76R15770 E                          
         By Brown                                              S.B. No. 1311
         Substitute the following for S.B. No. 1311:
         By Lewis of Orange                                C.S.S.B. No. 1311
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the development and management of water resources and
 1-3     the powers of the Texas Natural Resource Conservation Commission.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 5.102(a), Water Code, is amended to read
 1-6     as follows:
 1-7           (a)  The commission has the powers to perform any acts
 1-8     whether specifically authorized by this code or other law or
 1-9     necessarily implied by this code or other law, in order [necessary
1-10     and convenient] to [the] exercise [of] its jurisdiction and powers
1-11     as provided by this code and other laws.
1-12           SECTION 2.  Section 5.103, Water Code, is amended by adding
1-13     Subsection (d) to read as follows:
1-14           (d)  In adopting a rule, the commission shall cite the
1-15     statute granting the specific regulatory authority to be exercised
1-16     under the proposed rule.  Citation to this section or Section 5.013
1-17     does not fulfill the commission's obligation under this section.
1-18           SECTION 3.  Section 5.504(a), Water Code, is amended to read
1-19     as follows:
1-20           (a)  If the commission, the executive director, or the
1-21     executive director's representative issues an emergency order under
1-22     this subchapter without a hearing, the order shall set a time and
1-23     place for a hearing to affirm, modify, or set aside the emergency
 2-1     order to be held before the commission or its designee as soon as
 2-2     practicable after the order is issued.  If the emergency order is
 2-3     issued under Section 5.517 or 5.518, the order shall set a time for
 2-4     the hearing not later than the 20th day after the date the
 2-5     emergency order is issued.
 2-6           SECTION 4.  Section 5.507, Water Code, is amended to read as
 2-7     follows:
 2-8           Sec. 5.507.  EMERGENCY ORDER FOR OPERATION OF UTILITY THAT
 2-9     DISCONTINUES OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER.
2-10     The commission may issue an emergency order appointing a willing
2-11     person to temporarily manage and operate a utility under Section
2-12     7.404 [13.4132].  Notice of the action is adequate if the notice is
2-13     mailed or hand delivered to the last known address of the utility's
2-14     headquarters.
2-15           SECTION 5.  Section 5.508(a), Water Code, is amended to read
2-16     as follows:
2-17           (a)  Notwithstanding the requirements of Section 13.187, the
2-18     commission may authorize an emergency rate increase for a utility
2-19     for which a person has been appointed under Section 5.507 or 7.404
2-20     [13.412] or for which a receiver has been appointed under Section
2-21     7.402 [13.4132] if the increase is necessary to ensure the
2-22     provision of continuous and adequate services to the utility's
2-23     customers.
2-24           SECTION 6.  Subchapter L, Chapter 5, Water Code, is amended
2-25     by adding Sections 5.517, 5.518, 5.519, and 5.520 to read as
2-26     follows:
2-27           Sec. 5.517.  EMERGENCY PERMIT TO DIVERT AND USE WATER;
 3-1     AMENDMENT TO WATER RIGHT.  (a)  Except as provided by Section 5.506
 3-2     and after notification to the governor, the commission by emergency
 3-3     order may issue a permit to divert and use water or amend an
 3-4     existing permit, certified filing, or certificate of adjudication
 3-5     for an initial period not to exceed 120 days if the commission
 3-6     finds that:
 3-7                 (1)  emergency conditions exist that present an
 3-8     imminent threat to the public health and safety and that override
 3-9     the necessity to comply with established statutory procedures; and
3-10                 (2)  there is no feasible practicable alternative to
3-11     the emergency authorization.  The emergency authorization may be
3-12     renewed once for a period not to exceed 60 days.
3-13           (b)  The executive director may issue an emergency order if
3-14     an imminent threat to the public health and safety exists that
3-15     requires emergency action before the commission can take action
3-16     under Subsection (a) and there is no feasible alternative.  If the
3-17     executive director issues an emergency order under this subsection,
3-18     the commission shall hold a hearing as provided for in Section
3-19     5.504 as soon as practicable but not later than 20 days after
3-20     issuance of the order to affirm, modify, or set aside the order.
3-21           (c)  The notice requirements of Section 11.132 relating to
3-22     the time for notice, newspaper notice, and method of giving a
3-23     person notice do not apply to a hearing held on an application for
3-24     an emergency order under this section.  The commission shall give
3-25     the general notice of the hearing that the commission considers
3-26     practicable under the circumstances.
3-27           (d)  The commission may adopt rules and impose fees necessary
 4-1     to carry out the provisions of this section.
 4-2           (e)  An emergency order under this section does not vest in
 4-3     the grantee any right to the diversion, impoundment, or use of
 4-4     water and expires by its terms.
 4-5           Sec. 5.518.  EMERGENCY ORDER FOR TEMPORARY TRANSFER OF USE OF
 4-6     WATER RIGHT.  (a)  The commission by emergency order may grant the
 4-7     temporary transfer and use of all or part of a surface water right
 4-8     for a use other than domestic or municipal to a retail or wholesale
 4-9     water supplier for public health and safety purposes.
4-10           (b)  The commission may direct the applicant to timely pay
4-11     the amounts for which the applicant may be potentially liable under
4-12     this section and to fully indemnify and hold harmless the state,
4-13     the executive director, and the commission from any and all
4-14     liability for the order sought. The commission may order bond or
4-15     other surety in a form acceptable to the commission as a condition
4-16     for an emergency order under this section.  The commission may not
4-17     grant an emergency authorization under this section that would
4-18     cause a violation of a federal regulation.
4-19           (c)  In transferring the amount of water requested by the
4-20     applicant, the executive director or the commission shall allocate
4-21     the requested amount among two or more permits, certified filings,
4-22     or certificates of adjudication for a use other than domestic,
4-23     municipal, or electric generation.
4-24           (d)  A person granted an emergency order under this section
4-25     is liable to the owner from whom the use is transferred for the
4-26     fair market value of the water transferred and for any damages
4-27     proximately caused by the transfer of use.  If, within 60 days of
 5-1     the termination of the order, the parties do not agree on the
 5-2     amount due, or if full payment is not made, either party may file a
 5-3     complaint with the commission to determine the amount due.
 5-4           (e)  The commission by rule shall establish a dispute
 5-5     resolution procedure for a complaint filed under this section.
 5-6     After exhausting all administrative remedies under this section, an
 5-7     owner from whom the use is transferred may file suit to recover or
 5-8     determine the amount due in a district court in the county where
 5-9     the owner resides or has its headquarters.  The prevailing party in
5-10     a suit filed under this subsection is entitled to recover court
5-11     costs and reasonable attorney's fees.
5-12           Sec. 5.519.  EMERGENCY WORKS SAFETY ORDER.  The commission
5-13     may issue a mandatory or prohibitory emergency order directing the
5-14     owner of a dam, levee, or other water-storage or flood-control work
5-15     to repair, modify, maintain, dewater, or remove a work if the
5-16     commission finds that:
5-17                 (1)  the existing condition of the work is causing or
5-18     will cause extensive or severe property damage or economic loss to
5-19     others or is posing an immediate and serious threat to human life
5-20     or health; and
5-21                 (2)  other procedures available to the commission to
5-22     remedy or prevent the occurrence will result in unreasonable delay.
5-23           Sec. 5.520.  EMERGENCY ORDER FOR OPERATION OF UTILITY THAT
5-24     DISCONTINUES OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER.
5-25     The commission may issue an emergency order appointing a willing
5-26     person to temporarily manage and operate a utility under Section
5-27     7.404.  Notice of the action is adequate if the notice is mailed or
 6-1     hand delivered to the last known address of the utility's
 6-2     headquarters.
 6-3           SECTION 7.  Section 7.004, Water Code, is amended to read as
 6-4     follows:
 6-5           Sec. 7.004.  REMEDIES CUMULATIVE.  The remedies under this
 6-6     chapter are cumulative of all other remedies.  Nothing in this
 6-7     chapter affects the right of a private corporation, [or]
 6-8     individual, or political subdivision that has a justiciable
 6-9     interest to pursue any available common law remedy to enforce a
6-10     right, to abate a condition of pollution or other nuisance, to
6-11     recover damages to enforce a right, or to prevent or seek redress
6-12     or compensation for the violation of a right or otherwise redress
6-13     an injury.
6-14           SECTION 8.  Subchapter B, Chapter 7, Water Code, is amended
6-15     by adding Section 7.034 to read as  follows:
6-16           Sec. 7.034.  ATTORNEY'S FEES; COSTS.  A district court may
6-17     award the costs of litigation, including reasonable attorney's fees
6-18     and expert costs, to any political subdivision of the state,
6-19     private corporation, or individual that is a water right holder and
6-20     that prevails in a suit for injunctive relief to redress an
6-21     unauthorized diversion, impoundment, or use of surface water in
6-22     violation of Chapter 11 or a rule adopted under Chapter 11.
6-23           SECTION 9.  Section 7.051(b), Water Code, is amended to read
6-24     as follows:
6-25           (b)  Except as provided by this subsection, this [This]
6-26     subchapter does not apply to violations of Chapter [11,] 12 or[,
6-27     13,] 16[, or 36 of this code, or Chapter 341, Health and Safety
 7-1     Code].  This subchapter does apply to Section 16.236.
 7-2           SECTION 10.  Section 7.052, Water Code, is amended to read as
 7-3     follows:
 7-4           Sec. 7.052.  MAXIMUM PENALTY.   (a)  The amount of the
 7-5     penalty for a violation of Chapter 18, 32, 33, or 34 of this code
 7-6     or Chapter 366, 371, or 372, Health and Safety Code, may not exceed
 7-7     $2,500 a day for each violation.
 7-8           (b)  The amount of the penalty for a violation of Chapter 11,
 7-9     a rule or order adopted under that chapter, or a permit, certified
7-10     filing, or certificate of adjudication issued under that chapter
7-11     may not exceed $5,000 a day for each violation.
7-12           (c)  The penalty for a violation of a rule or order adopted
7-13     under Section 16.236 may not exceed $1,000 a day for each
7-14     violation.
7-15           (d)  The amount of the penalty for a violation under Chapter
7-16     341, Health and Safety Code, may not be less than $50 or more than
7-17     $1,000 for each violation.
7-18           (e)  The amount of the penalty for all other violations
7-19     within the jurisdiction of the commission to enforce may not exceed
7-20     $10,000 a day  for each violation.
7-21           (f) [(c)]  Each day that a continuing violation occurs may be
7-22     considered a separate violation.  The commission may authorize an
7-23     installment  payment schedule for an administrative penalty
7-24     assessed under this subchapter, except for an administrative
7-25     penalty assessed under Section 7.057 or assessed after a hearing
7-26     under Section 7.058.
7-27           SECTION 11.  Section 7.054, Water Code, is amended to read as
 8-1     follows:
 8-2           Sec. 7.054.  REPORT OF VIOLATION.  (a)  If, after examination
 8-3     of a possible violation and the facts surrounding that possible
 8-4     violation, the executive director concludes that a violation has
 8-5     occurred, the executive director may issue a preliminary report in
 8-6     accordance with commission rules that includes recommendations
 8-7     regarding any penalty or corrective action.
 8-8           (b)  A report regarding a possible violation under Chapter 11
 8-9     must state the facts on which the conclusion was based and
8-10     recommend the amount of any penalty.  The executive director shall
8-11     base the recommended amount of the proposed penalty on the factors
8-12     provided by Section 7.053 and shall analyze each factor for the
8-13     benefit of the commission.
8-14           SECTION 12.  Section 7.069, Water Code, is amended to read as
8-15     follows:
8-16           Sec. 7.069.  DISPOSITION OF PENALTY.  (a)  Except as provided
8-17     by Subsection (b), a [A] penalty collected under this subchapter
8-18     shall be  deposited to the credit of the general revenue fund.
8-19           (b)  A penalty collected under this subchapter from a public
8-20     utility shall be paid to the commission and deposited in the water
8-21     utility improvement account as provided by Section 341.0485, Health
8-22     and Safety Code.
8-23           SECTION 13.  Subchapter C, Chapter 7, Water Code, is amended
8-24     by adding Section 7.076 to read as follows:
8-25           Sec. 7.076.  COMPROMISE, MODIFICATION, OR REMISSION OF
8-26     CERTAIN PENALTIES.  Notwithstanding any other provision to the
8-27     contrary, the commission may compromise, modify, or remit, with or
 9-1     without condition, any penalty imposed under this subchapter for a
 9-2     violation under Chapter 11.
 9-3           SECTION 14.  Section 7.102, Water Code, is amended to read as
 9-4     follows:
 9-5           Sec. 7.102.  MAXIMUM PENALTY.   (a)  A person who causes,
 9-6     suffers, allows, or permits a violation of a statute, rule, order,
 9-7     or permit relating to Chapter 11, 18, 32, 33, or 34 of this code or
 9-8     Chapter 366, 371, or 372, Health and Safety Code, shall be assessed
 9-9     for each violation a civil penalty not less than $50 nor greater
9-10     than $5,000 for each day of each violation as the court or jury
9-11     considers proper.
9-12           (b)  The amount of a penalty for a violation of a rule or
9-13     order issued by the commission under Section 12.052 may not exceed
9-14     $5,000.
9-15           (c)  A person who causes, suffers, allows, or permits a
9-16     violation of a statute, rule, order, or permit relating to Chapter
9-17     13 shall be assessed for each violation a civil penalty not less
9-18     than $100 nor greater than $5,000 for each day of each violation as
9-19     the court or jury considers proper.
9-20           (d)  A person who causes, suffers, allows, or permits a
9-21     violation of a statute, rule, order, or permit relating to any
9-22     other matter  within the commission's jurisdiction to enforce,
9-23     other than violations of Chapter [11,] 12 or[, 13,] 16[, or 36] of
9-24     this code, or Chapter 341, Health and Safety Code, shall be
9-25     assessed for each violation a civil penalty not less than $50 nor
9-26     greater than $25,000 for each day of each violation as the court or
9-27     jury considers proper.
 10-1          (e)  Each day of a continuing violation is a separate
 10-2    violation.
 10-3          SECTION 15.  Sections 7.105(a) and (c), Water Code, are
 10-4    amended to read as follows:
 10-5          (a)  On the request of the executive director or the
 10-6    commission, the attorney general shall institute a suit in the name
 10-7    of the state for injunctive relief under Section 7.032, to recover
 10-8    a civil penalty, or for both injunctive relief and a civil penalty.
 10-9    The attorney general may initiate a suit for recovery of a penalty
10-10    under this section for a violation under Section 13.414.
10-11          (c)  Except as provided by this subsection, the [The] suit
10-12    may be brought in Travis County, in the county in which the
10-13    defendant resides, or in the county in which the violation or
10-14    threat of violation occurs.  A suit to recover a penalty for a
10-15    violation of a rule or order issued by the commission under Section
10-16    12.052 may be brought in Travis County.
10-17          SECTION 16.  Subchapter D, Chapter 7, Water Code, is amended
10-18    by adding Section 7.1075 to read as follows:
10-19          Sec. 7.1075.  DISPOSITION OF PENALTY COLLECTED FROM PUBLIC
10-20    UTILITY.  A penalty collected under this subchapter from a public
10-21    utility shall be  paid to the commission and deposited in the water
10-22    utility improvement account as provided by Section 341.0485, Health
10-23    and Safety Code.
10-24          SECTION 17.  Subchapter D, Chapter 7, Water Code, is amended
10-25    by adding Section 7.112 to read as follows:
10-26          Sec. 7.112.  LIMITATION ON SUIT FOR VIOLATION OF SECTION
10-27    11.081.  An action to collect the penalty provided by Section 7.102
 11-1    for a violation of Section 11.081 must be brought within two years
 11-2    from the date of the alleged violation.
 11-3          SECTION 18.  Section 7.351, Water Code, is amended to read as
 11-4    follows:
 11-5          Sec. 7.351.  CIVIL SUITS.  If it appears that a violation or
 11-6    threat of violation of Chapter 16, 26, 28, or 34 of this code or
 11-7    Chapter 341, 361, 371, 372, or 382, Health and Safety Code, or a
 11-8    provision of Chapter 401, Health and Safety Code, under the
 11-9    commission's jurisdiction or a rule adopted or an order or a permit
11-10    issued under those chapters or provisions has occurred or is
11-11    occurring in the jurisdiction of a local government, the local
11-12    government or, in the case of a violation of Chapter 401, Health
11-13    and Safety Code, a person affected as defined in that chapter, may
11-14    institute a civil suit under Subchapter D in the same manner as the
11-15    commission in a district court by its own attorney for the
11-16    injunctive relief or civil penalty, or both, as authorized by this
11-17    chapter against the person who committed, is committing, or is
11-18    threatening to commit the violation.
11-19          SECTION 19.  Section  11.0843(a), Water Code, is amended to
11-20    read as follows:
11-21          (a)  Upon witnessing a violation of this chapter or a rule or
11-22    order or a water right issued under this chapter, a watermaster or
11-23    the watermaster's deputy, as defined by commission rule, may issue
11-24    the alleged violator a field citation alleging that a violation has
11-25    occurred and providing the alleged violator the option of either:
11-26                (1)  without admitting to or denying the alleged
11-27    violation, paying an administrative penalty in accordance with the
 12-1    predetermined penalty amount established under Subsection (b) [of
 12-2    this section] and taking remedial action as provided in the
 12-3    citation; or
 12-4                (2)  requesting a hearing on the alleged violation in
 12-5    accordance with Section 7.058 [11.0842 of this code].
 12-6          SECTION 20.  Section 11.085, Water Code, is amended by adding
 12-7    Subsection (w) to read as follows:
 12-8          (w)  The requirements of this section apply to the transfer
 12-9    of water from one river basin to another regardless of whether all
12-10    or any part of the water right, permit, certified filing, or
12-11    certificate of adjudication under which the water is authorized to
12-12    be used is also transferred.
12-13          SECTION 21.  Section 11.134(c), Water Code, is amended to
12-14    read as follows:
12-15          (c)  Beginning January 5, 2002 [September 1, 2001], the
12-16    commission may not issue a water right for municipal purposes in a
12-17    region that does not have an approved regional water plan in
12-18    accordance with Section 16.053(i) [of this code] unless the
12-19    commission determines that conditions warrant waiver of this
12-20    requirement.
12-21          SECTION 22.  Section 11.138(a), Water Code, is amended to
12-22    read as follows:
12-23          (a)  The commission may issue temporary permits for
12-24    beneficial purposes to the extent that they do not interfere with
12-25    or adversely affect prior appropriations or vested rights on the
12-26    stream from which water is to be diverted under such temporary
12-27    permit.  The commission may, by appropriate order, authorize any
 13-1    member of the commission to approve and issue temporary permits
 13-2    without notice and hearing if it appears to such issuing party that
 13-3    sufficient water is available at the proposed point of diversion to
 13-4    satisfy the requirements of the temporary permit as well as all
 13-5    existing rights.  No temporary permit issued without notice and
 13-6    hearing shall authorize more than 10 acre-feet of water, nor may it
 13-7    be for a term in excess of one year.  The commission by rule may
 13-8    authorize the beneficial use, without a permit, of not more than 25
 13-9    acre-feet of water, for a term not to exceed one year, if the
13-10    diversion of water will not affect existing water right holders and
13-11    the user of the water registers the use with the commission in the
13-12    manner required by the commission.
13-13          SECTION 23.  Section 11.139, Water Code, is amended to read
13-14    as follows:
13-15          Sec. 11.139.  EMERGENCY AUTHORIZATIONS.  [(a)] Except as
13-16    provided by Section 5.506 [11.148 of this code], the commission may
13-17    grant an emergency permit, order, or amendment to an existing
13-18    permit, certified filing, or certificate of adjudication under
13-19    Subchapter L, Chapter 5 [after notice to the governor for an
13-20    initial period of not more than 120 days if the commission finds
13-21    that emergency conditions exist which present an imminent threat to
13-22    the public health and safety and which override the necessity to
13-23    comply with established statutory procedures and there are no
13-24    feasible practicable alternatives to the emergency authorization.
13-25    Such emergency action may be renewed once for not longer than 60
13-26    days].
13-27          [(b)  A person desiring to obtain an emergency authorization
 14-1    under this section shall submit to the commission a sworn
 14-2    application containing the following information:]
 14-3                [(1)  a description of the condition of emergency
 14-4    justifying the granting of the emergency authorization;]
 14-5                [(2)  a statement setting forth facts which support the
 14-6    findings required under this section;]
 14-7                [(3)  an estimate of the dates on which the proposed
 14-8    authorization should begin and end;]
 14-9                [(4)  a description of the action sought and the
14-10    activity proposed to be allowed, mandated, or prohibited; and]
14-11                [(5)  any other statements or information required by
14-12    the commission.]
14-13          [(c)  If the commission finds the applicant's statement made
14-14    under Subsection (b) of this section to be correct, the commission
14-15    may grant emergency authorizations under this section without
14-16    notice and hearing or with such notice and hearing as the
14-17    commission considers practicable under the circumstances.]
14-18          [(d)  If the commission grants an emergency authorization
14-19    under this section without a hearing, the authorization shall fix a
14-20    time and place for a hearing to be held before the commission.  The
14-21    hearing shall be held as soon after the emergency authorization is
14-22    granted as is practicable but not later than 20 days after the
14-23    emergency authorization is granted.]
14-24          [(e)  At the hearing, the commission shall affirm, modify, or
14-25    set aside the emergency authorization.  Any hearing on an emergency
14-26    authorization shall be conducted in accordance with Chapter 2001,
14-27    Government Code, and rules of the commission.]
 15-1          [(f)  If an imminent threat to the public health and safety
 15-2    exists which requires emergency action before the commission can
 15-3    take action as provided by Subsections (a)  through (c) of this
 15-4    section and there are no feasible alternatives, the executive
 15-5    director may grant an emergency authorization after notice to the
 15-6    governor.  If the executive director issues an emergency
 15-7    authorization under this subsection, the commission shall hold a
 15-8    hearing as provided for in Subsections (d) and (e) of this section.
 15-9    The requirements of Subsection (b) of this section shall be
15-10    satisfied by the applicant before action is taken by the executive
15-11    director on the request for emergency authorization.]
15-12          [(g)  The requirements of Section 11.132 of this code
15-13    relating to the time for notice, newspaper notice, and method of
15-14    giving a person notice do not apply to a hearing held on an
15-15    application for an emergency authorization under this section, but
15-16    such general notice of the hearing shall be given as the
15-17    commission, under Subsections (c) and (e) of this section,
15-18    considers practicable under the circumstances.]
15-19          [(h)  The commission may grant an emergency authorization
15-20    under this section for the temporary transfer and use of all or
15-21    part of a permit, certified filing, or certificate of adjudication
15-22    for other than domestic or municipal use to a retail or wholesale
15-23    water supplier for public health and safety purposes.  In addition
15-24    to the requirements contained in Subsection (b) of this section,
15-25    the commission may direct that the applicant will timely pay the
15-26    amounts for which the applicant may be potentially liable under
15-27    Subsection (j) of this section and to the extent authorized by law
 16-1    will fully indemnify and hold harmless the state, the executive
 16-2    director, and the commission from any and all liability for the
 16-3    authorization sought.  The commission may order bond or other
 16-4    surety in a form acceptable to the commission as a condition for
 16-5    such emergency authorization.  The commission may not grant an
 16-6    emergency authorization under this section which would cause a
 16-7    violation of a federal regulation.]
 16-8          [(i)  In transferring the amount of water requested by the
 16-9    applicant, the executive director or the commission shall allocate
16-10    the requested amount among two or more permits, certified filings,
16-11    or certificates of adjudication for other than domestic or
16-12    municipal use.]
16-13          [(j)  The person granted an emergency authorization under
16-14    Subsection (h) of this section is liable to the owner and the
16-15    owner's agent or lessee from whom the use is transferred for the
16-16    fair market value of the water transferred as well as for any
16-17    damages caused by the transfer of use.  If, within 60 days of the
16-18    termination of the authorization, the parties do not agree on the
16-19    amount due, or if full payment is not made, either party may file a
16-20    complaint with the commission to determine the amount due.  The
16-21    commission may use dispute resolution procedures for a complaint
16-22    filed under this subsection.  After exhausting all administrative
16-23    remedies under this subsection, an owner from whom the use is
16-24    transferred may file suit to recover or determine the amount due in
16-25    a district court in the county where the owner resides or has its
16-26    headquarters.  The prevailing party in a suit filed under this
16-27    subsection is entitled to recover court costs and reasonable
 17-1    attorney's fees.]
 17-2          [(k)  The commission may prescribe rules and adopt fees which
 17-3    are necessary to carry out the provisions of this section.]
 17-4          [(l)  An emergency authorization does not vest in the grantee
 17-5    any right to the diversion, impoundment, or use of water and shall
 17-6    expire and be cancelled in accordance with its terms.]
 17-7          SECTION 24.  Section 11.142(a), Water Code, is amended to
 17-8    read as follows:
 17-9          (a)  Without obtaining a permit, a person may construct on
17-10    the person's [his] own property a dam or reservoir with normal
17-11    storage of not more than 200 acre-feet of water for domestic and
17-12    livestock purposes.  A person who temporarily stores more than 200
17-13    acre-feet of water in a dam or reservoir described by this
17-14    subsection is not required to obtain a permit for the dam or
17-15    reservoir if the person can demonstrate that the person has not
17-16    stored in the dam or reservoir more than 200 acre-feet of water on
17-17    average in any 12-month period.
17-18          SECTION 25.  Section 11.146, Water Code, is amended by adding
17-19    Subsection (g) to read as follows:
17-20          (g)  This section does not apply to a permit that
17-21    contemplates construction of a reservoir designed for the storage
17-22    of more than 75,000 acre-feet of water.
17-23          SECTION 26.  Section 11.173(b), Water Code, is amended to
17-24    read as follows:
17-25          (b)  A permit, certified filing, or certificate of
17-26    adjudication or a portion of a permit, certified filing, or
17-27    certificate of adjudication is exempt from cancellation under
 18-1    Subsection (a)  of this section:
 18-2                (1)  to the extent of the owner's participation in the
 18-3    Conservation Reserve Program authorized by the Food Security Act,
 18-4    Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985)
 18-5    or a similar governmental program;  [or]
 18-6                (2)  if any portion of the water authorized to be used
 18-7    pursuant to a permit, certified filing, or certificate of
 18-8    adjudication has been used in accordance with a regional water plan
 18-9    approved pursuant to Section 16.053 of this code;
18-10                (3)  if the permit, certified filing, or certificate of
18-11    adjudication was obtained to meet demonstrated long-term public
18-12    water supply or electric generation needs as evidenced by a water
18-13    management plan developed by the holder and consistent with
18-14    projections of future water needs contained in the state water
18-15    plan; or
18-16                (4)  if the permit, certified filing, or certificate of
18-17    adjudication was obtained as the result of the construction of a
18-18    reservoir funded, in  whole or in part, by the holder of the
18-19    permit, certified filing, or certificate of adjudication as part of
18-20    the holder's long-term water planning.
18-21          SECTION 27.  Section 11.177(b), Water Code, is amended to
18-22    read as follows:
18-23          (b)  In determining what constitutes reasonable diligence or
18-24    a justified nonuse as used in Subsection (a)(2) of this section,
18-25    the commission shall give consideration to:
18-26                (1)  whether sufficient water is available in the
18-27    source of supply to meet all or part of the appropriation during
 19-1    the 10-year period of nonuse;
 19-2                (2)  whether the nonuse is justified by the holder's
 19-3    participation in the federal Conservation Reserve Program or a
 19-4    similar governmental program as provided by Section 11.173(b)(1) of
 19-5    this code;
 19-6                (3)  [whether the permit, certified filing, or
 19-7    certificate of adjudication was obtained to meet demonstrated
 19-8    long-term public water supply or electric generation needs as
 19-9    evidenced by a water management plan developed by the holder and
19-10    consistent with projections of future water needs contained in the
19-11    state water plan;]
19-12                [(4)  whether the permit, certified filing, or
19-13    certificate of adjudication was obtained as the result of the
19-14    construction of a reservoir funded, in whole or in part, by the
19-15    holder of the permit, certified filing, or certificate of
19-16    adjudication as part of the holder's long-term water planning;]
19-17                [(5)] whether the existing or proposed authorized
19-18    purpose and place of use are consistent with an approved regional
19-19    water plan as provided by Section 16.053 of this code;
19-20                (4) [(6)]  whether the permit, certified filing, or
19-21    certificate of adjudication has been deposited into the Texas Water
19-22    Bank as provided by Sections 15.7031 and 15.704 of this code or
19-23    whether it can be shown that the water right or water available
19-24    under the right is currently being made available for purchase
19-25    through private marketing efforts; or
19-26                (5) [(7)]  whether the permit, certified filing, or
19-27    certificate of adjudication has been reserved to provide for
 20-1    instream flows or bay and estuary inflows.
 20-2          SECTION 28.  Sections 12.052(c), (d), (e), and (f), Water
 20-3    Code, are amended to read as follows:
 20-4          (c)  The [If the] owner of a dam that is required to be
 20-5    constructed, reconstructed, repaired, or removed in order to comply
 20-6    with the rules and orders promulgated under Subsection (a)  of this
 20-7    section may not wilfully fail [fails] or refuse [refuses] to comply
 20-8    within the 30-day period following the date of the commission's
 20-9    final, nonappealable order to do so and may not [or if a person]
20-10    wilfully fail [fails] to comply with any rule or other order issued
20-11    by  the commission under this section within the 30-day period
20-12    following the effective date of the order[, he is liable to a
20-13    penalty of not more than $5,000 a day for each day he continues to
20-14    violate this section.  The state may recover the penalty by suit
20-15    brought for that purpose in the district court of Travis County].
20-16          (d)  The commission may issue an emergency works safety order
20-17    under Section 5.519 [If the commission determines that the existing
20-18    condition  of the dam is creating or will cause extensive or severe
20-19    property damage or economic loss to others or is posing an
20-20    immediate and serious threat to human life or health and that other
20-21    procedures available to the commission to remedy or prevent the
20-22    occurrence of the situation will result in unreasonable delay, the
20-23    commission may issue an emergency order, either mandatory or
20-24    prohibitory in nature, directing the owner of a dam to repair,
20-25    modify, maintain, dewater, or remove the dam which the commission
20-26    determines is unsafe.  The emergency order may be issued without
20-27    notice to the dam owner or with notice the commission considers
 21-1    practicable under the circumstances.  The notice does not have to
 21-2    comply with Chapter 2001, Government Code].
 21-3          (e)  [If the commission issues an emergency order under
 21-4    authority of this section without notice to the dam owner, the
 21-5    commission shall fix a time and place for a hearing which shall be
 21-6    held as soon as practicable to affirm, modify, or set aside the
 21-7    emergency order.  The notice does not have to comply with Chapter
 21-8    2001, Government Code.  If the nature of the commission's action
 21-9    requires further proceedings, those proceedings shall be conducted
21-10    as appropriate under the Administrative Procedure and Texas
21-11    Register Act, as amended (Article 6252-13a, Vernon's Texas Civil
21-12    Statutes).]
21-13          [(f)]  Nothing in this section or in rules or orders made by
21-14    the commission shall be construed to relieve an owner or operator
21-15    of a dam or reservoir of the legal duties, obligations, or
21-16    liabilities incident to ownership or operation.
21-17          SECTION 29.  Section 13.242(b), Water Code, is amended to
21-18    read as follows:
21-19          (b)  A person that is not a retail public utility or a
21-20    utility or water supply corporation that is operating under
21-21    provisions pursuant to Subsection (c) may not construct facilities
21-22    to provide water or sewer service to more than one service
21-23    connection not on the property owned by the person and that are
21-24    within the certificated area of a retail public utility without
21-25    first obtaining written consent from the retail public utility.  A
21-26    person that violates this section or the reasonable and legal terms
21-27    and conditions of any written consent is subject to the
 22-1    administrative penalties described by Subchapter C, Chapter 7
 22-2    [Section 13.4151 of this code].
 22-3          SECTION 30.  Chapter 7, Water Code, is amended by adding
 22-4    Subchapter I, and Sections 13.412, 13.4131, and 13.4132, Water
 22-5    Code, are transferred to Subchapter I, Chapter 7, Water Code,
 22-6    redesignated as Sections 7.402, 7.403, and 7.404, and amended to
 22-7    read as follows:
 22-8       SUBCHAPTER I.  RECEIVERSHIP; SUPERVISION OF CERTAIN UTILITIES
 22-9          Sec. 7.401.  DEFINITION.  In this subchapter, "affiliated
22-10    interest" and "affiliate" have the meanings assigned by Section
22-11    13.002.
22-12          Sec. 7.402 [13.412].  RECEIVERSHIP.  (a)  At the request of
22-13    the commission, the attorney general shall bring suit for the
22-14    appointment of a receiver to collect the assets and carry on the
22-15    business of a water or sewer utility that:
22-16                (1)  has abandoned operation of its facilities;
22-17                (2)  informs the commission that the owner is
22-18    abandoning the system;
22-19                (3)  violates a final order of the commission; or
22-20                (4)  allows any property owned or controlled by it to
22-21    be used in violation of a final order of the commission.
22-22          (b)  The court shall appoint a receiver if an appointment is
22-23    necessary:
22-24                (1)  to guarantee the collection of assessments, fees,
22-25    penalties, or interest;
22-26                (2)  to guarantee continuous and adequate service to
22-27    the customers of the utility; or
 23-1                (3)  to prevent continued or repeated violation of the
 23-2    final order.
 23-3          (c)  The receiver shall execute a bond to assure the proper
 23-4    performance of the receiver's duties in an amount to be set by the
 23-5    court.
 23-6          (d)  After appointment and execution of bond, the receiver
 23-7    shall take possession of the assets of the utility specified by the
 23-8    court.  Until discharged by the court, the receiver shall perform
 23-9    the duties that the court directs to preserve the assets and carry
23-10    on the business of the utility and shall strictly observe the final
23-11    order involved.
23-12          (e)  On a showing of good cause by the utility, the court may
23-13    dissolve the receivership and order the assets and control of the
23-14    business returned to the utility.
23-15          (f)  For purposes of this section and Section 7.404
23-16    [13.4132], abandonment may include but is not limited to:
23-17                (1)  failure to pay a bill or obligation owed to a
23-18    retail public utility or to an electric or gas utility with the
23-19    result that the utility service provider has issued a notice of
23-20    discontinuance of necessary services;
23-21                (2)  failure to provide appropriate water or wastewater
23-22    treatment so that a potential health hazard results;
23-23                (3)  failure to adequately maintain facilities,
23-24    resulting in potential health hazards, extended outages, or
23-25    repeated service interruptions;
23-26                (4)  failure to provide customers adequate notice of a
23-27    health hazard or potential health hazard;
 24-1                (5)  failure to secure an alternative available water
 24-2    supply during an outage;
 24-3                (6)  displaying a pattern of hostility toward or
 24-4    repeatedly failing to respond to the commission or the utility's
 24-5    customers; and
 24-6                (7)  failure to provide the commission with adequate
 24-7    information on how to contact the utility for normal business and
 24-8    emergency purposes.
 24-9          (g)  Notwithstanding Section 64.021, Civil Practice and
24-10    Remedies Code, a receiver appointed under this section may seek
24-11    commission approval to acquire the water or sewer utility's
24-12    facilities and transfer the utility's certificate of convenience
24-13    and necessity.  The receiver must apply in accordance with
24-14    Subchapter H, Chapter 13.
24-15          Sec. 7.403 [13.4131].  SUPERVISION OF CERTAIN UTILITIES.  (a)
24-16    The commission, after providing to the utility notice and an
24-17    opportunity for a hearing, may place a utility under supervision
24-18    for gross or continuing mismanagement, gross or continuing
24-19    noncompliance with Chapter 13 [this chapter] or commission rules,
24-20    or noncompliance with commission orders.
24-21          (b)  While supervising a utility, the commission may require
24-22    the utility to:
24-23                (1)  meet [abide by] conditions and requirements
24-24    prescribed by the commission, including:
24-25                      (A) [(1)]  management requirements;
24-26                      (B) [(2)]  additional reporting requirements;
24-27                      (C) [(3)]  restrictions on hiring, salary or
 25-1    benefit increases, capital investment, borrowing, stock issuance or
 25-2    dividend declarations, and liquidation of assets; and
 25-3                      (D) [(4)]  a requirement that the utility place
 25-4    the utility's funds into an account in a financial institution
 25-5    approved by the commission and use of those funds shall be
 25-6    restricted to reasonable and necessary utility expenses; and
 25-7                (2) [.  (c)  While supervising a utility, the
 25-8    commission may require that the utility] obtain commission approval
 25-9    before taking an [any] action [that may be] restricted under
25-10    Subdivision (1) [Subsection (b)] of this subsection [section].
25-11          (c)  An [Any] action or transaction for which commission
25-12    approval is required by this section that [which] occurs without
25-13    commission approval may be voided by the commission.
25-14          Sec. 7.404 [13.4132].  OPERATION OF UTILITY THAT DISCONTINUES
25-15    OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER.  (a)  The
25-16    commission, after providing to the utility notice and an
25-17    opportunity to be heard by the commissioners at a commission
25-18    meeting, may authorize a willing person to temporarily manage and
25-19    operate a utility if the utility:
25-20                (1)  has discontinued or abandoned operations or the
25-21    provision of services; or
25-22                (2)  has been or is being referred to the attorney
25-23    general for the appointment of a receiver under Section 7.402
25-24    [13.412].
25-25          (b)  The commission may appoint a person under this section
25-26    by emergency order under Section 5.507 and may authorize an
25-27    emergency rate increase by emergency order under Section 5.508[,
 26-1    and notice of the action is adequate if the notice is mailed or
 26-2    hand-delivered to the last known address of the utility's
 26-3    headquarters].
 26-4          (c)  A person appointed under this section has the powers and
 26-5    duties necessary to ensure the continued operation of the utility
 26-6    and the provision of continuous and adequate services to customers,
 26-7    including the power and duty to:
 26-8                (1)  read meters;
 26-9                (2)  bill for utility services;
26-10                (3)  collect revenues;
26-11                (4)  disburse funds;
26-12                (5)  access all system components; and
26-13                (6)  request rate increases.
26-14          (d)  This section does not affect the authority of the
26-15    commission to pursue an enforcement claim against a utility or an
26-16    affiliated interest.
26-17          SECTION 31.  Section 13.414, Water Code, is amended to read
26-18    as follows:
26-19          Sec. 13.414.  VIOLATION BY [PENALTY AGAINST] RETAIL PUBLIC
26-20    UTILITY OR AFFILIATED INTEREST.  A [(a) Any] retail public utility
26-21    or affiliated interest may not violate [that violates] this
26-22    chapter, fail [fails] to perform a duty imposed on it, or fail,
26-23    neglect, [fails, neglects,] or refuse [refuses] to obey an order,
26-24    rule, direction, or requirement of the commission or decree or
26-25    judgment of a court [is subject to a civil penalty of not less than
26-26    $100 nor more than $5,000 for each violation].
26-27          [(b)  A retail public utility or affiliated interest commits
 27-1    a separate violation each day it continues to violate Subsection
 27-2    (a) of this section.]
 27-3          [(c)  The attorney general shall institute suit on his own
 27-4    initiative or at the request of, in the name of, and on behalf of
 27-5    the commission in a court of competent jurisdiction to recover the
 27-6    penalty under this section.]
 27-7          SECTION 32.  Section 15.102(b), Water Code, is amended to
 27-8    read as follows:
 27-9          (b)  The board may use the loan fund [may also be used by the
27-10    board] to provide grants for:
27-11                (1)  projects that include the provision of [supplying]
27-12    water and wastewater services in economically distressed areas,
27-13    including projects involving retail distribution of those services;
27-14    and
27-15                (2)  one or more of the following projects, if the
27-16    legislature appropriates money specifically for that purpose:
27-17                      (A)  agricultural water conservation;
27-18                      (B)  weather modification;
27-19                      (C)  brush control; or
27-20                      (D)  production of water in connection with an
27-21    oil or gas operation.
27-22          SECTION 33.  Section 15.4061(h), Water Code, is amended to
27-23    read as follows:
27-24          (h)  The board shall require that regional water plans
27-25    developed or revised under contracts entered into under this
27-26    section be made available to the commission, the Department of
27-27    Agriculture, and the Parks and Wildlife Department.
 28-1          SECTION 34.  Section 15.7031(c), Water Code, is amended to
 28-2    read as follows:
 28-3          (c)  The dedication of any water rights placed in trust must
 28-4    be reviewed and approved by the commission, in consultation with
 28-5    the board and the Parks and Wildlife Department.  In addition, the
 28-6    Department of Agriculture may provide input to the commission, as
 28-7    appropriate, during the review and approval process for dedication
 28-8    of water rights.
 28-9          SECTION 35.  Sections 16.012(c), (h), and (j), Water Code,
28-10    are amended to read as follows:
28-11          (c)  In performing the duties required under Subdivisions
28-12    (1), (4), (5), (6), and (7) of Subsection (b), the executive
28-13    administrator shall consider advice from the Parks and Wildlife
28-14    Department.  In addition, the Department of Agriculture may provide
28-15    advice to the executive administrator, where appropriate, regarding
28-16    any of the duties to be performed under Subsection (b).
28-17          (h)  Within 90 days of completing a water availability model
28-18    for a river basin, the commission shall provide to all holders of
28-19    existing permits, certified filings, and certificates of
28-20    adjudication in that river basin the projected amount of water that
28-21    would be available[:] during a drought of record[; when flows are
28-22    at 75 percent of normal; and when flows are at 50 percent of
28-23    normal].
28-24          (j)  Within 90 days of completing a water availability model
28-25    for a river basin, the commission, in coordination with the Parks
28-26    and Wildlife Department and with input from the Department of
28-27    Agriculture, where appropriate, shall determine the potential
 29-1    impact of reusing municipal and industrial effluent on existing
 29-2    water rights, instream uses, and freshwater inflows to bays and
 29-3    estuaries.  Within 30 days of making this determination, the
 29-4    commission shall provide the projections to the board and each
 29-5    regional water planning group created under Section 16.053 of this
 29-6    code in that river basin.
 29-7          SECTION 36.  Sections 16.051(a) and (d), Water Code, are
 29-8    amended to read as follows:
 29-9          (a)  No later than January 5, 2002 [September 1, 2001], and
29-10    every five years thereafter, the board shall adopt a comprehensive
29-11    state water plan that incorporates the regional water plans
29-12    approved under Section 16.053 [of this code].  The state water plan
29-13    shall provide for the orderly development, management, and
29-14    conservation of water resources and preparation for and response to
29-15    drought conditions, in order that sufficient water will be
29-16    available at a reasonable cost to ensure public health, safety, and
29-17    welfare; further economic development; and protect the agricultural
29-18    and natural resources of the entire state.
29-19          (d)  The board, in coordination with the commission, the
29-20    Department of Agriculture, and the Parks and Wildlife Department,
29-21    shall adopt by rule guidance principles for the state water plan
29-22    which reflect the public interest of the entire state.  When
29-23    adopting guidance principles, due consideration shall be given to
29-24    the construction and improvement of surface water resources and the
29-25    application of principles that result in voluntary redistribution
29-26    of water resources.  The board shall review and update the guidance
29-27    principles, with input from the commission, the Department of
 30-1    Agriculture, and the Parks and Wildlife Department, as necessary
 30-2    but at least every five years to coincide with the five-year cycle
 30-3    for adoption of a new water plan as described in Subsection (a).
 30-4          SECTION 37.  Section 16.053, Water Code, is amended by
 30-5    amending Subsections (c), (e), (i), and (j) and adding Subsections
 30-6    (l) through (o) to read as follows:
 30-7          (c)  No later than 60 days after the designation of the
 30-8    regions under Subsection (b) [of this section], the board shall
 30-9    designate representatives within each regional water planning area
30-10    to serve as the initial coordinating body for planning.  The
30-11    initial coordinating body may [shall] then designate additional
30-12    representatives to serve on the regional water planning group.  The
30-13    initial coordinating body shall designate additional
30-14    representatives if necessary to ensure[, ensuring] adequate
30-15    representation from the interests comprising that region, including
30-16    [but not limited to] the public, counties, municipalities,
30-17    industries, agricultural interests, environmental interests, small
30-18    businesses, electric generating utilities, river authorities, water
30-19    districts, and water utilities.  The regional water planning group
30-20    shall maintain adequate representation from those interests.  In
30-21    addition, representatives of the board, the Parks and Wildlife
30-22    Department, and the Department of Agriculture shall serve as ex
30-23    officio members of each regional water planning group.
30-24          (e)  Each regional water planning group shall submit to the
30-25    board a regional water plan that:
30-26                (1)  is consistent with the guidance principles for the
30-27    state water plan adopted by the board under Section 16.051(d) [of
 31-1    this code];
 31-2                (2)  provides information based on data provided or
 31-3    approved by the board in a format consistent with the guidelines
 31-4    provided by the board under Subsection (d) [of this section];
 31-5                (3)  identifies:
 31-6                      (A)  each source of water supply in the regional
 31-7    water planning area in accordance with the guidelines provided by
 31-8    the board under Subsections (d) and (f);
 31-9                      (B)  factors specific to each source of water
31-10    supply to be considered in determining whether to initiate a
31-11    drought response; and
31-12                      (C)  actions to be taken as part of the response;
31-13                (4)  has specific provisions for water management
31-14    strategies to be used[:]
31-15                      [(A)]  during a drought of record[;]
31-16                      [(B)  when flows are at 75 percent of normal; and]
31-17                      [(C)  when flows are at 50 percent of normal];
31-18                (5) [(4)]  includes but is not limited to consideration
31-19    of the following:
31-20                      (A)  any existing water or drought planning
31-21    efforts addressing all or a portion of the region;
31-22                      (B)  certified groundwater conservation district
31-23    management plans and other plans submitted under Section 16.054 [of
31-24    this code];
31-25                      (C)  all potentially feasible water management
31-26    strategies, including but not limited to improved conservation,
31-27    reuse, and management of existing water supplies, acquisition of
 32-1    available existing water supplies, and development of new water
 32-2    supplies;
 32-3                      (D)  protection of existing water rights in the
 32-4    region;
 32-5                      (E)  opportunities for and the benefits of
 32-6    developing regional water supply facilities or providing regional
 32-7    management of water supply facilities;
 32-8                      (F)  appropriate provision for environmental
 32-9    water needs and for the effect of upstream development on the bays,
32-10    estuaries, and arms of the Gulf of Mexico and the effect of plans
32-11    on navigation;
32-12                      (G)  provisions in Section 11.085(k)(1) [of this
32-13    code] if interbasin transfers are contemplated;
32-14                      (H)  voluntary transfer of water within the
32-15    region using, but not limited to, regional water banks, sales,
32-16    leases, options, subordination agreements, and financing
32-17    agreements; and
32-18                      (I)  emergency transfer of water under Section
32-19    11.139 [of this code], including information on the part of each
32-20    permit, certified filing, or certificate of adjudication for
32-21    nonmunicipal use in the region that may be transferred without
32-22    causing unreasonable damage to the property of the nonmunicipal
32-23    water rights holder; and
32-24                (6) [(5)]  identifies river and stream segments of
32-25    unique ecological value and sites of unique value for the
32-26    construction of reservoirs that the regional water planning group
32-27    recommends for protection under Section 16.051 [of this code].
 33-1          (i)  The regional water planning groups shall submit their
 33-2    adopted regional water plans to the board by January 5, 2001
 33-3    [September 1, 2000], for approval and inclusion in the state water
 33-4    plan.  In conjunction with the submission of regional water plans,
 33-5    each planning group should make legislative recommendations, if
 33-6    any, to facilitate more voluntary water transfers in the region.
 33-7    Subsequent regional water plans shall be submitted at least every
 33-8    five years thereafter.  Public participation for revised regional
 33-9    plans shall follow the procedures under Subsection (h) [of this
33-10    section].
33-11          (j)  The board may provide financial assistance to political
33-12    subdivisions under Subchapters E and F of this chapter, [and]
33-13    Subchapters C, D, E, F, and J, Chapter 15, and Subchapters D, I, K,
33-14    and L, Chapter 17, [of this code] for water supply projects only
33-15    if:
33-16                (1)  the board determines that the needs to be
33-17    addressed by the project will be addressed in a manner that is
33-18    consistent with the state water plan; and
33-19                (2)  beginning January 5, 2002 [September 1, 2001], the
33-20    board:
33-21                      (A)  has approved a regional water plan as
33-22    provided by Subsection (i) [of this section], and any required
33-23    updates of the plan, for the region of the state that includes the
33-24    area benefiting from the proposed project; and
33-25                      (B)  determines that the needs to be addressed by
33-26    the project will be addressed in a manner that is consistent with
33-27    that regional water plan.
 34-1          (l)  A political subdivision may contract with a regional
 34-2    water planning group to assist the regional water planning group in
 34-3    developing or revising a regional water plan.
 34-4          (m)  A cause of action does not accrue against a regional
 34-5    water planning group, a representative who serves on the regional
 34-6    water planning group, or an employee of a political subdivision
 34-7    that contracts with the regional water planning group under
 34-8    Subsection (l) for an act or omission in the course and scope of
 34-9    the person's work relating to the regional water planning group.
34-10          (n)  A regional water planning group, a representative who
34-11    serves on the regional water planning group, or an employee of a
34-12    political subdivision that contracts with the regional water
34-13    planning group under Subsection (l) is not liable for damages that
34-14    may arise from an act or omission in the course and scope of the
34-15    person's work relating to the regional water planning group.
34-16          (o)  The attorney general, on request, shall represent a
34-17    regional water planning group, a representative who serves on the
34-18    regional water planning group, or an employee of a political
34-19    subdivision that contracts with the regional water planning group
34-20    under Subsection (l) in a suit arising from an act or omission
34-21    relating to the regional water planning group.
34-22          SECTION 38.  Section 16.054(a), Water Code, is amended to
34-23    read as follows:
34-24          (a)  It is the policy of the state that water resource
34-25    management, water conservation, and drought planning should occur
34-26    on an ongoing basis.  The board, commission, and Parks and Wildlife
34-27    Department shall make available where appropriate technical and
 35-1    financial assistance for such planning.  In addition, the
 35-2    Department of Agriculture may provide input and assistance, as
 35-3    appropriate, for such planning.
 35-4          SECTION 39.  Section 16.237(a), Water Code, is amended to
 35-5    read as follows:
 35-6          (a)  If a person violates a commission rule or order adopted
 35-7    under Section 16.236 [of this code], the commission may assess an
 35-8    administrative penalty against that person as provided by
 35-9    Subchapter C, Chapter 7 [Section 11.0842 of this code].
35-10          SECTION 40.  Sections 17.871(2) and (6), Water Code, are
35-11    amended to read as follows:
35-12                (2)  "Borrower district" means a political subdivision,
35-13    including a district or authority created under Article III,
35-14    Sections 52(b)(1) and (2), or Article XVI, Section 59, of the Texas
35-15    Constitution, that receives or is eligible to receive a
35-16    conservation loan from the board for a purpose described by Section
35-17    17.895 or 17.8955 [improvement to district facilities].
35-18                (6)  "Lender district" means a political subdivision,
35-19    including a soil and water conservation district under Chapter 201,
35-20    Agriculture Code, an underground water conservation district
35-21    created under Article XVI, Section 59, of the Texas Constitution,
35-22    or a district or authority created under Article III, Section
35-23    52(b)(1), or Article XVI, Section 59, of the Texas Constitution
35-24    authorized to supply water for irrigation purposes, that is
35-25    eligible to receive or that receives a loan from the board for the
35-26    purpose of making conservation loans to individual borrowers.
35-27          SECTION 41.  Subchapter J, Chapter 17, Water Code, is amended
 36-1    by amending Section 17.895 and adding Section 17.8955 to read as
 36-2    follows:
 36-3          Sec. 17.895.  CONSERVATION LOANS.  (a)  This section applies
 36-4    only to a conservation loan:
 36-5                (1)  from a lender district that is:
 36-6                      (A)  a soil and water conservation district under
 36-7    Chapter 201, Agriculture Code;
 36-8                      (B)  an underground water conservation district
 36-9    created under Section 59, Article XVI, Texas Constitution; or
36-10                      (C)  a district or authority created under
36-11    Section 52(b)(1), Article III, or Section 59, Article XVI, Texas
36-12    Constitution, authorized to supply water for irrigation purposes;
36-13    or
36-14                (2)  to a borrower district that is a district or
36-15    authority created under Sections 52(b)(1) and (2), Article III, or
36-16    Section 59, Article XVI, Texas Constitution.
36-17          (b)  The board or a lender district [districts] may make
36-18    conservation loans for capital equipment or materials, labor,
36-19    preparation costs, and installation costs:
36-20                (1)  to improve water use efficiency of water delivery
36-21    and application on existing irrigation systems;
36-22                (2)  for preparing irrigated land to be converted to
36-23    dryland conditions; and
36-24                (3)  for preparing dryland for more efficient use of
36-25    natural precipitation[;]
36-26                [(4)  for preparing and maintaining land to be used for
36-27    brush control activities, including but not limited to activities
 37-1    conducted pursuant to Chapter 203, Agriculture Code; or]
 37-2                [(5)  for implementing precipitation enhancement
 37-3    activities in areas of the state where such activities would be, in
 37-4    the board's judgment, most effective].
 37-5          (c) [(b)]  Conservation loans for the purposes listed in
 37-6    Subsection (b) [(a)] may be made by lender districts to individual
 37-7    borrowers for use on private property or by the board to borrower
 37-8    districts [for use on district facilities].
 37-9          (d) [(c)]  The board may make conservation loans to borrower
37-10    districts  for the cost of purchasing and installing devices, on
37-11    public or private property, designed to indicate the amount of
37-12    water withdrawn for irrigation purposes.
37-13          (e)  For purposes of this subchapter, the board or lender
37-14    districts may seek the advice of the Department of Agriculture
37-15    regarding the feasibility of a project for which a conservation
37-16    loan is sought.
37-17          Sec. 17.8955.  CONSERVATION LOANS FOR BRUSH CONTROL AND
37-18    PRECIPITATION ENHANCEMENT.  (a)  The board or a lender district may
37-19    make a conservation loan for capital equipment or materials, labor,
37-20    preparation costs, and installation costs for:
37-21                (1)  preparing and maintaining land to be used for
37-22    brush control activities, including activities conducted under
37-23    Chapter 203, Agriculture Code; or
37-24                (2)  implementing precipitation enhancement activities
37-25    in areas of the state where those activities would be, in the
37-26    board's judgment, most effective.
37-27          (b)  A conservation loan for a purpose listed in Subsection
 38-1    (a) may be made by a lender district to an individual borrower for
 38-2    use on private property or by the board to a borrower district.
 38-3          SECTION 42.  Section 26.0135(h), Water Code, is amended to
 38-4    read as follows:
 38-5          (h)  The commission shall apportion, assess, and recover the
 38-6    reasonable costs of administering the water quality management
 38-7    programs under this section from users of water and wastewater
 38-8    permit holders in the watershed according to the records of the
 38-9    commission generally in proportion to their right, through permit
38-10    or contract, to use water from and discharge wastewater in the
38-11    watershed.  Irrigation water rights and hydroelectric rights of
38-12    facilities of less than five megawatts will not be subject to this
38-13    assessment.  The cost to river authorities and others to conduct
38-14    water quality monitoring and assessment shall be subject to prior
38-15    review and approval by the commission as to methods of allocation
38-16    and total amount to be recovered.  The commission shall adopt rules
38-17    to supervise and implement the water quality monitoring,
38-18    assessment, and associated costs.  The rules shall ensure that
38-19    water users and wastewater dischargers do not pay excessive
38-20    amounts, that program funds are equitably apportioned among basins,
38-21    that a river authority may recover no more than the actual costs of
38-22    administering the water quality management programs called for in
38-23    this section, and that no municipality shall be assessed cost for
38-24    any efforts that duplicate water quality management activities
38-25    described in Section 26.177 of this chapter.  The rules concerning
38-26    the apportionment and assessment of reasonable costs shall provide
38-27    for a recovery of not more than $5,000,000 annually.  Costs
 39-1    recovered by the commission are to be deposited to the credit of
 39-2    the water resource management account and may be used only to
 39-3    accomplish the purposes of this section.  The commission may apply
 39-4    not more than 10 percent of the costs recovered annually toward the
 39-5    commission's overhead costs for the administration of this section
 39-6    and the implementation of regional water quality assessments.  The
 39-7    commission, with the assistance and input of each river authority,
 39-8    shall file a written report accounting for the costs recovered
 39-9    under this section with the governor, the lieutenant governor, and
39-10    the speaker of the house of representatives on or before December 1
39-11    of each even-numbered year.
39-12          SECTION 43.  Section 26.121(a), Water Code, is amended to
39-13    read as follows:
39-14          (a)  Except as authorized by the commission, no person may:
39-15                (1)  discharge sewage, municipal waste, recreational
39-16    waste, agricultural waste, or industrial waste into or adjacent to
39-17    any water in the state;
39-18                (2)  discharge other waste into or adjacent to any
39-19    water in the state which in itself or in conjunction with any other
39-20    discharge or activity causes, continues to cause, or will cause
39-21    pollution of any of the water in the state, unless the discharge
39-22    complies with a person's:
39-23                      (A)  certified water quality management plan
39-24    approved by the State Soil and Water Conservation Board as provided
39-25    by Section 201.026, Agriculture Code; or
39-26                      (B)  water pollution and abatement plan approved
39-27    by the commission; or
 40-1                (3)  commit any other act or engage in any other
 40-2    activity which in itself or in conjunction with any other discharge
 40-3    or activity causes, continues to cause, or will cause pollution of
 40-4    any of the water in the state, unless the activity is under the
 40-5    jurisdiction of the Parks and Wildlife Department, the General Land
 40-6    Office, the Department of Agriculture, or the Railroad Commission
 40-7    of Texas, in which case this subdivision does not apply.
 40-8          SECTION 44.  Section 26.127, Water Code, is amended to read
 40-9    as follows:
40-10          Sec. 26.127.  Commission as Principal Authority.  (a)   The
40-11    commission is the principal authority in the state on matters
40-12    relating to the quality of the water in the state.  The executive
40-13    director has the responsibility for establishing a water quality
40-14    sampling and monitoring program for the state.  All other state
40-15    agencies engaged in water quality or water pollution control
40-16    activities shall coordinate those activities with the commission.
40-17          (b)  The executive director may, on behalf of and with the
40-18    consent of the commission, enter into contracts or other agreements
40-19    with the Department of Agriculture for purposes of obtaining
40-20    laboratory services for water quality testing.
40-21          SECTION 45.  Section 35.007(e), Water Code, is amended to
40-22    read as follows:
40-23          (e)  The executive director shall request a study from the
40-24    executive director of the Parks and Wildlife Department for the
40-25    purpose of preparing the report required by this section.  The
40-26    Department of Agriculture may also provide input to the executive
40-27    director for purposes of the report.  The study must:
 41-1                (1)  evaluate the potential effects of the designation
 41-2    of a priority groundwater management area on an area's natural
 41-3    resources; and
 41-4                (2)  be completed and delivered to the executive
 41-5    director on or before the 180th day following the date of the
 41-6    request.  If the study is not delivered within this 180-day period,
 41-7    the executive director may proceed with the preparation of the
 41-8    report.
 41-9          SECTION 46.  Chapter 35, Water Code, is amended by adding
41-10    Section 35.010 to read as follows:
41-11          Sec. 35.010.  CREATION OF DISTRICTS ON PETITION AFTER
41-12    DESIGNATION OF PRIORITY GROUNDWATER MANAGEMENT AREA.  The
41-13    commission may not consider the creation of a groundwater
41-14    conservation district in a designated priority groundwater
41-15    management area before the conclusion of the next regular session
41-16    of the Texas Legislature following the designation unless the local
41-17    landowners have initiated a petition process under Chapter 36 for
41-18    the creation of a groundwater conservation district with a priority
41-19    groundwater management area.
41-20          SECTION 47.  Section 35.012, Water Code, is amended by adding
41-21    new Subsections (c) and (d), relettering existing Subsections (c),
41-22    (d), (e), and (f) as Subsections (e), (f), (g), and (h), and
41-23    amending existing Subsection (d) to read as follows:
41-24          (c)  Not later than the 10th day after the date on which the
41-25    commission order designating a priority groundwater management area
41-26    is issued, the commission shall send written notice of the
41-27    commission's actions to each entity entitled to written notice
 42-1    under Section 35.009(c).  The notice must include the commission's
 42-2    findings and conclusions from the data and information considered
 42-3    in designating the priority groundwater management area and the
 42-4    commission's recommendation regarding the need for a groundwater
 42-5    conservation district in the priority groundwater management area.
 42-6          (d)  As soon as possible after a commission order designating
 42-7    a priority groundwater management area, the Texas Agricultural
 42-8    Extension Service shall begin an educational program within the
 42-9    area with the assistance and cooperation of the Texas Water
42-10    Development Board, the commission, the Department of Agriculture,
42-11    other state agencies, and existing districts to inform the
42-12    residents of the status of the area's water resources and
42-13    management options including possible formation of a district.
42-14          (e) [(c)]  Following the issuance of a commission order under
42-15    Subsection (b), the landowners in the priority groundwater
42-16    management area may:
42-17                (1)  create one or more districts under Subchapter B,
42-18    Chapter 36;
42-19                (2)  have the area annexed to a district that adjoins
42-20    the area; or
42-21                (3)  create one or more districts through the
42-22    legislative process.
42-23          (f) [(d)]  The commission shall identify the areas subject to
42-24    the order of the commission issued under Subsection (b) that have
42-25    not been incorporated into a district and shall delineate proposed
42-26    boundaries of a district to include those areas.  [If the
42-27    commission proposes the creation of one or more districts, the
 43-1    Texas Agricultural Extension Service shall begin an educational
 43-2    program within such areas with the assistance and cooperation of
 43-3    the Texas Water Development Board, the commission, other state
 43-4    agencies, and existing districts to inform the residents of the
 43-5    status of the area's water resources and management options
 43-6    including possible formation of a district, before beginning the
 43-7    procedures for creation of a district provided in Subchapter B,
 43-8    Chapter 36.]
 43-9          (g) [(e)]  If the commission fails to find that the district
43-10    would be a benefit to the land and other property within the
43-11    priority groundwater management area, that there is a public need
43-12    for the district, or that creation of the district will further the
43-13    public welfare, the commission shall issue an order stating that a
43-14    district should not be created within the boundaries of the
43-15    priority groundwater management area.
43-16          (h) [(f)]  An order of the commission issued under this
43-17    section may not be appealed.
43-18          SECTION 48.  Section 35.013(d), Water Code, is amended to
43-19    read as follows:
43-20          (d)  If the board votes to accept the addition of the
43-21    priority groundwater management area to the district, the board:
43-22                (1)  may request the Texas Agricultural Extension
43-23    Service, the commission, and the Texas Water Development Board,
43-24    with the cooperation and assistance of the Department of
43-25    Agriculture and other state agencies, to administer an educational
43-26    program to inform the residents of the status of the area's water
43-27    resources and management options including possible annexation into
 44-1    a district;
 44-2                (2)  shall call an election within the priority
 44-3    groundwater management area as delineated by the commission to
 44-4    determine if the priority groundwater management area will be added
 44-5    to the district; and
 44-6                (3)  shall designate election precincts and polling
 44-7    places for the elections in the order calling an election under
 44-8    this subsection.
 44-9          SECTION 49.  Section 36.014, Water Code, is amended to read
44-10    as follows:
44-11          Sec. 36.014.  NOTICE AND HEARING ON DISTRICT CREATION.  [(a)]
44-12    If a petition is filed under Section 36.013 or the commission
44-13    proposes that a district be created under Section 35.012(b), the
44-14    commission shall give notice of the [an] application or proposal as
44-15    required by Section 49.011(a) and may conduct a hearing on the
44-16    application or proposal if the commission determines that a hearing
44-17    is necessary under Section 49.011.
44-18          [(b)  If the petition contains a request to create a
44-19    management area in all or part of the proposed district, the notice
44-20    must also be given in accordance with the requirements in Section
44-21    35.006 for the designation of management areas.]
44-22          SECTION 50.  Section 36.015, Water Code, is amended to read
44-23    as follows:
44-24          Sec. 36.015.  FINDINGS.  (a)  If the commission finds that a
44-25    district requested by petition or proposed by the commission is
44-26    feasible and practicable, [that it] would be a benefit to the land
44-27    in the district, and [that it] would be a public benefit or
 45-1    utility, the commission shall issue an order containing these
 45-2    findings granting the petition or adopting the proposal, as
 45-3    appropriate.
 45-4          (b)  If the commission finds that a district is not feasible
 45-5    and practicable, that it would not be a benefit to the land in the
 45-6    district, that it would not be a public benefit or utility, or that
 45-7    it is not needed, the commission by order shall deny the petition
 45-8    or reject the proposal, as appropriate.
 45-9          (c)  The commission may adjust the boundaries of the proposed
45-10    district to exclude any land that would not be benefited by
45-11    inclusion in the district and is not necessary to the district for
45-12    proper regulation of the groundwater reservoir.
45-13          (d)  If the commission grants the petition or adopts the
45-14    proposal to create the district, it shall direct in its order
45-15    creating the district  that an election be called by the temporary
45-16    directors to confirm the creation of the district and to elect
45-17    permanent directors.
45-18          (e)  [The refusal to grant a petition to create a district
45-19    does not invalidate or affect the designation of any management
45-20    area requested in the same petition.]
45-21          [(f)]  The commission shall act on the petition or its
45-22    proposal within a reasonable amount of time.
45-23          SECTION 51.  Section 36.0151, Water Code, is amended to read
45-24    as follows:
45-25          Sec. 36.0151.  NOTICE OF CREATION BY COMMISSION OF DISTRICT
45-26    FOR PRIORITY GROUNDWATER MANAGEMENT AREA.  [(a)  If the commission
45-27    proposes that a district be created under Section 35.012(d), it
 46-1    shall in its order creating the district provide that temporary
 46-2    directors be appointed under Section 36.016 and that an election be
 46-3    called by the temporary directors to confirm the creation of the
 46-4    district and to elect permanent directors.]
 46-5          [(b)]  The commission shall notify the county commissioners
 46-6    court of each county with territory in the district of the
 46-7    district's creation as soon as practicable after issuing the order
 46-8    under Section 36.015(a) creating a [the] district proposed by the
 46-9    commission under Section 35.012(b).
46-10          SECTION 52.  Section 36.051, Water Code, is amended by
46-11    amending Subsections (b) and (c) and adding Subsection (d) to read
46-12    as follows:
46-13          (b)  To be qualified to be elected as a director, a person
46-14    must be a registered voter in the precinct that the person
46-15    represents.
46-16          (c)  A member of a governing body of another political
46-17    subdivision is ineligible for appointment or election as a
46-18    director.  A director is disqualified and vacates the office of
46-19    director if the director is appointed or elected as a member of the
46-20    governing body of another political subdivision.  This subsection
46-21    does not apply to any district with a population less than 50,000.
46-22          (d) [(c)]  Vacancies in the office of director shall be
46-23    filled by appointment of the board.  If the vacant office is not
46-24    scheduled for election for longer than two years at the time of the
46-25    appointment, the board shall order an election for the unexpired
46-26    term to be held as part of the next regularly scheduled director's
46-27    election.  The appointed director's term shall end on qualification
 47-1    of the director elected at that election.
 47-2          SECTION 53.  Section 36.059(b), Water Code, is amended to
 47-3    read as follows:
 47-4          (b)  The directors of the district shall be elected according
 47-5    to the precinct method as defined by Chapter 12, page 1105, Special
 47-6    Laws, Acts of the 46th Legislature, Regular Session, 1939.  [To be
 47-7    qualified to be elected as a director, a person must be a
 47-8    registered voter in the precinct that the person represents.]  If
 47-9    any part of a municipal corporation is a part of one precinct, then
47-10    no part of the municipal corporation shall be included in another
47-11    precinct, except that a municipal corporation having a population
47-12    of more than 200,000 may be divided between two or more precincts.
47-13    In a multicounty district, not more than two of the five precincts
47-14    may include the same municipal corporation or part of the same
47-15    municipal corporation.
47-16          SECTION 54.  Section 36.108, Water Code, is amended to read
47-17    as follows:
47-18          Sec. 36.108.  JOINT PLANNING IN MANAGEMENT AREA OR PRIORITY
47-19    GROUNDWATER MANAGEMENT AREA.  (a)  If two or more districts are
47-20    located within the boundaries of the same management area or
47-21    priority groundwater management area, each district shall prepare a
47-22    comprehensive management  plan as required by Section 36.1071
47-23    covering that district's respective territory.  On completion of
47-24    the plan, each district shall forward a copy of the new revised
47-25    management plan to the other districts in the management area or
47-26    priority groundwater management area.
47-27          (b)  The board of directors of each district in the
 48-1    management area or priority groundwater management area may, by
 48-2    resolution, call a joint meeting with the boards of directors of
 48-3    the other districts in the management area or priority groundwater
 48-4    management area to review the management plans and accomplishments
 48-5    for the management area or priority groundwater management area.
 48-6    The boards shall meet to consider the plans individually and shall
 48-7    compare them to other management plans then in force in the
 48-8    management area.  In reviewing the management plans, the boards
 48-9    shall consider:
48-10                (1)  the goals of each management plan and its impact
48-11    on planning throughout the management area or priority groundwater
48-12    management area;
48-13                (2)  the effectiveness of the measures established by
48-14    each management plan for conserving and protecting groundwater and
48-15    preventing waste, and the effectiveness of these measures in the
48-16    management area or priority groundwater management area generally;
48-17    and
48-18                (3)  any other matters that the boards consider
48-19    relevant to the protection and conservation of groundwater and the
48-20    prevention of waste in the management area or priority groundwater
48-21    management area.
48-22          (c)  A joint meeting of the boards of directors must be held
48-23    in accordance with the Open Meetings Act, Chapter 551, Government
48-24    Code.  Notice of the meeting shall be given in accordance with the
48-25    requirements for notice of district board of directors meetings
48-26    under that Act.  In addition, notice of the meeting shall be
48-27    published not later than the 30th day before the date of the
 49-1    scheduled meeting in a newspaper with general circulation in each
 49-2    county in the management area or priority groundwater management
 49-3    area.
 49-4          (d)  A district in the management area or priority
 49-5    groundwater management area may file a petition with the commission
 49-6    requesting an inquiry if the petitioner district believes that:
 49-7                (1)  another district in the management area or
 49-8    priority groundwater management area has failed to adopt rules;
 49-9                (2)  the groundwater in the management area or priority
49-10    groundwater management area is not adequately protected by the
49-11    rules adopted by another district; or
49-12                (3)  the groundwater in the management area or priority
49-13    groundwater management area is not adequately protected due to the
49-14    failure of another district to enforce substantial compliance with
49-15    its rules.
49-16          (e)  Not later than the 90th day after the date the petition
49-17    is filed, the commission shall review the petition and either:
49-18                (1)  dismiss it if it finds that the evidence is not
49-19    adequate to show that any of the conditions alleged in the petition
49-20    exist; or
49-21                (2)  select a review panel as provided in Subsection
49-22    (f).
49-23          (f)  The commission may appoint a review panel consisting of
49-24    a chairman and four other members.  A director or general manager
49-25    of a district located outside the management area or priority
49-26    groundwater management area that is the subject of the petition may
49-27    be appointed to the review panel.  The commission may not appoint
 50-1    more than two members of the review panel from any one district.
 50-2    The commission also shall appoint a disinterested person to serve
 50-3    as a nonvoting recording secretary for the review panel.  The
 50-4    recording secretary may be an employee of the commission.  The
 50-5    recording secretary shall record and document the proceedings of
 50-6    the panel.
 50-7          (g)  Not later than the 120th day after appointment, the
 50-8    review panel shall review the petition and any evidence relevant to
 50-9    the petition and, in a public meeting, prepare a report to the
50-10    commission.  The commission may direct the review panel to conduct
50-11    public hearings at a location in the management area or priority
50-12    groundwater management area to take evidence on the petition.  The
50-13    review panel may attempt to negotiate a settlement or resolve the
50-14    dispute by any lawful means.
50-15          (h)  In its report, the review panel shall include:
50-16                (1)  a summary of all evidence taken in any hearing on
50-17    the petition;
50-18                (2)  a list of findings and recommended actions
50-19    appropriate for the commission to take and the reasons it finds
50-20    those actions appropriate; and
50-21                (3)  any other information the panel considers
50-22    appropriate.
50-23          SECTION 55.  Section 341.047, Health and Safety Code, is
50-24    transferred to Subchapter E, Chapter 7, Water Code, redesignated as
50-25    Section 7.1605, Water Code,  and amended to read as follows:
50-26          Sec. 7.1605 [341.047].  VIOLATIONS RELATING TO PUBLIC
50-27    DRINKING WATER [CRIMINAL PENALTY].  (a)  A person commits an
 51-1    offense if the person:
 51-2                (1)  violates a provision of Section 341.031, Health
 51-3    and Safety Code;
 51-4                (2)  violates a provision of Section 341.032(a) or (b),
 51-5    Health and Safety Code;
 51-6                (3)  violates a provision of Section 341.033(a)-(f),
 51-7    Health and Safety Code;
 51-8                (4)  constructs a drinking water supply system without
 51-9    submitting completed plans and specifications as required by
51-10    Section 341.035(c), Health and Safety Code;
51-11                (5)  begins construction of a drinking water supply
51-12    system without the commission's approval as required by Section
51-13    341.035(a), Health and Safety Code;
51-14                (6)  violates a provision of Section 341.0351 or
51-15    341.0352, Health and Safety Code;
51-16                (7)  fails to remove a sign as required by Section
51-17    341.0354, Health and Safety Code; or
51-18                (8)  violates a provision of Section 341.036, Health
51-19    and Safety Code.
51-20          (b)  An offense under Subsection (a)  is a Class C
51-21    misdemeanor.
51-22          (c)  If it is shown on a trial of the defendant that the
51-23    defendant has been convicted of an offense under Subsection (a)
51-24    within a year before the date on which the offense being tried
51-25    occurred, the subsequent offense under Subsection (a) is a Class B
51-26    misdemeanor.
51-27          (d)  Each day of a continuing violation is a separate
 52-1    offense.
 52-2          SECTION 56.  Section 341.048, Health and Safety Code, is
 52-3    amended to read as follows:
 52-4          Sec. 341.048.  VIOLATION [CIVIL ENFORCEMENT].  [(a)] A person
 52-5    may not cause, suffer, allow, or permit a violation of this
 52-6    subchapter or a rule or order adopted under this subchapter.
 52-7          [(b)  A person who causes, suffers, allows, or permits a
 52-8    violation under this subchapter shall be assessed a civil penalty
 52-9    of not less than $50 nor more than $1,000 for each violation.  Each
52-10    day of a continuing violation is a separate violation.]
52-11          [(c)  If it appears that a person has violated, is violating,
52-12    or threatens to violate a provision under this subchapter, the
52-13    commission, a county, or a municipality may institute a civil suit
52-14    in a district court for:]
52-15                [(1)  injunctive relief to restrain the person from
52-16    continuing the violation or threat of violation;]
52-17                [(2)  the assessment and recovery of a civil penalty;
52-18    or]
52-19                [(3)  both injunctive relief and a civil penalty.]
52-20          [(d)  The commission is a necessary and indispensable party
52-21    in a suit brought by a county or municipality under this section.]
52-22          [(e)  On the commission's request, the attorney general shall
52-23    institute a suit in the name of the state for injunctive relief, to
52-24    recover a civil penalty, or for both injunctive relief and civil
52-25    penalty.]
52-26          [(f)  The suit may be brought in:]
52-27                [(1)  Travis County;]
 53-1                [(2)  the county in which the defendant resides; or]
 53-2                [(3)  the county in which the violation or threat of
 53-3    violation occurs.]
 53-4          [(g)  In a suit under this section to enjoin a violation or
 53-5    threat of violation of this subchapter, the court shall grant the
 53-6    state, county, or municipality, without bond or other undertaking,
 53-7    any injunction that the facts may warrant including temporary
 53-8    restraining orders, temporary injunctions after notice and hearing,
 53-9    and permanent injunctions.]
53-10          [(h)  Civil penalties recovered in a suit brought under this
53-11    section by a county or municipality shall be equally divided
53-12    between:]
53-13                [(1)  the state; and]
53-14                [(2)  the county or municipality that first brought the
53-15    suit.]
53-16          SECTION 57.  Section 341.0485(c), Health and Safety Code, is
53-17    amended to read as follows:
53-18          (c)  The comptroller shall manage the account for the benefit
53-19    of the commission and shall invest the money and deposit interest
53-20    and other investment proceeds in the account.  The comptroller
53-21    shall release money from the account in the manner provided by the
53-22    commission.  Money in the account may be used only for:
53-23                (1)  capital improvements to the water or sewer system
53-24    of a utility that has paid fines or penalties under this chapter or
53-25    under Chapter 13, Water Code, that have been deposited in the
53-26    account; or
53-27                (2)  capital improvements and operating and maintenance
 54-1    expenses for a utility placed in receivership or under a temporary
 54-2    manager under Section 7.404 [13.4132], Water Code.
 54-3          SECTION 58.  The heading to Section 44.901, Education Code,
 54-4    is amended to read as follows:
 54-5          Sec. 44.901.  ENERGY OR WATER CONSERVATION MEASURES
 54-6          SECTION 59.  Sections 44.901(a)-(f), Education Code, are
 54-7    amended to read as follows:
 54-8          (a)  The board of trustees of a school district may enter
 54-9    into a contract for energy or water conservation measures to reduce
54-10    energy or water consumption or operating costs of school facilities
54-11    in accordance with this section.
54-12          (b)  A contract to which this section applies includes a
54-13    contract for the installation of:
54-14                (1)  insulation of the building structures and systems
54-15    within the building;
54-16                (2)  storm windows or doors, caulking or
54-17    weatherstripping, multiglazed windows or doors, heat absorbing or
54-18    heat reflective glazed and coated window or door systems, or other
54-19    window or door system modifications that reduce energy consumption;
54-20                (3)  automatic energy control systems, including
54-21    computer software and technical data licenses;
54-22                (4)  heating, ventilating, or air-conditioning system
54-23    modifications or replacements that reduce energy or water
54-24    consumption;
54-25                (5)  lighting fixtures that increase energy efficiency;
54-26                (6)  energy recovery systems;
54-27                (7)  electric systems improvements; [or]
 55-1                (8)  water-conserving landscape irrigation equipment;
 55-2                (9)  water-saving plumbing fixtures, appliances, or
 55-3    equipment;
 55-4                (10)  water reuse, rainwater harvesting, or other
 55-5    alternative water source technologies for landscape irrigation,
 55-6    toilet and urinal flushing, or other purposes;
 55-7                (11)  substitution of non-water-using fixtures,
 55-8    appliances, equipment, or practices for water-using fixtures,
 55-9    appliances, equipment, or practices, if feasible; or
55-10                (12)  other energy or water conservation-related
55-11    improvements or equipment (including improvements or equipment
55-12    relating to renewable energy).
55-13          (c)  All energy or water conservation measures must comply
55-14    with current local, state, and federal construction and
55-15    environmental codes and regulations.  Notwithstanding anything to
55-16    the contrary in Subsection (b), a contract for energy or water
55-17    conservation measures shall not include improvements or equipment
55-18    that allow or cause water from any condensing, cooling, or
55-19    industrial process or any system of nonpotable usage over which the
55-20    public water supply system officials do not have sanitary
55-21    control[,] to be returned to the potable water supply.
55-22          (d)  The person with whom the board contracts must be
55-23    experienced in the design, implementation, and installation of the
55-24    energy or water conservation measures addressed by the contract.
55-25    Section 19, The Texas Engineering Practice Act (Article 3271a,
55-26    Vernon's Texas Civil Statutes), applies to work performed under the
55-27    contract.
 56-1          (e)  Before entering into a contract for energy or water
 56-2    conservation measures, the board shall require the provider of the
 56-3    energy or water conservation measures to file with the board a
 56-4    payment and performance bond relating to the installation of energy
 56-5    or water conservation measures that is in an amount the board finds
 56-6    reasonable and necessary to protect the interests of the school
 56-7    district and that may also cover the value of the guaranteed
 56-8    savings on the contract and is conditioned on the faithful
 56-9    execution of the terms of the contract.
56-10          (f)  A contract for energy or water conservation measures,
56-11    with respect to existing buildings or facilities, may be a
56-12    lease/purchase contract, with a term not to exceed 10 years, that
56-13    meets federal tax requirements for tax-free municipal leasing or
56-14    long-term financing.  The contract shall contain provisions
56-15    pursuant to which the provider of the energy or water conservation
56-16    measures guarantees the amount of the savings to be realized by the
56-17    school district under the contract.  If the term of a contract for
56-18    energy or water conservation measures exceeds one year, the school
56-19    district's contractual obligations in any one year during the term
56-20    of the contract may not exceed the total energy or water and
56-21    operating cost savings, including but not limited to electrical,
56-22    gas, water, or other utility cost savings and operating cost
56-23    savings resulting from automatic monitoring and control as
56-24    determined by the school district in this subsection, divided by
56-25    the number of years in the contract term.
56-26          SECTION 60.  Section 51.927, Education Code, as amended by
56-27    Chapters 627 and 1142, Acts of the 75th Legislature, Regular
 57-1    Session, 1997, is reenacted and amended to read as follows:
 57-2          Sec. 51.927.  ENERGY OR WATER CONSERVATION MEASURES.  (a)
 57-3    The governing board of an institution of higher education may enter
 57-4    into a contract for energy or water conservation measures to reduce
 57-5    energy or water consumption or operating costs of institutional
 57-6    facilities in accordance with this section.
 57-7          (b)  A contract to which this section applies includes a
 57-8    contract for the installation of:
 57-9                (1)  insulation of a building structure and systems
57-10    within a building;
57-11                (2)  storm windows of doors, caulking or weather
57-12    stripping, multiglazed windows or doors, heat-absorbing or
57-13    heat-reflective glazed and coated window or door systems, or other
57-14    window or door system modifications that reduce energy consumption;
57-15                (3)  automatic energy control systems, including
57-16    computer software and technical data licenses;
57-17                (4)  heating, ventilating, or air conditioning system
57-18    modifications or replacements that reduce energy or water
57-19    consumption;
57-20                (5)  lighting fixtures that increase energy efficiency;
57-21                (6)  energy recovery systems;
57-22                (7)  electric systems improvements; [or]
57-23                (8)  water-conserving landscape irrigation equipment;
57-24                (9)  water-saving plumbing fixtures, appliances, or
57-25    equipment;
57-26                (10)  water reuse, rainwater harvesting, or other
57-27    alternative water source technologies for landscape irrigation,
 58-1    toilet and urinal flushing, or other purposes;
 58-2                (11)  substitution of non-water-using fixtures,
 58-3    appliances, equipment, or practices for water-using fixtures,
 58-4    appliances, equipment, or practices, if feasible; or
 58-5                (12)  other energy or water conservation-related
 58-6    improvements or equipment (including improvements or equipment
 58-7    related to renewable energy).
 58-8          (c)  All energy or water conservation measures must comply
 58-9    with current local, state, and federal construction and
58-10    environmental codes and regulations.  Notwithstanding anything to
58-11    the contrary in Subsection (b), a contract for energy or water
58-12    conservation measures shall not include improvements or equipment
58-13    that allow or cause water from any condensing, cooling, or
58-14    industrial process or any system of nonpotable usage over which the
58-15    public water supply system officials do not have sanitary
58-16    control[,] to be returned to the potable water supply.
58-17          (d)  The entity with whom the board contracts must be
58-18    experienced in the design, implementation, and installation of the
58-19    energy or water conservation measures addressed by the contract.
58-20    Section 19, The Texas Engineering Practice Act (Article 3271a,
58-21    Vernon's Texas Civil Statutes), applies to work performed under the
58-22    contract.
58-23          (e)  Before entering into a contract for energy or water
58-24    conservation measures, the board shall require the provider of the
58-25    energy or water conservation measures to file with the board a
58-26    payment and performance bond that is in an amount the board finds
58-27    reasonable and necessary to protect the interests of the
 59-1    institution and is conditioned on the faithful execution of the
 59-2    terms of the contract.
 59-3          (f)  The board may enter into a contract for a period of more
 59-4    than one year for energy or water conservation measures with an
 59-5    entity if the board finds that the amount the institution would
 59-6    spend on the energy or water conservation measures will not exceed
 59-7    the amount to be saved in energy or water and operating costs over
 59-8    10 years from the date of installation.  If the term of a contract
 59-9    for energy or water conservation measures exceeds one year, the
59-10    board's contractual obligation in any year during the term of the
59-11    contract beginning after the final date of installation may not
59-12    exceed the total energy or water and operating cost savings,
59-13    including but not limited to electrical, gas, water, or other
59-14    utility cost savings and operating cost savings resulting from
59-15    automatic monitoring and control, as determined by the board in
59-16    this subsection, divided by the number of years in the contract
59-17    term beginning after the final date of installation.  The board
59-18    shall consider all costs of the energy or water conservation
59-19    measures, including costs of design, engineering, installation,
59-20    maintenance, repairs, and debt service.
59-21          (g)  A contract for energy or water conservation measures may
59-22    be a lease/purchase contract, with a term not to exceed 10 years
59-23    after the final date of installation, that meets federal tax
59-24    requirements for tax-free municipal leasing or long-term financing.
59-25    The contract shall contain provisions pursuant to which the
59-26    provider of the energy or water conservation measures guarantees
59-27    the amount of the savings to be realized by the institution of
 60-1    higher education under the contract.  The Master Equipment Lease
 60-2    Purchase Program operated by the Texas Public Finance Authority may
 60-3    be utilized by an institution to fund a contract for energy or
 60-4    water conservation measures so long as the costs of the energy or
 60-5    water conservation measures, including costs of design,
 60-6    engineering, installation, maintenance, repairs, and anticipated
 60-7    debt service requirements of the Master Equipment Lease Purchase
 60-8    Program, do not exceed the total energy or water and operating cost
 60-9    savings, as described in Subsection (f) [(e)], beginning after the
60-10    final date of installation.
60-11          (h)  A contract under this section may be let under
60-12    competitive sealed proposal procedures.  Notice of the request for
60-13    proposals shall be given in the manner provided for in Chapter
60-14    2156, Government Code. The Texas Higher Education Coordinating
60-15    Board, in consultation with the State Energy Conservation Office
60-16    and the Texas Energy Coordination Council with regard to energy
60-17    conservation measures and the Texas Water Development Board with
60-18    regard to water conservation measures, shall establish guidelines
60-19    and an approval process for contracts awarded under this section.
60-20    The guidelines must require that the cost savings projected by
60-21    offerors be reviewed by a licensed professional engineer selected
60-22    by the board who is not an officer or employee of an offeror or
60-23    otherwise associated with a proposed contract.  A contract is not
60-24    required to be reviewed or approved by the [The] State Energy
60-25    Conservation Office, [and] the Texas Energy Coordination Council,
60-26    or the Texas Water Development Board [shall review the selected
60-27    proposal before a contract is awarded.  The State Energy
 61-1    Conservation Office may provide a cost-benefit analysis of the
 61-2    proposals and an analysis of the guaranteed savings projected by
 61-3    offerors and may charge a fee for this service].  The contract
 61-4    shall be awarded to the responsible offeror whose proposal,
 61-5    following negotiations, is determined by the institution to be the
 61-6    most advantageous to the institution considering the guaranteed
 61-7    savings and other evaluation factors set forth in the request for
 61-8    proposals, except that if the institution finds that no offer is
 61-9    acceptable, it shall refuse all offers.
61-10          (i)  In accordance with regulations adopted by the
61-11    institution, the institution may conduct discussions with offerors
61-12    who submit proposals and who are determined to be reasonably
61-13    qualified for the award of the contract.  Offerors shall be treated
61-14    fairly and equally with respect to any opportunity for discussion
61-15    and revision of proposals.  To obtain the best final offers, the
61-16    institution may allow proposal revisions after submissions and
61-17    before the award of the contract.
61-18          (j)  If provided in a request for proposals under Subsection
61-19    (h) [(g) of this section], proposals shall be opened in a manner
61-20    that avoids disclosure of the contents to competing offerors and
61-21    keeps the proposals secret during negotiations.  All proposals are
61-22    open for public inspection after a contract is awarded unless the
61-23    information is excepted from disclosure under Chapter 552,
61-24    Government Code.
61-25          (k)  The legislature shall base an institution's
61-26    appropriation for energy or water costs during a fiscal year on the
61-27    sum of:
 62-1                (1)  the institution's estimated energy or water costs
 62-2    for that fiscal year; and
 62-3                (2)  if a contract under this section is in effect, the
 62-4    institution's estimated net savings resulting from the contract
 62-5    during the contract term, divided by the number of years in the
 62-6    contract term.
 62-7          SECTION 61.  The heading to Section 2166.406, Government
 62-8    Code, is amended to read as follows:
 62-9          Sec. 2166.406.  ENERGY OR WATER CONSERVATION MEASURES
62-10          SECTION 62.  Sections 2166.406(a)-(h), (k), and (l),
62-11    Government Code, are amended to read as follows:
62-12          (a)  Notwithstanding any other provisions of this chapter,
62-13    the governing body of a state agency, without the consent of the
62-14    commission, may enter into a contract for energy or water
62-15    conservation measures to reduce energy or water consumption or
62-16    operating costs of governmental facilities in accordance with this
62-17    section.
62-18          (b)  A contract authorized under this chapter includes a
62-19    contract for the installation of:
62-20                (1)  insulation of the building structure and systems
62-21    within the building;
62-22                (2)  storm windows or doors, caulking or weather
62-23    stripping, multiglazed windows or doors, heat absorbing or heat
62-24    reflective glazed and coated window or door systems, or other
62-25    window or door system modifications that reduce energy consumption;
62-26                (3)  automatic energy control systems, including
62-27    computer software and technical data licenses;
 63-1                (4)  heating, ventilating, or air-conditioning system
 63-2    modifications or replacements that reduce energy or water
 63-3    consumption;
 63-4                (5)  lighting fixtures that increase energy efficiency;
 63-5                (6)  energy recovery systems;
 63-6                (7)  electric systems improvements; [or]
 63-7                (8)  water-conserving landscape irrigation equipment;
 63-8                (9)  water-saving plumbing fixtures, appliances, or
 63-9    equipment;
63-10                (10)  water reuse, rainwater harvesting, or other
63-11    alternative water source technologies for landscape irrigation,
63-12    toilet and urinal flushing, or other purposes;
63-13                (11)  substitution of non-water-using fixtures,
63-14    appliances, equipment, or practices for water-using fixtures,
63-15    appliances, equipment, or practices, if feasible; or
63-16                (12)  other energy or water conservation-related
63-17    improvements or equipment (including improvements or equipment
63-18    related to renewable energy).
63-19          (c)  All energy or water conservation measures must comply
63-20    with current local, state, and federal construction and
63-21    environmental codes and regulations.  Notwithstanding anything to
63-22    the contrary in Subsection (b), a contract for energy or water
63-23    conservation measures shall not include improvements or equipment
63-24    that allow or cause water from any condensing, cooling, or
63-25    industrial process or any system of nonpotable usage over which the
63-26    public water supply system officials do not have sanitary control
63-27    to be returned to the potable water supply.
 64-1          (d)  The entity with whom the board contracts must be
 64-2    experienced in the design, implementation, and installation of the
 64-3    energy or water conservation measures addressed by the contract.
 64-4    Section 19, The Texas Engineering Practice Act (Article 3271a,
 64-5    Vernon's Texas Civil Statutes), applies to work performed under the
 64-6    contract.
 64-7          (e)  Before entering into a contract for energy or water
 64-8    conservation measures, the governing body of the state agency shall
 64-9    require the provider of the energy or water conservation measures
64-10    to file with the governing body a payment and performance bond that
64-11    is in an amount the governing body finds reasonable and necessary
64-12    to protect the interests of the state agency and that is
64-13    conditioned on the faithful execution of the terms of the contract.
64-14          (f)  The state agency may enter into a contract for a period
64-15    of more than one year for energy or water conservation measures
64-16    with an entity if the state agency finds that the amount the state
64-17    agency would spend on the energy or water conservation measures
64-18    will not exceed the amount to be saved in energy or water and
64-19    operating costs over 10 years from the date of installation.
64-20          (g)  A contract for energy or water conservation measures,
64-21    with respect to existing buildings or facilities, may be a
64-22    lease/purchase contract with a term not to exceed 10 years, that
64-23    meets federal tax requirements for tax-free municipal leasing or
64-24    long-term financing.  The contract shall contain provisions
64-25    pursuant to which the provider of the energy or water conservation
64-26    measures guarantees the amount of the savings to be realized by the
64-27    state agency under the contract.  If the term of a contract for
 65-1    energy or water conservation measures exceeds one year, the
 65-2    agency's contractual obligation in any year during the term of the
 65-3    contract may not exceed the total energy or water and operating
 65-4    cost savings, including but not limited to electrical, gas, water,
 65-5    or other utility cost savings and operating cost savings resulting
 65-6    from automatic monitoring and control, as determined by the state
 65-7    agency in this subsection, divided by the number of years in the
 65-8    contract term.
 65-9          (h)  A contract under this chapter may be let under
65-10    competitive sealed proposal procedures.  Notice of the request for
65-11    proposals shall be given in the manner provided for in Chapter
65-12    2156, Government Code.  A contract must comply with the guidelines
65-13    established under Section 51.927(h), Education Code.  The cost
65-14    savings projected by offerors must be reviewed by a licensed
65-15    professional engineer selected by the governing body of the state
65-16    agency having charge and control of the building and facility who
65-17    is not an officer or employee of an offeror or otherwise associated
65-18    with a proposed contract.  A contract is not required to be
65-19    reviewed or approved by the State Energy Conservation Office, the
65-20    Texas Energy Coordination Council, or the Texas Water Development
65-21    Board  [Before awarding the contract, the state agency shall submit
65-22    the selected proposal to the State Energy Conservation Office and
65-23    the Texas Energy Coordination Council for review and comment before
65-24    awarding the contract.  The State Energy Conservation Office and
65-25    the Texas Energy Coordination Council will provide a cost-benefit
65-26    analysis of the proposals and an analysis of the guaranteed savings
65-27    projected by offerors and may charge a fee for this service].  The
 66-1    contract shall be awarded to the responsible offeror whose
 66-2    proposal, following negotiations, is determined to be the most
 66-3    advantageous to the state agency considering the savings and other
 66-4    evaluation factors set forth in the request for proposals except
 66-5    that if the state agency finds that no offer is acceptable, it
 66-6    shall refuse all offers.
 66-7          (k)  To obtain the best final offers, the state agency may
 66-8    allow proposal revisions after submissions and before the award of
 66-9    the contract.  Final review and approval of a [the] contract for
66-10    energy conservation measures will be provided by the State Energy
66-11    Conservation Office.
66-12          (l)  The legislature shall base an agency's appropriation for
66-13    energy or water costs during a fiscal year on the sum of:
66-14                (1)  the agency's estimated energy or water costs for
66-15    that fiscal year; and
66-16                (2)  if a contract under this section is in effect, the
66-17    agency's estimated net savings resulting from the contract during
66-18    the contract term, divided by the number of years in the contract
66-19    term.
66-20          SECTION 63.  (a)  Sections 11.082, 11.0841, 11.0842, 11.148,
66-21    13.411, 13.4133, 13.4151, 13.416, 13.417, and 13.418, Water Code,
66-22    are repealed.
66-23          (b)  Sections 341.049 and 341.050, Health and Safety Code,
66-24    are repealed.
66-25          SECTION 64.  This Act takes effect September 1, 1999.
66-26          SECTION 65.  (a)  The changes in law made by this Act apply
66-27    only to an offense committed or a violation or threat of violation
 67-1    that occurs on or after September 1, 1999.  For purposes of this
 67-2    section an offense is committed and a violation or threat of
 67-3    violation occurs before September 1, 1999, if any element of the
 67-4    offense, violation, or threat of violation occurs before that date.
 67-5          (b)  An offense committed or a violation or threat of
 67-6    violation that occurred before September 1, 1999, is covered by the
 67-7    law in effect when the offense was committed or the violation or
 67-8    threat of violation occurred, and the former law is continued in
 67-9    effect for that purpose.
67-10          (c)  The change in law made by Section 15.102(b), Water Code,
67-11    as amended by this Act, applies only to an application for a grant
67-12    from the water loan assistance fund that is filed on or after the
67-13    effective date of this Act.  A grant application that is filed
67-14    before the effective date of this Act is governed by the law in
67-15    effect immediately before the effective date of this Act, and that
67-16    law is continued in effect for that purpose.
67-17          (d)  The changes in law made by Sections 16.053(m)-(o), Water
67-18    Code, as added by this Act, apply only to a cause of action that
67-19    accrues on or after the effective date of this Act.  A cause of
67-20    action that accrued before the effective date of this Act is
67-21    governed by the law in effect on the date the cause of action
67-22    accrued, and that law is continued in effect for that purpose.
67-23          (e)  The changes in law made by Sections 17.871 and 17.895,
67-24    Water Code, as amended by this Act, and Section 17.8955, Water
67-25    Code, as added by this Act, apply only to a conservation loan for
67-26    which an application is filed on or after the effective date of
67-27    this Act.  A conservation loan for which an application was filed
 68-1    before the effective date of this Act is governed by the law in
 68-2    effect immediately before the effective date of this Act, and that
 68-3    law is continued in effect for that purpose.
 68-4          SECTION 66.  The importance of this legislation and the
 68-5    crowded condition of the calendars in both houses create an
 68-6    emergency and an imperative public necessity that the
 68-7    constitutional rule requiring bills to be read on three several
 68-8    days in each house be suspended, and this rule is hereby suspended.