AN ACT
 1-1     relating to the designation of water quality protection zones.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Section 26.179, Water Code, is amended by
 1-4     amending Subsections (c), (d), and (e), adding a new Subsection
 1-5     (g), amending and redesignating existing Subsection (g) as
 1-6     Subsection (h), redesignating existing Subsections (h) through (p)
 1-7     as Subsections (i) through (q), and amending existing Subsection
 1-8     (p) to read as follows:
 1-9           (c)  This section applies only to those areas within the
1-10     extraterritorial jurisdiction, outside the corporate limits of a
1-11     municipality with a population greater than 10,000 [5,000], and in
1-12     which the municipality either:
1-13                 (1)  has enacted or attempted to enforce three or more
1-14     ordinances or amendments thereto attempting to regulate water
1-15     quality or control or abate water pollution in the area within the
1-16     five years preceding the effective date of this Act, whether or not
1-17     such ordinances or amendments were legally effective upon the area;
1-18     or
1-19                 (2)  enacts or attempts to enforce three or more
1-20     ordinances or amendments thereto attempting to regulate water
1-21     quality or control or abate water pollution in the area in any
1-22     five-year period, whether or not such ordinances or amendments are
1-23     legally effective upon the area.
1-24           (d)  The owner or owners of a contiguous tract of land in
 2-1     excess of 1,000 acres that is located within an area subject to
 2-2     this section may designate the tract as a "water quality protection
 2-3     zone."  Upon prior approval of the Commission, the owner of a
 2-4     contiguous tract of land containing less than 1,000 acres, but not
 2-5     less than 500 acres, that is located within an area subject to this
 2-6     section may also designate the tract as a "water quality protection
 2-7     zone."  The tract shall be deemed contiguous if all of its parts
 2-8     are physically adjacent, without regard to easements,
 2-9     rights-of-way, roads, streambeds, and public or quasi-public land,
2-10     or it is part of an integrated development under common ownership
2-11     or control.  The purpose of a water quality protection zone is to
2-12     provide for the consistent protection of water quality in the zone
2-13     without imposing undue regulatory uncertainty on owners of land in
2-14     [the flexibility necessary to facilitate the development of the
2-15     land within the zone, but which also is intended to result in the
2-16     protection of the quality of water within] the zone.
2-17           (e)  A water quality protection zone designated under this
2-18     section shall be described by metes and bounds or other adequate
2-19     legal description.  The designation shall include a general
2-20     description of the proposed land uses within the zone, a water
2-21     quality plan for the zone, and a general description of the water
2-22     quality facilities and infrastructure to be constructed for water
2-23     quality protection in the zone.
2-24           (g)  A water quality protection zone designation may be
2-25     amended and a designation may specify the party or parties
2-26     authorized to execute amendments to the zone designation and the
 3-1     zone's water quality plan.  Land may be added to or excluded from a
 3-2     zone by amending the zone designation.  An amendment to a zone
 3-3     designation adding land to or excluding land from a zone must
 3-4     describe the boundaries of the zone as enlarged or reduced by metes
 3-5     and bounds or other adequate legal description.  An amendment to a
 3-6     zone designation is effective on its filing in the deed records of
 3-7     the county in which the land is located.  On application by all
 3-8     owners of land in a zone, or by each party authorized by the zone
 3-9     designation or an amendment to the zone designation to amend the
3-10     zone designation, the commission may terminate a zone on reasonable
3-11     terms and conditions specified by the commission.
3-12           (h)  The water quality plan for a zone, including the
3-13     determination of background levels of water quality, shall be
3-14     signed and sealed by a registered professional engineer
3-15     acknowledging that the plan is designed to achieve the water
3-16     quality protection standard defined in this section.  On
3-17     recordation in the deed records, the water quality plan shall be
3-18     submitted to and accepted by the commission for approval, and the
3-19     commission shall accept and approve the plan unless the commission
3-20     finds that implementation of the plan will not reasonably attain
3-21     the water quality protection as defined in this section.  A water
3-22     quality plan may be amended from time to time on filing with the
3-23     commission, and all such amendments shall be accepted by the
3-24     commission unless there is a finding that the amendment will impair
3-25     the attainment of water quality protection as defined in this
3-26     section.  The commission shall adopt and assess reasonable and
 4-1     necessary fees adequate to recover the costs of the commission in
 4-2     administering this section.  The commission's review and approval
 4-3     of a water quality plan shall be performed by the commission staff
 4-4     that is responsible for reviewing pollution abatement plans in the
 4-5     county where the zone is located.  The review and approval of the
 4-6     plan or any amendment to the plan shall be completed within 120
 4-7     days of the date it is filed with the commission.  A public hearing
 4-8     on the plan shall not be required, and acceptance, review, and
 4-9     approval of the water quality plan or water quality protection zone
4-10     shall not be delayed pending the adoption of rules.  The commission
4-11     shall have the burden of proof for the denial of a plan or
4-12     amendments to a plan, and any such denial shall be appealable to a
4-13     court of competent jurisdiction.  The water quality plan, or any
4-14     amendment thereto, shall be effective upon recordation of the plan
4-15     or the amendment in the deed records and shall apply during the
4-16     period of review and approval by the commission or appeal of the
4-17     denial of the plan or any amendment.  New development under a plan
4-18     may not proceed until the plan or amendment to the plan, as
4-19     appropriate, has been approved by the commission.
4-20           (i) [(h)]  The water quality plan for a zone shall be a
4-21     covenant running with the land.
4-22           (j) [(i)]  A municipality may not enforce in a zone any of
4-23     its ordinances, land use ordinances, rules, or requirements
4-24     including, but not limited to, the abatement of nuisances,
4-25     pollution control and abatement programs or regulations, water
4-26     quality ordinances, subdivision requirements, other than technical
 5-1     review and inspections for utilities connecting to a municipally
 5-2     owned water or wastewater system, or any environmental regulations
 5-3     which are inconsistent with the land use plan and the water quality
 5-4     plan or which in any way limit, modify, or impair the ability to
 5-5     implement and operate the water quality plan and the land use plan
 5-6     within the zone as filed; nor shall a municipality collect fees or
 5-7     assessments or exercise powers of eminent domain within a zone
 5-8     until the zone has been annexed for the municipality.  A water
 5-9     quality protection zone may be annexed by a municipality only after
5-10     the installation and completion of 90 percent of all facilities and
5-11     infrastructure described in the water quality plan for the entire
5-12     zone as being necessary to carry out such plan or the expiration of
5-13     20 years from the date of designation of the zone, whichever occurs
5-14     first.
5-15           (k) [(j)]  Subdivision plats within a water quality
5-16     protection zone shall be approved by the municipality in whose
5-17     extraterritorial jurisdiction the zone is located and the
5-18     commissioners court of the county in which the zone is located if:
5-19                 (1)  the plat complies with the subdivision design
5-20     regulations of the county; and
5-21                 (2)  the plat is acknowledged by a registered
5-22     professional engineer stating that the plat is in compliance with
5-23     the water quality plan within the water quality protection zone.
5-24           (l) [(k)]  A water quality protection zone implementing a
5-25     water quality plan which meets the requirements of this section
5-26     shall be presumed to satisfy all other state and local requirements
 6-1     for the protection of water quality;  provided, however, that:
 6-2                 (1)  development in the zone shall comply with all
 6-3     state laws and commission rules regulating water quality which are
 6-4     in effect on the date the zoning is designated; and
 6-5                 (2)  nothing in this section shall supersede or
 6-6     interfere with the applicability of water quality measures or
 6-7     regulations adopted by a conservation and reclamation district
 6-8     comprising more than two counties and which apply to the watershed
 6-9     area of a surface lake or surface reservoir that impounds at least
6-10     4,000 acre-feet of water.
6-11           (m) [(l)](1)  One or more of the provisions of this section
6-12     may be waived by the owner or owners of property that is or becomes
6-13     subject to an agreement entered into after the effective date of
6-14     this Act between the owner or owners of land within the zone and
6-15     the municipality.  The agreement shall be in writing, and the
6-16     parties may agree:
6-17                       (A)  to guarantee continuation of the
6-18     extraterritorial status of the zone and its immunity from
6-19     annexation by the municipality for a period not to exceed 15 years
6-20     after the effective date of the agreement;
6-21                       (B)  to authorize certain land uses and
6-22     development within the zone;
6-23                       (C)  to authorize enforcement by the municipality
6-24     of certain municipal land use and development regulations within
6-25     the zone, in the same manner such regulations are enforced within
6-26     the municipality's boundaries, as may be agreed by the landowner
 7-1     and the municipality;
 7-2                       (D)  to vary any watershed protection
 7-3     regulations;
 7-4                       (E)  to authorize or restrict the creation of
 7-5     political subdivisions within the zone; and
 7-6                       (F)  to such other terms and considerations the
 7-7     parties consider appropriate, including, but not limited to, the
 7-8     continuation of land uses and zoning after annexation of the zone,
 7-9     the provision of water and wastewater service to the property
7-10     within the zone, and the waiver or conditional waiver of provisions
7-11     of this section.
7-12                 (2)  An agreement under this section shall meet the
7-13     requirements of and have the same force and effect as an agreement
7-14     entered into pursuant to Section 42.046, Local Government Code.
7-15           (n) [(m)]  In addition to the requirements of Subsections
7-16     (a)(1) and (a)(2), the commission may require and enforce
7-17     additional water quality protection measures to comply with
7-18     mandatory federal water quality requirements, standards, permit
7-19     provisions, or regulations.
7-20           (o) [(n)]  This section does not apply to an area within the
7-21     extraterritorial jurisdiction of a municipality with a population
7-22     greater than 900,000 that has extended to the extraterritorial
7-23     jurisdiction of the municipality an ordinance whose purpose is to
7-24     prevent the pollution of an aquifer which is the sole or principal
7-25     drinking water source for the municipality.
7-26           (p) [(o)]  If a municipality's action results in part of a
 8-1     zone being located outside the municipality's extraterritorial
 8-2     jurisdiction, the entire zone is removed from the municipality's
 8-3     extraterritorial jurisdiction.  A zone removed from a
 8-4     municipality's extraterritorial jurisdiction may not be brought
 8-5     into the municipality's extraterritorial jurisdiction before the
 8-6     20th anniversary of the date on which the zone was designated.
 8-7           (q) [(p)]  In addition to the fees authorized under
 8-8     Subsection (h) [(g)], the commission shall adopt and assess
 8-9     reasonable and necessary fees adequate to recover the commission's
8-10     costs in monitoring water quality associated with water quality
8-11     protection zones.
8-12           SECTION 2.  The changes in law made by this Act apply only to
8-13     a water quality plan or an amendment to a water quality plan that
8-14     is submitted to the Texas Natural Resource Conservation Commission
8-15     for review and approval on or after the effective date of this Act.
8-16           SECTION 3.  All actions taken by the Texas Natural Resource
8-17     Conservation Commission or another state agency before the
8-18     effective date of this Act relating to the approval under Section
8-19     26.179, Water Code, of the designation of a tract as a water
8-20     quality protection zone, of a water quality plan for a zone, or of
8-21     an amendment to a designation or plan are ratified, validated,
8-22     approved, and confirmed.
8-23           SECTION 4.  The importance of this legislation and the
8-24     crowded condition of the calendars in both houses create an
8-25     emergency and an imperative public necessity that the
8-26     constitutional rule requiring bills to be read on three several
 9-1     days in each house be suspended, and this rule is hereby suspended,
 9-2     and that this Act take effect and be in force from and after its
 9-3     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1165 passed the Senate on
         April 8, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendments on May 28, 1999, by the following vote:
         Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1165 passed the House, with
         amendments, on May 22, 1999, by the following vote:  Yeas 143,
         Nays 0, one present not voting.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor