By:  Brown                                            S.B. No. 1311
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the development and management of the water resources.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Subsection (a), Section 5.504, Water Code, is
 1-4     amended to read as follows:
 1-5           (a)  If the commission, the executive director, or the
 1-6     executive director's representative issues an emergency order under
 1-7     this subchapter without a hearing, the order shall set a time and
 1-8     place for a hearing to affirm, modify, or set aside the emergency
 1-9     order to be held before the commission or its designee as soon as
1-10     practicable after the order is issued.  If the emergency order is
1-11     issued under Section 5.517 or 5.518, the order shall set a time for
1-12     the hearing not later than the 20th day after the date the
1-13     emergency order is issued.
1-14           SECTION 2.  Subchapter L, Chapter 5, Water Code, is amended
1-15     by adding Sections 5.517, 5.518, 5.519, and 5.520 to read as
1-16     follows:
1-17           Sec. 5.517.  EMERGENCY PERMIT TO DIVERT AND USE WATER;
1-18     AMENDMENT TO WATER RIGHT.  (a)  Except as provided by Section 5.506
1-19     and after notification to the governor, the commission by emergency
1-20     order may issue a permit to divert and use water or amend an
1-21     existing permit, certified filing, or certificate of adjudication
1-22     for an initial period not to exceed 120 days if the commission
1-23     finds that:
1-24                 (1)  emergency conditions exist that present an
 2-1     imminent threat to the public health, safety, and welfare or the
 2-2     environment and that override the necessity to comply with
 2-3     established statutory procedures; and
 2-4                 (2)  there is no feasible practicable alternative to
 2-5     the emergency authorization.  The emergency authorization may be
 2-6     renewed once for a period not to exceed 60 days.
 2-7           (b)  The executive director may issue an emergency order if
 2-8     an imminent threat to the public health, safety, and welfare or the
 2-9     environment exists that requires emergency action before the
2-10     commission can take action under Subsection (a) and there is no
2-11     feasible alternative.  If the executive director issues an
2-12     emergency order under this subsection, the commission shall hold a
2-13     hearing as provided for in Section 5.504 as soon as practicable but
2-14     not later than 20 days after issuance of the order to affirm,
2-15     modify, or set aside the order.
2-16           (c)  The notice requirements of Section 11.132 relating to
2-17     the time for notice, newspaper notice, and method of giving a
2-18     person notice do not apply to a hearing held on an application for
2-19     an emergency order under this section.  The commission shall give
2-20     the general notice of the hearing that the commission considers
2-21     practicable under the circumstances.
2-22           (d)  The commission may adopt rules and impose fees necessary
2-23     to carry out the provisions of this section.
2-24           (e)  An emergency order under this section does not vest in
2-25     the grantee any right to the diversion, impoundment, or use of
2-26     water and expires by its terms.
 3-1           Sec. 5.518.  EMERGENCY ORDER FOR TEMPORARY TRANSFER OF USE OF
 3-2     WATER RIGHT.  (a)  The commission by emergency order may grant the
 3-3     temporary transfer and use of all or part of a surface water right
 3-4     for other than domestic or municipal use to a retail or wholesale
 3-5     water supplier for public health and safety purposes.
 3-6           (b)  The commission may direct the applicant to timely pay
 3-7     the amounts for which the applicant may be potentially liable under
 3-8     this section and to fully indemnify and hold harmless the state,
 3-9     the executive director, and the commission from any and all
3-10     liability for the order sought.  The commission may order bond or
3-11     other surety in a form acceptable to the commission as a condition
3-12     for an emergency order under this section.  The commission may not
3-13     grant an emergency authorization under this section that would
3-14     cause a violation of a federal regulation.
3-15           (c)  In transferring the amount of water requested by the
3-16     applicant, the executive director or the commission shall allocate
3-17     the requested amount among two or more permits, certified filings,
3-18     or certificates of adjudication for other than domestic or
3-19     municipal use.
3-20           (d)  A person granted an emergency order under this section
3-21     is liable to the owner from whom the use is transferred for the
3-22     fair market value of the water transferred and for any damages
3-23     proximately caused by the transfer of use.  If, within 60 days of
3-24     the termination of the order, the parties do not agree on the
3-25     amount due, or if full payment is not made, either party may file a
3-26     complaint with the commission to determine the amount due.
 4-1           (e)  The commission by rule shall establish a dispute
 4-2     resolution procedure for a complaint filed under this section.
 4-3     After exhausting all administrative remedies under this section, an
 4-4     owner from whom the use is transferred may file suit to recover or
 4-5     determine the amount due in a district court in the county where
 4-6     the owner resides or has its headquarters.  The prevailing party in
 4-7     a suit filed under this subsection is entitled to recover court
 4-8     costs and reasonable attorney's fees.
 4-9           Sec. 5.519.  EMERGENCY WORKS SAFETY ORDER.  The commission
4-10     may issue a mandatory or prohibitory emergency order directing the
4-11     owner of a dam, levee, or other water-storage or flood-control work
4-12     to repair, modify, maintain, dewater, or remove a work if the
4-13     commission finds that:
4-14                 (1)  the existing condition of the work is causing or
4-15     will cause extensive or severe property damage or economic loss to
4-16     others or is posing an immediate and serious threat to human life
4-17     or health; and
4-18                 (2)  other procedures available to the commission to
4-19     remedy or prevent the occurrence will result in unreasonable delay.
4-20           Sec. 5.520.  EMERGENCY ORDER FOR OPERATION OF UTILITY THAT
4-21     DISCONTINUES OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER.
4-22     The commission may issue an emergency order appointing a willing
4-23     person to temporarily manage and operate a utility under Section
4-24     7.404.  Notice of the action is adequate if the notice is mailed or
4-25     hand delivered to the last known address of the utility's
4-26     headquarters.
 5-1           SECTION 3.  Section 7.004, Water Code, is amended to read as
 5-2     follows:
 5-3           Sec. 7.004.  REMEDIES CUMULATIVE.  The remedies under this
 5-4     chapter are cumulative of all other remedies.  Nothing in this
 5-5     chapter affects the right of a private corporation, [or]
 5-6     individual, or political subdivision that has a justiciable
 5-7     interest to pursue any available common law remedy to enforce a
 5-8     right, to abate a condition of pollution or other nuisance, to
 5-9     recover damages to enforce a right, or to prevent or seek redress
5-10     or compensation for the violation of a right or otherwise redress
5-11     an injury.
5-12           SECTION 4.  Subchapter B, Chapter 7, Water Code, is amended
5-13     by adding Section 7.034 to read as follows:
5-14           Sec. 7.034.  ATTORNEY'S FEES; COSTS.  A district court may
5-15     award the costs of litigation, including reasonable attorney's fees
5-16     and expert costs, to any political subdivision of the state,
5-17     private corporation, or individual that is a water right holder and
5-18     that prevails in a suit for injunctive relief to redress an
5-19     unauthorized diversion, impoundment, or use of surface water in
5-20     violation of Chapter 11 or a rule adopted under Chapter 11.
5-21           SECTION 5.  Subsection (b), Section 7.051, Water Code, is
5-22     amended to read as follows:
5-23           (b)  Except as provided by this subsection, this [This]
5-24     subchapter does not apply to violations of Chapter [11,] 12 or[,
5-25     13,] 16[, or 36 of this code, or Chapter 341, Health and Safety
5-26     Code].  This subchapter does apply to Section 16.236.
 6-1           SECTION 6.  Section 7.052, Water Code, is amended to read as
 6-2     follows:
 6-3           Sec. 7.052.  MAXIMUM PENALTY.  (a)  The amount of the penalty
 6-4     for a violation of Chapter 18, 32, 33, or 34 of this code or
 6-5     Chapter 366, 371, or 372, Health and Safety Code, may not exceed
 6-6     $2,500 a day for each violation.
 6-7           (b)  The amount of the penalty for a violation of Chapter 11
 6-8     or a rule or order adopted under or a permit, certified filing, or
 6-9     certificate of adjudication issued under Chapter 11 may not exceed
6-10     $5,000 a day for each violation.
6-11           (c)  The penalty for a violation of a rule or order adopted
6-12     under Section 16.236 may not exceed $1,000 a day for each
6-13     violation.
6-14           (d)  The amount of the penalty for a violation under Chapter
6-15     341, Health and Safety Code, may not be less than $50 or more than
6-16     $1,000 for each violation.
6-17           (e)  The amount of the penalty for all other violations
6-18     within the jurisdiction of the commission to enforce may not exceed
6-19     $10,000 a day for each violation.
6-20           (f) [(c)]  Each day that a continuing violation occurs may be
6-21     considered a separate violation.  The commission may authorize an
6-22     installment payment schedule for an administrative penalty assessed
6-23     under this subchapter, except for an administrative penalty
6-24     assessed under Section 7.057 or assessed after a hearing under
6-25     Section 7.058.
6-26           SECTION 7.  Section 7.054, Water Code, is amended to read as
 7-1     follows:
 7-2           Sec. 7.054.  REPORT OF VIOLATION.  (a)  If, after examination
 7-3     of a possible violation and the facts surrounding that possible
 7-4     violation, the executive director concludes that a violation has
 7-5     occurred, the executive director may issue a preliminary report in
 7-6     accordance with commission rules that includes recommendations
 7-7     regarding any penalty or corrective action.
 7-8           (b)  A report regarding a possible violation under Chapter 11
 7-9     must state the facts on which the conclusion was based and
7-10     recommend the amount of any penalty.  The executive director shall
7-11     base the recommended amount of the proposed penalty on the factors
7-12     provided by Section 7.053 and shall analyze each factor for the
7-13     benefit of the commission.
7-14           SECTION 8.  Section 7.069, Water Code, is amended to read as
7-15     follows:
7-16           Sec. 7.069.  DISPOSITION OF PENALTY.  (a)  Except as provided
7-17     by Subsection (b), a [A] penalty collected under this subchapter
7-18     shall be deposited to the credit of the general revenue fund.
7-19           (b)  A penalty collected under this subchapter from a public
7-20     utility shall be paid to the commission and deposited in the water
7-21     utility improvement account as provided by Section 341.0485, Health
7-22     and Safety Code.
7-23           SECTION 9.  Section 7.102, Water Code, is amended to read as
7-24     follows:
7-25           Sec. 7.102.  MAXIMUM PENALTY.  (a)  A person who causes,
7-26     suffers, allows, or permits a violation of a statute, rule, order,
 8-1     or permit relating to Chapter 11, 18, 32, 33, or 34 of this code or
 8-2     Chapter 366, 371, or 372, Health and Safety Code, shall be assessed
 8-3     for each violation a civil penalty not less than $50 nor greater
 8-4     than $5,000 for each day of each violation as the court or jury
 8-5     considers proper.
 8-6           (b)  The amount of a penalty for a violation of a rule or
 8-7     order issued by the commission under Section 12.052 may not exceed
 8-8     $5,000.
 8-9           (c)  A person who causes, suffers, allows, or permits a
8-10     violation of a statute, rule, order, or permit relating to Chapter
8-11     13 shall be assessed for each violation a civil penalty not less
8-12     than $100 nor greater than $5,000 for each day of each violation as
8-13     the court or jury considers proper.
8-14           (d)  A person who causes, suffers, allows, or permits a
8-15     violation of a statute, rule, order, or permit relating to any
8-16     other matter within the commission's jurisdiction to enforce, other
8-17     than violations of Chapter [11,]12 or[, 13,] 16[, or 36] of this
8-18     code, or Chapter 341, Health and Safety Code, shall be assessed for
8-19     each violation of a civil penalty not less than $50 nor greater
8-20     than $25,000 for each day of each violation as the court or jury
8-21     considers proper.
8-22           (e)  Each day of a continuing violation is a separate
8-23     violation.
8-24           SECTION 10.  Subsections (a) and (c), Section 7.105, Water
8-25     Code, are amended to read as follows:
8-26           (a)  On the request of the executive director or the
 9-1     commission, the attorney general shall institute a suit in the name
 9-2     of the state for injunctive relief under Section 7.032, to recover
 9-3     a civil penalty, or for both injunctive relief and a civil penalty.
 9-4     The attorney general may initiate a suit for recovery of a penalty
 9-5     under this section for a violation under Section 13.414.
 9-6           (c)  Except as provided by this subsection, the [The] suit
 9-7     may be brought in Travis County, in the county in which the
 9-8     defendant resides, or in the county in which the violation or
 9-9     threat of violation occurs.  A suit to recover a penalty for a
9-10     violation of a rule or order issued by the commission under Section
9-11     12.052 may be brought in Travis County.
9-12           SECTION 11.  Subchapter D, Chapter 7, Water Code, is amended
9-13     by adding Section 7.1075 to read as follows:
9-14           Sec. 7.1075.  DISPOSITION OF PENALTY COLLECTED FROM PUBLIC
9-15     UTILITY.  A penalty collected under this subchapter from a public
9-16     utility shall be paid to the commission and deposited in the water
9-17     utility improvement account as provided by Section 341.0485, Health
9-18     and Safety Code.
9-19           SECTION 12.  Subchapter D, Chapter 7, Water Code, is amended
9-20     by adding Section 7.112 to read as follows:
9-21           Sec. 7.112.  LIMITATION ON SUIT FOR VIOLATION OF SECTION
9-22     11.081.  An action to collect the penalty provided by Section 7.102
9-23     for a violation of Section 11.081 must be brought within two years
9-24     from the date of the alleged violation.
9-25           SECTION 13.  Section 7.351, Water Code, is amended to read as
9-26     follows:
 10-1          Sec. 7.351.  CIVIL SUITS.  If it appears that a violation or
 10-2    threat of violation of Chapter 16, 26, 28, or 34 of this code or
 10-3    Chapter 341, 361, 371, 372, or 382, Health and Safety Code, or a
 10-4    provision of Chapter 401, Health and Safety Code, under the
 10-5    commission's jurisdiction or a rule adopted or an order or a permit
 10-6    issued under those chapters or provisions has occurred or is
 10-7    occurring in the jurisdiction of a local government, the local
 10-8    government or, in the case of a violation of Chapter 401, Health
 10-9    and Safety Code, a person affected as defined in that chapter, may
10-10    institute a civil suit under Subchapter D in the same manner as the
10-11    commission in a district court by its own attorney for the
10-12    injunctive relief or civil penalty, or both, as authorized by this
10-13    chapter against the person who committed, is committing, or is
10-14    threatening to commit the violation.
10-15          SECTION 14.  Section 11.0843, Water Code, is amended to read
10-16    as follows:
10-17          Sec. 11.0843.  FIELD CITATION.  [(a)]  Upon witnessing a
10-18    violation of this chapter or a rule or order or a water right
10-19    issued under this chapter, a watermaster or the watermaster's
10-20    deputy, as defined by commission rule, may issue the alleged
10-21    violator a field citation alleging that a violation has occurred
10-22    [and providing the alleged violator the option of either:]
10-23                [(1)  without admitting to or denying the alleged
10-24    violation, paying an administrative penalty in accordance with the
10-25    predetermined penalty amount established under Subsection (b) of
10-26    this section and taking remedial action as provided in the
 11-1    citation; or]
 11-2                [(2)  requesting a hearing on the alleged violation in
 11-3    accordance with Section 11.0842 of this code.]
 11-4          [(b)  By rule the commission shall establish penalty amounts
 11-5    corresponding to types of violations of this chapter or rules or
 11-6    orders adopted or water rights issued under this chapter.]
 11-7          [(c)  A penalty collected under this section shall be
 11-8    deposited in the state treasury to the credit of the general
 11-9    revenue fund].
11-10          SECTION 15.  Section 11.085, Water Code, is amended by adding
11-11    Subsection (w) to read as follows:
11-12          (w)  The requirements of this section apply to the transfer
11-13    of water from one river basin to another regardless of whether all
11-14    or any part of the water right, permit, certified filing, or
11-15    certificate of adjudication under which the water is authorized to
11-16    be used is also transferred.
11-17          SECTION 16.  Subsection (a), Section 11.138, Water Code, is
11-18    amended to read as follows:
11-19          (a)  The commission may issue temporary permits for
11-20    beneficial purposes to the extent that they do not interfere with
11-21    or adversely affect prior appropriations or vested rights on the
11-22    stream from which water is to be diverted under such temporary
11-23    permit.  The commission may, by appropriate order, authorize any
11-24    member of the commission to approve and issue temporary permits
11-25    without notice and hearing if it appears to such issuing party that
11-26    sufficient water is available at the proposed point of diversion to
 12-1    satisfy the requirements of the temporary permit as well as all
 12-2    existing rights.  No temporary permit issued without notice and
 12-3    hearing shall authorize more than 10 acre-feet of water, nor may it
 12-4    be for a term in excess of one year.  The commission by rule may
 12-5    authorize the beneficial use, without a permit, of not more than 25
 12-6    acre-feet of water, for a term not to exceed one year, if the
 12-7    diversion of water will not affect existing water right holders and
 12-8    the user of the water registers the use with the commission in the
 12-9    manner required by the commission.
12-10          SECTION 17.  Section 11.139, Water Code, is amended to read
12-11    as follows:
12-12          Sec. 11.139.  Emergency Authorizations.  [(a)]  Except as
12-13    provided by Section 5.506 [11.148] of this code, the commission may
12-14    grant an emergency permit, order, or amendment to an existing
12-15    permit, certified filing, or certificate of adjudication under
12-16    Subchapter L, Chapter 5 [after notice to the governor for an
12-17    initial period of not more than 120 days if the commission finds
12-18    that emergency conditions exist which present an imminent threat to
12-19    the public health and safety and which override the necessity to
12-20    comply with established statutory procedures and there are no
12-21    feasible practicable alternatives to the emergency authorization.
12-22    Such emergency action may be renewed once for not longer than 60
12-23    days].
12-24          [(b)  A person desiring to obtain an emergency authorization
12-25    under this section shall submit to the commission a sworn
12-26    application containing the following information:]
 13-1                [(1)  a description of the condition of emergency
 13-2    justifying the granting of the emergency authorization;]
 13-3                [(2)  a statement setting forth facts which support the
 13-4    findings required under this section;]
 13-5                [(3)  an estimate of the dates on which the proposed
 13-6    authorization should begin and end;]
 13-7                [(4)  a description of the action sought and the
 13-8    activity proposed to be allowed, mandated, or prohibited; and]
 13-9                [(5)  any other statements or information required by
13-10    the commission.]
13-11          [(c)  If the commission finds the applicant's statement made
13-12    under Subsection (b) of this section to be correct, the commission
13-13    may grant emergency authorizations under this section without
13-14    notice and hearing or with such notice and hearing as the
13-15    commission considers practicable under the circumstances.]
13-16          [(d)  If the commission grants an emergency authorization
13-17    under this section without a hearing, the authorization shall fix a
13-18    time and place for a hearing to be held before the commission.  The
13-19    hearing shall be held as soon after the emergency authorization is
13-20    granted as is practicable but not later than 20 days after the
13-21    emergency authorization is granted.]
13-22          [(e)  At the hearing, the commission shall affirm, modify, or
13-23    set aside the emergency authorization.  Any hearing on an emergency
13-24    authorization shall be conducted in accordance with Chapter 2001,
13-25    Government Code, and rules of the commission.]
13-26          [(f)  If an imminent threat to the public health and safety
 14-1    exists which requires emergency action before the commission can
 14-2    take action as provided by Subsections (a) through (c) of this
 14-3    section and there are no feasible alternatives, the executive
 14-4    director may grant an emergency authorization after notice to the
 14-5    governor.  If the executive director issues an emergency
 14-6    authorization under this subsection, the commission shall hold a
 14-7    hearing as provided for in Subsections (d) and (e) of this section.
 14-8    The requirements of Subsection (b) of this section shall be
 14-9    satisfied by the applicant before action is taken by the executive
14-10    director on the request for emergency authorization.]
14-11          [(g)  The requirements of Section 11.132 of this code
14-12    relating to the time for notice, newspaper notice, and method of
14-13    giving a person notice do not apply to a hearing held on an
14-14    application for an emergency authorization under this section, but
14-15    such general notice of the hearing shall be given as the
14-16    commission, under Subsections (c) and (e) of this section,
14-17    considers practicable under the circumstances.]
14-18          [(h)  The commission may grant an emergency authorization
14-19    under this section for the temporary transfer and use of all or
14-20    part of a permit, certified filing, or certificate of adjudication
14-21    for other than domestic or municipal use to a retail or wholesale
14-22    water supplier for public health and safety purposes.  In addition
14-23    to the requirements contained in Subsection (b) of this section,
14-24    the commission may direct that the applicant will timely pay the
14-25    amounts for which the applicant may be potentially liable under
14-26    Subsection (j) of this section and to the extent authorized by law
 15-1    will fully indemnify and hold harmless the state, the executive
 15-2    director, and the commission from any and all liability for the
 15-3    authorization sought.  The commission may order bond or other
 15-4    surety in a form acceptable to the commission as a condition for
 15-5    such emergency authorization.  The commission may not grant an
 15-6    emergency authorization under this section which would cause a
 15-7    violation of a federal regulation.]
 15-8          [(i)  In transferring the amount of water requested by the
 15-9    applicant, the executive director or the commission shall allocate
15-10    the requested amount among two or more permits, certified filings,
15-11    or certificates of adjudication for other than domestic or
15-12    municipal use.]
15-13          [(j)  The person granted an emergency authorization under
15-14    Subsection (h) of this section is liable to the owner and the
15-15    owner's agent or lessee from whom the use is transferred for the
15-16    fair market value of the water transferred as well as for any
15-17    damages caused by the transfer of use.  If, within 60 days of the
15-18    termination of the authorization, the parties do not agree on the
15-19    amount due, or if full payment is not made, either party may file a
15-20    complaint with the commission to determine the amount due.  The
15-21    commission may use dispute resolution procedures for a complaint
15-22    filed under this subsection.  After exhausting all administrative
15-23    remedies under this subsection, an owner from whom the use is
15-24    transferred may file suit to recover or determine the amount due in
15-25    a district court in the county where the owner resides or has its
15-26    headquarters.  The prevailing party in a suit filed under this
 16-1    subsection is entitled to recover court costs and reasonable
 16-2    attorney's fees.]
 16-3          [(k)  The commission may prescribe rules and adopt fees which
 16-4    are necessary to carry out the provisions of this section.]
 16-5          [(l)  An emergency authorization does not vest in the grantee
 16-6    any right to the diversion, impoundment, or use of water and shall
 16-7    expire and be cancelled in accordance with its terms.]
 16-8          SECTION 18.  Subsection (a), Section 11.142, Water Code, is
 16-9    amended to read as follows:
16-10          (a)  Without obtaining a permit, a person may construct on
16-11    his own property a dam or reservoir with normal storage of not more
16-12    than 200 acre-feet of water for domestic and livestock purposes.
16-13    Normal storage may involve the temporary storage of greater than
16-14    200 acre-feet if the owner of the structure maintains records which
16-15    can demonstrate that throughout a 12-month period an average of not
16-16    more than 200 acre-feet of water is impounded in such a structure.
16-17          SECTION 19.  Subsection (b), Section 11.173, Water Code, is
16-18    amended to read as follows:
16-19          (b)  A permit, certified filing, or certificate of
16-20    adjudication or a portion of a permit, certified filing, or
16-21    certificate of adjudication is exempt from cancellation under
16-22    Subsection (a) of this section:
16-23                (1)  to the extent of the owner's participation in the
16-24    Conservation Reserve Program authorized by the Food Security Act,
16-25    Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985)
16-26    or a similar governmental program; [or]
 17-1                (2)  if any portion of the water authorized to be used
 17-2    pursuant to a permit, certified filing, or certificate of
 17-3    adjudication has been used in accordance with a regional water plan
 17-4    approved pursuant to Section 16.053 of this code;
 17-5                (3)  if the permit, certified filing, or certificate of
 17-6    adjudication was obtained to meet demonstrated long-term public
 17-7    water supply or electric generation needs as evidenced by a water
 17-8    management plan developed by the holder and consistent with
 17-9    projections of future water needs contained in the state water
17-10    plan; or
17-11                (4)  if the permit, certified filing, or certificate of
17-12    adjudication was obtained as the result of the construction of a
17-13    reservoir funded, in whole or in part, by the holder of the permit,
17-14    certified filing, or certificate of adjudication as part of the
17-15    holder's long-term water planning.
17-16          SECTION 20.  Subsection (b), Section 11.177, Water Code, is
17-17    amended to read as follows:
17-18          (b)  In determining what constitutes reasonable diligence or
17-19    a justified nonuse as used in Subsection (a)(2) of this section,
17-20    the commission shall give consideration to:
17-21                (1)  whether sufficient water is available in the
17-22    source of supply to meet all or part of the appropriation during
17-23    the 10-year period of nonuse;
17-24                (2)  whether the nonuse is justified by the holder's
17-25    participation in the federal Conservation Reserve Program or a
17-26    similar governmental program as provided by Section 11.173(b)(1) of
 18-1    this code;
 18-2                (3)  [whether the permit, certified filing, or
 18-3    certificate of adjudication was obtained to meet demonstrated
 18-4    long-term public water supply or electric generation needs as
 18-5    evidenced by a water management plan developed by the holder and
 18-6    consistent with projections of future water needs contained in the
 18-7    state water plan;]
 18-8                [(4)  whether the permit, certified filing, or
 18-9    certificate of adjudication was obtained as the result of the
18-10    construction of a reservoir funded, in whole or in part, by the
18-11    holder of the permit, certified filing, or certificate of
18-12    adjudication as part of the holder's long-term water planning;]
18-13                [(5)]  whether the existing or proposed authorized
18-14    purpose and place of use are consistent with an approved regional
18-15    water plan as provided by Section 16.053 of this code;
18-16                (4) [(6)]  whether the permit, certified filing, or
18-17    certificate of adjudication has been deposited into the Texas Water
18-18    Bank as provided by Sections 15.7031 and 15.704 of this code or
18-19    whether it can be shown that the water right or water available
18-20    under the right is currently being made available for purchase
18-21    through private marketing efforts; or
18-22                (5) [(7)]  whether the permit, certified filing, or
18-23    certificate of adjudication has been reserved to provide for
18-24    instream flows or bay and estuary inflows.
18-25          SECTION 21.  Subsections (c), (d), (e), and (f), Section
18-26    12.052, Water Code, are amended to read as follows:
 19-1          (c)  The [If the] owner of a dam that is required to be
 19-2    constructed, reconstructed, repaired, or removed in order to comply
 19-3    with the rules and orders promulgated under Subsection (a) of this
 19-4    section may not wilfully fail [fails] or refuse [refuses] to comply
 19-5    within the 30-day period following the date of the commission's
 19-6    final, nonappealable order to do so and may not [or if a person]
 19-7    wilfully fail [fails] to comply with any rule or other order issued
 19-8    by the commission under this section within the 30-day period
 19-9    following the effective date of the order[, he is liable to a
19-10    penalty of not more than $5,000 a day for each day he continues to
19-11    violate this section.  The state may recover the penalty by suit
19-12    brought for that purpose in the district court of Travis County].
19-13          (d)  The commission may issue an emergency works safety order
19-14    under Section 5.519.  [If the commission determines that the
19-15    existing condition of the dam is creating or will cause extensive
19-16    or severe property damage or economic loss to others or is posing
19-17    an immediate and serious threat to human life or health and that
19-18    other procedures available to the commission to remedy or prevent
19-19    the occurrence of the situation will result in unreasonable delay,
19-20    the commission may issue an emergency order, either mandatory or
19-21    prohibitory in nature, directing the owner of a dam to repair,
19-22    modify, maintain, dewater, or remove the dam which the commission
19-23    determines is unsafe.  The emergency order may be issued without
19-24    notice to the dam owner or with notice the commission considers
19-25    practicable under the circumstances.  The notice does not have to
19-26    comply with Chapter 2001, Government Code.]
 20-1          (e)  [If the commission issues an emergency order under
 20-2    authority of this section without notice to the dam owner, the
 20-3    commission shall fix a time and place for a hearing which shall be
 20-4    held as soon as practicable to affirm, modify, or set aside the
 20-5    emergency order.  The notice does not have to comply with Chapter
 20-6    2001, Government Code.  If the nature of the commission's action
 20-7    requires further proceedings, those proceedings shall be conducted
 20-8    as appropriate under the Administrative Procedure and Texas
 20-9    Register Act, as amended (Article 6252-13a, Vernon's Texas Civil
20-10    Statutes).]
20-11          [(f)]  Nothing in this section or in rules or orders made by
20-12    the commission shall be construed to relieve an owner or operator
20-13    of a dam or reservoir of the legal duties, obligations, or
20-14    liabilities incident to ownership or operation.
20-15          SECTION 22.  Chapter 7, Water Code, is amended by adding
20-16    Subchapter I, and Sections 13.412, 13.4131, and 13.4132, Water
20-17    Code, are transferred to Subchapter I, Chapter 7, Water Code,
20-18    redesignated as Sections 7.402, 7.403, and 7.404, and amended to
20-19    read as follows:
20-20       SUBCHAPTER I.  RECEIVERSHIP; SUPERVISION OF CERTAIN UTILITIES
20-21          Sec. 7.401.  DEFINITIONS.  In this subchapter, "affiliated
20-22    interest" and "affiliate" have the meanings assigned by Section
20-23    13.002.
20-24          Sec. 7.402 [13.412].  Receivership.  (a)  At the request of
20-25    the commission, the attorney general shall bring suit for the
20-26    appointment of a receiver to collect the assets and carry on the
 21-1    business of a water or sewer utility that:
 21-2                (1)  has abandoned operation of its facilities;
 21-3                (2)  informs the commission that the owner is
 21-4    abandoning the system;
 21-5                (3)  violates a final order of the commission; or
 21-6                (4)  allows any property owned or controlled by it to
 21-7    be used in violation of a final order of the commission.
 21-8          (b)  The court shall appoint a receiver if an appointment is
 21-9    necessary:
21-10                (1)  to guarantee the collection of assessments, fees,
21-11    penalties, or interest;
21-12                (2)  to guarantee continuous and adequate service to
21-13    the customers of the utility; or
21-14                (3)  to prevent continued or repeated violation of the
21-15    final order.
21-16          (c)  The receiver shall execute a bond to assure the proper
21-17    performance of the receiver's duties in an amount to be set by the
21-18    court.
21-19          (d)  After appointment and execution of bond, the receiver
21-20    shall take possession of the assets of the utility specified by the
21-21    court.  Until discharged by the court, the receiver shall perform
21-22    the duties that the court directs to preserve the assets and carry
21-23    on the business of the utility and shall strictly observe the final
21-24    order involved.
21-25          (e)  On a showing of good cause by the utility, the court may
21-26    dissolve the receivership and order the assets and control of the
 22-1    business returned to the utility.
 22-2          (f)  For purposes of this section and Section 7.404
 22-3    [13.4132], abandonment may include but is not limited to:
 22-4                (1)  failure to pay a bill or obligation owed to a
 22-5    retail public utility or to an electric or gas utility with the
 22-6    result that the utility service provider has issued a notice of
 22-7    discontinuance of necessary services;
 22-8                (2)  failure to provide appropriate water or wastewater
 22-9    treatment so that a potential health hazard results;
22-10                (3)  failure to adequately maintain facilities,
22-11    resulting in potential health hazards, extended outages, or
22-12    repeated service interruptions;
22-13                (4)  failure to provide customers adequate notice of a
22-14    health hazard or potential health hazard;
22-15                (5)  failure to secure an alternative available water
22-16    supply during an outage;
22-17                (6)  displaying a pattern of hostility toward or
22-18    repeatedly failing to respond to the commission or the utility's
22-19    customers; and
22-20                (7)  failure to provide the commission with adequate
22-21    information on how to contact the utility for normal business and
22-22    emergency purposes.
22-23          (g)  Notwithstanding Section 64.021, Civil Practice and
22-24    Remedies Code, a receiver appointed under this section may seek
22-25    commission approval to acquire the water or sewer utility's
22-26    facilities and transfer the utility's certificate of convenience
 23-1    and necessity.  The receiver must apply in accordance with
 23-2    Subchapter H, Chapter 13.
 23-3          Sec. 7.403 [13.4131].  Supervision of Certain Utilities.
 23-4    (a)  The commission, after providing to the utility notice and an
 23-5    opportunity for a hearing, may place a utility under supervision
 23-6    for gross or continuing mismanagement, gross or continuing
 23-7    noncompliance with Chapter 13 [this chapter] or commission rules,
 23-8    or noncompliance with commission orders.
 23-9          (b)  While supervising a utility, the commission may require
23-10    the utility to:
23-11                (1)  meet [abide by] conditions and requirements
23-12    prescribed by the commission, including:
23-13                      (A) [(1)]  management requirements;
23-14                      (B) [(2)]  additional reporting requirements;
23-15                      (C) [(3)]  restrictions on hiring, salary or
23-16    benefit increases, capital investment, borrowing, stock issuance or
23-17    dividend declarations, and liquidation of assets; and
23-18                      (D) [(4)]  a requirement that the utility place
23-19    the utility's funds into an account in a financial institution
23-20    approved by the commission and use of those funds shall be
23-21    restricted to reasonable and necessary utility expenses; and[.]
23-22                (2) [(c)  While supervising a utility, the commission
23-23    may require that the utility] obtain commission approval before
23-24    taking an [any] action [that may be] restricted under Subdivision
23-25    (1) [Subsection (b)] of this section.
23-26          (c)  An [Any] action or transaction for which commission
 24-1    approval is required by this section that [which] occurs without
 24-2    commission approval may be voided by the commission.
 24-3          Sec. 7.404 [13.4132].  Operation of Utility That Discontinues
 24-4    Operation or is Referred for Appointment of Receiver.  (a)  The
 24-5    commission, after providing to the utility notice and an
 24-6    opportunity to be heard by the commissioners at a commission
 24-7    meeting, may authorize a willing person to temporarily manage and
 24-8    operate a utility if the utility:
 24-9                (1)  has discontinued or abandoned operations or the
24-10    provision of services; or
24-11                (2)  has been or is being referred to the attorney
24-12    general for the appointment of a receiver under Section 7.402
24-13    [13.412].
24-14          (b)  The commission may appoint a person under this section
24-15    by emergency order under Section 5.507 and may authorize an
24-16    emergency rate increase by emergency order under Section 5.508[,
24-17    and notice of the action is adequate if the notice is mailed or
24-18    hand-delivered to the last known address of the utility's
24-19    headquarters].
24-20          (c)  A person appointed under this section has the powers and
24-21    duties necessary to ensure the continued operation of the utility
24-22    and the provision of continuous and adequate services to customers,
24-23    including the power and duty to:
24-24                (1)  read meters;
24-25                (2)  bill for utility services;
24-26                (3)  collect revenues;
 25-1                (4)  disburse funds;
 25-2                (5)  access all system components; and
 25-3                (6)  request rate increases.
 25-4          (d)  This section does not affect the authority of the
 25-5    commission to pursue an enforcement claim against a utility or an
 25-6    affiliated interest.
 25-7          SECTION 23.  Section 13.414, Water Code, is amended to read
 25-8    as follows:
 25-9          Sec. 13.414.  VIOLATION BY [PENALTY AGAINST] RETAIL PUBLIC
25-10    UTILITY OR AFFILIATED INTEREST.  A [(a)  Any] retail public utility
25-11    or affiliated interest may not violate [that violates] this
25-12    chapter, fail [fails] to perform a duty imposed on it, or fail,
25-13    neglect, [fails, neglects,] or refuse [refuses] to obey an order,
25-14    rule, direction, or requirement of the commission or decree or
25-15    judgment of a court [is subject to a civil penalty of not less than
25-16    $100 nor more than $5,000 for each violation].
25-17          [(b)  A retail public utility or affiliated interest commits
25-18    a separate violation each day it continues to violate Subsection
25-19    (a) of this section.]
25-20          [(c)  The attorney general shall institute suit on his own
25-21    initiative or at the request of, in the name of, and on behalf of
25-22    the commission in a court of competent jurisdiction to recover the
25-23    penalty under this section.]
25-24          SECTION 24.  Subsections (b), (c), and (d), Section 35.008,
25-25    Water Code, are amended to read as follows:
25-26          (b)  The commission shall call a public comment [an
 26-1    evidentiary] hearing to consider:
 26-2                (1)  the designation of a priority groundwater
 26-3    management area;
 26-4                (2)  whether a district should be created over all or
 26-5    part of a priority groundwater management area; or
 26-6                (3)  whether all or part of the land in the priority
 26-7    groundwater management area should be added to an existing
 26-8    district.
 26-9          (c)  Public comment [Evidentiary] hearings shall be held at a
26-10    location in one of the counties in which the priority groundwater
26-11    management area is located, or proposed to be located, or in the
26-12    nearest convenient location if adequate facilities are not
26-13    available in those counties.
26-14          (d)  At the public comment hearing, the commission shall hear
26-15    testimony and receive evidence from affected persons.  The
26-16    commission shall consider the executive director's report and
26-17    supporting information and the testimony and evidence received at
26-18    the public comment hearing.  If the commission considers further
26-19    information necessary, the commission may request such information
26-20    from any source.
26-21          SECTION 25.  Section 35.009, Water Code, is amended to read
26-22    as follows:
26-23          Sec. 35.009.  NOTICE AND PUBLIC COMMENT HEARING.  (a)  The
26-24    commission shall have notice of the public comment hearing
26-25    published in at least one newspaper with general circulation in the
26-26    county or counties in which the area proposed for designation as a
 27-1    priority groundwater management area or the area within a priority
 27-2    groundwater management area being considered for district creation
 27-3    or for addition to an existing district is located.  Notice must be
 27-4    published not later than the 30th day before the date set for the
 27-5    commission to consider the designation of the priority groundwater
 27-6    management area, the creation of a district in a priority
 27-7    groundwater management area, or the addition of land in a priority
 27-8    groundwater management area to an existing district.
 27-9          (b)  The notice must include:
27-10                (1)  if applicable, a statement of the general purpose
27-11    and effect of designating the proposed priority groundwater
27-12    management area;
27-13                (2)  if applicable, a statement of the general purpose
27-14    and effect of creating a district in the priority groundwater
27-15    management area;
27-16                (3)  if applicable, a statement of the general purpose
27-17    and effect of adding all or part of the land in the priority
27-18    groundwater management area to an existing district;
27-19                (4)  a map generally outlining the boundaries of the
27-20    area being considered for priority groundwater management area
27-21    designation or the priority groundwater management area being
27-22    considered for district creation or for addition to an existing
27-23    district, or notice of the location at which a copy of the map may
27-24    be examined or obtained;
27-25                (5)  a statement that the executive director's report
27-26    concerning the priority groundwater management area or proposed
 28-1    area is available at the commission's main office in Austin, Texas,
 28-2    and at regional offices of the commission for regions which include
 28-3    territory within the priority groundwater management area or
 28-4    proposed priority groundwater management area and that the report
 28-5    is available for inspection during regular business hours;
 28-6                (6)  a description or the name of the locations in the
 28-7    affected area at which the commission has provided copies of the
 28-8    executive director's report to be made available for public
 28-9    inspection;
28-10                (7)  the name and address of each public library, each
28-11    county clerk's office, and each district to which the commission
28-12    has provided copies of the executive director's report; and
28-13                (8)  the date, time, and place of the public comment
28-14    hearing.
28-15          (c)  The commission shall also give written notice of the
28-16    date, time, place, and purpose of the public comment hearing to the
28-17    governing body of each county, regional water planning group,
28-18    adjacent groundwater district, municipality, river authority, water
28-19    district, or other entity which supplies public drinking water,
28-20    including each holder of a certificate of convenience and necessity
28-21    issued by the commission, and of each irrigation district, located
28-22    either in whole or in part in the priority groundwater management
28-23    area or proposed priority groundwater management area.  The notice
28-24    must be given before the 30th day preceding the date set for the
28-25    public comment hearing.
28-26          SECTION 26.  Subsection (a), Section 35.012, Water Code, is
 29-1    amended to read as follows:
 29-2          (a)  At the conclusion of its public comment hearing and
 29-3    considerations, the commission shall issue an order stating its
 29-4    findings and conclusions.
 29-5          SECTION 27.  Chapter 35, Water Code, is amended by adding
 29-6    Section 35.010 to read as follows:
 29-7          Sec. 35.010.  CREATION OF DISTRICTS ON PETITION AFTER
 29-8    DESIGNATION OF PRIORITY GROUNDWATER MANAGEMENT AREA.  The
 29-9    commission may not consider the creation of a groundwater
29-10    conservation district in a designated priority groundwater
29-11    management area before the conclusion of the next regular session
29-12    of the Texas Legislature following the designation unless the local
29-13    landowners have initiated a petition process under Chapter 36 for
29-14    the creation of a groundwater conservation district with a priority
29-15    groundwater management area.
29-16          SECTION 28.  Section 35.012, Water Code, is amended by adding
29-17    new Subsections (c) and (d), relettering existing Subsections (c),
29-18    (d), (e), and (f) as Subsections (e), (f), (g), and (h), and
29-19    amending existing Subsection (d) to read as follows:
29-20          (c)  Not later than the 10th day after the date on which the
29-21    commission order designating a priority groundwater management area
29-22    is issued, the commission shall send written notice of the
29-23    commission's actions to each landowner in the designated priority
29-24    groundwater management area at the landowner's most recent known
29-25    address as shown in the tax rolls of the county in which the land
29-26    is located.  The notice must include the commission's findings and
 30-1    conclusions from the data and information considered in designating
 30-2    the priority groundwater management area and the commission's
 30-3    recommendation regarding the need for a groundwater conservation
 30-4    district in the priority groundwater management area.
 30-5          (d)  As soon as possible after a commission order designating
 30-6    a priority groundwater management area, the Texas Agricultural
 30-7    Extension Service shall begin an educational program within the
 30-8    area with the assistance and cooperation of the Texas Water
 30-9    Development Board, the commission, the Department of Agriculture,
30-10    other state agencies, and existing districts to inform the
30-11    residents of the status of the area's water resources and
30-12    management options including possible formation of a district.
30-13          (e)  Following the issuance of a commission order under
30-14    Subsection (b), the landowners in the priority groundwater
30-15    management area may:
30-16                (1)  create one or more districts under Subchapter B,
30-17    Chapter 36;
30-18                (2)  have the area annexed to a district that adjoins
30-19    the area; or
30-20                (3)  create one or more districts through the
30-21    legislative process.
30-22          (f) [(d)]  The commission shall identify the areas subject to
30-23    the order of the commission issued under Subsection (b) that have
30-24    not been incorporated into a district and shall delineate proposed
30-25    boundaries of a district to include those areas.  [If the
30-26    commission proposes the creation of one or more districts, the
 31-1    Texas Agricultural Extension Service shall begin an educational
 31-2    program within such areas with the assistance and cooperation of
 31-3    the Texas Water Development Board, the commission, other state
 31-4    agencies, and existing districts to inform the residents of the
 31-5    status of the area's water resources and management options
 31-6    including possible formation of a district, before beginning the
 31-7    procedures for creation of a district provided in Subchapter B,
 31-8    Chapter 36.]
 31-9          (g) [(e)]  If the commission fails to find that the district
31-10    would be a benefit to the land and other property within the
31-11    priority groundwater management area, that there is a public need
31-12    for the district, or that creation of the district will further the
31-13    public welfare, the commission shall issue an order stating that a
31-14    district should not be created within the boundaries of the
31-15    priority groundwater management area.
31-16          (h) [(f)]  An order of the commission issued under this
31-17    section may not be appealed.
31-18          SECTION 29.  Section 36.014, Water Code, is amended to read
31-19    as follows:
31-20          Sec. 36.014.  NOTICE AND HEARING ON DISTRICT CREATION.
31-21    [(a)]  If a petition is filed under Section 36.013 or the
31-22    commission proposes that a district be created under Section
31-23    35.012(b), the commission shall give notice of the [an] application
31-24    or proposal as required by Section 49.011(a) and may conduct a
31-25    hearing on the application or proposal if the commission determines
31-26    that a hearing is necessary under Section 49.011.
 32-1          [(b)  If the petition contains a request to create a
 32-2    management area in all or part of the proposed district, the notice
 32-3    must also be given in accordance with the requirements in Section
 32-4    35.006 for the designation of management areas.]
 32-5          SECTION 30.  Section 36.015, Water Code, is amended to read
 32-6    as follows:
 32-7          Sec. 36.015.  FINDINGS.  (a)  If the commission finds that a
 32-8    district requested by petition or proposed by the commission is
 32-9    feasible and practicable, [that it] would be a benefit to the land
32-10    in the district, and [that it] would be a public benefit or
32-11    utility, the commission shall issue an order containing these
32-12    findings granting the petition or adopting the proposal, as
32-13    appropriate.
32-14          (b)  If the commission finds that a district is not feasible
32-15    and practicable, that it would not be a benefit to the land in the
32-16    district, that it would not be a public benefit or utility, or that
32-17    it is not needed, the commission by order shall deny the petition
32-18    or reject the proposal, as appropriate.
32-19          (c)  The commission may adjust the boundaries of the proposed
32-20    district to exclude any land that would not be benefited by
32-21    inclusion in the district and is not necessary to the district for
32-22    proper regulation of the groundwater reservoir.
32-23          (d)  If the commission grants the petition or adopts the
32-24    proposal to create the district, it shall direct in its order
32-25    creating the district that an election be called by the temporary
32-26    directors to confirm the creation of the district and to elect
 33-1    permanent directors.
 33-2          (e)  [The refusal to grant a petition to create a district
 33-3    does not invalidate or affect the designation of any management
 33-4    area requested in the same petition.]
 33-5          [(f)]  The commission shall act on the petition or its
 33-6    proposal within a reasonable amount of time.
 33-7          SECTION 31.  Subchapter D, Chapter 36, Water Code, is amended
 33-8    by adding Section 36.1074 to read as follows:
 33-9          Sec. 36.1074.  EXTENSION OF DISTRICT AUTHORITY TO ADDITIONAL
33-10    AQUIFERS WITHIN DISTRICT'S GEOGRAPHIC BOUNDARIES.  (a)  The
33-11    commission by rule shall establish a procedure by which a district
33-12    created by special law may petition to extend the district's
33-13    authority to include management of any aquifer within the
33-14    geographic boundaries of the district the management of which is
33-15    not provided for by the special law creating any district.
33-16          (b)  Rules adopted by the commission under this section shall
33-17    establish grounds for a petition described by Subsection (a),
33-18    including:
33-19                (1)  a change in pumping conditions;
33-20                (2)  a change in water quality conditions;
33-21                (3)  a finding that another aquifer is affecting water
33-22    levels in the primary managed aquifer; and
33-23                (4)  other grounds the commission may specify.
33-24          (c)  A petition under this section may be granted only by
33-25    order of the commission.
33-26          SECTION 32.  Section 36.0151, Water Code, is amended to read
 34-1    as follows:
 34-2          Sec. 36.0151.  NOTICE OF CREATION BY COMMISSION OF DISTRICT
 34-3    FOR PRIORITY GROUNDWATER MANAGEMENT AREA.  [(a)  If the commission
 34-4    proposes that a district be created under Section 35.012(d), it
 34-5    shall in its order creating the district provide that temporary
 34-6    directors be appointed under Section 36.016 and that an election be
 34-7    called by the temporary directors to confirm the creation of the
 34-8    district and to elect permanent directors.]
 34-9          [(b)]  The commission shall notify the county commissioners
34-10    court of each county with territory in the district of the
34-11    district's creation as soon as practicable after issuing the order
34-12    under Section 36.015(a) creating a [the] district proposed by the
34-13    commission under Section 35.012(b).
34-14          SECTION 33.  Section 36.108, Water Code, is amended to read
34-15    as follows:
34-16          Sec. 36.108.  Joint Planning in Management Area OR PRIORITY
34-17    GROUNDWATER MANAGEMENT AREA.  (a)  If two or more districts are
34-18    located within the boundaries of the same management area or
34-19    priority groundwater management area, each district shall prepare a
34-20    comprehensive management plan as required by Section 36.1071
34-21    covering that district's respective territory.  On completion of
34-22    the plan, each district shall forward a copy of the new revised
34-23    management plan to the other districts in the management area or
34-24    priority groundwater management area.
34-25          (b)  The board of directors of each district in the
34-26    management area or priority groundwater management area may, by
 35-1    resolution, call a joint meeting with the boards of directors of
 35-2    the other districts in the management area or priority groundwater
 35-3    management area to review the management plans and accomplishments
 35-4    for the management area or priority groundwater management area.
 35-5    The boards shall meet to consider the plans individually and shall
 35-6    compare them to other management plans then in force in the
 35-7    management area.  In reviewing the management plans, the boards
 35-8    shall consider:
 35-9                (1)  the goals of each management plan and its impact
35-10    on planning throughout the management area or priority groundwater
35-11    management area;
35-12                (2)  the effectiveness of the measures established by
35-13    each management plan for conserving and protecting groundwater and
35-14    preventing waste, and the effectiveness of these measures in the
35-15    management area or priority groundwater management area generally;
35-16    and
35-17                (3)  any other matters that the boards consider
35-18    relevant to the protection and conservation of groundwater and the
35-19    prevention of waste in the management area or priority groundwater
35-20    management area.
35-21          (c)  A joint meeting of the boards of directors must be held
35-22    in accordance with the Open Meetings Act, Chapter 551, Government
35-23    Code.  Notice of the meeting shall be given in accordance with the
35-24    requirements for notice of district board of directors meetings
35-25    under that Act.  In addition, notice of the meeting shall be
35-26    published not later than the 30th day before the date of the
 36-1    scheduled meeting in a newspaper with general circulation in each
 36-2    county in the management area or priority groundwater management
 36-3    area.
 36-4          (d)  A district in the management area or priority
 36-5    groundwater management area may file a petition with the commission
 36-6    requesting an inquiry if the petitioner district believes that:
 36-7                (1)  another district in the management area or
 36-8    priority groundwater management area has failed to adopt rules;
 36-9                (2)  the groundwater in the management area or priority
36-10    groundwater management area  is not adequately protected by the
36-11    rules adopted by another district; or
36-12                (3)  the groundwater in the management area or priority
36-13    groundwater management area is not adequately protected due to the
36-14    failure of another district to enforce substantial compliance with
36-15    its rules.
36-16          (e)  Not later than the 90th day after the date the petition
36-17    is filed, the commission shall review the petition and either:
36-18                (1)  dismiss it if it finds that the evidence is not
36-19    adequate to show that any of the conditions alleged in the petition
36-20    exist; or
36-21                (2)  select a review panel as provided in Subsection
36-22    (f).
36-23          (f)  The commission may appoint a review panel consisting of
36-24    a chairman and four other members.  A director or general manager
36-25    of a district located outside the management area or priority
36-26    groundwater management area that is the subject of the petition may
 37-1    be appointed to the review panel.  The commission may not appoint
 37-2    more than two members of the review panel from any one district.
 37-3    The commission also shall appoint a disinterested person to serve
 37-4    as a nonvoting recording secretary for the review panel.  The
 37-5    recording secretary may be an employee of the commission.  The
 37-6    recording secretary shall record and document the proceedings of
 37-7    the panel.
 37-8          (g)  Not later than the 120th day after appointment, the
 37-9    review panel shall review the petition and any evidence relevant to
37-10    the petition and, in a public meeting, prepare a report to the
37-11    commission.  The commission may direct the review panel to conduct
37-12    public hearings at a location in the management area or priority
37-13    groundwater management area to take evidence on the petition.  The
37-14    review panel may attempt to negotiate a settlement or resolve the
37-15    dispute by any lawful means.
37-16          (h)  In its report, the review panel shall include:
37-17                (1)  a summary of all evidence taken in any hearing on
37-18    the petition;
37-19                (2)  a list of findings and recommended actions
37-20    appropriate for the commission to take and the reasons it finds
37-21    those actions appropriate; and
37-22                (3)  any other information the panel considers
37-23    appropriate.
37-24          SECTION 34.  Section 341.047, Health and Safety Code, is
37-25    transferred to Subchapter E, Chapter 7, Water Code, redesignated as
37-26    Section 7.1605, Water Code, and amended to read as follows:
 38-1          Sec. 7.1605 [341.047].  VIOLATIONS RELATING TO PUBLIC
 38-2    DRINKING WATER [CRIMINAL PENALTY].  (a)  A person commits an
 38-3    offense if the person:
 38-4                (1)  violates a provision of Section 341.031, Health
 38-5    and Safety Code;
 38-6                (2)  violates a provision of Section 341.032(a) or (b),
 38-7    Health and Safety Code;
 38-8                (3)  violates a provision of Section 341.033(a)-(f),
 38-9    Health and Safety Code;
38-10                (4)  constructs a drinking water supply system without
38-11    submitting completed plans and specifications as required by
38-12    Section 341.035(c), Health and Safety Code;
38-13                (5)  begins construction of a drinking water supply
38-14    system without the commission's approval as required by Section
38-15    341.035(a), Health and Safety Code;
38-16                (6)  violates a provision of Section 341.0351 or
38-17    341.0352, Health and Safety Code;
38-18                (7)  fails to remove a sign as required by Section
38-19    341.0354, Health and Safety Code; or
38-20                (8)  violates a provision of Section 341.036, Health
38-21    and Safety Code.
38-22          (b)  An offense under Subsection (a) is a Class C
38-23    misdemeanor.
38-24          (c)  If it is shown on a trial of the defendant that the
38-25    defendant has been convicted of an offense under Subsection (a)
38-26    within a year before the date on which the offense being tried
 39-1    occurred, the subsequent offense under Subsection (a) is a Class B
 39-2    misdemeanor.
 39-3          (d)  Each day of a continuing violation is a separate
 39-4    offense.
 39-5          SECTION 35.  Section 341.048, Health and Safety Code, is
 39-6    amended to read as follows:
 39-7          Sec. 341.048.  VIOLATION [CIVIL ENFORCEMENT].  [(a)]  A
 39-8    person may not cause, suffer, allow, or permit a violation of this
 39-9    subchapter or a rule or order adopted under this subchapter.
39-10          [(b)  A person who causes, suffers, allows, or permits a
39-11    violation under this subchapter shall be assessed a civil penalty
39-12    of not less than $50 nor more than $1,000 for each violation.  Each
39-13    day of a continuing violation is a separate violation.]
39-14          [(c)  If it appears that a person has violated, is violating,
39-15    or threatens to violate a provision under this subchapter, the
39-16    commission, a county, or a municipality may institute a civil suit
39-17    in a district court for:]
39-18                [(1)  injunctive relief to restrain the person from
39-19    continuing the violation or threat of violation;]
39-20                [(2)  the assessment and recovery of a civil penalty;
39-21    or]
39-22                [(3)  both injunctive relief and a civil penalty.]
39-23          [(d)  The commission is a necessary and indispensable party
39-24    in a suit brought by a county or municipality under this section.]
39-25          [(e)  On the commission's request, the attorney general shall
39-26    institute a suit in the name of the state for injunctive relief, to
 40-1    recover a civil penalty, or for both injunctive relief and civil
 40-2    penalty.]
 40-3          [(f)  The suit may be brought in:]
 40-4                [(1)  Travis County;]
 40-5                [(2)  the county in which the defendant resides; or]
 40-6                [(3)  the county in which the violation or threat of
 40-7    violation occurs.]
 40-8          [(g)  In a suit under this section to enjoin a violation or
 40-9    threat of violation of this subchapter, the court shall grant the
40-10    state, county, or municipality, without bond or other undertaking,
40-11    any injunction that the facts may warrant including temporary
40-12    restraining orders, temporary injunctions after notice and hearing,
40-13    and permanent injunctions.]
40-14          [(h)  Civil penalties recovered in a suit brought under this
40-15    section by a county or municipality shall be equally divided
40-16    between:]
40-17                [(1)  the state; and]
40-18                [(2)  the county or municipality that first brought the
40-19    suit.]
40-20          SECTION 36.  Section 5.507, Water Code, is amended to read as
40-21    follows:
40-22          Sec. 5.507.  Emergency Order for Operation of Utility That
40-23    Discontinues Operation or is Referred for Appointment of Receiver.
40-24    The commission may issue an emergency order appointing a willing
40-25    person to temporarily manage and operate a utility under Section
40-26    7.404 [13.4132].  Notice of the action is adequate if the notice is
 41-1    mailed or hand delivered to the last known address of the utility's
 41-2    headquarters.
 41-3          SECTION 37.  Subsection (a), Section 5.508, Water Code, is
 41-4    amended to read as follows:
 41-5          (a)  Notwithstanding the requirements of Section 13.187, the
 41-6    commission may authorize an emergency rate increase for a utility
 41-7    for which a person has been appointed under Section 5.507 or 7.404
 41-8    [13.412] or for which a receiver has been appointed under Section
 41-9    7.402 [13.4132] if the increase is necessary to ensure the
41-10    provision of continuous and adequate services to the utility's
41-11    customers.
41-12          SECTION 38.  Subsection (c), Section 341.0485, Health and
41-13    Safety Code, is amended to read as follows:
41-14          (c)  The comptroller shall manage the account for the benefit
41-15    of the commission and shall invest the money and deposit interest
41-16    and other investment proceeds in the account.  The comptroller
41-17    shall release money from the account in the manner provided by the
41-18    commission.  Money in the account may be used only for:
41-19                (1)  capital improvements to the water or sewer system
41-20    of a utility that has paid fines or penalties under this chapter or
41-21    under Chapter 13, Water Code, that have been deposited in the
41-22    account; or
41-23                (2)  capital improvements and operating and maintenance
41-24    expenses for a utility placed in receivership or under a temporary
41-25    manager under Section 7.404 [13.4132], Water Code.
41-26          SECTION 39.  (a)  The following sections of the Water Code
 42-1    are repealed:
 42-2                (1)  Section 11.082;
 42-3                (2)  Sections 11.0841 and 11.0842;
 42-4                (3)  Section 11.148;
 42-5                (4)  Section 13.411;
 42-6                (5)  Section 13.4133;
 42-7                (6)  Sections 13.4151 and 13.416;
 42-8                (7)  Sections 13.417 and 13.418; and
 42-9                (8)  Sections 35.004, 35.005, and 35.006.
42-10          (b)  Sections 341.049 and 341.050, Health and Safety Code,
42-11    are repealed.
42-12          SECTION 40.  This Act takes effect September 1, 1999.
42-13          SECTION 41.  (a)  The changes in law made by this Act apply
42-14    only to an offense committed or a violation or threat of violation
42-15    that occurs on or after September 1, 1999.  For purposes of this
42-16    section an offense is committed and a violation or threat of
42-17    violation occurs before September 1, 1999, if any element of the
42-18    offense, violation, or threat of violation occurs before that date.
42-19          (b)  An offense committed or a violation or threat of
42-20    violation that occurred before September 1, 1999, is covered by the
42-21    law in effect when the offense was committed or the violation or
42-22    threat of violation occurred, and the former law is continued in
42-23    effect for that purpose.
42-24          SECTION 42.  The importance of this legislation and the
42-25    crowded condition of the calendars in both houses create an
42-26    emergency and an imperative public necessity that the
 43-1    constitutional rule requiring bills to be read on three several
 43-2    days in each house be suspended, and this rule is hereby suspended.