1-1     By:  Hilbert (Senate Sponsor - Lindsay)               H.B. No. 1110
 1-2           (In the Senate - Received from the House March 22, 2001;
 1-3     March 26, 2001, read first time and referred to Committee on
 1-4     Natural Resources; May 10, 2001, reported favorably by the
 1-5     following vote:  Yeas 4, Nays 0; May 10, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the North Harris County Regional Water Authority.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1. Section 1.02, Chapter 1029, Acts of the 76th
1-11     Legislature, Regular Session, 1999, is amended by adding
1-12     Subdivision (12) to read as follows:
1-13                 (12)  "Groundwater reduction plan" means a plan adopted
1-14     or implemented to supply water, reduce reliance on groundwater,
1-15     regulate groundwater pumping and water usage, or require and
1-16     allocate water usage among persons in order to comply with or
1-17     exceed the minimum requirements imposed by the subsidence district,
1-18     including any applicable groundwater reduction requirements.
1-19           SECTION 2. Section 1.03, Chapter 1029, Acts of the 76th
1-20     Legislature, Regular Session, 1999, is amended by adding Subsection
1-21     (e) to read as follows:
1-22           (e)  Notwithstanding Subsections (a) and (b) of this section,
1-23     the authority does not include the territory of a district
1-24     organized under Section 52, Article III, or Section 59, Article
1-25     XVI, Texas Constitution, located within the area described by
1-26     Subsections (a) and (b) of this section only if the territory meets
1-27     both of the following criteria:
1-28                 (1)  any portion of the territory of the district was
1-29     located outside the area described by Subsections (a) and (b) of
1-30     this section on the effective date of this Act; and
1-31                 (2)  the district does not own, lease, or receive water
1-32     for nonemergency purposes from a well located within the area
1-33     described by Subsections (a) and (b) of this section.
1-34           SECTION 3. Chapter 1029, Acts of the 76th Legislature,
1-35     Regular Session, 1999, is amended by adding Section 1.045 to read
1-36     as follows:
1-37           Sec. 1.045.  INCLUSION OF CERTAIN TERRITORY. (a)  The board
1-38     of directors of a district organized under Section 52, Article III,
1-39     or Section 59, Article XVI, Texas Constitution, all or part of
1-40     which is not included within the boundaries of the authority under
1-41     Section 1.03 of this Act, may request by petition the inclusion of
1-42     its territory in the authority's territory.  The petition must:
1-43                 (1)  be filed with the authority; and
1-44                 (2)  include an accurate legal description of the
1-45     boundaries of the territory to be included.
1-46           (b)  If the authority has bonds, notes, or other obligations
1-47     outstanding, the board shall require the petitioning district to
1-48     assume its share of the outstanding bonds, notes, or other
1-49     obligations.
1-50           (c)  Before the 61st day after the date the authority
1-51     receives the petition, the board shall hold a hearing to consider
1-52     the petition.  The board may grant the petition and order the
1-53     territory described in the petition included in the authority's
1-54     territory if:
1-55                 (1)  it is feasible, practicable, and to the advantage
1-56     of the authority; and
1-57                 (2)  the authority's system and other improvements of
1-58     the authority are sufficient or will be sufficient to supply the
1-59     added territory without injuring the territory already included in
1-60     the authority.
1-61           (d)  If the board grants the petition, the board shall file
1-62     for recording in the office of the county clerk of Harris County:
1-63                 (1)  a copy of the order; and
1-64                 (2)  a description of the authority's boundaries as
 2-1     they exist after the inclusion of the territory.
 2-2           (e)  The order including the territory is effective
 2-3     immediately after the order and description are recorded.
 2-4           (f)  A district that petitions before January 1, 2002, for
 2-5     inclusion within the territory of the authority shall not be
 2-6     required to pay any fee to the authority for admission or
 2-7     reimbursement for activities the authority has undertaken since its
 2-8     creation in the furtherance of its duties and functions.  A
 2-9     district that petitions for inclusion within the territory of the
2-10     authority on or after January 1, 2002, shall be subject to such
2-11     fees and reimbursements as are in effect at the time of such
2-12     petition and are applicable to such petitioners.
2-13           SECTION 4. Section 4.01, Chapter 1029, Acts of the 76th
2-14     Legislature, Regular Session, 1999, is amended by amending
2-15     Subsection (b) and adding Subsections (e) through (h) to read as
2-16     follows:
2-17           (b)  The authority may:
2-18                 (1)  provide for the conservation, preservation,
2-19     protection, recharge, and prevention of waste of groundwater[, and
2-20     for the reduction of groundwater withdrawals,] in a manner
2-21     consistent with the purposes of Section 59, Article XVI, Texas
2-22     Constitution;
2-23                 (2)  for the purposes of reducing groundwater
2-24     withdrawals and subsidence, acquire or develop surface water and
2-25     groundwater supplies from sources inside of or outside of the
2-26     boundaries of the authority and may conserve, store, transport,
2-27     treat, purify, distribute, sell, and deliver water to persons,
2-28     corporations, municipal corporations, political subdivisions of the
2-29     state, and others, inside of and outside of the boundaries of the
2-30     authority;
2-31                 (3)  enter into contracts with persons, including
2-32     political subdivisions of the state, on terms and conditions the
2-33     board considers desirable, fair, and advantageous for the
2-34     performance of its rights, powers, and authority under this Act;
2-35                 (4)  coordinate water services provided inside of,
2-36     outside of, or into the authority; [and]
2-37                 (5)  provide for the reduction of groundwater
2-38     withdrawals by the development, implementation, or enforcement of a
2-39     groundwater reduction plan as provided in Subsection (e) of this
2-40     section;
2-41                 (6)  identify sources of water other than groundwater
2-42     to be provided by the authority;
2-43                 (7)  specify the rates, terms, and conditions under
2-44     which sources of water other than groundwater will be provided by
2-45     the authority, which may be changed from time to time as deemed
2-46     necessary by the authority;
2-47                 (8)  specify the dates and extent to which each person
2-48     or district within the authority's boundaries shall accept water
2-49     from the authority; and
2-50                 (9)  administer and enforce the provisions of the Act.
2-51           (e)  The authority may develop, implement, participate in,
2-52     and enforce a groundwater reduction plan.  A groundwater reduction
2-53     plan developed, implemented, participated in, or enforced by the
2-54     authority shall be binding on persons, districts, entities, and
2-55     wells within the authority's boundaries.
2-56           (f)  The authority may contract on such terms as are mutually
2-57     agreeable with any person or district located outside the authority
2-58     to allow the person or district to be included in the authority's
2-59     groundwater reduction plan.  Such contracts shall have the same
2-60     force and effect as if the person or district were located within
2-61     the authority, except that the person or district shall not have
2-62     the right to vote in elections for members of the board of the
2-63     authority.
2-64           (g)  The plan authorized by Subsection (e) of this section
2-65     may be amended from time to time at the discretion of the authority
2-66     subject to the requirements and procedures of the subsidence
2-67     district applicable to the amendment of groundwater reduction
2-68     plans.
2-69           (h)  The groundwater reduction plan developed by the
 3-1     authority may exceed the minimum requirements imposed by the
 3-2     subsidence district, including without limitation any applicable
 3-3     groundwater reduction requirements.
 3-4           SECTION 5.  Section 4.08, Chapter 1029, Acts of the 76th
 3-5     Legislature, Regular Session, 1999, is amended to read as follows:
 3-6           Sec. 4.08.  EMINENT DOMAIN. (a)  The authority may exercise
 3-7     the power of eminent domain inside the boundaries of the authority
 3-8     [in the manner provided in Chapter 21, Property Code,] to acquire
 3-9     property of any kind to further the authorized purposes of the
3-10     authority[.  The authority may not exercise the power of eminent
3-11     domain outside of the boundaries of the authority].
3-12           (b)(1)  The authority may exercise the power of eminent
3-13     domain outside the boundaries of the authority to acquire any land,
3-14     easements, or other property for purposes of pumping, treating,
3-15     storing, and transporting water.
3-16                 (2)  The authority may not use the power of eminent
3-17     domain granted by Subsection (b)(1) of this section for the
3-18     condemnation of land for the purpose of acquiring rights to
3-19     underground water or water or water rights.
3-20                 (3)  The authority may not use the power of eminent
3-21     domain granted by Subsection (b)(1) of this section to acquire
3-22     property of any kind that is:
3-23                       (A)  owned by a municipality with a population of
3-24     1.6 million or more or any instrumentality of a municipality with a
3-25     population of 1.6 million or more, including any local government
3-26     corporation created by the municipality; or
3-27                       (B)  located within the corporate boundaries of a
3-28     municipality with a population of 1.6 million or more for limited
3-29     or general purposes as of February 1, 2001.
3-30                 (4)  Notwithstanding Subsection (b)(3)(B) of this
3-31     section, the authority may use the power of eminent domain granted
3-32     by Subsection (b)(1) of this section to acquire property:
3-33                       (A)  within the corporate boundaries of a
3-34     municipality with a population of 1.6 million or more if:
3-35                             (i)  the condemnation is to be used to
3-36     provide facilities between two points that are within the
3-37     authority; and
3-38                             (ii)  the area within the municipality is
3-39     bounded by a line parallel to and 150 feet north of the north side
3-40     of Greens Bayou and by a line parallel to and 150 feet south of the
3-41     south side of Greens Bayou;
3-42                       (B)  that is within the corporate  boundaries of
3-43     a municipality with a population of 1.6 million and annexation of
3-44     the territory by the municipality was completed between January 1,
3-45     1962, and January 1, 1964; or
3-46                       (C)  that is within an area of the corporate
3-47     boundaries of a municipality  with a population of 1.6 million or
3-48     more if the municipality grants permission for such condemnation.
3-49           (c)  The power of eminent domain granted by Subsections (a)
3-50     and (b) of this section shall be exercised in the manner provided
3-51     in Chapter 21, Property Code, except that the authority shall not
3-52     be required to give bond for appeal or bond for costs in any
3-53     condemnation suit, or other suit to which it is a party, and shall
3-54     not be required to deposit more than the amount of any award in any
3-55     suit.
3-56           (d)  When exercising the power of eminent domain granted by
3-57     Subsections (a) and (b) of this section, the authority may elect to
3-58     condemn either the fee simple or a lesser property interest.
3-59           (e)  The authority may not exercise the power of eminent
3-60     domain granted by Subsections (a) and (b) of this section to
3-61     acquire property of any kind in a county that:
3-62                 (1)  has a population of more than 245,000;
3-63                 (2)  borders the Gulf of Mexico; and
3-64                 (3)  is adjacent to a county with a population of more
3-65     than 1.6 million.
3-66           SECTION 6.  Section 4.12(b), Chapter 1029, Acts of the 76th
3-67     Legislature, Regular Session, 1999, is amended to read as follows:
3-68           (b)  Disbursements of the authority must be signed by at
3-69     least two directors, except, notwithstanding any other law, the
 4-1     board by resolution may allow the general manager, treasurer,
 4-2     bookkeeper, or other employee of the authority to sign
 4-3     disbursements.
 4-4           SECTION 7.  Article 4, Chapter 1029, Acts of the 76th
 4-5     Legislature, Regular Session, 1999, is amended by adding Section
 4-6     4.14 to read as follows:
 4-7           Sec. 4.14.  INCLUDED DISTRICTS. A district inside of the
 4-8     authority's boundaries retains its separate identity, powers, and
 4-9     duties, except that the district is subject to the powers and
4-10     duties of the authority, including those powers and duties of the
4-11     authority necessary to develop, implement, and enforce a
4-12     groundwater reduction plan.
4-13           SECTION 8.  Section 1.04, Chapter 1029, Acts of the 76th
4-14     Legislature, Regular Session, 1999, is repealed.
4-15           SECTION 9.  This Act takes effect immediately if it receives
4-16     a vote of two-thirds of all the members elected to each house, as
4-17     provided by Section 39, Article III, Texas Constitution.  If this
4-18     Act does not receive the vote necessary for immediate effect, this
4-19     Act takes effect September 1, 2001.
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