordination with the Parks
61-25 and Wildlife Department, shall determine the maximum amount of
61-26 municipal effluent that may be reused without causing harm to
61-27 existing water rights, instream uses, and freshwater inflows to
61-28 bays and estuaries. Within 30 days of making this determination,
61-29 the commission shall provide the projections to each regional water
61-30 planning group created under Section 16.051 of this code in that
61-31 river basin.
61-32 SECTION 7.02. Section 16.021, Water Code, is amended to read
61-33 as follows:
61-34 Sec. 16.021. TEXAS NATURAL RESOURCES INFORMATION SYSTEM.
61-35 (a) The executive administrator shall establish the Texas Natural
61-36 Resources Information System (TNRIS) to serve Texas agencies and
61-37 citizens as a centralized clearinghouse and referral center for
61-38 natural resource, census, and other socioeconomic data [as a
61-39 centralized information system incorporating all Texas natural
61-40 resource data, socioeconomic data related to natural resources, or
61-41 indexes related to that data that is collected by state agencies or
61-42 other entities].
61-43 (b) The Texas Geographic Information Council (TGIC) [Natural
61-44 Resources Information System Task Force] is created to provide
61-45 strategic planning and coordination in the acquisition and use of
61-46 geo-spatial data and related technologies in the State of Texas.
61-47 The executive administrator and the executive director of the
61-48 Department of Information Resources shall designate entities to be
61-49 members of the TGIC. The chief administrative officer of each
61-50 member entity shall select one representative to serve on the TGIC.
61-51 The duties of the TGIC shall include providing guidance to the
61-52 executive administrator in carrying out his duties under this
61-53 section and guidance to the Department of Information Resources for
61-54 development of rules related to statewide geo-spatial data and
61-55 technology standards. [The task force is composed of one
61-56 representative from each state agency designated by the executive
61-57 administrator. The executive administrator shall designate a state
61-58 agency as a participant in the task force if the agency collects or
61-59 uses natural resource and related socioeconomic data.
61-60 Representatives of each designated agency shall be selected by the
61-61 chief administrative officer of that agency.]
61-62 (c) Under the guidance of the TGIC [Texas Natural Resources
61-63 Information System Task Force], the executive administrator shall:
61-64 (1) further develop [and implement] the Texas Natural
61-65 Resources Information System by promoting and providing for
61-66 effective acquisition, archiving, documentation, indexing, and
61-67 dissemination of natural resource and related digital and
61-68 nondigital data and information;
61-69 (2) obtain information in response to disagreements
62-1 regarding names and name spellings for natural and cultural
62-2 features in the state and provide this information to the Board on
62-3 Geographic Names of the United States Department of the Interior;
62-4 (3) make recommendations to the Board on Geographic
62-5 Names of the United States Department of the Interior for naming
62-6 any natural or cultural feature subject to the limitations provided
62-7 by Subsection (d) of this section;
62-8 (4) make recommendations to the Department of
62-9 Information Resources to adopt and promote standards that
62-10 facilitate sharing of digital natural resource data and related
62-11 socioeconomic data among federal, state, and local governments and
62-12 other interested parties;
62-13 (5) acquire and disseminate natural resource and
62-14 related socioeconomic data describing the Texas-Mexico border
62-15 region; and
62-16 (6) coordinate, conduct, and facilitate the
62-17 development, maintenance, and use of mutually compatible statewide
62-18 digital base maps depicting natural resources and man-made
62-19 features.
62-20 (d) A recommendation may not be made under Subdivision (3)
62-21 of Subsection (c) of this section for:
62-22 (1) a feature previously named under statutory
62-23 authority or recognized by an agency of the federal government, the
62-24 state, or a political subdivision of the state;
62-25 (2) a feature located on private property for which
62-26 consent of the property owner cannot be obtained; or
62-27 (3) naming a natural or cultural feature for a living
62-28 person.
62-29 SECTION 7.03. On September 1, 1997, the Texas Natural
62-30 Resources Information System Task Force and the Texas Geographic
62-31 Information Systems Planning Council are merged into the Texas
62-32 Geographic Information Council. All designated member agencies of
62-33 both predecessor entities shall continue to serve as member
62-34 agencies of the Texas Geographic Information Council.
62-35 ARTICLE 8. REPEALER; EFFECTIVE DATE; SAVING; EMERGENCY
62-36 SECTION 8.01. Section 11.028, Water Code, is repealed.
62-37 SECTION 8.02. (a) Except as provided by Subsections (b)
62-38 through (f) of this section, this Act takes effect September 1,
62-39 1997.
62-40 (b) This section and Sections 2.03, 2.08, 2.09, 2.17, and
62-41 3.03 of this Act take effect immediately.
62-42 (c) Section 4.36 of this Act takes effect on the first day
62-43 of the first calendar quarter beginning on or after the date that
62-44 it may take effect under Section 39, Article III, Texas
62-45 Constitution.
62-46 (d) The change in law made by Section 4.36 of this Act to
62-47 Section 151.318, Tax Code, does not affect taxes imposed before the
62-48 effective date of Section 4.36 of this Act, and the law in effect
62-49 before the effective date of that section is continued in effect
62-50 for purposes of liability for and collection of those taxes.
62-51 (e) Sections 5.03, 5.05 through 5.08, and 5.11 of this Act
62-52 take effect on the date on which the constitutional amendment
62-53 proposed by S.J.R. No. 17, 75th Legislature, Regular Session, 1997,
62-54 takes effect. If that amendment is not approved by the voters,
62-55 those sections have no effect.
62-56 (f) The change in law made by Section 5.11 of this Act to
62-57 Subchapter B, Chapter 11, Tax Code, does not affect taxes imposed
62-58 before the effective date of Section 5.11 of this Act, and the law
62-59 in effect before the effective date of that section is continued in
62-60 effect for purposes of liability for and collection of those taxes.
62-61 SECTION 8.03. (a) The requirement of Section 341.035,
62-62 Health and Safety Code, as amended by Section 6.20 of this Act,
62-63 that certain persons must provide the executive director of the
62-64 Texas Natural Resource Conservation Commission with a business
62-65 plan, applies only to the prospective owner or operator of a public
62-66 drinking water supply system for which construction begins on or
62-67 after September 1, 1997.
62-68 (b) Section 341.0355, Health and Safety Code, as added by
62-69 Section 6.20 of this Act, applies to the owner or operator of a
63-1 public drinking water supply system regardless of the date
63-2 construction of the system began.
63-3 SECTION 8.04. (a) A change in law made by this Act that
63-4 applies to a criminal, civil, or administrative penalty applies
63-5 only to an offense committed or a violation that occurs on or after
63-6 the effective date of this Act. For the purposes of this Act, an
63-7 offense is committed or a violation occurs before the effective
63-8 date of this Act if any element of the offense or violation occurs
63-9 before that date.
63-10 (b) An offense committed or violation that occurs before the
63-11 effective date of this Act is covered by the law in effect when the
63-12 offense was committed or the violation occurred, and the former law
63-13 is continued in effect for this purpose.
63-14 SECTION 8.05. The importance of this legislation and the
63-15 crowded condition of the calendars in both houses create an
63-16 emergency and an imperative public necessity that the
63-17 constitutional rule requiring bills to be read on three several
63-18 days in each house be suspended, and this rule is hereby suspended,
63-19 and that this Act take effect and be in force according to its
63-20 terms, and it is so enacted.
63-21 * * * * *