Amend CSHB 3526 (Senate committee report) by adding the 
following appropriately numbered SECTIONS of the bill and 
renumbering subsequent SECTIONS of the bill accordingly:
	SECTION ____.  Sections 11.0842(a) and (b), Water Code, are 
amended to read as follows:
	(a)  If a person violates this chapter, a rule or order 
adopted under this chapter, Section 12.052, or Section 16.236, or a 
permit, certified filing, or certificate of adjudication issued 
under this chapter, the commission may assess an administrative 
penalty against that person as provided by this section.  The 
commission may assess an administrative penalty for a violation 
relating to a water division or a river basin or segment of a river 
basin regardless of whether a watermaster has been appointed for 
the water division or river basin or segment of the river basin.
	(b)  The penalty may be in an amount not to exceed $5,000 for 
each day the person is in violation of this chapter, a [the] rule or 
order adopted under this chapter, or a [the] permit, certified 
filing, or certificate of adjudication issued under this chapter.  
The penalty may be in an amount not to exceed $10,000 for each day 
the person is in violation of a rule or order adopted under Section 
12.052. The penalty may be in an amount not to exceed $1,000 for 
each day the person is in violation of a [the] rule or order adopted 
under Section 16.236 [of this code].  Each day a violation continues 
may be considered a separate violation for purposes of penalty 
assessment.
	SECTION ____.  Section 12.052, Water Code, is amended by 
amending Subsections (a), (c), and (e) and adding Subsections (g) 
and (h) to read as follows:
	(a)  The commission shall make and enforce rules and orders 
and shall perform all other acts necessary to provide for the safe 
construction, maintenance, operation, repair, and removal of dams 
located in this state.
	(a-1)  In order to maintain the structural integrity of dams 
located in this state, the commission may require the owner or 
owners of a dam to develop and implement an operation and 
maintenance plan to comply with the rules and orders promulgated 
under this section.
	(a-2)  In determining the frequency with which dams located 
in this state are inspected, the commission shall give preference 
to inspecting dams that are classified as posing a high or 
significant hazard as defined by commission rule.
	(c)  If the owner of a dam that is required to be constructed, 
reconstructed, maintained, operated, repaired, or removed in order 
to comply with the rules and orders promulgated under [Subsection 
(a) of] this section wilfully fails or refuses to comply within the 
30-day period following the date of the commission's final, 
nonappealable order to do so or if a person wilfully fails to comply 
with any rule or other order issued by the commission under this 
section within the 30-day period following the effective date of 
the order, the person [he] is liable for [to] a penalty of not more 
than $10,000 [$5,000] a day for each day the person [he] continues 
to violate this section.  The state may recover the penalty by suit 
brought for that purpose in the district court of Travis County.
	(e)  If the commission issues an emergency order under 
authority of this section without notice to the dam owner, the 
commission shall fix a time and place for a hearing which shall be 
held as soon as practicable to affirm, modify, or set aside the 
emergency order.  The notice does not have to comply with Chapter 
2001, Government Code.  If the nature of the commission's action 
requires further proceedings, those proceedings shall be conducted 
as appropriate under Chapter 2001, Government Code [the 
Administrative Procedure and Texas Register Act, as amended 
(Article 6252-13a, Vernon's Texas Civil Statutes)].
	(g)  The commission may assess an administrative penalty as 
provided by Section 11.0842 against a person who violates a rule or 
order adopted under this section.
	(h)  This section does not affect the right of any private 
corporation, individual, or political subdivision that has a 
justiciable interest in pursuing any available common law remedy to 
enforce a right or to prevent or seek redress or compensation for 
the violation of a right or otherwise redress an injury.
	SECTION ____.  Section 13.043(h), Water Code, is amended to 
read as follows: 
	(h)  The commission or executive director may [, on a motion 
by the executive director or by the appellant under Subsection (a), 
(b), or (f) of this section,] establish interim rates to be in 
effect until a final decision is made in an appeal filed under 
Subsection (a), (b), or (f).
	SECTION ____.  Sections 13.187(f), (i), (j), (k), (l), (n), 
and (o), Water Code, are amended to read as follows:
	(f)  The regulatory authority may set the matter for hearing 
on its own motion at any time within 120 days after the effective 
date of the rate change.  [If more than half of the ratepayers of the 
utility receive service in a county with a population of more than 
2.5 million, the hearing must be held at a location in that county.]
	(i)  The regulatory authority or the executive director, 
pending final action in a rate proceeding, may order the utility to 
deposit all or part of the rate increase received or to be received 
into an escrow account with a financial institution approved by the 
regulatory authority.  Unless otherwise agreed to by the parties to 
the rate proceeding, the utility shall refund or credit against 
future bills all sums collected during the pendency of the rate 
proceeding in excess of the rate finally ordered plus interest as 
determined by the regulatory authority.
	(j)  For good cause shown, the regulatory authority or the 
executive director may authorize the release of funds to the 
utility from the escrow account during the pendency of the 
proceeding.
	(k)  If the regulatory authority receives at least the number 
of complaints from ratepayers required for the regulatory authority 
to set a hearing under Subsection (e), the regulatory authority or 
the executive director may, pending the hearing and a decision, 
suspend the date the rate change would otherwise be effective. 
Except as provided by Subsection (d-1), the proposed rate may not be 
suspended for longer than:
		(1)  90 days by a local regulatory authority; or                              
		(2)  250 [150] days by the commission or executive 
director.
	(l)  At any time during the pendency of the rate proceeding 
the regulatory authority or the executive director may fix interim 
rates to remain in effect until a final determination is made on the 
proposed rate.
	(n)  For good cause shown, the regulatory authority or the 
executive director may at any time during the proceeding require 
the utility to refund money collected under a proposed rate before 
the rate was suspended or an interim rate was established to the 
extent the proposed rate exceeds the existing rate or the interim 
rate.
	(o)  If a regulatory authority other than the commission or 
the executive director establishes interim rates or an escrow 
account, the regulatory authority must make a final determination 
on the rates not later than the first anniversary of the effective 
date of the interim rates or escrowed rates or the rates are 
automatically approved as requested by the utility.
	SECTION ____.  Section 13.242(c), Water Code, is amended to 
read as follows: 
	(c)  The commission may by rule allow a municipality or 
utility or water supply corporation to render retail water or sewer
service without a certificate of public convenience and necessity 
if the municipality has given notice under Section 13.255 [of this 
code] that it intends to provide retail water or sewer service to an 
area or if the utility or water supply corporation has less than 15 
potential connections and is not within the certificated area of 
another retail public utility.
	SECTION ____.  Section 13.248, Water Code, is amended to 
read as follows:    
	Sec. 13.248.  CONTRACTS VALID AND ENFORCEABLE.  Contracts 
between retail public utilities designating areas to be served and 
customers to be served by those retail public utilities, when 
approved by the commission or the executive director after public 
notice [and hearing], are valid and enforceable and are 
incorporated into the appropriate areas of public convenience and 
necessity.
	SECTION ____.  Sections 37.006(f) and (g), Water Code, are 
amended to read as follows:
	(f)  A person whose license or registration has been expired 
for 60 [30] days or less may apply for renewal of the license or 
registration by paying to the commission a renewal fee in an amount 
prescribed by commission rule not to exceed 1-1/2 times the 
normally required renewal fee.
	(g)  A person whose license or registration has been expired 
for more than 60 [30] days may not renew the license or 
registration.  The person may obtain a new license or registration 
by complying with the requirements and procedures, including the 
examination requirements, for obtaining an original license or 
registration.
	SECTION ____.  Section 49.321, Water Code, is amended to 
read as follows:    
	Sec. 49.321.  DISSOLUTION AUTHORITY.  After notice [and 
hearing], the commission or executive director may dissolve any 
district that is inactive for a period of five consecutive years and 
has no outstanding bonded indebtedness.
	SECTION ____.  Section 49.324, Water Code, is amended to 
read as follows:    
	Sec. 49.324.  ORDER OF DISSOLUTION.  The commission or the 
executive director may enter an order dissolving the district [at 
the conclusion of the hearing] if the commission or executive 
director [it] finds that the district has performed none of the 
functions for which it was created for a period of five consecutive 
years [before the day of the proceeding] and that the district has 
no outstanding bonded indebtedness.
	SECTION ____.  Section 49.326(a), Water Code, is amended to 
read as follows: 
	(a)  Appeals from an [a commission] order dissolving a 
district shall be filed and heard in the district court of any of 
the counties in which the land is located.
	SECTION ____.  Section 54.030(b), Water Code, is amended to 
read as follows: 
	(b)  The governing body of a district which desires to 
convert into a district operating under this chapter shall adopt 
and enter in the minutes of the governing body a resolution 
declaring that in its judgment, conversion into a municipal utility 
district operating under this chapter and under Article XVI, 
Section 59, of the Texas Constitution, would serve the best 
interest of the district and would be a benefit to the land and 
property included in the district.  The resolution shall also 
request that the commission approve [to hold a hearing on the 
question of] the conversion of the district.
	SECTION ____.  Section 54.032, Water Code, is amended to 
read as follows:    
	Sec. 54.032.  CONVERSION OF DISTRICT:  NOTICE.  (a)  Notice 
of the conversion [hearing] shall be given by publishing notice in a 
newspaper with general circulation in the county or counties in 
which the district is located.
	(b)  The notice shall be published once a week for two 
consecutive weeks [with the first publication to be made not less 
than 14 full days before the time set for the hearing].
	(c)  The notice shall:                                                         
		(1)  [state the time and place of the hearing;               
		[(2)]  set out the resolution adopted by the district 
in full;  and
		(2) [(3)]  notify all interested persons how they may 
offer comments [to appear and offer testimony] for or against the 
proposal contained in the resolution.
	SECTION ____.  Section 54.033, Water Code, is amended to 
read as follows:    
	Sec. 54.033.  CONVERSION OF DISTRICT;  FINDINGS.  (a)  If
[After a hearing, if] the commission or the executive director
finds that conversion of the district into one operating under this 
chapter would serve the best interest of the district and would be a 
benefit to the land and property included in the district, the 
commission or executive director [it] shall enter an order making 
this finding and the district shall become a district operating 
under this chapter and no confirmation election shall be required.
	(b)  If the commission or the executive director finds that 
the conversion of the district would not serve the best interest of 
the district and would not be a benefit to the land and property 
included in the district, the commission or executive director [it] 
shall enter an order against conversion of the district into one 
operating under this chapter.
	(c)  The findings of the commission or the executive director
entered under this section shall be subject to appeal or review 
within 30 days after entry of the order [of the commission] granting 
or denying the conversion.
	(d)  A copy of the [commission] order converting a district 
shall be filed in the deed records of the county or counties in 
which the district is located.
	SECTION ____.  Sections 49.322 and 54.031, Water Code, are 
repealed.         
	SECTION ____.  (a)  The changes in law made by this Act to 
Sections 11.0842 and 12.052, Water Code, apply only to a violation 
that occurs on or after the effective date of this Act.  For 
purposes of this section, a violation occurs before the effective 
date of this Act if any element of the violation occurs before that 
date.
	(b)  A violation that occurs before the effective date of 
this Act is governed by the law in effect on the date of the 
violation, and the former law is continued in effect for that 
purpose.
	SECTION ____.  The changes in law made by Section 13.187, 
Water Code, as amended by this Act, apply only to a rate application 
or appeal filed with the Texas Commission on Environmental Quality 
on or after the effective date of this Act.  A rate application or 
appeal filed with the commission before the effective date of this 
Act is governed by the law as it existed immediately before the 
effective date of this Act, and that law is continued in effect for 
that purpose.