1-1     By:  Brown                                            S.B. No. 1311
 1-2           (In the Senate - Filed March 11, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 6, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 6, Nays 0; April 6, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1311                   By:  Brown
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the development and management of the water resources.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subsection (a), Section 5.504, Water Code, is
1-13     amended to read as follows:
1-14           (a)  If the commission, the executive director, or the
1-15     executive director's representative issues an emergency order under
1-16     this subchapter without a hearing, the order shall set a time and
1-17     place for a hearing to affirm, modify, or set aside the emergency
1-18     order to be held before the commission or its designee as soon as
1-19     practicable after the order is issued.  If the emergency order is
1-20     issued under Section 5.517 or 5.518, the order shall set a time for
1-21     the hearing not later than the 20th day after the date the
1-22     emergency order is issued.
1-23           SECTION 2.  Subchapter L, Chapter 5, Water Code, is amended
1-24     by adding Sections 5.517, 5.518, 5.519, and 5.520 to read as
1-25     follows:
1-26           Sec. 5.517.  EMERGENCY PERMIT TO DIVERT AND USE WATER;
1-27     AMENDMENT TO WATER RIGHT.  (a)  Except as provided by Section 5.506
1-28     and after notification to the governor, the commission by emergency
1-29     order may issue a permit to divert and use water or amend an
1-30     existing permit, certified filing, or certificate of adjudication
1-31     for an initial period not to exceed 120 days if the commission
1-32     finds that:
1-33                 (1)  emergency conditions exist that present an
1-34     imminent threat to the public health, safety, and welfare or the
1-35     environment and that override the necessity to comply with
1-36     established statutory procedures; and
1-37                 (2)  there is no feasible practicable alternative to
1-38     the emergency authorization.  The emergency authorization may be
1-39     renewed once for a period not to exceed 60 days.
1-40           (b)  The executive director may issue an emergency order if
1-41     an imminent threat to the public health, safety, and welfare or the
1-42     environment exists that requires emergency action before the
1-43     commission can take action under Subsection (a) and there is no
1-44     feasible alternative.  If the executive director issues an
1-45     emergency order under this subsection, the commission shall hold a
1-46     hearing as provided for in Section 5.504 as soon as practicable but
1-47     not later than 20 days after issuance of the order to affirm,
1-48     modify, or set aside the order.
1-49           (c)  The notice requirements of Section 11.132 relating to
1-50     the time for notice, newspaper notice, and method of giving a
1-51     person notice do not apply to a hearing held on an application for
1-52     an emergency order under this section.  The commission shall give
1-53     the general notice of the hearing that the commission considers
1-54     practicable under the circumstances.
1-55           (d)  The commission may adopt rules and impose fees necessary
1-56     to carry out the provisions of this section.
1-57           (e)  An emergency order under this section does not vest in
1-58     the grantee any right to the diversion, impoundment, or use of
1-59     water and expires by its terms.
1-60           Sec. 5.518.  EMERGENCY ORDER FOR TEMPORARY TRANSFER OF USE OF
1-61     WATER RIGHT.  (a)  The commission by emergency order may grant the
1-62     temporary transfer and use of all or part of a surface water right
1-63     for other than domestic or municipal use to a retail or wholesale
1-64     water supplier for public health and safety purposes.
 2-1           (b)  The commission may direct the applicant to timely pay
 2-2     the amounts for which the applicant may be potentially liable under
 2-3     this section and to fully indemnify and hold harmless the state,
 2-4     the executive director, and the commission from any and all
 2-5     liability for the order sought.  The commission may order bond or
 2-6     other surety in a form acceptable to the commission as a condition
 2-7     for an emergency order under this section.  The commission may not
 2-8     grant an emergency authorization under this section that would
 2-9     cause a violation of a federal regulation.
2-10           (c)  In transferring the amount of water requested by the
2-11     applicant, the executive director or the commission shall allocate
2-12     the requested amount among two or more permits, certified filings,
2-13     or certificates of adjudication for other than domestic or
2-14     municipal use.
2-15           (d)  A person granted an emergency order under this section
2-16     is liable to the owner from whom the use is transferred for the
2-17     fair market value of the water transferred and for any damages
2-18     proximately caused by the transfer of use.  If, within 60 days of
2-19     the termination of the order, the parties do not agree on the
2-20     amount due, or if full payment is not made, either party may file a
2-21     complaint with the commission to determine the amount due.
2-22           (e)  The commission by rule shall establish a dispute
2-23     resolution procedure for a complaint filed under this section.
2-24     After exhausting all administrative remedies under this section, an
2-25     owner from whom the use is transferred may file suit to recover or
2-26     determine the amount due in a district court in the county where
2-27     the owner resides or has its headquarters.  The prevailing party in
2-28     a suit filed under this subsection is entitled to recover court
2-29     costs and reasonable attorney's fees.
2-30           Sec. 5.519.  EMERGENCY WORKS SAFETY ORDER.  The commission
2-31     may issue a mandatory or prohibitory emergency order directing the
2-32     owner of a dam, levee, or other water-storage or flood-control work
2-33     to repair, modify, maintain, dewater, or remove a work if the
2-34     commission finds that:
2-35                 (1)  the existing condition of the work is causing or
2-36     will cause extensive or severe property damage or economic loss to
2-37     others or is posing an immediate and serious threat to human life
2-38     or health; and
2-39                 (2)  other procedures available to the commission to
2-40     remedy or prevent the occurrence will result in unreasonable delay.
2-41           Sec. 5.520.  EMERGENCY ORDER FOR OPERATION OF UTILITY THAT
2-42     DISCONTINUES OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER.
2-43     The commission may issue an emergency order appointing a willing
2-44     person to temporarily manage and operate a utility under Section
2-45     7.404.  Notice of the action is adequate if the notice is mailed or
2-46     hand delivered to the last known address of the utility's
2-47     headquarters.
2-48           SECTION 3.  Section 7.004, Water Code, is amended to read as
2-49     follows:
2-50           Sec. 7.004.  REMEDIES CUMULATIVE.  The remedies under this
2-51     chapter are cumulative of all other remedies.  Nothing in this
2-52     chapter affects the right of a private corporation, [or]
2-53     individual, or political subdivision that has a justiciable
2-54     interest to pursue any available common law remedy to enforce a
2-55     right, to abate a condition of pollution or other nuisance, to
2-56     recover damages to enforce a right, or to prevent or seek redress
2-57     or compensation for the violation of a right or otherwise redress
2-58     an injury.
2-59           SECTION 4.  Subchapter B, Chapter 7, Water Code, is amended
2-60     by adding Section 7.034 to read as follows:
2-61           Sec. 7.034.  ATTORNEY'S FEES; COSTS.  A district court may
2-62     award the costs of litigation, including reasonable attorney's fees
2-63     and expert costs, to any political subdivision of the state,
2-64     private corporation, or individual that is a water right holder and
2-65     that prevails in a suit for injunctive relief to redress an
2-66     unauthorized diversion, impoundment, or use of surface water in
2-67     violation of Chapter 11 or a rule adopted under Chapter 11.
2-68           SECTION 5.  Subsection (b), Section 7.051, Water Code, is
2-69     amended to read as follows:
 3-1           (b)  Except as provided by this subsection, this [This]
 3-2     subchapter does not apply to violations of Chapter [11,] 12 or[,
 3-3     13,] 16[, or 36 of this code, or Chapter 341, Health and Safety
 3-4     Code].  This subchapter does apply to Section 16.236.
 3-5           SECTION 6.  Section 7.052, Water Code, is amended to read as
 3-6     follows:
 3-7           Sec. 7.052.  MAXIMUM PENALTY.  (a)  The amount of the penalty
 3-8     for a violation of Chapter 18, 32, 33, or 34 of this code or
 3-9     Chapter 366, 371, or 372, Health and Safety Code, may not exceed
3-10     $2,500 a day for each violation.
3-11           (b)  The amount of the penalty for a violation of Chapter 11
3-12     or a rule or order adopted under or a permit, certified filing, or
3-13     certificate of adjudication issued under Chapter 11 may not exceed
3-14     $5,000 a day for each violation.
3-15           (c)  The penalty for a violation of a rule or order adopted
3-16     under Section 16.236 may not exceed $1,000 a day for each
3-17     violation.
3-18           (d)  The amount of the penalty for a violation under Chapter
3-19     341, Health and Safety Code, may not be less than $50 or more than
3-20     $1,000 for each violation.
3-21           (e)  The amount of the penalty for all other violations
3-22     within the jurisdiction of the commission to enforce may not exceed
3-23     $10,000 a day for each violation.
3-24           (f) [(c)]  Each day that a continuing violation occurs may be
3-25     considered a separate violation.  The commission may authorize an
3-26     installment payment schedule for an administrative penalty assessed
3-27     under this subchapter, except for an administrative penalty
3-28     assessed under Section 7.057 or assessed after a hearing under
3-29     Section 7.058.
3-30           SECTION 7.  Section 7.054, Water Code, is amended to read as
3-31     follows:
3-32           Sec. 7.054.  REPORT OF VIOLATION.  (a)  If, after examination
3-33     of a possible violation and the facts surrounding that possible
3-34     violation, the executive director concludes that a violation has
3-35     occurred, the executive director may issue a preliminary report in
3-36     accordance with commission rules that includes recommendations
3-37     regarding any penalty or corrective action.
3-38           (b)  A report regarding a possible violation under Chapter 11
3-39     must state the facts on which the conclusion was based and
3-40     recommend the amount of any penalty.  The executive director shall
3-41     base the recommended amount of the proposed penalty on the factors
3-42     provided by Section 7.053 and shall analyze each factor for the
3-43     benefit of the commission.
3-44           SECTION 8.  Section 7.069, Water Code, is amended to read as
3-45     follows:
3-46           Sec. 7.069.  DISPOSITION OF PENALTY.  (a)  Except as provided
3-47     by Subsection (b), a [A] penalty collected under this subchapter
3-48     shall be deposited to the credit of the general revenue fund.
3-49           (b)  A penalty collected under this subchapter from a public
3-50     utility shall be paid to the commission and deposited in the water
3-51     utility improvement account as provided by Section 341.0485, Health
3-52     and Safety Code.
3-53           SECTION 9.  Section 7.102, Water Code, is amended to read as
3-54     follows:
3-55           Sec. 7.102.  MAXIMUM PENALTY.  (a)  A person who causes,
3-56     suffers, allows, or permits a violation of a statute, rule, order,
3-57     or permit relating to Chapter 11, 18, 32, 33, or 34 of this code or
3-58     Chapter 366, 371, or 372, Health and Safety Code, shall be assessed
3-59     for each violation a civil penalty not less than $50 nor greater
3-60     than $5,000 for each day of each violation as the court or jury
3-61     considers proper.
3-62           (b)  The amount of a penalty for a violation of a rule or
3-63     order issued by the commission under Section 12.052 may not exceed
3-64     $5,000.
3-65           (c)  A person who causes, suffers, allows, or permits a
3-66     violation of a statute, rule, order, or permit relating to Chapter
3-67     13 shall be assessed for each violation a civil penalty not less
3-68     than $100 nor greater than $5,000 for each day of each violation as
3-69     the court or jury considers proper.
 4-1           (d)  A person who causes, suffers, allows, or permits a
 4-2     violation of a statute, rule, order, or permit relating to any
 4-3     other matter within the commission's jurisdiction to enforce, other
 4-4     than violations of Chapter [11,]12 or[, 13,] 16[, or 36] of this
 4-5     code, or Chapter 341, Health and Safety Code, shall be assessed for
 4-6     each violation of a civil penalty not less than $50 nor greater
 4-7     than $25,000 for each day of each violation as the court or jury
 4-8     considers proper.
 4-9           (e)  Each day of a continuing violation is a separate
4-10     violation.
4-11           SECTION 10.  Subsections (a) and (c), Section 7.105, Water
4-12     Code, are amended to read as follows:
4-13           (a)  On the request of the executive director or the
4-14     commission, the attorney general shall institute a suit in the name
4-15     of the state for injunctive relief under Section 7.032, to recover
4-16     a civil penalty, or for both injunctive relief and a civil penalty.
4-17     The attorney general may initiate a suit for recovery of a penalty
4-18     under this section for a violation under Section 13.414.
4-19           (c)  Except as provided by this subsection, the [The] suit
4-20     may be brought in Travis County, in the county in which the
4-21     defendant resides, or in the county in which the violation or
4-22     threat of violation occurs.  A suit to recover a penalty for a
4-23     violation of a rule or order issued by the commission under Section
4-24     12.052 may be brought in Travis County.
4-25           SECTION 11.  Subchapter D, Chapter 7, Water Code, is amended
4-26     by adding Section 7.1075 to read as follows:
4-27           Sec. 7.1075.  DISPOSITION OF PENALTY COLLECTED FROM PUBLIC
4-28     UTILITY.  A penalty collected under this subchapter from a public
4-29     utility shall be paid to the commission and deposited in the water
4-30     utility improvement account as provided by Section 341.0485, Health
4-31     and Safety Code.
4-32           SECTION 12.  Subchapter D, Chapter 7, Water Code, is amended
4-33     by adding Section 7.112 to read as follows:
4-34           Sec. 7.112.  LIMITATION ON SUIT FOR VIOLATION OF SECTION
4-35     11.081.  An action to collect the penalty provided by Section 7.102
4-36     for a violation of Section 11.081 must be brought within two years
4-37     from the date of the alleged violation.
4-38           SECTION 13.  Section 7.351, Water Code, is amended to read as
4-39     follows:
4-40           Sec. 7.351.  CIVIL SUITS.  If it appears that a violation or
4-41     threat of violation of Chapter 16, 26, 28, or 34 of this code or
4-42     Chapter 341, 361, 371, 372, or 382, Health and Safety Code, or a
4-43     provision of Chapter 401, Health and Safety Code, under the
4-44     commission's jurisdiction or a rule adopted or an order or a permit
4-45     issued under those chapters or provisions has occurred or is
4-46     occurring in the jurisdiction of a local government, the local
4-47     government or, in the case of a violation of Chapter 401, Health
4-48     and Safety Code, a person affected as defined in that chapter, may
4-49     institute a civil suit under Subchapter D in the same manner as the
4-50     commission in a district court by its own attorney for the
4-51     injunctive relief or civil penalty, or both, as authorized by this
4-52     chapter against the person who committed, is committing, or is
4-53     threatening to commit the violation.
4-54           SECTION 14.  Section 11.0843, Water Code, is amended to read
4-55     as follows:
4-56           Sec. 11.0843.  FIELD CITATION.  [(a)]  Upon witnessing a
4-57     violation of this chapter or a rule or order or a water right
4-58     issued under this chapter, a watermaster or the watermaster's
4-59     deputy, as defined by commission rule, may issue the alleged
4-60     violator a field citation alleging that a violation has occurred
4-61     [and providing the alleged violator the option of either:]
4-62                 [(1)  without admitting to or denying the alleged
4-63     violation, paying an administrative penalty in accordance with the
4-64     predetermined penalty amount established under Subsection (b) of
4-65     this section and taking remedial action as provided in the
4-66     citation; or]
4-67                 [(2)  requesting a hearing on the alleged violation in
4-68     accordance with Section 11.0842 of this code.]
4-69           [(b)  By rule the commission shall establish penalty amounts
 5-1     corresponding to types of violations of this chapter or rules or
 5-2     orders adopted or water rights issued under this chapter.]
 5-3           [(c)  A penalty collected under this section shall be
 5-4     deposited in the state treasury to the credit of the general
 5-5     revenue fund].
 5-6           SECTION 15.  Section 11.085, Water Code, is amended by adding
 5-7     Subsection (w) to read as follows:
 5-8           (w)  The requirements of this section apply to the transfer
 5-9     of water from one river basin to another regardless of whether all
5-10     or any part of the water right, permit, certified filing, or
5-11     certificate of adjudication under which the water is authorized to
5-12     be used is also transferred.
5-13           SECTION 16.  Subsection (a), Section 11.138, Water Code, is
5-14     amended to read as follows:
5-15           (a)  The commission may issue temporary permits for
5-16     beneficial purposes to the extent that they do not interfere with
5-17     or adversely affect prior appropriations or vested rights on the
5-18     stream from which water is to be diverted under such temporary
5-19     permit.  The commission may, by appropriate order, authorize any
5-20     member of the commission to approve and issue temporary permits
5-21     without notice and hearing if it appears to such issuing party that
5-22     sufficient water is available at the proposed point of diversion to
5-23     satisfy the requirements of the temporary permit as well as all
5-24     existing rights.  No temporary permit issued without notice and
5-25     hearing shall authorize more than 10 acre-feet of water, nor may it
5-26     be for a term in excess of one year.  The commission by rule may
5-27     authorize the beneficial use, without a permit, of not more than 25
5-28     acre-feet of water, for a term not to exceed one year, if the
5-29     diversion of water will not affect existing water right holders and
5-30     the user of the water registers the use with the commission in the
5-31     manner required by the commission.
5-32           SECTION 17.  Section 11.139, Water Code, is amended to read
5-33     as follows:
5-34           Sec. 11.139.  Emergency Authorizations.  [(a)]  Except as
5-35     provided by Section 5.506 [11.148] of this code, the commission may
5-36     grant an emergency permit, order, or amendment to an existing
5-37     permit, certified filing, or certificate of adjudication under
5-38     Subchapter L, Chapter 5 [after notice to the governor for an
5-39     initial period of not more than 120 days if the commission finds
5-40     that emergency conditions exist which present an imminent threat to
5-41     the public health and safety and which override the necessity to
5-42     comply with established statutory procedures and there are no
5-43     feasible practicable alternatives to the emergency authorization.
5-44     Such emergency action may be renewed once for not longer than 60
5-45     days].
5-46           [(b)  A person desiring to obtain an emergency authorization
5-47     under this section shall submit to the commission a sworn
5-48     application containing the following information:]
5-49                 [(1)  a description of the condition of emergency
5-50     justifying the granting of the emergency authorization;]
5-51                 [(2)  a statement setting forth facts which support the
5-52     findings required under this section;]
5-53                 [(3)  an estimate of the dates on which the proposed
5-54     authorization should begin and end;]
5-55                 [(4)  a description of the action sought and the
5-56     activity proposed to be allowed, mandated, or prohibited; and]
5-57                 [(5)  any other statements or information required by
5-58     the commission.]
5-59           [(c)  If the commission finds the applicant's statement made
5-60     under Subsection (b) of this section to be correct, the commission
5-61     may grant emergency authorizations under this section without
5-62     notice and hearing or with such notice and hearing as the
5-63     commission considers practicable under the circumstances.]
5-64           [(d)  If the commission grants an emergency authorization
5-65     under this section without a hearing, the authorization shall fix a
5-66     time and place for a hearing to be held before the commission.  The
5-67     hearing shall be held as soon after the emergency authorization is
5-68     granted as is practicable but not later than 20 days after the
5-69     emergency authorization is granted.]
 6-1           [(e)  At the hearing, the commission shall affirm, modify, or
 6-2     set aside the emergency authorization.  Any hearing on an emergency
 6-3     authorization shall be conducted in accordance with Chapter 2001,
 6-4     Government Code, and rules of the commission.]
 6-5           [(f)  If an imminent threat to the public health and safety
 6-6     exists which requires emergency action before the commission can
 6-7     take action as provided by Subsections (a) through (c) of this
 6-8     section and there are no feasible alternatives, the executive
 6-9     director may grant an emergency authorization after notice to the
6-10     governor.  If the executive director issues an emergency
6-11     authorization under this subsection, the commission shall hold a
6-12     hearing as provided for in Subsections (d) and (e) of this section.
6-13     The requirements of Subsection (b) of this section shall be
6-14     satisfied by the applicant before action is taken by the executive
6-15     director on the request for emergency authorization.]
6-16           [(g)  The requirements of Section 11.132 of this code
6-17     relating to the time for notice, newspaper notice, and method of
6-18     giving a person notice do not apply to a hearing held on an
6-19     application for an emergency authorization under this section, but
6-20     such general notice of the hearing shall be given as the
6-21     commission, under Subsections (c) and (e) of this section,
6-22     considers practicable under the circumstances.]
6-23           [(h)  The commission may grant an emergency authorization
6-24     under this section for the temporary transfer and use of all or
6-25     part of a permit, certified filing, or certificate of adjudication
6-26     for other than domestic or municipal use to a retail or wholesale
6-27     water supplier for public health and safety purposes.  In addition
6-28     to the requirements contained in Subsection (b) of this section,
6-29     the commission may direct that the applicant will timely pay the
6-30     amounts for which the applicant may be potentially liable under
6-31     Subsection (j) of this section and to the extent authorized by law
6-32     will fully indemnify and hold harmless the state, the executive
6-33     director, and the commission from any and all liability for the
6-34     authorization sought.  The commission may order bond or other
6-35     surety in a form acceptable to the commission as a condition for
6-36     such emergency authorization.  The commission may not grant an
6-37     emergency authorization under this section which would cause a
6-38     violation of a federal regulation.]
6-39           [(i)  In transferring the amount of water requested by the
6-40     applicant, the executive director or the commission shall allocate
6-41     the requested amount among two or more permits, certified filings,
6-42     or certificates of adjudication for other than domestic or
6-43     municipal use.]
6-44           [(j)  The person granted an emergency authorization under
6-45     Subsection (h) of this section is liable to the owner and the
6-46     owner's agent or lessee from whom the use is transferred for the
6-47     fair market value of the water transferred as well as for any
6-48     damages caused by the transfer of use.  If, within 60 days of the
6-49     termination of the authorization, the parties do not agree on the
6-50     amount due, or if full payment is not made, either party may file a
6-51     complaint with the commission to determine the amount due.  The
6-52     commission may use dispute resolution procedures for a complaint
6-53     filed under this subsection.  After exhausting all administrative
6-54     remedies under this subsection, an owner from whom the use is
6-55     transferred may file suit to recover or determine the amount due in
6-56     a district court in the county where the owner resides or has its
6-57     headquarters.  The prevailing party in a suit filed under this
6-58     subsection is entitled to recover court costs and reasonable
6-59     attorney's fees.]
6-60           [(k)  The commission may prescribe rules and adopt fees which
6-61     are necessary to carry out the provisions of this section.]
6-62           [(l)  An emergency authorization does not vest in the grantee
6-63     any right to the diversion, impoundment, or use of water and shall
6-64     expire and be cancelled in accordance with its terms.]
6-65           SECTION 18.  Subsection (a), Section 11.142, Water Code, is
6-66     amended to read as follows:
6-67           (a)  Without obtaining a permit, a person may construct on
6-68     his own property a dam or reservoir with normal storage of not more
6-69     than 200 acre-feet of water for domestic and livestock purposes.
 7-1     Normal storage may involve the temporary storage of greater than
 7-2     200 acre-feet if the owner of the structure maintains records which
 7-3     can demonstrate that throughout a 12-month period an average of not
 7-4     more than 200 acre-feet of water is impounded in such a structure.
 7-5           SECTION 19.  Subsection (b), Section 11.173, Water Code, is
 7-6     amended to read as follows:
 7-7           (b)  A permit, certified filing, or certificate of
 7-8     adjudication or a portion of a permit, certified filing, or
 7-9     certificate of adjudication is exempt from cancellation under
7-10     Subsection (a) of this section:
7-11                 (1)  to the extent of the owner's participation in the
7-12     Conservation Reserve Program authorized by the Food Security Act,
7-13     Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985)
7-14     or a similar governmental program; [or]
7-15                 (2)  if any portion of the water authorized to be used
7-16     pursuant to a permit, certified filing, or certificate of
7-17     adjudication has been used in accordance with a regional water plan
7-18     approved pursuant to Section 16.053 of this code;
7-19                 (3)  if the permit, certified filing, or certificate of
7-20     adjudication was obtained to meet demonstrated long-term public
7-21     water supply or electric generation needs as evidenced by a water
7-22     management plan developed by the holder and consistent with
7-23     projections of future water needs contained in the state water
7-24     plan; or
7-25                 (4)  if the permit, certified filing, or certificate of
7-26     adjudication was obtained as the result of the construction of a
7-27     reservoir funded, in whole or in part, by the holder of the permit,
7-28     certified filing, or certificate of adjudication as part of the
7-29     holder's long-term water planning.
7-30           SECTION 20.  Subsection (b), Section 11.177, Water Code, is
7-31     amended to read as follows:
7-32           (b)  In determining what constitutes reasonable diligence or
7-33     a justified nonuse as used in Subsection (a)(2) of this section,
7-34     the commission shall give consideration to:
7-35                 (1)  whether sufficient water is available in the
7-36     source of supply to meet all or part of the appropriation during
7-37     the 10-year period of nonuse;
7-38                 (2)  whether the nonuse is justified by the holder's
7-39     participation in the federal Conservation Reserve Program or a
7-40     similar governmental program as provided by Section 11.173(b)(1) of
7-41     this code;
7-42                 (3)  [whether the permit, certified filing, or
7-43     certificate of adjudication was obtained to meet demonstrated
7-44     long-term public water supply or electric generation needs as
7-45     evidenced by a water management plan developed by the holder and
7-46     consistent with projections of future water needs contained in the
7-47     state water plan;]
7-48                 [(4)  whether the permit, certified filing, or
7-49     certificate of adjudication was obtained as the result of the
7-50     construction of a reservoir funded, in whole or in part, by the
7-51     holder of the permit, certified filing, or certificate of
7-52     adjudication as part of the holder's long-term water planning;]
7-53                 [(5)]  whether the existing or proposed authorized
7-54     purpose and place of use are consistent with an approved regional
7-55     water plan as provided by Section 16.053 of this code;
7-56                 (4) [(6)]  whether the permit, certified filing, or
7-57     certificate of adjudication has been deposited into the Texas Water
7-58     Bank as provided by Sections 15.7031 and 15.704 of this code or
7-59     whether it can be shown that the water right or water available
7-60     under the right is currently being made available for purchase
7-61     through private marketing efforts; or
7-62                 (5) [(7)]  whether the permit, certified filing, or
7-63     certificate of adjudication has been reserved to provide for
7-64     instream flows or bay and estuary inflows.
7-65           SECTION 21.  Subsections (c), (d), (e), and (f), Section
7-66     12.052, Water Code, are amended to read as follows:
7-67           (c)  The [If the] owner of a dam that is required to be
7-68     constructed, reconstructed, repaired, or removed in order to comply
7-69     with the rules and orders promulgated under Subsection (a) of this
 8-1     section may not wilfully fail [fails] or refuse [refuses] to comply
 8-2     within the 30-day period following the date of the commission's
 8-3     final, nonappealable order to do so and may not [or if a person]
 8-4     wilfully fail [fails] to comply with any rule or other order issued
 8-5     by the commission under this section within the 30-day period
 8-6     following the effective date of the order[, he is liable to a
 8-7     penalty of not more than $5,000 a day for each day he continues to
 8-8     violate this section.  The state may recover the penalty by suit
 8-9     brought for that purpose in the district court of Travis County].
8-10           (d)  The commission may issue an emergency works safety order
8-11     under Section 5.519.  [If the commission determines that the
8-12     existing condition of the dam is creating or will cause extensive
8-13     or severe property damage or economic loss to others or is posing
8-14     an immediate and serious threat to human life or health and that
8-15     other procedures available to the commission to remedy or prevent
8-16     the occurrence of the situation will result in unreasonable delay,
8-17     the commission may issue an emergency order, either mandatory or
8-18     prohibitory in nature, directing the owner of a dam to repair,
8-19     modify, maintain, dewater, or remove the dam which the commission
8-20     determines is unsafe.  The emergency order may be issued without
8-21     notice to the dam owner or with notice the commission considers
8-22     practicable under the circumstances.  The notice does not have to
8-23     comply with Chapter 2001, Government Code.]
8-24           (e)  [If the commission issues an emergency order under
8-25     authority of this section without notice to the dam owner, the
8-26     commission shall fix a time and place for a hearing which shall be
8-27     held as soon as practicable to affirm, modify, or set aside the
8-28     emergency order.  The notice does not have to comply with Chapter
8-29     2001, Government Code.  If the nature of the commission's action
8-30     requires further proceedings, those proceedings shall be conducted
8-31     as appropriate under the Administrative Procedure and Texas
8-32     Register Act, as amended (Article 6252-13a, Vernon's Texas Civil
8-33     Statutes).]
8-34           [(f)]  Nothing in this section or in rules or orders made by
8-35     the commission shall be construed to relieve an owner or operator
8-36     of a dam or reservoir of the legal duties, obligations, or
8-37     liabilities incident to ownership or operation.
8-38           SECTION 22.  Chapter 7, Water Code, is amended by adding
8-39     Subchapter I, and Sections 13.412, 13.4131, and 13.4132, Water
8-40     Code, are transferred to Subchapter I, Chapter 7, Water Code,
8-41     redesignated as Sections 7.402, 7.403, and 7.404, and amended to
8-42     read as follows:
8-43        SUBCHAPTER I.  RECEIVERSHIP; SUPERVISION OF CERTAIN UTILITIES
8-44           Sec. 7.401.  DEFINITIONS.  In this subchapter, "affiliated
8-45     interest" and "affiliate" have the meanings assigned by Section
8-46     13.002.
8-47           Sec. 7.402 [13.412].  Receivership.  (a)  At the request of
8-48     the commission, the attorney general shall bring suit for the
8-49     appointment of a receiver to collect the assets and carry on the
8-50     business of a water or sewer utility that:
8-51                 (1)  has abandoned operation of its facilities;
8-52                 (2)  informs the commission that the owner is
8-53     abandoning the system;
8-54                 (3)  violates a final order of the commission; or
8-55                 (4)  allows any property owned or controlled by it to
8-56     be used in violation of a final order of the commission.
8-57           (b)  The court shall appoint a receiver if an appointment is
8-58     necessary:
8-59                 (1)  to guarantee the collection of assessments, fees,
8-60     penalties, or interest;
8-61                 (2)  to guarantee continuous and adequate service to
8-62     the customers of the utility; or
8-63                 (3)  to prevent continued or repeated violation of the
8-64     final order.
8-65           (c)  The receiver shall execute a bond to assure the proper
8-66     performance of the receiver's duties in an amount to be set by the
8-67     court.
8-68           (d)  After appointment and execution of bond, the receiver
8-69     shall take possession of the assets of the utility specified by the
 9-1     court.  Until discharged by the court, the receiver shall perform
 9-2     the duties that the court directs to preserve the assets and carry
 9-3     on the business of the utility and shall strictly observe the final
 9-4     order involved.
 9-5           (e)  On a showing of good cause by the utility, the court may
 9-6     dissolve the receivership and order the assets and control of the
 9-7     business returned to the utility.
 9-8           (f)  For purposes of this section and Section 7.404
 9-9     [13.4132], abandonment may include but is not limited to:
9-10                 (1)  failure to pay a bill or obligation owed to a
9-11     retail public utility or to an electric or gas utility with the
9-12     result that the utility service provider has issued a notice of
9-13     discontinuance of necessary services;
9-14                 (2)  failure to provide appropriate water or wastewater
9-15     treatment so that a potential health hazard results;
9-16                 (3)  failure to adequately maintain facilities,
9-17     resulting in potential health hazards, extended outages, or
9-18     repeated service interruptions;
9-19                 (4)  failure to provide customers adequate notice of a
9-20     health hazard or potential health hazard;
9-21                 (5)  failure to secure an alternative available water
9-22     supply during an outage;
9-23                 (6)  displaying a pattern of hostility toward or
9-24     repeatedly failing to respond to the commission or the utility's
9-25     customers; and
9-26                 (7)  failure to provide the commission with adequate
9-27     information on how to contact the utility for normal business and
9-28     emergency purposes.
9-29           (g)  Notwithstanding Section 64.021, Civil Practice and
9-30     Remedies Code, a receiver appointed under this section may seek
9-31     commission approval to acquire the water or sewer utility's
9-32     facilities and transfer the utility's certificate of convenience
9-33     and necessity.  The receiver must apply in accordance with
9-34     Subchapter H, Chapter 13.
9-35           Sec. 7.403 [13.4131].  Supervision of Certain Utilities.
9-36     (a)  The commission, after providing to the utility notice and an
9-37     opportunity for a hearing, may place a utility under supervision
9-38     for gross or continuing mismanagement, gross or continuing
9-39     noncompliance with Chapter 13 [this chapter] or commission rules,
9-40     or noncompliance with commission orders.
9-41           (b)  While supervising a utility, the commission may require
9-42     the utility to:
9-43                 (1)  meet [abide by] conditions and requirements
9-44     prescribed by the commission, including:
9-45                       (A) [(1)]  management requirements;
9-46                       (B) [(2)]  additional reporting requirements;
9-47                       (C) [(3)]  restrictions on hiring, salary or
9-48     benefit increases, capital investment, borrowing, stock issuance or
9-49     dividend declarations, and liquidation of assets; and
9-50                       (D) [(4)]  a requirement that the utility place
9-51     the utility's funds into an account in a financial institution
9-52     approved by the commission and use of those funds shall be
9-53     restricted to reasonable and necessary utility expenses; and[.]
9-54                 (2) [(c)  While supervising a utility, the commission
9-55     may require that the utility] obtain commission approval before
9-56     taking an [any] action [that may be] restricted under Subdivision
9-57     (1) [Subsection (b)] of this section.
9-58           (c)  An [Any] action or transaction for which commission
9-59     approval is required by this section that [which] occurs without
9-60     commission approval may be voided by the commission.
9-61           Sec. 7.404 [13.4132].  Operation of Utility That Discontinues
9-62     Operation or is Referred for Appointment of Receiver.  (a)  The
9-63     commission, after providing to the utility notice and an
9-64     opportunity to be heard by the commissioners at a commission
9-65     meeting, may authorize a willing person to temporarily manage and
9-66     operate a utility if the utility:
9-67                 (1)  has discontinued or abandoned operations or the
9-68     provision of services; or
9-69                 (2)  has been or is being referred to the attorney
 10-1    general for the appointment of a receiver under Section 7.402
 10-2    [13.412].
 10-3          (b)  The commission may appoint a person under this section
 10-4    by emergency order under Section 5.507 and may authorize an
 10-5    emergency rate increase by emergency order under Section 5.508[,
 10-6    and notice of the action is adequate if the notice is mailed or
 10-7    hand-delivered to the last known address of the utility's
 10-8    headquarters].
 10-9          (c)  A person appointed under this section has the powers and
10-10    duties necessary to ensure the continued operation of the utility
10-11    and the provision of continuous and adequate services to customers,
10-12    including the power and duty to:
10-13                (1)  read meters;
10-14                (2)  bill for utility services;
10-15                (3)  collect revenues;
10-16                (4)  disburse funds;
10-17                (5)  access all system components; and
10-18                (6)  request rate increases.
10-19          (d)  This section does not affect the authority of the
10-20    commission to pursue an enforcement claim against a utility or an
10-21    affiliated interest.
10-22          SECTION 23.  Section 13.414, Water Code, is amended to read
10-23    as follows:
10-24          Sec. 13.414.  VIOLATION BY [PENALTY AGAINST] RETAIL PUBLIC
10-25    UTILITY OR AFFILIATED INTEREST.  A [(a)  Any] retail public utility
10-26    or affiliated interest may not violate [that violates] this
10-27    chapter, fail [fails] to perform a duty imposed on it, or fail,
10-28    neglect, [fails, neglects,] or refuse [refuses] to obey an order,
10-29    rule, direction, or requirement of the commission or decree or
10-30    judgment of a court [is subject to a civil penalty of not less than
10-31    $100 nor more than $5,000 for each violation].
10-32          [(b)  A retail public utility or affiliated interest commits
10-33    a separate violation each day it continues to violate Subsection
10-34    (a) of this section.]
10-35          [(c)  The attorney general shall institute suit on his own
10-36    initiative or at the request of, in the name of, and on behalf of
10-37    the commission in a court of competent jurisdiction to recover the
10-38    penalty under this section.]
10-39          SECTION 24.  Subsections (b), (c), and (d), Section 35.008,
10-40    Water Code, are amended to read as follows:
10-41          (b)  The commission shall call a public comment [an
10-42    evidentiary] hearing to consider:
10-43                (1)  the designation of a priority groundwater
10-44    management area;
10-45                (2)  whether a district should be created over all or
10-46    part of a priority groundwater management area; or
10-47                (3)  whether all or part of the land in the priority
10-48    groundwater management area should be added to an existing
10-49    district.
10-50          (c)  Public comment [Evidentiary] hearings shall be held at a
10-51    location in one of the counties in which the priority groundwater
10-52    management area is located, or proposed to be located, or in the
10-53    nearest convenient location if adequate facilities are not
10-54    available in those counties.
10-55          (d)  At the public comment hearing, the commission shall hear
10-56    testimony and receive evidence from affected persons.  The
10-57    commission shall consider the executive director's report and
10-58    supporting information and the testimony and evidence received at
10-59    the public comment hearing.  If the commission considers further
10-60    information necessary, the commission may request such information
10-61    from any source.
10-62          SECTION 25.  Section 35.009, Water Code, is amended to read
10-63    as follows:
10-64          Sec. 35.009.  NOTICE AND PUBLIC COMMENT HEARING.  (a)  The
10-65    commission shall have notice of the public comment hearing
10-66    published in at least one newspaper with general circulation in the
10-67    county or counties in which the area proposed for designation as a
10-68    priority groundwater management area or the area within a priority
10-69    groundwater management area being considered for district creation
 11-1    or for addition to an existing district is located.  Notice must be
 11-2    published not later than the 30th day before the date set for the
 11-3    commission to consider the designation of the priority groundwater
 11-4    management area, the creation of a district in a priority
 11-5    groundwater management area, or the addition of land in a priority
 11-6    groundwater management area to an existing district.
 11-7          (b)  The notice must include:
 11-8                (1)  if applicable, a statement of the general purpose
 11-9    and effect of designating the proposed priority groundwater
11-10    management area;
11-11                (2)  if applicable, a statement of the general purpose
11-12    and effect of creating a district in the priority groundwater
11-13    management area;
11-14                (3)  if applicable, a statement of the general purpose
11-15    and effect of adding all or part of the land in the priority
11-16    groundwater management area to an existing district;
11-17                (4)  a map generally outlining the boundaries of the
11-18    area being considered for priority groundwater management area
11-19    designation or the priority groundwater management area being
11-20    considered for district creation or for addition to an existing
11-21    district, or notice of the location at which a copy of the map may
11-22    be examined or obtained;
11-23                (5)  a statement that the executive director's report
11-24    concerning the priority groundwater management area or proposed
11-25    area is available at the commission's main office in Austin, Texas,
11-26    and at regional offices of the commission for regions which include
11-27    territory within the priority groundwater management area or
11-28    proposed priority groundwater management area and that the report
11-29    is available for inspection during regular business hours;
11-30                (6)  a description or the name of the locations in the
11-31    affected area at which the commission has provided copies of the
11-32    executive director's report to be made available for public
11-33    inspection;
11-34                (7)  the name and address of each public library, each
11-35    county clerk's office, and each district to which the commission
11-36    has provided copies of the executive director's report; and
11-37                (8)  the date, time, and place of the public comment
11-38    hearing.
11-39          (c)  The commission shall also give written notice of the
11-40    date, time, place, and purpose of the public comment hearing to the
11-41    governing body of each county, regional water planning group,
11-42    adjacent groundwater district, municipality, river authority, water
11-43    district, or other entity which supplies public drinking water,
11-44    including each holder of a certificate of convenience and necessity
11-45    issued by the commission, and of each irrigation district, located
11-46    either in whole or in part in the priority groundwater management
11-47    area or proposed priority groundwater management area.  The notice
11-48    must be given before the 30th day preceding the date set for the
11-49    public comment hearing.
11-50          SECTION 26.  Subsection (a), Section 35.012, Water Code, is
11-51    amended to read as follows:
11-52          (a)  At the conclusion of its public comment hearing and
11-53    considerations, the commission shall issue an order stating its
11-54    findings and conclusions.
11-55          SECTION 27.  Chapter 35, Water Code, is amended by adding
11-56    Section 35.010 to read as follows:
11-57          Sec. 35.010.  CREATION OF DISTRICTS ON PETITION AFTER
11-58    DESIGNATION OF PRIORITY GROUNDWATER MANAGEMENT AREA.  The
11-59    commission may not consider the creation of a groundwater
11-60    conservation district in a designated priority groundwater
11-61    management area before the conclusion of the next regular session
11-62    of the Texas Legislature following the designation unless the local
11-63    landowners have initiated a petition process under Chapter 36 for
11-64    the creation of a groundwater conservation district with a priority
11-65    groundwater management area.
11-66          SECTION 28.  Section 35.012, Water Code, is amended by adding
11-67    new Subsections (c) and (d), relettering existing Subsections (c),
11-68    (d), (e), and (f) as Subsections (e), (f), (g), and (h), and
11-69    amending existing Subsection (d) to read as follows:
 12-1          (c)  Not later than the 10th day after the date on which the
 12-2    commission order designating a priority groundwater management area
 12-3    is issued, the commission shall send written notice of the
 12-4    commission's actions to each landowner in the designated priority
 12-5    groundwater management area at the landowner's most recent known
 12-6    address as shown in the tax rolls of the county in which the land
 12-7    is located.  The notice must include the commission's findings and
 12-8    conclusions from the data and information considered in designating
 12-9    the priority groundwater management area and the commission's
12-10    recommendation regarding the need for a groundwater conservation
12-11    district in the priority groundwater management area.
12-12          (d)  As soon as possible after a commission order designating
12-13    a priority groundwater management area, the Texas Agricultural
12-14    Extension Service shall begin an educational program within the
12-15    area with the assistance and cooperation of the Texas Water
12-16    Development Board, the commission, the Department of Agriculture,
12-17    other state agencies, and existing districts to inform the
12-18    residents of the status of the area's water resources and
12-19    management options including possible formation of a district.
12-20          (e)  Following the issuance of a commission order under
12-21    Subsection (b), the landowners in the priority groundwater
12-22    management area may:
12-23                (1)  create one or more districts under Subchapter B,
12-24    Chapter 36;
12-25                (2)  have the area annexed to a district that adjoins
12-26    the area; or
12-27                (3)  create one or more districts through the
12-28    legislative process.
12-29          (f) [(d)]  The commission shall identify the areas subject to
12-30    the order of the commission issued under Subsection (b) that have
12-31    not been incorporated into a district and shall delineate proposed
12-32    boundaries of a district to include those areas.  [If the
12-33    commission proposes the creation of one or more districts, the
12-34    Texas Agricultural Extension Service shall begin an educational
12-35    program within such areas with the assistance and cooperation of
12-36    the Texas Water Development Board, the commission, other state
12-37    agencies, and existing districts to inform the residents of the
12-38    status of the area's water resources and management options
12-39    including possible formation of a district, before beginning the
12-40    procedures for creation of a district provided in Subchapter B,
12-41    Chapter 36.]
12-42          (g) [(e)]  If the commission fails to find that the district
12-43    would be a benefit to the land and other property within the
12-44    priority groundwater management area, that there is a public need
12-45    for the district, or that creation of the district will further the
12-46    public welfare, the commission shall issue an order stating that a
12-47    district should not be created within the boundaries of the
12-48    priority groundwater management area.
12-49          (h) [(f)]  An order of the commission issued under this
12-50    section may not be appealed.
12-51          SECTION 29.  Section 36.014, Water Code, is amended to read
12-52    as follows:
12-53          Sec. 36.014.  NOTICE AND HEARING ON DISTRICT CREATION.
12-54    [(a)]  If a petition is filed under Section 36.013 or the
12-55    commission proposes that a district be created under Section
12-56    35.012(b), the commission shall give notice of the [an] application
12-57    or proposal as required by Section 49.011(a) and may conduct a
12-58    hearing on the application or proposal if the commission determines
12-59    that a hearing is necessary under Section 49.011.
12-60          [(b)  If the petition contains a request to create a
12-61    management area in all or part of the proposed district, the notice
12-62    must also be given in accordance with the requirements in Section
12-63    35.006 for the designation of management areas.]
12-64          SECTION 30.  Section 36.015, Water Code, is amended to read
12-65    as follows:
12-66          Sec. 36.015.  FINDINGS.  (a)  If the commission finds that a
12-67    district requested by petition or proposed by the commission is
12-68    feasible and practicable, [that it] would be a benefit to the land
12-69    in the district, and [that it] would be a public benefit or
 13-1    utility, the commission shall issue an order containing these
 13-2    findings granting the petition or adopting the proposal, as
 13-3    appropriate.
 13-4          (b)  If the commission finds that a district is not feasible
 13-5    and practicable, that it would not be a benefit to the land in the
 13-6    district, that it would not be a public benefit or utility, or that
 13-7    it is not needed, the commission by order shall deny the petition
 13-8    or reject the proposal, as appropriate.
 13-9          (c)  The commission may adjust the boundaries of the proposed
13-10    district to exclude any land that would not be benefited by
13-11    inclusion in the district and is not necessary to the district for
13-12    proper regulation of the groundwater reservoir.
13-13          (d)  If the commission grants the petition or adopts the
13-14    proposal to create the district, it shall direct in its order
13-15    creating the district that an election be called by the temporary
13-16    directors to confirm the creation of the district and to elect
13-17    permanent directors.
13-18          (e)  [The refusal to grant a petition to create a district
13-19    does not invalidate or affect the designation of any management
13-20    area requested in the same petition.]
13-21          [(f)]  The commission shall act on the petition or its
13-22    proposal within a reasonable amount of time.
13-23          SECTION 31.  Subchapter D, Chapter 36, Water Code, is amended
13-24    by adding Section 36.1074 to read as follows:
13-25          Sec. 36.1074.  EXTENSION OF DISTRICT AUTHORITY TO ADDITIONAL
13-26    AQUIFERS WITHIN DISTRICT'S GEOGRAPHIC BOUNDARIES.  (a)  The
13-27    commission by rule shall establish a procedure by which a district
13-28    created by special law may petition to extend the district's
13-29    authority to include management of any aquifer within the
13-30    geographic boundaries of the district the management of which is
13-31    not provided for by the special law creating any district.
13-32          (b)  Rules adopted by the commission under this section shall
13-33    establish grounds for a petition described by Subsection (a),
13-34    including:
13-35                (1)  a change in pumping conditions;
13-36                (2)  a change in water quality conditions;
13-37                (3)  a finding that another aquifer is affecting water
13-38    levels in the primary managed aquifer; and
13-39                (4)  other grounds the commission may specify.
13-40          (c)  A petition under this section may be granted only by
13-41    order of the commission.
13-42          SECTION 32.  Section 36.0151, Water Code, is amended to read
13-43    as follows:
13-44          Sec. 36.0151.  NOTICE OF CREATION BY COMMISSION OF DISTRICT
13-45    FOR PRIORITY GROUNDWATER MANAGEMENT AREA.  [(a)  If the commission
13-46    proposes that a district be created under Section 35.012(d), it
13-47    shall in its order creating the district provide that temporary
13-48    directors be appointed under Section 36.016 and that an election be
13-49    called by the temporary directors to confirm the creation of the
13-50    district and to elect permanent directors.]
13-51          [(b)]  The commission shall notify the county commissioners
13-52    court of each county with territory in the district of the
13-53    district's creation as soon as practicable after issuing the order
13-54    under Section 36.015(a) creating a [the] district proposed by the
13-55    commission under Section 35.012(b).
13-56          SECTION 33.  Section 36.108, Water Code, is amended to read
13-57    as follows:
13-58          Sec. 36.108.  Joint Planning in Management Area OR PRIORITY
13-59    GROUNDWATER MANAGEMENT AREA.  (a)  If two or more districts are
13-60    located within the boundaries of the same management area or
13-61    priority groundwater management area, each district shall prepare a
13-62    comprehensive management plan as required by Section 36.1071
13-63    covering that district's respective territory.  On completion of
13-64    the plan, each district shall forward a copy of the new revised
13-65    management plan to the other districts in the management area or
13-66    priority groundwater management area.
13-67          (b)  The board of directors of each district in the
13-68    management area or priority groundwater management area may, by
13-69    resolution, call a joint meeting with the boards of directors of
 14-1    the other districts in the management area or priority groundwater
 14-2    management area to review the management plans and accomplishments
 14-3    for the management area or priority groundwater management area.
 14-4    The boards shall meet to consider the plans individually and shall
 14-5    compare them to other management plans then in force in the
 14-6    management area.  In reviewing the management plans, the boards
 14-7    shall consider:
 14-8                (1)  the goals of each management plan and its impact
 14-9    on planning throughout the management area or priority groundwater
14-10    management area;
14-11                (2)  the effectiveness of the measures established by
14-12    each management plan for conserving and protecting groundwater and
14-13    preventing waste, and the effectiveness of these measures in the
14-14    management area or priority groundwater management area generally;
14-15    and
14-16                (3)  any other matters that the boards consider
14-17    relevant to the protection and conservation of groundwater and the
14-18    prevention of waste in the management area or priority groundwater
14-19    management area.
14-20          (c)  A joint meeting of the boards of directors must be held
14-21    in accordance with the Open Meetings Act, Chapter 551, Government
14-22    Code.  Notice of the meeting shall be given in accordance with the
14-23    requirements for notice of district board of directors meetings
14-24    under that Act.  In addition, notice of the meeting shall be
14-25    published not later than the 30th day before the date of the
14-26    scheduled meeting in a newspaper with general circulation in each
14-27    county in the management area or priority groundwater management
14-28    area.
14-29          (d)  A district in the management area or priority
14-30    groundwater management area may file a petition with the commission
14-31    requesting an inquiry if the petitioner district believes that:
14-32                (1)  another district in the management area or
14-33    priority groundwater management area has failed to adopt rules;
14-34                (2)  the groundwater in the management area or priority
14-35    groundwater management area  is not adequately protected by the
14-36    rules adopted by another district; or
14-37                (3)  the groundwater in the management area or priority
14-38    groundwater management area is not adequately protected due to the
14-39    failure of another district to enforce substantial compliance with
14-40    its rules.
14-41          (e)  Not later than the 90th day after the date the petition
14-42    is filed, the commission shall review the petition and either:
14-43                (1)  dismiss it if it finds that the evidence is not
14-44    adequate to show that any of the conditions alleged in the petition
14-45    exist; or
14-46                (2)  select a review panel as provided in Subsection
14-47    (f).
14-48          (f)  The commission may appoint a review panel consisting of
14-49    a chairman and four other members.  A director or general manager
14-50    of a district located outside the management area or priority
14-51    groundwater management area that is the subject of the petition may
14-52    be appointed to the review panel.  The commission may not appoint
14-53    more than two members of the review panel from any one district.
14-54    The commission also shall appoint a disinterested person to serve
14-55    as a nonvoting recording secretary for the review panel.  The
14-56    recording secretary may be an employee of the commission.  The
14-57    recording secretary shall record and document the proceedings of
14-58    the panel.
14-59          (g)  Not later than the 120th day after appointment, the
14-60    review panel shall review the petition and any evidence relevant to
14-61    the petition and, in a public meeting, prepare a report to the
14-62    commission.  The commission may direct the review panel to conduct
14-63    public hearings at a location in the management area or priority
14-64    groundwater management area to take evidence on the petition.  The
14-65    review panel may attempt to negotiate a settlement or resolve the
14-66    dispute by any lawful means.
14-67          (h)  In its report, the review panel shall include:
14-68                (1)  a summary of all evidence taken in any hearing on
14-69    the petition;
 15-1                (2)  a list of findings and recommended actions
 15-2    appropriate for the commission to take and the reasons it finds
 15-3    those actions appropriate; and
 15-4                (3)  any other information the panel considers
 15-5    appropriate.
 15-6          SECTION 34.  Section 341.047, Health and Safety Code, is
 15-7    transferred to Subchapter E, Chapter 7, Water Code, redesignated as
 15-8    Section 7.1605, Water Code, and amended to read as follows:
 15-9          Sec. 7.1605 [341.047].  VIOLATIONS RELATING TO PUBLIC
15-10    DRINKING WATER [CRIMINAL PENALTY].  (a)  A person commits an
15-11    offense if the person:
15-12                (1)  violates a provision of Section 341.031, Health
15-13    and Safety Code;
15-14                (2)  violates a provision of Section 341.032(a) or (b),
15-15    Health and Safety Code;
15-16                (3)  violates a provision of Section 341.033(a)-(f),
15-17    Health and Safety Code;
15-18                (4)  constructs a drinking water supply system without
15-19    submitting completed plans and specifications as required by
15-20    Section 341.035(c), Health and Safety Code;
15-21                (5)  begins construction of a drinking water supply
15-22    system without the commission's approval as required by Section
15-23    341.035(a), Health and Safety Code;
15-24                (6)  violates a provision of Section 341.0351 or
15-25    341.0352, Health and Safety Code;
15-26                (7)  fails to remove a sign as required by Section
15-27    341.0354, Health and Safety Code; or
15-28                (8)  violates a provision of Section 341.036, Health
15-29    and Safety Code.
15-30          (b)  An offense under Subsection (a) is a Class C
15-31    misdemeanor.
15-32          (c)  If it is shown on a trial of the defendant that the
15-33    defendant has been convicted of an offense under Subsection (a)
15-34    within a year before the date on which the offense being tried
15-35    occurred, the subsequent offense under Subsection (a) is a Class B
15-36    misdemeanor.
15-37          (d)  Each day of a continuing violation is a separate
15-38    offense.
15-39          SECTION 35.  Section 341.048, Health and Safety Code, is
15-40    amended to read as follows:
15-41          Sec. 341.048.  VIOLATION [CIVIL ENFORCEMENT].  [(a)]  A
15-42    person may not cause, suffer, allow, or permit a violation of this
15-43    subchapter or a rule or order adopted under this subchapter.
15-44          [(b)  A person who causes, suffers, allows, or permits a
15-45    violation under this subchapter shall be assessed a civil penalty
15-46    of not less than $50 nor more than $1,000 for each violation.  Each
15-47    day of a continuing violation is a separate violation.]
15-48          [(c)  If it appears that a person has violated, is violating,
15-49    or threatens to violate a provision under this subchapter, the
15-50    commission, a county, or a municipality may institute a civil suit
15-51    in a district court for:]
15-52                [(1)  injunctive relief to restrain the person from
15-53    continuing the violation or threat of violation;]
15-54                [(2)  the assessment and recovery of a civil penalty;
15-55    or]
15-56                [(3)  both injunctive relief and a civil penalty.]
15-57          [(d)  The commission is a necessary and indispensable party
15-58    in a suit brought by a county or municipality under this section.]
15-59          [(e)  On the commission's request, the attorney general shall
15-60    institute a suit in the name of the state for injunctive relief, to
15-61    recover a civil penalty, or for both injunctive relief and civil
15-62    penalty.]
15-63          [(f)  The suit may be brought in:]
15-64                [(1)  Travis County;]
15-65                [(2)  the county in which the defendant resides; or]
15-66                [(3)  the county in which the violation or threat of
15-67    violation occurs.]
15-68          [(g)  In a suit under this section to enjoin a violation or
15-69    threat of violation of this subchapter, the court shall grant the
 16-1    state, county, or municipality, without bond or other undertaking,
 16-2    any injunction that the facts may warrant including temporary
 16-3    restraining orders, temporary injunctions after notice and hearing,
 16-4    and permanent injunctions.]
 16-5          [(h)  Civil penalties recovered in a suit brought under this
 16-6    section by a county or municipality shall be equally divided
 16-7    between:]
 16-8                [(1)  the state; and]
 16-9                [(2)  the county or municipality that first brought the
16-10    suit.]
16-11          SECTION 36.  Section 5.507, Water Code, is amended to read as
16-12    follows:
16-13          Sec. 5.507.  Emergency Order for Operation of Utility That
16-14    Discontinues Operation or is Referred for Appointment of Receiver.
16-15    The commission may issue an emergency order appointing a willing
16-16    person to temporarily manage and operate a utility under Section
16-17    7.404 [13.4132].  Notice of the action is adequate if the notice is
16-18    mailed or hand delivered to the last known address of the utility's
16-19    headquarters.
16-20          SECTION 37.  Subsection (a), Section 5.508, Water Code, is
16-21    amended to read as follows:
16-22          (a)  Notwithstanding the requirements of Section 13.187, the
16-23    commission may authorize an emergency rate increase for a utility
16-24    for which a person has been appointed under Section 5.507 or 7.404
16-25    [13.412] or for which a receiver has been appointed under Section
16-26    7.402 [13.4132] if the increase is necessary to ensure the
16-27    provision of continuous and adequate services to the utility's
16-28    customers.
16-29          SECTION 38.  Subsection (c), Section 341.0485, Health and
16-30    Safety Code, is amended to read as follows:
16-31          (c)  The comptroller shall manage the account for the benefit
16-32    of the commission and shall invest the money and deposit interest
16-33    and other investment proceeds in the account.  The comptroller
16-34    shall release money from the account in the manner provided by the
16-35    commission.  Money in the account may be used only for:
16-36                (1)  capital improvements to the water or sewer system
16-37    of a utility that has paid fines or penalties under this chapter or
16-38    under Chapter 13, Water Code, that have been deposited in the
16-39    account; or
16-40                (2)  capital improvements and operating and maintenance
16-41    expenses for a utility placed in receivership or under a temporary
16-42    manager under Section 7.404 [13.4132], Water Code.
16-43          SECTION 39.  (a)  The following sections of the Water Code
16-44    are repealed:
16-45                (1)  Section 11.082;
16-46                (2)  Sections 11.0841 and 11.0842;
16-47                (3)  Section 11.148;
16-48                (4)  Section 13.411;
16-49                (5)  Section 13.4133;
16-50                (6)  Sections 13.4151 and 13.416;
16-51                (7)  Sections 13.417 and 13.418; and
16-52                (8)  Sections 35.004, 35.005, and 35.006.
16-53          (b)  Sections 341.049 and 341.050, Health and Safety Code,
16-54    are repealed.
16-55          SECTION 40.  This Act takes effect September 1, 1999.
16-56          SECTION 41.  (a)  The changes in law made by this Act apply
16-57    only to an offense committed or a violation or threat of violation
16-58    that occurs on or after September 1, 1999.  For purposes of this
16-59    section an offense is committed and a violation or threat of
16-60    violation occurs before September 1, 1999, if any element of the
16-61    offense, violation, or threat of violation occurs before that date.
16-62          (b)  An offense committed or a violation or threat of
16-63    violation that occurred before September 1, 1999, is covered by the
16-64    law in effect when the offense was committed or the violation or
16-65    threat of violation occurred, and the former law is continued in
16-66    effect for that purpose.
16-67          SECTION 42.  The importance of this legislation and the
16-68    crowded condition of the calendars in both houses create an
16-69    emergency and an imperative public necessity that the
 17-1    constitutional rule requiring bills to be read on three several
 17-2    days in each house be suspended, and this rule is hereby suspended.
 17-3                                 * * * * *