By Brown                                              S.B. No. 1311
         76R3732 MI-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the development and management of water resources.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 5.504(a), Water Code, is amended to read
 1-5     as follows:
 1-6           (a)  If the commission, the executive director, or the
 1-7     executive director's representative issues an emergency order under
 1-8     this subchapter without a hearing, the order shall set a time and
 1-9     place for a hearing to affirm, modify, or set aside the emergency
1-10     order to be held before the commission or its designee as soon as
1-11     practicable after the order is issued.  If the emergency order is
1-12     issued under Section 5.517 or 5.518, the order shall set a time for
1-13     the hearing not later than the 20th day after the date the
1-14     emergency order is issued.
1-15           SECTION 2.  Subchapter L, Chapter 5, Water Code, is amended
1-16     by adding Sections 5.517, 5.518, 5.519, and 5.520 to read as
1-17     follows:
1-18           Sec. 5.517.  EMERGENCY PERMIT TO DIVERT AND USE WATER;
1-19     AMENDMENT TO WATER RIGHT.  (a)  Except as provided by Section 5.506
1-20     and after notification to the governor, the commission by emergency
1-21     order may issue a permit to divert and use water or amend an
1-22     existing permit, certified filing, or certificate of adjudication
1-23     for an initial period not to exceed 120 days if the commission
1-24     finds that:
 2-1                 (1)  emergency conditions exist that present an
 2-2     imminent threat to the public health, safety, and welfare or the
 2-3     environment and that override the necessity to comply with
 2-4     established statutory procedures; and
 2-5                 (2)  there is no feasible practicable alternative to
 2-6     the emergency authorization.  The emergency authorization may be
 2-7     renewed once for a period not to exceed 60 days.
 2-8           (b)  The executive director may issue an emergency order if
 2-9     an imminent threat to the public health, safety, and welfare or the
2-10     environment exists that requires emergency action before the
2-11     commission can take action under Subsection (a) and there is no
2-12     feasible alternative.  If the executive director issues an
2-13     emergency order under this subsection, the commission shall hold a
2-14     hearing as provided for in Section 5.504 as soon as practicable but
2-15     not later than 10 days after issuance of the order to affirm,
2-16     modify, or set aside the order. The person desiring the emergency
2-17     order must comply with Section 5.502 before the executive director
2-18     may act on the request for emergency action.
2-19           (c)  The notice requirements of Section 11.132 relating to
2-20     the time for notice, newspaper notice, and method of giving a
2-21     person notice do not apply to a hearing held on an application for
2-22     an emergency order under this section.  The commission shall give
2-23     the general notice of the hearing that the commission considers
2-24     practicable under the circumstances.
2-25           (d)  The commission may adopt rules and impose fees necessary
2-26     to carry out the provisions of this section.
2-27           (e)  An emergency order under this section does not vest in
 3-1     the grantee any right to the diversion, impoundment, or use of
 3-2     water and expires by its terms.
 3-3           Sec. 5.518.  EMERGENCY ORDER FOR TEMPORARY TRANSFER OF USE OF
 3-4     WATER RIGHT.  (a)  The commission by emergency order may grant the
 3-5     temporary transfer and use of all or part of a surface water right
 3-6     for other than domestic or municipal use to a retail or wholesale
 3-7     water supplier for public health and safety purposes.
 3-8           (b)  The commission may direct the applicant to timely pay
 3-9     the amounts for which the applicant may be potentially liable under
3-10     this section and to fully indemnify and hold harmless the state,
3-11     the executive director, and the commission from any and all
3-12     liability for the order sought. The commission may order bond or
3-13     other surety in a form acceptable to the commission as a condition
3-14     for an emergency order under this section.  The commission may not
3-15     grant an emergency authorization under this section that would
3-16     cause a violation of a federal regulation.
3-17           (c)  A person granted an emergency order under this section
3-18     is liable to the owner from whom the use is transferred for the
3-19     fair market value of the water transferred and for any damages
3-20     proximately caused by the transfer of use.  If, within 60 days of
3-21     the termination of the order, the parties do not agree on the
3-22     amount due, or if full payment is not made, either party may file a
3-23     complaint with the commission to determine the amount due.
3-24           (d)  The commission by rule shall establish a dispute
3-25     resolution procedure for a complaint filed under this section.
3-26     After exhausting all administrative remedies under this section, an
3-27     owner from whom the use is transferred may file suit to recover or
 4-1     determine the amount due in a district court in the county where
 4-2     the owner resides or has its headquarters.  The prevailing party in
 4-3     a suit filed under this subsection is entitled to recover court
 4-4     costs and reasonable attorney's fees.
 4-5           Sec. 5.519.  EMERGENCY WORKS SAFETY ORDER.  The commission
 4-6     may issue a mandatory or prohibitory emergency order directing the
 4-7     owner of a dam, levee, or other water-storage or flood-control work
 4-8     to repair, modify, maintain, dewater, or remove a work if the
 4-9     commission finds that:
4-10                 (1)  the existing condition of the work is causing or
4-11     will cause extensive or severe property damage or economic loss to
4-12     others or is posing an immediate and serious threat to human life
4-13     or health; and
4-14                 (2)  other procedures available to the commission to
4-15     remedy or prevent the occurrence will result in unreasonable delay.
4-16           Sec. 5.520.  EMERGENCY ORDER FOR OPERATION OF UTILITY THAT
4-17     DISCONTINUES OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER.
4-18     The commission may issue an emergency order appointing a willing
4-19     person to temporarily manage and operate a utility under Section
4-20     7.403.  Notice of the action is adequate if the notice is mailed or
4-21     hand delivered to the last known address of the utility's
4-22     headquarters.
4-23           SECTION 3.  Section 7.004, Water Code, is amended to read as
4-24     follows:
4-25           Sec. 7.004.  REMEDIES CUMULATIVE.  The remedies under this
4-26     chapter are cumulative of all other remedies.  Nothing in this
4-27     chapter affects the right of a private corporation, [or]
 5-1     individual, or political subdivision that has a justiciable
 5-2     interest to pursue any available common law remedy to enforce a
 5-3     right, to abate a condition of pollution or other nuisance, to
 5-4     recover damages to enforce a right, or to prevent or seek redress
 5-5     or compensation for the violation of a right or otherwise redress
 5-6     an injury.
 5-7           SECTION 4.  Subchapter B, Chapter 7, Water Code, is amended
 5-8     by adding Section 7.034 to read as  follows:
 5-9           Sec. 7.034.  ATTORNEY'S FEES; COSTS.  A district court may
5-10     award the costs of litigation, including reasonable attorney's fees
5-11     and expert costs, to any political subdivision of the state,
5-12     private corporation, or individual that is a water right holder and
5-13     that prevails in a suit for injunctive relief to redress an
5-14     unauthorized diversion, impoundment, or use of surface water in
5-15     violation of Chapter 11 or a rule adopted under Chapter 11.
5-16           SECTION 5.  Section 7.051(b), Water Code, is amended to read
5-17     as follows:
5-18           (b)  Except as provided by this subsection, this [This]
5-19     subchapter does not apply to violations of Chapter [11,] 12, 13,
5-20     16, or 36 [of this code, or Chapter 341, Health and Safety Code].
5-21     This subchapter does apply to Section 16.236.
5-22           SECTION 6.  Section 7.052, Water Code, is amended to read as
5-23     follows:
5-24           Sec. 7.052.  MAXIMUM PENALTY.   (a)  The amount of the
5-25     penalty for a violation of Chapter 18, 32, 33, or 34 of this code
5-26     or Chapter 366, 371, or 372, Health and Safety Code, may not exceed
5-27     $2,500 a day for each violation.
 6-1           (b)  The amount of the penalty for a violation under Chapter
 6-2     11 described by Section 11.082 or 11.0842 may not exceed $5,000  a
 6-3     day for each  violation.
 6-4           (c)  The penalty for a violation of a rule or order adopted
 6-5     under Section 16.236 may not exceed $1,000 a day for each
 6-6     violation.
 6-7           (d)  The amount of the penalty for a violation under Chapter
 6-8     341, Health and Safety Code, may not be less than $50 or more than
 6-9     $1,000 for each violation.
6-10           (e)  The amount of the penalty for all other violations
6-11     within the jurisdiction of the commission to enforce may not exceed
6-12     $10,000 a day  for each violation.
6-13           (f) [(c)]  Each day that a continuing violation occurs may be
6-14     considered a separate violation.  The commission may authorize an
6-15     installment  payment schedule for an administrative penalty
6-16     assessed under this subchapter, except for an administrative
6-17     penalty assessed under Section 7.057 or assessed after a hearing
6-18     under Section 7.058.
6-19           SECTION 7.  Section 7.054, Water Code, is amended to read as
6-20     follows:
6-21           Sec. 7.054.  REPORT OF VIOLATION.  (a)  If, after examination
6-22     of a possible violation and the facts surrounding that possible
6-23     violation, the executive director concludes that a violation has
6-24     occurred, the executive director may issue a preliminary report in
6-25     accordance with commission rules that includes recommendations
6-26     regarding any penalty or corrective action.
6-27           (b)  A report regarding a possible violation under Chapter 11
 7-1     must state the facts on which the conclusion was based and
 7-2     recommend the amount of any penalty.  The executive director shall
 7-3     base the recommended amount of the proposed penalty on the factors
 7-4     provided by Section 7.053 and shall analyze each factor for the
 7-5     benefit of the commission.
 7-6           SECTION 8.  Section 7.069, Water Code, is amended to read as
 7-7     follows:
 7-8           Sec. 7.069.  DISPOSITION OF PENALTY.  (a)  Except as provided
 7-9     by Subsection (b), a [A] penalty collected under this subchapter
7-10     shall be  deposited to the credit of the general revenue fund.
7-11           (b)  A penalty collected under this subchapter from a public
7-12     utility shall be paid to the commission and deposited in the water
7-13     utility improvement account as provided by Section 341.0485, Health
7-14     and Safety Code.
7-15           SECTION 9.  Subchapter B, Chapter 7, Water Code, is amended
7-16     by adding Section 7.076 to read as follows:
7-17           Sec. 7.076.  COMPROMISE, MODIFICATION, OR REMISSION OF
7-18     CERTAIN PENALTIES.  Notwithstanding any other provision to the
7-19     contrary, the commission may compromise, modify, or remit, with or
7-20     without condition, any penalty imposed under this subchapter for a
7-21     violation under Chapter 11.
7-22           SECTION 10.  Section 7.102, Water Code, is amended to read as
7-23     follows:
7-24           Sec. 7.102.  MAXIMUM PENALTY.   (a)  A person who causes,
7-25     suffers, allows, or permits a violation of a statute, rule, order,
7-26     or permit relating to Chapter 11, 18, 32, 33, or 34 of this code or
7-27     Chapter 366, 371, or 372, Health and Safety Code, shall be assessed
 8-1     for each violation a civil penalty not less than $50 nor greater
 8-2     than $5,000 for each day of each violation as the court or jury
 8-3     considers proper.
 8-4           (b)  The amount of a penalty for a violation of a rule or
 8-5     order issued by the commission under Section 12.052 may not exceed
 8-6     $5,000.
 8-7           (c)  A person who causes, suffers, allows, or permits a
 8-8     violation of a statute, rule, order, or permit relating to Chapter
 8-9     13 shall be assessed for each violation a civil penalty not less
8-10     than $100 nor greater than $5,000 for each day of each violation as
8-11     the court or jury considers proper.
8-12           (d)  A person who causes, suffers, allows, or permits a
8-13     violation of a statute, rule, order, or permit relating to any
8-14     other matter  within the commission's jurisdiction to enforce,
8-15     other than violations of Chapter [11,] 12, [13,] 16, or 36 of this
8-16     code, or Chapter 341, Health and Safety Code, shall be assessed for
8-17     each violation a civil penalty not less than $50 nor greater than
8-18     $25,000 for each day of each violation as the court or jury
8-19     considers proper.
8-20           (e)  Each day of a continuing violation is a separate
8-21     violation.
8-22           SECTION 11.  Sections 7.105(a) and (c), Water Code, are
8-23     amended to read as follows:
8-24           (a)  On the request of the executive director or the
8-25     commission, the attorney general shall institute a suit in the name
8-26     of the state for injunctive relief under Section 7.032, to recover
8-27     a civil penalty, or for both injunctive relief and a civil penalty.
 9-1     The attorney general may initiate a suit for recovery of a penalty
 9-2     under this section for a violation under Section 13.414.
 9-3           (c)  Except as provided by this subsection, the [The] suit
 9-4     may be brought in Travis County, in the county in which the
 9-5     defendant resides, or in the county in which the violation or
 9-6     threat of violation occurs.  A suit to recover a penalty for a
 9-7     violation of a rule or order issued by the commission under Section
 9-8     12.052 may be brought in Travis County.
 9-9           SECTION 12.  Subchapter D, Chapter 7, Water Code, is amended
9-10     by adding Section 7.1075 to read as follows:
9-11           Sec. 7.1075.  DISPOSITION OF PENALTY COLLECTED FROM PUBLIC
9-12     UTILITY.  A penalty collected under this subchapter from a public
9-13     utility shall be  paid to the commission and deposited in the water
9-14     utility improvement account as provided by Section 341.0485, Health
9-15     and Safety Code.
9-16           SECTION 13.  Subchapter D, Chapter 7, Water Code, is amended
9-17     by adding Section 7.112 to read as follows:
9-18           Sec. 7.112.  LIMITATION ON SUIT FOR VIOLATION OF SECTION
9-19     11.082.  An action to collect the penalty provided by Section 7.102
9-20     for a violation of Section 11.082 must be brought within two years
9-21     from the date of the alleged violation.
9-22           SECTION 14.  Section 7.351, Water Code, is amended to read as
9-23     follows:
9-24           Sec. 7.351.  CIVIL SUITS.  If it appears that a violation or
9-25     threat of violation of Chapter 16, 26, 28, or 34 of this code or
9-26     Chapter 341, 361, 371, 372, or 382, Health and Safety Code, or a
9-27     provision of Chapter 401, Health and Safety Code, under the
 10-1    commission's jurisdiction or a rule adopted or an order or a permit
 10-2    issued under those chapters or provisions has occurred or is
 10-3    occurring in the jurisdiction of a local government, the local
 10-4    government or, in the case of a violation of Chapter 401, Health
 10-5    and Safety Code, a person affected as defined in that chapter, may
 10-6    institute a civil suit under Subchapter D in the same manner as the
 10-7    commission in a district court by its own attorney for the
 10-8    injunctive relief or civil penalty, or both, as authorized by this
 10-9    chapter against the person who committed, is committing, or is
10-10    threatening to commit the violation.
10-11          SECTION 15.  Section  11.0843, Water Code, is transferred to
10-12    Subchapter C, Chapter 7, Water Code, renumbered as Section 7.077,
10-13    and amended to read as follows:
10-14          Sec. 7.077 [11.0843].  FIELD CITATION.  (a)  Upon witnessing
10-15    a violation of Chapter 11 [this chapter] or a rule or order or a
10-16    water  right issued under Chapter 11 [this chapter], a watermaster
10-17    or the watermaster's deputy, as defined by commission rule, may
10-18    issue the alleged violator a field citation alleging that a
10-19    violation has occurred and providing the alleged violator the
10-20    option of either:
10-21                (1)  without admitting to or denying the alleged
10-22    violation, paying an administrative penalty in accordance with the
10-23    predetermined penalty amount established under Subsection (b) of
10-24    this section and taking remedial action as provided in the
10-25    citation; or
10-26                (2)  requesting a hearing on the alleged violation in
10-27    accordance with Section 7.058 [11.0842] of this code.
 11-1          (b)  By rule the commission shall establish penalty amounts
 11-2    corresponding to types of violations of Chapter 11 [this chapter]
 11-3    or rules or orders adopted or water rights issued under Chapter 11
 11-4    [this chapter].
 11-5          [(c)  A penalty collected under this section shall be
 11-6    deposited in the state treasury to the credit of the general
 11-7    revenue fund.]
 11-8          SECTION 16.  Section 11.085, Water Code, is amended by adding
 11-9    Subsection (w) to read as follows:
11-10          (w)  The requirements of this section apply to the transfer
11-11    of water from one river basin to another regardless of whether all
11-12    or any part of the water right, permit, certified filing, or
11-13    certificate of adjudication under which the water is authorized to
11-14    be used is also transferred.
11-15          SECTION 17.  Section 11.138(a), Water Code, is amended to
11-16    read as follows:
11-17          (a)  The commission may issue temporary permits for
11-18    beneficial purposes to the extent that they do not interfere with
11-19    or adversely affect prior appropriations or vested rights on the
11-20    stream from which water is to be diverted under such temporary
11-21    permit.  The commission may, by appropriate order, authorize any
11-22    member of the commission to approve and issue temporary permits
11-23    without notice and hearing if it appears to such issuing party that
11-24    sufficient water is available at the proposed point of diversion to
11-25    satisfy the requirements of the temporary permit as well as all
11-26    existing rights.  No temporary permit issued without notice and
11-27    hearing shall authorize more than 10 acre-feet of water, nor may it
 12-1    be for a term in excess of one year.  The commission by rule may
 12-2    authorize the beneficial use, without a permit, of not more than 25
 12-3    acre-feet of water, for a term not to exceed one year, if the
 12-4    diversion of water will not affect existing water right holders and
 12-5    the user of the water registers the use with the commission in the
 12-6    manner required by the commission.
 12-7          SECTION 18.  Section 11.139, Water Code, is amended to read
 12-8    as follows:
 12-9          Sec. 11.139.  EMERGENCY AUTHORIZATIONS.  [(a)] Except as
12-10    provided by Section 11.148 of this code, the commission may grant
12-11    an emergency permit, order, or amendment to an existing permit,
12-12    certified filing, or certificate of adjudication under Subchapter
12-13    L, Chapter 5 [after notice to the governor for an initial period of
12-14    not more  than 120 days if the commission finds that emergency
12-15    conditions exist which present an imminent threat to the public
12-16    health and safety and which override the necessity to comply with
12-17    established statutory procedures and there are no feasible
12-18    practicable alternatives to the emergency authorization.  Such
12-19    emergency action may be renewed once for not longer than 60 days].
12-20          [(b)  A person desiring to obtain an emergency authorization
12-21    under this section shall submit to the commission a sworn
12-22    application containing the following information:]
12-23                [(1)  a description of the condition of emergency
12-24    justifying the granting of the emergency authorization;]
12-25                [(2)  a statement setting forth facts which support the
12-26    findings required under this section;]
12-27                [(3)  an estimate of the dates on which the proposed
 13-1    authorization should begin and end;]
 13-2                [(4)  a description of the action sought and the
 13-3    activity proposed to be allowed, mandated, or prohibited; and]
 13-4                [(5)  any other statements or information required by
 13-5    the commission.]
 13-6          [(c)  If the commission finds the applicant's statement made
 13-7    under Subsection (b) of this section to be correct, the commission
 13-8    may grant emergency authorizations under this section without
 13-9    notice and hearing or with such notice and hearing as the
13-10    commission considers practicable under the circumstances.]
13-11          [(d)  If the commission grants an emergency authorization
13-12    under this section without a hearing, the authorization shall fix a
13-13    time and place for a hearing to be held before the commission.  The
13-14    hearing shall be held as soon after the emergency authorization is
13-15    granted as is practicable but not later than 20 days after the
13-16    emergency authorization is granted.]
13-17          [(e)  At the hearing, the commission shall affirm, modify, or
13-18    set aside the emergency authorization.  Any hearing on an emergency
13-19    authorization shall be conducted in accordance with Chapter 2001,
13-20    Government Code, and rules of the commission.]
13-21          [(f)  If an imminent threat to the public health and safety
13-22    exists which requires emergency action before the commission can
13-23    take action as provided by Subsections (a)  through (c) of this
13-24    section and there are no feasible alternatives, the executive
13-25    director may grant an emergency authorization after notice to the
13-26    governor.  If the executive director issues an emergency
13-27    authorization under this subsection, the commission shall hold a
 14-1    hearing as provided for in Subsections (d) and (e) of this section.
 14-2    The requirements of Subsection (b) of this section shall be
 14-3    satisfied by the applicant before action is taken by the executive
 14-4    director on the request for emergency authorization.]
 14-5          [(g)  The requirements of Section 11.132 of this code
 14-6    relating to the time for notice, newspaper notice, and method of
 14-7    giving a person notice do not apply to a hearing held on an
 14-8    application for an emergency authorization under this section, but
 14-9    such general notice of the hearing shall be given as the
14-10    commission, under Subsections (c) and (e) of this section,
14-11    considers practicable under the circumstances.]
14-12          [(h)  The commission may grant an emergency authorization
14-13    under this section for the temporary transfer and use of all or
14-14    part of a permit, certified filing, or certificate of adjudication
14-15    for other than domestic or municipal use to a retail or wholesale
14-16    water supplier for public health and safety purposes.  In addition
14-17    to the requirements contained in Subsection (b) of this section,
14-18    the commission may direct that the applicant will timely pay the
14-19    amounts for which the applicant may be potentially liable under
14-20    Subsection (j) of this section and to the extent authorized by law
14-21    will fully indemnify and hold harmless the state, the executive
14-22    director, and the commission from any and all liability for the
14-23    authorization sought.  The commission may order bond or other
14-24    surety in a form acceptable to the commission as a condition for
14-25    such emergency authorization.  The commission may not grant an
14-26    emergency authorization under this section which would cause a
14-27    violation of a federal regulation.]
 15-1          [(i)  In transferring the amount of water requested by the
 15-2    applicant, the executive director or the commission shall allocate
 15-3    the requested amount among two or more permits, certified filings,
 15-4    or certificates of adjudication for other than domestic or
 15-5    municipal use.]
 15-6          [(j)  The person granted an emergency authorization under
 15-7    Subsection (h) of this section is liable to the owner and the
 15-8    owner's agent or lessee from whom the use is transferred for the
 15-9    fair market value of the water transferred as well as for any
15-10    damages caused by the transfer of use.  If, within 60 days of the
15-11    termination of the authorization, the parties do not agree on the
15-12    amount due, or if full payment is not made, either party may file a
15-13    complaint with the commission to determine the amount due.  The
15-14    commission may use dispute resolution procedures for a complaint
15-15    filed under this subsection.  After exhausting all administrative
15-16    remedies under this subsection, an owner from whom the use is
15-17    transferred may file suit to recover or determine the amount due in
15-18    a district court in the county where the owner resides or has its
15-19    headquarters.  The prevailing party in a suit filed under this
15-20    subsection is entitled to recover court costs and reasonable
15-21    attorney's fees.]
15-22          [(k)  The commission may prescribe rules and adopt fees which
15-23    are necessary to carry out the provisions of this section.]
15-24          [(l)  An emergency authorization does not vest in the grantee
15-25    any right to the diversion, impoundment, or use of water and shall
15-26    expire and be cancelled in accordance with its terms.]
15-27          SECTION 19.  Section 11.173(b), Water Code, is amended to
 16-1    read as follows:
 16-2          (b)  A permit, certified filing, or certificate of
 16-3    adjudication or a portion of a permit, certified filing, or
 16-4    certificate of adjudication is exempt from cancellation under
 16-5    Subsection (a)  of this section:
 16-6                (1)  to the extent of the owner's participation in the
 16-7    Conservation Reserve Program authorized by the Food Security Act,
 16-8    Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985)
 16-9    or a similar governmental program;  [or]
16-10                (2)  if any portion of the water authorized to be used
16-11    pursuant to a permit, certified filing, or certificate of
16-12    adjudication has been used in accordance with a regional water plan
16-13    approved pursuant to Section 16.053 of this code;
16-14                (3)  if the permit, certified filing, or certificate of
16-15    adjudication was obtained to meet demonstrated long-term public
16-16    water supply or electric generation needs as evidenced by a water
16-17    management plan developed by the holder and consistent with
16-18    projections of future water needs contained in the state water
16-19    plan; or
16-20                (4)  if the permit, certified filing, or certificate of
16-21    adjudication was obtained as the result of the construction of a
16-22    reservoir funded, in  whole or in part, by the holder of the
16-23    permit, certified filing, or certificate of adjudication as part of
16-24    the holder's long-term water planning.
16-25          SECTION 20.  Section 11.177(b), Water Code, is amended to
16-26    read as follows:
16-27          (b)  In determining what constitutes reasonable diligence or
 17-1    a justified nonuse as used in Subsection (a)(2) of this section,
 17-2    the commission shall give consideration to:
 17-3                (1)  whether sufficient water is available in the
 17-4    source of supply to meet all or part of the appropriation during
 17-5    the 10-year period of nonuse;
 17-6                (2)  whether the nonuse is justified by the holder's
 17-7    participation in the federal Conservation Reserve Program or a
 17-8    similar governmental program as provided by Section 11.173(b)(1) of
 17-9    this code;
17-10                (3)  [whether the permit, certified filing, or
17-11    certificate of adjudication was obtained to meet demonstrated
17-12    long-term public water supply or electric generation needs as
17-13    evidenced by a water management plan developed by the holder and
17-14    consistent with projections of future water needs contained in the
17-15    state water plan;]
17-16                [(4)  whether the permit, certified filing, or
17-17    certificate of adjudication was obtained as the result of the
17-18    construction of a reservoir funded, in whole or in part, by the
17-19    holder of the permit, certified filing, or certificate of
17-20    adjudication as part of the holder's long-term water planning;]
17-21                [(5)] whether the existing or proposed authorized
17-22    purpose and place of use are consistent with an approved regional
17-23    water plan as provided by Section 16.053 of this code;
17-24                (4) [(6)]  whether the permit, certified filing, or
17-25    certificate of adjudication has been deposited into the Texas Water
17-26    Bank as provided by Sections 15.7031 and 15.704 of this code or
17-27    whether it can be shown that the water right or water available
 18-1    under the right is currently being made available for purchase
 18-2    through private marketing efforts; or
 18-3                (5) [(7)]  whether the permit, certified filing, or
 18-4    certificate of adjudication has been reserved to provide for
 18-5    instream flows or bay and estuary inflows.
 18-6          SECTION 21.  Sections 12.052(c), (d), (e), and (f), Water
 18-7    Code, are amended to read as follows:
 18-8          (c)  The [If the] owner of a dam that is required to be
 18-9    constructed, reconstructed, repaired, or removed in order to comply
18-10    with the rules and orders promulgated under Subsection (a)  of this
18-11    section may not wilfully fail [fails] or refuse [refuses] to comply
18-12    within the 30-day period following the date of the commission's
18-13    final, nonappealable order to do so and may not [or if a person]
18-14    wilfully fail [fails] to comply with any rule or other order issued
18-15    by  the commission under this section within the 30-day period
18-16    following the effective date of the order[, he is liable to a
18-17    penalty of not more than $5,000 a day for each day he continues to
18-18    violate this section.  The state may recover the penalty by suit
18-19    brought for that purpose in the district court of Travis County].
18-20          (d)  The commission may issue an emergency works safety order
18-21    under Section 5.519 [If the commission determines that the existing
18-22    condition  of the dam is creating or will cause extensive or severe
18-23    property damage or economic loss to others or is posing an
18-24    immediate and serious threat to human life or health and that other
18-25    procedures available to the commission to remedy or prevent the
18-26    occurrence of the situation will result in unreasonable delay, the
18-27    commission may issue an emergency order, either mandatory or
 19-1    prohibitory in nature, directing the owner of a dam to repair,
 19-2    modify, maintain, dewater, or remove the dam which the commission
 19-3    determines is unsafe.  The emergency order may be issued without
 19-4    notice to the dam owner or with notice the commission considers
 19-5    practicable under the circumstances.  The notice does not have to
 19-6    comply with Chapter 2001, Government Code].
 19-7          (e)  [If the commission issues an emergency order under
 19-8    authority of this section without notice to the dam owner, the
 19-9    commission shall fix a time and place for a hearing which shall be
19-10    held as soon as practicable to affirm, modify, or set aside the
19-11    emergency order.  The notice does not have to comply with Chapter
19-12    2001, Government Code.  If the nature of the commission's action
19-13    requires further proceedings, those proceedings shall be conducted
19-14    as appropriate under the Administrative Procedure and Texas
19-15    Register Act, as amended (Article 6252-13a, Vernon's Texas Civil
19-16    Statutes).]
19-17          [(f)]  Nothing in this section or in rules or orders made by
19-18    the commission shall be construed to relieve an owner or operator
19-19    of a dam or reservoir of the legal duties, obligations, or
19-20    liabilities incident to ownership or operation.
19-21          SECTION 22.  Section 13.411, Water Code, is transferred to
19-22    Subchapter B, Chapter 7, Water Code, renumbered as Section 7.0325,
19-23    and amended to read as follows:
19-24          Sec. 7.0325 [13.411].  ACTION TO ENJOIN OR REQUIRE
19-25    COMPLIANCE: RETAIL PUBLIC UTILITIES.  (a)  If the commission has
19-26    reason to believe that any retail public utility or any other
19-27    person or corporation is engaged in or is about to engage in any
 20-1    act in violation of Chapter 13 [this chapter] or of any order or
 20-2    rule of the commission entered or adopted under Chapter 13 [this
 20-3    chapter] or that any retail public utility or any other person or
 20-4    corporation is failing to comply with Chapter 13, [this chapter] or
 20-5    with any rule or order, the attorney general on request of the
 20-6    commission, in addition to any other remedies provided in this
 20-7    chapter, shall bring an action in a court of competent jurisdiction
 20-8    in the name of and on behalf of the commission against the retail
 20-9    public utility or other person or corporation to enjoin the
20-10    commencement or continuation of any act or to require compliance
20-11    with Chapter 13 [this chapter] or the rule or order.
20-12          (b)  If the executive director has reason to believe that the
20-13    failure of the owner or operator of a water utility to properly
20-14    operate, maintain, or provide adequate facilities presents an
20-15    imminent threat to human health or safety, the executive director
20-16    shall immediately:
20-17                (1)  notify the utility's representative; and
20-18                (2)  initiate enforcement action consistent with:
20-19                      (A)  this subchapter; and
20-20                      (B)  procedural rules adopted by the commission.
20-21          SECTION 23.  Chapter 7, Water Code, is amended by adding
20-22    Subchapter I, and Sections 13.412, 13.4131, and 13.4132, Water
20-23    Code, are transferred to Subchapter I, Chapter 7, Water Code,
20-24    redesignated as Sections 7.401, 7.402, and 7.403, and amended to
20-25    read as follows:
20-26       SUBCHAPTER I.  RECEIVERSHIP; SUPERVISION OF CERTAIN UTILITIES
20-27          Sec. 7.401 [13.412].  RECEIVERSHIP.  (a)  At the request of
 21-1    the commission, the attorney general shall bring suit for the
 21-2    appointment of a receiver to collect the assets and carry on the
 21-3    business of a water or sewer utility that:
 21-4                (1)  has abandoned operation of its facilities;
 21-5                (2)  informs the commission that the owner is
 21-6    abandoning the system;
 21-7                (3)  violates a final order of the commission; or
 21-8                (4)  allows any property owned or controlled by it to
 21-9    be used in violation of a final order of the commission.
21-10          (b)  The court shall appoint a receiver if an appointment is
21-11    necessary:
21-12                (1)  to guarantee the collection of assessments, fees,
21-13    penalties, or interest;
21-14                (2)  to guarantee continuous and adequate service to
21-15    the customers of the utility; or
21-16                (3)  to prevent continued or repeated violation of the
21-17    final order.
21-18          (c)  The receiver shall execute a bond to assure the proper
21-19    performance of the receiver's duties in an amount to be set by the
21-20    court.
21-21          (d)  After appointment and execution of bond, the receiver
21-22    shall take possession of the assets of the utility specified by the
21-23    court.  Until discharged by the court, the receiver shall perform
21-24    the duties that the court directs to preserve the assets and carry
21-25    on the business of the utility and shall strictly observe the final
21-26    order involved.
21-27          (e)  On a showing of good cause by the utility, the court may
 22-1    dissolve the receivership and order the assets and control of the
 22-2    business returned to the utility.
 22-3          (f)  For purposes of this section and Section 7.403
 22-4    [13.4132], abandonment may include but is not limited to:
 22-5                (1)  failure to pay a bill or obligation owed to a
 22-6    retail public utility or to an electric or gas utility with the
 22-7    result that the utility service provider has issued a notice of
 22-8    discontinuance of necessary services;
 22-9                (2)  failure to provide appropriate water or wastewater
22-10    treatment so that a potential health hazard results;
22-11                (3)  failure to adequately maintain facilities,
22-12    resulting in potential health hazards, extended outages, or
22-13    repeated service interruptions;
22-14                (4)  failure to provide customers adequate notice of a
22-15    health hazard or potential health hazard;
22-16                (5)  failure to secure an alternative available water
22-17    supply during an outage;
22-18                (6)  displaying a pattern of hostility toward or
22-19    repeatedly failing to respond to the commission or the utility's
22-20    customers; and
22-21                (7)  failure to provide the commission with adequate
22-22    information on how to contact the utility for normal business and
22-23    emergency purposes.
22-24          (g)  Notwithstanding Section 64.021, Civil Practice and
22-25    Remedies Code, a receiver appointed under this section may seek
22-26    commission approval to acquire the water or sewer utility's
22-27    facilities and transfer the utility's certificate of convenience
 23-1    and necessity.  The receiver must apply in accordance with
 23-2    Subchapter H, Chapter 13.
 23-3          Sec. 7.402 [13.4131].  SUPERVISION OF CERTAIN UTILITIES.  (a)
 23-4    The commission, after providing to the utility notice and an
 23-5    opportunity for a hearing, may place a utility under supervision
 23-6    for gross or continuing mismanagement, gross or continuing
 23-7    noncompliance with Chapter 13 [this chapter] or commission rules,
 23-8    or noncompliance with commission orders.
 23-9          (b)  While supervising a utility, the commission may require
23-10    the utility to:
23-11                (1)  meet [abide by] conditions and requirements
23-12    prescribed by the commission, including:
23-13                      (A) [(1)]  management requirements;
23-14                      (B) [(2)]  additional reporting requirements;
23-15                      (C) [(3)]  restrictions on hiring, salary or
23-16    benefit increases, capital investment, borrowing, stock issuance or
23-17    dividend declarations, and liquidation of assets; and
23-18                      (D) [(4)]  a requirement that the utility place
23-19    the utility's funds into an account in a financial institution
23-20    approved by the commission and use of those funds shall be
23-21    restricted to reasonable and necessary utility expenses; and[.]
23-22                (2) [(c)  While supervising a utility, the commission
23-23    may require that the utility] obtain commission approval before
23-24    taking an [any] action [that may be] restricted under Subdivision
23-25    (1) [Subsection (b)] of this section.
23-26          (c)  An [Any] action or transaction for which commission
23-27    approval is required by this section that [which] occurs without
 24-1    commission approval may be voided by the commission.
 24-2          Sec. 7.403 [13.4132].  OPERATION OF UTILITY THAT DISCONTINUES
 24-3    OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER.  (a)  The
 24-4    commission, after providing to the utility notice and an
 24-5    opportunity to be heard by the commissioners at a commission
 24-6    meeting, may authorize a willing person to temporarily manage and
 24-7    operate a utility if the utility:
 24-8                (1)  has discontinued or abandoned operations or the
 24-9    provision of services; or
24-10                (2)  has been or is being referred to the attorney
24-11    general for the appointment of a receiver under Section 7.401
24-12    [13.412].
24-13          (b)  The commission may appoint a person under this section
24-14    by emergency order under Section 5.507 and may authorize an
24-15    emergency rate increase by emergency order under Section 5.508[,
24-16    and notice of the action is adequate if the notice is mailed or
24-17    hand-delivered to the last known address of the utility's
24-18    headquarters].
24-19          (c)  A person appointed under this section has the powers and
24-20    duties necessary to ensure the continued operation of the utility
24-21    and the provision of continuous and adequate services to customers,
24-22    including the power and duty to:
24-23                (1)  read meters;
24-24                (2)  bill for utility services;
24-25                (3)  collect revenues;
24-26                (4)  disburse funds;
24-27                (5)  access all system components; and
 25-1                (6)  request rate increases.
 25-2          (d)  This section does not affect the authority of the
 25-3    commission to pursue an enforcement claim against a utility or an
 25-4    affiliated interest.
 25-5          SECTION 24.  Section 13.414, Water Code, is amended to read
 25-6    as follows:
 25-7          Sec. 13.414.  VIOLATION BY [PENALTY AGAINST] RETAIL PUBLIC
 25-8    UTILITY OR AFFILIATED INTEREST.  A [(a) Any] retail public utility
 25-9    or affiliated interest may not violate [that violates] this
25-10    chapter, fail [fails] to perform a duty imposed on it, or fail,
25-11    neglect, [fails, neglects,] or refuse [refuses] to obey an order,
25-12    rule, direction, or requirement of the commission or decree or
25-13    judgment of a court [is subject to a civil penalty of not less than
25-14    $100 nor more than $5,000 for each violation].
25-15          [(b)  A retail public utility or affiliated interest commits
25-16    a separate violation each day it continues to violate Subsection
25-17    (a) of this section.]
25-18          [(c)  The attorney general shall institute suit on his own
25-19    initiative or at the request of, in the name of, and on behalf of
25-20    the commission in a court of competent jurisdiction to recover the
25-21    penalty under this section.]
25-22          SECTION 25.  Section 13.417, Water Code, is transferred to
25-23    Subchapter B, Chapter 7, Water Code, renumbered as Section 7.034,
25-24    Water Code, and amended to read as follows:
25-25          Sec. 7.034 [13.417].  CONTEMPT PROCEEDINGS IN UTILITY ACTION.
25-26    If any person or retail public utility fails to comply with any
25-27    lawful order of the commission issued under Chapter 13 or with any
 26-1    subpoena or subpoena duces tecum issued in a proceeding under
 26-2    Chapter 13 or if any witness refuses to testify about any matter on
 26-3    which he may be lawfully interrogated in a proceeding under Chapter
 26-4    13, the commission may apply to any court of competent jurisdiction
 26-5    to compel obedience by proceedings for contempt.
 26-6          SECTION 26.  Sections 35.008(b), (c), and (d), Water Code,
 26-7    are amended to read as follows:
 26-8          (b)  The commission shall call a public comment [an
 26-9    evidentiary] hearing to consider:
26-10                (1)  the designation of a priority groundwater
26-11    management area;
26-12                (2)  whether a district should be created over all or
26-13    part of a priority groundwater management area; or
26-14                (3)  whether all or part of the land in the priority
26-15    groundwater management area should be added to an existing
26-16    district.
26-17          (c)  Public comment [Evidentiary] hearings shall be held at a
26-18    location in one of the counties in which the priority groundwater
26-19    management area is located, or proposed to be located, or in the
26-20    nearest convenient location if adequate facilities are not
26-21    available in those counties.
26-22          (d)  At the public comment hearing, the commission shall hear
26-23    testimony and receive evidence from affected persons.  The
26-24    commission shall consider the executive director's report and
26-25    supporting information and the testimony and evidence received at
26-26    the public comment hearing.  If the commission considers further
26-27    information necessary, the commission may request such information
 27-1    from any source.  Any testimony, evidence, report, comments, or
 27-2    other information received by the commission at a public comment
 27-3    hearing becomes part of the record of the contested case hearing on
 27-4    designation of the priority groundwater management area, creation
 27-5    of a district over all or part of the priority groundwater
 27-6    management area, or addition of any part of the land in the
 27-7    priority groundwater management area to an existing district.
 27-8          SECTION 27.  Chapter 35, Water Code, is amended by adding
 27-9    Section 35.010 to read as follows:
27-10          Sec. 35.010.  CREATION OF DISTRICTS ON PETITION AFTER
27-11    DESIGNATION OF PRIORITY GROUNDWATER MANAGEMENT AREA.  The
27-12    commission may not consider the creation of a groundwater
27-13    conservation district in a designated priority groundwater
27-14    management area before the conclusion of the next regular session
27-15    of the Texas Legislature following the designation unless the local
27-16    landowners have initiated a petition process under Chapter 36 for
27-17    the creation of a groundwater conservation district with a priority
27-18    groundwater management area.
27-19          SECTION 28.  Section 35.012, Water Code, is amended by adding
27-20    new Subsections (c) and (d), relettering existing Subsections (c),
27-21    (d), (e), and (f) as Subsections (e), (f), (g), and (h), and
27-22    amending existing Subsection (d), to read as follows:
27-23          (c)  Not later than the 10th day after the date on which the
27-24    commission order designating a priority groundwater management area
27-25    is issued, the commission shall send written notice of the
27-26    commission's actions to each landowner in the designated priority
27-27    groundwater management area at the landowner's most recent known
 28-1    address as shown in the tax rolls of the county in which the land
 28-2    is located.  The notice must include the commission's findings and
 28-3    conclusions from the data and information considered in designating
 28-4    the priority groundwater management area and the commission's
 28-5    recommendation regarding the need for a groundwater conservation
 28-6    district in the priority groundwater management area.
 28-7          (d)  As soon as possible after a commission order designating
 28-8    a priority groundwater management area, the Texas Agricultural
 28-9    Extension Service shall begin an educational program within the
28-10    area with the assistance and cooperation of the Texas Water
28-11    Development Board, the commission, other state agencies, and
28-12    existing districts to inform the residents of the status of the
28-13    area's water resources and management options including possible
28-14    formation of a district.
28-15          (e)  Following the issuance of a commission order under
28-16    Subsection (b), the landowners in the priority groundwater
28-17    management area may:
28-18                (1)  create one or more districts under Subchapter B,
28-19    Chapter 36;
28-20                (2)  have the area annexed to a district that adjoins
28-21    the area; or
28-22                (3)  create one or more districts through the
28-23    legislative process.
28-24          (f) [(d)]  The commission shall identify the areas subject to
28-25    the order of the commission issued under Subsection (b) that have
28-26    not been incorporated into a district and shall delineate proposed
28-27    boundaries of a district to include those areas.  [If the
 29-1    commission proposes the creation of one or more districts, the
 29-2    Texas Agricultural Extension Service shall begin an educational
 29-3    program within such areas with the assistance and cooperation of
 29-4    the Texas Water Development Board, the commission, other state
 29-5    agencies, and existing districts to inform the residents of the
 29-6    status of the area's water resources and management options
 29-7    including possible formation of a district, before beginning the
 29-8    procedures for creation of a district provided in Subchapter B,
 29-9    Chapter 36.]
29-10          (g) [(e)]  If the commission fails to find that the district
29-11    would be a benefit to the land and other property within the
29-12    priority groundwater management area, that there is a public need
29-13    for the district, or that creation of the district will further the
29-14    public welfare, the commission shall issue an order stating that a
29-15    district should not be created within the boundaries of the
29-16    priority groundwater management area.
29-17          (h) [(f)]  An order of the commission issued under this
29-18    section may not be appealed.
29-19          SECTION 29.  Section 36.014, Water Code, is amended to read
29-20    as follows:
29-21          Sec. 36.014.  NOTICE AND HEARING ON DISTRICT CREATION.  [(a)]
29-22    If a petition is filed under Section 36.013 or the commission
29-23    proposes that a district be created under Section 35.012(b), the
29-24    commission shall give notice of the [an] application or proposal as
29-25    required by Section 49.011(a) and may conduct a hearing on the
29-26    application or proposal if the commission determines that a hearing
29-27    is necessary under Section 49.011.
 30-1          [(b)  If the petition contains a request to create a
 30-2    management area in all or part of the proposed district, the notice
 30-3    must also be given in accordance with the requirements in Section
 30-4    35.006 for the designation of management areas.]
 30-5          SECTION 30.  Section 36.015, Water Code, is amended to read
 30-6    as follows:
 30-7          Sec. 36.015.  FINDINGS.  (a)  If the commission finds that a
 30-8    district requested by petition or proposed by the commission is
 30-9    feasible and practicable, [that it] would be a benefit to the land
30-10    in the district, and [that it] would be a public benefit or
30-11    utility, the commission shall issue an order containing these
30-12    findings granting the petition or adopting the proposal, as
30-13    appropriate.
30-14          (b)  If the commission finds that a district is not feasible
30-15    and practicable, that it would not be a benefit to the land in the
30-16    district, that it would not be a public benefit or utility, or that
30-17    it is not needed, the commission by order shall deny the petition
30-18    or reject the proposal, as appropriate.
30-19          (c)  The commission may adjust the boundaries of the proposed
30-20    district to exclude any land that would not be benefited by
30-21    inclusion in the district and is not necessary to the district for
30-22    proper regulation of the groundwater reservoir.
30-23          (d)  If the commission grants the petition or adopts the
30-24    proposal to create the district, it shall direct in its order
30-25    creating the district  that an election be called by the temporary
30-26    directors to confirm the creation of the district and to elect
30-27    permanent directors.
 31-1          (e)  [The refusal to grant a petition to create a district
 31-2    does not invalidate or affect the designation of any management
 31-3    area requested in the same petition.]
 31-4          [(f)]  The commission shall act on the petition or its
 31-5    proposal within a reasonable amount of time.
 31-6          SECTION 31.  Subchapter D, Chapter 36, Water Code, is amended
 31-7    by adding Section 36.1074 to read as follows:
 31-8          Sec. 36.1074.  EXTENSION OF DISTRICT AUTHORITY TO ADDITIONAL
 31-9    AQUIFERS WITHIN DISTRICT'S GEOGRAPHIC BOUNDARIES.  (a)  The
31-10    commission by rule shall establish a procedure by which a district
31-11    created by special law may petition to extend the district's
31-12    authority to include management of any aquifer within the
31-13    geographic boundaries of the district the management of which is
31-14    not provided for by the special law creating any district.
31-15          (b)  Rules adopted by the commission under this section shall
31-16    establish grounds for a petition described by Subsection (a),
31-17    including:
31-18                (1)  a change in pumping conditions;
31-19                (2)  a change in water quality conditions;
31-20                (3)  a finding that another aquifer is affecting water
31-21    levels in the primary managed aquifer; and
31-22                (4)  other grounds the commission may specify.
31-23          (c)  A petition under this section may be granted only by
31-24    order of the commission.
31-25          SECTION 32.  Section 36.0151, Water Code, is amended to read
31-26    as follows:
31-27          Sec. 36.0151.  NOTICE OF CREATION BY COMMISSION OF DISTRICT
 32-1    FOR PRIORITY GROUNDWATER MANAGEMENT AREA.  [(a)  If the commission
 32-2    proposes that a district be created under Section 35.012(d), it
 32-3    shall in its order creating the district provide that temporary
 32-4    directors be appointed under Section 36.016 and that an election be
 32-5    called by the temporary directors to confirm the creation of the
 32-6    district and to elect permanent directors.]
 32-7          [(b)]  The commission shall notify the county commissioners
 32-8    court of each county with territory in the district of the
 32-9    district's creation as soon as practicable after issuing the order
32-10    under Section 36.015(a) creating a [the] district proposed by the
32-11    commission under Section 35.012(b).
32-12          SECTION 33.  Section 36.108, Water Code, is amended to read
32-13    as follows:
32-14          Sec. 36.108.  JOINT PLANNING IN MANAGEMENT AREA OR PRIORITY
32-15    GROUNDWATER MANAGEMENT AREA.  (a)  If two or more districts are
32-16    located within the boundaries of the same management area or
32-17    priority groundwater management area, each district shall prepare a
32-18    comprehensive management  plan as required by Section 36.1071
32-19    covering that district's respective territory.  On completion of
32-20    the plan, each district shall forward a copy of the new revised
32-21    management plan to the other districts in the management area or
32-22    priority groundwater management area.
32-23          (b)  The board of directors of each district in the
32-24    management area or priority groundwater management area may, by
32-25    resolution, call a joint meeting with the boards of directors of
32-26    the other districts in the management area or priority groundwater
32-27    management area to review the management plans and accomplishments
 33-1    for the management area or priority groundwater management area.
 33-2    The boards shall meet to consider the plans individually and shall
 33-3    compare them to other management plans then in force in the
 33-4    management area.  In reviewing the management plans, the boards
 33-5    shall consider:
 33-6                (1)  the goals of each management plan and its impact
 33-7    on planning throughout the management area or priority groundwater
 33-8    management area;
 33-9                (2)  the effectiveness of the measures established by
33-10    each management plan for conserving and protecting groundwater and
33-11    preventing waste, and the effectiveness of these measures in the
33-12    management area or priority groundwater management area generally;
33-13    and
33-14                (3)  any other matters that the boards consider
33-15    relevant to the protection and conservation of groundwater and the
33-16    prevention of waste in the management area or priority groundwater
33-17    management area.
33-18          (c)  A joint meeting of the boards of directors must be held
33-19    in accordance with the Open Meetings Act, Chapter 551, Government
33-20    Code.  Notice of the meeting shall be given in accordance with the
33-21    requirements for notice of district board of directors meetings
33-22    under that Act.  In addition, notice of the meeting shall be
33-23    published not later than the 30th day before the date of the
33-24    scheduled meeting in a newspaper with general circulation in each
33-25    county in the management area or priority groundwater management
33-26    area.
33-27          (d)  A district in the management area or priority
 34-1    groundwater management area may file a petition with the commission
 34-2    requesting an inquiry if the petitioner district believes that:
 34-3                (1)  another district in the management area or
 34-4    priority groundwater management area has failed to adopt rules;
 34-5                (2)  the groundwater in the management area or priority
 34-6    groundwater management area is not adequately protected by the
 34-7    rules adopted by another district; or
 34-8                (3)  the groundwater in the management area or priority
 34-9    groundwater management area is not adequately protected due to the
34-10    failure of another district to enforce substantial compliance with
34-11    its rules.
34-12          (e)  Not later than the 90th day after the date the petition
34-13    is filed, the commission shall review the petition and either:
34-14                (1)  dismiss it if it finds that the evidence is not
34-15    adequate to show that any of the conditions alleged in the petition
34-16    exist; or
34-17                (2)  select a review panel as provided in Subsection
34-18    (f).
34-19          (f)  The commission may appoint a review panel consisting of
34-20    a chairman and four other members.  A director or general manager
34-21    of a district located outside the management area or priority
34-22    groundwater management area that is the subject of the petition may
34-23    be appointed to the review panel.  The commission may not appoint
34-24    more than two members of the review panel from any one district.
34-25    The commission also shall appoint a disinterested person to serve
34-26    as a nonvoting recording secretary for the review panel.  The
34-27    recording secretary may be an employee of the commission.  The
 35-1    recording secretary shall record and document the proceedings of
 35-2    the panel.
 35-3          (g)  Not later than the 120th day after appointment, the
 35-4    review panel shall review the petition and any evidence relevant to
 35-5    the petition and, in a public meeting, prepare a report to the
 35-6    commission.  The commission may direct the review panel to conduct
 35-7    public hearings at a location in the management area or priority
 35-8    groundwater management area to take evidence on the petition.  The
 35-9    review panel may attempt to negotiate a settlement or resolve the
35-10    dispute by any lawful means.
35-11          (h)  In its report, the review panel shall include:
35-12                (1)  a summary of all evidence taken in any hearing on
35-13    the petition;
35-14                (2)  a list of findings and recommended actions
35-15    appropriate for the commission to take and the reasons it finds
35-16    those actions appropriate; and
35-17                (3)  any other information the panel considers
35-18    appropriate.
35-19          SECTION 34.  Section 341.047, Health and Safety Code, is
35-20    transferred to Subchapter E, Chapter 7, Water Code, redesignated as
35-21    Section 7.1605, Water Code,  and amended to read as follows:
35-22          Sec. 7.1605 [341.047].  VIOLATIONS RELATING TO PUBLIC
35-23    DRINKING WATER [CRIMINAL PENALTY].  (a)  A person commits an
35-24    offense if the person:
35-25                (1)  violates a provision of Section 341.031, Health
35-26    and Safety Code;
35-27                (2)  violates a provision of Section 341.032(a) or (b),
 36-1    Health and Safety Code;
 36-2                (3)  violates a provision of Section 341.033(a)-(f),
 36-3    Health and Safety Code;
 36-4                (4)  constructs a drinking water supply system without
 36-5    submitting completed plans and specifications as required by
 36-6    Section 341.035(c), Health and Safety Code;
 36-7                (5)  begins construction of a drinking water supply
 36-8    system without the commission's approval as required by Section
 36-9    341.035(a), Health and Safety Code;
36-10                (6)  violates a provision of Section 341.0351 or
36-11    341.0352, Health and Safety Code;
36-12                (7)  fails to remove a sign as required by Section
36-13    341.0354, Health and Safety Code; or
36-14                (8)  violates a provision of Section 341.036, Health
36-15    and Safety Code.
36-16          (b)  An offense under Subsection (a)  is a Class C
36-17    misdemeanor.
36-18          (c)  If it is shown on a trial of the defendant that the
36-19    defendant has been convicted of an offense under Subsection (a)
36-20    within a year before the date on which the offense being tried
36-21    occurred, the subsequent offense under Subsection (a) is a Class B
36-22    misdemeanor.
36-23          (d)  Each day of a continuing violation is a separate
36-24    offense.
36-25          SECTION 35.  Section 341.048, Health and Safety Code, is
36-26    amended to read as follows:
36-27          Sec. 341.048.  VIOLATION [CIVIL ENFORCEMENT].  [(a)] A person
 37-1    may not cause, suffer, allow, or permit a violation of this
 37-2    subchapter or a rule or order adopted under this subchapter.
 37-3          [(b)  A person who causes, suffers, allows, or permits a
 37-4    violation under this subchapter shall be assessed a civil penalty
 37-5    of not less than $50 nor more than $1,000 for each violation.  Each
 37-6    day of a continuing violation is a separate violation.]
 37-7          [(c)  If it appears that a person has violated, is violating,
 37-8    or threatens to violate a provision under this subchapter, the
 37-9    commission, a county, or a municipality may institute a civil suit
37-10    in a district court for:]
37-11                [(1)  injunctive relief to restrain the person from
37-12    continuing the violation or threat of violation;]
37-13                [(2)  the assessment and recovery of a civil penalty;
37-14    or]
37-15                [(3)  both injunctive relief and a civil penalty.]
37-16          [(d)  The commission is a necessary and indispensable party
37-17    in a suit brought by a county or municipality under this section.]
37-18          [(e)  On the commission's request, the attorney general shall
37-19    institute a suit in the name of the state for injunctive relief, to
37-20    recover a civil penalty, or for both injunctive relief and civil
37-21    penalty.]
37-22          [(f)  The suit may be brought in:]
37-23                [(1)  Travis County;]
37-24                [(2)  the county in which the defendant resides; or]
37-25                [(3)  the county in which the violation or threat of
37-26    violation occurs.]
37-27          [(g)  In a suit under this section to enjoin a violation or
 38-1    threat of violation of this subchapter, the court shall grant the
 38-2    state, county, or municipality, without bond or other undertaking,
 38-3    any injunction that the facts may warrant including temporary
 38-4    restraining orders, temporary injunctions after notice and hearing,
 38-5    and permanent injunctions.]
 38-6          [(h)  Civil penalties recovered in a suit brought under this
 38-7    section by a county or municipality shall be equally divided
 38-8    between:]
 38-9                [(1)  the state; and]
38-10                [(2)  the county or municipality that first brought the
38-11    suit.]
38-12          SECTION 36.  (a)  The following sections of the Water Code
38-13    are repealed:
38-14                (1)  Section 11.082;
38-15                (2)  Sections 11.0841 and 11.0842;
38-16                (3)  Sections 13.4151 and 13.416;
38-17                (4)  Section 13.418; and
38-18                (5)  Sections  35.004-35.006.
38-19          (b)  Sections 341.049 and 341.050, Health and Safety Code,
38-20    are repealed.
38-21          SECTION 37.  This Act takes effect September 1, 1999.
38-22          SECTION 38.  (a)  The changes in law made by this Act apply
38-23    only to an offense committed or a violation or threat of violation
38-24    that occurs on or after September 1, 1999.  For purposes of this
38-25    section an offense is committed and a violation or threat of
38-26    violation occurs before September 1, 1999, if any element of the
38-27    offense, violation, or threat of violation occurs before that date.
 39-1          (b)  An offense committed or a violation or threat of
 39-2    violation that occurred before September 1, 1999, is covered by the
 39-3    law in effect when the offense was committed or the violation or
 39-4    threat of violation occurred, and the former law is continued in
 39-5    effect for that purpose.
 39-6          SECTION 39.  The importance of this legislation and the
 39-7    crowded condition of the calendars in both houses create an
 39-8    emergency and an imperative public necessity that the
 39-9    constitutional rule requiring bills to be read on three several
39-10    days in each house be suspended, and this rule is hereby suspended.