SRC-MWN S.B. 2 77(R) BILL ANALYSIS
Senate Research Center S.B. 2
By: Brown, J. E. "Buster"
Natural Resources
3/25/2001
As Filed
DIGEST AND PURPOSE
Texas currently faces many water challenges. The 75th Texas Legislature
enacted a major water planning bill, S.B. 1, in 1999. As proposed, S.B. 2
addresses the implementation and financing of the water strategies and
recommendations identified in the last four years by Texas' 16 regional
water planning groups.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Natural Resource
Conservation Commission in SECTION 2.08 (Section 11.138, Water Code); the
governing body of a water authority in SECTION 2.16 (Section 16.053, Water
Code); groundwater conservation districts in SECTION 2.45 (Section 36.116,
Water Code); the Texas Water Development Board in SECTION 4.01 (Section
15.907, Water Code) and SECTION 4.02 (Section 15.995, Water Code), and the
Texas Water Policy Council in SECTION 5.02 of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1.01. Amends Title 2A, Water Code, by adding Chapter 9, as follows:
CHAPTER 9. TEXAS WATER POLICY COUNCIL
Sec. 9.001. DEFINITION. Defines "authority," "board," "commission," and
"council."
Sec. 9.002. CREATION AND MEMBERSHIP. Provides that the Texas Water Policy
Council (council) is composed of certain members. Prohibits council members
from delegating participation or council duties to staff.
Sec. 9.003. TERMS. Provides that council members, except for the
commissioner of agriculture, who are officials of state agencies serve
terms as determined by the chairman of each agency. Provides that council
members who are members of the general public serve staggered six-year
terms with the term of one member expiring at a certain date. Authorizes
council members to be reappointed to serve additional terms. Requires a
vacancy on the council to be filled by appointment by the original
appointing authority for the unexpired term.
Sec. 9.004. OFFICERS OF THE COUNCIL. Requires the governor to appoint a
council member as the chair of the council for a certain term expiring at a
certain date. Requires the council to have a secretary of the council who,
by virtue of the position, is to be a full-time employee of the Texas
Natural Resource Conservation Commission (commission) but to serve at the
pleasure of the council and be accountable only to the council.
Sec. 9.005. COUNCIL STAFF. Requires the commission and the Texas Water
Development Board (TWDB), on request of the council, to provide any staff
rather than the secretary of the council necessary to assist the council in
the performance of its duties.
Sec. 9.006. MEETINGS. Requires the council to meet at certain times.
Requires four members to constitute a quorum sufficient to conduct meetings
and the business of the council. Provides that the council is subject to
Chapters 551 (Open Meetings) and Chapter 2001 (Administrative Procedure),
Government Code.
Sec. 9.007. COMPENSATION OF MEMBERS. Requires members of the council to
serve without compensation but authorizes them to be reimbursed by
legislative appropriation for actual and necessary expenses related to the
performance of council duties. Requires reimbursement under this section to
be subject to the approval of the chair.
Sec. 9.008. POWERS AND DUTIES OF COUNCIL. Requires the council to perform
certain duties. Prohibits the council from performing certain acts.
Requires the council to evaluate the need for and, if appropriate, develop
a strategy for reorganizing or improving the efficiency of local, regional,
and state water management entities and agencies.
Sec. 9.009. REPORT. Requires the council, not later than December 1 of each
even-numbered year, to submit a report to certain persons with primary
responsibilities over water resource management and financing. Requires the
report to include findings of the council made in the periodic reviews of
authorities during the preceding two-year period and any other findings and
recommendations the council considers necessary.
Sec. 9.010. REVIEW OF AUTHORITIES. Requires the council, on a five-year
cycle, to review authorities based on the administrative policies provided
by Section 9.012 and performance standards described in Section 9.011.
Requires the reviews to be conducted of groups described in this section,
with group 1 being reviewed at the council's first quarterly meeting of the
five-year period and group 2 being reviewed at the council's third
quarterly meeting of the period. Requires the council to continue in
numerical order to review one group at every other quarterly meeting until
all ten groups have been reviewed and then to recommence the cycle.
Requires authorities to be reviewed under this section in certain groups.
Sec. 9.011. PERFORMANCE STANDARDS. Requires the council to review and
assess an authority described by Section 9.010 according to whether the
authority meets certain criteria. Requires the council in addition to the
review and assessment considerations under this section to consider whether
certain criteria is developed. Requires an authority, prior to its
five-year review under Section 9.010, to assess its compliance with the
standards described by this section and to report the results to the
council for use during the review.
Sec. 9.012. ADMINISTRATIVE POLICIES FOR AUTHORITIES. Requires each
authority subject to this chapter to submit to the council a copy of its
administrative policies and any subsequent amendments adopted by its board.
Requires the council to file copies of the administrative policies and to
make them available for public inspection. Authorizes the council to
request additional documents from an authority or inspect records at the
office of the authority to determine compliance with the adopted
administrative policies. Requires certain provisions to be incorporated
into the administrative policies adopted by the authorities subject to
these rules.
Sec. 9.013. GIFTS AND GRANTS. Authorizes the council to accept gifts and
grants from any source to carry out the purpose of the chapter. Provides
that the use of gifts and grants other than legislative appropriations is
subject only to limitations contained in the gift or grant.
Sec. 9.014. FUNDING. Provides that the interagency water policy account is
a special account in the general revenue fund. Provides that the
interagency water policy account consists of legislative appropriations,
gifts, and grants received under Section 9.013, and other money required by
law to be deposited in the account. Authorizes funds in the interagency
water policy account to be used only as provided by this chapter.
Sec. 9.015. CONTINUING RIGHT OF SUPERVISION. Requires that nothing in this
chapter affect the continuing right of supervising river authorities by the
commission as provided by Section 12.081.
ARTICLE 2. SURFACE WATER AND GROUNDWATER
CONJUNCTIVE MANAGEMENT;
REGULATORY INCENTIVES
SECTION 2.01. Amends Section 11.002, Water Code, by adding Subdivisions
(7), (11), (12), and (13), to define "instream use," "river basin,"
"agriculture," and "agricultural use."
SECTION 2.02. Amends, Section 11.023(a), Water Code, to authorize state
water to be appropriated, stored, or diverted for certain purposes.
SECTION 2.03. Amends Section 11.024, Water Code, to provide that the public
welfare requires not only recognition of beneficial uses but also a
constructive public policy regarding the preferences between these uses,
and it is therefor declared to be the public policy of this state that in
appropriating state water preference to be given to certain uses, in order
to conserve and properly utilize state water.
SECTION 2.04. Amends Section 11.085(p) and (s) through (v), Water Code, to
delete text regarding a designation of a basin. Deletes text providing the
transfer of water is junior in priority to water rights and written
agreements or permits will be junior in priority. Provides that the
provisions of this section, except Subsection (a), do not apply to a
proposed transfer of newly developed water introduced into the basin
through seawater desalination. Makes nonsubstantive and conforming changes.
SECTION 2.05. Amends Section 11.1271(b), Water Code, to require the
commission to require the holder of an existing permit, certified filing,
or certificate of adjudication for the appropriation of surface water in
the amount of 1,000 acre-feet as year or more for municipal , industrial,
and other uses, and 10,000 acre-feet a year or more for irrigation uses, to
develop, submit, and implement a water conservation plan, consistent with
the state, rather than appropriate approved regional, water plan, that
adopts reasonable water conservation measures as defined by Section
11.002(8)(b).
SECTION 2.06. Amends Section 11.1272(a), Water Code, to make a conforming
change.
SECTION 2.07. Amends Section 11.134(b), Water Code, to require the
commission to grant the application only if the proposed appropriation
considers the assessments performed under Sections 11.147(d) and (e) and
Sections 11.150-11.152. Deletes text regarding an area proposed for
appropriation. Makes a nonsubstantive change.
SECTION 2.08. Amends Section 11.138(a), Water Code, to authorize the
commission by rule to authorize the beneficial use, without a permit, of
not more than 25 acre-feet of water, for a term not to exceed one year, if
the diversion of water will not effect existing water right holders and the
user of the water registers the use with the commission in the manner
required by the commission.
SECTION 2.09. Amends Section 11.142(a), Water Code, to provide that a
person who temporarily stores more than 200 acre-feet of water in a dam or
reservoir described by this subsection is not required to obtain a permit
for the dam or reservoir if the person can demonstrate that the person has
not stored in the dam or reservoir more than 200 acre-feet of water on
average in any 12-month period. Makes a nonsubstantive change.
SECTION 2.10. Amends Section 11.146, Water Code, by adding Subsection (g),
to provide that this section does not apply to a permit for construction of
a reservoir designed for the storage of more than 75,000 acre-feet of
water.
SECTION 2.11. Amends Section 11.1501, Water Code, to delete text regarding
regional water plans for the use of areas where the water is proposed to
be stored, diverted, or used.
SECTION 2.12. Amends Section 11.173(b), Water Code, to expand the reasons
for which a permit, certified filing, or certificate of adjudication or a
portion of a permit, certified filing, or certificate of adjudication may
be exempt from cancellations under Subsection (a).
SECTION 2.13. Amends Section 11.177(b), Water Code, to require the
commission, in determining what constitutes reasonable diligence or a
justified nonuse as used in Subsection (a)(2), to give consideration to
certain factors. Deletes text regarding the permit, certified filing, or
certificate of adjudication being obtained to meet demonstrated public
water supply and needs and obtained as the result of a construction of a
reservoir.
SECTION 2.14. Amends Section 16.012, Water Code, by adding Subsections (l)
and (m), as follows: (l) Requires the executive administrator to obtain or
develop groundwater availability models for major and minor aquifers in
coordination with regional water planning groups created under Section
16.053 that overlie the aquifers. Requires the executive administrator, on
completing a groundwater availability model for the aquifer, to provide the
model to each groundwater conservation district and each regional water
planning group created under Section 16.053 overlying that aquifer. (m)
Requires the executive administrator to conduct surveys of persons using
groundwater and surface water at intervals determined appropriate by the
executive administrator to gather data to be used for long-term water
supply planning. Requires recipients to complete and return the survey to
the executive administrator. Requires persons who fail to timely return the
survey to not be eligible for funding from the board for board programs and
to be ineligible to obtain permits, permit amendments, or permit renewals
from the commission under Chapter 11.
SECTION 2.15. Amends Section 16.051(a), (f), (g), and (h), to require the
board, no later than January 5, 2002, and before the end of each successive
five-year period after that date, rather than every five years, to prepare,
develop, formulate, and adopt a comprehensive state water plan that
incorporates the regional water plans approved under Section 16.053 to the
extent the board determines that such plans provide for the efficient use
and development of the groundwater and surface water resources of the
state. Provides that this designation solely means that a state agency or
political subdivision of the state is prohibited from financing the
construction of a reservoir in a stream segment designated by the
legislature under this subsection. Authorizes the legislature to designate
a site of unique value for the construction of a reservoir. Deletes text
regarding destroying the unique ecological value of a river or stream.
Authorizes the board, the commission, or the Parks and Wildlife Department
or a political subdivision affected by an action taken in violation of
Subsections (f) and (g) to bring a cause of action to remedy or prevent the
violation. Makes nonsubstantive changes.
SECTION 2.16. Amends Section 16.053(d) and (e), Water Code, to require the
board by rule to require certain permit holders, certificate holders, or
water suppliers to report to the board information on certain water
pipelines and other facilities that can be used for water conveyance.
Requires each regional water planning group to submit to the board a
regional water plan that identifies certain information.
SECTION 2.17. Amends Section 16.053(h)(8), Water Code, to require notice
required by Subdivisions (1), (3), or (6) of this subsection or by Section
16.0531 to be published or mailed to certain entities.
SECTION 2.18. Amends Section 16.053(j), Water Code, to delete text relating
to a board determination regarding a projects consistency with the regional
water plan.
SECTION 2.19. Amends Chapter 16A, Water Code, by adding Sections 16.0531
and 16.0532, as follows:
Sec. 16.0531. GROUNDWATER MANAGEMENT STANDARD. Requires each regional
water planning group, as part of a regional water plan required by Section
16.052(e), to adopt a groundwater management standard for each source of
groundwater that is a source of water for the regional planning area in
accordance with the guidelines provided by Sections 16.053(d) and (f).
Requires the groundwater management standards to describe the desired
condition of the groundwater source as indicated by indices of quantity of
water in the source, quality of water produced from the source, or
subsidence of the land surface. Requires the groundwater management
standard to describe this condition for various time periods throughout the
planning period. Requires a regional water planning group to consider the
groundwater management standards contained in certified groundwater
conservation plans submitted to the regional water planning group under
Section 16.054. Requires a regional water planning group, prior to the
adoption of groundwater management standards, to hold at least one public
meeting at a central location to gather suggestions and recommendations
from the public about what issues to consider with regard to groundwater
management standards after providing notice in accordance with Section
16.053(h)(8).
Sec. 16.0532. GROUNDWATER WITHDRAWAL RATE. Requires each regional water
planning group to determine groundwater withdrawal rates based on the
groundwater management standard adopted under Section 16.0531(a) for each
source of groundwater that is a source of water for the regional water
planning area in accordance with the guidelines provided by Sections
16.053(d) and (f). Requires the regional water planning groups to use
groundwater availability modeling information provided by the executive
administrator to determine these rates. Requires the groundwater withdrawal
rate to be the maximum rate of production that will allow the groundwater
management standard to be realized. Requires a groundwater withdrawal rate
to be set for various time periods throughout the planning period. Requires
the regional water planning group to consider the groundwater withdrawal
rates contained in certified groundwater conservation plans submitted to
the regional water planning group under Section 16.054.
SECTION 2.20. Amends Section 16.054(a), (c), and (d), Water Code, to
authorize the Department of Agriculture (TDA) to provide input and
assistance, as appropriate, for local water planning. Requires a person,
when preparing a plan to be submitted under this section, to consider the
implementation of a desalination program if practicable. Provides that when
preparing individual water plans that address drought or the development,
management, or conservation of water resources from the holders of existing
permits, certified filings, or certificates of adjudication, the water
suppliers, groundwater districts, special districts, irrigation districts,
and other water users should ensure that the plan is not in conflict with
the state water plan, rather than for their region, after January 5, 2002.
Makes conforming and nonsubstantive changes.
SECTION 2.21. Amends Section 18.081(b), Water Code, to authorize the
commission, if requested by at least 25 persons, to hold at least one
public meeting, rather than hearing, in the area where the operation is to
be conducted prior to the issuance of permit.
SECTION 2.22. Amends Section 35.002(11), Water Code, to redefine
"management area."
SECTION 2.23. Amends Section 35.004, Water Code, as follows:
Sec. 35.004. DESIGNATION OF MANAGEMENT AREAS. Requires the TWDB, with
assistance and cooperation from the commission, to designate groundwater
management areas covering all major and minor aquifers in the state.
Requires the initial designation of management areas to be completed by
September 1, 2003. Deletes text regarding the commission designating
groundwater management areas. Deletes text regarding the executive director
preparing evidence. Deletes text regarding Administrative Procedure Act,
Subchapter B. Makes conforming changes.
SECTION 2.24. Amends Sections 35.007(a) and (f), Water Code, to require the
executive director and the executive administrator to meet periodically to
identify, based on information gathered by the commission and the TWDB,
those areas of the state that are experiencing or that are expected to
experience, within the immediately following 25-year period, critical
groundwater problems, including shortages of surface water or groundwater,
land subsidence resulting from groundwater withdrawal, and contamination of
groundwater supplies. Requires the commission, with assistance and
cooperation from the TWDB, by September 1, 2005, to complete the initial
designation of priority groundwater management areas across all major and
minor aquifers of the state for all areas that meet the criteria for such
designation. Authorizes the studies to be prioritized considering
information from the regional planning process, information from the TWDB
groundwater management areas and groundwater conservation districts, and
any other information available. Requires the commission and the TWDB,
after the initial designation of priority groundwater management areas, to
annually review the need for additional designations as provided by this
subsection. Requires the report to include certain information.
SECTION 2.25. Amends Section 35.008, Water Code, as follows:
Sec. 35.008. New heading: PROCEDURES FOR DESIGNATION OF PRIORITY
GROUNDWATER MANAGEMENT AREA; CONSIDERATION OF CREATION OF NEW DISTRICT OR
ADDITION OF LAND N PRIORITY GROUNDWATER MANAGEMENT AREA TO EXISTING
DISTRICT; COMMISSION ORDER. Requires the commission to call an evidentiary
hearing to consider certain issues. Requires affected persons to include
landowners and well owners in the proposed priority groundwater management
area. Requires any evidentiary hearing to be concluded not later than the
75th day after the date notice of the hearing is published. Require the
commission, at the conclusion of the hearing and the commission's
consideration, to issue an order stating its findings and conclusions,
including whether a priority groundwater management area should be
designated in the area and recommendations regarding district creation as
set forth in this section. Requires the commission's order designating a
priority groundwater management area to recommend that the area be covered
by a district in certain ways. Requires the commission, in recommending the
boundaries of a district or districts under this section, to give
preference to boundaries that are coterminous with those of the priority
groundwater management area, but are authorized to recommend district
boundaries along existing political subdivision boundaries at the
discretion of the commission to facilitate district creation and
confirmation. Makes a conforming change.
SECTION 2.26. Amends Sections 35.009(a) and (b), Water Code, to require
notice to be published not later than the 30th day before the date set for
the hearing. Deletes text regarding the creation of a district or an
addition to an existing district. Deletes text regarding the commission
considering the designation of priority groundwater management area. Makes
a conforming change.
SECTION 2.27. Amends Section 35.012, Water Code, as follows:
Sec. 35.012. New heading: CREATION OF DISTRICT IN PRIORITY GROUNDWATER
MANAGEMENT AREA. Authorizes the landowners in the priority groundwater
management area, following the issuance of a commission order under Section
35.008 designating a priority groundwater management area and recommending
the creation of one or more districts, or the addition of land to an
existing district, to perform certain procedures. Deletes text regarding
the commission issuing an order of its findings and conclusions. Requires
the commission, within two years, but no sooner than 120 days, from the
date on which the commission issues an order under Section 35.008
designating a priority groundwater management area, for those areas that
are not within a district, to perform certain duties. Requires the Texas
Agricultural Extension Service, following the issuance of a commission
order under Section 35.008, to begin an educational program within such
areas with the assistance and cooperation of certain entities to inform the
residents of the status of the area's water resources and management
options including formation of a district. Deletes text regarding the
commission identifying the areas that have not been incorporated. Requires
the county commissioners court of each county in the priority groundwater
management area to form a steering committee to provide assistance to the
Texas Agricultural Extension Service in accomplishing the goals of the
education program within the area. Deletes text regarding the commission
issuing an order.
SECTION 2.28. Amends Section 35.013, Water Code, to require the commission,
if the commission in its order under Section 35.008 recommends that the
priority groundwater management area, or a portion of the priority
groundwater district, be added to an existing district, to give notice to
the board of the existing district recommended in its order and to any
other existing districts adjacent to the priority groundwater management
area. Deletes text a reference to the "executive director." Deletes text
regarding commission adding a priority area to an adjacent existing
district. Requires the board, if the board votes to accept the addition of
the priority groundwater management area to the district, to perform
certain procedures. Provides that if the proposition is defeated, or if the
board of the existing district votes not to accept the addition of the area
to the district, then the commission is required, except as provided under
this section, to create under Section 36.0151 one or more districts
covering the priority groundwater management area within one year of the
date on which the proposition is defeated or the board votes not to accept
the area. Requires the commission, for an area which is not feasible for
the creation of one or more districts as determined in the commission's
findings under Section 35.008, to include in its report under Section
35.018 recommendations for the future management of the priority
groundwater management area. Makes nonsubstantive and conforming changes.
SECTION 2.29. Amends Section 35.018(c), Water Code, to authorize the
commission, if the commission determines that a district created under
Chapter 36 is not appropriate for, or capable of, the protection of the
groundwater resources for a particular management area or priority
groundwater management area, to recommend in its report to the legislature
the creation of a special district or amendment of an existing district.
Deletes text regarding voters failing to create a groundwater district.
Deletes text regarding a requirement that the commission manage the
priority groundwater management area.
SECTION 2.30. Amends Section 36.001, Water Code, by amending Subdivision
(13) and adding Subdivisions (18), (19), and (20), to redefine "management
area," and define "river basin," "agriculture," and "agricultural use."
SECTION 2.31. Amends Section 36.002, Water Code, to provide that the
ownership and rights of the owners of the land and their leases and assigns
in groundwater are hereby recognized, and nothing in this code is to be
construed as depriving or divesting the owners of their leases and assigns
of the ownership of rights, except as such rights are authorized to be
limited or altered by rues promulgated by a district. Makes a
nonsubstantive change.
SECTION 2.32. Amends Section 36.011(b), Water Code, to delete text
regarding delineation of management areas.
SECTION 2.33. Amends Section 36.012, Water Code, by adding Subsection (f),
to provide that this section does not apply to districts created under
Section 36.0151.
SECTION 2.34. Amends Section 36.014, Water Code, to require the commission,
if a petition is filed under Section 36.013, to give notice of an
application as required by Section 49.011(a) and to require, rather than
authorize, the commission to conduct an evidentiary hearing in a central
location within the area of the proposed district on the application not
later than the 120th day after the date the commission issues notice,
rather than if the commission determines that a hearing is necessary,
under Section 49.011(a). Requires the commission, at the evidentiary
hearing, to receive evidence from affected persons. Deletes text regarding
a petition containing a request. Makes nonsubstantive changes.
SECTION 2.35. Amends Section 36.015, Water Code, as follows:
Sec. 36.015. New heading: CREATION OF A DISTRICT BY PETITION; COMMISSION
FINDING AND ORDER. Requires the commission, at the completion of an
evidentiary hearing held under Section 36.014, to consider the evidence
received at the hearing. Authorizes the commission, if the commission
considers further information necessary, to request such information from
any source. Deletes text regarding the commission finding a district
feasible and practicable. Requires the commission, within 120 days of the
date the commission held the evidentiary hearing under Section 36.014, to
perform certain duties. Requires the commission, if the commission issues
an order denying an order denying the petition, to provide the petitioners,
in writing, the reasons for the action. Requires the commission, in
delineating district boundaries, to give preference to boundary lines that
are coterminous with those of a groundwater management area, but authorizes
the desalination of such boundaries along existing political subdivision
boundaries at the discretion of the commission to facilitate district
creation and confirmation. Authorizes the commission, if the petition
requests additional terms or conditions restricting the powers of the
district that are different from the terms or conditions provided by this
chapter and the commission finds that the requested restriction of powers
would still allow the district to properly mange the groundwater resources
within the district, to specify in its order creating the district the
powers provided in this chapter that do not apply to the district. Deletes
text regarding the commission acting on a petition.
SECTION 2.36. Amends Section 36.0151(a), Water Code, to provide that if the
commission is required to create a district under Section 35.012(b), rather
than 35.012(d), it is required, without an evidentiary hearing, to issue an
order creating the district and to provide in its order that temporary
directors be appointed under Section 36.016 and that an election be called
by the temporary directors to authorize the district to assess taxes,
rather than confirm the creation of the district, and to elect permanent
directors. Makes nonsubstantive changes.
SECTION 2.37. Amends the Section heading and Sections 36.017(a) and (d),
Water Code, as follows:
Sec. 36.017. New heading: CONFIRMATION AND DIRECTORS' ELECTION FOR DISTRICT
IN A MANAGEMENT AREA. Requires the temporary directors, for a district
created under Section 36.015, not later than the 120th, rather than the
60th, day after the date all temporary directors have been appointed and
have qualified, to meet and order an election to be held within the
boundaries of the proposed district to approve the creation of the district
and to elect permanent directors. Provides that if the district levies a
maintenance tax for payment of its expenses, then an additional proposition
is required to be included with certain language. Makes nonsubstantive
changes.
SECTION 2.38. Amends Chapter 36B, Water Code, by adding Section 36.0171, as
follows:
Sec. 36.0171. TAX AUTHORITY AND DIRECTORS' ELECTION FOR DISTRICT IN A
PRIORITY GROUNDWATER MANAGEMENT AREA. Requires the temporary directors, for
a district created under Section 36.0151, not later than the 120th day
after the date all temporary directors have been appointed and have
qualified, to meet and order an election to be held within the boundaries
of the proposed district to approve the creation of the district and to
elect permanent directors. Require the temporary directors to publish
notice of the election at least once in at least one newspaper with general
circulation within the boundaries of the proposed district. Requires the
notice to be published before the 30th day preceding the date of the
election. Requires the ballot for the election to be printed to provide for
voting or against a proposition with certain language. Requires the
presiding judge of the polling place, immediately after the election, to
deliver the returns of the election to the temporary board, and the board
to canvass the returns and declare the result. Requires the board to file a
copy of the election result with the commission. Requires the temporary
board, if a majority of the votes cast at the election favor the levy of a
maintenance tax, to declare the levy approved and to enter the result in
its minutes. Requires the temporary board, if a majority of the votes cast
at the election are against the levy of a maintenance tax, to declare the
levy defeated and to enter the result in its minutes. Requires the
district, if the majority of the votes cast at the election are against the
levy of a maintenance tax, to set permit fees to pay for the district's
regulation of groundwater in the district, including fees based on the
amount of water to be withdrawn from a well.
SECTION 2.39. Amends Section 36.019, Water Code, to provide that this
section does not apply to districts created under Section 36.0151.
SECTION 2.40. Amends Section 36.066(g), Water Code, to provide that the
district, if the district prevails in any suit other than a suit in which
it voluntarily intervenes, may seek and the court shall grant, in the same
action, recovery for attorney's fees, costs for expert witnesses, and other
costs incurred by the district before the court. Makes conforming changes.
SECTION 2.41. Amends Section 36.101(a), Water Code, to authorize a district
to make and enforce rules, including rules limiting groundwater production
based on the tract size or the spacing of wells, to provide for conserving,
preserving, protecting, and recharging of the groundwater or of a
groundwater reservoir or its subdivisions in order to control subsidence or
prevent waste of groundwater and to carry out the powers and duties
provided by this chapter.
SECTION 2.42. Amends Sections 36.102(b) and (d), Water Code, to authorize
the board by rule to set reasonable civil penalties for breach of any rule
of the district not to exceed $5,000 per day per violation, and provides
that each day of a continuing violation constitutes a separate violation.
Authorizes the district, in addition to this penalty or any other penalty
provided by law, to seek and the court to grant a penalty equal to 115
percent of the economic benefit gained from the violation. Deletes text
regarding jurisdiction of a justice court. Provides that the district, if
the district prevails in any suit to enforce its rules, may seek and the
court shall grant, in the same action, recovery for attorney's fees, costs
for expert witnesses, and other costs incurred by the district before the
court.
SECTION 2.43. Amends Section 36.1071, Water Code, by amending Subsections
(a), (b), and (e), to require the district, following notice and hearing,
in coordination with surface water management entities on a regional basis,
to develop a comprehensive management plan which addresses certain
management goals, as applicable including conservation. Requires a district
management plan, after January 5, 2002, or any amendments to a district
management plan, to be consistent with the state, rather than regional,
water plan. Deletes text regarding a regional water plan. Requires the
district, in the management plan described under this section, to perform
certain procedures. Requires the groundwater management plan standard to
describe the desired condition of the groundwater source as indicated by
indices of quantity of water in the source, quality of water produced from
the source, and subsidence of the land surface for various periods
throughout the time period covered by the plan.
SECTION 2.44. Amends Section 36.108, Water Code, to require each district,
on completion and certification of the plan as required by Section 36.1072,
to forward a copy of the new or revised management plan to the other
districts in the management area. Requires the boards of the districts to
consider the plans individually and to compare them to other management
plans then force in the management area. Provides that the board of
directors of each district in the management area is authorized, by
resolution, to call for joint planning, rather than a meeting, with other
districts in the management area to review the management plans and
accomplishments for the management area. Deletes text regarding boards of
directors. Deletes text requiring the boards to meet. Requires the meeting,
if a joint meeting of the boards of directors is called, to be held in
accordance with Chapter 551 (Open Meetings), Government Code. Authorizes a
district in the management area to file with good cause a petition with the
commission requesting an inquiry if the petitioner district adopted a
resolution calling for joint planning, and other district or districts
either refused to join in the planning process or the process failed to
result in adequate planning, and the petition provides evidence that
certain conditions exist. Requires the commission, if the petition is not
dismissed under this section, to appoint a review panel consisting of a
chairman and four other members. Requires the review panel, not later than
the 120th day after the appointment, to review the petition and any
evidence relevant to the petition and, in a public meeting, consider and
adopt, rather than prepare, a report to be submitted to the commission.
Requires the review panel to submit its report to the commission.
Authorizes districts located within the same management areas or in
adjacent management areas, to contract to jointly conduct studies or
research, or to construct projects, under terms and conditions that the
districts consider beneficial. Authorizes such joint efforts to include
certain studies of groundwater availability and quality. Authorizes the
districts to contract under existing authorization including those of
Chapter 791 (Interlocal Cooperation Contracts), Government Code, provided ,
however, that their contracting authority is not limited by Sections
791.011(c)(2) (An interlocal contract may provide a governmental function
or service), 791.011(d)(3) (An interlocal contract must specify certain
function or services), and Section 791.014 (Approval Requirement for
Counties), Government Code. Makes a nonsubstantive change.
SECTION 2.45. Amends Section 36.116, Water Code, to authorize a district by
rule to take certain actions to regulate the spacing of wells, in order to
minimize as far as practicable the drawdown of the water table or the
reduction of artesian pressure, to control subsidence, to prevent
interference between wells, to prevent degradation of water quality, or to
prevent waste.
SECTION 2.46. Amends Section 36.122, Water Code, to authorize the district,
if a permit or an amendment to a permit under Section 36.113 proposes to
transfer groundwater outside of a district's boundaries, to also consider
the provisions of this section in determining whether to grant or deny the
permit. Authorizes a district to promulgate rules requiring a person to
obtain a permit or an amendment to a permit under Section 36.113 from the
district for the transfer of groundwater out of the district to achieve
certain conditions. Prohibits the district from imposing more restrictive
permit conditions on transporters than the district imposes on existing
in-district use. Prohibits the fee from exceeding fees that the district
imposes for processing other applications under Section 36.113. Requires an
application filed to comply with this section to be considered and
processed under the same procedures as other applications filed to obtain a
permit for in-district water use under Section 36.113 from the same
applicant. Authorizes a district to impose a reasonable fee or surcharge
for an export fee not to exceed certain amounts. Prohibits a district from
imposing a fee under this section on withdrawal of water from land owned
prior to March 1, 2001, by a political subdivision if the political
subdivision pays a tax mitigation fee under Section 36.206(c). Deletes text
regarding the district giving notice of the application. Prohibits the
district from denying a permit based on the fact that the applicant seeks
to transfer groundwater outside of the district. Deletes text regarding
limiting a permit issued. Requires the specified period to be at certain
intervals. Requires a term of five years under this section to
automatically be extended to 30 years if construction of a conveyance
system is begun before the expiration of the initial five-year term.
Require the district, in its determination of whether to renew a permit
issued under this section, to consider relevant and current data for the
conservation of groundwater resources and to consider the permit in the
same manner it would consider any other permit in the district. Provides
that a district is prohibited from using revenues obtained under this
section to prohibit the transfer of groundwater outside of a district.
Requires a district that charges a fee under this section to provide 50
percent of any revenues resulting such fee to the water infrastructure fund
annually beginning September 1, 2002. Deletes text stating a district may
not prohibit the export of groundwater if the purchase was in effect on or
before June 1, 1997. Makes a conforming change.
SECTION 2.47. Amends Section 36.206, Water Code, by adding Subsection (c),
to require political subdivisions that own property that is suitable for
groundwater development to annually pay a district in which the property is
located a fee that is equal to the taxes that would be paid to the district
if the land were not owned by a political subdivision.
SECTION 2.48. Amends Chapter 36I, Water Code, by adding Section 36.3011, as
follows:
Sec. 36.3011. FAILURE OF A DISTRICT TO CONDUCT JOINT PLANNING. Requires the
commission, if the board of a district within a common management area
fails to forward a copy of its new or revised certified management plan
under Section 36.108, to take appropriate action under Section 36.303.
Requires the executive director or the commission, within 45 days after
receiving the review panel's report under Section 36.108, to take action to
implement any or all of the panel's recommendations. Authorizes the
commission to take any action it considers necessary in accordance with
Section 36.303, if the commission finds that a district in the joint
planning area has failed to adopt rules, the groundwater in the management
area is not adequately protected by the rules adopted by the district, or
the groundwater in the management area is not adequately protected because
of the district's failure to enforce substantial compliance with its rules.
SECTION 2.49. Amends Section 36.303(a), Water Code, to add additional items
to the list of actions the commission may take, after notice and hearing in
accordance with Chapter 2001 (Administrative Procedure), Government Code,
if Section 36.109, 36.301, or 36.302(f) applies.
SECTION 2.50. Amends Chapter 36I, Water Code, by adding Section 36.3035, as
follows:
Sec. 36.3035. APPOINTMENT OF A RECEIVER. Requires a district court, if the
attorney general brings a suit for the appointment of a receiver for a
district, to appoint a receiver if an appointment is necessary to protect
the assets of the district. Requires the receiver to execute a bond in an
amount to be set by the court to ensure the proper performance of the
receiver's duties. Requires the receiver, after appointment and execution
of bond, to take possession of the assets of the district specified by the
court. Requires the receiver, until discharged by the court, to perform the
duties that the court directs to preserve the assets and carry on the
business of the district to strictly observe the final order involved.
Authorizes the court, on a showing of good cause by the district, to
dissolve the receivership and order the assets and control of the business
returned to the district.
SECTION 2.51. Amends Section 51.149, Water Code, as follows:
Sec. 51.149. CONTRACTS. Provides that no approvals other than those
specified in this section and in Section 1, Chapter 778 (Relating to
contracts from proceeds), Acts of the 74th Legislature, Regular Session,
1995, need to be obtained in order for a contract between a district and a
municipality to be valid, binding, and enforceable against all parties to
the contract. Authorizes a district, after approval by a majority of the
electors voting at an election conducted in the manner of a bond election,
to make payments under a contract from taxes for debt that does not exceed
30 years.
ARTICLE 3. DISTRICT RATIFICATIONS
Provides for the ratification of the following districts created by the
76th Legislature, 1999:
The Cow Creek Groundwater Conservation District; Crossroads Groundwater
Conservation District; Hays Trinity Groundwater Conservation District;
Middle Pecos Groundwater Conservation District; Refugio Groundwater
Conservation District; and the Texana Groundwater Conservation District.
ARTICLE 4. WATER INFRASTRUCTURE FINANCING
SECTION 4.01. Amends Chapter 15, Water Code, by adding Subchapter O, as
follows:
SUBCHAPTER O. WATER INFRASTRUCTURE FUND
Sec. 15.901. DEFINITIONS. Defines "eligible political subdivision," "fund,"
"metropolitan statistical area," "political subdivision," and "project."
Sec. 15.902. FINDINGS. Sets forth legislative findings.
Sec. 15.903. WATER INFRASTRUCTURE FUND. Provides that the water
infrastructure fund is created as a special account in the general revenue
account, to consist of certain revenues and fees.
Sec. 15.904. USE OF WATER INFRASTRUCTURE FUND. Sets forth provisions for
the use of funds by the board. Prohibits funding from exceeding a certain
amount. Authorizes principal and interest payments on loans to be deferred
for a certain amount of time.
Sec. 15.905. APPROVAL OF APPLICATIONS. Sets forth provisions by which the
board is authorized to approve an application. Requires a program of water
conservation to be in the same manner as an application for financial
assistance. Authorizes the board to deliver funds for a project relating to
surface water development if the executive director makes a written finding
of certain information.
Sec. 15.906. APPLICABLE PROVISIONS. Provides that the provision of Chapter
17E, apply to financial assistance made available from the fund.
Sec. 15.907. RULES. Requires the board to establish rules related to
certain board duties.
Sec. 15.908. SALE OF POLITICAL SUBDIVISION BONDS. Authorizes the board to
sell or dispose of political subdivision bonds at the price and under terms
the board considers reasonable. Authorizes the board to sell political
subdivision bonds without making a previous offer to the political
subdivision that issued the bonds and without advertising, soliciting, or
receiving bids for sale. Authorizes the board to sell to the Texas Water
Resources Finance Authority any political subdivision bonds purchased with
money in the fund and to apply the proceeds of a sale in the manner
provided by this section. Requires the proceeds from the sale of the
political subdivision bonds to be deposited in the fund. Authorizes the
board to agree to perform functions required to ensure that the political
subdivision pays the debt service on political subdivision bonds sold and
conserves the conditions and requirements stated in those bonds. Authorizes
the board to exercise certain powers to carry out the authority.
Sec. 15.909. FUNDING FOR LOCAL ECONOMIC DEVELOPMENT. Authorizes the board
to use the fund for certain purposes. Prohibits the board from purchasing
political subdivision bonds that are secured by ad valorem taxes unless the
political subdivision submits evidence satisfactorily to the board that the
issuance of the bonds has been approved by the voters.
Sec. 15.910. AUTHORITY TO ESTABLISH ECONOMIC DEVELOPMENT PROGRAMS.
Authorizes an eligible political subdivision to establish development
programs and make loans and grants of public funds for certain purposes.
Authorizes financial assistance received from the fund to be used by an
eligible subdivision to make loans or grants to persons for certain project
purposes. Authorizes the political subdivision to determine terms and
conditions governing the loan or grant of money and determine whether to
approve an agreement.
Sec. 15.911. Prohibits an eligible political subdivision from selling or
incurring obligations to fund an economic development program that are
payable in whole or in part from ad valorem taxes unless the residents of
the political subdivision approve the issuance of obligations to fund an
economic development program for certain purposes.
SECTION 4.02. Amends Chapter 15, Water Code, by adding Subchapter P, as
follows:
SUBCHAPTER P. RURAL WATER ASSISTANCE FUND
Sec. 15.951. PURPOSE. Sets forth legislative purpose.
Sec. 15.952. DEFINITIONS. Defines "federal agency," "fund," "rural
political subdivision," and "state agency."
Sec. 15.953. CREATION OF FUND. Establishes the rural water assistance fund,
and provides that it consists of funds from different sources.
Sec. 15.954. USE OF FUND. Authorizes the fund to be used to provide
low-interest loans to rural subdivisions for certain projects. Authorizes
the fund to be used to enable or finance certain purposes. Authorizes a
rural political subdivision to enter into an agreement with certain
entities to submit an application for financial assistance. Provides that a
nonprofit water supply or sewer service corporation is exempt from payment
of any sales tax. Authorizes the fund to be used as a source for the
payment of certain costs.
Sec. 15.955. FINANCIAL ASSISTANCE. Requires the board to adopt rules to
administer this subchapter. Requires the board to not deliver funds to an
application for financial assistance until the executive administrator
makes certain findings. Requires the board to consider certain criteria.
Authorizes the board to approve an application if the board finds certain
conditions exist. Requires a program of water conservation to be required
to meet the same conditions as an application for financial assistance
under Section 15.106. Provides that Sections 17.18317.187 apply to the
construction of projects funded pursuant to this subchapter.
SECTION 4.03. Amends Chapter 11D, Water Code, by adding Section 11.1352, as
follows:
Sec. 11.1352. ANNUAL WATER RIGHTS FEE. Requires the commission to assess a
fee for water rights held under the authority of this chapter. Prohibits a
fee from being assessed for water rights for municipal use. Requires the
fee to be paid annually and based on certain criteria. Requires fees to be
assessed for certain uses and to not exceed certain amounts. Requires fees
to be deposited to a special fund. Provides that a water right holder is
not subject to a fee for a water right under certain conditions. Requires a
political subdivision, under certain conditions, to pay fees. Requires a
groundwater conservation district to pay annual fees to receive funding.
Requires the fees to be used for certain uses and limits those fees to
certain amounts.
SECTION 4.04. Amends Chapter 15B, Water Code, by adding Section 15.013, as
follows:
Sec. 15.013. WATER FEE. Requires each county to annually remit to the
comptroller a certain fee in a certain amount as determined by the most
recent federal census. Authorizes a county to collect fees in a manner and
in amounts determined by the county.
SECTION 4.05. Amends Section 15.002(a), Water Code, to set forth additional
legislative findings.
SECTION 4.06. Amends Section 15.011(b), Water Code, to authorize the board
to transfer money from the fund to the rural water assistance fund.
SECTION 4.07. Amends Sections 15.102(a) and (b), Water Code, to set forth
that the loan fund is authorized to be used for certain purposes.
SECTION 4.08. Amends Section 15.105, Water Code, to require the board to
consider certain factors in passing on an application.
SECTION 4.09. Amends Section 15.106(a), Water Code, to authorize the board
to approve an application for financial assistance if the board finds that
certain conditions exist.
SECTION 4.10. Amends Section 15.107, Water Code, as follows:
Sec. 15.107. New heading: METHOD OF MAKING FINANCIAL ASSISTANCE AVAILABLE.
Authorizes the board to make financial assistance available to certain
applicants and in any manner that is economically feasible, including
certain contracts or agreements.
SECTION 4.11. Amends Section 15.406(f), Water Code, to make a conforming
change.
SECTION 4.12. Amends Section 15.434, Water Code, to require money deposited
to the credit of certain entities to be used for certain purposes.
SECTION 4.13. Amends section 15.471, Water Code, to authorize the board to
make grants of money to certain groundwater, rather than underground water,
conservation districts and to political subdivisions for purchasing
equipment required for certain purposes.
SECTION 4.14. Amends Section 15.602, Water Code, to define "person."
SECTION 4.15. Amends Section 15.603(a), Water Code, to provide that the
estuary fund is provided to provide financial assistance to certain
entities for construction of treatment works and to persons for nonpoint
source pollution control and estuary management projects.
SECTION 4.16. Amends Section 15.604(a), Water Code, to authorize the board
to use the fund for certain purposes.
SECTION 4.17. Amends Section 15.607, Water Code, to authorize the board to
approve an application by the applicant, rather than political subdivision,
if certain requirements are met.
SECTION 4.18. Amends Section 17.853(c), Water Code, to provide that the
board is authorized to use the fund only for certain purposes.
SECTION 4.19. Amends Sections 17.871(2) and (6), Water Code, to redefine
"borrower district," and "lender."
SECTION 4.20. Amends Section 17.895, Water Code, to set forth the
application of this section. Authorizes a lender district, rather than
districts, to make conservation loans for certain purposes.
SECTION 4.21. Amends Chapter 17J, Water Code, by adding Section 17.8955, as
follows:
Sec. 17.8955. CONSERVATION LOANS FOR BRUSH CONTROL AND PRECIPITATION
ENHANCEMENT. Authorizes a board or lender district to make a conservation
loan for certain costs under certain criteria. Authorizes a conservation
loan to be made by a lender district to an individual borrower for use on
private property or by the board to a borrower district.
SECTION 4.22. Amends Chapter 17L, Water Code, by adding Section 17.9615, as
follows:
Sec. 17.9615. TRANSFERS TO RURAL WATER ASSISTANCE FUND. Authorizes the
board to direct the comptroller to transfer amounts from the financial
assistance account to the rural assistance fund. Requires the board to use
the rural water assistance fund for certain purposes.
SECTION 4.23. Amends Section 11.32, Tax Code, to authorize certain
properties to be exempt from taxation. Makes a conforming change.
SECTION 4.24. Amends Section 151.0048(a), Tax Code, to redefine "real
property service."
SECTION 4.25. Amends Section 151.315, Tax Code, to provide that water is
exempted from taxes except as provided in Section 151.0048(a)(8).
SECTION 4.26. Amends Chapter 151H, Tax Code, by adding Section 151.355, as
follows:
Sec. 151.355. WATER-RELATED EXEMPTIONS. Sets forth that certain equipment,
services, and supplies are exempt from taxation.
SECTION 4.27. Amends Section 151.801, Tax Code, by adding Subchapter (f),
to require the proceeds from the collection of taxes on the sale of
domestic sewage service and domestic potable water service to be deposited
in the general revenue fund to the credit of the water infrastructure fund.
ARTICLE 5. REPEALER; TRANSITION; SAVING; EFFECTIVE DATE
SECTION 5.01. Repealer: Section 35.005 (Petition to Designate a Groundwater
Management Area), Water Code.
Repealer: Section 35.006 (Notice for Designation
of Management Area), Water Code.
Repealer: Section 36.013(d) (Petition to Create
District), Water Code.
Repealer: Chapter 453 (relating to the creation,
administration, powers, duties, operation, and financing
of the Presidio County Underground Water
Conservation District), Acts of the 73rd Legislature, Regular Session,
1993, provided the results of the Hays Trinity
Groundwater Conservation District are canvassed.
SECTION 5.02. Makes application of this Act to Sections 11.085, 17.895, and
17.8955, Water Code prospective. Requires the Texas Water Policy Council
and the TWDB to adopt rules required by this Act not later than January 1,
2002.
SECTION 5.03. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. Sets forth
provision that notice has been furnished to certain persons or entities.
Provides that the TNRCC has filed its recommendations with certain persons.
Provides that all requirements of the constitution and laws are fulfilled
and accomplished.
SECTION 5.04. Severability clause.
SECTION 5.05. Effective date: September 1, 2001.